Kaisa Group chairman Kwok Ying-shing
In today’s roundup of regional news headlines, debt-saddled developer Kaisa Group is making progress in restructuring some $18 billion in borrowings after defaulting on its offshore bonds, as Singapore-listed Keppel REIT posts a 1 percent year-on-year increase in distribution per unit for the first half of 2022. Meanwhile, directors of property player Hwa Hong have announced their decision to accept Sanjuro United’s revised offer of S$0.40 per share for their stakes in the firm.
Kaisa Reports Progress Repaying $18B in Debt
Kaisa Group Holdings is making progress in restructuring some of its $18 billion in borrowings after defaulting on its offshore bonds, while pledging to publish its overdue 2021 accounts by the end of October.
The cash-strapped developer based in Shenzhen said it reached agreements with some onshore creditors to extend its existing borrowings, according to a stock exchange filing late Monday. It did not disclose the number of creditors or the amount involved. Read more>>
Hong Kong Home Prices Fall to Lowest Since 2020
Hong Kong private home prices fell at a faster pace in June and dropped to the lowest since December 2020, official data showed on Wednesday, as homebuyers stayed on the sidelines due to an uncertain outlook and rising interest rates.
Home prices in one of the world’s most unaffordable housing markets slipped 1.1 percent last month from a month earlier, compared with a revised 0.2 percent decline in May. Read more>>
Global Real Estate Investment Grew 8.5% in 2021
The professionally managed global real estate investment market grew 8.5 percent to $11.4 trillion in 2021 from $10.5 trillion in 2020, led by a property rally in the US and China.
According to the latest MSCI Real Estate Market Size Report published on Wednesday, the US and China accounted for about 60 percent of the real estate market growth in 2021. Read more>>
Keppel REIT H1 DPU Up 1% on Keppel Bay Tower Contribution
Keppel REIT reported a 1 percent year-on-year increase in first-half 2022 distribution per unit to S$0.0297 from S$0.0294 previously.
The REIT manager announced a 4.6 percent growth in first-half distribution to unitholders to S$110.5 million ($79.6 million) from S$105.7 million in a regulatory filing after the market close on Tuesday. Read more>>
Hwa Hong Directors to Accept Sanjuro United’s Offer
Hwa Hong’s directors have announced their decision to accept Sanjuro United’s revised offer of S$0.40 per share for their stakes in the company.
In a bourse filing after the market close on Tuesday, Hwa Hong directors Ong Eng Loke, Ong Eng Hui David, Ong Eng Keong and Ong Mui Eng — known as the current Ong directors — announced their intention to sell the approximately 29.3 percent stake in the company to offeror Sanjuro United. The move will turn the Sanjuro United offer unconditional. Read more>>
Beijing to Shake Up Housing Market Near Elite Schools
China will implement a new policy of rotating teachers across different schools in Beijing from next quarter, a move likely to shake up demand and supply of so-called xuequfang, or “school district” properties in the nation’s capital.
Primary and middle school teachers in Beijing will get the opportunity to be reassigned to other schools in all 16 districts in the capital starting from the coming semester in September, the education bureau said in a statement on its website on 20 July. Read more>>
Traffic at Frasers Centrepoint Trust Malls Hits 79% of Pre-COVID Levels
The manager of Frasers Centrepoint Trust on Tuesday reported a slight dip in retail portfolio committed occupancy for the third quarter ended 30 June but said shopper traffic had reached 79 percent of pre-pandemic levels.
Occupancy in the fiscal third quarter was 97.1 percent, down from 97.8 percent in the previous quarter. The manager said this was largely due to pre-termination by an anchor tenant, adding that “advanced negotiations” with replacement tenants are ongoing. Read more>>
Goldman Warns China’s Property Crisis Will Sink Iron Ore Prices
The crisis engulfing China’s property sector will help swing the iron ore market to a significant surplus over the second half of the year and push prices sharply lower, according to Goldman Sachs.
The bank now projects an excess of 67 million tonnes of the steelmaking mineral for the rest of 2022, after a deficit of 56 million tonnes in the first half, reflecting both weakness in onshore real estate and a sharp deceleration in steel demand outside China, according to a note on Tuesday. Read more>>
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