Shui On Land Profit Up 37% on Surging Sales and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, mainland-focused developer Shui On Land posts upbeat first-half results as high interest rates punish Hong Kong builder K Wah. Also on the list are WeWork’s restructuring and Goldman’s China analysis.

Shui On Land Reports 37% H1 Profit Rise, Cuts Dividend

Shui On Land reported 37 percent year-on-year growth in its interim net profit to RMB 618 million ($85 million), but the Hong Kong-listed developer cut its interim dividend by 11 percent to 3.20 HK cents.

Revenue in the first six months rose 46 percent to RMB 6.43 billion from a year earlier, of which property sales soared by 90 percent to RMB 4.66 billion. Read more>>

K Wah Profit Falls by More Than Half as Higher Interest Rates Sour Market

K Wah International Holdings, the developer controlled by one of Macau’s biggest casino owners, said first-half profit declined by more than half after Hong Kong’s elevated interest rates dampened demand for homes.

K Wah’s profit attributable to equity holders fell 55.4 percent to HK$481.9 million ($61.5 million) as revenue slumped 42 percent to HK$3.1 billion, according to a Wednesday filing with the Hong Kong stock exchange. Read more>>

WeWork Taps Restructuring Advisors in Effort to Stave Off Bankruptcy

WeWork is rounding up advisors for help with a restructuring as it struggles with a heavy debt load and poor financial performance, according to people with knowledge of the matter.

The co-working giant has hired real estate advisor Hilco Global, once again tapped consultant Alvarez & Marsal and re-engaged law firm Kirkland & Ellis for advice on its options, according to the people, who asked not to be identified discussing private matters. The company is seeking to avoid a Chapter 11 bankruptcy filing and restructure its debts out of court, one of the people said. Read more>>

Goldman Says Chinese Developers Need to Liquidate $2T in Property Inventory

Plenty of pixels have been devoted to China’s property problems — especially as the grace periods on Country Garden bonds slip away.

Now Goldman Sachs has a handy Q&A out with a summary of its main analysis on the country’s property sector collapse, where the bank tries to unpack the potential implications for its financial system and markets. Read more>>

Singapore Police Ask Banks for Documents in Money Laundering Scandal

The Singapore police are waiting for documents from at least nine financial institutions in their probe into one of the biggest money laundering cases in the country.

Investigations are still at an early stage, according to public prosecutors at a court hearing on Wednesday. They argued for extending the remand of those arrested and said luxury cars and properties have been seized. Read more>>

Expat Influx From Hong Kong Could Support Singapore Residential Rents: Savills

The potential influx of expats from Hong Kong could increase Singapore’s leasing volume. This is despite the city-state’s contraction in the second quarter of 2023.

As the private residential leasing volume has been shrinking, supply is on the rise with the stock of private residential units increasing 1.1 percent from the first quarter to 398,289. The private residential vacancy rate thus expanded for a second quarter, rising 0.3 percentage points to 6.3 percent. Read more>>

Korean Investors Flee China Funds Amid Deepening Property Crisis

South Korean investors’ retreat from Chinese equity funds of nearly KRW 10 trillion ($7.5 billion) in total principal is accelerating amid deepening concerns about the world’s second-largest economy due to its escalating property crisis.

According to the investment and financial industries on Wednesday, 197 funds investing in China’s blue-chip stocks in Korea lost KRW 427.7 billion in the last month. Read more>>

Indonesians to Convert Vacant Sydney Office Tower Into Luxury Hotel

Indonesia’s ultra-wealthy Karim family has stepped up plans to build a A$500 million ($322.6 million) hotel portfolio in Australia after splashing out A$78 million for a boutique hotel in Brisbane and an office tower in the Sydney CBD that it will repurpose into luxury accommodation.

Through its local investment vehicle Invictus Developments, the Karims paid A$25 million for the five-star The Inchcolm by Ovolo, a 50-room hotel in Spring Hill, and a heavily discounted A$52.5 million for the vacant former Bank of China building at 39 York Street, near Sydney’s Wynyard Station. Read more>>

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