Evergrande Restructuring Details to Land This Week and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, defaulted developer Evergrande readies the terms of its long-awaited debt restructuring plan for a mid-week release, and China suspends the operations of Big Four accounting firm Deloitte.

Evergrande Preps Restructuring Deal for End of March, Term Sheets by Wednesday

The world’s most indebted developer said it expects a restructuring support agreement to be ready by the end of March, after it won preliminary support from a group of major creditors.

China Evergrande Group said during a Hong Kong court hearing on Monday that creditors will get access to term sheets as early as Wednesday. The progress allowed for adjournment of the case to 31 July. Read more>>

China Suspends Deloitte’s Beijing Unit and Fines It

China’s Finance Ministry has suspended the operations of Deloitte’s Beijing office for three months, citing “serious audit deficiencies” in the firm’s work with a big state-owned asset manager.

The move followed an investigation into its audits of China Huarong Asset Management, a firm that was bailed out in late 2021. The Finance Ministry said Deloitte Hua Yong, the Chinese name of the auditor’s local affiliate, didn’t assess the true value of China Huarong’s assets or provide proper audit opinions on unusual transactions even after identifying them. Read more>>

Manulife US REIT Denies Reported $150M Figure for Sale of Its Manager

Singapore-listed Manulife US REIT on Friday denied reports of a KRW 200 billion ($150 million) figure for the sale of its manager to South Korean asset manager Mirae Asset Global Investments.

The trust’s manager was responding to an earlier report by the Business Times, which quoted Maeil Business News Korea as saying that Mirae is the preferred bidder to buy Manulife US Real Estate Management for KRW 200 billion, as well as part of a stake in the REIT. Read more>>

James Koh to Privatise Global Dragon After Offer Acceptance Crosses 90%

The privatisation of Singapore-listed Global Dragon will go through after the company’s offerors secured 95.50 percent of the shares as of the close of 17 March.

As the 90 percent threshold has been crossed, Fragrance Group boss James Koh will exercise his right to compulsorily acquire the rest of the shares at his offer price of 12 Singapore cents a share. Read more>>

Thai Tycoon’s Daughter Weighs $244M Singapore REIT IPO for UK Hotel Assets

Thai conglomerate DTGO Corp is weighing a listing of its UK hospitality assets via a Singapore REIT as soon as next year, according to people with knowledge of the matter.

The Bangkok-based firm controlled by Thippaporn Ahriyavraromp, the daughter of billionaire CP Group senior chairman Dhanin Chearavanont, is in talks with potential advisors on an initial public offering of the REIT that could raise £200 million ($244 million), the people said. Read more>>

Global Switch Still in Talks With EQT for a Sale of Control

Chinese-controlled international data centre provider Global Switch is still in talks with private equity firm EQT about a sale, three people with knowledge of the deal told Reuters.

The UK-based company, controlled by Chinese steelmaker Jiangsu Shagang Group, kicked off a sale process in mid-2022, but discussions have yet to materialise. Read more>>

Experion Developers Set to Acquire Blackstone-Backed Dignity Buildcon

Singapore’s real-estate-focused fund Experion Developers received the highest votes for Blackstone-backed Dignity Buildcon in a deal that would imply a 50 percent recovery for lenders originally led by Stanchart Bank, according to an application filed by the resolution professional with the bankruptcy court.

Experion Developers offered INR 450 crore ($54.5 million) for builder Dignity Buildcon, a company engaged in developing commercial towers on Golf Course Extension Road in India’s Gurugram. Read more>>

Value Partners Turns Away From China’s Soured Property Debt

An investor that profited from the aftermath of China’s first dollar bond default by a developer nearly a decade ago is turning its back on the nation’s distressed property debt after losing more than its peers in the past two years.

Value Partners Group, which played a key role in Kaisa Group Holdings’ debt overhaul after its bond blow-up in 2015, has “little appetite” to repeat the same strategy of buying distressed credit to seek returns via restructuring amid the sector’s current downturn, Gordon Ip, the firm’s co-chief investment officer of fixed income, said in a recent interview. Read more>>

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