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GLP J-REIT splurges ¥77B for asset buy; record HK$33B loan sought for The Center

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GLP J-REIT splurges ¥77B for asset buy; record HK$33B loan sought for The Center

* GLP Pte. Ltd., through its 50%-owned GLP Japan Development Venture I, is selling two five-story logistics facilities in Soja, Okayama, in Japan to GLP J-REIT for a combined ¥25.5 billion as part of its capital recycling strategy. The privatized Singaporean company, formerly known as Global Logistic Properties Ltd., is also divesting ¥5 billion of solar panels to the J-REIT, according to a news release.

Meanwhile, GLP J-REIT also signed separate agreements to buy four more Japanese assets for a total consideration of about ¥51.56 billion. The real estate investment trust is planning an issuance of new investment units to raise approximately ¥67.16 billion to partially finance the proposed acquisitions, as well as the ¥30.5 billion transaction with its Singaporean property and asset manager, which is expected to be completed in March.

* The China Energy Reserve & Chemicals Group-led consortium involved in the record HK$40.2 billion deal to buy The Center property in Hong Kong's central business district from a CK Asset Holdings Ltd. subsidiary is reportedly seeking a HK$33 billion financing package for the acquisition.

According to Bloomberg News, the loan sought by C.H.M.T. Peaceful Development Asia Property Ltd. could be the largest real estate-related loan in Hong Kong since billionaire Li Ka-shing borrowed HK$55 billion for the 2015 spinoff of the property developer then named Cheung Kong Property Holdings Ltd.

Hong Kong and China

* Agile Group Holdings Ltd. subsidiary A-Living Services Co. Ltd. is expected to price its planned IPO at HK$12.30 per share, within the middle of the HK$10.80 to HK$14.20 per-share indicative price range, The (Hong Kong) Standard reported. The spinoff is looking to raise as much as HK$4.73 billion from its offering of an estimated 333 million shares.

* A 421-square-foot flat offered in The Pavilia Bay project in the Tsuen Wan district, a joint development of New World Development Co. Ltd., MTR Corp. Ltd. and Vanke Property (Overseas) Ltd., became the most expensive one-bedroom unit in New Territories, Hong Kong, after it was bought for nearly HK$10.1 million, or HK$23,957 per square foot, The Standard reported.

* The contracted sales of Sunac China Holdings Ltd. and Logan Property Holdings Co. Ltd. made respective year-over-year climbs in January by 173% to 22.18 billion yuan and by 108.7% to 4.21 billion yuan.

* Similarly, Risesun Real Estate Development Co. Ltd.'s contracted sales also grew year over year in January by 74.98% to 4.8 billion yuan, according to a Reuters report. The news agency noted that during the reporting month, subsidiaries of the company secured land sites with bids totaling 327.3 million yuan.

* Macau Property Opportunities Fund Ltd. is selling for HK$800 million its Senado Square retail development in Macau to Ardent Success Ltd. and City Universe Ltd., subject to shareholders' approval.

* A Hangzhou Binjiang Real Estate Group Co. Ltd. subsidiary placed the winning 4.0 billion-yuan bid to secure the rights over a land parcel, Reuters reported, citing a Chinese filing.

* In a separate report, Reuters reported that a subsidiary of Hubei Fuxing Science and Technology Co. Ltd. signed a 1.0 billion-yuan deal for the acquisition of interest in a real estate company.

* An S&P Global Ratings study found that a smaller percentage of the land sold in Hong Kong by government tender was snapped up by Chinese developers in the 10 months through Jan. 31.

The Standard, citing the study, reported that during the review period, 11% of the Hong Kong government's land offerings were bought by developers from China, less compared to the 53% that were acquired by mainland buyers in the fiscal year ended March 31, 2016. The study attributed the decrease to China's capital control measures.

* Hong Kong Monetary Authority Chief Executive Norman Chan Tak-lam was reported by the South China Morning Post as saying that the city's property market is still too overheated to warrant relaxation of mortgage policies, as some lawmakers call for the easing of the mortgage insurance program in the administrative region.

Japan

* Invincible Investment Corp. is forking out roughly ¥12.43 billion for the purchase of four Japanese hotels from affiliates of Fortress Investment Group LLC. The company said it will recycle proceeds from its ¥6.97 billion divestment of six residential properties in December 2017 to bankroll the proposed acquisition.

* Hankyu REIT Inc. priced its planned public offering and secondary offering of new units at ¥128,115 apiece. The third-party allotment option for 2,000 units, meanwhile, was priced at ¥123,844 per unit, according to a release.

Approximately ¥4.84 billion of the expected ¥5.09 billion in maximum proceeds from the proposed issuance will be directed toward the Japanese company's planned ¥5.40 billion purchase of the Mets Ozone retail asset in Nagoya.

* Metropolitan Intercity Railway Co. will team up with Mitsui Fudosan Co. Ltd. to develop a restaurant and shop underpass arcade next to Kashiwanoha-Campus Station, Jutaku-Shimpo-Sha reported.

Southeast Asia

* Filipino developer Megaworld Corp. is expected to launch in April the 2.2 billion-Philippine-peso Festive Walk Mall in the 72-hectare Iloilo Business Park in Iloilo City, Philippines. With a gross floor area of 90,000 square meters, the three-story mall will feature shopping, dining, entertainment and leisure stalls, among other offerings.

* Ascendas India Trust said its proposed private placement of new units was 2x oversubscribed. Due to the oversubscription, the Singapore-listed trust is now expecting gross proceeds of approximately S$100.0 million from the issuance of 97,371,000 new units priced at S$1.027 apiece.

According to the Singapore-listed trust, a portion of the proceeds will be used to repay the loan that it secured for its 5.34 billion-Indian-rupee acquisition of six warehouses in the Indian city of Panvel.

* Moody's Investors Service revised its outlook on PT Lippo Karawaci Tbk to negative from stable. At the same time, the rating agency also affirmed its B1 corporate family rating on the company.

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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. Articles and links are correct as of publication time.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

Rollen Catorce and Jaekwon Lim contributed to this report.

As of Feb. 5, US$1 was equivalent to 6.29 yuan, 64.06 Indian rupees, ¥110.10, 51.55 Philippine pesos and S$1.32.