Leading today’s Hong Kong real estate news, listed builder Hsin Chong Group announced it won’t pay its $300 million senior notes that were due on Friday, becoming the second Asian company after Noble Group to default on US dollar bonds this year. Also in the headlines, Swire Properties said it would begin selling the serviced apartments in its Taikoo Place development in Quarry Bay this year, just a week after it announced it was in talks to offload a pair of office towers in Cityplaza a few blocks away. And New World Development is renovating its decade-old K11 mall in Tsim Sha Tsui with a budget of HK$200 million. All these stories and more await you, if you just keep reading.
Hsin Chong Group Holdings Ltd. is set to become the second Asian company to default on its US dollar bonds this year, the latest sign of rising borrowing costs impacting weaker firms’ ability to repay debt.
The Hong Kong-listed builder anticipates it won’t pay the $300 million 2018 notes due today and has engaged with noteholders and their advisers to find a consensual solution, according to an exchange filing late Thursday. It has also engaged holders its notes due 2019 as the nonpayment on 2018 notes will constitute an event of default. Commodity trader Noble Group Ltd was the first Asian company to default on dollar bonds this year, according to data compiled by Bloomberg. Read more>
Swire Properties unveiled plans today to make Tong Chong Residences (formerly known as Taikoo Place Apartments) available for sale. “Tong Chong Residences” (栢舍) will be Swire Properties’ only residential development on the market in the Taikoo Place commercial hub. The target sales launch of Tong Chong Residences is in 2018.
Adrian To, Director, Residential at Swire Properties said, “Tong Chong Residences represents a rare opportunity to own a residential property in one of Swire Properties’ core Hong Kong developments… This initiative will allow us to generate funds for our ongoing expansion plans.” Located in the heart of Taikoo Place, the 28-storey residential building will offer 111 elegantly furnished units. Read more>>
The K11 Art Mall in Tsim Sha Tsui is to undergo a HK$200 million renovation. The renovation work at the 340,000 square foot mall is expected to be completed by the end of 2019.
The renovation aims to redesign interior zoning to optimize the use of retail space, said Rebecca Woo, operation director (HK) at K11 Concepts Ltd. Occupancy rates at the mall have stood at 100 percent since its opening in 2009. A 30 percent increase of foot traffic and sales is expected after the renovation, Woo added. Read more>>
Vincent Lo Hong-sui, the fourth oldest son of Great Eagle Holdings matriarch Lo To Lee-kwan, said some of his siblings have joined third son Lo Ka-shui against their mother’s decision to dismiss HSBC as trustee of the family trust in a court case.
Lo To held a media gathering last Friday, but only her second son Lo Yuk-sui, and youngest son Lo Kai-shui appeared on that day. Vincent Lo said this was because eldest son Anthony Lo Hong-sui and her daughter Gwen Lo Wai-ki were not at her mother’s camp anymore. Read more>>
Two core attractions at Hong Kong’s Ocean Park meant to help revive the city’s tourism sector will each miss their planned debuts in the peak summer season, the Post has learned. Construction of the HK$2.9 billion ($369.4 million) water park will not be completed until “November next year at the earliest”, according to a source familiar with the situation.
In addition, Hong Kong Ocean Park Marriott Hotel, a luxurious 471-room hotel, will not be ready to receive its first guest until the third quarter of this year, another source said. This means a delay of “at least three months” from its original scheduled opening date of June 13. Read more>>
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