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Link REIT eyes up to HK$25B; CapitaLand JV buys China mall; HNA mulls asset sale

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Link REIT eyes up to HK$25B; CapitaLand JV buys China mall; HNA mulls asset sale

* Gaw Capital Partners, in a partnership with Goldman Sachs Group Inc., is believed to have beaten Blackstone Group LP and KKR & Co. LP, among other interested investors, in the race to buy Link Real Estate Investment Trust's portfolio of 17 Hong Kong shopping centers. Link REIT reportedly agreed to sell the properties to the partnership for a consideration of between HK$20 billion and HK$25 billion.

* CapitaLand Ltd. established a 49/51 joint venture with its CapitaLand Retail China Trust subsidiary to buy for 3.36 billion yuan all the shares of the company that owns the Rock Square shopping center in Guangzhou, China. The deal, which marks CapitaLand's second and CapitaLand Retail's first mall buy in Guangzhou, is expected to be completed by the first quarter of 2018.

In relation to the proposed acquisition, CapitaLand Retail is also planning to launch a private placement of new units to raise at least S$80.0 million to help finance the mall buy.

* Chinese conglomerate HNA Group Co. Ltd. confirmed that it is mulling the sale of some assets, including those in New York and Sydney, as pressure from Beijing to curb capital outflow intensifies.

HNA CEO Adam Tan told Bloomberg News that the company will likely sell assets and holdings in industries in which investments have been discouraged by the Chinese government. He was quoted by the news agency as saying that the company "will not invest in anything the government does not support."

Australia

* The Australian Securities and Investments Commission denied RNY Property Trust's request to intervene in Aurora Funds Management Ltd.'s takeover bid after RNY discovered that some of the trust's unit holders who accepted the offer have yet to receive payment.

* The board of Japanese company Daiwa House Industry Co. Ltd. decided to acquire Australian developer Rawson Group Pty. Ltd. as part of its overseas expansion and growth strategy.

* Dexus revised its plans for the A$426 million hotel and apartment component of its A$1 billion mixed-use development in Sydney's Hyde Park.

Under the revised plans, the 50-level, 350-room luxury hotel intended for the site at 201-217 Elizabeth St. will no longer be connected to the proposed Pitt Street North Metro Station following community concerns, The Australian reported.

* Sydney and Melbourne recorded the highest growth in prime office rents globally in the 12 months to the third quarter of 2017 with respective year-over-year increases of 30.1% and 17.3%, The Australian Financial Review reported, citing JLL figures.

Tim O'Connor, head of JLL's office leasing in Australia, attributed the price hike to factors including a sharp reduction in vacancy rate, which was fueled by the lack of available new supply.

Hong Kong and China

* Analysts cited by The (Hong Kong) Standard are expecting the last unit at Henderson Land Development Co. Ltd.'s residential project at 39 Conduit Rd. in Hong Kong to fetch at least HK$340 million during the apartment's public tender, which will be launched Dec. 1.

The 39 Conduit Rd. project is also home to the penthouse duplex that previously held the record for the priciest address in Asia after it was sold for approximately HK$522 million in September.

* In the same report, The Standard cited Far East Consortium International Ltd. managing director Chris Hoong as saying that the company is expecting stronger home-sales revenue during the second half of 2017 compared with the first half.

* Shui On Land Ltd. subsidiary Shui On Development (Holding) Ltd. is planning to redeem, on Dec. 28, US$300.0 million of its outstanding 9.625% senior notes due 2019, which were issued June 2014 at an aggregate principal amount of US$550.0 million.

* Mortgage lending rates increased in Hong Kong after the Hong Kong Interbank Offered Rate peaked at a nine-year high of 0.9611%, the South China Morning Post reported. Strong demand for Hong Kong dollars helped pushed the HIBOR higher than the 0.367% recorded in June.

The publication, citing data from mortgage brokerage mReferral, noted that more than 95% of mortgages in the city are linked to HIBOR.

Singapore

* Singaporean developer Centurion Corp. Ltd. closed its inaugural private fund with fully drawn-down capital totaling US$89.5 million. The company said the fund was established for the group's acquisition of six purpose-built student accommodation assets in the U.S., which is expected to be completed by 2017-end.

* Keppel DC REIT subsidiary Keppel DC REIT Fin. Co. Pte. Ltd. secured a roughly A$72.2 million revolving credit facility with a term of 5.25 years.

* A subsidiary of Nadathur Fareast Pte. Ltd. is buying the 76-room, six-story freehold New Cape Inn hotel in Tiong Bahru's Seng Poh Rd. for S$67 million, The (Singapore) Business Times reported.

Philippines

* SM Prime Holdings Inc. confirmed a report that it allotted 39.2 billion Philippine pesos for the 2018 capital expenditures of its residential arm, SM Development Corp., as the subsidiary looks to further expand its footprint outside metro Manila.

* For 2018, Cebu Landmasters Inc. is aiming to record 42% year-on-year growth in its sales to achieve its 1.7 billion-peso net income target for 2018, higher compared to the 1.2 billion-peso target for 2017.

The Manila Times, citing Cebu Landmasters CFO Stephen Tan, also reported that the Philippines-based developer could issue bonds from its 10 billion-peso shelf in three tranches with respective amounts of 3 billion pesos, 2 billion pesos and 5 billion pesos.

Japan

* Activia Properties Inc. is planning a public offering of new investment units with hopes of raising roughly ¥14.04 billion in net proceeds, which it will use for its planned ¥23.57 billion acquisition of three Japanese assets from Cosmos Corp. and Tokyu Land Corp.

* Koei Tecmo Holdings Co. Ltd. subsidiary Koei Tecmo Games Co. Ltd. will acquire a real estate complex in Minato Mirai 21 District of Yokohama, on which Mitsubishi Estate Co. Ltd. will construct an office building to accommodate approximately 1,600 people and a residential building for roughly 2,000 people. The complex construction is expected to complete in January 2020, Social Game Info reported.

* Mitsubishi Estate is also developing the Otemachi 2-chome Tokiwabashi Area 1st Type Urban Area Redevelopment Project in Tokyo. The 20,000-square-meter building has four underground levels and one level above ground, Nikkan Kensetsu Kogyo Shinbun reported.

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 and John Chan contributed to this report.

As of Nov. 28, US$1 was equivalent to 6.61 yuan, ¥111.32, 50.28 Philippine pesos and S$1.35.