Sunac China Holdings’ office in Shanghai
Sunac China Holdings could be on its way to becoming China’s first major developer to work out a debt restructuring deal with lenders, with that story leading today’s roundup of news from around the region. Also making the list is a predicted 15 percent slide in Hong Kong home prices and Cainiao adding Morgan Stanley to the plan for its HKEX IPO.
Sunac China Wins Approval for $10.2B Offshore Debt Restructuring
Sunac China Holdings is taking a step closer to resolving its debt crisis after a court sanctioned its $10.2 billion debt restructuring, giving offshore creditors relief after recent hiccups at China Evergrande Group. Shares of the property developer surged as much as 12 percent.
The High Court in Hong Kong approved the developer’s workout plan at a hearing on Thursday, paving the way for creditors to get their money back after Sunac defaulted on several US dollar denominated bonds and other liabilities. Creditors owning 98.3 percent of the claims acceded to the restructuring terms during a vote last month. Read more>>
Hong Kong Home Prices Could Plunge 15% in 2024
Property prices in Hong Kong could fall by a further 10 to 15 percent in 2024 if interest rates remain high, Societe Generale warns. And UBS says an easing of home purchase curbs by the government will have only a limited impact on the market.
Buying sentiment will be further weakened as interest rates might stay at high levels for a longer period, while developers are expected to offer price cuts amid an increasing number of new homes, which will keep dragging down prices, said SocGen. Read more>>
Alibaba’s Cainiao Adds Morgan Stanley to IPO Bankers
Cainiao, the logistics unit of Alibaba, announced to the Hong Kong stock exchange that it has added Morgan Stanley to the set of bankers managing its upcoming.
The company first filed for the IPO late last month, with sources familiar with the plan indicating that it could raise up to $2 billion. The listing, which still awaits approval from mainiand regulators, is also being managed by Citigroup, Citic Securities and JPMorgan. Read more>>
Sweden’s EQT Plans to Invest $3B in Japan
Sweden’s EQT AB expects to allocate as much as $3 billion in Japan from its $11 billion Asia private equity fund in coming years, betting that companies will take more steps to benefit shareholders.
The Stockholm-based alternative investment management firm considers Japan a “top priority” for its Asia business, said the firm’s chief executive officer, Christian Sinding, in an interview in Tokyo. EQT oversees a total 224 billion euros ($236 billion) in assets and was ranked by Private Equity International as the world’s third-biggest PE firm in terms of capital raised. Read more>>
Singapore Plans to Develop More Homes in Urban Core Locations
Among other things, Singaporeans can look forward to new homes being built in more central locations, said the Urban Redevelopment Authority as it launched the Draft Master Plan 2025 public engagement exercise on Thursday.
The engagement with Singaporeans and stakeholders over the next two years will culminate in a presentation of the DMP25, which will provide details on land use and development plans for Singapore over the next 10 to 15 years. Read more>>
Embassy Office Parks REIT Inks Lease With SMFG Unit in Mumbai
In a regulatory filing, Embassy Office Parks REIT informed that SMFG India Credit has signed a lease agreement for 194,000 square feet (18,023 square metres) at the Embassy 247 project in Mumbai.
The project Embassy 247, is a premium office park, with a total area of 1.18 million square feet at Vikhroli. SMFG India Credit Co Ltd (formerly Fullerton India Credit Co Ltd) is registered as an NBFC-Investment and Credit Company with the RBI, and a member of Sumitomo Mitsui Financial Group. Read more>>
Revamped ESR-Logos REIT Asset Now Half-Leased
ESR-Logos REIT’s high-specifications industrial building at 7002 Ang Mo Kio Avenue 5 has secured an occupancy of about 50 percent, upon achieving its temporary occupation permit.
This follows the completion of the property’s asset-enhancement initiative, which involved its development into a multi-tenanted high-specifications building with a gross floor area of 25,000 square metres (269,098 square feet). Read more>>
Link Hong Kong Tenants See Sales Growth Slowing
Link REIT said the overall retail sales of its tenants in Hong Kong experienced a year-on-year growth of 4.4 percent for the quarter of April to June.
The retail sales growth in the first quarter of fiscal year 2023-24 indicates a slight deceleration compared with the 6.2 percent annual growth recorded. Read more>>
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