Sunac chairman Sun Hongbin has been selling off assets as the company restructures
Troubled mainland developer Sunac China did some spring cleaning just before the lunar new year holiday, with the company’s announcement of a $552 million Sichuan disposal leading Mingtiandi’s headline roundup today. Also in the news, KKR signs a deal to lend $40 million to Korean property firm Innovalue for refinancing of existing debt and GIC has taken up a significant position in US retailer Kohl’s.
Sunac China Selling 70% Stake in Sichuan Project for $552M
Distressed mainland developer Sunac China Holdings announced just before the lunar new year holiday that it has agreed to sell its 70 percent stake in the equity and debt for a resort project in Sichuan province.
The company helmed by Sun Hongbin is selling its holding in the Sichuan Sancha Lake International Tourism Resort, along with associated debt to Guotou Zhongdian (Xianyang) Science Park Co, Ltd, a private company held by individuals named Chen Yali and Guo Wen for RMB 3.97 billion ($552 million). Sunac expects to book a gain of RMB 2.1 billion on the disposal. Read more>>
KKR to Lend $40M to Korean Property Firm Innovalue
KKR & Co signed a deal to lend $40 million to Korean property firm Innovalue, according to people familiar with the matter.
The money will be used to refinance existing debt, said one of the people, who asked not to be identified speaking about a private matter. The deal was signed last month and the funds are expected to be disbursed soon. Read more>>
Singapore’s GIC Takes 5% Stake in US Retailer Kohl’s
Singapore sovereign fund GIC has acquired 5.5 million shares of common stock in Wisconsin-based retailer Kohl’s, representing about a 5.01 percent holding, according to a filing with the US Securities and Exchange Commission.
GIC’s holding was revealed just days after activist hedge fund Vision One Management Partners was reported to be pushing Kohl’s management to launch a sale of the company. Read more>>
China South City Warns of Default on Two Sets of Bonds
Property developer China South City Holdings said on Friday that it is likely to default on the redemption payment due on 9 February for its 9 percent senior notes due October 2024, citing depressed sales and cash flow.
The company, which has been experiencing an increasing strain on its working capital amid China’s property sector woes, said it is seeking financing and is working on generating sufficient cash flow to prevent the potential default. Read more>>
Embassy REIT Explores Acquisition in Chennai, Mulls Fund-Raising
Embassy REIT, will look at inorganic growth options, as it re-explores acquisition opportunities in Chennai. Further, fund-raising plans are also under discussion now.
According to Aravind Maiya, CEO, Embassy REIT, there has been an improvement in market conditions that include improvement in rentals across existing buildings, higher occupancies in existing ones and better performance across hotels. All this, have led to a correction in stock prices, reflecting increased investor interest. Read more>>
Aozora Bank’s US Property Woes Offer Warning to Japanese Investors
Tokyo stocks are bumping at about 34-year highs and foreign investors are pouring money into the market, but Japan’s Aozora Bank has reminded the country that its lenders retain the ability to deliver nasty shocks.
Since the mid-sized bank revealed this month that exposure to the crisis-hit US office market would push it into an annual loss, analysts and investors have been scrambling to assess whether such dangers could be widespread in the Japanese financial sector. Read more>>
International Fund Managers Pile into India, Indonesia
India and Indonesia were once famously lumped together as part of Morgan Stanley’s “Fragile Five.” A decade later they are investor favorites.
The outlook for the bonds and currencies of the two Asian behemoths has brightened following successful programs of reforms and fiscal restraint, according to fund managers including Fidelity International, Robeco Group and abrdn. Even elections in the two countries this year are unlikely to spook investors. Read more>>
Chinese Investment in Australian Homes Drops, Indian Buyers’ Surge
Chinese investment into Australian real estate has dropped by A$400 million ($260 million) in just three months, the latest foreign investment data reveals.
Offshore buyers were approved to purchase 1,374 properties (valued at A$1.5 billion) between 1 July to 30 September 2023, down from 1932 (A$2.4 billion) approvals in the quarter prior. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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