China City Construction Warns on Debt Repayment and More Asia Real Estate Headlines

It probably all seemed like good fun when the Kushners borrowed $250M from Chinese investors

Debt is our theme in today’s real estate headlines for the region, as a much-trouble mainland construction and property group says it may not be able to pay what it owes on the same day that the country’s most indebted builder promises to pay off $11.8 billion in perpetual securities this month. President Trump’s in-laws have their own challenges handling loans as the Kushners look to pay back $250 million owed to Chinese investors. Read on for all these stories and more.

China City Construction Warns on Debt Repayment

The China City Construction Holding Group, a state-owned infrastructure and property developer, has warned it is facing cash flow problems and could struggle to repay debts due on June 12.

The Beijing-based firm is also facing several lawsuits from creditors and some of its bank accounts have been frozen, it said in a statement to the Shanghai Clearing House late on Monday. Read more>>

China Evergrande Vows to Pay Back Perpetual Securities This Month

China Evergrande Group (3333.HK) said on Monday it has completed redeeming 71.3 percent, or 80.56 billion yuan ($11.84 billion), of its outstanding perpetual capital instruments and plans to redeem the remainder of such instruments by the end of June.

Shares of the country’s top homebuilder closed up 11.3 percent at a record high on Monday ahead of the announcement. Evergrande shares have soared 90 percent since mid-May. Read more>>

Kushners Scramble for $250M Loan to Pay Back Chinese Investors

The Kushner family real estate company is seeking a $250 million loan to pay back Chinese investors in a New Jersey luxury tower but finding some major U.S. banks wary of the controversies around its White House links and the visa program used to attract the investors.

Kushner Cos. is sending out feelers for the loan against its 50-story Trump Bay Street in Jersey City. It would keep $50 million and use the rest to repay the investors and pay off a mortgage on the building, according to a person familiar with the negotiations who asked not to be identified because the talks are private. Read more>>

SOHO’ s Pan Shiyi Sues Fugitive Billionaire Guo Wengui in NYC

The head of a Hong Kong-listed property company has become the first big name to formally hit back at high-profile billionaire Guo Wengui by filing a ­defamation suit against Guo in the United States.

Beijing-based sources also confirmed yesterday that Guo’s wife and daughter had flown to New York on a mission to persuade him to return to Beijing. Read more>>

Vancouver Home Prices Climb to New Record – Again

Vancouver home prices climbed back to a record in May, suggesting the impact of a foreign-buyer tax imposed last year is fading.

Benchmark prices in the west coast city reached a record C$967,500 (US$717,500), up 8.8 per cent from a year earlier, the Real Estate Board of Greater Vancouver said. Read more>>

China’s Top 3 Developers Saw Sales Fall 14.4% in May

China’s top three mega developers, which represent a tenth of the country’s market, saw their contracted sales drop 14.4 per cent month on month in May as property tightening measures continue to weigh on the market and developers delay sales amid price controls.

The big three delivered combined sales of 114.1 billion yuan (US$16.79 billion) for the month compared with 133.3 billion in April, according to their public filings. 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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