SHKP and Hysan post lower results in Hong Kong

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Raymond Kwok’s Sun Hung Kai Could Have a Rough Year

In today’s regional news roundup, two Hong Kong property giants report falling profits, Singapore’s CapitaLand is eyeing an industrial project in Vietnam and Jingrui becomes the latest Chinese developer to seek extensions of debt payment.

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SHKP, Hysan post lower earnings, announce more challenges ahead

Two of Hong Kong’s biggest real estate developers and retail owners posted declining results and predict further challenges ahead as the city’s social distancing rules keep consumers away from malls.

Sun Hung Kai Properties (SHKP), which owns neighborhood shopping malls New Town Plaza and Yoho Mall in Sha Tin and Yuen Long, two districts with the highest number of COVID-19 cases, said its interim base profit had fallen by 15% over one year. year to HK$14.8 billion ($1.9 billion) in the six months to December. The decline was mainly due to lower sales in residential projects, SHKP said. Learn more>>

CapitaLand development under MOU for S$1.3 billion VN Industrial Township

CapitaLand Development announced on Friday that it has signed a memorandum of understanding to explore the development of an industrial park, logistics park and township in Vietnam, with an expected total investment value of $1.3 billion. Singaporeans ($960 million).

Under the MOU, CapitaLand will partner with the People’s Committee of Bac Giang Province to assess several pristine sites totaling more than 400 hectares (988.4 acres) across the province. This includes a township development along the Cau River, as well as several industrial parks and logistics assets near Viet Yen district. Learn more>>

CapitaLand Investment posts half-year profit of $477 million

Although it maintains global ambitions, CapitaLand Investment will largely focus on Asia over the next five years due to the opportunities here and the group’s track record and capabilities in the region.

Speaking at an earnings briefing on Friday morning, the group’s chief executive, Lee Chee Koon, pointed to “more exciting opportunities emerging in China.” “The level playing field has become much more level,” he continued, referring to the ability to access projects, especially as some local actors may not have the kind of access to funding that they had in the past. Learn more>>

Jingrui joins the crowd of distressed Chinese developers

The number of Chinese developers asking for debt forbearance from offshore creditors is rising as Zhenro Properties and Jingrui Properties draw attention to an ongoing credit crunch amid the industry’s worst downturn in a decade.

The two developers this week sought to delay repayments of $1.2 billion in dollar-denominated bonds maturing this year, citing a liquidity crunch. They are also asking bondholders to waive certain default clauses on $3.5 billion of notes, weakening their covenants. Learn more>>

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CDL slips into the black with S$129.7m profit in second half

Property developer City Developments Ltd fell into the black with a net profit of 129.7 million Singapore dollars (now 95.8 million dollars) for its second half ended December 31, 2021, compared to a net loss of 1.92 billion Singapore dollars a year earlier.

The company saw its hotel operations segment return to profitability during the half-year, and it also expects an imminent rebound in the hospitality sector, according to a stock market filing released Friday. Learn more>>

Hong Kong house prices at 11-month low following new COVID surge

Private house prices in Hong Kong fell for the fourth consecutive month in January to the lowest since February 2021, official data showed on Thursday, as the financial hub was hit by a fresh wave of COVID-19 cases.

Prices fell 1.1% last month, compared to a revised decline of 0.1% in December. January’s monthly decline was also the largest in 11 months. Learn more>>

Hong Kong bans nanoflats with a minimum house size of 280 square feet

All private homes to be built in Hong Kong will have to be at least 280 square feet (26 square meters), the government has announced, except in rare cases where developers face site constraints or dated leases that may not not be subject to the new rule.

The minimum size requirement in the private sector will cover all sales of public land, railway real estate projects, houses built by the Urban Renewal Authority and redevelopment projects by developers. Learn more>>

China’s crackdown leaves bond investors with few places to hide

Losses in China’s debt markets are spreading beyond the struggling real estate sector, sending the country’s investment-grade bonds to their lowest level in 21 months as creditors become increasingly wary of prime borrowers order, including the Alibaba Group.

Renewed worries about the Chinese government’s crackdown on tech companies are heightening worries about everything from rising US rates to the Russia-Ukraine conflict and weak consumer spending. Learn more>>

Check back soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.

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