Debt is the deal at the top of today’s headlines as a bond issue that stacked an additional $3.8 billion burden onto developer China Evergrande’s already weary balance sheet has shaken up international bond markets. Also in the news, Singapore’s CapitaLand follows up on a cluster of new serviced residence deals with a set of new mall management contracts, and a new mainland tax law is suddenly boosting Hong Kong’s home market. Read on for all these stories and more.
A fall in the price of bonds issued by China’s largest property developer last week is adding to strains in the market even as Chinese companies continue to pile up a mountain of dollar-denominated debt this year.
China Evergrande last week sold bonds worth $6.6 billion in total, the largest issuance by an Asian high-yield company ever, according to Dealogic. The company issued $3.8 billion of new debt and exchanged $2.8 billion of old bonds into new debt, paying coupons of up to 8.75%. Read more>>
Property developer CapitaLand said that it has, through shopping mall business CapitaLand Mall Asia, signed three new management contracts in China.
In Chengdu, CapitaLand has been commissioned by Sichuan Da Yi Real Estate Co Ltd to manage the retail component of Leshijie, an integrated development in Pidu district. Read more>>
Wealthy Chinese have been rushing to snap up Hong Kong properties, as Beijing prepares to raise the scrutiny level on its own taxpayers’ overseas financial assets, from July 1, market observers say.
From that date, China’s top tax authority will start being able to take action against its own residents hiding assets overseas, including bank savings, securities, insurance products and trust funds, but not property. Read more>>
Singapore has shot up by 12 places in a league table that ranks cities on opportunities for property investment. The index, launched last August, looks at factors such as retail sales, household income, adult population size and gross domestic product to determine how economically vibrant a city is.
Singapore was ranked ninth, up from 21st last December, by asset manager Schroders, which compiles the index of 161 cities. Read more>>
A group of professionals with property and architectural backgrounds is converting old tenement Hong Kong buildings into co-living projects to offer an affordable housing and networking option to young people.
Synergy Biz, co-founded by Keith Wong who gained extensive experience working in Hong Kong property firms, will launch its second co-living project in Mong Kok for lease in September. The project will be fully opened in the fourth quarter of this year. Wong co-founded the firm with architect Addie Cheng. Read more>>
The mighty peaks of Kilimanjaro and Kenya are the highest points in Africa, towering over the East Coast nations. The mountains will soon be sharing a skyline with a man-made behemoth named simply: “The Pinnacle.”
Kenyan President Uhuru Kenyatta recently laid the foundation stone for what will be the tallest building in Africa in the Upper Hill neighborhood of Nairobi. Construction is underway at the development site, and slated for completion by December 2019. Read more>>