Novaland chairman Bùi Thành Nhơn and his family are selling down their controlling stake
Vietnamese developer leads today’s collection of real estate headlines as the family behind Novaland sells down its controlling stake to keep the company afloat. Also in the news, China’s central bank replaces its second deputy governor this month and Korean banks are seeing rising default risk in the construction sector.
Controlling Shareholder of Vietnam’s Novaland Selling Down Stake to Pare Debt
Vietnamese developer Novaland this week announced that a company belonging to the family of company founder Bui Thanh Nhon plans to sell down its controlling stake in the Ho Chi Minh City-based firm in an effort to reduce its debts.
The sale of over 2.2 million shares in Novaland could raise VND 37.5 billion ($1.5 million), and would reduce the controlling shareholder’s stake to 19.5 percent, should it prove successful. Earlier this month Novaland informed the Singapore Stock Exchange that it had reached agreement with the majority of investors holding $300 million in notes to delay repayment of that debt. Read more>>
China’s PBOC Names Second Deputy Governor This Month
China’s State Council appointed Lu Lei deputy governor of the People’s Bank of China, the third new senior official at the central bank since July and the second this month.
Lu replaces Liu Guoqiang, who has been a deputy governor of the PBOC since 2018, according to a statement from the Ministry of Human Resources and Social Security. Fu Wanjun was appointed as deputy head of the National Administration of Financial Regulation, said. Read more>>
Korean Banks See Rising Loan Delinquency in Construction Sector
The default rate on construction-related loans is looming large for major banks in Korea, as lenders face increasing delinquency rates for loans made to firms in the construction sector.
Market watchers and financial authorities are closely monitoring the situation over concerns that an uncontrolled risk stemming from the cash-strapped real estate market might expand the scope of the crisis to the overall economy next year. Read more>>
Hong Kong Catering Group Maxim’s Opens Landmark Store
Hong Kong restaurant group Maxim’s opened its 2,000th Asian store in the city, spurred by the recovery in the catering business and with an eye on changing consumption patterns in the post-COVID era.
The group marked the landmark opening with the inauguration of its Simplylife Bakery Cafe in the APM mall, Kwun Tong this month. Read more>>
Chinese Developers Still Facing Strong Bond Repayment Pressure
Chinese developers still face significant bond repayment pressure in 2024, as the principal amount of onshore and offshore bonds maturing rises, Fitch Ratings analysts say.
Non-defaulted private players face sluggish new-home sales, impaired access to debt markets and the need to prioritise project construction, they say. Fitch expects some to postpone repayments via debt restructuring or defaults, as banks stay selective in new loans despite central government guidance to boost lending to the sector. Read more>>
Hong Kong’s Choi Hung Estate Set for Redevelopment
The Hong Kong government has unveiled its redevelopment plan for Choi Hung Estate, with the project to span about 15 years, according to Housing Secretary Winnie Ho.
Some 2,500 households will serve as the first batch of residents for relocation to neighbouring Mei Tung Estate in Wong Tai Sin. They can also purchase a subsidised flat on Wang Chiu Road. The public housing estate in Hong Kong became Instagram-famous for its colourful facade. Read more>>
Manila’s Filinvest REIT Eyes Higher Occupancy
Filinvest REIT, sponsored by Filinvest Group, is planning to invest in ventures that will increase occupancy levels and gross leasable area starting next year.
In a recent disclosure to the Philippine Stock Exchange, the Gotianun-led firm said it was aiming to improve the overall occupancy rate for existing assets and increase assets for infusion before the end of 2026. Read more>>
India’s Real Estate Touches New Heights in 2023, to Continue in 2024
India’s real estate sector, which picked up last year after a two-year halt due to the pandemic, continued to break records in the year 2023 on the back of strong demand and ample supply. The year saw significant growth in new launches and sales across segments.
“The residential market is experiencing a strong demand and ample supply, indicating its resurgence and continued growth this year,” according to a report by JLL. Read more>>
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