BAML Halts Work on HNA Deals Over Debt Levels and More Asia Real Estate Headlines

Mainland Chinese debt continues to dominate the headlines today as an American banking giant backs away from deals with China’s HNA over leverage concerns. Also in the news, Hong Kong’s General Post Office will be making way for more pricey office space, and Singapore’s home owners are banding together to sell their tower blocks. Read on for all these stories and more.

BAML Halts Work on HNA Deals Over Debt Levels

Bank of America Corp. has told investment bankers to stop working on transactions with HNA Group Co. for now amid growing concerns about the acquisitive Chinese conglomerate’s debt levels and ownership structure, according to people familiar with the matter.

The U.S. investment bank joins other Wall Street firms, including Citigroup Inc. and Morgan Stanley, that are largely steering clear of advising and financing the group on deals because they are unable to get internal approvals from “know your customer” committees, the people said, asking not to be identified because the information is private. Read more>>

Hong Kong Post Office to Go – New Record Land Deal on Way?

Hong Kong’s post office headquarters in Central is set to be demolished to make way for office buildings as part of a transformation of the city’s prime waterfront space.

The General Post Office building, opened in 1976, will be torn down and its contents moved to a new location in Kowloon Bay, the government’s Commerce and Economic Development Bureau said at a panel meeting in the city’s legislature on Friday. Read more>>

China’s NDRC Gives More Hints on Outbound Curbs

China will relax its supervision of outbound investment projects, with attention focusing only on investment in several key industries after tightened measures were implemented last year.

“Regulatory authorities will continue to pay close attention to overseas investment in key industries such as property, hotels, entertainment, cinemas and sports clubs,” said Yan Pengcheng, spokesman for the National Development and Reform Commission. Yan said companies planning to invest in those industries in foreign countries should “make cautious decisions”. Read more>>

Wang Jianlin Loses Spot as China’s 2^nd Richest Man

“Pony” Ma Huateng has overtaken Wang Jianlin to become China’s second-richest person. The co-founder of Tencent Holdings Ltd. added $10 billion to his wealth this year as shares of the internet giant surged 57 percent on record sales and profit that topped estimates.

Wang’s net worth fell to $30.5 billion, according to the Bloomberg Billionaires Index, as his Dalian Wanda Group Co. has come under regulatory pressure over how it financed its acquisition spree. Read more>>

Condo Tower on SG’s Meyer Road Sold in US$50M En Bloc Deal

The Albracca condominium in Meyer Road has been sold for $69.12 million in an en bloc deal – the fifth done this year. The owners had hoped for a price from $62 million to $65 million when the tender opened last month.

So the deal they secured from developer Sustained Land, after several bids were lodged, is up to 11.5 per cent above expectations. Read more>>

CapitaLand Mall Trust Score 1.2% Increase in Net Property Income

Thanks to lower utilities and maintenance expenses, it was a decent quarter for CapitaLand Mall Trust as it recorded a 1.2% increase in its net property income to $117.6m.

According to OCBC Investment Research analyst Wong Teck Ching Andy, the increase in NPI is due to the lower utilities and maintenance expenses offsetting the decline in gross revenue, which went down slightly by 1.3% to $168.6m. Read more>>

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