London office values have been in freefall since Ho Bee’s 2022 buy of the Scalpel
SGX-listed developer Ho Bee Land leads today’s roundup of real estate headlines with a warning of losses on the way in its 2023 results as the country’s property woes seep into industrial markets. Also making the news, China’s real estate investment trusts are continuing their downward slide and Malaysia has signed an MOU with Singapore to jointly develop a Special Economic Zone in its Johor state.
Ho Bee Land Guidance Points to Losses on London Portfolio
Singapore’s Ho Bee Land informed the Singapore Stock Exchange late Thursday that the company expects its losses to widen due to changes in value of its London portfolio.
The developer drew international attention in 2022 when it acquired the Scalpel office building in London for £718 million (then $972 million), and posted a net loss of S$155.7 million for the six months ended 30 June of last year. Read More>>
China REITs Plumb Record Lows as Economic Gloom Lingers
China’s real estate investment products are tumbling, extending last year’s slump as investors lose hope for a recovery in the economy and property assets such as industrial parks and logistics hubs.
Chinese REITs, which issue shares to investors against a portfolio of real estate holdings, have hit successive lows in the first few days of 2024. Read more>>
Singapore, Malaysia Ink MOU on Johor-Singapore Special Economic Zone
Singapore and Malaysia have signed a memorandum of understanding to work on the Johor-Singapore Special Economic Zone (JS-SEZ), paving the way for improved cross-border flows of goods and people, as well as increased investment.
Separately, both sides are exploring initiatives such as a passport-free QR code clearance system at the land checkpoints to facilitate more efficient clearance of travellers. Read more>>
South Korea to Step Up Monitoring of Real Estate Projects
South Korea’s financial authorities will step up monitoring of real estate projects, the finance ministry said in a statement on Friday.
There are lingering concerns over real estate projects, although financial markets have been stable since builder Taeyoung’s 28 December announcement to reschedule its debt, it said, after the minister’s meeting with chiefs of the central bank and regulatory agencies. Read more>>
Guangzhou R&F Pays Bondholders in Kind
Chinese developer Guangzhou R&F Properties announced to bondholders that all interest payable on the 2025, 2027 and 2028 USD notes issued by its subsidiary Easy Tactic Limited will be paid in kind, according to a Thursday report by The Paper.
This payment method is set to increase the outstanding principal of the three notes by approximately $206 million, as of the payment date of 11 January. Read more>>
China Cities Buy Housing With PBOC-Tied Loans
Chinese cities have started taking advantage of low-cost funds from the country’s central bank to purchase unsold homes and convert them to rental housing, a local media report showed, several months after the policy was introduced to help address the nation’s property crisis.
Major cities including Qingdao, Fuzhou and Tianjin have purchased apartment buildings for the purpose of subsidized rental housing, the Economic Observer reported Thursday, citing unidentified sources. The transactions were done via so-called rental housing loans. Read more>>
Indian Developer TARC to Invest in $482M Delhi Condo Project
Luxury real estate company TARC Ltd said on Thursday that it will develop a 1.7 million-square-foot (157,935-square-metre) luxury housing project in central-west Delhi with an expected potential revenue of INR 40 billion ($482 million).
The developer will invest INR 12 billion to build the TARC Kailasa luxury housing project in the national capital. The 3-bedroom and 4-bedroom luxury housing units will be priced between INR 90 million and INR 120 million per flat. The size of the units will vary from 3,440 square feet (319 square metres) to 4,246 square feet. Read more>>
China Jiayuan Loses Winding-Up Case in Hong Kong
Jiayuan International Group, the developer of Hong Kong flats so small they inspired the coining of the term “micro flats”, is inching closer to its corporate demise after record interest rates weighed on its debts following poor sales of its minuscule apartments.
The Nanjing-based developer lost a winding-up case over a HK$14.5 million ($1.85 million) debt in Hong Kong last May. It said in a filing on Thursday that the Hong Kong High Court appointed liquidators from Deloitte Touche Tohmatsu, who will take over from a provisional liquidator appointed at the time of the decision. Read more>>
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