China Caps Bank Lending to Developers and More Asia Real Estate Headlines

Mainland China took another step today to clamp down on credit to real estate developers as the central government rolled out set limits on bank lending to the industry.

Also in the news, unitholders in Singapore’s troubled Eagle Hospitality Trust rejected a proposal to have a unit of SC Capital take over management of the hotel REIT and a former WeWork exec has won some cash to fund his Korean real estate listings platform.

China Sets Limits on Bank Loans to Developers From 1 Jan

China’s regulators will impose caps on banks’ lending to the real estate sector for the first time, in their latest efforts to prevent systematic risks after a series of property curbs in recent years did little to damp buyer enthusiasm.

Under the new mechanism taking effect on Jan 1, 2021, loans to developers will be capped at 40% for the nation’s largest state-owned lenders while banks’ mortgage lending should be no more than 32.5% of their outstanding credit, the People’s Bank of China and the China Banking and Insurance Regulatory Commission said in a joint statement on Thursday. Those exceeding the cap will have a grace period of up to four years to meet the requirements. Read more>>

Singapore’s Eagle Hospitality Trust in Limbo After Replacement Manager Rejected

After the proposed change of a manager for the beleaguered Eagle Hospitality Trust (EHT) failed to get the green light from securityholders on Wednesday, there is uncertainty about the next step forward.

Securityholders of EHT, which is a stapled trust comprising Eagle Hospitality Real Estate Investment Trust (EH-Reit) and the currently dormant Eagle Hospitality Business Trust (EH-BT), had voted on four interconditional resolutions at an extraordinary general meeting (EGM). Read more>>

Former Boss of WeWork Labs Lands $4.1M for Korean Proptech Startup

Dongnae, a real estate listings platform founded by former WeWork director Matthew Shampine, has announced the close of a $4.1 million seed round, led by Flybridge and MetaProp, with participation by Goodwater Capital, Maple VC and a variety of strategic angel investors in both Korea and the U.S. This brings Dongnae’s total funding to $4.8 million.

Dongnae is very similar to Redfin in the U.S., giving buyers and renters a centralized place to find their new home. For now, the startup only represents the buyer/renter side, partnering with the thousands of brokers in Korea to essentially build out the country’s first true MLS (multiple listing system). Read more>>

Shanghai-based CIFI Lands $362M in Debt Financing

CIFI Holdings (Group) Co. Ltd. has signed syndicated loan facility agreements with several banks and financial institutions in Hong Kong, according to an announcement by the Hong Kong-listed developer.

The signed loan facilities are syndicated bank loans with an aggregate amount of US$362 million, comprising a $145 million 3.5-year certain term loan, and a HK$1.69 billion ($217 million) 3.5-year certain term loan. Proceeds of the loans will be used for re-financing of the Group’s existing debts and/or general working capital. Read more>>

Mumbai Registers December Home-Buying Surge

Property registrations in Mumbai, India’s biggest real estate market, registered a surge in December as a rush ensued among homebuyers amid all-time low home loan rates, attractive price discounts and reduction in stamp duty charges.

Registration of residential sales in the country’s financial capital rose 192% from a year ago in December so far to 18,794 deals. Reputed developers witnessed heightened sales in 3QFY21 with housing sales in the country’s biggest property market, Mumbai, witnessing outstanding growth in registration in 3QFY21. Key factors being the stamp duty reduction till December and developers push for sales linking other incentives till December. Read more>>

Technology to Reshape India Warehouse Market in 2021 Says Embassy Group

Technology, especially robotic automation, will be a game-changer in the warehousing and logistics industry in 2021. Inventory management, safety and security and processing orders will be assisted by technology for an efficient product cycle and will allow businesses to manage warehouses remotely, writes Aditya Virwani, chief operating officer, Embassy Group.

The Indian warehousing sector is largely dependent on various sub-sectors for its development. Retail, e-commerce, logistics and technology are the major driving force for the growth in warehousing. In 2020, however, the pandemic became another reason that catalyzed this transformation and allowed businesses to explore more opportunities in the domain. Read more>>

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