A Jingrui project in Beijing’s Dongzhimen area
In today’s roundup of regional news headlines, troubled developer Jingrui Holdings defaults on an offshore bond that came due this week, and Singapore sovereign fund GIC’s joint venture with Dream Industrial REIT completes its $4.4 billion acquisition of Summit REIT.
Jingrui Defaults on $350M Bond as Payment Suspension Continues
Mainland developer Jingrui Holdings has again defaulted on offshore bonds according to a statement to the Hong Kong stock exchange after the company failed to make payment on the outstanding principal amount of $350 million and accrued interest of $12.7 million for its 14.5 percent senior notes which matured on 19 February.
In its statement, which follows earlier defaults on offshore bonds last year, the Shanghai-based builder said it is in the process of considering a potential holistic restructuring of all dollar-denominated senior notes and has suspended the payments while it works through that process. Read more>>
GIC and Dream Industrial REIT Complete Summit REIT Acquisition
Singaporean sovereign fund GIC and Dream Industrial REIT on Friday announced the closing of their previously announced acquisition of Summit Industrial Income REIT in an all-cash transaction valued at C$5.9 billion ($4.4 billion).
With the completion of the deal, Summit units are expected to be delisted from the Toronto Stock Exchange at the close of business on or about 21 February. Read more>>
China Quietly Pivots From Land Sale Limits to Stem Housing Slump
China is quietly moving away from rules restricting land sales by local governments, its latest effort to revive the housing market and boost income for debt-laden cities.
Authorities introduced the rules in February 2021, limiting key cities to just three land auctions a year in a so-called centralised process that sought to curtail speculative bidding by developers during China’s property boom days. Read more>>
Funds Raised by China’s Private Property Firms Hit 7-Year Low in 2022
Fundraising by private Chinese property developers plummeted to a seven-year low last year, according to mainland Chinese real estate consultancy CRIC.
The developers raised RMB 227.1 billion ($33.08 billion) in 2022, a decline of 66 percent from the previous year, the consultancy said in a report on Sunday. Read more>>
Chinese Cities Cut Mortgage Rates for First-Time Buyers to Lowest Since 2019
The average mortgage rate for a first-time buyer in 103 mainland Chinese cities fell to 4.04 percent in February, the lowest level since 2019, according to the Beike Research Institute.
The new low, down 6 basis points from a month ago, indicates that banks are falling in line with government measures aimed at stimulating demand in the beleaguered housing market. The rate is down by 143 basis points from a year ago. Read more>>
Hong Kong Tycoon Lau Weighing Logistics Firm EV Cargo Stake Sale
Cargo Services Group and JL Enterprises Holdings, two logistics firms founded by Hong Kong tycoon John Lau, are planning to sell their stakes in EV Cargo.
Cargo Services, a supply chain services provider, and JL Enterprises, a family office investing in freight forwarding and logistics, will completely divest their entire investment in Hong Kong-based EV Cargo, according to a statement confirming a Bloomberg News report. Read more>>
Singapore’s Cathay Mall to Close for Revamp From August
Come August, Singapore’s The Cathay mall will no longer be open to the public as it closes for a revamp, a spokesperson said Friday.
Works are set to begin in August and are expected to span one and a half years. The mall targets reopening in late 2024, ahead of Christmas, said the spokesperson, adding that all tenants of the mall have been informed and will move out by 18 August. Read more>>
Godrej Properties Buys Former Film Star’s Mumbai Bungalow
Once the location of all-night film story sessions and the venue of Rishi Kapoor’s marriage to Neetu Singh, Godrej Properties has bought the iconic bungalow of legendary film actor and director Raj Kapoor.
Its more famous cousin RK Studios was taken over by Godrej Properties in May 2019. This two-acre property in Mumbai’s Chembur area has seen the shooting of some of Bollywood’s most memorable films such as “Shri 420” and “Bobby”. On the basis of local property rates, it is estimated that the bungalow was sold for about INR 1 billion ($12 million). Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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