Hong Kong’s Wang On Declares $95M Loss and More Asia Real Estate Headlines

Hong Kong developer Wang On Properties has swung to a $95 million loss, thanks in part to write-downs on its project pipeline, with that story leading today’s headline roundup. Also in the news, mainland developer Sino-Ocean says it will miss a bond payment deadline and there’s more trouble for China Evergrande’s founder.

Hong Kong-Listed Wang On Properties Declares $95M Loss

Hong Kong developer Wang On Properties has declared a loss attributable to owners of the company of HK$742 million ($95 million) for the year ended 31 March despite an 11 percent increase in revenue for the period.

The loss was primarily due to a write-down of properties under development, with Wang On’s management indicating that it is negotiating with its existing lenders to ensure future liquidity. Read more>>

Sino-Ocean to Miss Payment Deadline on Restructured Bonds

Troubled mainland developer Sino-Ocean Group announced in a statement to the Hong Kong stock exchange on Thursday that it did not expect to make a RMB 200 million ($27.5 million) payment to bondholders due on 30 June.

The instalment payment is due under an agreement reached between the developer and its bondholders on 28 March, with the company saying it still has a 30-day grace period within which to avoid a formal default. Read more>>

Creditor Sues for Evergrande Founder’s Tsim Sha Tsui Luxury Condo

China Evergrande founder Xu Jiayin faces a petition requiring him to hand over a property in Hong Kong’s Tsim Sha Tsui area to repay part of his RMB 5.3 billion ($729.1 million) debt to Hexin Hengju (Shenzhen) Investment Holding Center.

Hexin has filed a petition to the High Court, requesting Xu to surrender his flat at Cheung King Mansion on Austin Road and to sell the property under the court’s direction to partially repay his debt. Read more>>

Singapore’s HDB Launches Tender for Mixed-Use Site in Tampines

Singapore’s Housing and Development Board on Thursday launched a mixed commercial and residential site at Tampines Street 94 for sale via tender.

The 99-year plot, which is on the confirmed list under the first half of the 2024 Government Land Sales programme, can potentially yield 585 residential units. Read more>>

Hong Kong’s Swire Pacific to Raise Up to $500M With Bond Issue

Hong Kong conglomerate Swire Pacific is looking to raise $300 million to $500 million through a five-year dollar bond, according to two sources with direct knowledge of the matter.

The proposed bond has initial price guidance for potential investors of Treasuries plus 120 basis points, according to a term sheet reviewed by Reuters. Read more>>

Beijing Becomes Last Mega China City to Ease Housing Rules

China’s capital city of Beijing eased homebuying requirements for down payment and mortgages, joining the country’s other megacities to support the real estate sector.

Beijing reduced down-payment requirements by 10 percentage points to a minimum of 20 percent for first-time buyers, the city said Wednesday. For second homes, the minimum threshold was cut to 35 percent for urban areas and 30 percent elsewhere. It also lowered the floor on mortgage rates. Read more>>

Shimao’s Liquidation Hearing Adjourned to 31 July

A liquidation case against Chinese developer Shimao Group has been adjourned to 31 July as it has again extended a deadline for creditors in relation to a debt restructuring plan, the company said in a Wednesday filing.

The adjournment was made by a Hong Kong court following a consensual application for such a move by Shimao and the petitioner, state-owned China Construction Bank (Asia), the filing said. Read more>>

Malaysia Taps Chinese Investors to Build More Data Centres

Malaysia is in discussions with potential Chinese investors to build data centres in the Southeast Asian nation as it seeks to attract more “high quality” investments, according to Economy Minister Rafizi Ramli.

The government will strengthen its infrastructure offering to take advantage of the artificial intelligence boom, Rafizi told Bloomberg TV. Read more>>