A rendering of Times China’s Times Gemini residential project in Guangzhou
Rounding out today’s regional news headlines, Times China became the latest mainland developer to default, Sunac China won a critical lifeline from its creditors, and Dutch pension fund PGGM made a new move into Asian real estate. It says it is reducing its commitments.
Times China misses bond payments as country rushes to bail out sector
Chinese developers have defaulted on a $2 bond and have stopped paying offshore bonds, the latest in arrears, despite the government’s many recent steps to ease the liquidity crisis in the sector. increase.
Times China Holdings failed to pay out coupons on $2 bills before the grace period ended within the past week, the company filed on the Hong Kong stock exchange Wednesday night. According to Times China’s circular on dollar-denominated bonds, default occurs if the company fails to pay interest within 30 days from the due date. read more>>
Domestic Bondholders Agree to $2.3 Billion Debt Rollover, Sunac Buys Time
Sunac China obtains a financial lifeline from creditors agreeing to roll over RMB 16 billion ($2.32 billion) worth of domestic bonds or 85% of all developer’s local currency debt, We helped the industry recover from the worst recession in decades.
The rollover plan was approved by bondholders at a meeting a few days ago, the fourth-largest US developer said Wednesday. On average, the extensions, which involve ten bond issuances, will take the company another 3.5 years to pay off its debt. read more>>
Dutch pension fund PGGM puts brakes on Asian property investment
Netherlands-based pension fund PGGM is slowing its Asian property allocations as part of a global brake on new investments in its €18 billion ($19.07 billion) global property portfolio.
Marten Jennen, senior director and private real estate strategist at PGGM Investments, the investment management arm of the €277 billion fund, said portfolios need to be rebalanced after last year’s decline in equity and bond portfolios, according to AsianInvestor. told to In addition to the sharp fluctuations in currency, the fund was slowing real estate investment. read more>>
AP Strategy Unit Proposes $11.6 Million Sale of Chinese Hotel Assets
A subsidiary of Asia Pacific Strategic Investments is about to sell its stake in a Chinese hotel management company, hotels and related assets for 80 million yuan ($11.6 million).
Grand Canal Culture Tourism Group, a 78.5%-owned subsidiary of AP Strategic, expects a net profit of RMB 70.4 million from the transaction after deducting estimated taxes, professional fees and other charges. read more>>
Homevest Reaches S$100 Million Value at 1exchange in Singapore
Malaysian property group Homevest has surpassed S$100 million ($74.6 million) in market valuation after listing on 1exchange, Singapore’s first private stock exchange.
Homebest consists of three divisions: Homebest Capital, Homebest Living and Homebest Development. Its signature program, the Home Ownership Program for Employees (HOPE), aims to enable businesses and small businesses to own homes for their employees. read more>>
Link REIT’s entry into Singapore looks well-judged
When the cut-off yield for the most recent 6-month Singapore Treasury bills issued in 2022 was 4.28%, a 5% yield for actively managed commercial properties doesn’t seem interesting. increase. Still, Hong Kong-listed Link REIT made a sizable profit on his purchase of the mall from Mercatus Co-operative for S$2.16 billion ($1.6 billion).
On December 28, Link REIT will purchase all of the interests held by Mercatas, the real estate arm of NTUC Enterprises, in suburban shopping malls Jurong Point and Swing by @ Thomson Plaza on the first and third floors of Thomson Plaza. announced that it had agreed to read more>>
Singapore’s key house prices to moderate in 2023: Knight Frank
Prices for luxury residential properties in Singapore are expected to rise at a more “moderate” pace in 2023, according to Knight Frank, but the inventory of available units continues to decline.
In a report on the prime housing market released Wednesday, Knight Frank said landless luxury homes sold in 2022 fell sharply despite a slight increase in sales in the second half of the year. pointed out. This is consistent with the overall plummet. Overall sales volume for 2022 plunged 36% to 21,437 units. read more>>
Rally in Chinese property stocks could quickly run out of steam
The rally in Chinese developer share prices in the final months of 2022 could soon stop as further declines in home sales begin to outweigh the recent funding surge on investors’ minds. .
Contract sales for major developers could fall by 20% this year, according to CCB International, the investment banking arm of China Construction Bank. read more>>
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