Shimao Said Selling $12B in Assets and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Shimao’s stock and bonds jump on reports that the embattled mainland developer is selling dozens of projects across China, while compatriot Evergrande urges holders of its offshore debt to avoid aggressive legal action over repayments.

Shimao Said Selling $12B in Assets Amid Credit Crunch

Chinese real estate firm Shimao Group is looking to sell $12 billion in assets, according to mainland news outlet Caixin, as the developer seeks to raise funds to combat its liquidity problems.

China’s property firms have struggled in the wake of Beijing’s drive in recent years to curb excessive debt in the real estate sector and rampant consumer speculation, putting massive pressure on the wider economy. Read more>>

Shimao Stock, Bonds Jump on Asset Sale Report

Shimao Group’s dollar bonds rallied and its shares surged after a report that the embattled developer has put 34 projects across China up for sale, as it seeks to raise billions of dollars amid debt repayment pressures.

One of China’s largest issuers of bonds in the offshore debt market among developers, Shimao is among those in the sector trying to use asset sales to pay bills. The industry is working through a liquidity crunch in the wake of a government crackdown on excessive borrowing and speculation in the housing market. Read more>>

Evergrande Seeks Patience from Global Investors on Repayment

China Evergrande Group has urged offshore bond holders not to adopt aggressive legal action over repayments, after a group of its overseas creditors threatened to take enforcement measures.

The developer is seeking more time from overseas investors to fully consider uncertainties and risks in order to make a debt risk disposal plan that will protect the interests of various parties, the company said Tuesday. Evergrande is drafting a detailed and effective debt restructuring plan and actively maintaining dialogue with offshore creditors, it added. Read more>>

Apartment Prices in Tokyo Pass Bubble-Era High

The price of new apartments in Tokyo toppled a 30-year-old record in 2021 as rising demand from dual-income households and increasing construction costs boosted the Japanese capital’s once-moribund housing market.

The mean price of new condos in the Japanese capital and surrounding areas hit JPY 62.6 million ($550,000) last year, topping the JPY 61.2 million high-water mark set in 1990 at the peak of the economic bubble, according to figures released Tuesday by the Real Estate Economic Institute. Some market watchers expect the surge to continue this year. Read more>>

Developer Wins 30-Year Struggle to Build Homes on Hong Kong Wetland 

A Hong Kong developer that battled for three decades for the right to build homes on an ecological wetland site has urged the government to issue a strong town planning directive to override discord between departments and solve the city’s housing problem.

Wan Man-yee, a veteran surveyor and consultant for KHI Holdings, said the appeal panel of the Town Planning Board had noted that conflicting views between planning and conservation officials had caused “unnecessary delays and costs” over the past decade. Read more>>

Hong Kong Developer Seeks Medical Tenants for Causeway Bay Tower

H Development Holdings is seeking to lease a purpose-built tower, the first of its kind in Causeway Bay, as the privately owned property firm believes that Hong Kong has the potential to become a medical tourism destination for the Greater Bay Area.

The company has invested HK$600 million ($77 million) in Health Aura on Keswick Street, which has a gross floor area of 30,000 square feet (2,787 square metres). The redeveloped property, which is about a five-minute walk from St Paul’s Hospital, will be available for lease soon. Read more>>

Keppel DC REIT’s 2021 H2 Distributions Up 2.8%

The manager of Keppel DC REIT has brushed aside concerns over the potential impact of new data centre supply in Singapore, as the government mulls the lifting of a moratorium on the development of new facilities that has been in place since 2019.

“Even if the data centre moratorium is lifted today, the new data centres will take some time to be built,” said Anthea Lee, chief executive of the trust’s manager. “And there may be more rules and regulations imposed to make sure that they are also in line with the sustainability efforts that the government is pushing forward.” Read more>>

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