Evergrande Says $1B Share Sale Falls $445M Short and More Asia Real Estate Headlines

The ongoing financial adventures of China’s most indebted developer lead the news again today as China Evergrande’s plan to raise $1 billion through a share sale comes up about $445 million short.

India’s largest developer also gets some press today as it unveils a $137 million senior living joint venture with a US operator and a pair of Singapore state-owned media giants also reach our pages as Mediacorp prepares to sell its former broadcasting site and SPH announces its first-ever loss.

China Evergrande Raises $555M in Slimmed-Down Share Sale

China Evergrande Group 3333.HK, the country’s most indebted property developer, on Wednesday said it has raised $555 million in a slimmed-down share sale after initially targeting up to double that amount.

China’s second-biggest developer by sales after Country Garden Holdings Co Ltd 2007.HK sold 260.65 million shares at HK$16.50 ($2.13) each, the low end of a price range flagged by its bankers in a term sheet when the deal launched on Tuesday. Read more>> 

Embassy Group Inks $137M India Senior Living JV with Columbia Pacific

Realty major Embassy group on Tuesday said it has partnered with US-based Columbia Pacific Group to foray into senior living housing segment, and will together invest Rs 1,000 crore over the next four years to develop multiple projects for the elderly across various cities in the country.

Bengaluru-based Embassy Group, which already has presence in housing, commercial, hospitality, co-working, co-living, warehousing and facility management segments of real estate, is venturing into the senior living space to tap rising demand in this asset class, especially after the outbreak of COVID-19 pandemic. Read more>>

Frasers Property Flags Full-Year Attributable Profit to Drop 60%-70%

Mainboard-listed Frasers Property Ltd (FPL), hard hit by the pandemic, expects to report a decline of as much as 70 per cent in its attributable profit for FY2020.

The company, in a profit guidance on Tuesday (Oct 13) on the unaudited financial results for the financial year ended Sept 30, said the coronavirus pandemic and the resulting subdued global economic environment have significantly hit its overall business performance. Read more>>

Singapore’s Media Corp Puts Hilltop Site on the Market for S$400M

The sprawling seven-hectare leasehold plot that used to house the iconic Caldecott Broadcast Centre has been offered for sale by Mediacorp via a public tender.

The gross land value for a proposed bungalow redevelopment on the site is expected to be more than S$400 million – including the differential premium (DP) and the lease upgrading premium (UP), said CBRE and Showsuite Consultancy. Read more>>

Mid-Sized HK Developers Search for Niche Revenue Streams

Hong Kong’s real estate developers, particularly mid-sized companies that rely on a narrow segment for their sales, are diversifying their product offerings to find potential revenue in new market niches to help them survive the city’s worst recession on record.

Some of them are developing data centres, while others are expanding into industrial facilities and self-storage warehouses, said Maggie Hu, an associate professor of finance and real estate at the Chinese University of Hong Kong. Mid-sized developers are particularly vulnerable to the adverse impact of the business downturn in Hong Kong, giving them a bigger incentive than large, cash-rich companies in adapting to changing needs of the market. Read more>> 

S$232M Fair Value Loss Pushes Singapore’s SPH into the Red 

Singapore Press Holdings (SPH) on Tuesday reported its first-ever net loss of S$83.7 million for the full year ended Aug 31, as Covid-19 “severely disrupted” all business segments including property, which has been a key revenue driver for the group as its media business remains challenged amid declines in advertising revenue.

The company, which publishes The Business Times (BT), took a hit from non-cash fair value losses of S$232 million – mostly on its malls and purpose-built student accommodation (PBSA) assets. Read more>>

Million-Dollar HDB Flats Make Up 0.3% of Total Resale Flats Sold

Housing Board flats sold for at least $1 million made up 0.3 per cent of total resale transactions this year, said National Development Minister Desmond Lee on Wednesday (Oct 14).

There have been 38 such million-dollar flats sold as at August this year, out of 14,400 resale transactions. Read more>>

Sinic Holdings Successfully Completes Issuance of $250M Bonds

Sinic Holdings (Group) Company Limited (the “Company”, stock code: 2103) is pleased to announce that the Company successfully completed issuance of US$250 million 364-Day Senior Notes (“The Notes”) on October 12, with orders over US$1.5 billion, obtaining 6 times over-subscription.

The coupon rate of the Notes was 9.50%, and the final pricing of the Notes was 40 basis points lower than the guidance of the initial price. The yield of the new Notes has decreased significantly compared to the previous same tenor notes, which proves the Company’s improving investor recognition in the capital markets. Read more>>

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