Hong Kong’s Hang Lung Sees Profit Fall 56% and More Asia Real Estate Headlines

Hong Kong’s Hang Lung Properties leads Mingtiandi’s headline roundup today as the developer reports a 56 percent slump in net profit. Also making the news, Singapore’s Keppel REIT posts a 3.4 percent drop in distribution per unit and state-owned Temasek plans to invest $30 billion in the US market.

Hang Lung Profit Falls 56% as Hong Kong, Mainland Markets Struggle

Hong Kong developer Hang Lung Properties reported a 56 percent slump in net profit for the first half because of lower operating profits from its leasing business and higher finance costs.

The company’s shares sank as much as 15.2 percent, the most in 24 years, before erasing some losses to close 11.7 percent lower at HK$5.42 ($0.69). The stock has lost more than 85 percent since reaching a record high of HK$40.30 in November 2020. Read more>>

Keppel REIT Distributions Dip on Higher Borrowing Costs

Singapore-listed Keppel REIT’s distribution per unit fell 3.4 percent year-on-year to S$0.028 for the first half ended in June.

Property income was up 8.9 percent year-on-year at S$125.1 million ($93.1 million) during the half-year, the trust’s manager said. Read more>>

Singapore’s Temasek to Invest $30B in US Over Five Years

Singapore’s state-owned Temasek Holdings plans to invest $30 billion in the US market over the next five years as the firm remains cautious on putting money into China.

“The Americas is going to be and continue to be the largest recipient of capital,” Jane Atherton, Temasek’s head of North America, said in a Bloomberg interview Monday. Read more>>

CapitaLand China Trust Distributions Drop Nearly 20% on Lower Revenue

The manager of CapitaLand China Trust on Tuesday announced that the REIT’s distribution per unit fell 19.5 percent year-on-year to S$0.0301 for the first half ended in June.

The result stemmed from lower revenue, which came in at S$173 million ($128.8 million), down 6.3 percent from a year earlier. Read more>>

Evergrande NEV Creditors Sue for Bankruptcy

China Evergrande’s New Energy Vehicle Group has been served a bankruptcy and reorganisation notice by its creditors, in another sign of deepening troubles facing the electric car unit of the insolvent developer.

Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong), two subsidiaries of Evergrande NEV, received the bankruptcy petition filed in the local provincial courts on Friday, which could have a “material” impact on production and operations, the company said in a filing to the Hong Kong stock exchange late Sunday. Read more>>

Sun Hung Kai Tweaks Hong Kong Project Designs Amid Sales Slump

Sun Hung Kai Properties said it would tweak the design of its housing project in Hong Kong’s Tuen Mun district for the second time, as it buys time before adding to the city’s inventory of unsold homes amid a worsening property slump.

The project, developed with Hanison Construction Holdings, is undergoing “design changes (with) adjustments in the progress and work processes on site, (where) the temporary suspension of some of the works may not be ruled out”, according to a statement. Read more>>

Liquidators Struggle to Collect on Mainland Developer Debts

Liquidators trying to recoup at least a fraction of creditors’ investments in defaulted Chinese builders are running into dead ends.

They have encountered a host of challenges, from trying to get paid to scouring for financial documents and elusive executives, according to people with knowledge of the matter. Creditors in three cases, including Sinic Holdings Group and Yango Justice International, have not seen any significant distribution, they said. Read more>>

India’s Mindspace REIT to Invest $418M to Develop New Properties

K Raheja Corp-backed Mindspace Business Parks REIT is planning to invest over INR 35 billion ($418 million) for development of new office properties across its existing and new projects over the next three or four years.

Of this proposed investment, the REIT is looking to invest INR 9 billion to develop a new office building spread over 1.5 million square feet (139,354 square metres) at its existing operational information technology park Mindspace Airoli East in Navi Mumbai. Read more>>