Xu Jiayin is spooking investors by selling down his Evergrande stake
In today’s roundup of regional news headlines, the week opens with a rout of China Evergrande’s stock as chairman Xu Jiayin trims his personal stake in the developer to the tune of 1.2 billion shares and South Korea’s Midas Asset Management has become the latest investor from the country to dive into European logistics assets.
Evergrande Shares Fall as Chairman Sells Down Stake
Shares of China Evergrande Group fell as much as 4.8 percent on Monday morning after its chairman trimmed his stake in the cash-strapped property developer to raise about $344 million.
The group’s electric car unit, China Evergrande New Energy Vehicle, also dropped more than 5 percent after it said the company was still exploring ways to pump capital into the unit with different investors. Read more>>
Korea’s Midas Asset Buys Italy Logistics Centre for $224M
South Korea’s Midas Asset Management has bought a logistics centre leased to Amazon in Italy, where the e-commerce market is rapidly growing.
Midas Asset completed the purchase of the newly built centre near Milan for €200 million ($224.8 million), according to investment banking industry sources. Midas Asset raised money for the deal through a real estate fund it set up and loans from domestic banks. Read more>>
Chinese Developers Face $1.3B in December Bond Payments
China’s stressed developers face nearly $1.3 billion in bond payments in December, after a month in which investor sentiment towards the property sector showed signs of stabilising despite fresh signs of liquidity pressure.
The total was $2 billion in November and no defaults have been reported, according to Bloomberg-compiled data as of Friday, after multiple instances in October. Still, investor scrutiny persists regarding principal and interest payments as a cash crunch engulfs the real estate industry. Read more>>
Singapore Office Rents May Overtake Hong Kong’s on Pandemic Shift
Singapore office rents may overtake those of Hong Kong for the first time since 2009, a sign that the Southeast Asian city-state is gaining an edge over its rival financial hub.
Average office spot rents in Singapore could rise 5 to 10 percent in 2022 on the back of a limited new supply, according to a Bloomberg Intelligence report. Hong Kong’s prime office vacancy rate may exceed 12 percent by the end of next year after a supply boom in decentralised districts, analysts Patrick Wong and Kristy Hung wrote. Read more>>
IREIT Global Bags New Tenant for German Office Project
IREIT Global has secured a five-year lease from a tenant for five floors of office space in its Munster Campus building in Germany, the Singapore-listed trust’s manager said Friday.
The tenant is a German federal municipal association operating 35 special schools, 21 clinics and care centres, as well as 18 museums and scientific institutions for the study of cultural heritages and other cultural institutions. Read more>>
ESR Upsizes Sustainability-Linked Loan to $1B
Hong Kong-listed ESR has secured its first sustainability-linked loan of $700 million, with an option to upsize it to $1 billion.
The group has completed the incremental upsize portion of$300 million in less than one month, backed by the addition of new mandated lead arrangers including Mizuho, Natixis, HSBC and Maybank. Read more>>
Even in Tech Hub Shenzhen, China’s Property Market Succumbs to Chills
Life used to be good for Jerry Tang, who left his rural hometown in 2014 to become a real estate agent in Shenzhen — China’s tech megacity and one of the world’s hottest property markets.
Just a few years ago, Tang could make up to RMB 50,000 ($7,800) in a good month selling apartments. Last year he was making about RMB 15,000 a month, but this year that’s fallen to RMB 5,000 and mostly comes from commission on rentals. Read more>>
Korea Post to Select GPs for $225M Real Estate Fund
Korea Post, South Korea’s state-run postal service, said its savings arm will select two asset managers of an open-end commingled blind pool fund worth up to €200 million ($225 million).
The fund will be used to acquire equities in core and core-plus real estate assets, mainly in developed countries of Europe. Korea Post will commit 20 percent or less of the final commitment to the fund. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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