Latest news with #HendersonLand
Time of India
10-07-2025
- Business
- Time of India
Hong Kong's Henderson Land to raise $1 billion through convertible bonds
BENGALURU | HONG KONG : Henderson Land Development is raising HK$8 billion ($1.02 billion) through convertible bonds for general corporate purposes and refinancing, the Hong Kong property developer said. The convertible bond issue was announced on Tuesday by Henderson Land, which was founded by Lee Shau Kee , the late Hong Kong property magnate and one of the city's richest men. The initial conversion price is HK$36 per share, and, if the bonds are converted fully, will increase Henderson Land's equity capital by 4.6%. Henderson Land's shares tumbled by as much as 11% on Wednesday morning to HK$25.2 in a reaction to the announcement, before trimming the loss to be down 8.6%. The main Hang Seng Index was down 0.7%. The shares have gained around 36% in the past three months, riding on the property sector's low valuations and on expectations that the property market was bottoming out. "It is likely a chance for profit-taking, given there's still uncertainty in the property market," said an independent Hong Kong-based analyst, referring to the stock's sharp drop on Wednesday. Hong Kong's home prices have dropped by nearly 30% from a 2021 peak, while office vacancy rates reached record highs. Henderson Land is one of the largest office landlords in the city's Central Financial District, facing pressure from oversupply. Henderson Land said in the filing on Tuesday that the fundraising would "diversify the funding sources of the group" for its ongoing business development. Morgan Stanley said in a note that the convertible bonds' interest rate of 0.5% is much lower than the group's 4.51% average funding cost last year, and it could save annual interest of HK$320 million. The net proceeds from the issue of the bonds will be around HK$7.92 billion, Henderson Land said.
Business Times
09-07-2025
- Business
- Business Times
Hong Kong's Henderson Land to raise US$1 billion through convertible bonds
[HONG KONG] Henderson Land Development is raising US$1.02 billion through convertible bonds for general corporate purposes and refinancing, the Hong Kong property developer said. The convertible bond issue was announced on Tuesday by Henderson Land, which was founded by Lee Shau Kee, the late Hong Kong property magnate and one of the city's richest men. The initial conversion price is HK$36 (S$5.87) per share,and, if the bonds are converted fully, will increase Henderson Land's equity capital by 4.6 per cent. Henderson Land's shares tumbled by as much as 11 per cent on Wednesday (Jul 9) morning to HK$25.2 in a reaction to the announcement, before trimming the loss to be down 8.6 per cent. The main Hang Seng Index was down 0.7 per cent. The shares have gained around 36 per cent in the past three months, riding on the property sector's low valuations and on expectations that the property market was bottoming out. 'It is likely a chance for profit-taking, given there's still uncertainty in the property market,' said an independent Hong Kong-based analyst, referring to the stock's sharp drop on Wednesday. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Hong Kong's home prices have dropped by nearly 30 per cent from a 2021 peak, while office vacancy rates reached record highs. Henderson Land is one of the largest office landlords in the city's Central Financial District, facing pressure from oversupply. Henderson Land said in the filing on Tuesday that the fundraising would 'diversify the funding sources of the group' for its ongoing business development. Morgan Stanley said in a note that the convertible bonds' interest rate of 0.5 per cent is much lower than the group's 4.51 per cent average funding cost last year, and it could save annual interest of HK$320 million. The net proceeds from the issue of the bonds will be around HK$7.92 billion, Henderson Land said. REUTERS
New Straits Times
09-07-2025
- Business
- New Straits Times
HK's Henderson Land to raise US$1bil via bond issue
KUALA LUMPUR: Hong Kong-listed property developer Henderson Land Development said on Tuesday it intends to raise HK$8.00 billion (US$1.02 billion) via its issuance of guaranteed corporate bonds. The firm said it intends to use net proceeds of the raised amount for general corporate purposes and refinancing. The company added that the raising would "diversify the funding sources of the group" for its ongoing business development. Henderson Land had proposed the issuance of the bonds earlier in the day in a separate statement, but did not mention the amount to be raised at the time. The net proceeds from the issue of the bonds will be around HK$7.92 billion, the firm said. The property developer said an application for the bonds to be listed on the Vienna MTF operated by the Vienna Stock Exchange or other internationally recognised stock exchanges will be made by the firm, along with another application for a listing on the Hong Kong Stock Exchange. The company was founded by Hong Kong property magnate Lee Shau Kee, , one of the city's richest men, who passed away in late March at the age of 97.
Bloomberg
08-07-2025
- Business
- Bloomberg
Henderson Land Seeks $1 Billion From Convertible Bonds
Henderson Land Development Co. is seeking to raise HK$7.85 billion ($1 billion) from the sale of convertible bonds. The Hong Kong developer is issuing the bonds through Happy Ever Holdings Ltd., an indirectly wholly owned unit, according to terms of the deal seen by Bloomberg News. The notes, due in 2030, will be convertible into Henderson shares. The company has the option to increase the size of the offering by HK$150 million.
