China’s Country Garden Posts $24B Loss for 2023 and More Asia Real Estate Headlines

Embattled Chinese developer Country Garden posts a record loss for 2023, with that belated earnings release leading today’s headline roundup. Also in the news, CapitaLand India Trust reveals a data centre leasing deal and Paragon REIT’s sale of an Australian mall moves ahead.

Country Garden Posts Record $24B Loss in Delayed Results Release

Country Garden Holdings suffered another record loss in 2023 as one of China’s largest developers continues its lengthy restructuring process after defaulting on its debt.

The embattled real estate firm reported a loss attributable to its shareholders of RMB 178.4 billion ($24.3 billion) for the year, compared with a loss of RMB 6 billion in 2022, according to an exchange filing on Tuesday. Its loss narrowed in the first half of 2024 to RMB 12.8 billion, from RMB 48.9 billion in the same period a year earlier. Read more>>

CapitaLand REIT Says Hyperscaler Commits to Lease Half of India Data Centre Pipeline

CapitaLand India Trust said Wednesday that it has signed a long-term agreement with a global hyperscaler for one of the trust’s data centres under development.

The deal is expected to allow the Singapore-listed REIT to pre-lease about half of its total gross power capacity under development of around 250 megawatts. CapitaLand India Trust is developing four data centres in Mumbai, Chennai, Hyderabad and Bangalore. Read more>>

Paragon REIT $106M Sale of Australian Mall Moves Forward

The manager of Singapore-listed Paragon REIT announced Tuesday that the purchaser of Figtree Grove Shopping Centre has exercised a call option to acquire the New South Wales mall.

The SGX-listed trust had announced the option deal in November, with Australian media identifying the buyer of the Wollongong property as Fawkner Property Group. The selling price for the 85 percent interest is A$163.2 million ($106.4 million). Read more>>

Singapore’s Roxy Square Set to Be Marketed at Discounted S$1.1B 

Roxy Square in Singapore’s Katong area may soon be available at a nearly 11 percent discount to its price last year as owners of the strata-titled commercial project work on a revised deal.

Incorporating the 576-room Grand Mercure Roxy Hotel, the East Coast Road project is being marketed by JLL with the new price expected to be S$1.15 billion ($840 million), down from S$1.25 billion in an earlier marketing effort last year, according to a release. Read more>>

Far East Organization Marketing Orchard Road Properties in Singapore

A batch of 14 freehold strata-titled units in Lucky Plaza have been put up for sale for S$52.6 million ($38.4 million).

According to checks by the Business Times, the units being sold are held by Far East Organization, which developed the Orchard Road property and owns a substantial share of space in the building. The portfolio up for sale comprises a basement food court spanning 3,046 square feet (283 square metres) and seven retail units tenanted to a pub, retail shops, beauty service providers and a maid agency. Read more>>

China’s CFLD Turns to Local Courts as Restructuring Plan Falters

A major Chinese builder, which was a harbinger of the property crisis, may scrap a creditor-approved debt plan and end up in court to solve its lingering debt problems, highlighting challenges for distressed developers as the downturn enters its fifth year.

China Fortune Land Development, which defaulted in early 2021, is considering a new restructuring under the supervision of a Chinese court that would replace an earlier debt plan approved by creditors, said people familiar with the matter. Read more>>

Adani Said in Talks to Take Over Emaar Group’s India Real Estate Business

Adani Group is in advanced talks with Dubai-based developer Emaar Group to acquire a majority stake in its Indian business for between INR 40 billion and INR 50 billion ($460 million-$580 million), two people aware of the matter said.

“It (the deal) will be for 70-100 percent ownership acquisition in Emaar India. Most of the projects (of Emaar) are at prime locations, which promises superior valuations,” one of the two people said, adding that the acquisition is likely to be done by Adani Realty, an unlisted company. Read more>>

8 Distressed Chinese Developers Head to Court in Next Two Weeks

At least eight major distressed Chinese firms, including a China Evergrande unit, are set to defend themselves in court cases relating to their debt problems over the next two weeks, in one of the busiest stretches ever for such hearings.

Tianji Holding Ltd, an offshore subsidiary of Evergrande and a guarantor to some of the defaulted builder’s dollar notes, is scheduled to make its case in a Hong Kong court on Wednesday, along with HNA Group (International) Co and Suning Sports International Ltd. Another Evergrande subsidiary, CEG Holdings BVI Ltd, was given a liquidation order earlier this month. Read more>>

Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.