Evergrande’s Ocean Flower project as it appeared in 2017
The new years has failed to bring good news for China Evergrande, which leads our headline roundup today with a report that a local government in Hainan has ordered the demolition of one of its resort projects in the tropical island province.
Also in the news, a state-run investment company in Shenzhen is seen to be bailing out a developer based in the city after South China City Holdings announced a $245 million share sale late on Friday.
Hainan Govt Orders Evergrande to Demolish Hainan Resort in 10 Days
The tourism development unit under the debt-stricken China Evergrande Group was ordered to remove its mega resort project in Danzhou, South China’s Hainan Province, according to an administrative penalty notice issued by local authorities citing the company’s unlawful means of obtaining the project certificate.
According to the notice, which has been circulating online since the weekend, the project – covering 434,941.46 square meters or 39 buildings of the Ocean Flower Island, an artificial archipelago in Danzhou, the world’s largest of its kind – was ordered to be demolished within 10 days. Read more>>
Evergrande Halts Share Trading
Shares of the embattled Chinese property developer Evergrande Group have once again been suspended from trading, the company announced Monday, pending the release of “inside information.”
Evergrande, the world’s most indebted developer, is struggling to repay more than $300 billion in liabilities, including nearly $20 billion of international market bonds that were deemed to be in cross-default by rating firms last month after it missed payments. Read more>>
Shenzhen SOE Buying 29% of South China City Holdings for $245M
A Chinese state-run enterprise will buy into struggling developer China South City Holdings Ltd, as Beijing moves to limit the fallout from a widening debt crisis engulfing the country’s real estate industry.
Shenzhen SEZ Construction and Development Group Co, a unit of the southern Chinese city’s local state asset regulator, has agreed to pay HK$1.91 billion ($245 million) for a 29 per cent stake in the Hong Kong-listed developer, the latter said in a stock exchange filing last Friday (Dec 31). Read more>>
Singapore Private Home Prices Rose 5% in Fourth Quarter
Prices of private homes and Housing Board (HDB) resale flats accelerated in the final quarter of 2021 to cap off a robust year, the government’s flash estimates showed on Monday (Jan 3).
The private residential property index and the HDB resale price index both rose for the seventh straight quarter in Q4 2021, and at a quicker pace than in the previous 3 months. On a full-year basis, both indices also recorded the fastest annual growth since 2010. Read more>>
Abu Dhabi Fund Invests $105M for 40% Stake in Thailand Hotel JV
Thailand’s Minor International Public Company Limited recently sold a 40 percent stake in a portfolio of four resort hotels and a shopping mall to the Abu Dhabi Fund for Development (ADFD), according to a press release.
The Anantara Riverside Bangkok Resort, Avani+ Riverside Bangkok Hotel, Anantara Layan Phuket Resort and the Four Seasons Resort Koh Samui hotels, along with the Riverside Plaza Bangkok retail complex will now be held by a joint venture with Minor retaining a 60 percent stake and continuing to manage the properties under its brands. Read more>>
India Online Brokerage Square Yards Aims for $135M IPO
Proptech platform Square Yards has started work on its initial public offering (IPO) through which the firm may raise INR 10 billion ($135 million) or more, joining several other technology companies that are planning to list, said two people aware of the development.
The proposed IPO will make it the first tech startup from the real estate space to go public. Square Yards is an integrated platform for real estate and mortgages which covers the full real-estate journey from search and discovery, transactions, home loans, interiors, rentals, property management and post-sales service. Read more>>
French Cloud Provider OVHcloud Plans to Double APAC Footprint
French cloud services provider OVHcloud is ramping up its investments in the Asia-Pacific to cater to the region as the pandemic forces companies to kick digitalisation into high gear.
The Asia-Pacific presently accounts for 3 per cent of turnover for OVHcloud – which was listed on the Paris stock exchange in October – but chief executive Michel Paulin sees that figure roughly doubling to over 5 per cent within the next 3 to 4 years. The company has sales offices and data centres across Europe, North America and Asia-Pacific. Read more>>
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