South Korea’s IGIS is picking up loans to Taeyoung E&C collateralised by an office building
South Korea’s IGIS Asset Management leads Mingtiandi’s headline roundup today as it agrees to buy bad loans linked to construction firm Taeyoung E&C in a debt workout plan. Also making the list, mainland new home prices squeak out a monthly increase and China Evergrande delays its 2023 annual results.
Taeyoung E&C Kick-Starts Debt Workout With Loan Sale to IGIS
Creditors to Taeyoung Engineering & Construction gave the go-ahead to a debt workout programme for the cash-strapped South Korean builder on Tuesday, with Taeyoung E&C set to sell some of its bad loans to a domestic investment firm.
According to investment banking industry sources, IGIS Asset Management will purchase KRW 60 billion ($43 million) worth of first-lien bridge loans collateralised by an office project led by Taeyoung E&C in Seongsu-dong, a trendy neighbourhood in eastern Seoul. Read more>>
China’s New Home Prices Edge Up as Secondary Market Struggles
New home prices across 100 cities in China rose nearly 0.3 percent in April from the previous month while those of second-hand homes fell for the 24th month in a row, according to China Index Academy.
The average price of newly built residential flats in 100 cities last month stood at RMB 16,355 ($2,258) per square metre, a monthly rise of 0.27 percent and a year-on-year increase of 1.08 percent, driven by the launch of some premium projects in certain cities, according to the Chinese real estate research firm. Read more>>
China Evergrande to Delay 2023 Annual Results
China Evergrande flagged a delay in publishing its annual results, as its liquidators are taking time to “ascertain the current state of affairs” of the embattled developer.
Preparation of the financial statements of the company for the year ended 31 December 2023 and the publication of the 2023 annual report have been delayed, the cash-strapped firm said in an exchange filing on Tuesday. Read more>>
Stadium Eyed in $6B Tsukiji Fish Market Site Redevelopment
Companies tasked with redeveloping the site of the iconic Tsukiji fish market in Tokyo said Wednesday that they plan to invest JPY 900 billion ($5.7 billion) in the project, which includes building a multi-purpose stadium.
The consortium, including developer Mitsui Fudosan, said it aimed to turn the location into a “gateway to Tokyo” that would draw people worldwide for sporting events and international conferences. Read more>>
South Korea’s Project Financing Exposure Reaches $145B
South Korean financial services companies and construction firms are exposed to a combined KRW 200 trillion ($145 billion) worth of potential risks related to domestic real estate project financing, a big chunk of which is falling due between 2024 and 2025, according to Samjong KPMG.
The amount is equivalent to more than one-tenth of the country’s GDP of $1 trillion. The consulting firm warned that the exposure could create negative domino effects across Asia’s No.4 economy with little signs of recovery in the domestic real estate market. Read more>>
Mindspace REIT Posts Net Profit of $15M for Q4 FY24
Mindspace Business Parks REIT reported net consolidated profit after tax of INR 1.27 billion ($15.2 million) for the quarter ended 31 March 2024. It had registered a loss after tax of INR 339 million in the corresponding quarter of the previous fiscal year, the company said in a stock filing.
The company’s net consolidated total income stood at INR 6.2 billion in the fourth fiscal quarter, up 91 percent year-on-year. Read more>>
Mubadala, Warburg In Talks With Shriram Finance to Buy Stake in SHFL
UAE-based sovereign fund Mubadala Investment Company and Warburg Pincus are in talks with Shriram Finance to acquire a controlling stake in its subsidiary Shriram Housing Finance.
Shriram Finance on Tuesday confirmed it was looking to unlock value in the housing finance arm to secure growth capital. Read more>>
Cromwell E-REIT Posts 10.2% Drop in Indicative Q1 DPU
Cromwell E-REIT on Tuesday posted an indicative distribution per unit of 3.505 euro cents for the first quarter ended 31 March 2024.
This was 10.2 percent below the 3.902 euro cents recorded in the same period a year earlier, as higher finance costs as a result of higher interest rates weighed on distributions, the trust’s manager said in a business update. Read more>>
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Note: This article has been updated to show that Cromwell E-REIT’s most recent results were for the quarter ending 31 March 2024. Mingtiandi regrets any confusion.
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