Evergrande purchased Yuen Long project from Henderson in September last year
Struggling mainland developer China Evergrande leads the news again today, with reports of yet another potential asset sale, as sources in Hong Kong indicate that the company is in discussions to sell a New Territories residential project for around $1 billion. Rumours of that deal are gaining traction as yet another of Evergrande’s suppliers has threaten to sue over unpaid bills.
Also in the news today, home prices near some of China’s top schools are calming down thanks to recent rule tweaks, and a Korean government pension fund says it will look beyond the world’s gateway cities for property bargains.
Evergrande Said Hawking New Territories Project at a Loss
China Evergrande Group is seeking to sell a residential project in Hong Kong, people familiar with the matter said, as it ramps up divestments to avert a cash crunch. The debt-laden developer is looking to sell the site in the Yuen Long area of the New Territories for HK$8 billion ($1 billion), one of the people said, asking not to be identified because the matter is confidential.
That reported price is lower than the HK$8.9 billion Evergrande paid to acquire the project in September 2020. The world’s most indebted developer is facing mounting pressure to curtail its borrowings, fueling concerns that it may rush to offload assets cheaply. Read more>>
Another Evergrande Supplier Threatens Suit Over Unpaid Bills
Debt-laden developer China Evergrande Group has failed to pay some overdue bills, piping supplier Yonggao said on Wednesday (Aug 25), in the latest sign of a cash crunch at the teetering builder.
In an exchange filing the Shenzhen-listed pipe-producer said it is owed 478 million yuan (S$100 million) in commercial bills, of which 195 million yuan is overdue, that it could sue the developer and that since May it had stopped deliveries. Read more>>
China Reforms Cool Home Prices in Top School Districts
China’s home prices are falling in districts where the most prestigious schools are located, as efforts by local authorities to tamp down the home-buying frenzy in school districts are paying off.
A home in Futian, the seat of Shenzhen’s municipal government and the city’s central business district, sold last week for 98,884 yuan (US$15,250) per square metre, 42 per cent less than a home sold in the same neighbourhood three months earlier. The home, measuring 105 square metres (1,130 square feet), is located on Baihua Road, close to where the elite Shenzhen Futian Baihua Primary School is located. Read more>>
Korean Pension Fund Targets Emerging Office Markets for Bargains
South Korea’s Government Employees Pension Service (GEPS) is setting its sights on overseas office buildings not only in core regions but in its peripheral areas as the $7 billion pension fund is bulking up its overseas portfolio.
Seo Won-joo, in his third year as the pension fund’s chief investment officer, said GEPS has been raising exposure to overseas assets with a focus on equities and alternatives since last year, and such investment trends will continue for some time. Read more>>
Commercial Building at SG’s Farrer Park on the Market for $41M
Verdun House at Farrer Park has been put up for an en bloc sale via tender with a reserve price of S$55 million ($41 million), announced marketing agent Delasa (formerly known as Showsuite Consultancy) on Wednesday.
The four-storey freehold building stands at the corner of Verdun Road and Sam Leong Road, some 370 metres away from Farrer Park MRT. Read more>>
K Wah Net Shrinks 70% as Project Launches Dry Up
K Wah International’s (0173) interim net profit shrank 70 percent to HK$776 million as revenues plunged on fewer deliveries to buyers. An interim dividend of 7 HK cents was declared.
Earnings per share were 24.83 HK cents and the underlying profit – before fair value change of investment properties – was HK$488 million. Read more>>
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