Yango Group is the latest mainland developer to spook investors
In today’s roundup of regional news headlines, Yango Group becomes the latest Chinese developer to miss interest payments, compatriot Shimao requests an extension on some of its own debt, and Hong Kong’s Sino Hotels sees a bleak year ahead for the city.
China Builders Miss More Deadlines as Yango Skips Payments
China’s troubled developers have given off more signs of strains this week, as one of the nation’s 20 largest builders failed to make two dollar-bond interest payments.
Yango Group, a Shanghai-based developer that operates in more than 100 cities across the country, didn’t make a combined $27.3 million in interest payments initially due on 15 January by a 30-day grace period, according to a Shenzhen stock filing. The company, whose 2021 contracted sales were 19th highest according to China Real Estate Information Corp, said it is facing a temporary cash flow issue and plans to hold a bondholder meeting. Read more>>
Shimao Slips on Loan Payment Delay Plans, Asset Freeze Reports
Shares of cash-strapped Chinese property developer Shimao Group eased on Thursday, after it sought to extend payments of a $947 million trust loan and reports said a court had frozen the sale of 178 apartments financed by the loan.
Shimao proposed to creditors on Wednesday that it would repay the onshore trust loan in states in the next three years, of which RMB 1.3 billion ($205.36 million) would become due on Thursday, sources told Reuters. Read more>>
Shandong Town Is China’s First to Cut Mortgage Down Payments
Major Chinese banks in the eastern city of Heze have cut mortgage down payments for some homebuyers, the first such move in the country to boost flagging housing demand, local media reported.
The Big Four state-run lenders — Bank of China, Agricultural Bank of China, Industrial & Commercial Bank of China and China Construction Bank — lowered the down payment ratio for first-time homebuyers in the city of 8.8 million in Shandong province to 20 percent from 30 percent, according to the reports. Read more>>
Sino Hotels Predicts Challenging Year in Hong Kong
Sino Hotels, controlled by billionaire Robert Ng, said Thursday that the outlook does not look too bright after its first-half losses widened, as Hong Kong’s zero-COVID policy continued to weigh on its bottom line.
The owner of the Conrad Hong Kong saw losses increase by more than a fifth to HK$55.5 million ($7.1 million) for the six months ending December compared with a year earlier. Read more>>
Pair of 999-Year Strata Floors on SG’s Cecil Street on Market for $22.3M
Two 999-year leasehold strata office floors at the TPI building, a six-storey office tower along Cecil Street, have been put up for sale via expression of interest, CBRE said Thursday.
The indicative price for both floors combined is S$30 million ($22.3 million), which translates to S$3,818 per square foot for the total strata area. Read more>>
China Oceanwide Selling Chunk of Hawaii Site to Honolulu Developer
A Chinese company that purchased more than $500 million of real estate in West Oahu, including a parcel to build an Atlantis-branded resort, is selling off nearly 20 acres (8 hectares) of land, according to public documents.
China Oceanwide Holdings has an agreement in place to sell the parcel adjacent to the Ko Olina Resort for a little more than $23 million to Honolulu residential developer Alakai Development. Read more>>
Knight Frank Opens Vietnam Office in JV With Local Player
Knight Frank has set up a joint venture in Vietnam to provide services including brokerage for office, industrial and logistics property, capital markets and investment property, as well as consultancy and research.
Based in Ho Chi Minh City, the entity — Knight Frank Vietnam Property Services — will be led by newly appointed managing director Alex Crane, who is also the JV partner for the new operation, and director of capital markets Ben Gray. Read more>>
Asian Capital to Double Investment in London Offices in 2022
Knight Frank on Friday said the central London office market is likely to attract £4.1 billion ($5.6 billion) worth of capital from the Asia Pacific region in 2022, with a substantial volume to come from Singapore.
This is around double the volume of capital from the region in 2021, according to the agency’s annual London Report. Read more>>
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