Wang Jianlin may not have picked the best time for mainland developer IPO
In today’s roundup of regional news headlines, a report throws doubt on the planned Hong Kong IPO of Dalian Wanda’s mall unit, Chinese developer Logan makes an interest payment on an ailing bond, and private equity major KKR backs an industrial property fund in Australia.
Wanda’s Mall Unit Said to Delay $3B Hong Kong IPO
Chinese conglomerate Dalian Wanda Group has put a planned Hong Kong initial public offering for its shopping mall unit on hold, according to people familiar with the matter.
Zhuhai Wanda Commercial Management Group has delayed the listing due to recent market volatility, the people said, asking not to be identified discussing private information. Challenging conditions in China’s real estate sector have also affected the firm’s IPO prospects, one of the people said. Read more>>
Logan Reportedly Makes Interest Payment Amid Liquidity Crunch
Chinese property developer Logan Group has paid interest on a US dollar bond, two sources with knowledge of the matter said, clearing a debt hurdle as the company struggles with a liquidity crunch and weak investor confidence.
The company has made a $9.66 million semi-annual interest payment on its $280 million 6.9 percent June 2024 bond that was due Wednesday, the sources said. The bond’s price has dived in recent weeks to around 15 cents on the dollar, yielding over 130 percent, amid plummeting faith in Logan’s ability to service its debts. Read more>>
KKR Backs Centennial Industrial Fund in Australia
Busy Sydney fund manager Centennial Property Group is tapping into the commercial real estate zeitgeist, putting together a A$650 million ($475 million) vehicle, backed by private equity giant KKR, that will develop and hold warehouse and logistics sites.
The past two years of the pandemic, and the accompanying surge in e-commerce, has turned the once-staid asset class of industrial property into the sector’s “new black”. Yields from industrial real estate are now sharper than for the best city office towers, and the boom shows no sign of slowing. Read more>>
IGIS Consortium, Mirae Said Shortlisted in Bidding for Seoul IFC
The race over the $3.5 billion International Finance Center at the heart of the Yeoui-do financial district in Seoul has come down to two contestants: a consortium led by IGIS Asset Management and Mirae Asset Management.
According to investment banking sources on Monday, sale advisor Eastdil Secured last month shortlisted IGIS Asset Management-Shinsegae Property Consortium and Mirae Asset Management as eligible for the final round of bidding. Read more >>
China Orient Issues $1.6B Bond Targeting Distressed Property Assets
China Orient will accept subscriptions for its three-year onshore bond, carrying a coupon of 2.5 percent to 3.5 percent, on Friday, with the proceeds to be used to “help with the disposal of bad assets and resolve financial risks in the property market”, according to a filing to the National Interbank Funding Center.
It is the first bond sale by one of China’s five big asset management companies to support the nation’s RMB 18 trillion ($2.8 trillion) housing market. Read more>>
Chinese Resources Buys Property Management Unit From Yuzhou
China’s private property developers have accelerated the sales of assets to state-owned enterprises amid a deepening debt crisis, despite the recent easing measures introduced by the government.
Hong Kong-listed Yuzhou Group Holdings said late Tuesday that it had entered a formal agreement with a subsidiary of China Resources Mixc, which is controlled by state-owned China Resources Land, to sell its property management services company for RMB 1.06 billion ($168 million). Read more>>
Web Werks to Set Up Its Data Centre in Hyderabad
Web Werks has announced the acquisition of a stand-alone building that it will convert to its first data centre in the commercial business district of Hyderabad. The locality has emerged as a prominent business hub, owing to its proximity to the IT corridor of Hyderabad.
The new data centre will offer 120,000 square feet (11,148 square metres) of co-location space supported by a significant power capacity of up to 10 MVA of gross power with an expected IT load of up to 6MW. The first phase of delivery is expected to be completed by the fourth quarter of 2022. Read more>>
Singapore Court Application Filed to Recognise EHT’s Chapter 11 Plan
A Singapore court application has been filed for the recognition of the order issued by the US Bankruptcy Court to liquidate Eagle Hospitality Trust’s entities.
EHT is a stapled trust comprising Eagle Hospitality REIT and the currently dormant Eagle Hospitality Business Trust. Last October, EHT’s units in the US had filed for liquidation, with the trust’s bank lenders set to mop up the bulk of the proceeds. Read more>>
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