Wang Jianlin’s Wanda is in the news again for its credit challenges
Credit is at the top of the news today as China’s top commercial developer has its paper downgraded to junk status, while Moody’s makes reassuring noises about some of the mainland’s other leading developers, despite a housing slowdown. Further south, a Singapore commercial site has attracted a top bid of $1.62 billion, and there’s much more, if you just keep reading.
S&P Cuts Dalian Wanda Credit Rating Cut to Junk
Dalian Wanda Group Co’s biggest unit had its credit rating cut to junk by S&P Global Ratings, raising the risk of higher borrowing costs overseas just as the Chinese conglomerate grapples with greater regulatory scrutiny.
S&P lowered its score on Dalian Wanda Commercial Properties Co to BB, two steps below investment grade, from BBB. The move comes after Wanda agreed in July to sell the bulk of its theme parks and hotel assets to Sunac China Holdings Ltd and Guangzhou R&F Properties Co. Wanda Commercial’s dollar bonds due in 2024 dropped the most in a month. Read more>>
GuocoLand’s S$1.62B Bid Tops Offers for SG Commercial Site
Developers were ready to pay big bucks for a prime Beach Road commercial site, with the top offer coming in at a bumper $1.622 billion, it was announced yesterday.
All five offers were well above the initial trigger price for the 99-year leasehold site. The top $1.622 billion bid was lodged by GuocoLand units GLL Prosper and GLL Thrive, the Urban Redevelopment Authority said yesterday. Read more>>
UOL Group Buys SG Home Site for S$201M
AN associate company of UOL Group is set to purchase en bloc freehold property Nanak Mansions for S$201.08 million after putting in the winning bid in a tender.
Nanak Mansions, located at 92-128 Meyer Road, occupies an area of about 10,185 square metres. The freehold site, with a gross plot ratio of 1.4 based on 2014 Master Plan, is earmarked for residential development. Read more>>
CSCEC US Unit Tops Out New York Condo Project
Strategic Capital LLC, the New Jersey-based real estate investment arm of China State Construction Engineering Corp., held a topping out ceremony for the final piece of its sprawling development along the Hudson River waterfront in Yonkers.
Hudson Park, the 16-acre development overlooking the Palisades along the Hudson River, has entered the final stages of construction with a 230,000-square-foot, 213-unit tower. The $85 million tower, called Hudson Park River Club, will include studios and one- and two-bedroom apartments. Read more>>
Korean Pension Fund Targets European Student Housing
Student housing in Europe and Australian infrastructure are luring global funds out of their comfort zone, as a South Korean manager of local government employee savings joins peers around the world getting creative overseas in search of better returns.
Institutional investors from Seoul to New York are increasingly on the prowl for alternative assets, as low interest rates at home make it harder to meet promised payouts. Read more>>
Chinese Developers Face 2018 Credit Crunch
A wave of local-currency debt coming due next year alongside new stricter lending rules are bearing down on China’s developers and posing a risk to the country’s economy.
The twin threats combined with a widely expected property market slowdown portend a shift in fortunes for many home developers after they rode a housing boom and strong profits in this year’s first half. Read more>>
Moody’s Sees Improving Credit for Mainland Developers Despite Market Slowdown
Moody’s Investors Service says that China’s residential property prices have cooled further in view of the implementation of tight controls in major cities since September 2016 aimed at curbing price rises by dampening investment and speculative activity.
“Price growth in tier 1 and 2 cities is likely to remain muted in the next 6-12 months as the current tight regulatory measures are unlikely to see any loosening,” says Kaven Tsang, a Moody’s Vice President and Senior Credit Officer. Read More>>
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