China’s Powerlong seeks to delay payment of onshore bonds

A Powerlong Commercial Project in Xiamen, Fujian Province

In today’s roundup of regional news headlines, Chinese developer Powerlong is seeking to stagger one-year payments for an onshore bond maturing next week, Shanghai’s residential rental market takes its pieces following a severe COVID lockdown, and Singapore’s two-storey ‘Sky-Bungalows’ Guocoland Markets in its Midtown Modern project.

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Chinese company Powerlong Real Estate seeks to delay bond payments

Chinese developer Powerlong Real Estate Holdings is seeking to delay payment of 600 million RMB ($89 million) of onshore bonds due July 15 and repay principal in installments over one year, two sources with direct knowledge of the matter said. the case.

In a proposal to its bondholders, Hong Kong-listed Powerlong aims to pay 5% of the principal on the bond’s maturity date, 15% of the principal after six months and the remaining 80% after 12 months. the sources told Reuters. Learn more>>

Shanghai residential rental market suffers after lockdown

Shanghai’s home rental market takes a hit as landlords struggle to find new tenants to replace the horde of professionals who left the city before the lockdown and factory workers who lost their jobs when businesses collapsed. The recovery could be uneven after a series of price declines.

Rents in some of the 16 districts of China’s main financial center have fallen by more than a tenth, even after businesses and daily life returned to normal in the city of 25 million when the local government declared a victory over the Omicron outbreak and ended the shutdown. June 1. Learn more>>

Shimao creditors organize after $1 billion bond default

Global creditors of Shimao Group Holdings are preparing to organize after the luxury carmaker defaulted on a billion dollar bond due on Sunday.

An executive at investment bank Houlihan Lokey has asked Shimao bondholders to join his panel of creditors, according to people from the companies that hold the notes who called into a conference call Tuesday night hosted by the adviser and Weil, Gotshal & Manges LLP. Shimao is now adopting a comprehensive restructuring that is expected to take some time, the people who are not authorized to speak publicly about their holdings said, quoting an executive on the call. Learn more>>

Fantasia gets an extension on Onshore Bond

Chinese developer Fantasia Holdings is finding leeway to meet its $12 billion in liabilities after creditors agreed to extend the maturity of a national bond and accept staggered interest payments on the bonds.

Bondholders have agreed to delay redemption of a 724 million RMB ($107.7 million) 8.2% bond for five months until December, according to a Hong Kong stock exchange filing Tuesday evening. They will also accept 20% of the coupon on July 8 and 80% on December 5. Learn more>>

Guocoland’s Midtown Modern Marketing $11 Million ‘Sky-Bungalows’

Guocoland has launched a collection of six large two-storey houses in its Midtown Modern condominium in Bugis priced at S$15.5 million ($11 million) to S$17 million each or from S$4,287 to $4,701 Singaporeans per square foot.

Under the Midtown Modern Sky-Bungalow Collection brand, the homes were created by combining high-end, stacked four-bedroom units – an option the developer offered when it launched in March last year. Learn more>>

Singapore Government Says Stamp Duty Not Intended As Wealth Tax

Singapore’s Chief Minister of State for Finance, Chee Hong Tat, said on Tuesday that the new stamp duty introduced in May is not intended to be a form of wealth tax; instead, they are part of the government’s series of measures aimed at cooling the residential property market.

In his response to MP Don Wee, who had asked how much the government intended to raise in new stamp duty. Learn more>>

China’s real estate market pain set to continue after sales bottom

China’s housing crisis is probably past its worst, but the market is still far from a full recovery.

Industry executives and economists expect sales to remain depressed due to a weak labor market, prolonged cash crunch and low confidence in house prices. This could hurt growth in the world’s second-largest economy, where real estate and related industries account for around 20% of GDP. Learn more>>

Zhongshan tightens its grip on property prices

Authorities in Zhongshan, Guangdong Province, limited the reduction in registration prices for new homes to 5% once every three months.

Sale prices must also be within 15% of prices registered with the government, according to an official notice this week. Learn more>>

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Elaine R. Knight