In today’s roundup of regional news headlines, China Evergrande’s onshore unit postpones reporting its interim financial results, private equity giant KKR backs away from a plan to sell a Seoul office block, and UBS cuts six bankers from its Hong Kong office.
Property developer China Evergrande’s primary mainland entity said on Wednesday that it was unable to disclose its six-month financial report by 31 August because significant changes in its operation had added extra auditing work.
Hengda Real Estate Group, the developer’s flagship onshore unit, also promised to publish its 2021 annual report as soon as possible, it said in a filing with the Shenzhen Stock Exchange. Read more>>
KKR has backed away from an effort to sell Namsan Square in Seoul, according to market sources, as rising interest rates and increasing uncertainty dent investor appetites for large acquisitions.
The US private equity firm, which had led a consortium that acquired the South Korea office block for a reported KRW 500 billion ($420 million) in 2020, is said to have found few interested buyers after making the asset available recently. Read more>>
UBS Group is letting go of half a dozen mainland China-focused employees in Hong Kong, as turmoil in the world’s second-largest economy hammers dealmaking and prompts global banks to rein in their presence in the once lucrative market.
The Swiss bank has trimmed bankers in businesses including debt capital markets, investment banking and real estate, the people said, asking not to be named discussing private information. A UBS spokesman declined to comment. Read more>>
Office property markets in Hong Kong and mainland China are likely to see declining rents for the rest of the year, according to a consultancy ranking that places them in the bottom half of a list of 22 Asia-Pacific markets.
“Hong Kong SAR and mainland China are lagging in terms of rental growth,” said Ada Choi, head of occupier research and head of data intelligence and management at CBRE Asia Pacific. “We have also revised down our full-year expectations of the two markets.” Read more>>
China’s real estate slump has crimped the earnings of some of the world’s largest property developers, adding to the woes of an industry that is grappling with high debt, declining sales, pockets of mortgage revolt and shrinking confidence.
China Resources Land’s profit attributable to shareholders decreased by 19 percent to RMB 10.6 billion ($1.5 billion), while revenue shrank 1.1 percent to RMB 72.89 billion, according to a statement. Read more>>
Bridgewater Associates, a $150 billion hedge fund founded by billionaire Ray Dalio, has established an office in Singapore, signalling its intent to further expand and deepen its investment research and client servicing activities in Asia.
Bridgewater is the world’s largest hedge fund, catering to institutions including pension funds, sovereign wealth funds, third-party wealth managers and family offices. Asian monies are understood to comprise more than a third of the business. The firm has catered to Asia Pacific institutions, including those in Singapore, for nearly three decades. Read more>>
With private residential rents in Singapore already up by 11.7 percent for the first half of the year, Savills Research is raising its year-on-year growth forecast for all of 2022 to 15-20 percent from 10-15 percent previously.
Rental increases are likely to continue well into 2023 with a 5 percent year-on-year rise, said the research arm of property consultancy Savills. Read more>>
Nearly 70 Chinese cities reported declines in new home prices last month, the most since the start of the COVID-19 pandemic, putting more pressure on local governments to quickly roll out additional support measures for homebuyers and developers.
The property sector, which accounts for about a quarter of China’s economy, has lurched from crisis to crisis since the summer of 2020 after regulators stepped in to cut excess leverage, causing some developers to default on their debts and struggle to complete projects, resulting in homebuyers threatening to stop making payments. Read more>>