New World chairman Henry Cheng wants to rework some loans (Image: New World Development)
Troubled Hong Kong builder New World Development seeks to refinance billions of dollars in loans by the end of next month, with that report leading today’s headline roundup. Also in the news, gaming giant MGM gives Thailand casino advice and a Brookfield-backed hotelier downsizes its India IPO.
Hong Kong’s New World Asks Banks to Refinance $11B in Loans by June
New World Development has asked banks to refinance HK$87.5 billion ($11.2 billion) of its loans by the end of June, according to people familiar with the matter, as the cash-strapped Hong Kong builder seeks to quickly shore up its liquidity.
The urgency stems in part from the expiration next month of a covenant waiver on New World’s existing loans, two of the people said, asking not to be identified discussing private matters. If the waiver expires before a refinancing deal, some banks could demand immediate repayment, though that scenario is unlikely, the people added. Read more>>
MGM Urges Tax Cut, Local Access to Pave Way for $5B Bangkok Casino
Thailand should have a casino tax rate that is competitive with Singapore and a substantial number of locals should be allowed to visit casino complexes, rather than solely serving foreign tourists in order to stimulate tourism and economic growth, says MGM Resorts International.
The operator is interested in investing in up to a $5 billion casino facility in Bangkok. Ed Bowers, president of global development at MGM Resorts, said new countries embracing integrated resort investments need to be competitive with other countries in the region, especially in terms of casino tax rates. Read more>>
Brookfield-Backed India Hotel Chain Downsizes IPO by 30%
Schloss Bangalore, the owner of Indian luxury hotel chain The Leela, is seeking a valuation of up to $1.7 billion after cutting its initial public offering size by 30 percent due, in part, to a smaller debt load, it said Wednesday.
Schloss set a price band of INR 413 to 435 per share for the downsized $409 million IPO, valuing the company at INR 145 billion ($1.7 billion) at the upper end of the band. Schloss is selling shares worth INR 25 billion in the IPO, about 17 percent less than originally planned, while Brookfield Asset Management is selling shares worth INR 10 billion, or about 8 percent of its overall stake, the IPO prospectus showed. Read more>>
New World Drags HSBC, Other Hong Kong Banks Into Riskier Territory
HSBC and its fellow lenders have a task ahead of them with New World Development. The money-losing Hong Kong property group wants to refinance $11 billion in loans, but CEO Echo Huang has yet to reverse a four-year revenue slump. The banks have to weigh up the borrower’s problems against the pain a default could inflict on the rest of their property exposure in the city.
The shrinking top line forced the troubled developer to report its first net loss in two decades last year. There’s likely to be a repeat this year: in February, less than three months after taking over as CEO, Huang had to unveil a six-month net loss of HK$6.6 billion ($852 million) as the continuing property slump and high interest costs ate into the bottom line. New World’s total debt amounted to HK$146 billion at the end of 2024, against HK$22 billion of cash. Read more>>
CapitaLand Ascott Trust Prices $201M in Perpetual Securities
Hospitality player CapitaLand Ascott Trust has priced S$260 million ($201.2 million) in perpetual securities at 4.2 percent, it announced Wednesday. The issuance is expected to be on or around 28 May.
The move is part of CLAS’s S$2 billion multicurrency debt issuance programme established in September 2009. OCBC has been appointed the lead manager and bookrunner in the latest issuance. Read more>>
Details Emerge on Tokyo Drug Arrest of Raysum Founder
Tokyo Metropolitan Police last week arrested the founder of real estate investment company Raysum and two women over the alleged possession of illegal drugs in a luxury hotel room in Chiyoda ward last year.
As previously reported, police found Tsuyoshi Tanaka, 60, to allegedly be in possession of 0.859 grams of cocaine and 0.208 grams of methamphetamine together with Miho Okumoto, 32, and Mona Konishi, 21, in a room of the hotel on 24 June. Police have not revealed whether the suspects admit to violating the Narcotics Control Act and the Stimulants Control Act. Read more>>
Philippine Telco Fails to Find Buyer for Stake in Data Centre Unit
Philippine telecom PLDT is no longer pursuing the partial sale of its data centre business and is instead focusing on growing the segment.
Chairman Manuel V Pangilinan told reporters last week that PLDT had ended the talks with potential buyers of Vitro Inc, the subsidiary said to be worth $1 billion. PLDT had held talks with CVC Capital Partners and NTT but nothing came of them. Read more>>
Family Office of Macau Casino Kingpin Lawrence Ho Invests in Real Estate Agency
Black Spade Capital, the family office of Macau casino billionaire Lawrence Ho, has invested in IFCX, a Hong Kong-based real estate brokerage group that aims to pool at least $5 billion in capital from Asian clients for investments in emerging markets.
IFCX operates Asian Bankers Club, a direct investor sales company, Knightsbridge Partners, an agent for developers, and Easy Pro, a letting and property management agency that also provides global residency solutions. Read more>>
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