Business Times
29-06-2025
- Business
- Business Times
Hong Kong real estate gets short-term loose-money bump
[HONG KONG] Two of Hong Kong's iconic property landmarks are benefiting from the city's surprisingly loose short-term lending environment, although analysts say this is most likely a temporary blip unless there is an overhaul of the city's long-standing currency peg to the US dollar. The Henderson – a new 36-storey, curvy glass tower by Henderson Land that is designed to resemble the bud of Hong Kong's official flower, the bauhinia – has an 80 per cent occupancy rate since it was completed last year. Across Victoria Harbour on the waterfront promenade stands Victoria Dockside, a sprawling mall, office and hotel complex that its developer, New World Development, is pledging for debt repayment. On May 30, New World announced the deferral of payments on some of its senior perpetual bonds, sparking concerns among investors about the company's liquidity. Both developers – the most leveraged of Hong Kong's top four players – are beneficiaries of what several analysts described as an 'unusual' spread between short-term Hong Kong dollar lending rates and US Federal Reserve fund rates. Confluence of factors This is due to a confluence of factors, including interventions by the Hong Kong Monetary Authority to maintain the US dollar peg and a sluggish appetite for the local currency. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The US dollar peg means that, in theory, Hong Kong and US rates should move in lock step. Instead, the spread has reached its widest point since 1988, resulting in effective mortgage rates dropping from 3.5 per cent to 2 per cent, and bringing at least a 5 per cent net profit improvement for many developers, indicated estimates by Morgan Stanley. Hong Kong developers are planning to build more than 20,000 units annually in 2025 and 2026. PHOTO: REUTERS Henderson and New World in particular are receiving a much-needed financial facelift from the low one-month Hong Kong interbank offered rate (Hibor), which has remained around 0.6 per cent since the sudden shift on May 5 from 3.98 per cent to 0.59 per cent. The one-month Hibor fell to as low as 0.55 per cent in June from more than 4 per cent two months prior, though longer-term lending rates remain elevated. Morgan Stanley calculated that cash interest expense amounts to as much as 70.4 per cent and 122.9 per cent, respectively, of Henderson and New World's underlying profit. Hong Kong's home mortgage borrowers are also getting relief through falling short-term lending rates to which their mortgage payments are linked. Residential buying interests are also piqued by the lower lending rate. Adding to that is a push from discounted inventory sales in a competition by developers to obtain cash or seize market share. 'For residential, (Hibor and mortgage rates have) always been highly correlated. The commercial property market is also correlated, but it's more nuanced because there are fewer commercial transactions in the market, and the investment cost is substantial,' said Roddy Allan, the head of Asia-Pacific research at JLL, an industry consultancy. 'So the market is much less liquid. There's less of a correlation – but there's still a correlation there for sure.' He cited recent government data to show a doubling of transactions for new flats to 2,259 in the month to May 25, as the effect of the low Hibor rates kicked in. Grade A offices In May, vacancy in Grade A offices also improved on average to 13.6 per cent, following a correction of a 40.5 per cent decline in rental of Grade A offices in the first quarter of this year, down from the peak in the third quarter of 2019, indicated JLL. If all this sounds too good to be true for property borrowers and buyers, S&P Global's credit analysts fret about an upcoming flood of discounted flats to hit the market in an already oversupplied residential market. Figures from the Housing Bureau of Hong Kong show that completed new homes and unsold inventory stood at 28,000 units as at March 2025. And developers are still building – planning more than 20,000 units annually in 2025 and 2026. Offering deep discounts to boost sales of new homes has proven to be a successful formula for developers in recent years. Sun Hung Kai Properties has sold 1,520 units at its Sierra Sea development in Sai Sha since they went on sale in May, representing a sell-through rate of 96.5 per cent. They achieved this by offering prices 20 per cent lower than those of comparable nearby homes listed in the secondary market. Earlier in June, The Henley in Kai Tak, built by Henderson Land, sold 98 per cent of its flats at prices on average 18 per cent lower than previous launches. Unless the US dollar peg breaks, analysts say the current renaissance for the local property market will be short-lived. The anomaly of low short-term interest rates cannot be sustained without a further cut in rates by the US Federal Reserve, as carry trades to arbitrage the differing rates and rising demand for Hong Kong dollars could 'bring the rate back to a normal level', said analysts at Morgan Stanley. Analysts' expectations Some analysts expect the commercial property market to bottom out some time in 2026. Rebecca Tang, director of Asia-Pacific corporate ratings at Fitch Ratings, projects the vacancy rate for Hong Kong's Grade A offices to trend up towards 20 per cent over 2025 and 2026, although she said that is likely due to new completions in the pipeline. The vacancy rate for grade A offices stood at 17.4 per cent, and for overall offices, at 16.3 per cent as at the end of 2024, indicated Fitch. After that, hopes are high that the commercial market will rebound, albeit gradually. 'While trade tariffs and geopolitics may be causing some delays around decision-making globally, overall we still see some green shoots in the Hong Kong office market even though performance is increasingly diverging,' said JLL's Allan.
