In today’s roundup of regional news headlines, China Evergrande’s latest credit downgrade comes with the warning of a “downward spiral”, Korea’s third-largest conglomerate readies a September IPO for SK REIT, and Hong Kong’s Wharf REIC posts a double-digit rise in first-half revenue.
China Evergrande Group bonds dropped towards record lows, with S&P Global Ratings warning of a potential “downward spiral” as creditors lose confidence in the world’s most indebted developer.
“Evergrande’s liquidity position is eroding more quickly and by more than we previously expected,” S&P analysts led by Matthew Chow wrote in a report late Thursday in Hong Kong. “The company’s nonpayment risk is escalating, not only for the substantial public bond maturities in 2022 but also for its bank and trust loans and other debt liabilities over the next 12 months.” Read more>>
SK REIT, the first real estate investment trust from South Korea’s third-largest conglomerate, SK Group, said Thursday that it has begun the process for an initial public offering on the country’s benchmark Kospi in September.
The REIT obtained approval on its registration statement from the Financial Service Commission. The REIT aims to raise KRW 232.6 billion ($203.7 million) from the IPO by floating about 46.5 million new shares at KRW 5,000 each. Read more>>
Although retail sales may have bottomed out in Hong Kong, rental incomes will remain under tremendous pressure until border controls are relaxed, according to Wharf Real Estate Investment Company (REIC), the owner of shopping centres Harbour City and Times Square.
Vacancies and weaker market rents continue to depress rental incomes, the company said in a results filing with the stock exchange on Thursday. Read more>>
Property and hospitality group Roxy-Pacific Holdings on Thursday posted a first-half net profit of S$5.9 million ($4.4 million now), up 110 percent from S$2.8 million in the same period a year earlier.
Revenue in the six months ended 30 June was S$141.2 million, up 20 percent from S$118.1 million, thanks to higher sales from its property development and property investment segments. Read more>>
Things are looking up at Chip Eng Seng. The property player is back in the black with a net profit of S$99,000 ($73,271 now) for the half-year ended June, a turnaround from its year-ago loss of S$24.4 million.
Chip Eng Seng posted first-half revenue of S$622.4 million, more than double the year-ago top line of S$290 million. This was due to the low base last year, when most construction activities ceased during Singapore’s circuit-breaker. Read more>>
Buyers’ sentiment for Seoul apartments hit its highest point in five months this week, despite the government’s tightening measures, data showed Friday.
According to the Korea Real Estate Board, an index gauging the balance between supply and demand for homes surged by 0.3 points this week, from 107.6 to 107.9. Read more>>
The Mills Fabrica, a platform for sustainable innovations, opens its doors in London’s King’s Cross this month. As the second outpost of The Mills, the Hong Kong-based regeneration project, the London opening marks a new cross-continental chapter of the story.
The Mills stems from the Nan Fung Group’s textile legacy in Hong Kong, which at its height grew to become one of the largest spinning mills in the 1950s. Read more>>