Evergrande Selling Stake in Shanghai Project and More Asia Real Estate Headlines

China Evergrande again leads our roundup of real estate headlines from around Asia, with the troubled developer selling off its stake in a Shanghai project at a loss. Also in the news, Chinese authorities are rolling back restrictions on home purchases in Beijing and Shanghai while Keppel DC REIT pursues payment from a naughty data centre tenant in Guangdong.

Evergrande Selling Stake in Hongkou Project to Everbright at a Loss

Embattled developer China Evergrande said Thursday that its domestic holding company is selling its 30 percent stake in a project in Shanghai’s Hongkou district to China Everbright for RMB 663.2 million ($93.7 million)

Hengda Real Estate Group expects to book a RMB 55 million loss on the deal. Following the transaction, China Everbright will be the sole owner of the project, which has been stalled for the past two years. Read more>>

China Extends Homebuying Easing to Beijing, Shanghai in Policy Boost

Chinese authorities relaxed homebuying curbs in Beijing and Shanghai, extending efforts seen in major cities to stem an unprecedented housing downturn.

The nation’s capital cut the down-payment ratio for second homes to 40 percent or 50 percent, depending on the locations of the properties, the Beijing Municipal Commission of Housing and Urban-Renewal Development said Thursday on its website. That compares with a previous threshold of 60 percent or 80 percent, depending on the size and value of residences. Read more>>

Keppel DC REIT Demands $6.7M Payment from China Data Centre Tenant

Keppel DC REIT’s wholly owned subsidiary in China, KDCR Guangdong, issued a letter of demand on Friday to its tenant of three Guangdong data centres to recover RMB 48.3 million ($6.7 million) of owed rentals and related expenses.

The trust’s China unit also requested the tenant, Guangdong Bluesea Data Development, to top up security deposits of RMB 32.2 million. Read more>>

Boustead Shareholders Approve Acquisition of Boustead Projects Shares

Shareholders of Boustead Singapore on Thursday voted overwhelmingly to acquire Boustead Projects shares belonging to the former’s chairman and group chief executive, Wong Fong Fui, and his children.

All three resolutions proposed at the extraordinary general meeting garnered more than 90 percent support from the independent shareholders who voted. Read more>>

Embassy REIT Expects SEZ Regulation Tweak to Boost Finances

India’s largest REIT, Embassy Office Parks, expects the government’s easing of regulation for special economic zones to boost its finances from the fiscal year starting April 2024.

Last week, India allowed developers to strip vacant floors in SEZs off the status and lease them to non-SEZ entities. SEZs, set up in 2005, were aimed at incentivising export-oriented companies but lost their allure to new entrants after tax holiday ended in 2020. Read more>>

China’s Economy Seen Weakening on Deflation, Property Weakness

China’s economy likely lost some momentum in November, raising expectations for Beijing to ramp up stimulus in the new year.

Data due Friday is expected to show industrial output weakening from October and a contraction in property investment worsening as efforts to support growth have yet to take hold. Deflationary pressures remain a concern, casting a shadow over any uptick in year-on-year retail sales growth. Read more>>

REITs Lead Singapore Stocks Higher After Fed Holds Rates Steady

Singapore shares finished higher Thursday after the US Federal Reserve signalled that lower borrowing costs are on the horizon in 2024.

The benchmark Straits Times Index rose 0.6 percent to 3,122.95. Across the broader market, gainers outnumbered losers 385 to 211, with 1.6 billion securities worth S$1.5 billion ($1.1 billion) changing hands. Read more>>

China’s Local Governments Issue Record Amount of Special Bonds to Back Banks

China’s regional governments have issued a record amount of special bonds to support troubled smaller banks, as they try to fend off potential systemic risks that could be triggered by a prolonged real estate crisis.

So far this year, at least 15 provinces have issued RMB 205 billion ($29 billion) worth of special bonds for small and medium-sized banks, according to CNN calculation based on data from the Shanghai Stock Exchange, the Shenzhen Stock Exchange and Chinabond.com, a state-run website providing bond market data. Read more>>

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