China SCE Group is the latest mainland developer to seek debt relief
Another major mainland developer is going to offshore bond investors to ask for a restructuring of its payment obligations, with that story leading today’s set of real estate headlines from around Asia. Also in the news, Hong Kong slashes land sale plans as the market tumbles and a unit of LVMH is betting on a duty-free megamall in China.
China SCE Seeks Debt Restructuring as $1.8B in Bonds Suspended
China SCE Group said Wednesday that a non-payment on a syndicated loan has triggered a default under its dollar bonds and it would explore a holistic solution to all its debt.
The Xiamen-based company is the latest to join a long list of Chinese developers who have defaulted their offshore debt and begun a restructuring process. But only a handful have announced restructuring terms so far. Read more>>
Hong Kong Cuts Land Sales to Single Plot in Q4
The Hong Kong government will tender only a single parcel of land in the current quarter, which could put its target of HK$85 billion ($10.8 billion) in revenue from land sales for the financial year in doubt as sales have been scaled down because of poor response.
The site earmarked for tender is a 1.9 hectare (4.7 acre) parcel in Cheung Sha in Lantau, New Territories, which is expected to yield 110 housing units, Development Secretary Bernadette Linn said Wednesday. Read more>>
LVMH’s DFS Plans Megamall on China’s Hainan Island
DFS Group, the travel retail arm of luxury conglomerate LVMH, plans to build a major shopping and entertainment complex on China’s tax-free Hainan island in a bid to capture a growing tourism market that has shown resilience to slowdowns.
DFS is making “an unprecedented investment” in the 128,000 square metre (1.3 million square foot) project, which will open by 2026 and feature more than 1,000 luxury brands, including those from LVMH Moet Hennessy Louis Vuitton, the firm said in a statement. Read more>>
Hong Kong Names HKMA’s Clara Chan to Run Sovereign Fund
Clara Chan, the incoming CEO of the new government investment company which will oversee HK$62 billion ($8 billion) of funds, is not new to deal-making challenges, having earned the moniker “goddess” for her role in rescuing the city’s flagship carrier from collapse during the pandemic.
Her successful management of a government-funded, multibillion-dollar bailout of Cathay Pacific during the pandemic is considered the main reason for her being picked for the top job at Hong Kong Investment Corporation, Hong Kong’s version of Singapore’s sovereign wealth fund Temasek, which manages a $278 billion portfolio. Read more>>
China Nears First Major Builder Restructuring With Sunac Hearing
Sunac China Holdings Ltd. won court approval for its multibillion-dollar offshore debt restructuring plan, clearing the last key hurdle for it to become the country’s first major developer to overhaul such liabilities.
Hong Kong Judge Jonathan Harris’ sign-off Thursday sets Sunac apart from major industry peers including China Evergrande Group. still struggling to find a viable debt-restructuring road map as an unprecedented housing crisis unfolds. Sunac shares jumped as much as 12 percent, adding to a sector-best rally in which the stock has soared 140 percent since the start of September. Read more>>
Tenders for Three Singapore Sites to Close on 7 November
The tenders for three government land sales sites will close on 7 November. The sites in Clementi Avenue 1 and Pine Grove (Parcel B) were launched for tender in August, while the site in Lorong 1 Toa Payoh was launched last month. All three sites are on the Confirmed List of the GLS programme for the second half of 2023.
Since all three sites have the same closing tender date, it is inevitable that developers will make comparisons, and some of them might focus their resources on only one selected site. EdgeProp looked at each site individually and provided views on which site will be hotly contested and the possible selling prices of the future developments on these sites. Read more>>
Tokyo Property Prices Squeeze Out Young Professionals
Mie Kawamata dreamed of owning a home where she could tend a small garden and her 1-year-old daughter could play outside, yet still be close enough to commute to central Tokyo.
But after much searching, Kawamata and her husband, who both work in accounting, gave up on the house idea and bought an apartment about a third of the size that she wanted. Read more>>
Singapore REIT Prices Near One-Year Lows as Bond Yields Soar
While the higher-for-longer outlook for interest rates has mauled stock markets, the real estate segment, and in particular the REIT sector, has borne the full force of the sell-down this week.
Many Singapore-listed real estate investment trusts, commonly referred to as S-REITs, are trading close to 52-week lows as US 10- and 30-year government bond yields climbed to their highest levels since 2007 following strong jobs data in the United States. Read more>>
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