Evergrande boss Xu Jiayin has some unhappy creditors
In today’s roundup of regional news headlines, conflict brews between China Evergrande and its bondholders over the terms of the group’s debt restructuring, Chinese developers’ shares jump on prospects of eased funding restrictions, and scandal-plagued Luckin Coffee plots a return to the US stock market.
Evergrande Offshore Bondholders Criticise Restructuring
Signs of conflict between international bondholders and China Evergrande Group are mounting in what will likely be one of the nation’s largest and most complex debt restructurings.
An ad hoc group that includes overseas investors said in a Thursday statement that the developer has failed to substantively engage with it about restructuring efforts. The group will “seriously consider enforcement actions” in order to protect investors’ interests. Among other things, it wants to be consulted before any further assets are sold. Read more>>
China Developer Shares Jump on Prospects of Easier Funding
Shares of Chinese real estate developers rallied on Thursday, following reports that regulators may ease restrictions on their access to pre-sale funds and as lenders cut borrowing costs.
A Bloomberg Intelligence gauge of mainland and Hong Kong-listed developers jumped as much as 4.1 percent, set for a third day of gains. Sunac China Holdings, Logan Group and Shimao Group Holdings all surged more than 10 percent. Read more>>
Chinese Property Bond Rally Fades as Investors Seek Clarity
A record-breaking rally in Chinese property bonds petered out on Thursday amid growing investor doubt over how much a reported plan to allow developers greater access to funds from pre-sold homes will benefit distressed firms.
High-yield notes fell as much as 3 cents on the dollar after jumping Wednesday following the reports. Bonds of Country Garden Holdings and Sunac China Holdings fell after rallying by a record. Read more>>
Mainland Developers Face $117B in Debt Maturing in 2022
Chinese real estate developers are staring at enormous amounts of debt maturing this year, at a time when property sales have slowed and traditional borrowing markets remain closed off after Beijing’s campaign to rein in borrowing in the sector.
According to Refinitiv data, Chinese real estate developers have the equivalent of $117 billion worth of debt maturing in 2022, with $36 billion denominated in dollars. Read more>>
China’s Luckin Coffee Plans to Re-List in US 2 Years After Fraud: Report
Luckin Coffee plans to re-list its shares in the US, the Financial Times reported on Wednesday, two years after the Chinese coffee chain’s $300 million accounting scandal.
The company is exploring whether it should re-list on the NASDAQ as soon as the end of this year, the report said, citing two sources familiar with the matter. Read more>>
Sabana REIT Posts 31.4% Drop in H2 2021 DPU to S$0.0157
Sabana Industrial REIT is moving into the next phase of its growth strategy as it seeks to increase its portfolio value to more than S$1 billion ($740 million) over the next three to five years, says the chief executive of the trust’s manager.
“We have decided to move on a growth path to be able to benefit unitholders,” Donald Han said in a media call after the release of the 2021 results on Thursday. Read more>>
Warehouse Deals in Greater Seoul Area Hit Record High in Q4
The total deal volume of Grade A logistics centres in the Seoul metro area hit a record high of KRW 7.2 trillion ($6.1 billion) last year. A Grade A logistics centre is regarded as accounting for more than 33,000 square metres (355,209 square feet) of flooring.
The transaction volume marks a significant rise from KRW 2.7 trillion in 2019 and KRW 3.4 trillion in 2020, said global real estate firm JLL. The deals in the fourth quarter of 2021 achieved a quarterly record high of KRW 2.5 trillion as the vacancy rate hit a record low of 1.8 percent. Read more>>
DigitalBridge Closes $8.3B Digital Infrastructure Investment Fund
Data centre platform DigitalBridge has closed its latest digital infrastructure investment fund at well above its $6 billion target.
The US firm this week announced that DigitalBridge Investment Management closed its second flagship fund, DigitalBridge Partners II, with $8.3 billion in commitments. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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