Kerry Properties chairman and CEO Kuok Khoon Hua
The Kuok family’s Kerry Properties reports a 75 percent drop in full-year net profit despite rising revenue, with those results leading today’s headline roundup. Also in the news, Macquarie-backed Local acquires a Gold Coast apartment project and Chinese data centre firm GDS posts a slight loss for 2024.
Kerry Properties Net Profit Slumps 75% on Valuation Challenges
Kerry Properties net profit slumped 75 percent to HK$808 million ($104 million) year-on-year in 2024 despite revenue climbing 49 percent from a year earlier to HK$19.5 billion.
The developer controlled by billionaire Robert Kuok would have achieved a 25 percent increase in profit if not for a one-off non-cash provision for land lots held by the company in the Kwu Tung North New Development Area, non-cash impairment provision for development properties and the non-cash change in fair value of investment properties, the company said. Read more>>
Macquarie-Backed Local Takes Over Gold Coast Apartments From UBS
Australian property fund manager Local has vaulted to the top ranks of the build-to-rent scene, picking up the management of the Smith Collective site on the Gold Coast.
The sprawling apartment community, which once served as the Commonwealth Games Village, has been run by an offshoot of investment bank UBS, but the management will now switch to the Local platform. The expanding Local business, backed by Macquarie Group, has ambitions of rolling out more of its projects nationwide and already has three projects in Melbourne. Read more>>
GDS Reports $24M Loss for 2024 Despite Rising Revenue
China’s GDS Holdings reported a 9.1 percent year-on-year increase in fourth-quarter net revenue to RMB 2.7 billion, with a net loss from continuing operations of RMB 173.4 million ($24 million). Adjusted EBITDA for the quarter rose 13.9 percent to RMB 1.3 billion, with a margin of 48.2 percent.
Full-year net revenue for 2024 grew 5.5 percent to RMB 10.3 billion, with a net loss from continuing operations of RMB 770.9 million. Adjusted EBITDA rose 3 percent to RMB 4.9 billion, with a margin of 47.2 percent. The company said it focused on backlog delivery and asset monetisation in 2024 and is strategically positioned for AI opportunities. Read more>>
IGIS Marketing Commercial Complex in Seoul’s Gangnam Area
Prime office complex AP Tower and two adjacent hospitality properties in Seoul’s Gangnam district have been put up for sale in a bundled deal, according to investment banking sources.
South Korean asset manager IGIS recently sent requests for proposals to real estate advisory firms to pick the manager of the sale. In 2021, IGIS acquired AP Tower, formerly The Pinnacle Yeoksam, from Pebblestone Asset Management for KRW 175.6 billion (now $120 million). Read more>>
China’s $150B in Property Debt Restructurings Stumble
Creditors owed around $150 billion by defaulted Chinese developers always stood to get just pennies back, but many are finding that even after a debt plan is agreed it’s not necessarily a done deal.
A growing number of builders that passed a seemingly key stage of restructurings in getting court approval for their plans are heading back to square one, after fresh liquidity problems amid a prolonged property crisis made it harder for them to honour their promises. Read more>>
UBS Predicts Rapid Rebound for China’s Property Sector
UBS is predicting China’s property sector to recover sooner than previously anticipated, led by a revival in top-tier cities.
John Lam, head of China and Hong Kong property research at the Swiss bank, now expects home prices to “turn stable” at the beginning of next year, compared with an earlier estimation for the middle of 2026, according to a media briefing Wednesday. Read more>>
Canada’s Couche-Tard Takes Case to 7-Eleven Shareholders
Alimentation Couche-Tard met privately with key Seven & I Holdings shareholders as the Canadian firm ramps up pressure on the operator of 7-Eleven convenience stores to engage in takeover talks.
Along with public overtures, Couche-Tard founder and chairman Alain Bouchard met privately with some Seven & I shareholders in Tokyo last week to make the case for why they should agree to the takeover, according to people familiar with the matter, who asked not to be identified because details of the meetings aren’t public. Read more>>
Chairman of Vietnam’s Novaland Sees Net Worth Slide 92%
The net worth of Bui Thanh Nhon, chairman of developer Novaland and once among Vietnam’s richest people, has declined by 92 percent since the end of 2021 to VND 8.4 trillion ($329 million).
This week his son registered to sell 3 million shares of Novaland as his family members continue their selling of stakes that began four years ago when the company’s financial downturn began. Read more>>
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