CapitaLand topped out at Raffles City Chongqing in February
Falling profits lead the way in Mingtiandi’s roundup of real estate headlines today with the news that earnings at a major Singapore developer took a hit from the costs of a recent merger.
In other news around the region, an uptick in defaults on dollar bonds by mainland developers represents a risk to investor, and an international hotel group takes on Oyo at its own budget hotel game.
Elsewhere, new flats by a Hong Kong developer are on sale at the cheapest prices in a decade.
CapitaLand Profit Falls 4.2% on Merger Costs
One-off transaction costs incurred when acquiring Ascendas-Singbridge hit the bottom line at developer CapitaLand in the second quarter. The property heavyweight reported a 4.2 percent drop in net profit to S$579.8 million ($419 million) for the three months to 30 June.
Ascendas-Singbridge is expected to have started contributing to group profit, CapitaLand noted yesterday. Read more>>
Uptick in Defaults Highlights China Developer Bond Risks
Warnings about bond covenants often seem to fall on deaf ears. Just ask Jake Avayou.
The senior covenant officer at Moody’s Investors Service has been cautioning for years that Chinese property developers are using their dominance of the Asian dollar debt market to borrow money from bondholders on looser terms. It’s a trend that shows no sign of going away: the average covenant quality score for property firms fell to the weakest last quarter since Moody’s began compiling the figures in 2011. Read more>>
CDL Profit Drops 26% in Q2
Property and hotels group City Developments Limited (CDL) on 8 August posted a 26.4 percent drop in group net profit to S$162.4 million for its fiscal second-quarter ended June 30, down from a restated net profit of S$220.7 million for the year-ago period.
This translated to earnings per share (EPS) of 17.2 cents for the quarter, versus 23.6 cents in the preceding year. Read more>>
Wharf Whinges About Perfect Retail Storm in Hong Kong
The parent company of Times Square and Harbour City says business for its retail tenants has become more difficult in the wake of ongoing protests and the China-US trade war.
“It is like a perfect storm. External factors and internal factors are all erupting at the same time,” said Wharf Real Estate Investment Company chairman and MD Stephen Ng, after releasing the half-year results. Read more>>
Accor Takes on Oyo with Budget Hotel Franchise Gambit in Singapore
Oyo Hotels & Homes has a competitor in Accor Hotels, which has just inked a deal to franchise 15 budget hotels in Singapore which are branded Fragrance Hotel.
A room at Fragrance Hotel in Balestier, an area on the fringes of the city, costs $64 for a stay on August 17. Price-wise and building-wise, Fragrance hotels sure sounded like a good target for Oyo Hotels & Homes to convert to its brand. Read more>>
New Tsuen Wan Flats Cheapest in a Decade
Billion Development and Project Management on Tuesday released the first batch of flats at its Tsuen Wan project at discounts of up to 10 per cent to rates prevailing in the district, in the first sign that two months of unrest in Hong Kong is having an impact on property prices.
The Hong Kong builder unveiled 238 flats at the 840-unit The Aurora in the western New Territories, even as sales of secondary homes dropped to a nine-month low, with 48 deals concluded last week, according to a report from Ricacorp Properties. Read more>>
Hyderabad Realtors Point to Grade A Space Shortage
Sumanth Reddy Arani, president of Hyderabad Realtors Association and President-Electm NAR-India, said there is a scarcity of Grade A Commercial Space in the Hyderabad city.
Grade A commercial space consumption is on the rise at 8 million square feet and slowly catching up with Bangalore, which stands at 13 million square feet. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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