Evergrande boss Xu Jiayin seems to have suddenly found some help
Investors in Chinese developer bonds (and perhaps a few of the developer bosses) went home happier on Friday as reports emerged that China Evergrande has arranged funds to avoid default on a set of US dollar notes, and that story leads Mingtiandi’s headline roundup today.
While Evergrande’s fears may have subsided a bit, Soho China bosses Pan Shiyi and Zhang Xin may be feeling a bit anxious as the Beijing tax bureau announces that their company is under investigation. Also in the news, Ascendas REIT has extended a streak of US bets by Singapore government-linked property investors with a $154 million warehouse portfolio acquisition in Kansas City, and jilted Evergrande Service suitor Hopson Development signals that it is ready to fight for its takeover of the property management firm after the buyout was abruptly cancelled this week.
Evergrande Said to Transfer $83.5M to Avoid Offshore Bond Default
China Evergrande Group has supplied funds to pay interest on a US dollar bond, a person with direct knowledge of the matter told Reuters on Friday, days before a deadline that would have seen the developer plunge into formal default.
The person said Evergrande remitted $83.5 million to a trustee account at Citibank on Thursday – as earlier reported on Friday by state-backed Securities Times – allowing it to pay all bondholders before the payment grace period ends on Oct. 23. Read more>>
SOHO China Investigated for Tax Evasion
The Chinese government said Friday it is investigating possible tax evasion by a subsidiary of high-profile real estate developer SOHO China Ltd., the target of an aborted takeover attempt this year by Blackstone Group.
The announcement comes amid a flurry of anti-monopoly and other enforcement actions against internet and other private companies as the ruling Communist Party tightens control over the economy. Read more>>
Ascendas REIT Buys Kansas City Warehouses for $154M
Ascendas REIT has proposed the acquisition of 11 logistic properties located in Kansas City, Missouri for S$207.8 million ($154 million) as the CapitaLand sponsored trust makes its first investment in the US market.
The portfolio is 92.6 percent occupied by 27 customers from industries including third-party logistics, wholesale distribution, manufacturing and healthcare. It has a strong retention rate, with current tenants in place for an average of 12.5 years, the REIT’s manager noted. Read more>>
Hopson Declares Deal for Evergrande Services Legally Binding
China Evergrande rival Hopson Development Holdings Limited, which had sought to buy half of the embattled developer’s property management unit, still considers the purchase agreement “legally binding” despite Evergrande rescinding the sale on October 12, according to a company filing with the Hong Kong stock exchange.
“Having sought legal advice, the company considers the agreement legally binding and the acquisition is not subject to the fulfilment of any conditions precedent,” Hopson said in a late filing on Thursday. The filing by Hopson complicates an increasingly messy restructuring saga for Evergrande, the world’s most indebted developer. Read more>>
Singapore’s URA Sweetens Incentives for Golden Mile Redevelopment
Singapore’s Urban Redevelopment Authority (URA) has “refined” the incentives that come alongside the conservation of Golden Mile Complex as it has struggled over the past year to find an investor ready to take on redevelopment of the mixed-use project along Beach Road
The developer will now be able to build a new tower block about 30-stories high, beside the main building. The site boundary may also be extended to include part of the adjacent state land, for more design flexibility. Read more>>
Beike Lays Off Stake as Mainland Housing Market Slows
Ke Holdings, China’s biggest online property agency, also known as Beike Zhaofang, has started laying off staff across the country as the housing sector slides into the doldrums.
A former Beike employee in Chengdu, who chose only to give her last name, Xue, told the Post her manager started to summon her team members one by one in July to talk about the difficulties faced by the company and the wider industry. Read more>>
Chinese Developer Stocks Rebound as Evergrande Averts Default
Chinese developers led stock gains in Shanghai and Hong Kong after regulators said their funding needs are being met, soothing concerns over policies that have made industry giants like China Evergrande Group suffer.
Property shares were the best performers in the two financial hubs, with gauges tracking the sector adding at least 2 per cent on Thursday (Oct 21). Longfor Group Holdings rose 7.6 per cent at the close while China Resources Land added 3.5 per cent, among the top contributors to the Hang Seng Index. Read more>>
Singapore Home Prices Set on Track for 6.7% 2021 Price Gain
The private housing market in Singapore may well end this year on a high note, as the economy continues to recover while the luxury and rental segments could enjoy a boost from foreign demand, analysts said.
This comes as overall prices of private residential properties islandwide clocked their sixth consecutive quarterly growth, undeterred by tightened pandemic-related measures during the July September period. The latest figures for Q3 2021 are also 6.9 per cent above the previous peak in Q3 2013. Read more>>
Singapore Office Rental Index Fell 3.5% in Q3
An office rental index published by Singapore’s Urban Redevelopment Authority late this week indicates that central region fell 3.5 per cent in the third quarter of this year over the previous quarter. This contrasts with the 1.3 per cent quarter-on-quarter rise in Q2 2021.
JLL’s head of research and consultancy for Singapore Tay Huey Ying noted that Singapore’s office leasing market recovery is patchy, and is being led by the good-quality and newer offices. However, poorer-quality and older office buildings are showing rent weakness. 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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