Hong Kong based real estate developer Road King Infrastructure (RKI) is set to have its third consecutive weekend of bumper sales, having sold over 70% of the units on offer this past weekend. RKI, rated Ba3/BB-, sold 120 units out of the 168 units on offer at its South Land project at the Wong Chuk Hang subway station, the first residential property development atop a public transport terminal in nearly three decades, as per the SCMP. This comes after the developer sold 433 flats worth HKD 9.4bn ($1.2bn) in the prior two weekends. The strong demand underscores Hong Kong’s economic recovery following an expansion of 7.9% in Q1, the largest in 11 years. Midland Realty’s residential division chief executive Sammy Po explains, “Along with a low interest rate environment and ample liquidity, the coronavirus situation in Hong Kong has been contained quite well and the economy has also seen a strong rebound. All these factors are sending positive signals to prospective buyers, [encouraging them] to enter the market.”
Road King’s 5.2% 2026s are currently trading at 100.75 yielding 5.02% while its 7.95% perp callable in February next year is trading at 98.625 yielding 9.88%.
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