China Fortune Land Development’s headquarters in Beijing’s Chaoyang district.
In our latest roundup of regional news headlines, a mainland Chinese developer becomes the first victim of strict deleveraging rules, JD Logistics is reportedly targeting a $2 billion IPO this month, and a tycoon’s daughter snaps up control of Hong Kong’s oldest Chinese-language newspaper.
China Fortune Land Defaults on $813M Debt
Concerns about rising defaults in China’s property sector grew as a major developer became the first casualty of strict deleveraging rules recently introduced by the government, missing debt payments.
China Fortune Land Development, ranked 43rd by sales nationally last year, said it had overdue loans of RMB 5.26 billion ($813.37 million) because of a liquidity shortage. Fitch Ratings downgraded the developer on Wednesday to reflect the “extremely high risk” of buying its debt. Read more>>
JD Logistics Expected to File for $2B HK IPO This Month
JD Logistics, the distribution arm of Chinese e-commerce giant JD.com, is planning to submit an initial public offering application to the Hong Kong stock exchange as soon as this month, according to reports.
The logistics business is targeting a valuation of $40 billion and plans to start trading in the second quarter, according to Refinitiv publication IFR and Chinese news outlet The Paper. The IPO could raise between $2 billion and $3 billion, Reuters previously reported. Read more>>
Kaisa’s Kwok Family Buys HK’s Sing Tao Newspaper for $48M
Kwok Hiu Ting, the 26-year-old daughter of Kaisa Group’s founder, has bought control of the publisher of Hong Kong’s oldest Chinese-language newspaper, as the real estate developer makes its push into the city’s media business.
Kwok, who agreed to pay HK$369.8 million ($47.7 million) last week to buy 28 percent of Sing Tao News Corporation from the company’s chairman, Charles Ho, said she wants the newspaper to invest more in mobile media, according to a statement. Read more>>
Blackstone Enters Exclusive Talks for Fancl Asia Unit
Blackstone Group is in exclusive talks to acquire Japanese skincare brand Fancl’s Asia business outside its home country, people with knowledge of the matter said.
CMC Holdings is working with adviser Morgan Stanley and is seeking more than $600 million for the business, Bloomberg News has reported. The Hong Kong-based company aims to conclude a deal in the first quarter. Read more>>
Global Funds Chase Retail Assets in HK Housing Estates
Overseas institutional investors are focusing on acquiring retail properties in Hong Kong’s major housing estates, as they expect businesses catering to local communities to stay resilient compared to the uncertain outlook for retailers in the tourist belts, according to property consultants.
“Smart money from the US and Middle Eastern sovereign wealth funds are seriously looking for shops in major housing estates after seeing annual investment yield increase to a 10-year high of 3 to 4 percent from the previous 1 to 2 percent,” said Oscar Chan, head of capital markets at JLL in Hong Kong. Shop prices and rents could rebound 5 to 10 percent this year after dropping 70 percent from a peak level in 2014, he added. Read more>>
CapitaLand, CDL Announce JV Project in Northeast Singapore
CapitaLand and City Developments Ltd have combined their forces on a real estate project in Singapore’s Sengkang area called Sengkang Grand Residences.
Situated atop Buangkok MRT station in the northeast region of the city-state, the new development aims to serve as a hub for the Buangkong precinct. Sengkang Grand Residences touts a prime location with ample shopping and transport options nearby. Read more>>
Hong Kong’s Outlying Islands Gain Favour Amid Pandemic
Houses on Hong Kong’s outlying islands, which are 40 percent cheaper than their urban counterparts, are enjoying a surge in popularity as a shift to home-working during the coronavirus pandemic changes the priorities of potential buyers.
The number of homes changing hands on islands like Lantau, Tung Chung and Lamma has shot up by more than a quarter as Hongkongers increasingly look for tranquillity and bigger spaces now that convenience and an easy commute are less important, say agents.
The Islands district saw a 28.5 percent leap in transactions in the secondary housing market last year to 1,699, according to Midland Realty. That was the fourth-largest increase among the 18 districts, up from 10th in 2019. Read more>>
Sun Hung Kai Anticipates 8% Growth in CNY Shopping
The Lunar New Year remains one of the most important festivals for Hongkongers despite the onslaught of the pandemic.
As the festive celebration builds up, the twelve major shopping malls managed by Sun Hung Kai Properties — including East Point City, Mikiki and PopWalk — are launching a Chinese New Year Redemption Programme to usher in the Year of the Ox. Read more>>
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