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Blackstone fund gains $100M; UNIZO buys $467.5M NY tower; Asia Pacific leads

* Blackstone Group LP's second Asian real estate opportunistic fund attracted another US$100 million after recently topping its US$5 billion target for its first funding round.

The latest investment in Blackstone Real Estate Partners Asia II will come from San Francisco Employees' Retirement System, adding to capital already injected by other investors that include the South Dakota Investment Council, Illinois Municipal Retirement Fund, Teachers' Retirement System of the State of Illinois and the Texas Permanent School Fund.

* Japan-based UNIZO Holdings Co. Ltd. bought a 31-story building with 651,492 square feet of office space and ground-level retail at 685 3rd Ave. in Midtown Manhattan from TH Real Estate for US$467.5 million, marking its sixth acquisition in New York City.

* Institutional real estate portfolios in the Asia-Pacific region attained the highest average annual return in 2016 at 9.3%, beating other regions included in Hodes Weill & Associates and Cornell University's fifth annual Institutional Real Estate Allocations Monitor.

For 2017, global institutional investors' average target allocation to real estate reached 10.1%, up by 20 basis points from 2016, the survey found.

Hong Kong and China

* Mapletree Logistics Trust closed its S$847.6 million purchase of the fully leased Mapletree Logistics Hub Tsing Yi in Hong Kong. The trust completed the purchase of the asset through the acquisition of indirect property owner Mapletree Titanium Ltd. from Mapletree Overseas Holdings Ltd. using a portion of the proceeds from its private placement of new units in September.

* For the nine months ended Sept. 30, China Overseas Land & Investment Ltd., Country Garden Holdings Co. Ltd. and Longfor Properties Co. Ltd. saw year-over-year growth in their respective contracted sales to HK$183.64 billion, 428.17 billion yuan and 128.23 billion yuan from HK$171.46 billion, 225.57 billion yuan and 65.1 billion yuan.

The unaudited 2017 figures reported by the three developers correspond to sales area of 11,288,200 square meters for China Overseas, 47.15 million square meters for Country Garden and 8,336,000 square meters for Longfor Properties.

* Lotte Corp. executive vice president Lim Byung-yun said "detailed talks" are ongoing between Lotte Shopping Co. Ltd. and several companies who have expressed interest in buying its Lotte Mart stores in China. The deal for the sale, managed by Goldman Sachs, is expected to be worth "a couple hundred million dollars" and is targeted to be inked by 2017-end.

The selling of the South Korean retail giant's 99 Lotte Mart stores and 13 Lotte Super stores signals its exit from China, driven by the implications of Seoul's ongoing diplomatic row with Beijing.

* The Ministry of Land and Resources of China began to investigate residential land uses in 70 medium- and large-sized cities plus Suzhou city in September to enforce prompt construction of residential property. The authority said the examination will support effective residence supply and will be concluded before the end of November.


* China Investment Corp. is understood to be holding discussions with Lendlease Corp. Ltd. in a bid to purchase a minority stake in the latter's A$1.7 billion, 12,600-unit portfolio of retirement villages, The Australian Financial Review's Street Talk reported.

The developer had been scouting for potential buyers for a 50% stake in the portfolio, which already drew the attention of Blackstone Group LP, Singaporean wealth fund GIC, Canada Pension Plan Investment Board and Chinese company Cindat Capital Management.

* Avenues Early Learning's portfolio comprising 14 childcare centers across Brisbane is on sale and expected to fetch roughly A$102 million, the AFR reported.


* Canada Pension Plan Investment Board, under a partnership with Keppel Corp. Ltd. subsidiaries Alpha Investment Partners Ltd. and Keppel Data Centres Holdings Pte. Ltd., committed up to US$350 million to the Alpha Data Centre Fund, with an option to inject US$150 million more.

The funding commitment increased the fund's co-investment interest to US$1 billion, Keppel Corp. said in a filing, noting that the fund has the potential to manage roughly US$2.3 billion of assets once fully leveraged and invested.

* Frasers Centrepoint Ltd. subsidiary FCL Treasury Pte. Ltd. issued S$30 million in 4.25% fixed-rate notes due 2026. The new notes, issued under the company's S$3.0 billion multicurrency debt issuance program, were consolidated to form a single series with the S$250 million of 4.25% notes issued in April 2016.

* Owners of the Royalville freehold residential site in Bukit Timah Road have launched the collective sale of the property with a S$368 million asking price, The (Singapore) Business Times reported. Public bidding for the site will close Nov. 10.

* Bernhard Schulte Investment Holding GmbH, a subsidiary of German shipping company Schulte Group, paid S$60 million for the nine-story The Prospex retail and office building, The Business Times reported.


* The city of Wako in Saitama Prefecture will launch a high-rise project around Wakoshi Station that will provide easy access to Tokyo, Tokyo's The Nikkei reported.

* According to office brokerage firm Miki Shoji Co. Ltd., office vacancy rates in Tokyo's five central wards fell to an average of 3.17% in September from 3.35% in August, The Nikkei reported. It was the lowest level since April 2008.


* An alternative investment fund backed by Indian conglomerate Housing Development Finance Corp. Ltd. is planning to invest roughly 1.10 billion Indian rupees in the Virar residential development of Keystone Realtors, The Economic Times of India reported, citing two people with direct knowledge of the matter.

Other real estate news

* C C Land Holdings Ltd. is evaluating its options for a potential expansion into the retail market and shopping center sector of London, where it recently acquired two assets for a combined £1.62 billion.

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The Daily Dose Asia-Pacific, Real Estate edition is updated by 6:30 a.m. Hong Kong time. Some external links may require a subscription. Articles and links are correct as of publication time.

Rollen Catorce, Emily Lai and Jaekwon Lim contributed to this report.

As of Oct. 12, US$1 was equivalent to 6.59 Chinese yuan, 65.05 Indian rupees and S$1.35.