* Japanese conglomerate SoftBank Group Corp. invested US$2 billion in WeWork Cos. Inc., which recently rebranded as The We Company. The recent capital injection, along with a previous US$4 billion investment, increased the valuation of the American coworking space provider to US$47 billion.
* C&D International Investment Group Ltd.'s Xiamen Yi Yue Property Co. Ltd. subsidiary and other parties agreed to terminate a cooperation agreement for the approximately 900.0 million-yuan acquisition of an approximately 80,000-square-meter land parcel in Hunan Province's Changsha City in China.
The agreement was axed as one of the companies involved in the deal, Changsha Xingwang Real Estate Development Co. Ltd., failed to fulfill one or more conditions precedent to the deal.
* Separately, Xiamen Yi Yue won the bidding for a mixed-use site spanning about 46,881.92 square meters in the Yuhu area of China's Putian City after it offered to pay 858.0 million yuan. C&D International's subsidiary will sign the contract with the Putian Municipal Bureau of Land Resources before Jan. 22 to formalize the impending acquisition.
Hong Kong and China
* China SCE Group Holdings Ltd. earmarked proceeds from its offering of US$500.0 million in 8.75% senior notes due Jan. 15, 2021, for refinancing certain existing offshore debt. The Chinese real estate developer recently priced the issuance at a price equal to 100% of the notes' principal amount.
* Chinese conglomerate HNA Group Co. Ltd. is looking to add eight hotel and other property projects to the US$11 billion worth of assets it is looking to sell. Included in the real estate assets earmarked for divestment are a Renaissance hotel, a commercial complex and another hospitality development project in China.
* CK Asset Holdings Ltd. applied to the Town Planning Board to rezone the Harbour Plaza Hotel in Tin Shui Wai for residential use to provide 5,000 apartments. The developer plans to build two 53-story buildings on the 27,900-square-meter land and provide 980 car park spaces and 334 parking slots for bicycles.
* Developers introduced more discounts at their new projects because of a weakened market in Hong Kong. In Wing Tai Properties Ltd.'s The Carmel in Tuen Mun, prices start at HK$9,488 per square foot, 30% to 40% below adjacent projects in the area, Hong Kong Economic Times reported.
* Chinachem Group Co. Ltd. has further lowered the prices in Sol City by 5% to HK$15,824 per square foot, while Vanke Property (Hong Kong) Co. Ltd. offers a maximum of 15% subsidy on stamp duty for the buyers of Le Point, Apple Daily reported.
* A downturn in business sentiment and tightening liquidity in China prompted commercial landlords in Hong Kong to double or triple the deposit they demand from tenants, the South China Morning Post reported.
Edwin Leong Siu-hung, founder of Tai Hung Fai Enterprise, was quoted by the publication as saying that he would request for a six-month rent deposit and bank guarantees from unknown tenants, who intend to lease from his portfolio of offices and retail shops.
* Japan Hotel REIT Investment Corp. agreed to buy and lease two hotel properties under deals totaling nearly ¥65.14 billion. The targeted properties are the Hilton Tokyo Odaiba in Tokyo and the Hotel Oriental Express Osaka Shinsaibashi in the Minami area of Osaka.
* Daiwa Land Group Inc. and four other companies will purchase the Ito-Yokado Marudai Nagaoka Store building in Nagaoka, Niigata Prefecture, for an undisclosed price, Tokyo's The Nikkei reported. The consortium will remodel the building into a new shopping mall after general merchandise retailer Ito-Yokado moves out in February.
* The APA Group purchased a 660-square-meter site in Osaka to build a 12-story, 180-room hotel for opening in 2020, Jutaku-Shimpo-Sha reported.
* Mapletree Industrial Trust agreed to lease a planned build-to-suit data center with a gross floor area of approximately 256,600 square feet to global interconnection and data center company Equinix. The upgrading and acquisition of the 7 Tai Seng Drive project is estimated to be worth S$95 million, according to a press release.
* Malaysia's UEM Sunrise Bhd. is preparing for an up to 10% default rate on the settlements of its A$330 million apartment tower in Melbourne's central business district amid difficult market conditions and decreasing home prices, The Australian Financial Review reported.
Now featured on S&P Global Market Intelligence
Data Dispatch: US real estate M&A activity spikes in 2018 with cash-heavy deals
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.