An image from Evergrande’s WeChat account attempts to reassure customers and investors
In today’s roundup of regional news headlines, a unit of debt-stricken Evergrande says work has resumed on dozens of projects in southern China, rival builder Vanke advises employees to cut their personal spending, and Country Garden Services’ Hong Kong-listed stock plunges after a billion-dollar share sale.
Evergrande Says Construction Resumes on 63 Projects
Debt-laden developer China Evergrande has resumed construction of 63 projects in the southern Pearl River delta, a regional subsidiary said Friday.
The projects span 15 sites from the city of Guangzhou to locations in Foshan, Qingyuan, Yangjiang and Zhaoqing, the subsidiary said in a post on its WeChat account. Read more>>
Evergrande Asks for Fresh Sales Before Paying Back Commission
China Evergrande is asking sales agents to sell even more flats at one of its Hong Kong projects so it can afford to pay them the commission it owes them for units they previously sold.
The Shenzhen-based developer is offering to pay the outstanding commission fees owed on two flats for every additional unit of similar value that agents manage to shift at its Emerald Bay project in Tuen Mun, according to notes from a meeting seen by the South China Morning Post. Read more>>
China Vanke Tells Staff to Cut Spending on Travel, Gifts
China’s biggest property developers — even those not in the grip of a debt crisis — are pulling out all the stops to cut costs as the industry faces a gloomy outlook.
China Vanke, the country’s third-biggest home seller by sales, told its staff to “live frugally, spend small money and do big things” at a meeting on Tuesday, according to an internal document seen by the South China Morning Post. Read more>>
Country Garden Services Share Price Plunges After $1B Sale
A unit of mainland China’s biggest developer has raised HK$8 billion ($1.03 billion) by selling shares amid a slowdown in equity and property markets, prompting a slump in the share price.
Country Garden Services Holdings, the property management arm of Country Garden, sold 150 million shares at HK$53.35 each, according to a stock exchange filing. That was a discount of 9.5 percent to the closing price of HK$58.95 on Wednesday, before the announcement. Read more>>
Chinese Developer Yango Agrees to a Bond Swap With Investors
A Chinese property developer on the brink of default has received approval for a debt swap, allowing it to delay payments.
Yango Group had asked international investors earlier this month to exchange $747 million of dollar debt for new bonds, blaming a shutdown of its usual financing channels for its cash problems. It had said a successful exchange would help it avoid imminent payment defaults and, potentially, a broader restructuring of its business and its debts. Read more>>
Prime US REIT Agrees to Terminate WeWork Lease
Singapore-listed Prime US REIT has reached an agreement with tenant WeWork to terminate its lease in Tower 1 at Emeryville, a Class A office property in California.
In accordance with the terms of the agreement, the REIT’s security package has been converted into a termination fee that has been received, the trust’s manager said Friday in a bourse filing. Read more>>
Mainland Developer Shinsun Reassures Market After Shares Plunge
The board of Chinese developer Shinsun Holdings Group assured the market that the company is operating normally and has not defaulted on debt after the company’s stock was hit by an abrupt sell-off.
Hong Kong-traded shares of Shinsun took a nosedive of nearly 54 percent during Thursday trading, their biggest single-day drop. Shinsun finished the day at HK$1.59 ($0.20), compared with the HK$5.59 offering price when it debuted in November 2020. Read more>>
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