Zhongzhi is best known as the parent company of Zhongrong International Trust
Chinese shadow banking giant Zhongzhi Enterprise Group, which owes creditors over $64 billion and has been a top lender to the real estate industry, has filed for bankruptcy, with that story leading Mingtiandi’s headline roundup today. Also making the list, one of India’s richest men announces a new data centre and Fitch Ratings downgrades China’s largest bad asset banks.
Troubled Chinese Shadow Bank Zhongzhi Files for Bankruptcy
Chinese shadow banking giant Zhongzhi Enterprise Group Co has filed for bankruptcy, cementing the rapid downfall of a firm that oversaw more than $140 billion at its peak before succumbing to the property crisis that has wreaked havoc on the world’s second-largest economy.
Zhongzhi, the parent company of lender Zhongrong International Trust, said it “obviously” lacked the ability to repay its debts, according to a statement Friday from Beijing’s First Intermediate People’s Court, which accepted the case. An audit found Zhongzhi’s debts were as much as RMB 460 billion ($64.3 billion), compared with assets of RMB 200 billion, according to a letter to investors in November. Read more>>
Ambani Says Reliance-Brookfield JV to Open Chennai Data Centre Next Week
Indian billionaire Mukesh Ambani on Sunday said his firm Reliance Industries in partnership with Canada’s Brookfield will open a data centre in Chennai next week, marking entry into the fast-growing market.
Reliance had in July last year invested about INR 3.78 billion ($45.4 million) to enter an existing joint venture, where Brookfield Infrastructure and US-based realty estate investment trust Digital Realty were already partners. The three own 33 percent each in the venture. Read more>>
Fitch Downgrades China’s State-Backed Distressed Asset Managers
Fitch Ratings has downgraded China’s four state-backed, distressed asset managers, following its assessment that government support is set to weaken amid the ongoing property market crisis, which it said could weigh on their asset quality and financial strength.
The ratings for both China Cinda Asset Management and China Orient Asset Management were cut to A- from A, while those for China Huarong Asset Management and China Great Wall Asset Management were lowered to BBB from BBB+, the ratings agency said in a statement issued late on Wednesday. Cinda’s rating outlook was stable while the outlook for the other three asset management companies (AMCs) was “rating watch negative”, it said. Read more>>
Brookfield Seals $2.5B All Cash Deal to Acquire Indian Cell Towers
Brookfield Asset Management has acquired 100 percent of the Indian unit of American Tower Corp (ATC) in a $2.5-billion all-cash deal that is expected to close in the second half of 2024.
The Canadian multinational trumped infrastructure investment group I Squared Capital in the deal for the 78,000-site company. Following the transaction Brookfield will become India’s largest tower company with 253,000 sites. Read more>>
SGX-Listed AIMS APAC REIT Renews Two Master Leases
AIMS APAC REIT has renewed the master lease with Japanese logistics group Kintetsu World Express (KWE) for a new five year term, and extended the master lease term with Cargill-owned chocolate manufacturer Aalst Chocolate for a further 10 years.
As at the end of September 2023, the two master leases contributed about 6.6 percent to the gross rent of the REIT’s total portfolio, its manager said on Monday. Read more>>
Chinese Builder Xinyuan New York Condo Project Files for Bankruptcy
A subsidiary of NYSE-listed Chinese developer Xinyuan Real Estate Co Ltd. has filed for Chapter 11 bankruptcy protection in the Southern district of New York court, according to a court filing.
Hudson 888 Owner LLC, whose business is “single asset real estate,” filed the petition, according to the court document dated Sunday. Its estimated liabilities and assets are both within the range of $100 million to $500 million, the filing shows. Read more>>
India’s Macrotech Boosts Sales 12% in Q4
Realty firm Macrotech Developers on Friday reported a 12 percent increase in its sales for the final three months of 2023 to INR 34.1 billion ($410 million) citing improved demand for its residential properties.
Sales for Macrotech Developers, which markets its properties under the Lodha brand, stood at INR 30.4 billion in the year-ago period. In a regulatory filing, Macrotech Developers informed that the company has achieved its best ever third quarter pre-sales performance. Read more>>
Fitch Upgrades Lippo Mall Trust to ‘CC’ From ‘RD’ on Potential Restructuring
Fitch Ratings has upgraded Lippo Malls Indonesia Retail Trust’s (LMIRT) long-term issuer default rating to “CC” from “RD”, after downgrading it to “RD” from “C” following the completion of a tender offer.
The “CC” rating, indicating high levels of credit risk, is to reflect the increasing likelihood of a debt restructuring, given the low take-up rate of the tender offer, said Fitch in a report on Friday. Read more>>
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