KUALA LUMPUR, Dec 12 (Bernama) -- Bursa Malaysia’s key index closed higher today on bargain hunting, in line with positive investor sentiment across regional markets, consolidating at its highest level in more than two months — a level last seen on Oct 2, 2025. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.42 points, or 0.76 per cent, to 1,637.81, compared with Thursday’s close of 1,625.39. The benchmark index opened 2.83 points lower at 1,622.56, thereafter edged down to an early low of 1,622.03, before staging an uptrend to an intraday high of 1,640.36 in late trading. Market breadth was positive, with gainers trouncing decliners at 743 versus 387. Another 530 counters were unchanged, 1,108 untraded, and 16 suspended. Turnover increased to 3.09 billion units worth RM2.46 billion from 2.99 billion units worth RM2.35 billion on Thursday. Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the FBM KLCI ended higher on continued...
Key Takeaway: United Overseas Bank (UOB) has agreed to roll over a HK$10 billion (US$1.3 billion / RM5.4 billion) loan tied to Shimao Group’s luxury Beacon Peak project, as Hong Kong’s prolonged property downturn forces lenders to extend credit rather than absorb losses.
Loan Extension Details
Borrower: Shimao Group Holdings Ltd (defaulted developer)
Project: Beacon Peak luxury apartments near Kowloon Tong
Loan size: HK$10 billion
Original maturity: Sept 30, 2025
New terms: Extended for three years by UOB
Earlier efforts to sell the loan to private credit investors — including Davidson Kempner Capital Management and Ares Management Corp — fell through.
Property Sales Progress
Beacon Peak launched sales in January 2025.
As of Sept 2, only 17 of 332 units sold in its first phase.
Sale prices ranged from HK$13.4 million to HK$37 million per unit.
The latest deal: 1,555 sq ft unit sold for HK$32.3 million.
Proceeds from sales will go first toward repaying the loan’s principal, interest, and project-related fees, with unsecured creditors (including bondholders) only receiving payment if surplus remains.
Wider Market Context
Hong Kong’s property slump has forced lenders into repeated rollovers and restructurings:
Emperor International Holdings Ltd secured extensions on HK$16.5 billion overdue loans.
New World Development Co raised a record HK$88.2 billion in June through refinancing.
Banks are increasingly “kicking the can down the road” to avoid immediate write-downs, with no clear rebound in sight.
UOB’s Position
UOB became the sole lender on the Beacon Peak loan in 2022, after taking over from a syndicate of other banks.
The facility is one of the offshore assets included in Shimao’s restructuring proposal.
Outlook
The loan rollover underscores how Hong Kong’s luxury property projects — once seen as safe assets — remain under severe stress. With sluggish sales and falling investor appetite, developers and lenders alike face mounting pressure to buy time through extensions and refinancings.
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