In today’s news, Singapore’s CDL is selling off stakes in two of its western China residential projects to Vanke, while 37 developers, including China’s HNA Group, have submitted bids for a site on southern Hong Kong island. Speaking of HNA, the mainland powerhouse appears to be running on some pricey fuel after issuing China’s most expensive US dollar bond ever, and the company’s Spanish hotel acquisition may be on its way to an early check-out. All these stories and more await you below.
City Developments Ltd’s (CDL) wholly owned CDL China has tied up with one of China’s leading real estate developers through a partial divestment of CDL China’s interests in two projects in the Yuzhong district of Chongqing for 986 million yuan (S$202 million).
Under the strategic partnership with China Vanke (Vanke), CDL China partially divested 70 per cent of Chongqing Huang Huayuan and 50 per cent of Eling Residences to Vanke’s subsidiary. As a result, both projects will be jointly developed and managed by CDL China and Vanke. Read more>>
The second phase of MTR Corp Ltd’s (0066) development project in Wong Chuk Hang Station received 37 expressions of interest – including from HNA Group, which has issued China’s most expensive short-term dollar bond, and is believed to be in need of cash.
Other applicants included local giants Wheelock (0020), New World Development (0017) and Great Eagle Holdings (0041). Read more>>
HNA Group, which once symbolized China’s insatiable appetite for overseas assets, sold the country’s most expensive short-term dollar bond ever as it tries to refinance a wall of maturing debt amid government scrutiny.
The company priced a 363-day bond at 8.875 percent, after initially marketing it for about nine percent, according to a person familiar with the offering. Proceeds from the $300 million sale will be used to refinance offshore debt, said the person, who isn’t authorized to speak publicly and asked not to be identified. Read more>>
HNA Group Co.’s precarious grip on a $2.2 billion Spanish hotel company is in doubt as a mountain of debt comes due and China puts the squeeze on its most prolific acquirers.
The Chinese conglomerate, whose assets include a quarter of Hilton Worldwide Holdings Inc., owns about 30 percent of Madrid-based NH Hotel Group SA. But HNA is in Spanish limbo: its directors have been booted off the board in a shareholder revolt, while Beijing’s crackdown on overseas deals would obstruct any buyout that could bring NH Hotel to heel. Analysts anticipate a sellout. Read more>>
Ambitious acquisition plans worth over US$670 million (S$911 million) are on the cards for Keppel-KBS US Reit as it readies for its listing here, it said yesterday.
The Reit’s joint sponsors, Keppel Capital and KBS Pacific Advisors, said the trust has the option of buying four other properties in the United States – two in Seattle, one in Austin and one in Atlanta – with a combined gross value of over US$320 million to US$350 million in the next one to two years. Read more>>
Chip Eng Seng Corp has decided to scrap some 556 sales contracts with buyers of its units in the Australian residential project Tower Melbourne as a result of a protracted litigation that has stalled the project’s demolition works for four years.
The mainboard-listed property and construction group said that it was also exploring viable exit options that includes a sale of the property. Read more>>