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GIC spends euros, rupees and pesos; The Center loses Chinese investor

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.

GIC partnerships

* GIC landed a number of real estate transactions this week. The most high-profile of them is GIC's participation in a consortium that is taking a 55% majority stake in AccorHotels's property arm for €4.4 billion in cash. Aside from the Singaporean sovereign wealth fund, other members of the consortium for the AccorInvest interest include the Public Investment Fund of Saudi Arabia, Colony NorthStar Inc. and Amundi SA.

* In India, GIC is in early discussions for an up to 40% interest in the business parks development subsidiary of Prestige Estates Projects Ltd. The stake in Prestige Exora Business Parks Ltd. is believed to be worth 26.00 billion rupees.

* A GIC joint venture is also buying a grade A commercial complex in Gurgaon, India, through a joint venture with a DLF Ltd. subsidiary for an undisclosed price. Another unit of DLF, DLF Home Developers Ltd., bought the 11.76-acre site for the project for a record 14.96 billion rupees. Once the development is completed, the GIC joint venture will step in.

* GIC is also investing some 5.5 billion Mexican pesos into a joint venture that will pour money into Mexico's multifamily property market. Together with CIM Group LP and Compass Group LLC, GIC will develop and manage mid- to high-rise residential buildings in Mexico City, Guadalajara, Monterrey and other cities in the country.

Win some, lose some

* Billions of yen worth of transactions were seen in Japan's real estate market this week. Prologis Inc.'s Nippon Prologis REIT Inc. signed a roughly ¥61.90 billion contract to buy five logistics parks, GLP J-REIT wrapped up a six-asset portfolio deal worth about ¥77.06 billion and Daiwa House REIT Investment Corp. is buying 16 logistics, retail and hotel properties for approximately ¥96.98 billion.

* The Chinese lead in the consortium that agreed to buy The Center in Hong Kong from CK Asset Holdings Ltd. is backing out of the HK$40.2 billion deal. China Energy Reserve & Chemicals Group's role in the C.H.M.T. Peaceful Development Asia Property Ltd. consortium is reported to be going to other Hong Kong investors, including Shimao Property Holdings Ltd. Chairman Hui Wing Mau.

While the record transaction is still expected to push through, it is believed that the surprise exit of the Beijing-based investor is evidence of the Chinese government's tighter grip on offshore investments.

* Meanwhile, CK Asset Chairman Li Ka-Shing agreed to sell 2.33 million square meters of properties in Jiangmen, China, to local developer Guangzhou Yuetai Group Co. Ltd. for an undisclosed price.

Eye on the money

* After its shopping center subsidiary's record-making IPO in Vietnam, Vingroup JSC is tipped to be laying the groundwork for the listing of its Vinhomes residential property business. Sources by Reuters were reported as saying that the Vietnamese company has tapped four overseas banks for the unit's US$1 billion IPO.

* LOGOS is setting up a roughly A$500 million fund that will target high-quality core and core-plus logistics properties along Australia's eastern seaboard. LOGIS Australia Logistics Portfolio will be a joint endeavor between the logistics property specialist and an unnamed Australian investor.

* Two giant Hong Kong-listed companies reported their earnings Feb. 27. New World Development Co. Ltd. saw profit for the six months ended Dec. 31, 2017, surge 126.5% year over year to HK$12.63 billion, while Sun Hung Kai Properties Ltd.'s underlying profit attributable to shareholders during the period increased 36.7% to HK$19.97 billion from HK$14.61 billion.

In a press conference, Sun Hung Kai Properties Chairman Raymond Kwok said the company will "actively seek opportunities" in top-tier cities in the mainland to boost rental revenue.

Featured during the week on S&P Global Market Intelligence

Home prices begin decline over January in China's top-tier cities

China's capital controls cast shadow on record deal for Hong Kong skyscraper

Celestyn Wong contributed to this report.

As of March 1, US$1 was equivalent to 65.29 Indian rupees, ¥106.93 and 18.84 Mexican pesos.