New World Offers $15B in Assets for Refinancing Effort and More Asia Real Estate Headlines

Hong Kong heavyweight New World Development offers properties as collateral to refinance loans, with that report leading today’s headline roundup. Also making the list, Zhenro Properties founder Ou Zongrong is detained over “suspected illegal activities” and Singapore condo rents rise for a third straight month.

New World Offers $15B in Properties as Refinancing Collateral

New World Development has offered properties valued at $15 billion as collateral for loan refinancing, underscoring the increasingly onerous funding conditions facing the billionaire Cheng family’s Hong Kong real estate empire.

The developer has asked banks to provide a three-year facility backed by some of New World’s marquee properties to refinance HK$58.1 billion ($7.5 billion) in unsecured loans maturing in 2025 and 2026, according to people familiar with the matter. That would leave fewer assets available for unsecured bondholders, who have dumped New World notes in recent days — sending some of them to deeply distressed levels. Read more>>

Zhenro Properties Founder Held in China Debt Crisis

The founder of Shanghai-based developer Zhenro Properties Group has been placed under legal compulsory measures, as debt-laden homebuilders continue to struggle through China’s long-running property-market crisis.

Zhenro’s actual controller, Ou Zongrong, is facing legal compulsory actions “due to suspected illegal activities”, the developer’s holding company said Monday. It noted that “Ou does not currently hold any positions such as director, supervisor or senior executive at the company”. Read more>>

Singapore Condo Rents Continued to Climb in December

Singapore rental volume surged 17 percent on a monthly basis, with 5,862 units rented in December. Year-on-year, volume was 3.4 percent higher but still 10.3 percent below the five-year average for December.

Condo rental prices rose for a third straight month, up 0.9 percent from November levels. Growth was consistent across key regions, with prices in the Core Central Region and Rest of Central Region each rising 1.1 percent. The Outside Central Region saw a smaller increase of 0.3 percent. Read more>>

Country Garden Shares Jump as Trading Resumes Following Debt Plan

Country Garden Holdings’ shares jumped as they resumed trading in Hong Kong on Tuesday following a nine-month suspension, after the Chinese property giant pledged to clinch a deal with creditors on a debt restructuring plan.

The stock gained as much as 30 percent in morning trading after the embattled real estate firm said in an exchange filing that it has fulfilled the requirements under the resumption guidance. It’s still near a historical low, trading at around HK$0.60 ($0.08). Read more>>

Shenzhen Officials Step Up Control Over China Vanke

Chinese officials are taking steps to stabilise operations at China Vanke after deepening liquidity stress and questions surrounding the whereabouts of its top executive triggered turmoil for its bonds and shares last week, according to sources familiar with the matter.

Officials of Shenzhen, the southern metropolis where Vanke is based, held a closed-door meeting to discuss Vanke on Friday, said the sources, asking not to be identified discussing a private matter. Vanke’s largest shareholder is a state firm controlled by the city, giving the local government tremendous sway over the developer. Read more>>

Lodha Brothers Fight for Control of India Property Legacy

More than three years after carving up the real estate empire founded by their father, the Lodha siblings have landed in court.

Macrotech Developers on Monday asked the Bombay High Court to intervene and stop the House of Abhinandan Lodha from using the Lodha name. While Macrotech is led by elder brother Abhishek Lodha, House of Abhinandan Lodha is led by younger brother Abhinandan Lodha. Read more>>

Korean Retail Assets Struggle to Attract Buyers as Consumption Slides

South Korea’s retail giants, long synonymous with aggressive marketing and bustling sales in prime commercial districts, are now facing an unprecedented challenge: selling their own properties. Major corporations and asset management firms have listed department stores and supermarket buildings, but buyers remain scarce.

The shift to online shopping during the COVID-19 pandemic eroded the value of physical retail properties. Compounding the problem, a sluggish real estate market has dampened enthusiasm for redevelopment projects. Read more>>

Sabana REIT Investors Ask to Liquidate Singapore Trust

The manager of Sabana Industrial REIT acknowledged receipt of a requisition notice to convey an extraordinary general meeting from unit holders owning 10 percent of the trust led by former director Chan Wai Kheong.

In a letter, the unit holders said the purpose of the EGM was to commence and undertake a price discovery process “with a view to achieving a possible sale of all or majority of the assets of Sabana REIT”. Read more>>

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