Evergrande’s chairman bought 2-8a Rutland Gate through a friend in 2020
China Evergrande leads Asia’s real estate news again today with report that chairman Xu Jiayin is struggling to sell his furtively acquired mansion in London’s West End. Also in the news, Malaysia’s IOI acquires Kuala Lumpur’s W Hotel and Moody’s follows up on its China credit review by going pessimistic on Hong Kong and Macau.
Evergrande Boss Can’t Find Buyer for London’s Priciest Mansion
Two of London’s priciest mansions, on the market for a combined £475 million ($602 million), are struggling to sell as high interest rates and a tough tax environment curb investment.
Hui Ka Yan, founder of embattled real estate firm China Evergrande Group, almost sold his Rutland Gate mansion this year for about £200 million — £25 million below asking price, according to a person familiar with the matter. The Knightsbridge property, which holds the distinction of being London’s priciest home, was under offer from a Middle Eastern buyer before negotiations broke down. Read more>>
Malaysia’s IOI Properties Buys W Kuala Lumpur Hotel for $58M
Tropicana Corporation Bhd is finally selling the five-star W Kuala Lumpur hotel, which is located on the former Bok House site in Jalan Ampang for MYR 270 million ($57.7 million).
In a filing with Bursa Malaysia on Wednesday, Tropicana said that its wholly-owned subsidiary, Tropicana Residences Sdn Bhd, has signed a sale and purchase agreement with IOI PFCC Hotel Sdn Bhd and Flora Development Sdn Bhd, two indirect subsidiaries of IOI Properties Group Bhd for the sale of W KL. Read more>>
Moody’s Changes Hong Kong’s Outlook From Stable to Negative
Moody’s on Wednesday downgraded its outlook on Hong Kong from stable to negative, a day after cutting China’s credit outlook citing costs to bail out local governments and state firms or to control its property crisis.
The downgrade in Hong Kong’s outlook reflects an assessment of tight political, institutional, economic and financial links between Hong Kong and China, Moody’s said. Read more>>
Carson Block Shorts Blackstone’s Publicly Traded Mortgage REIT
Carson Block said he’s short Blackstone Mortgage Trust, saying the publicly traded real estate investment trust is exposed to a perfect storm of economic conditions hitting commercial real estate and may face a liquidity crisis.
The Blackstone Mortgage Trust makes loans collateralized by commercial real estate. Block, who heads short-selling firm Muddy Waters, said the trust is facing a possible liquidity crisis and may default on its loans, and he expects it will have to cut its dividend by at least half. Read more>>
River Valley, Queenstown Sites Seen Topping Singapore Land Sale Plan
Ten new sites will be on offer under the Government Land Sales programme for private residential housing in the first half of 2024. Eight are on the confirmed list, and two on the reserve list.
The confirmed list includes a parcel in the prime central area of River Valley, one along Margaret Drive in the Queenstown area, and an executive condo site in Jalan Loyang Besar, which have caught analysts’ attention. Read more>>
Singapore Authorities Quiz MUST Manager Over Recapitalisation Plan
Securities Investors Association (Singapore) has posed a string of questions to the manager of Manulife US Real Estate Investment Trust on the plans to raise funds through a mix of asset dispositions and a sponsor-lender loan.
The investor watchdog met the sponsor, the senior management of the Reit’s manager, and about 300 unitholders on a virtual platform on Wednesday to better understand the fund-raising proposal announced on 29 November. Read more>>
Cheng Family Buys Up New Word Shares as Hong Kong Developer’s Stock Swoons
Hong Kong billionaire Henry Cheng’s family increased its stake in property developer New World Development this week, according to a person familiar with the matter, as the company’s shares reached a 20-year low.
The family purchased shares on Tuesday and Wednesday through Chow Tai Fook Capital, the person said, asking not to be identified because the information isn’t public. Hong Kong Economic Journal reported the transaction earlier. Read more>>
Shenzhen Developer’s Bond Saga Shows Limit of State Support
A Chinese developer’s repeated extensions on debt repayments despite state backing show the limitations of government help, just as authorities ramp up support for the beleaguered real estate sector.
Shenzhen-based China South City is partially owned by the Shenzhen SEZ Construction and Development Group, a unit of the southern Chinese city’s local state asset regulator. It was among the first in China’s property sector to receive a state bailout. The Shenzhen state-owned firm bought a 29 percent stake in the developer in May 2022. Read more>>
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