A Lippo Mall in Kuta, Indonesia
A Singapore-listed trust of Indonesian malls leads today’s headline roundup as Fitch Ratings predicts a bond default in the coming months. Also making the cut is some tough bargaining over a distressed Korean builder and Hong Kong’s Henderson Land pushes back against a government redevelopment proposal.
Fitch Downgrades Lippo Malls Indonesia Retail Trust to Restricted Default
Fitch Ratings has downgraded its Long-Term Issuer Default Rating for Singapore-listed Lippo Malls Indonesia Retail Trust (LMIRT) to RD, signifying restricted default following completion of a tender offer for separate sets of notes due 2024 and 2026, which the firm classified as a distressed exchange.
The ratings agency said that it now believes that the mall REIT is likely to default on $188.3 million in senior unsecured notes due in June 2024. Read more>>
Korean Financial Regulator Criticises Taeyoung Restructuring Plan
The chief of Korea’s financial regulator criticized the self-rescue plan proposed by cash-strapped Taeyoung Engineering & Construction (E&C), pushing the mid-sized construction company to come up with a better proposal by this weekend before its creditors decide on whether to greenlight its debt restructuring program.
Taeyoung E&C, the country’s 16th-largest builder by construction capacity, recently filed for debt restructuring, as it struggled to repay loans funneled through project financing. Read more>>
Taeyoung Shares Slide as Creditor Pushes Back on Restructuring Deal
A Korean builder whose plan to restructure debt prompted a rating agency to warn of spillover risk slid on Thursday, fueling concerns in a nation on alert for crises in project finance.
Taeyoung Engineering & Construction, whose projects include a baseball stadium and a post office in Seoul’s financial district, dropped as much as 18 percent in the stock market. Its 2024 won note also declined, after the firm’s top creditor pushed back on its request to restructure its debts, saying it lacked a sufficient plan. Read more>>
Hong Kong’s Henderson Rejects Land Redevelopment Proposal
Henderson Land Development is among the developers that rejected the government’s land exchange proposals before the deadline.
The developer said it did not accept the in-situ land exchange proposal for the sites mainly due to the lack of ancillary facilities there, the long development period that could extend to over seven years, and the high land premiums. But the decision does not affect the group’s ability to pursue other projects in the New Territories, it said. Read more>>
Manulife US REIT’s Portfolio Value Slides 8% in H2 as 2023 Loss Looms
Manulife US REIT’s portfolio real estate valuation fell by 8 percent or $123.1 million to $1.4 billion as at end-December 2023, versus $1.5 billion as at the end of the prior half-year period.
On Friday, its manager said it anticipates the REIT to report a loss for FY2023 due to fair value losses arising from the valuation decline. This is expected to result in the REIT’s net asset value declining by about $0.07 per unit. Read more>>
Korea’s NPS Sees Record Assets, Profit on Double-Digit Return
South Korea’s National Pension Service enjoyed record profit in 2023 as the world’s third-largest pension fund reported a double-digit return for the first time in two years on robust stock markets across the globe.
The NPS’ assets under management were estimated to have topped KRW 1,000 trillion ($764.8 billion) as of 31 December, for its highest year-end total ever, according to investment banking industry sources in Seoul on Tuesday. AUM, which stood at KRW 890.5 trillion as of end-2022, briefly peaked above KRW 1,0000 trillion in September last year but fell to KRW 968.3 trillion as of end-October. Read more>>
AmanahRaya REIT Completes $31M Sale of Holiday Villa Resort in Langkawi
AmanahRaya-Kenedix REIT Manager Sdn Bhd, the management company of AmanahRaya REIT announced that the sale of the Holiday Villa Beach Resort & Spa Langkawi for RM145 million ($31million) has been completed.
AmanahRaya REIT and Plenitude Bhd’s wholly owned unit, Plenitude Gateway Sdn Bhd had entered into a sale and purchase agreement for the sale of the property on 28 June 2023, to trim its borrowings. Read more>>
Singapore Shophouse Market Slows to $803M in Deals in 2023
While shophouses in Singapore are considered highly valuable assets, the market for these coveted properties has cooled compared to its peak in 2021. A market research paper by ERA Realty indicates evident signs of moderation among buyers and sellers.
Based on data published by the local real estate agency, between 1 January and 20 December last year, the market recorded 118 shophouse properties changing hands with a combined transaction value of S$1.07 billion ($803 million) — a dip from the market’s peak in 2021, when 245 shophouses were sold, totalling a transaction value of S$1.84 billion. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
Leave a Reply