Angelo Gordon may be looking for a new buyer for its units at Draycott 8
In today’s roundup of regional news headlines, two Singapore property deals collapse during due diligence, five private equity firms are reportedly shortlisted to bid for data centre operator Global Switch, and the State Council assigns RMB 1 trillion to boost China’s economy.
BPEA, Angelo Gordon SG Deals Said to Fall Through
A sale has failed to materialise for Parkview Square, a 24-storey art deco style office tower in the Bugis area for which Baring Private Equity Asia had been doing exclusive due diligence for a potential purchase of about S$900 million ($647.7 million).
Also not happening is the sale of a stack of 22 units at the Draycott Eight condo in one of Singapore’s poshest residential districts. The Business Times reported in June that an Indonesian family was in exclusive due diligence with a view to buying the units for a total of nearly S$168 million from US-based alternative investment firm Angelo Gordon. Read more>>
EQT, KKR Reportedly Bidding for $10B Global Switch Deal
Private equity firms including EQT and KKR are among bidders shortlisted to buy data centre company Global Switch Holdings, according to people familiar with the matter.
Gaw Capital Partners, PAG and Stonepeak Partners have also been selected to participate in the next round of bidding for the London-based company, the people said, asking not to be identified discussing private matters. Suitors could start conducting due diligence in the coming weeks ahead of a deadline for binding offers, the people said. Read more>>
China Adds RMB 1 Trillion in Stimulus to Rescue Growth
China stepped up its economic stimulus with a further RMB 1 trillion ($146 billion) of funding largely focused on infrastructure spending, support that likely won’t go far enough to counter the damage from repeated COVID lockdowns and a property market slump.
The State Council, China’s cabinet, outlined a 19-point policy package on Wednesday, including a further RMB 300 billion that state policy banks can invest in infrastructure projects, on top of RMB 300 billion already announced at the end of June. Local governments will be allocated RMB 500 billion in special bonds from a previously unused quota. Read more>>
Chinese Developer CIFI Plans State-Backed Bond Under New Scheme
Chinese developer CIFI Holdings Group intends to sell an onshore bond with a state guarantee, people familiar with the matter said.
A unit of the developer plans to issue the three-year medium-term note of between RMB 1 billion and 1.5 billion ($146 million-$219 million), according to the people, who asked not to be identified speaking about private information. It will be sold on the interbank market with guarantees from China Bond Insurance, they said. Read more>>
State-Backed COLI, Poly Property Book Smaller Profits
Two of China’s biggest state-backed developers reported a drop in interim earnings as sporadic COVID-19 lockdowns and debt defaults kept homebuyers at bay, stoking the worst slump in home sales in 24 years.
Earnings at China Overseas Land & Investment shrank by 19 percent to RMB 16.7 billion ($2.43 billion) in the six months to 30 June, the company said in an exchange filing in Hong Kong. At Poly Property Group, income fell 9.2 percent to HK$1.51 billion ($192 million). Read more>>
Chinese Developers to See Marginal Ease in Liquidity Pressure: UOBKH
With supply policy seeing an inflection point, coupled with a relaxing demand policy, UOB Kay Hian expects a marginal easing in the liquidity pressure of China developers, the investment bank said in a report.
The research team also expects the sentiment of both homebuyers and investors to improve, but it remains “relatively cautious” on the scale and speed of deployment of top-level rescue funds. Read more>>
Hong Kong Luxury Home Values in World-Leading Slide
Four US cities dominate the leader board in a new measure of residential property market gain over the first half of 2022, while Hong Kong sits at the very bottom, as one of only three cities to lose value in the luxury home segment.
Miami tops the Savills Prime Residential Index: World Cities, with homes in the Florida hotspot gaining 12.5 percent in six months, defying pressure from rising interest rates. Read more>>
China’s Weak Land Market Has Yet to See Sustainable Recovery
China’s land sales slumped in the first seven months of 2022 and have yet to recover sustainably, as many developers are still prioritising liquidity preservation over land replenishment amid weak sales and impaired funding access, according to Fitch Ratings.
Nationwide land transfer revenue fell by 42.2 percent year-on-year to RMB 2.4 trillion in the period, while most provincial regions saw a retreat of more than 30 percent. The decline in year-to-date land sales eased in June and July due to a lower base, as the land market had started to cool in mid-2021. Read more>>
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