Country Garden has put $530 million worth of assets on the block in Guangzhou in a bid to repay debt due within the next six months, with that story leading Mingtiandi’s headline roundup today. Also making the news, The Ritz-Carlton Residences Singapore sells two adjacent units for $12 million and Country Garden’s offshore creditors appoint financial and legal advisors for more debt talks.
Embattled Chinese developer Country Garden has put a chunk of assets on the block in Guangzhou in a bid to repay debts coming due within the next six months.
The move comes on the heels of an agreement struck last week by the developer’s subsidiary to sell its last investment in Australia. Read more>>
Two adjacent units in The Ritz-Carlton Residences Singapore in the Cairnhill area were recently sold for S$16.5 million ($12.3 million) each or S$5,397 per square foot — the first time since June 2023 that prices in the prime residential market have crossed the S$5,000 per square foot mark.
Based on caveats data from URA Realis, the two units are each 3,057 square feet (284 square metres) in size and sit on the 33rd floor of the 58-unit freehold development in District 9. They were transacted on 9 January for a total of S$33 million. Read more>>
A group of Country Garden’s creditors has appointed financial and legal advisors, paving the way for more debt talks in what could be one of China’s largest-ever offshore restructurings.
The ad hoc creditor group named PJT Partners as financial advisor and Kirkland & Ellis as legal advisor, according to people familiar with the matter, who requested anonymity discussing private matters. The developer, which was once the nation’s biggest builder and has $190 billion in total liabilities, defaulted on dollar bonds in October but has continued to pay off RMB notes. Read more>>
The number of foreclosed homes in China rose 43 percent in 2023, according to a private survey released Monday, highlighting a worrying trend of rising mortgage delinquencies amid a sustained property market slump and a patchy economic recovery.
The number of foreclosed homes up for auction stood at 389,000 units last year, said China Index Academy, an independent real estate research firm. A total of 99,000 units worth a combined RMB 150 billion ($20 billion) were successfully sold at auctions, the firm said. Read more>>
Two projects — Hillhaven in District 23, and freehold development The Arcady at Boon Keng in District 12 — kicked off the year’s private home launches in Singapore over the weekend, with both off to a slow start, though analysts described the sales as “encouraging”.
Far East Organization and joint venture partner Sekisui House sold 59 out of 179 units, about 33 percent, as part of their Phase 1 launch of Hillhaven on Saturday, with prices starting from S$1,903 ($1,418) per square foot. Read more>>
Chinese developers that once expanded aggressively in Hong Kong have retreated from the city amid an unprecedented downturn in the mainland.
From 2018 to 2020, mainland developers’ share of residential areas obtained from government land sales, including joint ventures, was about 57 percent. That figure has dropped to 16 percent from 2021 to 2023, according to government data compiled by JLL, which means an increase in market share for the five major local developers, including CK Asset and Sun Hung Kai Properties. Smaller companies like Sino Land are also acquiring more projects. Read more>>
The parent of Chinese developer Redsun Properties Group has received a winding-up petition in a Hong Kong court, joining a growing list of the country’s distressed firms facing legal threats in the city.
The court is scheduled to hold a hearing of the petition against Hong Yang Group Co on 27 March, according to the city’s judiciary website. Serica Agency Ltd is the other involved party in the case. Read more>>
China’s January home sales are expected to disappoint the market again, which could trigger a bearish outlook for the country’s property sector and the wider economy, analysts said.
Home sales in 30 major cities tracked by Chinese financial data provider Wind have dropped by 38 percent month on month and 10 percent year on year in the first three weeks of this month, according to analysis by financial brokerage CGS-CIMB Securities. Read more>>