Sunac chairman Sun Hongbin can’t bear to look at his 2021 results (Getty Images)
In today’s roundup of regional news headlines, Sunac China seeks an 18-month extension to redeem an onshore bond, as the developer and five rivals face an indefinite trading suspension on the Hong Kong stock exchange. In Singapore, meanwhile, an ultra-luxury penthouse unit changes hands for $44 million.
Sunac China Asks to Extend Payment of $629M Bond by 18 Months
Sunac China said Wednesday that it would hold an online meeting with holders of a RMB 4 billion ($629 million) bond, seeking to extend principal payment due on Friday by 18 months.
Hong Kong-listed shares of Sunac, China’s No.3 property developer by sales, jumped more than 21 percent on Wednesday afternoon, versus a 7 percent rise in the Hang Seng Mainland Properties Index. Read more>>
Six Chinese Developers Face Indefinite Trading Suspension
With the 31 March reporting deadline looming, 14 Chinese developers have yet to release their audited earnings for last year, blaming it on the pandemic and their debt woes.
Six of them will see their shares suspended from Friday until further notice because of their inability to even report unaudited results. That list includes China Evergrande Group, China Aoyuan Group, Kaisa Group Holdings, Fantasia Holdings Group, Modern Land China and Sunac China Holdings. Read more>>
Penthouse at Shun Tak Singapore Project Sells for $44M
A 12,066 square foot (1,121 square metre) penthouse at ultra-luxury freehold condominium Les Maisons Nassim has sold for S$59.77 million ($44.3 million) or S$4,953 per square foot.
Developer Shun Tak Holdings had negotiated and agreed upon the price of the unit at a nascent stage of the project in early 2021, associate director Joanne Goh told the Business Times. Read more>>
China Shadow Banks Buy Projects to Bail Out Own Investments
China’s shadow banks are emerging as unlikely white knights for embattled property firms by becoming mini-developers themselves.
Trust companies including MinMetals Trust and Zhongrong Trust have bought stakes in at least 10 real estate projects this year, betting that the unfinished homes will eventually yield cash to pay off some of the $280 billion in property-backed funds sold by trusts to investors. Read more>>
CapitaLand-Backed Flex Operator to Launch Centre in Sydney Tower
One of Singapore’s leading co-working operators is launching in Australia through a partnership at Sydney’s newest prime office building, the 49-storey Quay Quarter Tower, with plans to use it as a springboard to become a local top-five player.
The Work Project, operator of 10 co-working sites in Singapore and another in Hong Kong, will manage 4,300 square metres (46,285 square feet) over levels two and three of Quay Quarter Tower, which is due to reach practical completion in two weeks. Read more>>
China Vanke Reports 46% Drop in Profit
China Vanke, the country’s No.2 property developer by sales, said Thursday that it expects net profit to stabilise in 2022 after chairman Yu Liang apologised to investors for the 45.7 percent slump seen last year.
Vanke reported a net profit of RMB 22.5 billion (S$4.8 billion) for 2021, down from RMB 41.5 billion a year earlier, dented by lower gross profit margins in the development business, a drop in investment income and the provision for asset impairment losses. Read more>>
Hong Kong Property Market Expected to Remain Weak in Q2
Midland Holdings said Hong Kong’s social distancing policies would weigh on property market sentiment through the first six months, after the city’s sole publicly traded real estate agency posted its third annual profit slump in four years.
Net income fell 24 percent to HK$100 million ($12.8 million) last year, without the one-off employment support scheme that had helped it swing to profit in 2020. Revenue, 99 percent contributed by agency fees, rose 20.5 percent to HK$6 billion, the company said in a statement to the stock exchange. Read more>>
Singapore Private Housing Resale Prices Held Steady in February
The Singapore Residential Price Index increased by 0.1 percent in February compared with the previous month, easing from the 0.5 percent growth logged in January, based on flash estimates released on 29 March.
The SRPI, tracked by the Institute of Real Estate and Urban Studies at the National University of Singapore, measures price movements of private non-landed residential properties in the city-state. Read more>>
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