Evergrande chairman Xu Jiayin is marking his calendar for a September court date (Getty Images)
In today’s roundup of regional news headlines, a Hong Kong court schedules September hearings to determine the fate of China Evergrande’s debt restructuring plan, and Singapore’s GIC gathers funds for a South Korean data centre project. Also making the cut are Mandarin Oriental’s new property in Miami and Country Garden’s stock downgrade.
Hong Kong Court to Rule on China Evergrande Restructuring in September
A Hong Kong court on Monday said it will decide in September on an offshore debt restructuring for embattled developer China Evergrande that could allow creditors to recoup up to about one-quarter of what they are owed.
Evergrande, the poster child of China’s property sector crisis, has $330 billion in liabilities, making it the world’s most indebted developer. A default in late 2021 triggered a string of defaults at other builders and left thousands of homes unfinished across China. Read more>>
GIC Looks to Raise Funds for $704M South Korea Data Centre Project
Singapore sovereign wealth fund GIC is raising money for a data centre outside of Seoul.
Business Korea reports that institutional investors including GIC are collaborating with domestic institutional investors, securities firms and asset management companies to establish a data centre in Gyeonggi province’s Goyang City. The total project cost amounts to KRW 900 billion ($704.2 million), with the Police Mutual Aid Association providing KRW 30 billion through project financing loans last month. Read more>>
Mandarin Oriental to Open Waterfront Miami Property in 2030
Mandarin Oriental is to manage a new hotel and branded residences in Miami’s Brickell Key neighbourhood.
Mandarin Oriental Miami and The Residences at Mandarin Oriental Miami are expected to open in 2030. Developed by Hong Kong’s Swire Properties the new hotel and residences will become a part of the One Island Drive development. Read more>>
JPMorgan Chase Sees 35% Downside for Country Garden as Woes Mount
Shares of Country Garden Holdings are expected to drop 35 percent as liquidity concerns surrounding China’s private builders are unlikely to ease anytime soon, according to JPMorgan Chase.
The US bank downgraded China’s biggest developer and its property management unit Country Garden Services Holdings to underweight, according to a note on Sunday. It warned that government measures would not stem the decline given the sector’s weakening sales, default risks and a slowdown in refinancing support from the authorities. Read more>>
China’s Retail Landlords Offer Rental Discounts to Curb Vacancies
Landlords of shopping centres and street shops in China’s major cities are now increasingly offering rental concessions to avert higher retail space vacancies amid sluggish consumer spending.
Retail spaces located in non-CBD areas will find it difficult to maintain tenants or lure new brands in the second half of this year because many companies prefer prime locations where strong foot traffic can be guaranteed, according to property service firm JLL. Read more>>
Hong Kong Office Recovery Falters as Hopes Pinned on Insurer Demand
Hong Kong’s efforts to regain its status as an international business hub received a setback after its border reopening did not bring in enough corporate tenants as expected, with a slowing economy and higher interest rates weighing on demand for office space.
The insurance sector has become a key demand driver of office rental space as international and mainland insurers eye the influx of mainland customers. But that demand has failed to support the falling Grade A office market in the city, according to analysts. Read more>>
Suburban Executive Condo Resales Singapore’s Most Profitable in Q2
Executive condos in the suburbs accounted for four of Singapore’s five most profitable resale deals by percentage gain in the second quarter of 2023, with properties changing hands for almost double their original price.
And while prime properties chalked up the biggest absolute gains by virtue of their much higher prices, the five biggest losers in Q2 were all sales in prime areas, losing between S$300,000 and S$1.83 million ($225,928 and $1.4 million) in value. Read more>>
WeWork India Leases 400K Sq Ft in Pune from Panchshil Realty
Co-working major WeWork India has taken 400,000 square feet (37,161 square metres) of office space on lease from developer Panchshil Realty in Pune to provide managed workspace to corporate clients.
At present, WeWork India has over 6.5 million square feet of area under its portfolio across 48 locations in the National Capital Region, Mumbai, Bengaluru, Pune and Hyderabad. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
Leave a Reply