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Birds of a feather; a change of climate


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Birds of a feather; a change of climate

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.

Birds of a feather

* Word on the street is that China Investment Corp., or CIC, is banking on its long history with Blackstone Group LP to secure multibillion-dollar deals. Blackstone is one of the first companies that CIC invested in when the latter was founded in 2007.

Fast forward to about a decade later, and CIC is involved in two real estate portfolios that Blackstone is trying to shed. In Asia, the US$813.76 billion sovereign wealth fund is reported to be interested in the private-equity giant's A$3.5 billion mall portfolio in Australia. Bidding for the 10-asset portfolio closed May 31. On the other side of the pond, CIC is tipped to be leading a race to buy Logicor, Blackstone's logistics platform in Europe, for over 12 billion.

Separately, it was reported that Blackstone closed a deal to sell a Hilton hotel in Amsterdam to another Chinese heavyweight, Anbang Insurance Group Co. Ltd., for approximately €350 million.

A change of climate

* Singapore's CapitaLand Ltd. expanded in China this week with an agreement to buy the newly completed Guozheng Center office complex in Shanghai's Yangpu District for 2.64 billion Chinese yuan.

* Meanwhile, its subsidiary Ascott Residence Trust beefed up its U.S. portfolio with the acquisition of its third hotel in New York City for US$106 million.

* A Hongkong Land Holdings Ltd. unit signed a S$765.8 million deal to buy a 376,713-square-foot site in Singapore zoned for residential purposes.

* Boston-based asset manager Bain Capital Credit LP is reportedly buying a US$200 million portfolio of nonperforming loans secured against commercial retail assets, hotels and industrial assets from a Chinese asset management company.

* Singaporean property investment management company Rockworth Capital Partners Pte. Ltd. purchased a shopping center in Queensland for A$160 million.

Water and grow

* AEP Investment Management and HNA Group's joint venture commissioned Bank of America Merrill Lynch to work on the IPO of a commercial real estate investment trust to be listed on the Singapore bourse.

* China Evergrande Group is moving along with a reorganization deal largely seen as its way to list on the Shenzhen bourse. A unit of the developer said that as of June 1, it has received the full 70.00 billion yuan from its sale of stakes in Hengda Real Estate Group Co. Ltd.

* Boutique hotel operator Ayana Land is offering up to 30% if its enlarged capital to raise 300 billion Indonesian rupiah in a planned July IPO on the Indonesian bourse.

* APN Property Group might be listing a real estate investment trust, or REIT, on the Australian bourse earlier than planned. Initially set to be listed in December, the A$200 million Convenience Retail REIT is purportedly being prepared for a June IPO for trading to commence in July.

* Malaysian property company WCT Holdings Bhd. has reached out to investment bankers and authorities to launch a REIT before 2017-end. The Malaysian trust will hold upwards of 1 billion Malaysian ringgit of assets.

Bloom where you are planted

* Only 44.03% of unit holders voted to approve Investa Office Fund's internalization proposal with the A$10 billion Investa office management platform. The A$45 million stake deal needed at least half of the votes cast at the May 31 meeting to proceed.

Investa Office Management Pty. Ltd., for its part, said it respects the unit holders' decision and continue its relationship with the fund. Investa Office Management first offered to give the fund a 50% stake in the platform in 2011, a bid that was re-launched in March 2016.

The back-and-forth tussle involving the fund, however, is far from over. The fund's longtime suitor, Cromwell Property Group, is believed to be wooing Starwood Capital for support on its A$3 billion takeover bid.

* Mega Regal Ltd. closed its roughly HK$661.6 million mandatory cash offer to buy out Lifestyle Properties Development Ltd. May 31.

* Shui On Land Ltd.'s unit is divesting a 79% stake in Chongqing Shui On Tiandi Real Estate Development Co. Ltd. to China Vanke Co. Ltd. for 4.13 billion Chinese yuan. The project company has a 5.22 billion-yuan portfolio, which is composed of 870,821 square meters of undeveloped land and a project under development with 388,420 square meters of gross floor area in Chongqing, China.

* Still in Chongqing, Sunac China Holdings Ltd. is taking a 60% stake in a Chinese company developing a mixed-use scheme, for 2.10 billion Chinese yuan.

Breaking new ground

* Hong Kong's Lands Department sold a land plot in the Kai Tak area of Kowloon for a record high HK$24.60 billion to a project company formed by a Nan Fung Group subsidiary, Rich Union Development Ltd.

* Majority-state-owned MTR Corp. Ltd. picked the consortium of Sino Land Co. Ltd., China Overseas Land & Investment Ltd. and K. Wah International Holdings Ltd. to develop a residential site in Yuen Long, Hong Kong, for HK$8.33 billion.

* Australia superannuation agency Commonwealth Superannuation Corp. hired Eureka Real Assets to find a buyer for a 50% stake in the A$1.5 billion Indooroopilly shopping center in Queensland.

* Moody's said its 29 most-rated Chinese property developers outperformed the wider market in the face of sustained regulatory measures adopted to control property price growth.

Featured this week on S&P Global Market Intelligence

The Property Ledger: Mah Sing's condo project faces roadblock; Invincible Investment buys ¥8B hotel: The June 1 edition of the Asia-Pacific property news recap also features a PT Lippo Karawaci Tbk unit's acquisition of a hospital in Indonesia and Central Pattana's participation in the joint development of a theme park in Thailand.

IPO Monitor: May: The completion of two initial public offerings in Indonesia, a hospitality company's plans for Croatia's largest IPO in nine years and Paris-based AEW's plans to list in London made news this month.

Celestyn Wong contributed to this report.