Wing Tai Holdings chairman and managing director Cheng Wai Keung
US fund manager Ares picks up a London office project from Hong Kong-listed developer Wing Tai Properties, with that deal leading today’s headline roundup. In other news, Bain and GIC back Indian builder Kalpataru’s IPO and SGX-listed Acrophyte Hospitality Trust warns it may pause payouts.
Ares Fund Buying Wing Tai Mayfair Office Project for $58M
Hong Kong-listed developer Wing Tai Properties announced Monday that it has agreed to sell the company holding 8-12 Brook Street in London to an Ares Management fund for £43 million ($58 million).
Wing Tai is selling the 23,000 square foot (2,137 square metre) office property near Bond Street in London’s Mayfair Conservation Area to realise a gain of around $3.9 million on the disposal, according to a notice to the Singapore Exchange. Read more>>
Bain Capital, GIC Back $82M IPO of Mumbai Developer Kalpataru
Mumbai-based developer Kalpataru completed its anchor investor round on Monday, raising INR 7.08 billion ($82 million) from its anchor investors ahead of the public issue, according to an exchange filing.
Singapore’s GIC, GSS Opportunities Investment (Bain Capital), SBI Mutual Fund, ICICI Prudential Mutual Fund, SBI General Insurance, Aditya Birla Sun Life and 360 ONE WAM were among the top anchor investors who invested in the public issue ahead of the public subscription. Read more>>
Gordon Tang-Sponsored Hotel REIT May Suspend Distributions to Fund Improvements
The managers of Acrophyte Hospitality Trust are considering temporarily suspending or reducing distributions, equity fundraising or a portfolio recalibration through brand repositioning, among other options, as part of an ongoing strategy review for the SGX-listed hospitality stapled group.
This news follows an announcement on 30 May when the managers said they were evaluating a range of options for the stapled group, including a potential transaction involving its stapled securities, in light of potential capital expenditure needs related to the portfolio’s asset enhancement requirements. Read more>>
SGX-Listed Stoneweg REIT to Invest $58M in Stoneweg Data Centre Fund
The manager of Stoneweg European Business Trust announced Tuesday that the stapled trust has made a €50 million ($58 million) investment in the Stoneweg Icona data centre fund.
The REIT’s stake in the fund is expected to range from 4 to 8 percent, depending on the final quantum of investment made by the other investors. The data centre portfolio comprises interests in four early-stage development sites of 225 hectares (556 acres) in total size in Ireland, Spain, Italy and Denmark. Read more>>
Hong Kong Banks Act to Reduce Risks From Mid-Sized Developers
While New World Development’s mounting debt has captured market attention and shaken one of Asia’s wealthiest families, Hong Kong’s smaller property firms have lenders on even higher alert.
Banks are tightening the screws on mid-sized developers that have at least HK$173 billion ($22 billion) in debt. They are demanding stricter refinancing terms, asking for credit enhancements such as collateral or guarantees and, increasingly, halting new lending altogether, according to people familiar with the situation. Read more>>
China Tells State-Owned Developers to Avoid Defaults
China has introduced a requirement for state-owned developers to avoid defaulting on publicly issued debt, in the latest attempt by authorities to contain the nation’s prolonged property crisis.
The State-owned Assets Supervision and Administration Commission added the directive to its latest performance metrics for about 20 developers that are controlled by the central government, people with knowledge of the matter said, asking not to be identified discussing non-public information. Read more>>
New World ‘Actively Engaged’ With Creditors Amid Debt Battle
Hong Kong’s New World Development said Monday that it remains “actively engaged” with creditors to refinance existing loans and that talks are ongoing. The update follows media reports that the Hong Kong builder, which has one of the highest debt ratios among its peers, is nearing a loan refinancing deal.
Bloomberg last week reported that the company was close to securing a HK$87.5 billion ($11.1 billion) deal, citing people with knowledge of the matter. Markets are closely watching New World’s debt issues, wondering if they might signal a sector crisis similar to the one that hit mainland China in 2021. Read more>>
China Land Sales Revenue Falls to Lowest in a Decade
China’s revenue from selling land plunged to the lowest in a decade, contributing to the widening of the budget deficit as the government ramped up spending in support of the economy.
Land sales revenue slumped 14.6 percent year-on-year to RMB 194.1 billion ($27 billion) last month, the lowest since May 2015. The figure, based on Bloomberg calculations from Ministry of Finance data released Friday, reversed April’s 4.3 percent growth, which had been the first increase in three months. Read more>>
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Note: This article has been updated to clarify that the seller of 8-12 Brook Street is Hong Kong-listed Wing Tai Properties, an affiliate of Singapore’s Wing Tai Holdings.
