The creation of a Hong Kong ‘bad bank’ would face significant hurdles
Some of Hong Kong’s top lenders are said to be in talks on the creation of a “bad bank” to mop up non-performing loans, with that report leading today’s headline roundup. Also in the news, Canada’s Alimentation Couche-Tard drops its bid for 7-Eleven parent Seven & I Holdings and a Singapore luxury project sells just two homes at launch.
Hong Kong Non-Performing Loans Spark Talk of ‘Bad Bank’
The pile of non-performing loans at Hong Kong lenders has grown so large that some in the industry have discussed the creation of a “bad bank” to soak up the financial hub’s soured debt.
The talks between some of the city’s biggest banks, described by people familiar with the matter, have been preliminary in nature and lenders would face significant hurdles before putting the idea into action. Read more>>
Canada’s Couche-Tard Drops $46B Bid for 7-Eleven Parent
Alimentation Couche-Tard Inc has abandoned its $46 billion effort to take over 7-Eleven parent Seven & I Holdings, blasting its Japanese rival for failing to engage in meaningful talks towards a potential deal.
Quebec-based Couche-Tard’s move puts an end to a nearly year-long effort to pursue Seven & I, bringing finality to a situation that has dragged down the Canadian company’s stock price. Seven & I had been frosty to the proposal from the start, raising further questions about whether Japanese corporations remain as closed to mergers and acquisitions dealmaking as they have been historically. Read more>>
Luxury Condo Project in Singapore’s Marina Bay Sells Just 2 Homes in Market Debut
A large-scale luxury development in Singapore sold only a tiny fraction of units when it started accepting bookings, reflecting the struggles of the priciest segment in the city-state’s otherwise stratospheric property market.
W Residences Marina View, developed by Malaysia’s IOI Properties, began pre-sales last Saturday, and buyers booked only two of its 683 units over the weekend, according to people familiar with the matter who asked not to be identified sharing private information. Read more>>
Singapore Hotel Group Amara Set to Delist From SGX on 21 July
Hotel and property group Amara Holdings announced Thursday that it will be officially delisted from the mainboard of the Singapore Exchange at 9am on 21 July.
On 10 June, Amara’s privatisation offer succeeded as valid acceptances reached close to 97.8 percent of total shares. Read more>>
India’s Embassy Office Parks REIT in Talks for $233M Bond Sale
India’s Embassy Office Parks REIT is in talks with bankers to raise INR 20 billion ($232.8 million) via the issuance of five-year corporate bonds, three sources aware of the matter said Wednesday.
The trust will look to close the funding round before the end of this month, said the sources, who requested anonymity to discuss non-public information. The debt sale could attract strong demand from mutual funds and some insurance companies, as the notes are rated AAA by Crisil, they said. Read more>>
Japan’s Asahi Kasei to Expand Into Residential Development in Australia
Asahi Kasei Homes, which already owns one of the largest homebuilders in New South Wales in NEX Building Group, is taking advantage of lower borrowing costs in its home market of Japan to expand into land development in Australia.
The Japanese homebuilder, part of Tokyo-listed Asahi Kasei Corp, aims to develop sites initially with as few as 100 lots a year and boost that to a yearly 350-500 lots for low- and medium-density homes over the next decade, the company said. Read more>>
Hong Kong Office Tenants Expecting Longer Rent-Free Periods
Some nine out of 10 office tenants in Hong Kong are expecting longer rent-free periods from their landlords as more than a quarter of the city’s companies intend to shrink their real estate footprint over the next 12 months, according to a Colliers survey.
The ratio was the highest since the consultancy relaunched the annual survey in 2023. Last year, eight out of 10 respondents were seeking such concessions, according to data from the survey, which was released Wednesday. Read more>>
Hong Kong High-End Home Sales Boosted by Upswing in Bargain Deals
Sales of villas, bungalows and luxury homes in Hong Kong soared to a three-year high in the first six months of the year, as an influx of wealthy immigrants fuelled the hunt for bargains on the top end of one of Asia’s priciest residential property markets.
There were 286 registered transactions of villas in the first half, a jump of 23.3 percent from the same period last year, according to data provided by Centaline Property, one of the largest real estate agencies in the city. Read more>>
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