Hsin Chong chairman Lin Zhuo Yan couldn’t make payment on $150M bond
Economic stress lead’s today’s real estate news from around the region, as an 80-year-old Hong Kong construction company could be up for demolition after missing a $150 million bond payment this week, and mainland China’s oldest investment conglomerate hopes to profit from distress via a new $2 billion in investment fund.
Also in the news, JLL jumps back into the residential business in India and there’s more news from Singapore, China and other points on the map awaiting you below.
Hsin Chong Group Files for Provisional Liquidation
Hsin Chong Group Holdings, the Hong Kong construction major behind the iconic Ocean Park and former Kai Tak Airport, could be delisted in July after filing for provisional liquidation earlier this week. The development came just before the company defaulted on a $150 million bond due on Tuesday.
The Supreme Court of Bermuda approved Hsin Chong’s application to go into provisional liquidation. Edmund Yeung Lui-ming and Glen Ho Kwok-leung of Deloitte Touche Tohmatsu Hong Kong, and Rachelle Ann Frisby, of Deloitte in Bermuda have been named joint provisional liquidators, the company said in a filing to the Hong Kong stock exchange on Monday. Read more>>
CITIC Capital Raising $2B Investment Fund
CITIC Capital, the flagship investment arm of Chinese financial conglomerate CITIC Group, is raising a new $2 billion-plus fund to bolster its ability to do more deals, its chairman and chief executive said on Wednesday.
The new fund will actively look at making new investments in distressed assets in China, mainly in the real estate sector, Zhang YiChen told Reuters’ Global Markets Forum during the World Economic Forum in Davos. Read more>>
JLL Re-Launches Residential Business in India
Iternational property consultant JLL India has set up a new residential brokerage business after nearly two years of selling its stake in the firm’s erstwhile residential brokerage vertical.
JLL India’s newly set up residential brokerage division with team of 50 property experts across 7 cities across India will offer a bouquet of technology-enabled advisory and transaction services to home buyers and developers, the company said in a release. Read more>>
Distributions Slip 0.5% at ARA’s Suntec REIT
Suntec Real Estate Investment Trust (Suntec Reit) will pay a distribution per unit (DPU) of 2.59 cents for the fourth quarter to Dec 31, 2018, the manager has announced.
This is down from 2.604 cents in the previous year on an enlarged unit base, as new units were issued to the manager as partial satisfaction of asset management fees. There had also been also a conversion of convertible bonds into new units in the last quarter of the preceding year. Read more>>
Sino Land Project in HK Fails to Sell Out Despite 26% Discount
Hong Kong developer Sino Land managed to sell only 75 per cent of apartments put up for sale at heavy discounts at its Mayfair by The Sea 8 development in Tai Po. By 3pm on Wednesday, it had sold 171 out of a first batch of 228 units.
The sale comes amid warnings by analysts about further declines in prices. And at an average price of HK$13,228 (US$1,686) per square foot after the discount in the first price list, the property is going for 26.5 per cent less than the HK$18,000 fetched by St Martin, another Tai Po project launched in June last year. Read more>>
China to Overtake US as World’s Biggest Retail Market in 2019
China’s economy may be slowing down, but the country is still set to eclipse the United States as the world’s top retail market for the first time.
Retail sales in China will reach more than $5.6 trillion this year, about $100 billion more than in the United States, according to a report published Wednesday by research firm eMarketer. Read more>>
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