China Evergrande Group is making another attempt at restructuring its debt (Getty Images)
China Evergrande is back in the news as the teetering giant leads today’s headline roundup with a revised proposal for restructuring $300 billion in debt. Also in the news, the owners of a Singapore office tower head back to market with a discounted tender, Hong Kong developers use a deep-discount tactic to tempt hesitant homebuyers and Country Garden rejects talk that its founder and chairman have fled China.
Evergrande Revises Restructuring Proposal, Cancels Hearings
China Evergrande Group is revising the terms of its proposed restructuring plan and canceled so-called scheme sanction hearings, it said in a filing, adding further uncertainty to what would be one of the nation’s biggest ever restructurings.
The distressed developer cited its “current situation and consultations with its advisors and creditors” in a filing to the Hong Kong Stock Exchange on Friday. The group is taking the steps “to meet the company’s objective situation and the demand of the creditors,” it said. No details on the proposed revisions to the restructuring plan were given. Read more>>
Shenton House Relaunched for Collective Sale at $430M
Shenton House, a commercial building on Shenton Way in the Singapore CBD, has been relaunched for collective sale at a reserve price of S$590 million ($430 million), with the tender to close on 1 November. The price remains unchanged from the previous tender, which launched in late June and closed on 1 August.
While the current reserve price is S$590 million, owners have commenced signing a supplemental joint agreement to lower the reserve price to S$538 million, which reflects a unit land rate of $1,885 per square foot per plot ratio at the gross plot ratio of 14.0. Read more>>
Asia’s Small Homes, Decluttering Drive Self-Storage Investments
Expensive rents for small homes, increasing affluence and work-from-home practices in Asia have fuelled demand for self-storage and piqued investor interest in the nascent sector, attracting capital from global private equity firms and pension funds.
These urbanisation mega trends are giving institutional investors hope that Asia can achieve the success seen in established markets, such as the US self-storage sector that has grown to a whopping $29 billion. Read more>>
Empty Homes Are Forcing Hong Kong Developers to Cut Home Prices
Hong Kong’s property developers are racing to sell homes with a tactic they haven’t had to use for years: deep discounts.
Real estate companies are cutting new home prices, pummelled by a weak economy and rising interest rates. Buyer hesitancy is so strong that even deeply discounted foreclosure auctions attract few bidders. Data from Centaline show that 20,483 new properties were vacant in the third quarter — the most in nearly two decades. Read more>>
Country Garden Bondholders Seek Talks After Missed Payment
Country Garden bondholders are forming groups and seeking urgent talks with the troubled property developer after it missed a $15 million coupon repayment, putting it at risk of default, according to three sources with direct knowledge of the matter.
Two bondholder groups have emerged seeking discussions about a potential debt restructuring package, with a major one close to appointing either Moelis or PJT as financial advisors, said the sources, who declined to be identified because the information is confidential. Read more>>
Country Garden Denies That Its Founder and Chairman Have Left China
Country Garden issued a statement Thursday morning rejecting talk, which it said was spread across several social media platforms, that its founder and chairman had both left China.
The company said the talk has had “adverse effects”, adding that its founder, Yeung Kwok-keung (Yang Guoqiang in Mandarin), and his daughter Yang Huiyan, who is the company’s chairman, are still “working as normal” in China. Read more>>
Manulife US REIT Renews Lease With Anchor Tenant
Manulife US REIT’s largest tenant at 1100 Peachtree in Midtown Atlanta has inked a 65-month lease renewal with the REIT.
Atlanta-headquartered Kilpatrick Townsend has been a major tenant at the property since 1992. The law firm is also Manulife US REIT’s fourth-largest tenant across the REIT portfolio, making up about a third of 1100 Peachtree’s net lettable area. Read more>>
India’s PropShare Capital Launches Second Real Estate Fund
Online real estate platform PropShare Capital said on Thursday it has launched the second fund as part of its alternative investment fund strategy to invest in rent-generating commercial real estate.
PropShare Real Estate Fund II has a target corpus of INR 5 billion ($60 million) with a green-shoe option of INR 2 billion and will invest it across completed Class A rent-generating commercial properties leased to multinational and blue-chip tenants in India’s tech hubs. Read more>>
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