Things are looking grim for CFLD boss Wang Wenxue
In today’s roundup of regional news headlines, heavily leveraged mainland developer CFLD announces its latest default, China’s Sincere Property throws shade on joint venture partner CDL of Singapore, and 41 parties enter the race for a Hong Kong development project.
Developer CFLD Defaults on Another $1.3B in Debt
Troubled property developer China Fortune Land Development again defaulted on billions of yuan in debt as it struggles to scrape together enough cash to meet its commitments amid a tightening regulatory environment.
CFLD said it and its subsidiaries recently failed to repay RMB 8.38 billion ($1.3 billion) in principal and interest on a mishmash of new debt, including bank loans, trust loans, bonds and other debt financing tools, according to a Wednesday filing with the Shanghai Stock Exchange. Read more>>
Sincere Property Bond Lapse Exposes Rift With CDL
The Chinese real estate company acquired by City Developments Ltd is accusing its buyer of holding up decisions following a missed debt payment, underscoring the challenges for foreign companies making acquisitions in the world’s second-largest economy.
Sincere Property Group says CDL delayed decision-making, stalling opportunities to raise funds and improve cash flow, according to a statement posted on Sincere’s website. Read more>>
41 Developers Register Interest in Hong Kong URA Project
The Urban Renewal Authority has received 41 expressions of interest for its development project on Oak and Ivy streets in Tai Kok Tsui.
A review panel under the URA board will shortlist developers based on experience and financial capability and invite them to submit tenders. Read more>>
Soilbuild REIT Unitholders Vote to Privatise, Sell Aussie Assets
Unitholders of Soilbuild Business Space REIT have voted in favour of the proposed privatisation offer from Blackstone Real Estate and Lim Chap Huat, the executive chairman of the real estate investment trust’s sponsor, Soilbuild Group.
The proposed offer is via a trust scheme of arrangement. This means the outcome is determined by minorities, as Lim and his concert parties abstained from voting. Read more>>
Tencent Leads $61.5M Investment in China Real Estate Portal Julive
Beijing-based startup Julive.com, known as Juli Zhaofangwang in China, has raised RMB 400 million ($61.5 million) in its Series C+ round led by Tencent and Oceanpine Capital, the company announced on its official WeChat account Thursday.
Founded in 2014, the site provides basic information such as names, locations and base prices of new properties. After calling a telephone hotline, prospective buyers are directed to a consultant for an on-spot visit and signing with the developer, which pays the firm for its marketing services. Read more>>
Singapore Office Rents May Stay Lower for Longer
The recovery in Singapore’s office rents could be a protracted one as companies review their office space needs, while rents at older buildings are expected to remain under pressure amid a flight to quality.
In the past, finance and insurance as well as real estate, professional services and administrative and support services have been seen as key drivers for office demand in the CBD, said Institute of Real Estate and Urban Studies deputy director Lee Nai Jia. “The performance of the FIRE sectors had a direct bearing on the demand and rents of offices in the CBD,” he said. Read more>>
Pair of Shophouses in Tanjong Pagar Up for Sale With S$15M Guide Price
A pair of shophouses at 16 and 18 Tanjong Pagar Road have been put up for sale via an expression of interest exercise with a combined guide price of S$15 million ($11.2 million), exclusive marketing agent PropNex Realty said Wednesday.
The shophouse pair spans a land area of 1,976 square feet (184 square metres) and a gross floor area of 4,090 square feet, which includes an outdoor refreshment area. In its press statement, PropNex highlighted the potential to increase the property’s GFA via the addition of an attic, subject to approval. Read more>>
Shophouse Hotel for Sale at S$28.8M in Singapore’s Civic District
Hotel Kai, a rare 999-year leasehold boutique hotel, is up for sale at an indicative price of S$28.8 million ($21.5 million). Colliers International put up the hotel for sale via an expression of interest exercise on 4 March.
Located in the heart of Singapore’s historic Civic District in Bugis, Hotel Kai underwent a careful restoration and modernisation in 2010. Read more>>
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