Hong Kong’s Parkview Could Default on $940M Loan and More Asia Real Estate Headlines

Hong Kong-based Parkview Group is nearing default on a $940 million loan linked to a mall in central Beijing, with that story leading today’s headline roundup. Also making the list, Singapore’s Keppel acquires a subsea cable firm and Australia’s Star stands by a casino deal struck with the group’s Hong Kong partners.

Hong Kong’s Parkview Has a Week to Avert Default on China Mall Loan

Cash-strapped builder Parkview Group has until 17 March to avoid a potential default on a $940 million loan tied to a landmark mall complex in Beijing, according to people familiar with the matter.

Parkview’s interest reserve account — funds set aside to service charges on the loan — is about RMB 20 million ($2.8 million) short of the amount required to be maintained at all times, said the people, who asked not to be named discussing private matters. The borrower on 6 March had used the funds to partly settle the facility’s quarterly interest payment of roughly RMB 55 million, the people said. Read more>>

Singapore’s Keppel Buys Subsea Cable Firm GMG Group

Singapore-based Keppel announced Monday that its flagship infrastructure fund has acquired a 100 percent stake in Global Marine Group, which provides maintenance, emergency repair and installation services for fiber-optic cables worldwide.

The company said the deal is the first investment of its Keppel Infrastructure Fund, formerly known as Keppel Asia Infrastructure Fund II. GMG, based in the UK, has been sold by investment affiliates of JF Lehman & Co to KIF and its co-investor for an undisclosed amount. Read more>>

Australia’s Star Sticking to Sale of Brisbane Casino to FEC, Chow Tai Fook

Star Entertainment favours offloading its Queen’s Wharf precinct in Brisbane to its Hong Kong partners despite an 11th-hour rescue offer from US-based casino group Bally’s Corp.

Bally’s, headed by New York hedge fund manager Soo Kim, is offering to recapitalise Star with A$250 million ($157 million) under a deal in which it would take control of the company. Star sees the Bally’s unsolicited offer as a positive because it underscores continued interest in the company, but it is unlikely to derail the Queen’s Wharf deal and a new refinancing proposal unveiled last week to keep the business afloat. Read more>>

Korea’s NPS Could Lose $692M in Hypermarket Bankruptcy

South Korea’s National Pension Service, the nation’s biggest institutional investor, could lose more than KRW 1 trillion ($692 million) from its investment in Homeplus Co, a major local hypermarket chain operator hamstrung by a financial crunch.

According to investment banking sources, NPS invested KRW 600 billion in redeemable convertible preferred shares of Homeplus in 2015, when MBK Partners acquired a 100 percent stake in the retailer for KRW 7.2 trillion from British retailer Tesco. Read more>>

IGIS Marketing Seoul Office Complex for $700M

IGIS Asset Management has put Kumho Petrochemical Group’s headquarters building, Signature Tower in central Seoul, up for sale in a deal expected to fetch more than KRW 1 trillion ($700 million), marking one of South Korea’s largest commercial property deals this year.

According to investment banking sources, the South Korean real estate investment firm has begun the sale process, issuing requests for proposals to real estate advisory firms. A sales advisor will be selected next month, with bidding expected to begin in the first half. Read more>>

GIC India Joint Venture to Invest $690M in Gurugram Commercial Space

A commercial real estate joint venture between Singapore sovereign fund GIC and India’s DLF is set to invest INR 60 billion ($690 million) in the development of 7.5 million square feet (696,773 square metres) of premium office and retail space in Gurugram, according to an announcement.

DLF Cyber City Developers Ltd is developing its DLF Downtown Gurugram project to capitalise on rising demand for high-quality, green commercial properties in the city in northern India’s National Capital Region. Read more>>

Tokyo Home Prices Hit New Record in February

The average listing price of new houses in Tokyo rose 2.4 percent in February from the previous month to a record JPY 78.59 million ($534,000), driven largely by demand for homes within an easy commute to the heart of the city, a survey found.

The survey, conducted by consultancy Tokyo Kantei, looked at new detached houses in Tokyo’s 23 wards on plots of 50 square metres (538 square feet) to less than 100 square metres and within a 30-minute walk or 20-minute bus ride to the nearest train station. Read more>>

Singapore Builders Sell Over 1,000 Homes in Single Weekend

Singapore homebuyers snapped up 1,150 new condo units over the weekend, with Lentor Central Residences claiming the top spot and executive condo project Aurelle of Tampines following hot on its heels, while residential tower Aurea had a more muted showing.

Excluding executive condominiums, the weekend tally buoys home sales for the first three months of the year to more than 3,200 units, marking the highest first-quarter sales since 2021, said Huttons Asia CEO Mark Yip. Read more>>

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