May Tower II is located in one of Hong Kong’s posher precincts
The new financial reality of Hong Kong’s real estate developers leads Mingtiandi’s headline roundup today, with Lai Sun announcing its second major disposal in less than a month. Also in the news, China’s Ping An Insurance is said to have given HSBC’s departing CEO an unwelcome going away present and Country Garden faces its latest solvency test.
Hong Kong’s Lai Sun Selling Mid-Levels Apartments for $28M
Hong Kong’s Lai Sun Garment and Lai Sun Development are selling a pair of floors in a luxury residential tower in the Mid-Levels area for HK$215.8 million ($27.6 million), according to an announcement to the HKEX on Friday.
The floors in May Tower II on May Road are being sold to a British Virgin Islands-registered company, with the deal announced just one month after the Lai Sun entities disposed of their 10 percent stake in Hong Kong’s AIA Central office tower for $2.2 billion. Lai Sun is also reported to have been exploring the potential sale of 100 Leadenhall, an office building it acquired in the City of London for $162 million in 2015. Read more>>
Ping An Hits Departing HSBC CEO with Protest Vote at Final AGM
HSBC Holdings Plc’s largest shareholder voted against the reappointment of departing chief executive officer Noel Quinn as a director, suggesting its disruptive campaign against the lender hasn’t yet run its course.
Ping An Insurance Group lodged a protest vote at Quinn’s leadership at the shareholder meeting of Europe’s largest bank on Friday, according to people familiar with the matter. The vote came days after he surprised the business world with the announcement of his retirement. Read more>>
Country Garden Deadlines Pose First Big Test of Bond Guarantees
One of China’s most indebted developers is facing two bond payment deadlines this week that could provide the first major test for a state-sponsored programme that guarantees debt from some of the country’s biggest builders.
Defaulted developer Country Garden Holdings has payments due on Thursday on two RMB bonds with combined interest of RMB 66 million ($9.1 million). Read more>>
Chinese Cross-Border E-Commerce Firms Fuel Guangdong Logistics Demand
Rapid expansion by Chinese e-commerce companies boosted the logistics sector of the property market in the Greater Bay Area in 2023, as cross-border retailers including Temu, Shein, AliExpress and TikTok Shop scrambled to secure space to fuel their growth.
For example, PDD Holdings-owned Temu ended the year with more than 30 warehouses in Guangdong province, up from single digits at the start of the year – before the company’s successful Super Bowl campaign. Read more>>
Hong Kong Property Deals Hit Three-Year High in April
Real estate transactions registered in Hong Kong nearly doubled in April, hitting a three-year high, just months after the government took steps to revive the market.
The number of deals surged to 9,880, up 97 percent from March, to the highest level since July 2021, according to data released by the Land Registry on Friday. They included new and used homes, commercial units, parking slots and other non-residential units. Read more>>
Singapore to Convert Media Circle Commercial Land to Residential
Land zoned for business park use in Media Circle may soon be set aside for new homes, indicated an update from the Urban Redevelopment Authority on Friday.
A plot of land opposite Infinite Studios in one-north, which was previously set aside for business park use, is being proposed for residential with commercial use on the first storey. A plot ratio of 3.7 is being proposed for the squarish plot bound by Media Walk and Media Circle. Read more>>
SGX-Listed LHN Warns H1 2024 Net Profit Could Decline 28.6%
Mainboard-listed LHN warned that it expects net profit to drop 28.6 percent to no less than S$14.5 million ($10.7 million) for the first half ended 31 March 2024, from S$20.3 million in the previous corresponding period.
In a profit guidance update released on Sunday, the real estate management services company attributed the lower net profit estimate to the absence of a one-off gain from the disposal of associate Getgo Technologies and a lower gain from net investment in subleases. Read more>>
SingLand Hopes for More Demand After $118M Raffles Place Project Make-Over
Singapore Land Group will complete a major upgrade of its iconic Singapore Land Tower by the end of 2024, after three years of extensive asset enhancement works. Built in 1980, the 47-storey building in the Central Business District will see more lush green spaces, energy-efficient features, a double-glazed facade and new tenant amenity spaces after completion.
The S$160 million ($118.3 million) asset enhancement initiative already appears to be paying off. Between the fourth quarter of 2021 and Q4 2023, rents in the building have risen, checks by The Business Times found. 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.
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