Van Thinh Phat founder Truong My Lan was arrested last year (Image: Tuoi Tre)
The scam that brought down Vietnam’s real estate market leads today’s collection of headlines from around the region, with police in Southeast Asia’s fastest-growing economy giving an update on the Van Thinh Phat saga. Also in the news, Evergrande resumes trading and WeWork skips a bond payment.
Vietnam Says Developer Scammed 42,000 Investors in $1.2B Fraud
Vietnamese police on Monday put the takings from a bond scam at developer Van Thinh Phat Holdings Group and its affiliates at around VND 30 trillion ($1.2 billion). The companies cheated around 42,000 investors, the Ministry of Public Security said in a statement.
This is the first time Vietnamese authorities have announced the amount of money involved in the case since they arrested the chairwoman of the company, Truong My Lan, a year ago on suspicion of financial fraud. Read more>>
Evergrande Share Jumps 42% in Hong Kong
China Evergrande Group soared as it resumed stock trading following a halt last week, after its billionaire founder was put under police control on suspicion of committing undisclosed crimes.
The troubled property group’s shares jumped as much as 42 percent in early Tuesday trade, with unit Evergrande Property Services Group also up nearly 14 percent. Read more>>
New World Shares Plunge to 20-Year Low After Payout Cut
Hong Kong developer New World Development Co.’s shares dropped as much as 7.9 percent to the lowest level since November 2003 after the company reported a weak full-year result last Friday.
The decline leads other peers in Hong Kong, with Henderson Land Development Co. down as much as 6.4 percent and Sun Hung Kai Properties Ltd. falling by 4.5 percent. Read more>>
WeWork Skips Bond Interest Payments, Enters 30-Day Grace Period
WeWork said on Monday (Oct 2) that it would not make two sets of interest payments totalling about $95 million, a move meant to jump-start negotiations with its lenders at the same time it tries to cut costs with its landlords.
The missed interest payments will undoubtedly spur speculation of a bankruptcy filing. But WeWork says it has the cash on hand, and the company has a 30-day grace period to make the payments, which were due on Monday. At the end of June, it had $205 million in cash and access to a credit line worth $475 million. Read more>>
Home Tied to Three Arrows Founder Being Used for Wife’s Farming Company
A Good Class Bungalow linked to Zhu Su, co-founder of failed crypto fund Three Arrows Capital, is now the site of an urban farm managed by a company co-founded by Zhu’s wife.
The company has been hosting guided tours and private dining sessions at the Yarwood Avenue site since at least the early part of the year, the Business Times has found. Read more>>
Blackstone’s Wait to Exit Embassy REIT Gets Longer
With valuations and pricing not matching up to its expectations, global private equity giant Blackstone has resigned itself to a longer wait to exit — fully or partially — its stake in Embassy Office Parks REIT.
In a recent conversation with businessline, Asheesh Mohta, head of real estate acquisitions at Blackstone, said that with valuations being what they were, this was not the right time to look for an exit. They were in no hurry and were prepared to wait for three or four more quarters before deciding on an exit. Read more>>
Imperial Hotel Sells 35% of Land for $413M
On 26 September, Imperial Hotel announced plans to sell a 35 percent share of the land under its tower building in its Tokyo property to Mitsui Fudosan for JPY 62 billion ($413 million). This purchase price works out to JPY 15 million per square metre, which is approximately 93,600 times its book value.
The Tower is a 31-storey office and retail building built in 1983. The building is scheduled to close in June 2024, with redevelopment to commence shortly after. Read more>>
Singapore Land Moves Forward with Marina Square Redevelopment
Singapore Land Group said on 29 September that it has won provisional approval from the Urban Redevelopment Authority to redevelop its Marina Square commercial complex and is now working on detailed plans required to get the final nod.
The unit of UOL Group has a 99-year leasehold on the 315,046 square metre (3,391,127 square foot) project, which was first established in 1980. The development includes three hotels, a mall and an office tower. Read more>>
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