Yang Huiyan’s Country Garden Real Estate has taken on another $600M in debt
At the top of today’s real estate news is debt, and how China’s government is giving the country’s developers access to bond financing after an extended shutdown. Also in the news, Wanda’s US cinema subsidiary declares its financial independence from its trouble parent, and Fosun tries to refinance the former One Chase Manhattan Plaza. Read on for all these stories and more.
Country Garden Sells $600M in Offshore Bonds
Country Garden Holdings sold US$600 million of five-year bonds in Hong Kong on Wednesday, the latest in a recent string of issuances that signal a relaxation of policy curbs to raise funds by Chinese property developers.
Country Garden said the bonds would pay a coupon of 4.74 per cent and would have an option for the company to redeem prior to the maturity. Read more>>
China Reopens Offshore and Onshore Bond Pipelines
China has relaxed curbs on property firms seeking funds in offshore and onshore bond markets, people familiar with the matter say, a move that could allow fresh capital into a sector that has struggled to refinance after a slew of tightening measures.
Since late last year, regulators have made it harder for developers to sell onshore corporate bonds in a bid to help cool an overheating property market. Separately, the National Development and Reform Commission (NDRC) stopped granting new quotas for offshore dollar bond issuance in the second quarter of this year. Read more>>
AMC Says It Doesn’t Need Wanda’s Cash
AMC Entertainment, the U.S. cinema operator owned by Dalian Wanda Group, said it hasn’t depended on its Chinese parent to finance a recent string of acquisitions, following reports that Beijing was cutting off Wanda’s access to funds for such buying.
AMC was purchased by Wanda in 2012 for $2.6 billion, and since then has become the Chinese company’s vehicle for a string of similar acquisitions of other cinema operators collectively worth $3.5 billion in the U.S. and Europe. Those purchases, combined with Wanda’s leading position in its home China market, have made the Chinese company the world’s largest cinema operator. Read more>>
Fosun Seeking $800M in Financing for 28 Liberty in NYC
Fosun International is seeking $800 million in floating rate financing for the fee simple interest it owns at 28 Liberty Street, a source with knowledge of the request told Commercial Observer.
The sponsor is looking for a five- to seven-year term on a loan with 55 percent loan-to-value, according to an offering memorandum provided by the source. Fosun has retained Tom Traynor and James Millon from CBRE to broker the transaction. Read more>>
HK’s Tall Buildings Carry the World’s Highest Prices Says Knight Frank
Skyscrapers in Hong Kong are the world’s most expensive commercial real estate assets, according to Knight Frank LLP.
Hong Kong skyscrapers are worth $8,000 per square foot, about 60 percent more than Tokyo’s tall towers, according to a Knight Frank report released Wednesday. The analysis used rents and prime yields to value office towers as of the fourth quarter of 2016.
“Capital values of Asia’s tallest towers showed significant divergence with Hong Kong sitting at the top, and Mumbai at the bottom of the global rankings,” Nicholas Holt, head of research for Asia Pacific at Knight Frank, said in the report. Read more>>
Shares in SG’s Rowsley Nearly Double on News of Medical Merger
Rowsley shares have skyrocketed – nearly doubling – after controlling shareholder and billionaire Peter Lim unveiled plans to inject medical assets said to be worth up to $1.9 billion into the firm.
The counter shot up 6.8 cents, or 93.15 per cent, to 14.1 cents yesterday on news that Mr Lim will pour his 100 per cent stake in private firm Thomson Medical and 70.36 per cent stake in Malaysia-listed TMC Life Sciences into Rowsley. Read more>>
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