Logan Group leads today’s collection of headlines from around the region as the bank creditors threatened to liquidate two key units. Also in the news, India’s Phoenix Mills shelves plans to foray into warehousing properties and Hong Kong builders face tough times amid rising funding costs.
China Builder Logan’s Restructuring Hits Snag as Lenders Revolt
Chinese developer Logan Group suffered an unexpected setback just days after progress on its restructuring plan, as bank creditors split with bondholders and threatened to liquidate two key units.
A lawyer representing the banks said the lenders may substitute the bondholders in their original winding-up petition at a Hong Kong court hearing on Monday, saying Logan has not provided the information requested. A lawyer representing the bondholders told the court they are seeking to dismiss the petition after signing an agreement with Logan. Read more>>
Indian Developer Phoenix Mills Shelves Warehousing Plans
Mumbai-based developer Phoenix Mills, known for its High Street Phoenix and Palladium malls in the city, has shelved plans to foray into warehousing properties.
The company was planning to build a warehousing property in Haryana as a pilot project and bought a land parcel for the same. It was also discussing expansion in other cities such as Indore and Lucknow, where it has a presence in retail properties. Read more>>
Hong Kong Developers Face Tough 2024 as Lenders Pull Back
Hong Kong property companies face a squeeze in 2024 from rising funding costs and sluggish home sales and office rentals, making creditors and investors cautious about developers’ financial health.
Some of Hong Kong’s major banks have cut off fresh financing to the city’s highly leveraged or weak property companies, four sources familiar with the matter said, forcing developers to seek more expensive loans in the private credit market. Read more>>
Distressed Korean Builder Taeyoung Wins Vote to Start Restructuring
Taeyoung Engineering & Construction, the distressed builder that has raised the threat of more project finance crises in South Korea, won support from creditors to start debt restructuring talks.
The builder of a post office in Seoul’s financial district, amusement parks and a baseball stadium received backing in a vote from creditors holding 96.1 percent of its aggregate debt, according to a Friday statement from its largest creditor, Korea Development Bank. Read more>>
India’s Finance Hub Gets $2B Bridge in Modi Infra-Splurge
A $2 billion bridge linking the island city of Mumbai to the mainland will boost connectivity with India’s financial capital at a time when Asia’s third-largest economy is seeking to upgrade its creaking infrastructure and boost growth.
The 21.8 kilometre (13.5 mile) bridge, India’s longest, will also ease access to the satellite city of Navi Mumbai, where a new airport is under construction by Adani Group. The satellite city also houses some of the companies owned by Asia’s richest businessman, Mukesh Ambani. Read more>>
China’s Recovery Set to Be ‘Slow and Bumpy’ in 2024
China looks all but certain to hit its growth goal of about 5 percent for 2023, shifting attention to whether deflation risks, the housing crisis and a lingering confidence crunch will derail efforts to build momentum this year.
Data due on Wednesday will likely show China’s GDP expanding 5.2 percent for the entirety of last year, even as the economy probably lost some steam in the fourth quarter. Read more>>
Sabana REIT Unitholders Resubmit EGM Request After Previous Fail
A group of unitholders looking to convene another extraordinary general meeting related to the internalisation of Sabana REIT’s manager has resubmitted the requisition notice.
The notice, which came from several unitholders with an aggregate unitholding of more than 10 percent, was deposited at the manager’s office on Thursday. Read more>>
Buyers Go Cheaper in Hong Kong’s First Weekend Property Sales of the Year
Hong Kong’s first weekend property sales this year kicked off on Saturday, with buyers snapping up nearly 60 percent of the units offered at a small residential project in Wong Tai Sin while shunning more expensive flats at a Kai Tak development.
As of late afternoon, Wang On Properties had sold 95 of the first batch of 165 units on offer at Phoenext, the first new residential development to be put on public sale in 2024. Read more>>
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