In today’s roundup of regional news headlines, debt-saddled China Evergrande unloads a Hangzhou mixed-use project for $575 million in cash, data centre developer Yondr plans a 200-megawatt facility in Malaysia’s Johor, and Goldman Sachs analysts forecast a 20 percent drop in Hong Kong home prices over four years.
China Evergrande Group sold a project from the country’s second-largest real estate portfolio, notching a much-needed win in its asset disposal plan as banks closed in to seize its deposits amid $300 billion in total liabilities.
The developer sold its interest in Crystal City, a mixed residential and commercial development in the Zhejiang provincial capital of Hangzhou, for RMB 3.66 billion ($575.45 million) in cash, Evergrande said in a filing with the Hong Kong exchange. Read more>>
A quartet of outside law firms and accountants will help probe how banks ended up taking control of more than $2 billion at a key China Evergrande Group subsidiary.
Last week, the highly indebted Chinese developer and its Evergrande Property Services unit said lenders had enforced their rights over RMB 13.4 billion ($2.1 billion) in bank deposits pledged by the subsidiary to guarantee third-party borrowing. Read more>>
Yondr Group is to develop a hyperscale data centre campus in Johor, Malaysia.
The company this week announced a plan to develop a 200-megawatt campus on 72.8 acres (29.5 hectares) of land in Johor’s Sedenak Tech Park. Read more>>
The prices of Hong Kong homes are likely to fall by a fifth over a four-year period, as borrowing costs increase and demand slumps because of rising unemployment, Goldman Sachs said.
Goldman lowered its forecast from flat prices this year, followed by 5 percent declines in 2023 and 2024 and a return to flat again in 2025, with a 5 percent decline in each year between 2022 and 2025. Read more>>
Far East Hospitality Trust has completed a S$313.2 million ($231.3 million) divestment of Central Square to City Developments Ltd on 24 March.
The amount is 70.8 percent more than the $183.3 million the REIT paid for the property in August 2012. The trust could also potentially receive an incentive fee of up to $18 million, subject to certain conditions. Read more>>
City Developments Ltd said in a bourse filing Wednesday that it expects to make a “significant gain” from its sale of Tanglin Shopping Centre to Hillthorpe Investments, an investment vehicle of Pacific Eagle Real Estate.
CDL’s board believes that the sale, which includes 85 strata lots and two car parks, will help the company recycle and reallocate its capital in line with the company’s overall strategy to divest some of its assets at a premium to net book value and/or valuation. Read more>>
A portfolio of 18 freehold strata-titled retail units at Orchard Shopping Centre is on sale through an expression of interest exercise for an indicative price of S$90 million ($66.5 million), according to marketing agent CBRE. The units span the ground floor and the entire second floor of the building.
The units have a total strata area of 8,934 square feet (830 square metres), which represents 18 percent of the total strata area, or 23.5 percent of the total share value of the development. The units are currently fully occupied, with tenants including Maybank, RHB Bank and a Chinese hotpot restaurant. Read more>>
Central China Real Estate shares fell in Hong Kong trading Tuesday after the developer posted a steep drop in 2021 profit due to a spin-off of its property management unit and weakened property market demand.
Shares slid as much as 17 percent on Tuesday morning and are on pace for their biggest one-day loss in almost a year. Read more>>