Greenland’s near default didn’t prevent Zhang Yuliang’s re-appointment as chairman last month
In today’s roundup of regional news headlines, fresh details emerge about how Shanghai-based developer Greenland dodged default with government help, the slump in China home prices accelerates despite easing measures, and investors clear the way for PropertyGuru’s SPAC-led debut on the New York Stock Exchange.
How Shanghai SOEs Bailed Out Developer Greenland Group
Greenland Holdings, a major Shanghai-based state-backed property developer responsible for marquee projects at home and abroad, was scrambling for funds late last year, people with direct knowledge of the matter said.
In danger of defaulting on a $500 million offshore bond in December, it was rescued after Shanghai authorities told local state-owned enterprises to step in and buy new Greenland debt, sources told Reuters. Read more>>
China Home Prices Drop Faster as Slump Continues
China’s home prices fell at a faster pace in February, as easing measures failed to prevent the property industry downturn from worsening.
New home prices in 70 cities, excluding state-subsidised housing, declined 0.13 percent last month from January, when they dropped 0.04 percent, National Bureau of Statistics figures showed Wednesday. Values in the secondary market dropped 0.28 percent, the same pace as January. Read more>>
Investors Fear Logan Restructuring as Hidden Debts Emerge
Worries about the possible scale of Logan Group’s undisclosed leverage now include talk of a potential debt reorganisation as repayment pressure piles up on its $6.8 billion worth of outstanding bonds.
Considered a higher-quality Chinese developer several months ago, Logan’s credit ratings have been slashed into the equivalent of CCC territory by all three major international assessors, signalling there’s heightened risk that bondholders won’t be made whole. S&P Global Ratings said the builder is likely to restructure its onshore debt given its cash levels and the amounts owed. Read more>>
PropertyGuru to Debut on NYSE as Investors Approve SPAC Deal
Shareholders approved the merger of PropertyGuru and blank-cheque company Bridgetown 2 Holdings, paving the way for the online real estate marketplace to start trading in New York even as investor interest towards such deals wanes.
The proposal passed Tuesday at a special shareholder meeting of Bridgetown 2, the special purpose acquisition company backed by billionaires Richard Li and Peter Thiel. The combined entity will start trading Friday on the New York Stock Exchange under the ticker PGRU, the company said in a regulatory filing. Read more>>
Carrie Lam Gives Green Light to Hong Kong Rent Deferral Plan
Hong Kong leader Carrie Lam has approved a rent deferral scheme to support struggling commercial tenants affected by the city’s coronavirus outbreak, the South China Morning Post has learned, shrugging off mounting pressure from developers to shelve the plan.
Sources said the final version of the budget proposal, which would allow local businesses to delay rental payments for up to three months, was opposed by several members of the Executive Council, Lam’s de facto cabinet, during a long debate on Tuesday, even as the majority endorsed it. Read more>>
Condo Complex in Singapore’s Kembangan Area Sells for $20M
Freehold residential development Vicenta Lodge, located on Lorong Marzuki in Singapore’s Kembangan area, has been sold via private treaty for S$27.2 million ($20 million), said PropNex Realty. The 16-unit development had been relaunched for collective sale in February at a reserve price of S$27.2 million. The latest tender closed on 10 March.
The reserve price had been lowered from S$29 million, when it was previously offered for sale in April 2021. The property had also been put up for sale at S$33.6 million in 2018. Read more>>
Expat Exodus Dents Hong Kong Rental Market
An exodus of expatriates from Hong Kong has continued to pressure the housing market in the city, particularly those in Tung Chung. Are they cheap enough to lure bargain hunters?
Prices in Tung Chung in the New Territories, favoured by airline executives due to its proximity to the city’s international airport, have weakened by 5 percent since the Lunar New Year, according to Centaline Property. They are expected to depreciate over the next quarter on stock market losses and recession fears. Read more>>
Nuveen Opens Perth Student Housing After Borders Reopen
Nuveen Real Estate’s first purpose-built student accommodation project as part of its Australian housing platform opens its doors in Perth this week, as international students return to the country after a two-year absence.
Catering to both students and young professionals, the 483-bed building known as The Switch, Perth Central arrives ahead of properties opening in Adelaide in May and in Sydney and Melbourne later in 2022 and in early 2023, respectively. Read more>>>
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