China Evergrande Sued by Property Management Unit and More Asia Real Estate Headlines

China Evergrande leads the region’s real estate headlines again today with news that the embattled developer is now being sued by one of its listed subsidiaries. Also making the list, Singapore’s DBS provides a $134 million green loan for a Melbourne project and more Chinese cities ease mortgage requirements.

China Evergrande Unit Suing Mainland Parent Over Missing Cash

Evergrande Property Services Group said Tuesday that one of its units had commenced legal proceedings against Hengda Real Estate Group and embattled developer China Evergrande, among others.

The unit, Jinbi Property Management, has commenced the proceedings for the recovery of RMB 2 billion ($279.6 million) in deposit certificate pledge guarantees. Read more>>

Foreign Investor Said in Talks to Buy Korea’s Eastspring for $77M

Eastspring Asset Management Korea, the Korean operation of Prudential Plc’s asset management unit, is up for sale for about KRW 100 billion ($77 million) as its business in Asia’s No.4 economy stumbles.

According to investment banking industry sources on Tuesday, a foreign investment bank is in talks with multiple potential buyers to sell Eastspring Investments’ Korean operations owned by UK-headquartered multinational insurance company Prudential Plc. Read more>>

DBS Provides $134M Green Loan to Refinance Melbourne Office Tower

DBS has provided a S$180 million ($134 million) green loan to Malaysia’s public sector pension fund KWAP for the refinancing of a Grade A green office tower in Australia.

The 17-level office building in Melbourne’s Collins Street is wholly owned by KWAP. It holds a 6-star NABERS energy rating, reportedly the highest rating for building energy efficiency in Australia. Read more>>

Nearly 100 Chinese Cities Lower Mortgage Rate Floor for First Homes

The People’s Bank of China said 95 Chinese cities have lowered the floor on commercial individual mortgage rates for first-time homebuyers while 24 others have abolished the floor as of the end of September amid efforts to help bring down borrowing costs for buyers and boost the real estate market.

In its third-quarter monetary policy report, China’s central bank said it had encouraged more cities to lower or abolish the mortgage rate floor for first-time homebuyers since the start of the year. Read more>>

PBOC Chief Warns of ‘Long and Difficult’ Economic Transformation

China’s central bank governor stressed tolerance for slowing growth in the short term as the world’s second-largest economy transitions away from property and infrastructure toward new drivers of activity.

In an address to bankers in Hong Kong, People’s Bank of China governor Pan Gongsheng said he was confident the economy would enjoy “healthy and sustainable growth” in 2024 and beyond, citing rising sectors like renewable energy. He also downplayed concerns over risks related to property and local government debt issues, after earlier meeting with top executives from banks including HSBC and Goldman Sachs. Read more>>

Singapore Condo Resale Volume Rebounds, Price Growth Slows in October

Resale condo volume in Singapore recovered slightly in October, with prices rising marginally for the third consecutive month.

From September to October, prices inched up 0.4 percent, lower than the 0.8 percent in September and 0.9 percent in August, according to flash data released by real estate portals 99.co and SRX on Tuesday. Read more>>

M&G Predicts More Distressed Real Estate Sales Globally 

M&G Real Estate forecasts that it is “a matter of time” before global property markets face greater volumes of forced selling, with banks increasingly reluctant to refinance troubled or lower-quality assets at current interest rates.

Developers in China, Germany and Sweden have in particular suffered as a result of a sharp rise in borrowing costs in recent years, with some projects financed at rock-bottom rates now close to, or breaching, key loan terms. Read more>>

ARA US Hospitality Trust Agrees to Sell Hyatt Place Pittsburgh Airport for $7.7M

ARA US Hospitality Trust has agreed to sell Hyatt Place Pittsburgh Airport for a consideration of S$10.3 million ($7.7 million). The hotel, which is the smallest within the trust’s portfolio, was valued at the same price as at 31 August, by an independent appraiser. The consideration will be satisfied in cash.

The managers of the trust, on Monday, entered into a conditional purchase and sale agreement with Bacall Companies to sell the property. Read more>>

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