In today’s roundup of regional news headlines, a New York skyscraper owned by failed Chinese conglomerate HNA files for bankruptcy, mainland developer Yango asks for an extra year to repay holders of its asset-backed securities, and a Hong Kong developer agrees to a land swap in order to secure a new site in Kowloon.
HNA-Owned Manhattan Tower Files for Bankruptcy
Entities linked to 245 Park Avenue, a Manhattan skyscraper tied to China’s HNA Group, filed for Chapter 11 bankruptcy in Delaware, court papers showed. The listed assets and liabilities are between $1 billion to $10 billion, the filing showed.
Tax authorities in Chicago and New York City were listed as the two biggest creditors, where it owes more than $23 million in property taxes. The high court in HNA’s home province of Hainan approved the firm’s bankruptcy plan yesterday, after the company announced the plan last month. Read more>>
China’s Yango Group Asks for Help with ABS Obligations
Chinese developer Yango Group has asked holders of its asset-backed securities to refrain from asking for repayment for a year over concerns it would struggle to pay, financial intelligence provider Redd reported.
Yango’s RMB 1.27 billion ($200 million) in 6.5 percent asset-backed securities mature in November 2022 but give holders the option to demand repayment next month. Read more>>
Developer Agrees to Pay $1.2B Land Premium for Kowloon Site
Kowloon Development has agreed to exchange land that it had hoped to redevelop for years on the site of the former St Joseph’s Home for the Aged in Clear Water Bay. Instead it will pay the largest land premium in four years for another site in Kowloon.
The property developer said two of its subsidiaries agreed to surrender a 19,335 square metre (208,120 square feet) lot at the historic site to the government and will pay a premium of HK$9.66 billion ($1.24 billion) for a larger lot of 22,373 square metres with a 50-year lease term, according to a stock exchange filing on Friday. Read more>>
Mainland Developer Bonds Face $2B Stress Test in November
Who will survive in China’s property sector is becoming a key question for investors as the country’s credit market undergoes its biggest shakeout in years.
A surge in Chinese junk dollar-bond yields in October, briefly reaching 20 percent, has made it all but impossible for stressed developers to refinance their maturing debt. Such firms have just over $2 billion of onshore and dollar-bond payments due in November, according to data compiled by Bloomberg. At least four builders defaulted last month, while China Evergrande Group twice averted that fate by paying overdue coupons at the 11th hour. Read more>>
Two-Thirds of China’s Top Developers Breach a ‘Red Line’ on Debt
China’s indebted developers are struggling to meet Beijing’s tighter financing rules.
Two-thirds of the top 30 Chinese property firms by sales ranked by China Real Estate Info have breached at least one of the metrics known as the “three red lines”, Bloomberg-compiled data showed. Read more>>
Philippines’ Richest Man Set for $89.5M Supermarket IPO
AllDay Marts, a supermarket chain founded by the richest person in the Philippines, is poised to jump in its trading debut, thanks to heavy retail investor interest.
AllDay’s offer was about four times oversubscribed, with the company and billionaire Manuel Villar raising a combined PHP 4.52 billion ($89 million) by selling 7.52 billion shares at 60 centavos each. Read more>>
Overseas Offices, Industrial Properties Dominate S-REIT Acquisitions
Despite pandemic headwinds, Singapore-listed real estate investment trusts have continued to scoop up high-quality assets, with a focus on office properties and data centres located abroad.
They made some S$8.9 billion ($6.6 billion) in property investments in the first three quarters of 2021, close to the S$9.4 billion injected during the whole of 2020, according to the Institute of Real Estate and Urban Studies’ analysis of data from Bloomberg and S-REITs’ announcements. Read more>>
HK Housing Chief Overseas Property Brokers Required to Brief Clients on Risks
Hong Kong’s housing minister appeared to be in damage-control mode on Saturday over his recent remarks that substantially cutting waiting times for a public flat could take up to 20 years, a stunning admission that exasperated lawmakers.
Striking a more positive note on his blog, Secretary for Transport and Housing Frank Chan said the average waiting time for a public rental flat could improve in the five-year period to 2032. Read more>>
SG’s International Plaza Fails to Get Nod for CBD Incentives
Singapore’s Urban Redevelopment Authority has turned down an outline application for the proposed redevelopment of International Plaza in Tanjong Pagar under the Central Business District Incentive Scheme.
The outcome is seen as having implications for the ongoing collective sale tender for the property, which has a S$2.7 billion ($2 billion) reserve price; if achieved, this would be the highest for a collective sale. The tender closes on 30 November. Read more>>
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