The Marina South residential plot drew a top bid of S$1B from Kingsford Group (Image: URA)
In today’s roundup of regional news headlines, Singapore’s latest land tenders draw cautious bids — including a lowball offer by a company linked to Li Ka-shing’s CK Asset Holdings — and mainland giant Dalian Wanda reportedly rustles up enough cash to repay a $275 million loan coming due this week. Also making the list, Hong Kong home prices fall for the first time this year while Singapore home price growth starts to slow.
Latest Singapore Land Sales Show Developer Caution on Big Sites
Singapore state land tender closings for three 99-year leasehold sites on Tuesday reflected cautious sentiment among developers for larger parcels and the supersized risks that come with them. These include cooling measures, a reduction in saleable area for non-landed residential projects due to changes in definitions of floor area, and continuing high interest rates and construction costs.
On offer at Tuesday’s tenders were the maiden residential plot in Marina South, as well as a commercial and residential site in Tampines Avenue 11 that will be integrated with a bus interchange, community club, hawker centre and the future Tampines North MRT station on the Cross Island Line. The third offering was an executive condo site in Plantation Close between two future MRT stations on the Jurong Region Line. Read more>>
Wanda Has Cash Ready to Repay $275 Million Loan, Sources Say
Chinese conglomerate Dalian Wanda Group has prepared enough cash to repay a $275 million private debt facility that matures Wednesday, according to people familiar with the matter.
The company is finalising a new 364-day debt facility of slightly less than $275 million arranged by the same bank as the previous loan — Credit Suisse Group — said one of the people, who asked not to be identified discussing private matters. The fresh financing will be backed by Wanda’s equity in Hollywood film studio Legendary Entertainment LLC, the person added. Read more>>
Hong Kong Second-Hand Home Prices Fall for First Time Since December
Prices of lived-in homes in Hong Kong fell for the first time since December, as looming rate increases cast a long shadow over a growing property oversupply that is being exacerbated by newly built flats coming onto the market.
The official pre-owned home price index fell 0.7 percent from April to 351 in May, the lowest since February, according to data from the Rating and Valuation Department. On an annual basis, the index slumped 8.9 percent. Read more>>
Wanda Bonds Jump After Huarong Takes Over Investment JV
China Huarong Asset Management took over a joint venture with Dalian Wanda Group via capital injection, sending the Chinese property firm’s dollar bonds higher amid its efforts to shore up liquidity.
The state-controlled bad-debt manager injected RMB 1.67 billion ($232 million) worth of debt assets into a vehicle called Wuhan Huadajiuhao Innovation Investment, three months after the entity was set up, according to corporate filings. The JV owns a real estate subsidiary that has purchased land parcels in the city of Wuhan, government documents show. Read more>>
China’s Funding Drought for Developers Ending as Trickle of Capital Arrives
Four listed builders in China have received approvals for their equity financing plans worth a combined RMB 19.9 billion ($2.75 billion), indicating that Beijing’s “third arrow” of policy support for property developers is finally in the works seven months after it was introduced.
Shanghai-listed Poly Development and Greattown, as well as Shenzhen-listed CCCG Real Estate and Hubei Fuxing Science and Technology have been approved by the China Securities Regulatory Commission to sell shares and raise capital for their property projects, according to filings made Wednesday. Read more>>
Singapore Condo Resale Prices, Volumes Rise at Slower Pace
Singapore condo rental prices and volumes continued to rise in May, albeit at a slower pace, flash estimates from SRX and 99.co indicated.
Many owners and investors also sold their condos before receiving their official certificate of completion during the month, the data, released Tuesday, showed. Overall resale prices rose 0.9 percent from April and were up 9.2 percent year-on-year. Read more>>
JD.com to Open Grocery Stores by Merging 7Fresh, Other Units
Chinese e-commerce giant JD.com plans to open retail grocery stores through the merger of its 7Fresh supermarket unit with other business lines such as its group-buying arm Pinpin, a company spokesperson said Monday.
Beyond opening actual stores, the new division will explore innovative retail models, the spokesperson told Reuters, confirming reports in local media. Read more>>
Indian Authorities Arrest Supertech Chairman in Money-Laundering Case
India’s Enforcement Directorate on Tuesday arrested real estate company Supertech’s chairman and owner, R K Arora, on money-laundering charges, official sources said.
Arora was taken into custody under the criminal sections of the Prevention of Money Laundering Act, following a third round of questioning at the federal agency’s office, they said. He is expected to be produced before a special PMLA court on Wednesday, with the ED to seek his further remand. Read more>>
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