Evergrande Raises $273M in Exit From JV with Tencent and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, cash-strapped China Evergrande exits its stake in internet firm HengTen Networks, rival Country Garden’s property services arm seeks to raise cash through a share sale, and Hong Kong’s government eyes a record haul in land premiums.

Evergrande Raises $273M With Exit From HengTen Networks

China Evergrande Group exited its stake HengTen Networks, an Internet joint venture with Tencent, raising a further HK$2.13 billion ($273 million) as the embattled developer faces deadlines to pay overdue interest on its debt next week.

Evergrande sold 1.66 billion shares of HengTen to Allied Resources Investment Holdings at HK$1.28 a share, representing a 24.3 percent discount to its closing price on Wednesday, according to a Hong Kong stock exchange filing on Thursday. Read more>>

Country Garden Services to Raise $1B in Placement

Property management company Country Garden Services Holdings is looking to raise HK$8 billion ($1.03 billion) through a share sale, the latest Chinese real estate firm to tap equity markets amid a liquidity crunch engulfing the sector.

Country Garden Services will sell 150 million shares at HK$53.35 each, a 9.5 percent discount to Wednesday’s closing price of HK$58.95, according to terms of the deal obtained by Bloomberg News. The funds will be used for future acquisition opportunities, new business development and general corporate purposes, the terms show. Read more>>

CDL Property Sales Hit S$2.5B for First 9 Months of Year

Singapore’s City Developments Ltd sold S$2.5 billion ($1.8 billion) worth of private homes in the first nine months of this year, surpassing the amount it sold for the whole of last year, the SGX-listed company said Tuesday.

CDL and its joint venture associates sold 414 units with a total sales value of S$784.4 million in the third quarter. The group’s operational update indicates that this brought sales in the nine months ended 30 September to S$2.5 billion, with 1,382 units sold. Read more>>

Hong Kong Government to Net Record $6.4B in Land Premiums

The Hong Kong government is set receive a record HK$50 billion ($6.4 billion) in land premiums this year, as developers rush to build flats to capitalise on a housing shortage that is fuelling prices and demand.

Land premium is the fee that developers pay to the government when a modification or change in land use results in a higher land value. The government had already generated HK$40 billion in land premium in the first 10 months of the year, Financial Secretary Paul Chan said this month. This matches the current record for the whole year reported in 2017, according to property consultancy Knight Frank. Last year, the government earned HK$12.7 billion. Read more>>

China Lifts Moratorium on Developers Issuing Asset-Backed Securities

China will let developers issue asset-backed securities, and regulators have urged trust firms to pay attention to the real estate market and ensure that no risks will arise when they dispose of assets.

The move to let property companies resume issuance of asset-backed securities ends a three-month market freeze, as authorities act to insulate higher-rated developers from an industry-wide funding crunch. Read more>>

Tender Launched for Residential Sites at Hillview Terrace in SG

Residential sites at Singapore’s Hillview Terrace were launched for sale via tender on Thursday, said marketing agents Colliers and OrangeTee Advisory.

31-35 and 50-64 Hillview Terrace — 11 freehold factory units — have an indicative price of S$122 million ($89.8 million). The properties have a combined site area of 62,213 square feet (5,780 square metres) and consist of eight terrace factories, one pair of semi-detached factories and a detached factory. Read more>>

Chayora Launches 54MW Data Centre Campus in Shanghai

Chinese developer Chayora has announced plans to develop a new 8.5 acre (3.4 hectare) data centre campus in Shanghai.

At full build-out, the 54-megawatt campus will comprise three five-storey buildings the company said will have capacity for up to 10,000 racks. Read more>>

Digital Realty Opens 24MW Data Centre in Hong Kong

Digital Realty, a New York-listed REIT, has opened a new data centre in Hong Kong.

First announced in July 2020, the new HKG11 is a 21,000 square metre (210,000 square foot) building with up to 24 megawatts of capacity. The site has a total of 12 floors, eight of which will be dedicated to customer deployments. Read more>>

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