China’s Zhongliang Seeks Extension on $729M in Bonds | Ezine Daddy

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When Zhongliang went public in 2019, the business looked so promising

In today’s roundup of regional headlines, Zhongliang Holdings is the latest Chinese developer to request a debt repayment extension as China’s real estate downturn continues and investors exited Hong Kong’s office sector in the first four months of 2022. Also in the news is a drop in home sales for Chinese developers in April, and Indonesian developer Sinar Mas Land is teaming up with a few friends to launch a real estate technology and smart city solutions fund.

Zhongliang Holdings seeks extension on $729 million in bonds

Chinese developer Zhongliang Holdings (2772.HK) is scrambling to get bondholder approval to extend the repayment of $729 million in debt ahead of a key deadline next week, and joins peers who desperate to avoid offshore debt defaults.

The Shanghai-based company has struggled to sell or secure refinancing enough homes amid an ongoing China real estate downturn to pay investors who are due in full on their bonds in May and July. Read more>>

Foreign investors snub Hong Kong offices early 2022: RCA

Hong Kong’s office sector failed to secure a single cross-border investment in the first four months of 2022 as the city continues to feel the effects of the COVID-19 pandemic and ongoing social unrest, according to Real Capital Analytics.

The sector recorded total investments of only US$200 million during this period. That was a lower amount than the hotel, industrial and retail segments, according to New York-based RCA, which oversees transactions worth at least $10 million — the first time this has happened. Read more>>

April sales for 13 of the biggest Chinese developers are down 52%

Total sales of 13 of China’s top real estate developers, including China Vanke, Country Garden and Sunac China, fell 52 percent year-on-year to RMB203 billion (US$29.91 billion) in April as the country’s real estate sector continues to feel the impact is feeling the effects of the COVID-19 pandemic.

From January to April, the sales of these companies collapsed by 41 percent to 899.8 billion RMB. Only one of the developers had a revenue drop of less than 30 percent and eight experienced a drop of more than 40 percent during the four-month period. Read more>>

Fraser’s Property H1 profit falls 42.6% as revenue rises 7.5%

Singapore-based Frasers Property reported a 42.6 percent year-on-year decline in its profit after tax and minority interests to S$158.2 million (US$113.4 million) for the six months ended March 31, since its sales for the comparable period increased 7.5 percent to $1.68 billion.

The decrease in revenue is due to a one-time item in the developer’s accounts for the 12 months ended September. A portfolio of industrial and logistics properties in Australia and Europe has been reclassified from held for sale to investment property, in line with the property group’s strategy to expand its industrial and logistics property base. Read more>>

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Sinar Mas Land, partners launch proptech, smart city fund

Indonesian real estate developer Sinar Mas Land has launched an early-stage fund for startups offering real estate technology and smart city solutions.

The firm will manage the fund alongside VC firms East Ventures and Redbadge Pacific, and infrastructure and investment firm Prasetia Dwidharma. The South Korean construction and development company GS E&C will also be part of the fund as an investor and strategic partner. Read more>>

Local tycoon buys Singapore hotel and commercial buildings for $69.8 million

Singaporean tycoon Lim Chin Huat has acquired a 45-room hotel and three commercial buildings in the Lion City for S$97.4 million (US$69.8 million).

Straits Construction sold the commercial buildings at 47, 49 and 51 Crete Ayer Road for more than S$44 million. Hilltop Capital previously owned the hotel at 12, 14 and 16 Teck Lim Road. Read more>>

Colliers reports a 1% rise in industrial rents in Singapore in the first quarter

Industrial rents in Singapore rose 1 percent quarter-on-quarter in the first three months of 2022, marking the sixth straight quarter of rent increases, according to a Colliers report.

Prices in the industrial segment also performed well, rising 3.1 percent year-on-year, representing the strongest quarterly price growth since the first quarter of 2014, with the majority being factories,” said Colliers. Read more>>

Nobel laureates offered $1.5 million in housing benefits in Wuxi

The city of Wuxi in China is offering up to RMB10 million (US$1.5 million) in housing grants to Nobel Laureates to attract top talent to the country as it moves towards innovation-driven development.

In recent years, major cities across the mainland, including burgeoning inland tech hubs, have introduced incentives such as tax cuts for college graduates to scramble to grab talent to improve their respective economies. Read more>>

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