Forest City: Inside Malaysia’s Chinese-Built Ghost City
5 December 2023
In Malaysia, Country Garden’s plan was to build an eco-friendly metropolis featuring a golf course, waterpark, offices, bars and restaurants. The company said Forest City would eventually be home to nearly one million people.
Eight years on, it stands as a barren reminder that you do not need to be in China to feel the effects of its property crisis. Currently, only 15% of the entire project has been built and, according to recent estimates, just over 1% of the total development is occupied.
“It’s a chicken and egg situation,” says Eveline Danubrata, from REDD Intelligence Asia. “A developer typically relies on pre-sales to help fund construction, but buyers won’t put their money in if they’re not sure whether they’ll get their apartment keys in the end.”
Court Gives Evergrande One Last Chance to Agree Debt Deal
30 October 2023
A Hong Kong High Court judge has given crisis-hit Chinese property giant Evergrande one last chance to come up with a new deal over its huge debts or face liquidation.
A winding-up hearing, initially scheduled for Monday, was adjourned to 4 December. Justice Linda Chan said it would be the last hearing before a decision is made.
Justice Chan said Evergrande had to come up with a "concrete" proposal otherwise it was likely the company would be wound up. A liquidator would still be able negotiate with creditors, she added.
“Even if offshore creditors manage to get Evergrande liquidated, the prospects of a recovery are still uncertain for them,” said Eveline Danubrata, Asia Managing Editor at REDD Intelligence.
“Most of Evergrande’s assets are in China. So the company will have to juggle multiple local stakeholders, including homebuyers, banks and government officials,” she added.
Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.