China’s CIFI Suspends Offshore Debt Payments – Mingtiandi | NutSocia

Lin Zhong, Chairman of CIFI Holdings (Group);  Portrait photograph taken in his office at One Pacific Place, Admiralty.

CIFI Chairman Lin Zhong joins restructuring club (Getty Images)

The credit crunch among mainland China developers once again dominated the news today after Shanghai-based CIFI Holdings announced it will undertake a restructuring and Greenland Group said it would seek an offshore bond extension. Also, it’s a downgrade for Country Garden to get some virtual ink, and a rare set of super-luxe bungalows are coming to market in Singapore.

Mainland developer CIFI suspends debt payments and begins restructuring

Shanghai-based real estate developer CIFI Holdings said Tuesday it suspended payments on all of its offshore debt after failing to reach an agreement with creditors it owes a total of $414 million.

CIFI said in a filing that it has retained Haitong International Securities Company Limited as financial advisor and Linklaters as legal advisor to facilitate a restructuring of its $6.85 billion offshore debt, as it is likely to remain under pressure will generate sufficient cash flows for repayments. Read more>>

Shanghai’s Greenland Group seeks offshore bond extension

Chinese real estate developer Greenland Holdings Corp said on Monday it was seeking approval from its offshore bondholders to extend the repayment of its bonds, which mature between next month and 2025, by up to two years due to falling sales and poor market conditions.

State-backed Greenland joins a ranks of Chinese developers who have delayed or defaulted on offshore debt obligations since the second half of last year due to a stifling liquidity squeeze prompted in part by a regulatory crackdown. Read more>>

Fitch downgrades China’s largest developer and gives negative outlook

Fitch Ratings has downgraded the Long-Term Foreign- and Local Currency Issuer Default Ratings (IDRs), Senior Unsecured Rating and the rating of the outstanding bonds of China-based home builder Country Garden Holdings Company Limited from BB+ to BB-. The outlook is negative. Ratings have been removed from Rating Watch Negative (RWN).

The downgrade reflects the ongoing poor capital market conditions in the real estate sector, which are limiting Country Garden’s access to unsecured financing and affecting its financial flexibility. Country Garden’s contracted sales may have stabilized in recent months and Fitch believes that its available cash balance and internal cash generation should be sufficient to cover the medium-term maturities of the capital markets debt. However, uncertainty remains about the sustainability of its sales as well as the availability of its cash on hand. Fitch believes that the current rating level adequately reflects these risks. Read more>>

Home sales in China fell 28.4% in October

China’s slump in home sales deepened in October, the latest sign that a recovery in the country’s housing market is still a long way off.

According to preliminary data from China Real Estate Information (CRIC), the top 100 real estate developers saw new home sales fall 28.4 percent year on year to 556.1 billion yuan (S$107.8 billion) in October. That plunge widened from a 25.4 percent plunge in September. Read more>>

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Mortgages on negative stocks in Hong Kong rise 9-fold

Instances of negative equity on residential mortgage loans in Hong Kong recorded a nearly nine-fold increase in the third quarter from the previous quarter, the city’s de facto central bank said, with the decline in house prices accelerating during the period.

The Hong Kong Monetary Authority (HKMA) said in a statement on Monday (October 31) that its survey at the end of September included an estimated 533 negative equity cases affecting HK$3 billion (S$541 million) compared with 55 cases and HK$300 million at the end of June. Read more>>

India’s AdaniConneX opens data center in Chennai

AdaniConneX, the joint venture between EdgeConneX and Indian conglomerate Adani Enterprises, has opened its first data center in Chennai after recently partnering with EdgeConneX to develop new server facilities in the country.

According to the company’s website, phase one of Chennai 1 will provide 17MW and will provide 33MW of IT load when fully deployed. Building one spans five floors and 213,000 square feet. A second building is planned for the future. Read more>>

CapitaLand Ascendas REIT Reports Positive Rent Reductions of 5.4%

CapitaLand Ascendas REIT posted a positive bond yield of 5.4 percent for lease renewals in the third quarter through September, up from 13.2 percent in the second quarter, the manager announced in a quarterly business update on Monday (October 31).

Fiscal 2022 rental payback is expected to be in the “positive mid-single digits.” In the year to date, the bond yield is 8 percent. Read more>>

Three bungalows on Nassim Road marketed in Singapore in a $168 million deal

It’s a rare moment for Singapore’s luxury real estate market. Three of the country’s most prestigious homes, known as upmarket bungalows, are for sale in a quiet central neighborhood where only five such villas have changed hands in the last five years.

The coveted residences are expected to fetch a record combined price of almost S$240 million (US$168 million) after potential buyers submitted bids by November 3. Read more>>

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