In today’s roundup of regional news headlines, a unit of developer Shimao defaults on a $101 million project loan, Japan’s Mitsui Fudosan enters a deal to buy a London development site, and Kaisa bondholders seek advice on a potential financing deal with the group.
A Shanghai construction materials supplier with links to Shimao Group has defaulted on a $101 million project loan guaranteed by the Hong Kong-listed company, adding to its recent debt burden.
Shanghai Shimao Construction failed to repay the proceeds as a guarantor for a project that raised funds for Shanghai Qianyi Construction Materials, according to a notice sent to investors on Thursday by China Credit Trust, the trustee for the loans. Read more>>
A joint venture of Mitsui Fudosan UK, the British subsidiary of Japan’s largest real estate company, and European real estate developer Edge has agreed to acquire a 1 acre (0.4 hectare) island site near the new Liverpool Street station of London’s Elizabeth Line.
The partnership will deliver an ESG-compliant building boasting the highest levels of sustainability and well-being, integrating smart technology, innovative design and the use of repurposed materials, the companies said. Read more>>
An advisor to a group of Kaisa Group Holdings bondholders is close to signing non-disclosure agreements with the developer in a move that would pave the way for discussions around a potential financing deal for the beleaguered firm, according to people with knowledge of the matter.
The creditor group is being advised by Lazard. An announcement about the agreements could come as early as Thursday morning in Hong Kong, one of the people said. Lazard is seeking more bondholders to join the group. Read more>>
Shares in Future Group companies jumped Thursday after an Indian court halted arbitration proceedings between the conglomerate and estranged partner Amazon.
A two-judge bench of the Delhi high court on Wednesday agreed with Future Group that there was no legal basis for the arbitration between the two sides to continue, given that India’s antitrust agency had suspended a key 2019 deal used by Amazon to assert rights over Future. Read more>>
China called on banks to boost real estate lending in the first quarter and eased a key debt restriction for developers, a sign that authorities are becoming increasingly concerned about the industry’s liquidity crisis.
In previously unreported window guidance issued last month, regulators told banks to step up lending to developers after at least two quarters of consecutive declines, people familiar with the matter said, asking not to be identified discussing private information. At the same time, borrowing by major property firms used to fund mergers and acquisitions will no longer be counted toward the “three red lines” metrics that limit debt, the people said. Read more>>
Hong Kong’s Housing Authority will have to double its construction expenses to cope with an expanding public housing programme beginning in 2026, the authority’s finance committee chair has warned.
But its cash flow could be constrained by a scheme floated this week by Hong Kong leader Carrie Lam to make mortgages more affordable, a professor from the school of business at Chinese University told a press conference on Thursday. Read more>>
The independent directors of the manager of Singapore-listed First REIT have recommended that unitholders vote in favour of the acquisition of 12 nursing homes in Japan from OUE Lippo Healthcare and a separate S$30.6 million ($22.5 million) settlement for cancelled works.
In a bourse filing on Thursday, First REIT’s manager issued a notice of an extraordinary general meeting to be held on 28 January, when the trust will seek approval for three resolutions related to the Japan expansion and one resolution for the settlement, which is for the terminated development works adjacent to Siloam Hospital Surabaya in Indonesia. Read more>>