China property investment fell 7.2% in the first five months of 2023 (Getty Images)
In today’s roundup of regional real estate headlines, investment in China real estate shows no signs of picking up after tumbling in the first five months of the year, and R&F Properties’ Zhang Li agrees to extradition to the US to answer bribery charges. Also in the news, owners of an aging Singapore complex make another attempt at a collective sale and Sunac China makes progress in its debt restructuring.
China Property Investment Slump Deepens With Home Demand Weak
Chinese real estate investment slumped further in May, showing both extended weakness in a key engine for economic growth and the challenges facing the nation’s cash-strapped developers.
Investment in real estate declined 7.2 percent in the first five months of 2023, worse than the 6.2 percent decline recorded in the January-to-April period and deeper than economists’ expectations of a 6.7 percent drop. Read more>>
R&F Properties Co-Chief Agrees to Be Extradited to US
The billionaire co-chairman and CEO of Chinese developer Guangzhou R&F Properties on Wednesday agreed to be extradited from London to the United States, where he is facing bribery charges.
Zhang Li, who co-founded Hong Kong-listed R&F, is wanted on a provisional warrant issued in the Northern District of California that accuses him of participating in a scheme to bribe public officials between 2015 and 2020. Read more>>
People’s Park Centre Eyes Third Collective Sale Bid at S$1.7B Reserve Price
Two projects in Chinatown are looking to throw their hats into the en bloc ring: the long-standing People’s Park Centre for the third time, and landmark development People’s Park Complex for the first.
This time, People’s Park Centre is looking at a reserve price of between S$1.5 billion and S$1.7 billion ($1.1 billion and $1.3 billion), the chairman of the project’s collective sale committee told the Business Times. Read more>>
Hong Kong Court OKs Withdrawal of Wind-Up Case Against Sunac China
A Hong Kong court has granted an order for the withdrawal of a winding-up lawsuit against Sunac China Holdings, removing a hurdle to the developer’s $9 billion debt restructuring.
The petition has been withdrawn and winding up proceedings against the company “have been discontinued”, Sunac said Wednesday in an exchange filing. The case was filed last September by a bondholder who was allegedly owed $22 million in principal plus interest on senior notes. Read more>>
Fitch Affirms R&F and Subsidiary at ‘Restricted Default’, Withdraws Ratings
Fitch Ratings has affirmed the long-term foreign currency issuer default ratings on Guangzhou R&F Properties and its subsidiary, R&F Properties HK Co Ltd, at Restricted Default. It has also affirmed RFHK’s senior unsecured rating and the rating on the RFHK-guaranteed notes issued by Easy Tactic Ltd at C, with the recovery ratings of RR5.
At the same time, Fitch has chosen to withdraw the ratings on Guangzhou R&F and RFHK for commercial reasons. Read more>>
Hong Kong Calls Recess on Rate-Hiking Spree in Lockstep With US Fed
Hong Kong’s de facto central banker reiterated his warning for borrowers to remain vigilant for “relevant risks” from interest rate movements, even as the monetary authority hit the pause button for the first time after 10 rounds of increases in 15 months.
“The high interest rate environment in the US may last for some time, and the Fed may hike rates again,” according to the Hong Kong Monetary Authority’s chief executive, Eddie Yue, which would compel the city to move in lockstep to maintain the local currency’s peg to the US dollar. “The interest rate path in the US will remain uncertain,” Yue said. Read more>>
Law Firm Urges GDS Investors to Consider Class-Action Suit
Rosen Law Firm has announced an investigation of potential securities claims on behalf of shareholders of GDS Holdings, resulting from allegations that the Shanghai-based data centre operator may have issued materially misleading business information to the investing public.
The global legal firm is preparing a class action seeking recovery of investor losses. “If you purchased GDS securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement,” it said. Read more>>
Godrej Properties to Acquire Land for Luxury Residential Project in Kolkata
Godrej Properties on Thursday announced through an exchange filing that it will acquire a 7.4 acre (3 hectare) land parcel at New Alipore, a premium residential locality in Kolkata, from West Bengal Housing Infrastructure Development Corporation, having been declared as the highest bidder in its e-auction.
Godrej will develop the land parcel as a luxury group housing project, taking advantage of New Alipore’s established physical and social infrastructure. Read more>>
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