Chindata is seeking new backers to expand its regional data centre platform
Bain Capital looks for new backers to expand regional data centre platform Chindata, with that story leading Mingtiandi’s headline roundup today. Country Garden also makes the list as it hires New York-based Kroll for liquidation analysis, and Shimao bondholders disagree with the developer’s proposal to revamp $11.5 billion in offshore debt.
Bain Eyes New Backers for Multibillion-Dollar Data Centre Firm Chindata
Bain Capital is considering bringing fresh backers into Chindata Group Holdings, people familiar with the matter said, allowing it to raise cash and keep expanding the Beijing-based data centre company.
The US-based fund manager is working with advisors to find partners in some of the data centres, the people said, asking not to be identified discussing private matters. Bain plans to sell ownership rights for the assets to help lighten its balance sheet, while charging maintenance and operation fees, one of the people said. Read more>>
Country Garden Downplays Hiring New York’s Kroll for Liquidation Analysis
Embattled Chinese developer Country Garden Holdings downplayed the possibility of a liquidation after it hired a financial advisory firm to assess the amount of money creditors could recover in such an event.
The hiring comes weeks after the cash-strapped developer received a winding-up petition due to missed loan payments. Read more>>
Bondholder Group ‘Firmly Opposes’ Shimao’s Debt Revamp Proposal
A group of major bondholders of defaulted Chinese developer Shimao Group said Wednesday that it “firmly opposes” the firm’s proposal to revamp $11.5 billion in offshore debt, clouding its prospects amid a deepening crisis in the property sector.
“The ad hoc creditor group firmly opposes Shimao’s restructuring proposal, (and) will unequivocally vote against it and other scheme creditors ought to do the same,” the offshore creditor group’s financial advisor, Houlihan Lokey, said in a statement. Read more>>
PAG Chairman Shan Calls for Lifting All China Property Curbs
One of Asia’s best-known private equity investors is proposing a complete removal of homebuying restrictions in China, arguing that the country is far from facing a severe oversupply in residential housing.
“When the market is too slow, the existing buying curbs add frost to snow,” Weijian Shan, executive chairman of Hong Kong-based PAG, wrote in an emailed commentary on Wednesday, invoking a Chinese phrase that means adding insult to injury. “Even though various regions have relaxed measures, it’s time to remove them completely.” Read more>>
Former LA Deputy Mayor Found Guilty in Conspiracy Tied to Shenzhen Builder
A former deputy mayor and longtime Los Angeles city official was found guilty by a jury of accepting tens of thousands of dollars in bribe money and facilitating illicit payoffs from developers to then-Los Angeles City Councilmember Jose Huizar as part of a long-running conspiracy that corrupted the approval of city real estate projects.
Raymond She Wah Chan, 67, was found guilty of all 12 felony counts he faced, including accepting bribes to advise and pressure city officials in favour of Shenzhen Hazens’ Luxe Hotel redevelopment project. Read more>>
Bank of Korea Warns of Economic Hit on Property Slump, Credit Woes
The Bank of Korea warned Thursday that a further slump in the real estate sector would undermine broader economic activity, as it pointed to worsening delinquencies among developers in the latest signal of continuing woes in the credit market.
The rising delinquency rate underscores more risks associated with project finance, keeping alive concerns that they may spread to other developers, the South Korean central bank said in a regular report on the financial sector. The overall financial system appears stable in general, the BOK said. Read more>>
GIC, Other Owners of CitizenM, Explore Sale of European Hotel Group
The owners of boutique hotel chain CitizenM are working with bankers to explore options for the business, including a potential sale, as it seeks to expand after a rebound in the travel sector post-pandemic.
Netherlands-based CitizenM’s owners — including its largest shareholder, Dutch pension provider APG; Singaporean sovereign wealth fund GIC; and founder Rattan Chadha — are being advised by Morgan Stanley and the real estate investment bank Eastdil Secured, according to people familiar with the matter. Read more>>
Chinese Cities Sold 40% More Land in Jan-Feb
The residential land area traded in China’s first- and second-tier cities jumped about 40 percent in the first two months of the year from a year earlier, even though the country’s average figure declined in the period.
Over 2,020 hectares (4,991 acres) of residential lands were traded in China’s 70 large and medium-sized cities in January and February, up 1.4 percent from the same period last year, Wang Yongmei, spokesperson of the Ministry of Natural Resources, said at a press conference. Residential property land transactions in first- and second-tier cities soared 40 percent and 42 percent, respectively, while those in third-tier cities plunged 36 percent, Wang said. Read more>>
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