trending Market Intelligence /marketintelligence/en/news-insights/trending/crcuw3j7pjpxnulvuh4syw2 content esgSubNav
In This List

Mantra set for delisting; Shui On, Hongkong Land vie for 14B-yuan Shanghai site

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Mantra set for delisting; Shui On, Hongkong Land vie for 14B-yuan Shanghai site

* AccorHotels' A$1.18 billion takeover of Mantra Group Ltd. under a scheme of arrangement was implemented, as planned, May 31. In light of the merger taking effect, the Australian hotelier will apply to be delisted from the Australian stock exchange at market close June 1.

* Two developers remain in contention for a 78,256-square-meter site in Shanghai, which hit the market with a 13.58 billion-yuan asking price, the South China Morning Post reported, citing a posting on the Shanghai Land Market website. Hong Kong-based developer Shui On Land Ltd. confirmed to the paper that it is in the running for the land plot, and a source in the sector said Hongkong Land Holdings Ltd. is the other contender.

Australia

* Dexus, a former suitor of Investa Office Fund, could be tempted again to pursue the office-focused real estate investment trust that is currently targeted by Blackstone Group LP, Merrill Lynch analysts said, as cited by The Australian.

The analysts added that the listed diversified property developer could potentially trump Blackstone's A$3.14 billion, or A$5.25-per-unit, cash offer for Investa Office by selling its A$2.1 billion industrial portfolio to help bankroll a A$5.25-per-unit to A$5.50-per-unit bid.

* Southgate Trust, a joint venture between Suntec Real Estate Investment Trust and PIP Southgate Sub-Trust, completed its A$154.6 million acquisition from Dexus of the remaining 50% it does not already own in the Southgate Complex mixed-use property in Melbourne. The transaction gave the Singapore-listed REIT 50% control over the property.

* Property Council of Australia CEO Ken Morrison said commercial property developers could help in supplying more affordable housing if they are given the same tax incentives as offshore investors, The Australian Financial Review reported. Morrison added that local developers should be able to establish managed investment trust at the same 15% withholding rate that applies to foreign companies investing in other property sectors.

Hong Kong and China

* C&D International Investment Group Ltd. secured an up to 15.00 billion-yuan loan facility from its controlling shareholder, C&D Real Estate Corp. Ltd. The company plans to fund new investments and business using the facility, which is valid for three years commencing June 1.

* Victor Li Tzar-kuoi, the newly appointed chairman of CK Asset Holdings Ltd. and CK Hutchison Holdings Ltd., urged the Hong Kong government to increase house and land supplies amid the continuous rise of property prices in the city, the SCMP reported. Speaking at the opening of A.S. Watson Group's new retail concept store CKC18 at the Cheung Kong Center, Li said the city's property market will remain bullish due to low supply.

* Fresh data from Hong Kong's Rating and Valuation Department showed that private home prices in the special administrative region grew 1.84% month over month and 13.91% year over year in April, The (Hong Kong) Standard reported.

* About 70 residential projects with a total saleable area of 3.2 million square meters will be launched in Chengdu, China, in June as the local government tackles soaring property prices by boosting supply, National Business Daily reported. The government has also raised the proportion of residential land from 57% to 65% of the total land supply.

* The Wuhan government is now requiring more housing projects to give priority to prospective residents rather than investors, Xinhua News Agency reported. Starting from June, 60% of the residential supply will be first offered to families that do not own properties and that had not participated in any property transactions in the past three years.

Southeast Asia

* Singaporean company Perennial Real Estate Holdings Ltd. bought the indirect owner of a 60% stake in a 246,982-square-meter land plot in Sentul City in Greater Jakarta. The site is intended for a 1.6 trillion-rupiah residential development that will have a total gross floor area of at least 147,000 square meters and more than 1,700 housing units.

* The Urban Redevelopment Authority and Housing & Development Board are selling three sites with residential components in Singapore under the first-half 2018 government land sales program. The sites on offer are the 19,647.5-square-meter Dairy Farm Road, the 16,225.3-square-meter Sims Drive and the 2.49-hectare Tampines Avenue 10.

* Filipino company Robinsons Land Corp. is further diversifying its operations by venturing into the dormitory and warehousing businesses, The Philippine Star reported, citing President Frederick Go. He also said the company is studying a potential venture into the shared office space business.

Japan

* Tokyo Tatemono Co. Ltd., Sumitomo Realty & Development Co. Ltd. and their other partners will build large apartment complexes in the city of Saitama as part of the Shinto City urban center development project, the Nikkan Kogyo Shimbun reported.

* UBS' survey of 49 international investors found that investor confidence is highest in Japan-listed REITs compared with similar trusts in other countries, The Australian reported, noting that 66% of the respondents expect J-REITs to surpass the performance of their global peers in the next 12 months.

In terms of sector confidence, 24% of the respondents prefer industrial properties, while 21% opt for specialty and office properties, the survey also showed.

Other real estate news

* Westfield Corp.'s £1.4 billion joint venture with Hammerson PLC in Croydon, London, will be anchored by a co-located 165,000-square-foot John Lewis department store and Waitrose supermarket. The project, which secured final approval in January, will provide over 300 shops and up to 1,000 houses, among other offerings.

Now featured on S&P Global Market Intelligence

Data Dispatch: May state of the US housing market

Data Dispatch: US REITs underperforming broader market in current rising-rate environment

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.

As of May 31, US$1 was equivalent to 6.41 yuan and 13,913.00 rupiah.