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Essential IR Insights Newsletter - February 2023

CapitaLand closes US$1.1B deal with China Vanke, partners; HNA mulls US$11B sale

* CapitaLand Ltd. wrapped up its US$1.1 billion divestment of 20 retail malls in China to a partnership involving China Vanke Co. Ltd. with the transfer of its interest in two associated companies, which hold stakes in the two remaining properties for sale.

* HNA Group Co. Ltd. is reportedly planning to divest at least US$11 billion of properties in China and overseas to further reduce its debt. The once acquisitive Chinese conglomerate has shed or agreed to sell more than US$20 billion of assets worldwide since January amid its ongoing selling spree.

Hong Kong and China

* Mandarin Oriental International Ltd. earmarked US$650 million for its planned redevelopment of The Excelsior hotel in Hong Kong's Causeway Bay district into a commercial mixed-use building.

The HK$30 billion waterfront property, which carries approval for a gross floor area of roughly 63,500 square meters, was previously taken to the market in June 2017 but the divestment was called off after bids for the asset failed to meet the seller's expectations.

* C&D International Investment Group Ltd.'s Xiamen Yi Yue Property Co. Ltd. subsidiary placed an approximately 756.0 million-yuan bid to win the government-administered auction for a 54,976.60-square-meter residential land parcel in Putian, China.

* China Vanke's contracted sales in September decreased on an annual basis to 43.42 billion yuan from 46.32 billion yuan. Since its August sales update, the Chinese property developer bought 14 new projects in China for about 12.00 billion yuan and six new logistics developments for nearly 1.52 billion yuan.

* On the other hand, the September contracted sales of Sino-Ocean Group Holding Ltd. and China SCE Group Holdings Ltd. respectively increased year over year by 103% to roughly 13.51 billion yuan and by 39% to 4.41 billion yuan.

Australia and New Zealand

* Centuria Metropolitan REIT agreed to buy three office properties and a 25% stake in another building from Hines Global REIT Inc. for a combined A$500.9 million. The deal for the transaction reflects an initial yield of 6.3%, according to a news release.

* Singapore's Mapletree Investments Pte. Ltd. is leading the race for the acquisition of RF CorVal's office building at 67 ­Albert Ave. in Sydney's Chatswood district, which is on the market for about A$150 million, The Australian reported. Cushman & Wakefield and Colliers International are managing the sale process for the property, featuring 14,800 square meters of office space and parking slots for 193 cars.

* An unnamed U.S. private equity group purchased the 15,000-square-meter Hurstville Central Shopping Centre in Sydney from local property investment firm Cerno for A$119.5 million, marking its first investment in the country, The Australian Financial Review reported. The Coles-anchored leasehold property backed by investment house AsheMorgan was put on the block in March along with the adjoining Gateway asset for approximately A$130 million.

* The A$140 billion AustralianSuper superannuation fund will prevent its members from investing over 70% of their savings in its property portfolio starting in mid-November as a contingency plan for a potential property market plunge, The Australian reported.

* Chinese-backed developer ICD Property is planning to develop a A$300 million apartment and hotel complex in Auckland in its maiden foray in the New Zealand market, the AFR reported. The proposed 180-meter development will include 226 apartments and a 233-room hotel across 48 levels.

Southeast Asia

* OUE Commercial REIT is seeking an estimated S$580.6 million from its offering of 1,288,438,981 units at 45.6 Singaporean cents apiece. The anticipated proceeds from the rights issuance will be directed for its planned roughly S$955.9 million acquisition of the office components of a mixed-use development in Shenton Way from OUE Ltd.'s Alkas Realty Pte. Ltd. subsidiary.

* Filipino developer SM Prime Holdings Inc. confirmed in a filing that it allotted 120 billion pesos to finance its expansion over the next two years.

* PT Lippo Karawaci Tbk. was included in the 15 companies that received a warning from the Indonesian stock exchange for delayed filing of its financial reports, the Nikkei Asian Review reported. This would mark the second time in recent years that the country's largest property developer failed to submit its financial reports on time.

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 contributed to this report.