Country Garden’s headquarters in Foshan, Guangdong Province, China
Country Garden again leads today’s collection of real estate headlines from around Asia Pacific as the developer’s creditors seek an official ruling after a bond default last week. Also making the list, the head of one of Hong Kong’s biggest developers says the good times are over and China’s sovereign fund is seen buying up mainland stocks amid a market slide.
Country Garden Creditors Seek Ruling After Bond Default
The Credit Derivatives Determinations Committees were asked if Country Garden Holdings’ missed dollar bond interest payment would trigger credit default swaps tied to the developer’s debt, according to a notice posted Monday.
A panel of banks and investment managers was asked by an eligible market participant if a failure-to-pay event had occurred after the company skipped an interest payment on its 6.15 percent dollar bonds due 17 September. A 30-day grace period on the $15.4 million interest payment expired last week, and a default can be called after that. Read more>>
Chinachem Chief Declares End of Hong Kong Property’s ‘Golden Era’
The chief executive of a leading Hong Kong property group has declared the end of a “golden era” for the territory’s residential developers as the government takes an increasingly active hand in boosting housing supply.
“Hong Kong real estate is no longer a totally free market,” said Donald Choi, chief executive at Chinachem, a large unlisted developer and one of the top sellers of new flats in the city. “The government wants to take more initiative in controlling how land and housing is supplied.” Read more>>
Chinese Govt Fund Buying Mainland ETFs to Fight Stock Slide
Central Huijin Investment, a unit of China’s $1.35 trillion sovereign wealth fund, bought exchange-traded funds tracking underlying Chinese stocks in another bid to bolster the nation’s ailing equity market.
Central Huijin made the investment on Monday and will continue to increase such investments in future, the company said in a one-sentence statement on its website, without giving further details. Read more>>
Qualcomm India Leases 12 Floors in Bengaluru Office Project
Bengaluru-based Bagmane Developers leased 621,000 square feet (57,693 square metres) of office space for nine years in a building named Bagmane Capital-Ankor in Bengaluru to IT firm Qualcomm India for a monthly rent of INR 59 million ($710,000) per month, documents accessed by Propstack showed.
The deal covers ground plus 12 floors and the lease period starts from April 2024 and is for 108 months, or around nine years, the documents revealed. Read more>>
Singapore’s Suntec REIT to Sell Strata Assets to Shore Up Balance Sheet
Raising capital via a rights issue to address gearing levels is the “last priority” for Suntec REIT, Chong Kee Hiong, chief executive of the manager, said Monday.
“In this climate, getting unitholders to fork out more money just to make the balance sheet stronger, I don’t think is the right thing to do,” he said. “We are still focused on divestments, and the market is still there for divestment.” Read more>>
Vietnam Bond Sales Surge as Developers Restructure Debt
Vietnam’s real estate sector witnessed a surge in corporate bond issuances worth a total of VND 30 trillion ($1.22 billion) in the third quarter of 2023, a move aimed at debt restructuring rather than capital raising.
Interest rates for real estate bonds in the third quarter were between 12 and 15 percent, higher than the overall market average of around 9 percent. Read more>>
Money Laundering Suspects Booted From Singapore Mansions
A large landed property near Singapore’s Orchard Road, which was previously leased to alleged money-laundering offender Su Baolin, is back on the market at $120,000 a month.
The good class bungalow in Nassim Road was advertised for rent on 16 October. The hilltop five-bedroom, five-bathroom residence sits on 15,000 square feet (1,393 square metres) of land and features a swimming pool that snakes through most of the second floor. Read more>>
Shanghai Investor Puts Australian Farmland on the Market
Two contiguous dryland and irrigated cropping holdings in Queensland’s Border Rivers region are on the market as a first-in-a-decade agribusiness opportunity and are expected to draw offers of around A$100 million ($63.7 million).
The Undabri and Yambocully Aggregation in Goondiwindi features two distinct hubs owned by a Shanghai-based Orient Agriculture and are on the market together or separately. Read more>>
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