People’s Park Centre may need to wait a while longer for a new owner
The upper limits of Singapore’s commercial property market were successfully tested this week as a $1.3 billion project tender in the city’s Chinatown area failed to draw a single bid from potential developers. Also in the news, Evergrande’s electric vehicle division denies rumours of a takeover at the same time that the value of shares in its parent group are written down to nearly zero by a local investment fund.
$1.3B Singapore Project Tender Fails to Draw a Bid
The collective sale tender for People’s Park Centre in Singapore’s Chinatown closed Thursday (Aug 18) without any bids. A spokesman for its marketing agency, ERA Realty Network, told The Straits Times it will be initiating private negotiations with some developers in the next 10 weeks.
The mixed-use development was launched for collective sale by public tender with a reserve price of S$1.8 billion ($1.3 billion) last month. It came 3 years after an attempt to sell the centre en bloc for S$1.35 billion failed as a majority of owners did not consent to the move. Read more>>
Evergrande Auto Denies Merger And Acquisition Rumors
Regarding recent reports that Evergrande Auto will be acquired by another automobile company, on August 18, Liu Yongzhuo, president of Evergrande Auto, responded to the domestic media that the company has been actively introducing strategic investors. Up to now, both local governments and many powerful enterprises have expressed their interest in Evergrande Auto, but there has been no M&A.
Jiemian News reported on August 17 that an insider revealed that Evergrande Auto may be acquired by another automobile company. People familiar with the matter said that the M&A is a government act, and the parties are still deadlocked. Read more>>
China Mutual Fund Values Evergrande Shares At Next-To-Nothing
Shares of some of China’s largest property developers are now considered almost worthless by a mutual fund that holds the assets.
An exchange-traded fund run by HuaAn Fund Management Co. has assigned a value of HK$0.01 ($0.001) for each share of China Evergrande Group and Evergrande Property Services Group Ltd. in its portfolio, according to a statement late Tuesday. Before trading in those real estate companies was suspended in mid-March, their shares were at HK$1.65 and HK$2.30, respectively. Read more>>
Singapore’s Oxley Holdings Reports $14.6M Loss
Oxley Holdings posted a S$20.3 million ($14.6 million) loss attributable to shareholders for the second half of the fiscal year ended June 2022, more than doubling from its loss of S$9.6 million the year before.
According to the property developer’s financial statements filed after the market opened on Friday (Aug 19), this was largely due to a steep decline in revenue, lower profit margins and continued losses booked from discontinued operations. Read more>>
Auric Pacific CEO Gets Option to Buy Singapore Bungalow For $40M
A FREEHOLD bungalow in the Belmont Park Good Class Bungalow (GCB) Area is in the early stage of being sold for S$55.5 million ($40 million) or about S$2,055 per square foot (psf) on its land area of 27,000 sq ft.
On the rectangular plot is a 2-storey house with a swimming pool. The property is said to have been developed in the early 2000s by… Read more>>
China Property Weighs On Hong Kong’s Bank of East Asia
The Bank of East Asia’s (0023) earnings fell 43.9 percent for the first six months of this year to HK$1.5 billion mainly due to a significant increase in impairment losses related to the Chinese property sector and will have a share buyback of HK$500 million.
Net interest income for the lender increased by 5.6 percent to HK$5.83 billion and the net interest margin widened by 0.04 percentage points to 1.42 percent, it said in a filing. Read more>>
Ping An Says Mortgage Refusals Have Minimal Impact on Its Business
Recent cases of some homebuyers refusing to pay mortgages due to delayed deliveries or stalled construction of their presold homes have affected Ping An Bank’s business, but the impact has been limited, executives said on Thursday.
Of the more than 300 real estate projects involved in the incident, only 27 are related to Ping An Bank, and all of them are located in first- and second-tier cities or economically developed regions such as the Guangdong-Hong Kong-Macao Greater Bay Area and Yangtze River Delta region, they said. Read more>>
Fitch Downgrades Sino-Ocean To ‘BB+’; Ratings On Negative Watch
Fitch Ratings has downgraded China-based homebuilder Sino-Ocean Group Holding Limited’s Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior unsecured ratings to ‘BB+’ from ‘BBB-‘. All ratings are placed on Rating Watch Negative (RWN).
The downgrade reflects our expectation that the company’s leverage, measured by net debt/net development-property assets, will remain above our previous negative trigger of 40% in the medium term. Fitch believes Sino-Ocean’s financial flexibility has also deteriorated amid the challenging operating and financing environment for the Chinese property sector. Read more>>
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