China Evergrande’s Hengda is selling its entire 65 percent stake in a project in Guangdong for $19.4 million
China Evergrande’s Hengda subsidiary is selling its entire 65 percent stake in a project in Guangdong province for $19.4 million, with that story leading today’s headline roundup. Also making the cut, mainland developer Jingrui fails to repay a $165 million bond and Mapletree Industrial Trust sees distributions slide.
Evergrande Selling Stake in Shantou Development Project for $19.4M
A unit of China Evergrande, the most indebted developer in mainland China, has agreed to sell its stake in a project in Shantou, southern Guangdong province, continuing to pare down assets as it awaits the fate of its debt restructuring proposal.
The subsidiary, Hengda Real Estate Group Yuedong, will sell its entire 65 percent stake in Shantou Hengmeng Property Development for RMB 137.6 million ($19.4 million), according to a filing with the Hong Kong Stock Exchange on Thursday evening. Read more>>
Chinese Developer Jingrui Defaults on $165M Bond
Jingrui Holdings announced Thursday that it would not repay $165 million in principal and $9.9 million in accrued interest on an offshore bond maturing on 28 January, as the Chinese developer continues to work toward a potential holistic restructuring of all dollar-denominated senior notes.
In June 2022, Jingrui failed to make on-time interest payments on four sets of offshore bonds, blaming the impact of China’s COVID-19 lockdown. Read more>>
Mapletree Industrial Trust Posts 0.9% Drop in Q3 Distributions
Distribution per unit for Mapletree Industrial Trust fell 0.9 percent to S$0.0336 ($0.025) for its third quarter ended 31 December on an enlarged unit base, down from S$0.0339 in the year-ago period.
On a quarter-on-quarter basis, the DPU in Q3 was 1.2 percent higher than the S$0.0332 in Q2, said its bourse filing on Thursday. Read more>>
Frasers Centrepoint Trust’s Private Placement to Raise $149M
Frasers Centrepoint Trust’s private placement to raise S$200 million ($149 million) has closed at the issue price of S$2.18 per new unit, near the middle of a proposed range of S$2.16 to S$2.204.
The placement was 2.5 times covered, with “strong participation” from new and existing institutional, accredited and other investors, the trust’s manager said Friday. Read more>>
EC World REIT Affirms Stronger Internal Controls Over Use of Chops
The manager of EC World REIT said Thursday that it has strengthened internal controls over the usage of all stamps and seals, including the relevant company seals, legal representative seals, contract stamps and finance stamps from the trust’s property management teams in China.
The REIT’s sponsor, Forchn Holdings, had been given until 20 January by EC World REIT to remove illegal mortgages imposed on its Fuzhou e-commerce, Fuheng warehouse and Hengde logistics properties, of which failure to do so could result in legal action. Read more>>
Hong Kong’s Worst Office Slump Squeezes Real Estate Funds
Real estate funds are getting caught in Hong Kong’s worst commercial property slump after making ill-timed investments when the market peaked just a few years ago.
Funds are increasingly trying to sell once-prized office towers at significant discounts as they rush to exit to avoid mounting interest payments on loans. Those holding onto assets are having to endure record-high vacancies along with rising borrowing costs. Read more>>
China Expands Access to Loans for Developers
China has rolled out new rules meant to expand access to commercial bank loans for developers as Beijing doubles down on its effort to end a prolonged crisis in the real estate industry.
The policies will allow real estate companies to use bank loans pledged against commercial properties such as offices and shopping malls to repay their other loans and bonds and to cover operating expenses. They were announced late Wednesday by the People’s Bank of China, the National Financial Regulatory Administration and the Finance Ministry. Read more>>
New Rules Boost China Property Shares But Could Miss the Mark
Chinese property shares rose on Thursday, strengthened by the latest relaxation in credit measures to support the embattled real estate industry, but few market participants expected them to overcome banks’ reluctance to lend.
Authorities eased rules for bank loans on commercial property on Wednesday as they sought to ease a liquidity crunch that real estate firms have grappled with since mid-2021, when the government first sought to rein in ballooning debt. Read more>>
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