China’s Wanda Delaying $600M Bond Payment and More Asia Real Estate Headlines

China’s Dalian Wanda is asking creditors to give it another year to repay a $600 million offshore bond, with that story leading today’s real estate headlines from around the region. Also in the news, Blackstone says it’s not selling its Chinese sheds and a Portland office building formerly held by a Gaw Capital fund is taken back by the bank after failing to find a cash buyer at a foreclosure sale.

Dalian Wanda Seeks to Delay Payment on $600M Bond Due in January

A key unit of Dalian Wanda Group, one of China’s biggest commercial developers, is seeking to delay payment on a dollar bond maturing next year, as the country’s property sector woes spread to key players.

Wanda Properties International is looking to extend the maturity date of a $600 million bond due in January by almost a year to December 2024, according to a filing with the Hong Kong stock exchange on Tuesday. It will repay 10 percent of the outstanding principal in January, 20 percent in May, 30 percent in September and the rest when due, according to the terms in its consent solicitation document. Read more>>

Blackstone Denies Report of Mainland Logistics Portfolio Sale

Blackstone is not in discussions with any company about selling 11 of its logistics properties in China, Thepaper.cn reported yesterday, citing a spokesperson from the US asset management giant.

The Paper reported last week that Blackstone would sell 11 logistics parks in China worth over RMB 10 billion ($1.4 billion). Property and casualty insurance provider Ping An Overseas Holdings under insurance titan Ping An Insurance Company of China was named as the buyer  in other media reports. Read more>>

Gaw Portland Office Building Fails to Find Cash Buyer in Foreclosure Auction

The JK Gill Building in Portland, Oregon was auctioned last week, and once again no one showed up with cash to buy it. Gaw Capital Partners and Seattle-based Urban Renaissance failed to repay a $27 million construction loan when it was due in December. At the request of the lender, First Interstate Bank of Montana, a judge put the building into receivership in March.

It went up for auction last week and drew no cash offers, leaving First Interstate to bid $5.8 million using the debt it already holds on the building, which totals about $20 million, according to court filings. Read more>>

Mori Unveils Japan’s Tallest Tower in Tokyo

Towering at a height of 330 metres (1,083 feet), Japan’s newly built tallest skyscraper at the heart of Tokyo was unveiled to the media Monday ahead of its opening later this week, Kyodo reported.

The Azabudai Hills Mori JP Tower, completed this summer by Mori Building Co, beats the previous title holder Abeno Harukas in Osaka by 30 metres and is slightly shorter than Tokyo Tower, the capital’s landmark tower standing at 333 metres. Read more>>

Bain Capital Raises $7.1B in Largest Pan-Asia PE Fund this Year

Bain Capital has completed the final close of its fifth pan-Asia private equity fund at $7.1 billion, exceeding its target by 40 percent, the US investment firm told Reuters, amid a challenging macroeconomic and geopolitical environment that has otherwise impeded fundraising worldwide.

Bain Capital said the firm itself committed $750 million to Bain Capital Asia Fund V, alongside existing and new investors. Read more>>

Sunac Soars After Restructuring $10B in Offshore Debt

Shares in Sunac China surged by as much as 26.6 percent after the Chinese property developer said Monday that its $10 billion overseas debt restructuring is complete, relieving liquidity pressure for the next two to three years.

Sunac’s share price was trading up 18.8 percent at HK$2.77 ($0.36) as of 2pm Tuesday, giving it a market capitalisation of HK$15 billion. Read more>>

Hong Kong’s Biggest Developer Sells Homes at Six-Year Low Price

Sun Hung Kai Properties, Hong Kong’s biggest developer, has lowered the floor for new home prices in the city.

The first batch of units in its Yoho West development has an average price of HK$10,888 ($1,397) per square foot — a six-year low for new homes, according to local newspaper Sing Tao. Developers have been facing mounting pressure to cut prices as Hong Kong’s property market continues to suffer under high interest rates. Read more>>

Office Vacancy Rate in Tokyo Hits 33-Month Low

The office vacancy rate for existing buildings in central Tokyo’s five business districts reached a 33-month low in October. According to office brokerage Miki Shoji, the vacancy rate was 5.36 percent, down 0.71 points from last year and the 16th month in a row to record a year-on-year decrease.  During the month, 13,220 square metres (142,000 square feet) of space was absorbed thanks to some large-scale leases.

The vacancy rate peaked at 6.39 percent in October 2021. It had previously reached a record low of 1.42 percent in February 2020 before rising sharply as the pandemic took hold. Read more>>

Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.