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Frasers Property Earnings Drop 82% and More Asia Real Estate Headlines

2024/05/13 by Michael Cole Leave a Comment

Frasers Tower SG

Frasers Tower in Singapore (Image: Frasers Property)

The challenges of rising interest rates and falling valuations lead  Mingtiandi’s headline roundup today as SGX-listed Frasers reports some discouraging results. Lendlease also makes the list with an unhappy tax surprise and Singapore’s GuocoLand sells off its stake in a Malaysian developer.

Frasers Takes 82% Earnings Hit on Interest Rates, Fair Value Losses

Frasers Property Ltd., the developer controlled by Thailand’s richest man Charoen Sirivadhanabhakdi, posted a sharp drop in profit for the first half of its fiscal year, as it continued to bear the brunt of a global real estate downturn and high borrowing costs.

The Singapore-based property conglomerate recorded a net profit attributable to common shareholders of S$35.8 million ($26.4 million) for the six months ended March 31, it said in an exchange filing late Friday. That’s an 82% plunge from a year earlier, and compares with a S$74 million loss in the prior six-month period. Revenue slumped 20% year-on-year to S$1.55 billion. Read more>>

Lendlease Hit with $74M Tax Bill Over Sale of Senior Housing Stake to APG

Construction giant Lendlease has been hit with a mammoth tax bill by the Australian Taxation Office over its attempts to double dip on the treatment of the sale of a stake in its retirement living unit to Dutch fund APG.

The company is understood to be facing an initial A$112 million ($74 million) assessment from the tax office and could be on the hook for more than A$300 million in tax penalties, sources said. The hit comes after years of denial by Lendlease that it would face tax issues over its handling of the disposal and it could face further actions in future. Read more>>

GuocoLand Sells Stake in Malaysia’s Eco World for $45M

A subsidiary of GuocoLand has sold off its entire stake in Malaysian developer Eco World International for S$61 million ($45 million), in line with plans to focus on its key markets, the property developer said on Friday (10 May).

The stake, which was equivalent to 27 percent of Eco World’s equity, had been carried on GuocoLand’s books at S$50 million. In a separate announcement, Eco World said Flexsis, a subsidiary of KL-listed property firm Paramount Corporation, had acquired a 21.54 percent stake in the company. Read more>>

Mapletree Logistics Trust Sells Singapore Warehouse for $7.8M

Mapletree Logistics Trust is planning to sell a warehouse located in Tuas South Avenue for S$10.5 million ($7.75 million), as part of the real estate investment trust’s (REIT) efforts to refresh its portfolio.

The Reit’s trustee, HSBC Institutional Trust Services, has entered into a purchase agreement with an unrelated third-party buyer for the proposed sale of the 25-year-old warehouse, which has a net lettable area of about 5,200 square metres. Read more>>

China Country Garden Repays Onshore Coupon Within Grace Period

Embattled Chinese property developer Country Garden said in a statement on Saturday it had repaid two onshore bond coupons before the expiry of a five-day grace period, following missed payments last week.

Country Garden, which defaulted on $11 billion of offshore bonds and extended other onshore bond repayments late last year, said on Thursday it aimed to make the payment and additional interest incurred by Monday. Read more>>

Goodman Revises Earnings Upward as It Switches Shed Sites to Data Centres

Industrial property titan the Goodman Group has upgraded earnings as it rides a wave of new logistics developments and pushes more deeply in data centres around the world.

The A$65 billion ($43 billion) company has flagged that it will keep pushing into the new sector where it can grow around the world, and it is switching some proposed industrial sites over to data centre projects. Read more>>

Ping An Sells $50M in HSBC Shares After Voting Against Board Appointment

China’s largest insurer Ping An Insurance (Group) has sold HK$392 million ($50 million) worth of its shares in London-based HSBC in an apparent tantrum days after reports that the bank’s largest shareholder voted against the reappointment of the lender’s departing CEO Noel Quinn as a director.

Ping An sold 5,648,800 shares of HSBC, the largest of Hong Kong’s three currency-issuing banks, at an average price of HK$69.3074 on May 7, lowering its stake in the lender to 7.98 per cent from 8.01 per cent, according to a filing with the Hong Kong stock exchange on Friday. Read more>>

China’s Fosun Completes Refinancing of $804M Loan

Fosun International has completed refinancing of a $804 million loan due on 7 May 2024, according to an announcement by the Shanghai-based company late last week.  As part of the refinancing, the company obtained a new syndicated loan of $597 million, while the remaining was capital repaid through its own funds.

The syndicate for the $597 million loan includes Bank of China (Macau), Bank of China (Shanghai), BNP Paribas, Bank of East Asia, Commerzbank, Hang Seng Bank, HSBC, Natixis, Qatar National Bank, and Standard Chartered, according to the statement, which called the facility the largest such loan on behalf of a private Chinese company this year. 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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Filed Under: crelist Tagged With: Country Garden Holdings, Fosun International, Frasers Property, Goodman Group, Guocoland, Lendlease, Mapletree Industrial Trust, weekly-sp

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