Less than a year after Fosun saw its bet on the UK’s Thomas Cook end up in bankruptcy, the Shanghai-based investment firm is watching another bet on leisure spending head down the drain as creditors of Cirque du Soleil prepare to take control of the troubled entertainment firm.
Also in the news, as risks rise in Hong Kong’s real estate market the city’s authorities are responding by loosening credit conditions as mainland speculators are being forced to dump luxury properties in the world’s most expensive real estate market.
Fosun International Ltd. is poised to lose its 20% stake in Cirque du Soleil Entertainment Group, the latest in a series of failed overseas deals for the Shanghai-based insurance, health care and tourism conglomerate.
A consortium of Montreal-based Cirque du Soleil creditors is set to take control of the struggling circus operator, people familiar with the matter said. The company filed for bankruptcy protection in June as the Covid-19 pandemic slammed its distinctive global chain of musical, acrobatic shows. Under a deal that still requires Canadian court approval, TPG Capital, which owned about 60%, would also see its investment wiped out. Read more>>
The Hong Kong Monetary Authority will ease financing rules for the first time in more than a decade to make it easier to afford non-home real estate, helping to ease a property glut amid the city‘s worst recession on record and a coronavirus pandemic.
The de facto central bank will allow banks to increase their lending for such non-residential properties by lifting the so-called loan-to-value ratio to 50 per cent from 40 per cent from August 20, it said in a statement on Wednesday. It will be the first time the HKMA is rolling back its industry-tightening measures introduced during the previous bout of price speculation from 2009 to 2017. Read more>>
Some heavily indebted mainland Chinese owners have been forced to sell their luxury apartments in Hong Kong at huge losses or discounts, as the economic slump at home takes a toll and a fresh wave of coronavirus makes them question the wisdom of holding on to the assets in the city.
At least 10 transactions – nine residential properties and one parking space – have incurred big losses, of up to HK$8.2 million (US$1.06 million), or been sold with steep discounts since the second half of July, according to agents. Read more>>
Hilton is tweaking its strategy in mainland China by targeting domestic long-stay guests amid a slump in international travel brought on by the Covid-19 pandemic.
The hotel management chain will team up with China’s biggest developer Country Garden to establish 1,000 hotels over the next 10 years, marking its first extended-stay product in its second-largest market. Read more>>
China’s Tahoe Investment Group Co. is weighing a sale of its U.S. health care unit that could fetch $300 million to $400 million, according to people with knowledge of the matter.
Tahoe Investment had preliminary discussions with financial advisers on a potential divestment of Alliance Healthcare Services Inc., an Irvine, California-based company it bought in 2017, the people said. Deliberations are at an early stage and Tahoe Investment could decide to keep the business, said the people, who asked not to be identified as the information is private. Read more>>
An aircraft hanger at Changi Air Base which uses solar panels and retrofitting works at One Raffles Link which will achieve an overall cooling system efficiency to save the equivalent of $120,000 a year is among projects that won awards from the Building and Construction Authority (BCA), as buildings go greener in Singapore.
A total of 376 projects, including 16 overseas, were awarded the BCA Green Mark Award this year, the organisation said on Wednesday (Aug 19). Read more>>