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McDonald's partners with Stockland; Charter Hall fund in talks to buy out asset

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McDonald's partners with Stockland; Charter Hall fund in talks to buy out asset

* Fast food giant McDonald's is venturing into property development under a partnership with Australia-listed developer Stockland. The Australian Financial Review reported that the pair is teaming up to transform a site at 355-375 Church St. in the Sydney suburb of Parramatta into a mixed-use precinct featuring 350 apartments, 1,565 square meters of retail space, a carpark and a new two-level restaurant.

* Charter Hall Group's main unlisted office fund is holding negotiations to buy out Charter Hall Prime Office Fund in the near A$200 million Northbank Plaza in Brisbane's central business district, The Australian reported. The paper, citing recent valuations, noted that a half-stake in the 26,659-square-meter complex is worth an estimated A$91.8 million.

Hong Kong and China

* A partnership comprising subsidiaries of China Vanke Co. Ltd. and Singaporean wealth fund GIC Pte. Ltd. paid 702 million yuan for a 46,800-square-meter commercial lot in Shanghai that is intended for a shopping center development. The project planned for the site could rise up to 24 meters high and is expected to be completed by 2022.

* Meanwhile, China Vanke's contracted sales in February decreased year over year to 35.60 billion yuan from the 38.51 billion yuan it recorded in the year-ago period. The 2018 unaudited contracted sales figure for the reporting month reflects sales area amounting to 2,402,000 square meters.

* On the other hand, the contracted sales of Shimao Property Holdings Ltd. grew by 36% year on year during the month of February to an estimated 7.10 billion yuan from about 5.23 billion yuan. Contracted sales area for the month was 442,040 square meters.

* An affiliate of Shanghai New Huangpu Real Estate Co. Ltd. is allotting 220 million yuan for a planned investment in a trust scheme, Reuters reported.

* As previously indicated, Guorui Properties Ltd. applied to list on the Hong Kong stock exchange US$250.0 million in 10.2% senior notes due March 1, 2019, that it said it will issue to net approximately US$246 million for debt repayment and for general working capital purposes.

* Country Garden Holdings Co. Ltd. has joined with Foxconn Technology Group, formally Hon Hai Precision Industry Co. Ltd., to acquire three commercial and residential land parcels in Zengcheng district in Guangzhou, China, for 5.9 billion yuan, Caixin reported. The land parcels total 362,000 square meters in area and will be built into a technology town focusing on the production of 8K TV panels.

* Shanghai will be auctioning out two land parcels to supply 2,277 long-term rental units, The Paper reported. The first piece of land, with an area of 62,700 square meters to supply 1,693 units, will start bidding at 400 million yuan, while the smaller piece of 13,100 square meters will supply 584 units and start bidding at 302 million yuan.

Australia

* Wolfdene Pty. Ltd. obtained a loan from a syndicate of international banks to finance its planned acquisition of the 100-hectare Brompton project in Melbourne, which can accommodate a development for approximately 1,400 homes worth A$610 million. The AFR, citing industry sources, reported that the size of the loan and the site purchase was "north of A$100 million."

* The findings of the ANZ/Property Council Quarterly Survey provided an optimistic outlook for the state of foreign investments in Australia's commercial real estate sector. JLL, citing the survey, reported that offshore investors are expected to account for 19.2% of office deals and 21.9% of hotel deals that will transpire Down Under during the first quarter of 2018.

Southeast Asia

* Far East Consortium International Ltd. subsidiary FEC Properties Pte. Ltd. won the tender for a roughly 4,971-square-meter residential site along Holland Road after it placed the winning S$183.4 million bid.

* Shui On Development (Holding) Ltd. carried out, as planned, its issuance of 1.60 billion yuan in 6.875% senior notes due March 2, 2021. The notes guaranteed by Shui On Development's parent, Shui On Land Ltd., will be listed on the Singapore stock exchange, effective March 5 at 9 a.m., local time.

* HSBC Institutional Trust Services (Singapore) Ltd., the trustee of Ascendas Real Estate Investment Trust, issued S$200.0 million of 3.14% notes due March 2, 2025, under its S$5.00 billion multicurrency medium-term note program.

* The trustee of Frasers Hospitality Trust's Frasers Hospitality Real Estate Investment Trust component established a S$70 million term loan facility with the Singapore branch of Malayan Banking Bhd.

* Frasers Property Ltd.'s Frasers Property Holdings (Thailand) Co. Ltd. subsidiary priced a proposed private placement of up to 5.00 billion Thai baht in debentures, which will be drawn down from its 25.00 billion-baht debt program. Proceeds from the issuance scheduled March 7 will be used for the repayment of existing debt, for investment and/or for working capital.

Japan

* Tokyo Gas Co. Ltd. will invest a total of ¥100 billion in its real estate business through March 2021, which includes a commercial property development partnership with Kansai Electric Power Co. Inc., Tokyo's The Nikkei reported.

* According to real estate research firm Tokyo Kantei Co. Ltd., the average asking price for an existing detached house in Tokyo and three surrounding prefectures went up 10.6% year over year to ¥34.3 million in January, The Nikkei reported.

Other real estate news

* Far East Consortium's indirect wholly owned subsidiary, FEC Overseas Investment (UK) Ltd., is merging its FEC Investment (US) Ltd. unit with the Nevada-based Trans World Corp. that it is looking to buy under an up to US$42.0 million agreement.

Trans World, which is primarily engaged in hospitality and gaming business in Germany, Austria and the Czech Republic, will continue on as the surviving entity after the completion of the deal, according to a filing.

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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 March 2, US$1 was equivalent to 6.36 yuan, S$1.32 and 31.47 Thai baht.