CPPIB president and CEO John Graham
Canada’s biggest pension fund leads today’s roundup of regional headlines, with Toronto-based CPPIB reporting quarterly gains. Also in the news, China’s home-price downturn slows and a Singapore property tycoon bets on luxury condos in Australia.
Canada’s CPPIB Posts Annualised 10-Year Return of 9.1%
The Canada Pension Plan Investment Board ended its first quarter of fiscal 2025 with net assets of C$646.8 billion ($471.8 billion), compared with C$632.3 billion at the end of the previous quarter.
The C$14.4 billion ($10.5 billion) increase in net assets for the June-ended quarter consisted of C$6.3 billion in net income and C$8.1 billion in net transfers from the Canada Pension Plan. The fund, which consists of the base CPP and additional CPP accounts, achieved a 10-year annualised net return of 9.1 percent. For the quarter, the fund’s net return was 1 percent. Read more>>
China Home Prices Fell More Slowly in July
China’s home-price downturn abated in July, a sign that the government’s most forceful effort to revive the market is beginning to take hold.
New home prices in 70 cities, excluding state-subsidised housing, fell 0.65 percent from July, narrowing from a 0.67 percent decline a month earlier, according to the National Bureau of Statistics on Thursday. Values of existing homes dropped 0.8 percent, compared with a 0.85 percent slide a month earlier. Read more>>
Oxley Boss Marketing $99M Luxury Project on Australia’s Gold Coast
Ching Chiat Kwong, chairman of Singapore’s Oxley Holdings, has received development approval from local officials for a A$150 million ($99.4 million) luxury penthouse development on the Gold Coast’s Sovereign Island.
The development will include just 10 homes with deep-water moorings and direct ocean access in an area where properties are regularly valued in excess of A$20 million. Construction of the project is expected to start in the second quarter of next year, with completion by the end of 2026. Read more>>
Moody’s Cuts Vanke Further into Junk Territory
Moody’s cut China Vanke’s debt rating deeper into junk territory, underscoring mounting pressure on the state-backed developer as it faces a cash crunch and declining sales.
The ratings firm, which stripped Vanke of its investment-grade rating in March, said the one-notch downgrade to B1 from Ba3 reflected expectations of weakening contracted sales and ongoing margin pressure. Read more>>
Dalian Wanda Said Planning Fresh Borrowing to Pay Off Pre-IPO Investors
Dalian Wanda Commercial Management is said to have recently told investors privately that the group might use a loan to buy back equity from investors who had financed its frustrated IPO attempt.
No timeline has been stated for the reported loan, with Dalian Wanda Commercial Management, Wanda’s mall management division, said to be looking to reduce its bank borrowings. Read more>>
Wing Tai Issues Profit Warning on Hong Kong Struggles
Singapore-based Wing Tai Holdings warned Wednesday that its Hong Kong associate Wing Tai Properties may report a loss between HK$1.3 billion and HK$1.4 billion ($170 million and $180 million) for the six months to June, widening from a year-earlier loss of HK$374.2 million.
The aggregate of adverse changes in the fair value of the group’s investment properties and the impairment provision for the group’s properties under development are estimated to be more than HK$1 billion, Wing Tai Properties said. Read more>>
Singapore-Listed Yanlord Land Sinks Into the Red
Developer Yanlord Land Group reversed into the red with a loss of RMB 486 million ($68 million) for the six months to June, compared with a year-earlier net profit of RMB 1.1 billion.
The result was due to a write-down to net realisable value of completed properties for sale and properties under development for sale of RMB 729.6 million, as well as an increase in net impairment losses on financial assets amounting to RMB 368.6 million, the company said Wednesday. Read more>>
Wanda Hotels Declares $126M Loss on Sale of Chicago Project in Profit Warning
Hong Kong-listed Wanda Hotels said this week that it expects to record a net loss ranging from HK$880 million ($113 million) to HK$930 million for the six months to June.
The company attributed much of the shortfall to an impairment loss of $126 million from the disposal of its interest in a Chicago development project in November 2020. Read more>>
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