Moody’s Downgrades Logan Group Over Default Risk and More Asia Real Estate Headlines

Moody’s Downgrades Logan Group Over Default Risk and More Asia Real Estate Headlines

Ke Hoi Pang’s Logan Group looks like risky business to Moody’s

In today’s roundup of regional news headlines, mainland developer Logan Group suffers a credit downgrade amid default risks, shares of cash-strapped Kaisa’s property management unit sink to a post-IPO low, and SGX-listed ARA US Hospitality Trust agrees to sell a Chicago-area hotel.

Moody’s Downgrades Logan Group Over Default Risk

Moody’s Investors Service has downgraded Chinese developer Logan Group’s corporate family rating to Caa2 from B2, and its senior unsecured ratings to Caa3 from B3, the credit ratings provider said Thursday. At the same time, the company has changed the outlook for Logan to negative from ratings under review.

The downgrade concludes Moody’s most recent rating review of Logan’s ratings initiated on 7 March. “The rating downgrade reflects the company’s heightened refinancing and default risks because of its weakened contracted sales, deteriorated funding access and sizable debt maturities over the next 12 months,” said Cedric Lai, a Moody’s vice president and senior analyst. Read more>>

Kaisa Prosperity Shares Fall to Lowest Level Since IPO

Shares of Kaisa Prosperity Holdings fell to their lowest intraday level since listing more than three years ago after the company warned of narrowed 2021 profit due to depressed homebuying sentiment.

The property management unit, owned by cash-strapped Chinese developer Kaisa Group Holdings, saw its Hong Kong-listed shares drop by more than 25 percent in morning trading Wednesday to as low as HK$5.39 ($0.69) a share. Read more>>

Hidden Debt Fears Unravel Lucrative Lifeline for China Builders

What used to be a gold mine for Chinese developers has become a burden as the industry’s credit crunch intensifies.

Urban redevelopment projects, which turn run-down areas into new properties in big cities, were sought after by builders like Logan Group and Times China Holdings in recent years for their prime locations and hefty margins. Read more>>

ARA US Hospitality Trust to Sell Hyatt Place Chicago Itasca for $7.8M

The managers of Singapore-listed ARA US Hospitality Trust have announced plans to sell Hyatt Place Chicago Itasca for a consideration of $7.75 million.

A conditional purchase and sale agreement was entered into with Puerto Rican firm IHP Hospitality on Thursday. Read more>>

Reliance Is World’s Second Fastest-Growing Retailer

Mukesh Ambani’s Reliance Retail is the second fastest-growing retailer in the world, according to a recent Deloitte report.

Reliance Retail’s efforts to broaden its digital capabilities through expansion of its e-commerce platform, JioMart, and several key acquisitions of e-commerce businesses may have led to its growth, Deloitte said. Read more>>

Seoul, Taipei Among Fastest-Growing Major Luxury Markets

Knight Frank’s list of the top 10 markets that saw the most growth in luxury residential prices in 2021 featured just two Asia Pacific cities: Seoul and Taipei.

According to The Wealth Report, prime prices in Dubai accelerated 44 percent in 2021, sending the emirate to the top of Knight Frank’s Prime International Residential Index 100. After seven years of negative price growth and with overall prices still 30 percent below their 2014 peak, Dubai’s relative value came into focus in 2021. Read more>>

Investors Cheer China’s Pledge to Support Bruised Property Sector

Chinese property shares extended a rally on Thursday as the market cheered pledges by Beijing’s top economic leaders to shore up the battered real estate sector amid growing pressures at home and abroad.

Vice Premier Liu He, China’s economic tsar, said Wednesday that the government must reduce risks in the industry. He proposed measures to facilitate a new development model for the sector. Read more>>

APAC Real Estate Investment Predicted to Be More Competitive in 2022

Investor confidence in Asia Pacific real estate remains strong, with nine in 10 expecting increased capital deployment this year. This is on the back of a record $177.3 billion recorded in 2021.

Based on the survey results, 41 percent of survey respondents said they expect volumes to rise to between $178 billion and $192 billion, while 9 percent said they expect volumes to be even higher. Read more>>

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Author: admin