Wanda’s Wang Jianlin doesn’t have much to cheer about in 2023 (Getty Images)
In today’s roundup of regional real estate headlines, a court order puts $278 million worth of Wanda Commercial shares on ice, and giant cracks in the road spark an evacuation at a Country Garden residential project in northern China. Also in the news, US commercial landlords face a $1.5 trillion debt reckoning and a Singapore asset manager sells down its stake in a CapitaLand REIT.
Shanghai Court Freezes $278M Worth of Shares in Wanda Commercial
A Shanghai court has ordered the freezing of RMB 1.98 billion ($278.18 million) worth of shares in a unit of Dalian Wanda Group, China’s largest commercial developer.
The frozen shares were issued by Dalian Wanda Commercial Management Group, the property management arm of Dalian Wanda Group. According to two court notices dated Monday, the shares were ordered frozen until 4 June 2026, company information system TianYanCha showed. Read more>>
Giant Cracks in Road Spark Evacuation of Country Garden Tianjin Project
More than 3,000 residents of a Country Garden Holdings project in China’s northern Tianjin city were evacuated due to a land subsidence issue nearby, raising concerns over housing safety.
Multiple cracks as wide as a fist appeared on roads near a residential complex in the city’s Jinnan district developed by Country Garden, according to a report by state media. As of last Saturday, 3,899 dwellers in at least three 25-floor high-rises were evacuated to hotels nearby, the district government said in a social media post on Monday. Read more>>
Interest-Only Loans Helped Commercial Property Boom. Now They’re Coming Due.
Nearly $1.5 trillion in commercial mortgages are coming due over the next three years, according to data provider Trepp. Many of the commercial landlords on the hook for the loans are vulnerable to default in part because of the way their loans are structured.
Unlike most home loans, which get paid down each year, many commercial mortgages are known as interest-only loans. Borrowers make only interest payments during the life of the loan, with the entire principal due at the end. Read more>>
China Oceanwide Holdings Defaults on $157M Loan Tied to Los Angeles Project
More trouble is on its way to Downtown Los Angeles. China Oceanwide Holdings, a developer based in Beijing, has defaulted on an EB-5 loan associated with the Oceanwide Plaza project, an unfinished development in the city’s downtown core just across the street from Crypto.com Arena.
As of January, the company had a debt of $157.4 million owed to a group of EB-5 lenders, as stated in a notice of default filed with Los Angeles County. The notice specifies that a potential sale of Oceanwide Plaza can be scheduled after 8 August, according to a recent report by The Real Deal. Read more>>
China Property Liquidation Risk Heightened by Delisting Threat, Says S&P
Some of China’s distressed developers face the risk of being delisted, which would reduce their options for restructuring and make them more vulnerable to liquidation, S&P Global Ratings said Wednesday.
China’s developers have been in turmoil since mid-2021 after Beijing’s crackdown on debt impacted first Evergrande Group and then spread across the sector. Read more>>
Temasek Portfolio Company Disposes of CICT Units Worth $3M
Fullerton Fund Management Company, an independently managed portfolio company of Singapore’s Temasek Holdings, has disposed of some S$4.1 million ($3 million) worth of units in CapitaLand Integrated Commercial Trust.
According to a bourse filing on Wednesday, Fullerton had disposed of 2,077,600 CICT units on 1 June. Read more>>
Buyer Snaps Up 10 Semi-Detached Houses in Holland Link Mortgagee Sale
Just like that, all 48 semi-detached houses at Eleven@Holland in Singapore’s District 10 were sold in three days.
Even with an average price tag of S$3.7 million ($2.8 million) each, one buyer snapped up 10 units at once after viewings for the properties opened on 1 June, Shin Min Daily News reported. Read more>>
Asia Family Offices Are Most Bearish on Property, Survey Shows
Asian family offices are turning more bearish on property than any other asset class, as interest rates rise and a potential recession looms, according to a Preqin survey.
Among more than 50 single and multi-family offices across the Asia Pacific region polled by Preqin, 42 percent expect to cut their real estate capital allocation for the next 12 months, while 63 percent believe their property portfolio will perform worse over the coming year. Read more>>
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