Greenland Group is selling assets as it hustles to pay creditors
In today’s roundup of regional news headlines, Shanghai-based Greenland Group offloads a mall in the Sydney suburbs, Hong Kong’s Nan Hai Corporation warns of asset seizures as an offshore bond default looms, and China Railway Construction looks to dump its stake in an Evergrande unit.
Greenland Group Raises $21.6M From Sale of Sydney Mall
Greenland Group has sold its strata-titled Lachlan’s Square Village mall in the Sydney suburb of Macquarie Park, with the deal being reported just days after the developer controlled by the Shanghai government asked for a one-year extension on a set of offshore bonds.
The Shanghai-based builder is selling the commercial complex to Australia’s Revelop for A$30 million ($21.6 million), with the property forming part of Greenland’s A$800 million NBH at Lachlan’s Line mixed-use development. Read more>>
Developer Nan Hai Says Creditors Seizing Assets as Bond Default Looms
Nan Hai Corporation said creditors are freezing some of its assets because of the developer’s failure to meet the financial obligations on a dollar-denominated note due this weekend.
The company, owned by the HK01 news portal’s founder Yu Pun-hoi, said it “has not been able to meet part of the financial obligations” for its $350 million, 2.9 percent credit-enhanced notes due on 11 June, which led to “certain creditors initiating enforcement actions”, according to a statement to the Hong Kong stock exchange. Read more>>
China Railway Ready to Sell Stake in Evergrande Unit for $400M
Engineering giant China Railway Construction is putting up for sale its 49 percent stake in a subsidiary of debt-ridden developer China Evergrande Group at an asking price of RMB 2.6 billion ($389.7 million), China Beijing Equity Exchange reported Monday.
China Railway bought the holdings in Evergrande Real Estate in December 2019 for RMB 2.3 billion, with Evergrande Group holding the remaining equity. The firm, which is under the State-owned Assets Supervision and Administration Commission of the State Council, holds shares in several of Evergrande Group’s subsidiaries. Read more>>
Bain-Backed $44 Billion Wealth Manager Is Bullish on India REITs
Indian infrastructure and REITs present a good buying opportunity for investors seeking a hedge against inflation as the nascent market grows, according to a $44 billion wealth manager backed by Bain Capital.
IIFL Wealth Management is recommending its clients allocate as much as 10 percent to the hybrid investments, co-founder and joint CEO Yatin Shah told Bloomberg. Read more>>
Poly Property Group’s Shanghai Arm Issues RMB 1.5B in Bonds
Poly Property Group’s Shanghai Poly Property issued RMB 1.5 billion ($220 million) in corporate bonds on Monday, marking its third and final issuance under its RMB 5 billion shelf registered with the China Securities Regulatory Commission.
The latest offering comprises RMB 1 billion in 3.2 percent bonds with a five-year term and RMB 500 million in 3.65 percent bonds with a seven-year term. Proceeds from the issuance will be used to pay debts, according to a Tuesday filing. Read more>>
Central China Real Estate Gets $178M Lifeline From State-Owned Investor
A state-owned enterprise in Central China’s Henan province is injecting cash into local developer Central China Real Estate, as authorities look to shore up confidence in a sector crucial to the country’s economy.
The HK$1.4 billion ($178.4 million) investment from a Henan Railway Investment subsidiary comes as policy easing on mortgages and home purchases over the past few months have failed to revive sales, which have been lacklustre since the industry fell into a liquidity crisis last year. Read more>>
Mainland Developers Report Lower Contracted Sales in May
Hong Kong-listed developers China Overseas Grand Oceans, KWG Group Holdings, Central China Real Estate and Hopson Development Holdings reported year-on-year declines in their May contracted property sales.
Sales for the month fell 63.6 percent to RMB 3.68 billion for China Overseas Grand, 63.5 percent to RMB 4.12 billion for KWG Group and 71.3 percent to RMB 2.17 billion for Central China Real Estate. Meanwhile, Hopson Development said its total sales for the five months ended 31 May dropped 25.9 percent to RMB 13.46 billion. Read more>>
Hong Kong Shopping Centres, Hotels Repurposed as Slump Continues
Some Hong Kong retail landlords and hotel owners are seeking to convert their properties into restaurants and housing to counter rising store closures and lower occupancy rates, as the two-year tourism slump shows no signs of ending.
The owners of Park Lane Shopper’s Boulevard on Nathan Road in Tsim Sha Tsui, one of Hong Kong’s four major tourist belts, last Friday submitted an application to turn the 50-store complex along the boulevard into a food and beverage destination. Read more>>
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