The ongoing debt challenges of China’s real estate developers lead the region’s real estate headlines again today as analysts at Nomura say the industry faces nearly $20 billion in obligations maturing over the next three months.
Also in the news, APG and Allianz Real Estate boost an India office strategy to a $500 million final close and Mapletree Industrial Trust sells a shed near Singapore’s airport.
Real estate giant China Evergrande finally defaulted earlier this month without immediately sparking the widespread contagion that global investors had worried about. But the amount of debt and bills the industry faces will only grow in coming months.
Chinese developers face $19.8 billion in maturing offshore, U.S.-dollar denominated bonds in the first quarter, and $18.5 billion in the second, estimates Nomura analysts Ting Lu and Jing Wang. Read more>>
Chinese property giant Evergrande said on Wednesday it would “actively engage” with its creditors following its recent missed debt repayments.
Evergrande, the world’s most indebted developer with more than $300 billion of liabilities, including nearly $20 billion of international market bonds, was formally declared in default by ratings firms this month after it missed repayments. Read more>>
Godrej Fund Management (GFM), the real estate private equity arm of Godrej Group, on Wednesday said it has achieved the final close of its $500 million office development fund GBTC II.
APG Asset Management N.V. and Allianz Real Estate, which have invested in GFM previously also, joined the fund-raising in what it called a ‘club-style’ office investment strategy. The fund will develop office buildings in prime locations across the top office markets in the country. Read more>>
The manager of Mapletree Industrial Truss announced in a filing to the Singapore Exchange that the real estate investment trust has agreed to sell an industrial building at 19 Changi South Street 1 to Esco Micro at a proposed price of S$13 million ($9.6 million) in cash.
The sale price represents a 4.8 per cent premium over the purchase price. It was acquired on Oct 21, 2010 as part of MIT’s initial public offering portfolio for S$12.4 million. As at Nov 5 this year, the industrial building was valued at S$11.9 million and contributed about 0.2 per cent to MIT’s portfolio gross revenue in the financial year ended March 31, 2021. Read more>>
Keppel Corp’s attempt to take over SPH suffered a setback Wednesday, with a ruling striking down its offer’s condition for SPH shareholders to vote on its bid eight weeks before a meeting can be held on the competing bid from Cuscaden Peak.
The Securities Industry Council (SIC) has ruled that the clauses of Keppel’s offer delaying the vote on Cuscaden’s bid “shall have no effect and shall be disregarded,” Keppel said in a filing to SGX Wednesday. Read more>>
The i12 Katong mall will reopen in phases from Thursday (Dec 23), after it closed its doors for renovation in early 2020, owner Keppel Land said in a media release.
Located at the intersection of East Coast Road and Joo Chiat Road, the revamped i12 Katong comprises six floors of retail and lifestyle shops, as well as two basement levels of a car park. Read more>>
Offers for en-bloc hopeful Lakepoint Condominium fell short of its reserve price as developers start to move more cautiously in light of new cooling measures.
It has closed its tender and is now in a “private treaty negotiation process”, PropNex Realty said in a statement on Wednesday night. The 99-year leasehold was launched for collective sale with a reserve price of S$640 million ($471 million) on Oct 21 this year. Read more>>