Banks Seen Intensifying Hong Kong Property Seizures and More Asia Real Estate Headlines

PwC says banks are likely to take more action on Hong Kong’s distressed buildings, with that story leading Mingtiandi’s headline roundup today. Also making the list, India’s RMZ and the Canada Pension Plan Investment Board complete a $264 million Chennai office sale and Singapore’s Wing Tai expects a net loss for fiscal 2024.

PwC Says Banks Set to Seize More Hong Kong Buildings

Banks are expected to take more enforcement actions on distressed buildings amid Hong Kong’s property market downturn, according to PricewaterhouseCoopers.

That’s based on the estimate of the firm’s partner Christopher So, whose team oversees a portfolio of real estate under receivership valued at more than HK$10 billion ($1.28 billion). Read more>>

CPPIB, RMZ Confirm $264M Chennai Office Sale to Keppel

RMZ Corporation, one of India’s largest family-run alternative asset owners, and the Canada Pension Plan Investment Board have completed the sale of One Paramount 1 in Chennai to Singapore-based Keppel for $264 million.

One Paramount 1 is part of One Paramount, a Grade A office complex in Tamil Nadu’s state capital. Developed by a joint venture of RMZ and CPPIB, the asset is spread across 12.6 acres (5 hectares) of land with 2.4 million square feet (222,967 square metres) of leasable space. Read more>>

Wing Tai Warns of Full-Year Loss

Wing Tai Holdings expects to report a net loss for fiscal 2024, the Singapore-based property group said.

The fair-value losses on investment properties and the impairment losses on development properties are non-cash in nature. The financial position of the group remains healthy with a low net gearing ratio of 0.07 times as of 30 June, it said. Read more>>

China Asks State Firms to Drop PwC

Chinese regulators have in recent months asked several large state-owned clients of PricewaterhouseCoopers to drop the auditor as it braces for penalties over its work for troubled developer Evergrande, said two sources.

The regulators, mainly the Ministry of Finance, have given so-called “window guidance”, or unofficial, verbal instructions to big state-owned financial institutions since at least April, said the sources who declined to be identified discussing confidential information. Read more>>

Singapore Luxury Condo Sales Recovered in Q2

Sales for luxury condominiums picked up in the second quarter of 2024 with the gradual return of the ultra-rich in Singapore after three quarters of decline, agents reported.

According to data analysed by Huttons Asia, luxury non-landed homes saw steady demand in Q2, with 57 units worth S$5 million ($3.7 million) each or more changing hands. While this was 7.5 percent higher than in the previous quarter, it was still 9.5 percent lower than in the year-earlier period. Read more>>

Lendlease Global Commercial REIT Distributions Decline 21%

Lendlease Global Commercial REIT posted a distribution per unit of S$0.0177 ($0.013) for the second half of financial 2024 ended 30 June, down 21.2 percent year-on-year..

The lower DPU was primarily due to higher borrowing costs amid an elevated interest rate environment, expired hedges being refinanced at higher rates, and an enlarged unit base, the Singapore-listed trust’s manager said Monday. Read more>>

SGX-Listed Elite UK REIT Distributions Fall 19.5%

Singapore-listed Elite UK REIT’s distribution per unit for the first six months of the year fell 19.5 percent year-on-year to £0.014, based on a 90 percent payout ratio.

The manager of the trust on Wednesday said half-year revenue totalled £18.6 million ($23.6 million), down 0.6 percent year-on-year. Read more>>

Hong Kong Luxury Home Sales Reached 2.5-Year High in H1

Sales of luxury homes in Hong Kong jumped in the first half of this year amid promotions by developers and government stimulus policies.

The number of luxury residential properties that sold for more than HK$20 million ($2.57 million) reached a two-and-a-half-year high in the six months ended 30 June, according to data released by Centaline Property Agency on Monday. Read more>>