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Blackstone in due diligence for PAG tower; Sino-US trade war to hit Hong Kong RE

* Blackstone Group LP is understood to be conducting due diligence on the 50% stake that PAG Investment Management is selling in the office building at 60 Margaret St. in Sydney, The Australian Financial Review's Street Talk reported. The due diligence on the half-stake that was marketed in June is reportedly courtesy of co-owner Mirvac Group's preemptive right on the over A$800 million building.

* Cushman & Wakefield was cited by The (Hong Kong) Standard as saying in a Hong Kong property market forum that the impacts of the Sino-U.S. trade war will be felt in the commercial property market of the special administrative region in 18 months. The global commercial real estate services company added that the tensions already affected office rents and the retail leasing market of the city.

Hong Kong and China

* New York-listed trust Iron Mountain Inc. is looking to grow its presence in China to over 2.5 million cubic feet of new storage space with the purchase of GRM Document Management's local division, GRM China.

* China Merchants Land Ltd., through its Chongqing Merchants Yi Yun Property Development Ltd. subsidiary, is investing nearly 2.93 billion yuan to a 51/49 joint venture with Nanjing Jiaotong Investment and Property Development Ltd. for the development of a 3.35 billion-yuan land parcel in Nanjing, China.

Separately, two of the Chinese property company's units, Merchants Nanjing Real Estate Co. Ltd. and Nanjing Merchants Zhaosheng Property Development Ltd., agreed to respectively inject about 356.6 million yuan and 178.3 million yuan to secure a 40% stake and a 20% shareholding in the project company that is developing a 59,128.43-square-meter commercial site in Nanjing.

* CIFI Holdings (Group) Co. Ltd. committed to invest an estimated 1.30 billion yuan for a plan to jointly develop an approximately 80,651-square-meter site in China's Jiangsu province with Nantong Zhongnan New World Centre Development Ltd. and Henderson Land Development Co. Ltd. subsidiaries Henderson China Properties Ltd. and Great Asia Investment Ltd.

* China Overseas Land & Investment Ltd.'s contracted sales grew year over year in September to about HK$26.38 billion from HK$20.68 billion. During the reporting month, the property company also agreed to spend an estimated 7.14 billion yuan for the acquisition of five land plots across China with an aggregate area of roughly 1,352,570 square meters.

* Shimao Property Holdings Ltd. is planning to issue US$250 million in 6.375% senior notes due 2021 to raise funds for debt repayment, business development and other general corporate expenditures.

* China Resources Land Ltd. obtained a HK$700.0 million loan facility from an unnamed bank. The validity of the five-year term credit line is subject to China Resources (Holdings) Co. Ltd. maintaining its status as the single largest shareholder of the borrowing Chinese real estate company.

* Savills PLC and DTZ were appointed to invite tenders for a 37,500-square-foot land in Yau Tong in Hong Kong, Ming Pao reported. The land is approved for residential and commercial use with a maximum gross floor area of 187,496 square feet.

* Moody's is forecasting an overall improvement in the 2019 credit metrics of its 47 rated developers in China. Kaven Tsang, a Moody's vice president and senior credit officer, is optimistic that mid- and large-sized property companies will be able to withstand the tough operating conditions while managing growth and exhibiting strong financial discipline over the next six to 12 months.


* Heathley Healthcare REIT is expected to seek proceeds of approximately A$250 million and a market capitalization of A$373 million from its planned IPO on the Australian stock exchange, the AFR's Street Talk reported. The proposed A$2-per-security valuation for the offering, which is slated to be considered by existing unit holders in early December, follows Dexus' pledge to invest A$37.3 million in the IPO-hopeful real estate investment trust.

* Hometown America Corp. extended again the closing period for its A$2.25-per-security takeover offer for Gateway Lifestyle Group to Oct. 15 from Oct. 8.


* SM Prime Holdings Inc. President Jeffrey Lim told The Philippine Star that the company's third-quarter figures are still within target despite inflation in the country.

* Filipino developer Ayala Land Inc. confirmed that it is planning to file a new shelf debt securities program amounting to 50 billion pesos with the country's Securities and Exchange Commission. The confirmation came after Augusto Cesar Bengzon, Ayala Land's CFO, was quoted by BusinessWorld (Manila) as saying that the company is looking to register the shelf later in 2018 or in early 2019 after it exhausted a shelf with a similar amount.


* Mitsubishi Jisho Residence Co. Ltd., Tokyu Land Corp. and Obayashi Shinseiwa Real Estate Co. Ltd. will launch in October the sales for The Parkhouse Shibuya Nanpeidaicho luxury apartments in Tokyo's Shibuya, Jutaku-Shimpo-Sha reported. The price range for the project's 100 units is between ¥120 million and ¥710 million.

* Tokyu Corp. plans to develop the Shinjuku Tokyu Milano site in Tokyo's Kabukicho into a 40-story entertainment complex that will feature shops, restaurants, theaters, a concert hall and a hotel, The Asahi Shimbun reported. Construction will start in 2019 and scheduled to complete in 2022.

Other real estate news

* Nan Fung Group Holdings Ltd. agreed to buy a majority stake in central London-focused real estate developer Endurance Land Ltd. for an undisclosed amount. The British company will be managing the Hong Kong property developer's existing assets in the U.K. as part of the deal.

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. Links are current as of publication time, and we are not responsible if those links are unavailable later.

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