A pioneer of Chinese developer defaults is said to be warning that creditors would lose 95 percent of their money if the company is liquidated, with that story leading today’s collection of real estate headlines from around the region. Also in the news, an India data centre joint venture announces big plans for Chennai and a Singapore residential site sells for a record high price.
Struggling Chinese developer Kaisa Group said creditors would get less than 5 percent of their money back if it is forced into liquidation, a lawyer for one creditor who is suing the company told a Hong Kong court on Tuesday.
Broad Peak Investment filed a winding-up petition against Kaisa in July in the Hong Kong High Court in relation to non-payment of onshore bonds worth RMB 170 million ($24 million). Many other Chinese developers are also facing winding-up petitions filed after the sector plunged into a debt crisis in 2021, resulting in many firms defaulting on their debt obligations. So far only a couple have been ordered to wind up by overseas courts. Read more>>
The joint venture between Indian data centre provider Web Werks and NYSE-listed Iron Mountain Data Centres has acquired a four acre (1.6 hectare) parcel of land in Chennai to house two new data centres, addressing the growing customer demand in the region. The JV will invest over INR 18 billion ($216 million) to build the Chennai data centres, which are expected to be commissioned by mid-2025.
The two data centres will be built to Tier III standards and will support 36 megawatts of IT load, further expanding the company’s rapidly growing pan-India footprint. This expansion will support more than 90MW of new development across key markets such as Pune, Bengaluru, Noida, Mumbai and Hyderabad. Read more>>
A Sim Lian Group joint venture has bagged an executive condominium site in Tampines for S$543.28 million ($398 million). This translates to S$721 per square foot per plot ratio.
Sim Lian’s winning bid was about 2.5 percent higher than the S$703 per square foot paid for an EC site in Plantation Close, which was awarded last month to Hoi Hup Realty and Sunway Developments. The Plantation Close tender had marked a new high for EC land sales, with nine bidders jumping in. Read more>>
US credit rating agency Equifax is now the anchor tenant for Keppel REIT’s new Blue & William office development located in North Sydney, the trust’s manager said Tuesday.
Equifax occupies more than 4,350 square metres (46,823 square feet) across the fifth and seventh levels of the property, which is a third of the building’s net lettable area. It moved from two separate offices in the North Sydney area. Read more>>
Hong Kong developers’ shares may not be much of a bargain even after suffering a $56 billion rout, as the correction in the world’s most unaffordable housing market is still far from over.
A gauge tracking the city’s developers has seen its market value shrink by over a fourth since late January, the worst-performing sector on the MSCI Hong Kong Index. Investors are bracing for further declines as the housing market is struggling with elevated borrowing costs and the threat of a further home-price drop. Read more>>
The Hanoi Stock Exchange’s report on the financial health of many businesses running resorts in Vietnam shows their tragic situation amid low demand and high financial costs.
Paradise Bay Resort Co Ltd has reported a loss of VND 832 billion ($34 million) for 2022, which was greater than the VND 701 billion lost in 2021, when tourism was seriously affected by COVID-19. By the end of 2022, its stockholder equity had fallen to minus VND 1.575 trillion. Read more>>
Banks in Singapore are taking longer than usual to perform due diligence on clients and closing accounts in some cases, sources said, as procedures tighten after the financial hub’s biggest money-laundering scandal, which involved $2.8 billion in assets.
Banks such as OCBC, Citigroup and UOB are demanding more documents than usual in some cases to verify sources of wealth, two of the sources said. Read more>>
Experion Developers, the Indian subsidiary of Experion Holdings Singapore, has successfully secured two significant land parcels in Gurugram through auctions conducted by Haryana Shahari Vikas Pradhikaran, the state’s urban development authority.
The acquisitions include a six acre (2.4 hectare) plot in Sector 53, valued at approximately INR 4 billion ($48 million), and a two acre plot in Sector 56, which was acquired for INR 1.2 billion by TREVOC (The Real Estate Venture of Chawlas), a prominent player in the Spaze group. Read more>>