China Evergrande Seeks US Bankruptcy Protection and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, embattled builder China Evergrande files for US bankruptcy protection as it looks to finalise debt restructuring plans, and the number of properties entangled in a Singapore money-laundering probe reaches 105. Also making the cut are Sunac’s latest asset sales and a warning from China’s state-backed developers.

Evergrande Files for Bankruptcy Protection in Manhattan Court

Heavily indebted property giant China Evergrande on Thursday filed for Chapter 15 bankruptcy protection in a US court. In a filing with the Manhattan bankruptcy court, the firm referenced restructuring proceedings in Hong Kong, the Cayman Islands and the British Virgin Islands.

In a separate statement, Evergrande on Friday said that it will ask the U.S. court for “recognition of the schemes of arrangement under the offshore debt restructuring for Hong Kong and the British Virgin Islands.” Read more>>

Suspected Money-Laundering Ring Bought Singapore Properties Since 2017

The billion-dollar money-laundering syndicate in Singapore has been picking up properties as far back as 2017, according to information obtained by the Business Times on deals linked to the 10 people arrested so far.

Questions have also arisen on whether action will be taken against the real estate agents who brokered those deals. Read more>>

Sunac Selling Projects for $160M to Settle Debts

Struggling developer Sunac China Holdings has entered into agreements to sell three project companies for a total of RMB 1.2 billion ($160 million) to settle debts.

The directors consider that the disposals are on normal commercial terms, fair and reasonable and in the interests of the shareholders as a whole, Sunac chairman Sun Hongbin said in a filing with the Hong Kong stock exchange. Read more>>

China’s State Developers Warn of Major Losses as Crisis Spreads

China’s state-owned developers are warning of widespread losses, fuelling concerns that the housing crisis is expanding from the private sector to companies with government backing.

Eighteen out of 38 state-owned enterprise builders listed in Hong Kong and the mainland reported preliminary losses in the six months ended 30 June, up from 11 that warned of full-year losses in 2022, according to a Bloomberg tally based on corporate filings. Two years ago, only four firms with controlling or major state shareholdings posted losses. Read more>>

Evergrande Collapse Shows Need for $1T Beijing Rescue Plan: Analyst

China Evergrande’s bankruptcy filing in New York on Thursday shows a need for Beijing to go big, and soon, to sop up the nation’s soured real estate market, says Clocktower Group’s Marko Papic.

“The bigger issue is that China’s policy makers are holding out hope that confidence can return organically” to its teetering property market, Papic told MarketWatch on Thursday evening. Read more>>

Hong Kong Sea View Mansion Eyes Ambitious $281 Million Sale

A developer is seeking to sell a huge mansion in Hong Kong for HK$2.2 billion ($281 million), a price that would make the property among the city’s most expensive transactions, at a time when the luxury housing market is facing challenging conditions.

The 18,270 square foot (1,697 square metre) house in the city’s upmarket Repulse Bay area was completed just over four years ago, before citywide protests and the pandemic shutdown curbed property transactions. Read more>>

Link REIT’s Chief Explains $5.8M Sale

Link REIT CEO George Hongchoy said his recent sale of 1.07 million units was for “personal financial arrangements” and he still holds 3.86 million units in the trust.

On 3 August, Hongchoy sold 1,075,800 fund units at an average price of HK$42.39 per unit, resulting in a cash amount of HK$45.6 million ($5.8 million). Read more>>

Singapore to Tackle Public Housing Worries After Surge in Prices

With housing prices hovering near a record high, Singapore Prime Minister Lee Hsien Loong is expected to unveil policy changes to boost affordability in his annual National Day Rally address Sunday.

Lee signalled in a speech on 8 August that adjustments will be made as the government “must still ensure public housing is accessible and affordable for Singaporeans of all income groups”. Read more>>

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