EC World REIT is proposing to divest its indirect interest in Bei Gang Logistics north of Hangzhou
In today’s roundup of regional news headlines, SGX-listed EC World REIT looks to sell some Hangzhou industrial assets to raise cash for debt repayment, China’s new home prices continue to fall amid a mortgage boycott, and global fund managers place bets on Asia’s private debt sector.
EC World REIT Proposes $280M Asset Sale for Loan Repayment
Singapore-listed EC World REIT is proposing to divest its indirect interests in Bei Gang Logistics and Chongxian Port Logistics at the agreed property values of RMB 1.2 billion ($170 million) and RMB 820 million respectively, each representing a premium of 2.9 percent to their independent valuations.
Proceeds from the transaction will be mainly used to finance the repayment of existing loans, the REIT’s manager said Monday in a bourse filing. Read more>>
China New Home Prices Fall for 3rd Straight Month: Private Survey
New home prices in China fell for the third straight month in September as a mortgage boycott across the country and a slowing economy discouraged potential homebuyers, a private survey showed on Saturday.
China’s property market crisis worsened this summer, with official data showing home prices, sales and investment all falling in August, adding pressure on the world’s second-largest economy, which barely grew in the second quarter. Read more>>
Blackstone, KKR Defy Global Private Debt Slump With Bets on Asia
Direct-lending behemoths from Blackstone to KKR are looking to expand in Asia’s fledgling private debt sector, targeting firms shut out of volatile public markets but healthy enough to survive surging inflation and a potential recession.
Bucking an industry-wide slowdown, some of these alternative asset powerhouses are building up their presence in the region at a brisk pace. Blackstone is targeting a tenfold increase in private credit assets to at least $5 billion “in the near term”, while Apollo Global Management and KKR both recently launched their first Asia-oriented private credit funds worth $1.25 billion and $1.1 billion, respectively. Read more>>
China to Cut Provident Fund Loan Interest Rate for First-Time Homebuyers
China’s central bank said Friday that it would lower the interest rate for housing provident fund loans by 0.15 percentage points for first-time homebuyers from 1 October, suggesting an urgency for policymakers to prop up the embattled property market.
The move followed the finance ministry’s tax refunding policy and the central bank and banking regulator’s relaxation of a floor on mortgage rates for some first-time homebuyers, part of an effort by authorities to stabilise the ailing housing market. China last adjusted the housing provident fund interest rate in 2015. Read more>>
Chinese Property Stocks Watched as Banks Urged to Offer Funding
Chinese developer stocks and bonds rallied after a report that the nation’s financial regulators told the biggest state-owned banks to provide financing worth at least $85 billion to the battered property sector.
A Bloomberg Intelligence gauge of real estate stocks jumped as much as 2.5 percent, led by KWG Group Holdings and Agile Group Holdings, each up more than 9 percent in Hong Kong. Shares of Country Garden Holdings also gained more than 6 percent. Read more>>
Office Leasing Up 97% January-September in 6 Indian Cities: Colliers
Gross leasing of office space nearly doubled to 40.6 million square feet (over 3.7 million square metres) during January-September across six major Indian cities on pent-up demand driven largely by technology and co-working firms, according to Colliers.
The absorption of office space stood at 20.6 million square feet in the year-ago period across Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune. Read more>>
New World Expects HK Housing Market to Feel Squeeze From Rising Rates
Hong Kong’s housing market will be under pressure in the short term from rising interest rates globally, the CEO of New World Development said Friday after the builder posted a modest 8.5 percent rise in full-year profit.
“Such a turbulent market is stressful for everyone and we managed to record some gain in earnings,” Adrian Cheng, who is also the executive vice-chairman, said in an online briefing to discuss the results. Read more>>
ESR-Logos REIT Won’t Redeem Its S$150M 4.6% Perpetual Securities
Singapore-listed ESR-Logos REIT will not redeem the outstanding securities of its S$150 million ($104.5 million), 4.6 percent perpetual securities, the trust’s manager said Friday.
Instead, the distribution rate will be reset on 3 November, its first reset date, to a rate equivalent to the prevailing swap offer rate, plus the initial rate of 2.6 percent per annum. The six-month SOR stood at 3.28 percent as of 23 September, going by figures from the Association of Banks in Singapore. This new distribution rate will be applicable for five calendar years from 3 November. Read more>>
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