Longfor chair Wu Yajun could be on her way to another payday
Despite the recent carnage in mainland developer bonds, at least one Chinese developer has decided to brave Hong Kong’s equity market with the news of Longfor Group winning approval for a public listing by its property management spinoff leading our headline roundup today.
Guangdong-based Country Garden is also in the news as its Malaysian unit prepares to compensate unhappy homebuyers after losing a lawsuit over late delivery and China’s central bank is ready to pump some cash into the country’s economy as lockdowns restrict activity.
Longfor Ready for $1B Hong Kong Property Management IPO
A unit of Chinese developer Longfor Group Holdings got the green light for the largest Hong Kong listing in 7 months in what would be a measure of investor confidence in the troubled sector.
The property management subsidiary Longfor Intelligent Living has won approval for an initial public offering (IPO) that may raise around US$1 billion, according to people familiar with the matter. Read more>>
Country Garden to Pay Compensation Over Delayed Malaysia Project
Country Garden Danga Bay Sdn Bhd said on Thursday (April 14) the property developer respects the Federal Court’s decision on Wednesday to not grant the company permission to appeal against late-delivery compensation claims by seven purchasers of properties developed by the firm within Danga Bay in Johor Bahru.
Country Garden Danga Bay said in a statement it will “compensate house owners” for late delivery of vacant possession after the Federal Court decided not to grant the company permission to appeal against the purchasers’ claims. Read more>>
China to Cut Rates, Lower Reserve Requirements to Boost Economy
China’s central bank is expected to cut its key policy interest rate for the second time this year on Friday and reduce the reserve requirement ratio within days to help bolster a faltering economy under strain from Covid lockdowns.
Sixteen of the 22 economists surveyed by Bloomberg predict the People’s Bank of China will lower the interest rate on one-year policy loans – 12 of them forecast a 10 basis-point reduction to 2.75 percent and four expect a 5-point drop. The rest see no change. Read more>>
Hong Kong Luxury Rents Could Fall by 15% as Expats Flee
Luxury home rents in Hong Kong may fall by as much as 15 percent this year as expatriates keen to escape the city’s strict zero-Covid-19 policy continue to leave in droves, said analysts.
In the first quarter of 2022, rents for high-end houses and flats fell between 2.6 per cent and 4 percent, with those in Kowloon and the New Territories seeing the biggest declines, according to property consultancy Savills. Read more>>
Foreign Investment in Vietnamese Real Estate Reached $2.7B in Q1
Foreign investment poured into real estate hit almost $2.7 billion in the first quarter of this year, outpacing the $2.63 billion recorded in all of 2021, according to Vietnam’s Ministry of Planning and Investment.
The capital inflow was mainly driven by industrial real estate. Notably, Singapore added nearly $941 million for a project developing urban infrastructure and services for the Vietnam-Singapore Industrial Park (VSIP) in Bac Ninh province, which helped lead to a surge in foreign investment in the property sector. Read more>>
IndiaBulls Real Estate Raises $113.6M Through Share Sale
Indiabulls Real Estate Ltd (IBREL) has raised INR 8.65 billion ($113.6 million) through issue of shares to institutional investors. The Mumbai-based firm had launched its QIP (Qualified Institutional Placement) issue on March 7 and closed it on April 12.
Authum Investment and Infrastructure Ltd, Nippon Life India Trustee Ltd-A/C Nippon India Multi Cap Fund, Copthall Mauritius Investment Ltd, Morgan Stanley Asia (Singapore), Societe Generale, and Baillie Gifford Pacific Fund participated in the QIP issue. Read more>>
India’s Rustomjee Group Launches Mt K Kapital Real Estate Fund
Real estate developer Rustomjee Group is setting up a Mumbai-focussed development fund platform. Valued at $50-75 million, the fund named Mt. K Kapital will target opportunities in residential and mixed-use projects.
In the future, the fund will invest in completed mixed-use commercial assets across various cities. The SEBI filings for the CAT II AIF License have already been made, Rustomjee Group said. Binitha Dalal and Abdeali Tambawala, founders of Mt. K Kapital, will lead the venture. The company aims to raise up to $500 million for the initial vehicle. Read more>>
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