HSBC, StanChart Raise Hong Kong Mortgage Rates

Higher interest rates for Hong Kong homebuyers lead today’s survey of real estate news from around the region as the city’s biggest lenders adjust to central bank moves. Also making the list today is a Swire ground-breaking on a Miami supertall, Blackstone’s India mall REIT and FedEx shipping itself to Singapore.

HSBC Raises Best Hong Kong Mortgage Rate to 5.75% After Central Bank Move

Hong Kong’s biggest lenders will raise their prime rates by 12.5 basis points to a fresh 15-year high from as early as Friday, following another round of policy tightening as the Hong Kong Monetary Authority (HKMA) told consumers to brace for more pain.

HSBC and its subsidiary Hang Seng Bank will reset their best lending rates to 5.75 percent from 5.625 percent, starting on Friday, according to separate statements, while Bank of China (Hong Kong) will reprice to the same level from Monday. Standard Chartered and the Bank of East Asia have decided to raise to 6 percent from Monday. Read more>>

Swire, Related Break Ground on Miami’s Tallest Commercial Tower

Big changes are coming to the heart of Miami’s Financial District and skyline. Related Companies has partnered with Swire Properties to build the tallest commercial building in Florida, but first, they needed the space to build. On Thursday morning, the companies took another step towards construction by starting demolition on the 51-year-old building currently on the site.

“It’s the kind of space that will really will attract first-class corporations to be here,” said Stephen Ross, the founder of Related Companies. The more than 1,000-foot high super tower, to be called One Brickell City Centre, is expected to be the tallest commercial office building in Florida. Read more>>

Brookfield, Tata Said Mulling Investment in Blackstone India Mall REIT

Brookfield Asset Management and Tata Group are in talks to invest in the upcoming initial public offering (IPO) for Nexus Malls, betting that the Indian real estate investment trust will benefit from a rise in the country’s consumption levels, two sources told Reuters. The IPO, the first-ever by an Indian retail REIT, comes at a time when volatile markets and global macroeconomic challenges have scuppered or delayed various listing plans in India.

Blackstone Inc-owned Nexus is seeking a valuation of about $3 billion and plans to raise about $390 million in the share sale, a newspaper advertisement showed on Wednesday. Read more>>

Mainland Tycoon Hopes to Get Back Hong Kong Holdings After Default

Chinese tycoon Chen Hongtian is in discussions with lenders to retrieve assets worth HK$10 billion ($1.27 billion) after a “short-term liquidity issue” forced him to miss mortgage payments.

There are plans to inject fresh funds to resolve the “mild default” issue related to three properties, including a HK$2.1 billion house on The Peak, said the chairman of Cheung Kei Group, which owns offices, hotels and finance firms in Hong Kong. Read more>>

FedEx Set to Shift APAC HQ From Hong Kong to Singapore

FedEx Corp. is planning on moving its Asia-Pacific regional headquarters to Singapore from Hong Kong – another blow to the city’s image as an international business hub.

In an emailed statement, FedEx said it will consolidate some Asia Pacific, Middle East and Africa (AMEA) headquarters functions in Singapore “to connect all of our operations in this region with greater speed and agility.” The company said it will retain a “significant” presence and leadership roles in Hong Kong. The courier has 35,000 workers in the region and provides service to more than 100 countries, FedEx said. Read more>>

Sino-Ocean Capital Seeks to Delay Payment on USD Bond in Latest Default

An affiliate of Chinese state-backed developer Sino-Ocean Group Holding Ltd. is adding to a wave of debt extensions among Chinese builders by seeking to delay a coupon payment as liquidity worsens further in the real estate sector.

Sino-Ocean Capital Holding Ltd. is proposing to set back its interest payment to October instead of April for its 6 percent dollar notes maturing October 2023, according to a consent solicitation document seen by Bloomberg. Read more>>

Majority of Sunac Creditors Said to Back Restructuring Plan

Embattled property developer Sunac China Holdings Ltd said on Thursday that about 85 percent of its existing bondholders had agreed to a proposal on debt restructuring.

The company had met the minimum requirement for the proposal in late April, after creditors holding about 75 percent of its existing debt had agreed to the restructuring, but said some of them needed additional time to complete certain “internal processes”. Read more>>

Hong Kong Home Buyers Ignore Higher Rates to Buy Up SHKP Project

Homebuyers turned up in droves and snapped up the second batch of flats at Sun Hung Kai Properties’ University Hill project in Tai Po, New Territories, on Thursday, even after HSBC raised its prime rate within hours of the latest interest-rate hike by Hong Kong’s de facto central bank.

Hong Kong’s biggest developer sold out all 191 units available by 5.30 PM, suggesting that homebuyers have shrugged off rising mortgage loan costs, according to agents. Read more>>

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