S&P Global Market Intelligence offers our top picks of Asia-Pacific real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.
The end of an era
* CK Hutchison Holdings Ltd. and CK Asset Holdings Ltd. Chairman Li Ka-shing officially announced his retirement March 16 during the company's annual earnings conference, putting an end to a yearlong speculation that the 90-year-old magnate was due to vacate his role as head of the Hong Kong powerhouses. The elder Li will be succeeded by his elder son Li Tzar Kuoi, Victor.
Counting money
* In the same briefing, CK Hutchison reported that its profit attributable to ordinary shareholders weighed in at HK$35.1 billion, up 6% year over year from approximately HK$33.01 billion. CK Asset announced profit attributable to shareholders for full-year 2017 of HK$30.13 billion, marking a rise of 55.2% from HK$19.42 billion in the year-ago period.
* Wheelock and Co. Ltd.'s core profit for full year 2017 decreased 64% year over year to about HK$1.11 billion from roughly HK$3.09 billion.
* Swire Properties Ltd.'s operating profit for 2017 jumped 102% to about HK$34.93 billion from HK$17.32 billion in the year-ago period. Its parent, Swire Pacific Ltd., recorded a 55% increase in consolidated underlying profit attributable to shareholders during the reported period.
* Blackstone's Blackstone Real Estate Partners Asia II, a pan-Asian opportunistic real estate fund, is reportedly on track to hit its roughly US$7 billion hard-cap target.
HNA keeps busy
* Once an acquisitive conglomerate from China, HNA Group Co. Ltd. is now progressively shedding assets instead. Following a recent deal to sell a land plot in Hong Kong at a premium for nearly HK$6.36 billion, HNA has shifted its attention abroad and back home in China this week.
Offshore, an HNA subsidiary launched a secondary offering for all its shares in global timeshare company Hilton Grand Vacations Inc. in a deal worth approximately US$1.03 billion. Due to the latest move and recent stake divestments in other Hilton Worldwide Holdings Inc. spinoffs, Bloomberg Markets reported, citing an analyst, that there is market speculation that HNA could soon sell its US$6.7 billion stake in Hilton Worldwide.
At home, HNA Infrastructure Investment Group Co. Ltd. is selling its property and logistics subsidiaries in Hainan, China, to Sunac China Holdings Ltd. for 1.93 billion yuan.
* Amid its reported 100 billion-yuan asset divestment spree, HNA Group signed cooperation deals with property firms Jones Lang LaSalle Inc. and Cushman & Wakefield to forge a strategic partnership and receive integrated services, respectively.
News for the bourses
* DBS Vickers forecasts that the first standard real estate investment trust could surface on a Chinese bourse as early as 2018. Furthermore, it is believed that early REIT issuers will choose state-owned prime developers in tier-one cities like China Resources Land Ltd., Joy City Property Ltd. and China Jinmao Holdings Group Ltd.
* Indian developer Karda Constructions Ltd.'s IPO on the Bombay Stock Exchange and National Stock Exchange of India Ltd. launched March 16. The company says it plans to use proceeds, which could reach as much as 774.0 million rupees, from the listing to mostly repay debt.
* GreenTree Hospitality Group Ltd. upsized its planned NYSE listing to offer 22,310,000 class A ordinary shares, aiming to bring in US$301.1 million in net proceeds, based on the midpoint of its price range of US$16.00 to US$18.00 per share.
Collapse and build
* Blackstone Group LP's planned acquisition of an Indian residential fund for about 8.00 billion rupees fell through due to a difference of opinion regarding valuations. Urban Infrastructure Opportunities Fund and the private equity giant were believed to have been in advanced stages of negotiations when talks broke down.
* Instead of the original April 11 date, Westfield Corp. security holders will meet May 24 for their annual general meeting and to also decide the fate of Unibail-Rodamco SE's US$15.68 billion takeover offer for the company. If approved, the merger, said to be the biggest in Australia's history, would be one step closer to fruition, leaving Unibail shareholders' approval and the OK from certain regulatory bodies and the Australian court, among other things.
While the surprise merger was announced December 2017, Frank Lowy's adviser Robert Leitão, told The Australian Financial Review's Chanticleer column in an interview that Unibail approached the company in September that same year, but things went south after Unibail completed an eight-week due diligence. Leitão, the head of Rothschild Global Advisory, recalls that Frank Lowy then intervened and flew to Paris to meet with Unibail CEO Christophe Cuvillier to seal the deal.
Wheelock deems it paid market price for HNA's Kai Tak, Hong Kong, land plot
Swire Pacific bets on investment properties for future growth
Celest Wong contributed to this report.
As of March 15, US$1 was equivalent to 6.32 yuan and 64.98 Indian rupees.
