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Greenland Hong Kong to form US$8B fund; KWG prices 6.50B yuan bond issuance

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Greenland Hong Kong to form US$8B fund; KWG prices 6.50B yuan bond issuance

* andKuwait Strategic Investor agreed on the joint establishment of the Silk RoadIntegrated Real Estate Fund with a targeted size of US$8 billion, according toa filing.

The potentialtransaction forms part of both companies' framework agreement, which alsoincludes Greenland's possible acquisition of an approximately 41% effectiveinterest in the Project Lane real estate project located at Central Park Southin New York from a Kuwait Strategic unit.

* said itssubsidiary's plan to issue nonpublic domestic corporate bonds worth not morethan 6.50 billion Chinese yuan will consist of two types.

Followinga bookbuilding exercise, Guangzhou Tianjian Real Estate Development Ltd. andthe sole underwriter determined that the type 1 bonds worth 1.00 billion yuanwill have a fixed coupon rate of 5.60%, while the type 2 bonds worth 5.50billion yuan will have a fixed coupon rate of 5.80%.

* said itappointed Christopher Kwok Kai-wang to serve as an executive director,effective April 26. Kwok is the son of Sun Hung Kai Properties Chairman andManaging Director RaymondKwok Ping-luen.

* entered intoan 800.0 million yuan term loan facility with an unnamed bank, according to afiling. The loan facility will mature on the date falling three years from thefirst advance date.

* First-quarter propertytransaction volumes in the Asia-Pacific region amounted to US$23.7 billion,down 5% year over year, according to JLL.

Japan's26% year-over-year decrease in real estate transactions during the quarternegated the growth in Australia, Hong Kong and South Korea, as the Bank ofJapan's policy onnegative interest rates "caused some uncertainty," Megan Walters, JLLhead of Asia Pacific Capital Markets research, said in a statement.

Meanwhile,JLL saidin a separate report that there is a "divergent" outlook on theAsia-Pacific office sector. The outperforming markets in the region includeHong Kong, Sydney and Shanghai. On the other hand, a correction has taken placein Jakarta and Singapore.

* Hotels in the Asia-Pacificregion posted mostly positive year-over-year growth in three key performancemetrics for the first three months of 2016, when reported in U.S. dollar constantcurrency, according to STR.

Revenueper available room increased 1.5% to about US$69.93 and occupancy rose 1.7% to66.6%, but the average daily rate remained almost flat with a 0.2% drop toUS$105.04.

AUSTRALIA

* 's sale of the A$210million Como Centre mixed-use property in Melbourne is one of two transactionsthat will galvanize the city's commercial real estate market, The Australian Financial Review reported.The hotel and office complex sits on a 2-hectare site.

* Still in Melbourne, LaSalleInvestment Management has placed the A$500 million hotel and an adjacentretail complex on the market, the AFRreported.The hotel has 380 rooms, while the soon-to-open, four-story retail center hasover 9,000 square meters of space.

* Engineering and shipbuildingcompany Forgacs Group purportedly plans to sell the Cairncross Quays propertyfor new apartment and commercial projects, the AFR reported,citing unnamed industry sources. The land parcel is likely to generate A$1billion of total project realization, according to the sources.

HONG KONG AND CHINA

* Fitch Ratings downgradedEvergrande Real Estate GroupLtd.'s long-term foreign-currency issuer default rating to B+ fromBB-, with a negative outlook.

* recordedtotal contracted sales of approximately 2.11 billion yuan in March, accountingfor approximately 160,504 square meters of total contracted gross floor area,according to a filing. The company said it is in active discussions with itscreditors, as it aims to resume sales of four real estate projects in Shenzhen,China, "as soon as possible."

* Sun Hung Kai Properties,Wheelock and Co. Ltd.and Sino Land Co.Ltd. are some of the property developers that are accelerating thedivestment of noncore assets in Hong Kong, aiming for bigger revenues asinvestors shift their focus fromdomestic-housing sector owing to increased risk, the South China Morning Post reported,citing industry experts.

* andthe subsidiary guarantors entered into a purchase agreement with Guotai JunanInternational and BofA Merrill Lynch pertaining to the issue of 600.0 millionyuan 9.5% senior notes due 2019. The estimated net proceeds of the notes issue,after deduction of the underwriting discounts and commissions and otherestimated expenses, will total about 586.2 million yuan. The company plans touse the net proceeds to refinance some of its existing debt.

* Standard & Poor'sRatings Services assigned a B long-term issue rating to Fantasia's proposedissuance of offshore senior unsecured notes. The rating agency also assigned acnBB- long-term Greater China regional scale rating to the notes.

* Meanwhile, Moody's affirmedFantasia's B2 corporate family rating and assigned a B3 rating to its proposedbond issuance. If the bonds are issued, the company will have a better debtmaturity profile, Stephanie Lau, a Moody's assistant vice president andanalyst, said in a note.

JAPAN

* will buy Keikyu Corp.'s30-story, 884-room Grand Pacific Le Daiba hotel for an estimated price of morethan ¥60 billion, The Nikkei reported.The property is located in Tokyo's Odaiba waterfront district.

* Singapore-listed HeetonHoldings Ltd. and KSH Holdings Ltd. marked their first investment in theJapanese property market with an acquisition of a property in Sapporo,Hokkaido, for an undisclosed amount, The(Singapore) Business Times reported.

SOUTHEAST ASIA

*SM Prime HoldingsInc. is in talks with the City of Manila for the acquisition of the10-hectare Harrison Plaza, The Manila Times reported, citing SM Prime CFO Jeffrey Lim.

*Malaysian property developers continue to launch office projects in KualaLumpur, despite an excess in supply, The Business Times reported. The National Property Information Centre'sProperty Report 2015 showed that 1.56 million square meters of space remainedunoccupied out of 7.75 million square meters as of the last quarter in 2015.

Now featured

: S&P Global Market Intelligence presentsa weekly rundown of recent significant management and board changes andpersonnel moves in the European and Asia-Pacific real estate industries.

The Daily Dose Asia-Pacific,Real Estate edition is updated by 6:30 a.m. Hong Kong time. Some external linksmay require a subscription. Articles and links are correct as of publicationtime.

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