Roundup: Evergrande Creditors Demand Controlling Stakes – Mingtiandi

Hui Ka Yan or Xu Jiayin, a Chairperson of Evergrande Group

Evergrande offshore creditors are demanding control equity stakes in the developer as well as its two Hong Kong subsidiaries, with that story leading Mingtiandi’s collection of headlines around the region. Also making the list, Blackstone has raised $2.6 billion to invest in real estate fund secondaries and another developer boss has been arrested in Vietnam.

Evergrande Creditors Demand Controlling Stakes in New Proposal

A group of offshore creditors to China Evergrande Group is demanding controlling equity stakes of the developer as well as its two Hong Kong subsidiaries as part of discussions on the firm’s revamped restructuring proposal, according to people with knowledge of the matter.

Their offer is the latest twist before a court hearing on Monday, when the distressed developer faces the risk of a liquidation order unless it submits a convincing restructuring plan. Creditors are requesting their debt be swapped for controlling stakes, the people said, after Evergrande proposed offering 17.8 percent of the parent and 30 percent of each of the subsidiaries – Evergrande Property Services Group and China Evergrande New Energy Vehicle Group. Read more>>

Blackstone Raises $2.6B for Real Estate Secondaries Deals

Blackstone has finished fundraising for its largest vehicle yet dedicated to acquiring stakes in funds of other private investment firms focused on real estate and aims to take advantage of a growing need for cash among investors in the sector.

The New York-based private equity firm collected $2.6 billion for its Strategic Partners Real Estate VIII fund and related vehicles, or about 37 percent more than the $1.9 billion raised for a predecessor programme that wrapped up in 2020, the firm said. Read more>>

Vietnam Arrests Chairman of Developer LDG Investment

Vietnam police arrested the chairman of builder LDG Investment JSC for allegedly deceiving customers of a residential project that was reportedly launched without necessary permits.

Nguyen Khanh Hung, chairman of LDG Investment, was held by police in Vietnam’s southern province of Dong Nai as part of an ongoing probe, according to a statement. The arrest is the latest in a series of crackdowns on erring government officials and business executives since 2021 ordered by the nation’s Communist Party. Read more>>

ESR Sues for Defamation in Sabana Internalisation Battle

Industrial giant ESR and activist investor Quarz Capital are facing off in court over alleged defamatory statements made during the latter’s push to internalise the management function of Sabana REIT.

The case is currently ongoing before Singapore’s Supreme Court, with the next case conference scheduled for 5 December. The case was lodged by claimants E-Shang Infinity Cayman and ESR Group, the sponsor of Sabana REIT, on 31 July. Read more>>

India’s DLF Mulls First Bond Issue in Three Years 

India’s DLF is mulling its first sale of bonds in three years amid a revival in the country’s real estate market, three merchant bankers said Thursday.

“The company is engaging with investors and bankers for a bond issue but it has not firmed up any plans yet,” a banker with a private lender said, requesting anonymity because he is not authorised to speak to the media. Read more>>

One-Off Property Tax Rebate to Take Edge Off Singapore Tax Spike in 2024

Singapore homeowners will face a higher property tax burden next year as both annual values and tax rates rise, prompting the government to hand out a one-off rebate to soften the blow.

Owner-occupiers of residential properties will receive a one-off property tax rebate in 2024 to help address cost-of-living concerns and the upcoming increase in property tax, the Ministry of Finance and the Inland Revenue Authority said Thursday. Read more>>

McKinsey Says China Consumption Shows ‘No Sign’ of a Strong V-Shaped Recovery

China’s consumer isn’t going to be spending big anytime soon, which means companies need to be more strategic to tap what’s still a massive market, according to McKinsey.

“I’m hopeful we will see an incremental improvement over the next year,” said Daniel Zipser, leader of McKinsey’s Asia consumer and retail practice. Read more>>

S&P Says India Will Drive Asia’s Growth for Next Few Years

As China’s economy slows, the main engine of growth in Asia Pacific will move away from the world’s second-largest economy to South Asia and Southeast Asia, according to S&P Global.

India’s economy is expected to power ahead in the next three years, leading growth in the region. India’s GDP for the fiscal year ending March 2024 is predicted to hit 6.4 percent, the credit rating agency said Monday in a separate report — higher than the previous forecast of 6 percent. Read more>>

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