Evergrande boss Xu Jiayin has been called a defaulter by a second credit agency
In today’s roundup of regional news headlines, ratings agency S&P labels China Evergrande a defaulter and withdraws coverage of the group, mainland authorities ramp up support of the property sector by connecting banks with distressed developers, and Hong Kong’s West Kowloon is seen gaining favour as a commercial district.
S&P Tags Evergrande a Defaulter Over Failed Coupon Payments
China Evergrande Group was labelled a defaulter by S&P Global Ratings, the second credit-risk assessor to do so.
S&P Global cut Evergrande to “selective default” over its failure to make coupon payments by the end of a grace period earlier this month, a move that may trigger cross defaults on the developer’s $19.2 billion worth of dollar debt. S&P Global also withdrew its ratings on the group at Evergrande’s request. Read more>>
Chip Eng Seng to Sell CES Building in Eastern SG for $20M
Chip Eng Seng has entered a deal to sell the CES Building at 69 Ubi Crescent in Singapore to Merlions Two (BVI) for around S$28 million ($20 million), the Singapore-listed property company said in a bourse filing Friday.
“While the property has been generating a stable stream of recurring rental income, it does not contribute significantly to the group’s revenue and profitability on the whole,” Chip Eng Seng said. Read more>>
China Supports Real Estate Sector With M&A Funding, Bank Rate Cut
China is ramping up support of the embattled real estate sector as growing stress in the industry threatens to deepen an economic slowdown.
Authorities are encouraging banks to fund acquisitions of projects of distressed developers and pushing financially healthy property firms to make such purchases, the central-bank-backed Financial News reported Monday. Read more>>
West Kowloon Gains Favour With Multinational Tenants
The West Kowloon district is likely to become an important commercial district in Hong Kong in the coming years as new office space enters the market, according to analysts.
“The Kowloon station precinct serves as an extension to the core Tsim Sha Tsui office submarket but currently has only limited amount of office space, so it isn’t seen as a stand-alone office submarket for the time being,” said Marcos Chan, head of research at CBRE Hong Kong. Read more>>
Money Managers Flee Chinese Property Management Firms
Investors in Chinese property management companies, worried that their embattled real estate parent companies are using them as a bailout fund, are abandoning the once red-hot sector in droves.
A-Living Services, the nation’s second-largest operator and a unit of Guangzhou-based Agile Group, has plunged 35 percent in the past month in Hong Kong. Country Garden Services, the next biggest peer, has slumped 18 percent in the same period. Read more>>
Singapore Collective Sales Hit $1.9B But Face Speed Bump
The collective sale market has defied the trials and tribulations of the pandemic over the past 12 months, but the road ahead just got a lot bumpier, thanks to a new round of property cooling measures.
The numbers underscore the fact that 2021 has certainly had its moments: 10 collective sale sites worth S$2.65 billion ($1.9 billion) have been sold to developers so far this year, compared with deals totalling just S$127.3 million last year, JLL noted. Read more>>
Hong Kong Home Sales Have Biggest Weekend Since September
Hong Kong homebuyers snapped up 145 flats of nearly 500 units offered by five major developers as of 6pm on Saturday, marking the city’s biggest weekend sale since September in terms of number of flats up for grabs.
Henderson Land sold out all 50 flats on offer at its Caine Hill development within five hours after sales started. This project, located in Sai Ying Pun, on the western part of Hong Kong Island, had received more than 500 registrations of interest, which translates to about 10 bids on average for each available unit. Read more>>
Tata Realty to Build $658M IT Park in Navi Mumbai
Tata group firm Tata Realty and Infrastructure on Saturday announced an investment of INR 5,000 crore ($658 million) to develop a premium IT park project in Navi Mumbai, as it expects demand for office and data centre spaces to rise in the coming years.
Tata Realty and Infrastructure managing director and CEO Sanjay Dutt said the company will develop 7 million square feet (650,000 square metres) of area at the IT park project, dubbed Intellion Park, in a phased manner over the next eight years. Read more>>
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