China Accepts Applications for First Commercial REITs and More Asia Real Estate Headlines

China’s malls can now be included in the country’s real estate investment trusts of infrastructure assets, with announcements of the first successful applications under the revised rules leading Mingtiandi’s headline roundup today. Also making the list is mainland developer Jingrui’s latest bond default and Japan’s Daiwa House teaming up with Lendlease to build UK homes.

Vanke’s SCPG, Jinmao, China Resources Land Get Green-Light for China Commercial REITs

Mainland authorities have accepted applications for the country’s first real estate investment trusts holding commercial properties, with entities controlled by state-backed developers China Vanke, China Jinmao and China Resources Land all taking the first formal step in the process.

China Resources Land said it hopes to raise RMB 6.98 billion ($954 million) through the listing, while Vanke-controlled mall platform SCPG aims for RMB 3.6 billion while China Jinmao has yet to release detailed financials. Also filing a successful application was mainland retail giant Wumart. Read more>>

Mainland Developer Jingrui Defaults on $240M Bond

Jingrui Holdings suffered its latest default on an offshore bond on Thursday with the Chinese developer failing to repay investors for $240 million in principal and $15 million in accrued interest at the maturity date.

The Shanghai-based builder first defaulted on four sets of offshore notes in June last year, and says it is working with creditors towards a holistic solution to resolve its outstanding liabilities. Read more>>

Japan’s Daiwa House Teams Up with Lendlease for $303M UK JV

Lendlease and Daiwa House have secured their third project on as many continents after agreeing to the joint development of two build-to-sell apartment buildings with an end value of £250m ($303 million) in inner-south-eastern London.

ASX-listed Lendlease will supply 25 percent of the capital and Daiwa – Japan’s largest home builder – will supply 75 percent for the 259-unit final residential stage of Lendlease’s Elephant Park, a decade-long multistage project in the London suburb of Elephant & Castle. Read more>>

Sino-Ocean Group Bonds to Resume Trading in Shanghai After Winning Debt Extension

Sino-Ocean Group bonds will resume trading in Shanghai after the cash-strapped Chinese property developer secured an extension for the repayment of interest from debtholders.

At a meeting held 26 October, nearly 74 percent of the bondholders passed a resolution allowing for extension of the repayment of interest on the corporate bonds and the provision of credit enhancement measures, Sino-Ocean said Friday. Read more>>

CapitaLand China Trust Sees NPI Drop as RMB Slides

CapitaLand China Trust (CLCT) said on Friday that its net property income (NPI) rose 1.2 percent in the third quarter to reach RMB 316.4 million ($43 million), however that rebound was wiped out by currency depreciation which brought NPI down 8.4 percent in Singapore dollar terms.

CLCT’s manager attributed its growth in NPI to a recovery across its retail portfolio, excluding CapitaMall Qibao in Shanghai and CapitaMall Shuangjing in Beijing. Read more>>

China Woes Hit Global Banks as StanChart Shares Slump

Standard Chartered Plc is setting aside more cash to cover China-related losses, underscoring how a property crash and slowing growth in the world’s second-largest economy is hitting international banks. Shares tumbled.

The British lender said Thursday that it took a $186 million charge on Chinese real estate and an impairment of $700 million on China Bohai Bank, in which it has a 16 percent stake. Separately, Nomura Holdings Inc. is overhauling its China business after losses there snowballed, Bloomberg News reported Thursday. Read more>>

Vanke Bonds Suffer Record Tumble as Property Woes Spread

Developer China Vanke Co.’s dollar bonds plunged Thursday afternoon, with some on pace for their biggest-ever declines, as worries about the nation’s ailing property sector spread further.

The firm’s note due March 2024 dropped 7.5 cents to 84 cents on the dollar while a 3.15 percent bond due 2025 slumped 9 cents to 59.2 cents, with both on track for record daily falls. Vanke is second behind peer Longfor Group Holdings Ltd. as the biggest decliner this year in a Bloomberg index of Asian investment-grade dollar bond issuers, each losing more than 30 percent as of Wednesday. Read more>>

Singapore Bungalow Rents Slip Following Money-Laundering Scandal

Landlords of Good Class Bungalows (GCBs) have begun lowering rents, as demand from ultra-high-net-worth individuals falls in the wake of Singapore’s S$2.8 billion ($2 billion) money-laundering bust.

Owners of these homes, which sit at the apex of Singapore’s residential property market, may also be taking longer to secure tenants. Read more>>

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