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Hong Kong scraps HK$40B site sale; Modern Land forms REIT, buys Canadian sites

* The Hong Kong government is pulling the Rural Building Lot No. 1211 residential site out of the market after rejecting all five bids received for the property on Mansfield Road in The Peak, Hong Kong.

According to the city's Lands Department, the tendered premiums submitted by companies, including CK Asset Holdings Ltd. and Sun Hung Kai Properties Ltd., did not meet the reserve price for the site, which was tipped to fetch at least HK$40 billion.

* Modern Land (China) Co. Ltd. created a subordinating real estate investment trust business that will focus on the green elderly healthcare industry. The established REIT intends to capitalize on the demand for elderly care parks, medical healthcare, elderly-oriented business and asset management for pension funds, among other things, according to a filing.

* Separately, Modern Land (HKNo. 7) Co. Ltd., a subsidiary of the Hong Kong-listed Modern Land, agreed to acquire Modern Kunyuan Commercial Holdings (Canada) Ltd. from Modern Commercial Holdings (Canada) Ltd. and Kunyuan International Group Ltd. for C$220.0 million. The targeted Canadian company indirectly owns land plots with a combined area of about 624,430 square feet in New Westminster, Canada.


* Centuria Capital Group increased its stake in Propertylink to 19.51% on the back of the Sydney-based REIT's withdrawal of its A$755 million takeover offer for Centuria Industrial REIT. Propertylink, which was once targeted by the pair of Centuria companies, is currently the subject of a sweetened A$1.20-per-security buyout bid from the Warburg Pincus LLC- and Goldman Sachs Group Inc.-backed ESR Real Estate (Australia) Pty Ltd.

* Bankwest, the senior debt bank of Asia Pacific Data Centre, mandated the data center operator to repay A$29 million of outstanding loan as a result of NextDC Ltd.'s ongoing A$2.00-per-security takeover. The Australian data center landlord was given 14 days to settle the debt, according to a news release.

* Moelis Australia Ltd.'s Redcape Hotel Group Pty. Ltd. agreed to buy a three-pub portfolio in the New South Wales city of Wollongong from private consortium Denfish Hotels for A$50 million, The Australian Financial Review reported. The deal was struck ahead of the pub operator's planned A$1 billion listing on the Australian stock exchange.


* Mirai Corp. resolved to buy four hotel properties and one industrial asset for a combined consideration of ¥21.15 billion. The property deals are expected to be settled Nov. 1, according to the Japanese real estate company.

* Hulic Reit Inc. closed an ¥18.5 billion deal with Hulic Co. Ltd. for the purchase of the Hulic Kamiyacho Building office property in Tokyo. The completed transaction is part of a ¥25.23 billion agreement that was signed Oct. 12.

* Ichigo Inc. is expecting ¥12.5 billion in revenue for the second half of the 2019 fiscal year stemming from its planned divestment of four hotels to an unnamed domestic fund.

* Sumitomo Realty & Development Co. Ltd. has completed the Osaki Garden City, comprising a 24-story office building and two 22-story apartment complexes in Tokyo, Tokyo's The Nikkei reported. The project is in a former residential area near Osaki Station.

* Nankai Electric Railway Co. Ltd. will open Namba SkyO, a new mixed-use complex connected to Osaka's Namba Station, on Oct. 17, The Asahi Shimbun reported. The 31-story building includes office space as well as retail stores catering to foreign and domestic tourists.

Hong Kong and China

* Gaw Capital Partners is believed to be in discussions with Henglilong Investments Ltd. to partner on the latter's HK$15 billion deal with Swire Properties Ltd. for the acquisition of office towers in Hong Kong. The two parties are said to be seeking loans to fund the purchase of Swire's CityPlaza Three and CityPlaza Four properties.

* EC World REIT's Hangzhou Bei Gang Logistics Co. Ltd. subsidiary exercised its right of first refusal to buy Bei Gang Logistics' stage 2 properties in Hangzhou, China, for 702.5 million yuan. The rejection was made after EC World Asset Management Pte. Ltd., as manager of the Singapore-listed trust, deemed that the offer will not be accretive to the distribution per unit of the REIT.

* Shenzhen Investment Ltd.'s contracted sales in September rose 81.4% on an annual basis to 508 million yuan, reflecting sales area of approximately 29,127 square meters. Year-to-September, the property company accumulated about 5.72 billion yuan of contracted sales, down 44.2% year over year.

Southeast Asia

* Cache Logistics Trust obtained a new 5.5-year S$265 million unsecured debt facility from DBS Bank Ltd. to refinance a portion of its existing Singapore-dollar loan facilities. The new loan consists of a S$200 million term loan and a S$65 million committed revolving credit facility.

* Indonesia's Corruption Eradication Commission arrested nine people linked to PT Lippo Karawaci Tbk.'s 278 trillion-rupiah Meikarta property development over bribery allegations. Four of the suspects taken into custody are affiliated with the Lippo Group, the parent of the project's developer.

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 and Jaekwon Lim contributed to this report.