DISTRII Singapore, which once operated one of Singapore’s largest co-working spaces, is suing its former chief executive officer for failing to act in good faith and breaching her fiduciary duties. 

Court documents say that Distrii, which failed to pay City Developments Ltd (CDL) over S$2 million in rent (as at February 2024) for its 62,000 square feet of commercial space in Republic Plaza, vacated the premises in March.

Distrii alleged that its inability to pay rent was due to actions taken either by its former CEO Hu Yan or its former employee, Yap Chie Lan.

 Thailand’s new government will move ahead with plans to introduce casinos after a public hearing showed strong support to create a big entertainment complex offering gambling, a senior official said on Thursday (Sep 5).

Casinos and most forms of gambling are illegal in Thailand but soccer betting and underground gaming activities and lotteries are rife, with vast sums of money changing hands.

Only some gambling is permitted, such as state-controlled horse races and on an official lottery.

The conclusion of a public hearing conducted online over a bill to establish a “mega entertainment complex” housing a casino showed 80 per cent of participants agreed with the plan, Deputy Finance Minister Julapun Amornvivat said.

“We will now adjust the bill based on the feedback, discuss this with our coalition partners before sending it cabinet for approval,” Julapun told reporters.

Several Thai governments have pushed to legalise gambling before to try to boost jobs and state revenues and draw more foreign tourists, but each attempt met pushback from conservatives in the Buddhist majority country.

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One of its first advocates was influential billionaire former premier Thaksin Shinawatra, whose youngest daughter Paetongtarn Shinawatra was sworn in as prime minister last month.

Her ally and predecessor, Srettha Thavisin, was the main proponent of the latest casino push but was removed from office by a court decision last month.

The bill is centred on the creation of a broader entertainment complex, but its passage would effectively legalise casinos.

In South-east Asia, Cambodia, Singapore, Myanmar and the Philippines have legalised casinos, some of which are located on the other side of Thailand’s borders, catering overwhelmingly to Thai and Chinese customers, many on weekend junkets.

Paetongtarn’s ruling Pheu Thai Party has argued Thailand has fallen behind its neighbours in the gaming industry.

Her father Thaksin is widely seen as a major force behind her government and in a dinner speech last month backed the casino plan, noting the potential benefits from regulating and taxing online gambling and formalising the larger underground economy. REUTERS

SUN Hung Kai Properties saw profit drop 9 per cent, extending its decline into a third year as Hong Kong’s real estate slump weighs on the city’s biggest developer.

Underlying earnings, which exclude property revaluations, fell to HK$21.7 billion (S$3.6 billion) in the year ended Jun 30, Sun Hung Kai said in a filing on Thursday (Sep 5). The figure also missed the average estimate of HK$22.8 billion from 12 analysts surveyed by Bloomberg.

Expensive borrowing costs and a glut of apartment supply have hurt sales for Hong Kong’s property developers, prompting them to offer discounts to boost transactions. Home prices fell to the lowest level in eight years in July, putting pressure on the residential development business.

Sun Hung Kai’s dividend for the full year was cut by 24 per cent from the previous year to HK$2.80 per share.

The residential market in Hong Kong has “softened” due to high interest rates, the company said in the statement. Property sales revenue fell 4 per cent in the period.

Nonetheless, the group saw a rise of 3 per cent in rental income from its investment properties. Its retail and serviced apartment portfolio offset the loss in the muted office sector. Weak demand pushed office vacancy rates to an all-time high in Hong Kong, and rents may fall as much as 10 per cent this year, CBRE Group estimates.

Other developers are grappling with disappointing earning results. Li Ka-shing’s CK Asset Holdings saw its first-half net income drop by 17 per cent, while New World Development expects to post its first annual loss in two decades. BLOOMBERG

COUNTRY Garden Holdings’ sales slump dragged on in August, exacerbating the Chinese developer’s liquidity woes as it battles a wind-up petition.

Contracted sales for August declined 57 per cent from a year earlier to 3.43 billion yuan (S$629 million), following a 72 per cent drop in July, according to an exchange filing on Thursday (Sep 5).

The poor sales underscore the challenges facing the distressed real estate giant, which is counting on a turnaround in revenue to appease debt holders and fight off liquidation. Country Garden said on Thursday it is considering a fresh holistic restructuring plan for yuan bonds after struggling to raise cash for delayed debt repayments.

Offshore, the Foshan-based firm said in July that it plans to make the restructuring support agreement publicly available to all creditors by October. Its wind-up hearing in Hong Kong has been adjourned to late January.

Country Garden’s August sales decline compares with the 26.8 per cent slide at the 100 biggest real estate companies tracked by China Real Estate Information Corp. In the first seven months, its sales slump more than doubled the average decline seen at the top hundred builders.

Country Garden has seen sharper slowdown than its peers due to its focus on projects in smaller cities. As impact of the latest rescue package wanes, new-home sales in so-called tier-3 cities shrank faster, according to a China Index Holdings note.

“With near 80 per cent of land bank in low-tier cities, Country Garden could struggle to boost its contracted sales,” Bloomberg Intelligence analyst Kristy Hung and Monica Si wrote in a note last month.

Trading of Country Garden’s stocks in Hong Kong remain suspended after it further delayed reporting financial results, citing industry volatility and its ongoing debt restructuring. BLOOMBERG