Henry Cheng, chairman and executive director of New World Company and NWS Holdings
Hong Kong’s New World Group leads today’s review of real estate headlines from around the region, with the latest in its series of asset sales. Also making the list is Hillhouse expanding in Korea and US private equity heavyweights expanding their India credit strategies.
Hong Kong’s New World Gets Shareholder Nod to Sell Unit
Shareholders of Hong Kong’s New World Development on Thursday approved a deal to sell the company’s lucrative construction subsidiary in a buyout deal to help it cut debt.
The developer, which has one of the highest debt ratios among peers after a years-long expansion spree, would receive $2.8 billion from the sale of NWS Holdings to its major shareholder. Read more>>
Hillhouse to Up Investment in South Korea With New Hires
Hillhouse Investment Management, one of the largest private equity firms in Asia, is set to create an investment team dedicated to the South Korean market as geopolitical and regulatory risks increase in China, the PE giant’s major market, banking sources said Wednesday.
The PE firm is seeking a head, director and vice president who will be based in Hong Kong and manage investments in the Korean market, according to sources. It has spoken to many professionals in investment banks and asset management firms in Korea given its strong commitment to the market, sources added. Read more>>
Apollo, Ares Lead Private Credit Push into India Property
A push to build cities for the world’s most populous nation is attracting private credit investors to India just as troubles in China’s property sector weaken the appeal of investments there.
Apollo Global Management is exploring where it can put more cash after spending $1 billion on property investments, while Ares Management Corp says more money will flow into Indian real estate. Rules restrict bank lending to the sector, and India’s rapid urbanisation has caused an affordable housing shortage. Read more>>
TPG Completes Acquisition of Angelo Gordon
TPG on Thursday announced the completion of its previously announced acquisition of Angelo Gordon.
Moving forward, Angelo Gordon will operate as TPG Angelo Gordon, a $74 billion diversified credit and real estate investing platform within TPG. Across all platforms, TPG manages $213 billion in assets. Read more>>
Hong Kong Land Premium Revenue Shows 86% Shortfall
Hong Kong’s land premium revenue has shown a shortfall of 86 percent so far on the government estimate for 2023-24 as another site put out to tender was withdrawn because all four bids failed to meet the reserve price.
The weak market led industry experts on Thursday to ask for a review of the pricing system and the scrapping of property curbs to help revitalise the sector. Read more>>
VN Property Sales to Contract Another 15-20% in 2024: S&P
Aggregate residential sales in Vietnam are forecast to contract by 15 to 20 percent this year, following 25 to 30 percent growth last year, as developers struggle to repay debt, S&P Global Ratings said Thursday.
Strain in the property sector is spilling over to banks, the agency said in a note, adding that property exposures make up about 25 percent of banks’ total loans. Vietnam’s real estate sector has seen developers miss interest payments on debt amid a credit crunch spurred by ill-timed government measures, with the sector being the worst performer in September on the falling Ho Chi Minh City stock exchange. Read more>>
FLCT DPU Down 6.6% on Lower income, Higher Expenses
Frasers Logistics & Commercial Trust posted a distribution per unit of 3.52 Singapore cents for the second half ended September, down 6.6 percent from the year-ago period. This was mainly due to lower income and higher expenses compared with the year before, the REIT’s manager said Thursday.
FLCT’s revenue for the second half dipped 0.8 percent on the year to S$212.8 million ($156.1 million). Net property income fell 4.9 percent to S$157.1 million. Read more>>
India’s Godrej Properties Q2 Profit Rises on Robust Housing Demand
Indian developer Godrej Properties on Thursday reported a 21.5 percent rise in second-quarter profit, helped by a rise in demand for housing projects.
Consolidated net profit of the Godrej Group-owned firm rose to INR 668 million ($8.02 million) from INR 549.6 million a year ago. 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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