Sunac chairman Sun Hongbin is pushing back against reports that his credit was cut
Leading today’s news, China’s most indebted developer says that the government is just fine with them borrowing even more. Also in the headlines, Hong Kong’s New World is getting more aggressive with its financing offers for new home buyers and a major credit agency sees a tough financial year ahead for mainland developers in 2018. Read on for all these stories and more.
Sunac Pushes Back at Reports of Credit Cut
Sunac China Holdings, one of China’s largest property developers, denied a media report that China Huarong Asset Management was temporarily suspending new loans to the company amid tightening regulatory scrutiny, and warned it may take legal action.
Bloomberg had reported on Tuesday that Huarong’s risk department had ordered a suspension of any new loans to Sunac that had not already been signed, effective September 18, citing an internal email its reporters had seen. Read more>>
New World Proposes Financing Scheme for Fresh Grads
New World Development Co. (NWD), one of Hong Kong’s largest property developers, is looking at launching a special scheme to help young people who want to buy their first homes.
The group is studying the feasibility of a financing scheme that will involve super-low down-payments for first-home buyers who are in the early stage of their careers, Executive Vice-Chairman Adrian Cheng Chi-kong said on Thursday. Read more>>
S&P Warns of 2018 China Developer Credit Crunch
China is set to experience a wave of maturing debt in 2018 as Chinese property developers set about a major refinancing cycle expected to last two years, according to credit rating agencies.
Real estate companies will need to roll over US$10 billion of offshore bonds and US$35 billion in onshore bonds in 2018, with a large portion of the maturities coming due in the second half of the year, S&P Global Ratings said. Read more>>
Co-Living Catches on in China
Two-year old Harbour Apartments, a network of co-living spaces for young tenants in China’s first-tier cities, has successfully raised 400 million yuan ($60.9 million) in its A-round funding, becoming one of the first long-term rental projects to win favor on the market.
The apartment units it offers can be rented from a price range of 3,000 yuan per month to 20,000 a month. Read more>>
Site of Former US Ambassador’s Residence in SG Floated for S$1B
Spring Grove condominium, in Singapore’s swanky diplomatic district, is going back on the market – three years after its first collective-sale bid failed. Home owners are confident they can net at least $1 billion, after having asked for $1.39 billion in 2014, a sale committee representative said on Thursday (Sept 21).
But selling the 325-unit Spring Grove, built on the estate of the former United States diplomatic residence, will require co-operation with the US government. Read more>>
ERA Realty Seeks New SG Listing
ERA Realty, Singapore’s second-largest real estate agency, is finally making a return to the public market after delisting in November 2012.
Apac Realty, which operates under the ERA brand, plans to raise net proceeds of about $27.1 million by selling shares at 66 cents apiece in an initial public offering (IPO) and subscription deal. Read more>>
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