Champion REIT’s Three Garden Road, one of the largest office buildings in Hong Kong’s Greater Central area
In today’s roundup of regional news headlines, a Hong Kong REIT becomes the latest to clinch green financing, China’s central tax authorities prepare to take over land sales, and Singapore’s Lim family sees nine of its properties frozen by a High Court order.
Hong Kong’s Champion REIT Secures First Green Credit
Hong Kong-listed Champion REIT, owner of Three Garden Road and Langham Place, has signed its first sustainability-linked term and revolving credit facilities amounting to HK$3 billion ($386.6 million) for five years.
The loan proceeds will be used for refinancing and general corporate funding purposes. The loan, announced on 8 June, is backed by eight banks: DBS, Bank of China Hong Kong, ICBC Asia, Hang Seng Bank, Bank of East Asia, OCBC Bank, Citi and United Overseas Bank. Read more>>
China Logistics Property to Raise HK$767M in Share Placement
China Logistics Property says it will raise HK$767 million ($98.9 million) by placing 220 million new shares.
The shares slid by 21.5 percent to HK$3.40 as of 3.20pm on Wednesday. The placing shares represent 6.76 percent of the issued share capital and 6.33 percent of the company’s issued share capital as enlarged by the issue of the placing shares, the company said in an exchange filing. Read more>>
Hang Lung’s Ronnie Chan Proposes Hong Kong Switch to Mandarin
Billionaire businessman Ronnie Chan said on Wednesday that he hopes all schools in Hong Kong will primarily use Mandarin for teaching, adding that the SAR’s next generation should dream the “Chinese Dream” in the language.
Speaking at a forum to discuss development in Shanghai and Hong Kong, Chan said the introduction of the national security law has provided the SAR with “the best opportunities” and that it’s important to now focus on winning people’s hearts and minds and solidifying the patriotic forces within the city. Read more>>
China Tax Authorities Set to Take Over Land Sale Management
A new plan that will require land-sale revenue in China to be paid to and managed by tax authorities rather than local-level land departments will be a “mixed bag for China property”, according to analysts, as Beijing moves to stabilise runaway home prices and defuse local financial risks.
The revamped collection method, which will allow central authorities to better trace the flow of funds, will be rolled out in a pilot programme from 1 July in seven regions, including Shanghai, Inner Mongolia, Zhejiang, Hebei and Yunnan. It will be extended nationwide from next year. Read more>>
China Tells Banks to Stress-Test Their Evergrande Exposure
Chinese regulators have instructed major creditors of China Evergrande Group to conduct a fresh round of stress tests on their exposure to the world’s most indebted developer, according to people familiar with the matter.
Authorities led by the Financial Stability and Development Committee, China’s top financial regulator, recently told lenders including Industrial & Commercial Bank of China to assess the potential hit to their capital and liquidity should Evergrande run into trouble, the people said, asking not to be identified discussing a private matter. It’s unclear whether the results will lead to any official action. Read more>>
Goldman Predicts Rise in Hong Kong Home Prices This Year
US investment bank Goldman Sachs has joined a chorus of property market observers forecasting an increase in Hong Kong home prices this year.
“Given high property prices, very low interest rates but an improving economy, we expect gradual property price increases in line with household income growth for the residential market,” the bank said in a report led by analyst Gurpreet Singh Sahi. “We believe [an] easing of COVID-19-related border restrictions between Hong Kong and mainland China would benefit the sale of luxury residential flats, Central office take-up and retail premises’ rent.” Read more>>
9 Properties Among Hin Leong’s Lim Family Assets Frozen by High Court
Six residential properties in Singapore and three in Australia belonging to the Lim family behind insolvent Hin Leong Trading are among assets frozen by a High Court order obtained by liquidators seeking to recoup $3.5 billion in debt from the collapsed trader.
Judicial managers turned liquidators Goh Thien Phong and Chan Kheng Tek of PwC scored a legal victory in May to freeze the Lim family’s assets worldwide, up to a value of $3.5 billion. The order covers the Lim family’s assets from real estate in Singapore and Australia to club memberships, insurance policies, shares, cash and investments. Read more>>
Singapore Apartment Rentals Rise Despite Closed Borders
The rental market for both private apartments and Housing & Development Board flats in May remained robust despite Singapore’s tightened COVID-19 measures and border restrictions in place.
Rents for condominium units rose by 0.3 percent compared with the month before and are up 7.3 percent from a year earlier. They are still down 11.4 percent from their peak in January 2013, according to flash data from real estate portal SRX released on Wednesday. Read more>>
Hong Kong Construction Costs Slip as Pandemic Stifles Activity
Hong Kong’s construction costs have dipped amid a drop in building activity during the pandemic, theoretically putting pressure on the prices of new homes, according to Arcadis, an Amsterdam-headquartered design and consultancy firm.
Hong Kong dropped from third to eighth position in Arcadis’s 2021 International Construction Cost Index. It was the highest-ranked Asian city, a couple of spots above Macau in 10th but a long way behind Geneva, which topped the table of 100 cities. Read more>>
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