Could Evergrande boss Xu Jiayin have been trying to borrow twice against the same asset?
In today’s roundup of regional news headlines, China Evergrande’s closely watched debt restructuring risks being thrown into chaos after a creditor moves to seize the developer’s Versailles-like project in the Yuen Long area of Hong Kong’s New Territories. Also in the news, the head of a mainland electronics maker has been revealed as the buyer of a mansion on Hong Kong’s Peak seized from HNA and Singapore developer SingHaiYi is set to be de-listed on 31 January following a successful privatisation.
Oaktree Seizes Evergrande Hong Kong Asset, Derails Restructuring Talks
Oaktree Capital has scuppered a plan to restructure Evergrande’s $20 billion worth of offshore debts by seizing a vast Hong Kong plot where the ailing property developer’s chairman had intended to build a Versailles-like mansion.
Los Angeles-based Oaktree this week moved to seize control of the asset after Evergrande defaulted on a loan against which the $158 billion asset manager had security, according to two people familiar with the matter. The project was a crucial piece of collateral in a planned restructuring of Evergrande’s giant offshore debt load, but the plan is now in turmoil after Oaktree appointed a receiver, according to one of the people. Read more>>
Evergrande Aims for Six-Month Restructuring Plan
China Evergrande Group is aiming to put forward a preliminary debt-restructuring plan in six months as it seeks to stave off investor demands after being deemed in default for missing dollar-bond payments, according to people familiar with the matter.
The property developer said Wednesday that after holding a telephone conference with stakeholders it “will continue to listen carefully to the opinions and suggestions of the creditors”. Read more>>
Mainland Tycoon Revealed as Buyer of Seized HNA Mansion
A luxury house on The Peak in Hong Kong has reportedly been sold by creditors of the bankrupt Chinese conglomerate HNA Group at a loss of HK$120 million ($15.4 million).
House 6 at Twelve Peaks in the exclusive neighbourhood was sold to Guo Deying, who shares the same name as the founder of Coolpad Group, for HK$387 million two weeks ago, according to HK01, a local online news portal. Read more>>
Hong Kong Home Prices Rose for 13th Straight Year
Hong Kong’s home prices rose for a 13th straight year in 2021 even as prices declined for a third consecutive month in December, according to an index published by the city’s Rating and Valuation Department.
The index for lived-in homes in December fell about 0.3 percent from the previous month. Read more>>
Singapore Developer SingHaiyi to Be Delisted on 31 January
Mainboard-listed SingHaiyi Group will be delisted from the Singapore Exchange at 9am on 31 January, the company said in a bourse filing on Thursday.
The move comes after the property player obtained regulatory approval on 12 January from the bourse operator to delist, after its free float dropped to under 10 percent. Read more>>
Aju Sells California Hotel at $63M After Five Years
Aju Hotels & Resorts, a hospitality firm under Korean conglomerate Aju Group, has sold its San Jose, California hotel to an affiliate of US hospitality company Khanna Enterprises.
The Korean company acquired the hotel for $64 million in 2017 and sold it for $44.9 million with a 30 percent loss, according to reports based on Santa Clara County Recorder’s Office data. But an Aju official told The Korea Economic Daily that the $44.9 million sale price includes only land and the building, and the actual sale price was around $63 million including furniture and intangible assets. Read more>>
GuocoLand H1 Profit Rose 195% to S$67.5M
Property developer GuocoLand posted a 195 percent rise in net profit to S$67.5 million (now $50 million) for its first half ended 31 December 2021 from S$22.9 million a year earlier.
This was on the back of stronger revenue growth as the company saw broad-based growth across all its business segments, the property developer said in a bourse filing on Thursday. Read more>>
Bank of America Said Eyeing Shift From Hong Kong to Singapore
Bank of America is looking at moving staff from Hong Kong to Singapore as the Chinese territory’s strict zero-COVID approach is forcing businesses to review their operations, the Financial Times reported.
The US bank is looking at roles in a number of business lines and operations, the newspaper said, citing a person close to the bank. It’s doing contingency planning and it’s unclear how many people could be moved, according to the report. Read more>>
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