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Wheelock sells office tower for HK$4.5B; Joy City eyes 9.29B yuan in stake sale

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Wheelock sells office tower for HK$4.5B; Joy City eyes 9.29B yuan in stake sale

* Wheelock and Co. Ltd. sold the One Harbour Gate East office tower in Hung Hom, Hong Kong,to Chinese company Cheung Kei Group for HK$4.5 billion, The (Hong Kong) Standard reported.The buyer plans to rename the property as Cheung Kei Centre and use it as its HongKong headquarters.

* Joy City Property Ltd. aims to gain at least 9.29 billionChinese yuan from the divestmentof a 49% stake in Fortune Set Ltd., Sunny Ease Ltd. and Vivid Star Ltd. The companyhas launched an open tender process for the sale of the subsidiaries that have severalmixed-use property projects across China.

* Investment bank Macquarie loweredits profit expectations on WestfieldCorp., due to the currently unstable retail markets in the U.S. andU.K., as well as fluctuating currencies, TheAustralian reported.

* Goldman Sachs, the Townsend Group,Grosvenor and the Saudi Arabia Economic and Development Co. are among the supportersof Propertylink's A$500 million IPO in Australia, IPE Real Estate reported.

Meanwhile,The Australian reportedthat the company is nearing a deal to acquire the almost A$200 million portfolio ahead of its planto go public in August.

HONG KONG, CHINAAND TAIWAN

* In relation to a 45.61 billion-yuantransaction with ShenzhenMetro Group Co. Ltd. and a material asset restructuring plan, China Vanke Co. Ltd. said it will issue a progress reportevery 30 days prior to the announcement of a general meeting to discuss the deal.

The companysaid that approval for the proposed acquisition through issuance of shares remainsuncertain, including the permission of the China Securities Regulatory Commission.

* Sun Hung Kai Properties Ltd. may launch the sales for its650-unit Lime Gala development in July, TheStandard reported.The company also placed 45 Park YohoVenezia units and 30 Park Yoho Sicilia units on the market July 18.

* A potential shortage of homesin Shanghai could occur in the future amid greater competition among property developersfor new land parcels, the South China MorningPost reported.Companies, including Future Land DevelopmentHoldings Ltd., have floated "sky-high" bids to clinch properties.

The HongKong-listed group recently won the tender for an almost 20,000-square-meter sitewithin the Middle Ring Road at a 3.7 billion-yuan bid, according to the publication.

* More cities in China recordeda year-over-year increase in real estate prices in June, led by major cities, London'sFinancial Times reported,citing data from the National Bureau of Statistics. Of 70 surveyed cities, 57 postedan increase in annualized prices for new houses.

* China had 710 millionsquare meters of property inventory at the end of June, which is equivalent to 2.5years of sales at current market trends, according to Hexun.The 2.5-year digestion rate is down from the 2.7 years calculated in May, indicatingthat inventory backlogs, though high, are falling.

* In Taiwan, land prices remainedstable as the urban land price index reached 119.33 as of March, up 0.04% comparedwith September 2015, Taipei Times reported,citing a Ministry of Interior report.

AUSTRALIA

* DEXUS Property Group agreed to lease a 3778-square-meterproperty to Armstrong World Industries at the 69-hectare Quarry at Greystanes inSydney's west, The Australian Financial Reviewreported.

* Malaysian fund Kumpulan WangPersaraan (Diperbadankan) is considering a sale of Exchange Centre at 20 BridgeSt. in Sydney, due to a high level of off-market offers from local and overseasinvestors, KWAP CEO Wan Kamaruzaman Wan Ahmad toldBloomberg News in an interview.

The Australian addedthat the 14-story building is valued at more than A$250 million and was acquiredin 2011 for A$185 million.

* Strata office values in Sydneyoutperformed the broader central-business-district office market with a 30% growthsince the beginning of 2016, the AFR reported,citing Ray White Commercial. In Melbourne, CBRE said the city's strata office marketrose between 10% and 15% since Jan. 1, the publication reported.

JAPAN

* According to TokyoKantei Co. Ltd., apartment rents in the capital region fell 2.1% to an average of¥2,605 per square meter in June from May, Jutaku-Shimpo-Shareported.

INDIA

* Lukewarm sales and increasedinventory levels are not likely to cause lower home prices in Bengaluru, as theresidential real estate capital value in the city was unchanged at 5,334 Indianrupees per square foot in the first half from the second half of 2015, The Economic Times of India reported,citing Idirees Chenakkal, head of research and consulting at property consultancy LJ Hooker.

SOUTHEAST ASIA

* The Bank Negara Malaysia's of the benchmark overnightpolicy rate caused more investors to be interested in Malaysian REITs, with stocksof  IGBREIT, MRCB-Quill REIT and YTL Hospitality REIT rising after the ratecut, The (Malaysia) Star reported.

* DoubleDragon Properties Corp. said it gained the approvalof the Philippine Stock Exchange for its plan to issue 10 billion Philippine pesosworth of preferred shares.

* The Indonesian government intendsto attract new investors by planning to cut the property transfer fee to 1% in itsfourth economic stimulus program, The JakartaPost reported.The government also hopes to boost investment by removing double-taxation schemesfor REITs, according to Coordinating Economics Minister Darmin Nasution.

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The Daily Dose Asia-Pacific, RealEstate edition is updated by 6:30 a.m. Hong Kong time. Some external links may requirea subscription. Articles and links are correct as of publication time.

Cam Nones, Jaekwon Lim and SpencerSheehan contributed to this report.