Country Garden Wins More Time for $14B Restructuring and More Asia Real Estate Headlines

A court gives China’s Country Garden an extension to finalise its $14 billion debt workout, with that story leading today’s headline roundup. Also in the news, Korean prosecutors target financier Michael ByungJu Kim and Li Ka-shing’s CK Hutchison increases its Australia farmland holdings.

China’s Country Garden Wins More Time for $14B Restructuring

Chinese developer Country Garden Holdings was given more time by a Hong Kong court to work on its $14.1 billion offshore debt restructuring after amassing additional creditor support for the plan.

High Court Judge Linda Chan adjourned a liquidation hearing against the company to 11 August, taking into consideration the amount of the debt and number of creditors involved, and said she would like to see some “useful and good progress” in the next hearing. Read more>>

Head of Korea’s MBK Partners Targeted in Government Probe

Michael ByungJu Kim, one of Asia’s most prominent private equity tycoons, built his MBK Partners into a regional powerhouse with marquee deals and tens of billions in assets under management.

Now, a controversial bet on Homeplus, once the nation’s second-largest supermarket chain, has returned to haunt him. Prosecutors are probing whether Homeplus — with MBKP’s knowledge — issued short-term debt despite being aware that the retailer was veering towards a credit downgrade. MBKP has denied any wrongdoing. Read more>>

Hong Kong’s CK Hutchison Expands Australia Farmland Holdings

Hong Kong’s CK Hutchison has forged into the carbon market, acquiring a vast Western Australian landholding earmarked for a “regenerative agriculture” project.

The most recent addition to CK Group’s portfolio in Australia is its acquisition of a pastoral lease and rights of over 350,000 hectares (864,869 acres) of agricultural land in West Australia. Flagged in its annual report last month, the land is described as “an area larger than three times the size of Hong Kong”, dedicated to regenerative agriculture and carbon sequestration, with a project approved by the Australian Clean Energy Regulator. Read more>>

Vietnam’s Novaland Defaults on Bond Obligations

Novaland Group, a major player in Vietnam’s real estate market, has announced a significant delay in the repayment of over VND 645.1 billion ($25 million) in principal for its bond issuance, specifically for the NVLH2123014 bond series.

The payment was originally due on 18 May, but the company has only managed to disburse VND 6.8 billion to date. The company attributed the delay to its inability to secure necessary funds, which has hindered its capacity to fulfil its debt obligations. Read more>>

Shanghai Luxury Projects Sell Out as Broader China Home Sector Struggles

Shanghai’s high-end property market continues to buck the national downturn, with deep-pocketed buyers pouring capital into top-tier homes that are seen as value-preserving assets despite economic uncertainty, analysts said.

Buyers snapped up all 64 units offered at One Central Park, a luxury development in the city’s core Huangpu district, on Wednesday, spending RMB 4 billion ($556 million). Read more>>

Singapore REIT Sector Faces Challenges Beyond Interest Rates

The trend of REITs being taken private is unsurprising as the sector is facing some challenges, but investment opportunities are still there for those “willing to look beyond the surface”, according to Singapore Exchange head of equities Ng Yao Loong.

Speaking at Saturday’s opening of the REITs Symposium at the Suntec Convention Centre, Ng said REITs as an asset class have a “lower correlation with macro uncertainties as compared to equities and other asset classes”, making the sector a compelling alternative in market volatility. “But the Singapore REIT sector is facing some challenges, and not just from the higher-for-longer interest rate environment,” he said. Read more>>

Middle Eastern Markets Seen Attracting Chinese Investors

The property market in the Middle East, particularly in the United Arab Emirates cities of Dubai and Abu Dhabi, is attracting more interest and capital from Hong Kong and mainland China.

Hong Kong’s Gaw Capital spent more than $150 million on a residential building in Abu Dhabi, the capital, two weeks ago. And last week Black Spade Capital, the family office of casino billionaire Lawrence Ho, invested in IFCX, a Hong Kong-based real estate brokerage focused on real estate in markets including the Middle East. Read more>>

Surge in Japanese Bond Yields Draws in Investors

Borrowers are finding a silver lining in this week’s surge in Japanese bond yields, with higher rates attracting credit investors.

At least 10 issuers, including drinks makers Kirin Holdings and Suntory Holdings, as well as real estate giant Mitsui Fudosan and the Republic of Indonesia, rushed to the market Friday. They priced more than JPY 530 billion ($3.7 billion) in bonds, with maturities of mainly 10 years or less, in one of the busiest days this year. Read more>>

Vietnam’s Sun Group Asks Govt to Fast-Track Binh Duong Projects

Vietnamese developer Sun Group on Thursday asked Binh Duong province authorities for more support to speed up its two major urban area projects.

The projects are the Bac An Tay Urban Area and the Dong An Tay Urban Area in Ben Cat town of Binh Duong, Sun Group chairman Dang Minh Truong said at a working session with Vo Van Minh, chairman of the provincial People’s Committee. In response, Minh requested concerned officials to focus on resolving obstacles for the projects so they can be implemented in line with approved master plans. Read more>>

Chinese Billionaire Plans to Transform Hudson’s Bay Stores in Canada

A British Columbia-based billionaire mall owner has signed a purchase agreement with Hudson’s Bay for 28 store leases in three provinces and plans to transform them into “modern department stores”.

The beleaguered retailer signed a deal with Ruby Liu Commercial Investment Corp, a firm indirectly controlled by Weihong Liu — chairwoman of shopping mall owner and operator Central Walk — who also goes by Ruby Liu, according to a news release from Hudson’s Bay on Friday. Read more>>

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