Hangovers suffered from China’s cross-border buying binge dominate the real estate news across the region today, with familiar players HNA, Country Garden and CCCC taking leading roles in some financial drama. A day after HNA reported the untimely death of co-chairman Wang Jian, the troubled mainland conglomerate is said to have put up a Hong Kong mansion as loan collateral, after failing to flog the pricey property.
Meanwhile down in Kuala Lumpur, Malaysia’s new government has put on the emergency brake for one of China’s biggest belt and road projects, and Guangzhou-based developer Country Garden is being hit with big fraud charges on the smaller of its development projects across the border from Singapore. Just keep reading for all the details.
HNA Group, once China’s most aggressive overseas buyer, is aiming to use a luxury house on Hong Kong’s exclusive Victoria Peak as collateral for a loan to help pay off debts incurred during its global shopping spree.
House 6 at Twelve Peaks – one of the most expensive residences in Asia in square footage terms – has been on the market for sale but has so far failed to attract a buyer because of its high price tag, according to a source familiar with the deal. Read more>>
The East Coast Rail Link (ECRL) project owner Malaysia Rail Link Sdn Bhd (MRL) has instructed its main contractor China Communications Construction Ltd (CCCC) to suspend all works under the engineering, procurement, construction and commissioning contract (EPCC) of the controversial ERCL project with immediate effect.
In a letter dated July 3 sighted by theedgemarkets.com, MRL had instructed CCCC to suspend all works under the EPCC in respect of the ECRL project, among others, on grounds of national interest. Read more>>
On June 25, 45 homeowners at Country Garden Danga Bay, a luxury condominium project in Johor Bahru, Malaysia, called the local police, claiming that their home sales contracts had been altered without their consent.
The formulation and signing of all housing transaction contracts comply with local laws and Country Garden did not take the liberty of modifying them without permission, Fu Jinling, the regional president of Country Garden Holdings in Malaysia — a unit of the Guangdong province, China-based parent – said yesterday, Singapore newspaper Lian He Zao Bao reported. Read more>>
Five residential sites, including two in Kai Tak and one on The Peak, will be on sale in the second quarter of the current financial year, the government said yesterday.
The other sites are on South Lantau Road on Lantau Island and Lam Tei in Tuen Mun. Secretary for Development Michael Wong Wai-lun said the five residential sites may produce up to 1,850 new flats. Read more>>
CapitaLand says its construction of Raffles City Chongqing is about 80% completed, with the 1.12 million sq m megastructure on track to open in phases from 2Q next year.
The update comes as part of a progress report to Singapore deputy prime minister (DPM) Teo Chee Hean, who visited the development site today.
As Singapore’s largest single-development in China at about $4.9 billion, Raffles City Chongqing began construction over five years ago and is located on Chaotianmen in Chongqing, China. Read more>>
Hong Kong developer Chinese Estates Holdings said its shareholdings in China Evergrande Group were expected to post an unrealised loss on fair value change of HK$5.9 billion ($752.1 million) in the first six months.
Chinese Estates, which holds a 6.5 percent stake in the nation’s No.2 property developer by sales, also expected a realised loss of HK$4.6 million in the first half for disposals of listed securities investments and treasury products including bonds, according to a statement. Read more>>
CIFI Holdings announced that vehicles wholly owned by controlling shareholders Lin Zhong, Lin Wei and Lin Feng, the executive directors of CIFI, increased their stakes in the Hong Kong-listed developer by an aggregate of 25,812,950 shares of CIFI for a total consideration of approximately HK$155 million from 28 May, 2018 to 3 July, 2018.
As of 3 July 2018, the controlling shareholders held approximately 56.08 percent of the shares of the Group. In a statement, the company said that the controlling shareholders do not rule out the possibility of further increasing shareholding in CIFI when appropriate in the future, subject to compliance with applicable legal and regulatory requirements. Read more>>