Hong Kong’s troubled hospitality sector leads the way in Mingtiandi’s roundup of Asia real estate headlines today as falling occupancy forces the closure of many of the Asian financial hub’s struggling hotels.
In other news around the region, the bondholders of a cash-strapped mainland aviation-to-property conglomerate have agreed to delay a coupon payment, while an expat in Singapore is renting a swimming pool for S$10,000 ($7,061) per month.
Elsewhere, a Beijing-based apartment rental operator is being sued for omitting a reference to the coronavirus pandemic from its IPO documentation.
Hong Kong’s distinction as a shopper’s paradise used to draw tens of thousands of tourists to the China-ruled city every month, but a year of political unrest and the coronavirus crisis are driving some hotels to the brink of financial ruin.
Hotel occupancy rates in the recession-hit economy have plummeted since protesters took to the streets last June, angry with Beijing’s perceived tightening grip over the city. The sometimes violent clashes with police scared away tourists, especially high-spending Chinese and business visitors put off by the political tensions. Read more>>
China’s HNA Capital, a unit of Chinese conglomerate HNA Group, said on Monday that bondholders had agreed to delay the annual coupon payment on a bond after the company requested a five-month extension last week.
Bondholders unanimously agreed to extend the bond’s coupon payment date to 30 September, HNA Capital said in an official filing. Read more>>
Keppel DC REIT’s sponsor Keppel Telecommunications & Transportation (Keppel T&T) has agreed to sell 38 million units in the data-centre real estate investment trust, representing a 2.33 percent stake, for S$2.42 ($1.72) apiece.
The Keppel Corp subsidiary on Monday inked a sale-and-purchase agreement with Credit Suisse (Singapore) as the placement agent. Credit Suisse will procure the purchase of or, failing which, will purchase the sale units. Read more>>
Investors are targetting Hong Kong’s hotels for conversion into co-living spaces as the tourism industry struggles with the effects of months of protests and the coronavirus pandemic.
The 37-room Paris Hotel in Jordan gave up its lease, which was taken up by co-living operator LINKo Living in April at HK$230,000 per month. Co-living companies offer residents their own rooms with shared common areas such as the living room and kitchen. Read more>>
On April 27, a unique real estate deal was closed that reflects the unprecedented circumstances amid the extended “circuit breaker” measures.
Lester Chen, senior division director at Singapore Realtors Inc (SRI), leased out the swimming pool and garden of a Sentosa Cove bungalow for S$30,000 ($21,125) over three months. The unique tenancy agreement was signed by a foreigner who lives in the Cape Royal condominium on the west of Sentosa Cove, the exclusive residential enclave on Sentosa Island. Read more>>
A putative class-action securities lawsuit was filed last Friday against a Chinese real estate firm that had its initial public offering in January, charging it made only an oblique reference to the already raging coronavirus pandemic in its offering documents.
Beijing-based Phoenix Tree Holdings Ltd, a Cayman Islands holding company that leases and manages apartments in 13 cities in China — including Wuhan, where the pandemic originated — raised net proceeds of $128.4 million from its sale of American Depository Shares on 22 January, according to the lawsuit filed in US District Court in New York against the company, its officers and directors, IPO underwriters and others. Read more>>
Singapore Press Holdings (SPH) on Monday (Apr 27) announced it would be divesting wholly owned subsidiary Buzz Shop to Thai-Pore Enterprise for an undisclosed amount.
“This divestment of a non-core business will sharpen SPH Group’s strategic focus on its main business segments of media, retail real estate, purpose-built student accommodation and aged care,” said SPH in a media release. Read more>>