Evergrande Misses Third Set of Bond Payments and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, debt-saddled China Evergrande Group sparks fresh contagion fears after missing a third round of bond payments, Evergrande’s former chief economist distances himself from the group’s growth strategy, and Hong Kong leader Carrie Lam reportedly huddles with local developers to talk housing policy.

Evergrande Misses Bond Payment for Third Time

China Evergrande Group on Tuesday missed its third round of bond payments in three weeks, intensifying market fears over contagion involving other property developers as a wall of debt payment obligations come due in the near term.

Some bondholders said they did not receive coupon payments totalling $148 million on Evergrande’s April 2022, April 2023 and April 2024 notes due by 4am GMT on Tuesday, following two other payments it missed in September. Read more>>

Former Evergrande Economist Disowns Developer’s Debt-Fuelled Growth

Ren Zeping, China Evergrande Group’s former chief economist and the country’s highest-paid strategist, has disowned the leveraged diversification and debt-fuelled acquisitions of his former employer, as the world’s most indebted developer faces another string of bond payments this week.

The former head of the Evergrande Research Institute — with an annual salary of RMB 15 million ($2.3 million) — said he had admonished the parent company’s top executives to focus on cutting debt instead of diversifying away from its core property business, according to a post on the WeChat account of Ren, who joined Soochow Securities as chief economist in March. Read more>>

Hong Kong Developers Play Down Housing Huddle With Lam

Shares of Hong Kong developers fell on news that Chief Executive Carrie Lam would meet with the city’s Real Estate Developers Association on Tuesday to talk about housing policy.

Real estate giants closed lower after paring losses on the stock market despite a surge in the benchmark Hang Seng index. Read more>>

BlackRock Snares 5% Stake in Sydney Airport

Global investment group BlackRock has emerged as one of Sydney Airport’s biggest institutional shareholders with a 5 percent stake and has been buying shares since early June, just before a A$22 billion ($16.2 billion) takeover approach was revealed.

BlackRock now owns 135.5 million shares of the airport, which plans to recommend a cash takeover bid priced at A$8.75 per share — raising the value of the offer to A$23.6 billion — if a consortium led by IFM Investors proceeds with a formal offer after completing due diligence. Read more>>

Singapore Condo Resale Volumes Dropped 3.8% in September

Singapore resale condominium volumes dipped in September after rising in August and July, while prices continued to rise for the 14th straight month, according to flash figures from SRX Property on Tuesday.

“In the absence of major launches in September, buyers turned to the resale market for their housing needs,” said Huttons Asia chief executive Mark Yip. Read more>>

Tuan Sing Prices S$200M in 6.9% 2024 Notes

Tuan Sing Holdings has priced S$200 million ($147.5 million) in notes due in 2024 at 6.9 percent, to be issued under its S$900 million multi-currency medium-term note programme established in February 2013.

The notes are expected to be issued on 18 October 2021 at an issue price of 100 percent of the principal amount in denominations of S$250,000 each and are due to mature on 18 October 2024. Certain controlling shareholders and directors of Tuan Sing will be subscribing to about 3.4 percent of the offering. Read more>>

ARA US Hospitality Trust Buys Site Under Melbourne Hotel for $2.4M

A nearly half-acre site under a suburban Melbourne hotel changed hands last month for A$3.3 million ($2.4 million), with ARA US Hospitality Trust purchasing the plot from a joint venture between local developer Pruitt Associates, Brookfield Properties and QIC of Australia.

The Singapore-based real estate investment trust has already owned the seven-story, 134-room Hyatt House hotel at 11800 West Broad Street in Richmond, Victoria since 2018. Read more>>

Holland Hill Lodge up for Collective Sale at S$25.8M

Holland Hill Lodge, a freehold residential development site at 5 Holland Hill in Singapore, has been put up for collective sale via a public tender exercise.

Its land price of S$25.8 million ($19 million) works out to S$1,741 per square foot per plot ratio, inclusive of the additional bonus balcony space, said exclusive marketing agent SRI Capital Market. Read more>>

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