Soon after announcing a spin-off plan that could bring in $3 billion, China Evergrande Real Estate released a profit warning on Monday that could keep the finances of the indebted developer on edge after net income dropped to just RMB 14.7 billion in the first six months of 2020.
Singapore has more encouraging news with home sales and apartment rents on the rise in July, after a challenging first half of the year, and GLP-linked warehouse developer Indospace is competing with ESR to buy out an industrial JV between Warburg Pincus and India’s Embassy Group.
China Evergrande Group shares plunged the most in five months after the country’s second-largest listed developer said that the novel coronavirus pandemic and subsequent discounting to kickstart apartment sales slashed earnings.
The stock slumped as much as 13 per cent in early Hong Kong trading, the biggest intraday decline since March 23. It closed at HK$19.84 or 11.4 per cent down. Read more>>
New home sales continued to rise for a third straight month amid a worsening economic outlook, with developers selling 1,080 non-landed private homes in July, up 8.2 per cent from 998 private homes in June. But year on year, sales were down 8.4 per cent from 1,179.
More new private homes were launched ahead of the Hungry Ghost month, which starts on Aug 19. There were 869 private homes launched in July, up nearly 46 per cent from 597 units in June, but were down 4.6 per cent from 911 a year ago. Read more>>
The rental market ran hot and cold last month with HDB flats and private apartments recording their first monthly increases after four months of decline, but leasings fell as the pandemic continued to impact travel and jobs.
HDB rents rose 1.4 per cent last month from June, a bigger rate of increase than the 0.4 per cent rise for private condominiums and apartments, SRX data showed yesterday. Read more>>
Industrial and warehousing parks developer Indospace has emerged as the frontrunner to acquire Bengaluru-based Embassy Industrial Parks at an enterprise value of Rs 1,800 crore.
Indospace, backed by PE fund Everstone Capital and CPPIB, signed an exclusivity agreement last week and engaged in exclusive talks for acquiring the assets, said two people aware of the developments. Read more>>
Indiabulls Real Estate and Embassy Group will finalise the valuation and swap ratio for their proposed merger on Tuesday. In separate meetings, the two real estate developers will also decide the time frame and exact structure of the exercise, which will see Embassy Group merging real estate assets spread over 62 million sq ft with listed company Indiabulls Real Estate.
Under the proposed merger plan, Embassy Group’s real estate assets will be merged with the Mumbai-based company’s 31 million sq ft of assets under development. Read more>>
China’s real estate sector may have peaked and will likely become a drag on growth during economic shocks such as the current pandemic, a recent report co-authored by Harvard University’s Kenneth Rogoff argues
The decades-long housing boom has causes both prices and supply to be misaligned and the market may have hit “a potentially precarious peak,” according to the working paper published by Rogoff and Yuan Yuanchen of Tsinghua University in Beijing. Read more>>