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Swire Properties FY'17 profit up 126% YOY; IOI terminates Hongkong Land deal

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Swire Properties FY'17 profit up 126% YOY; IOI terminates Hongkong Land deal

* Swire Properties Ltd.'s profit attributable to the company's shareholders and earnings per share for the year ended Dec. 31, 2017, both increased 126% year over year to nearly HK$33.96 billion from HK$15.05 billion and to HK$5.80 from HK$2.57, respectively. The Hong Kong-listed property developer's operating profit, meanwhile, grew 102% during the comparable period to an estimated HK$34.93 billion.

Moreover, Swire Properties' parent, Swire Pacific Ltd., defied expectations during the reporting period after it recorded a 55% year-over-year jump in its consolidated underlying profit attributable to shareholders to approximately HK$4.74 billion from HK$3.06 billion. Earlier in 2017, the holding company warned that difficult market conditions for its aviation and marine services divisions during the period could harm the group's consolidated results.

* IOI Properties Group Bhd. ended its partnership with Hongkong Land Holdings Ltd. for the development of a 1.1-hectare mixed-use scheme in Singapore's Central Boulevard that IOI won in November 2016 for S$2.57 billion. Hongkong Land's failure to fulfill certain preconditions of the partnership was cited as among the reasons for the deal's termination.

* Cushman & Wakefield's Global Investment Atlas 2018 study found that Asian investors accounted for 52% of the record US$1.62 trillion of capital injections made in the global real estate sector in 2017. The scenario is expected to spill through 2018, according to The (Singapore) Business Times.

Hong Kong and China

* A China Fortune Land Development Co. Ltd. unit agreed to pay 2.64 billion yuan for a 48.4% stake in a real estate development company based in China's Hebei Province, Reuters reported.

* Singapore-listed EC World REIT incorporated in China the entity that it established for the planned acquisition of Wuqiao Zhonggong Merlot (Hubei) Logistics Co. Ltd., which owns an industrial asset in Wuhan, China, that comprises a 68,219-square-meter land parcel and five buildings.

* China Vanke Co. Ltd.'s Vanke Industrial Town Midwest subsidiary will develop industrial towns in China's midwestern regions as part of a partnership agreement signed with Asia-based urban, industrial and infrastructure consulting firm Surbana Jurong Pvt. Ltd.

* Hangzhou Binjiang Real Estate Group Co. Ltd. is planning to issue 6.5 billion yuan of commercial papers, according to a Reuters report.

* The interest rate for the bridge loan being secured to help fund a consortium's proposed HK$40.2 billion purchase of a CK Asset Holdings Ltd. subsidiary's 75% stake in The Center property in Hong Kong was increased to 140 basis points over the Hong Kong Interbank Offered Rate, according to Bloomberg.

* The real estate segment was identified as one of the sectors wherein China's US$930 billion sovereign wealth fund, China Investment Corp., is looking to expand, Bloomberg reported.

Southeast Asia

* Oxley Holdings Ltd. is seeking about S$78.1 million from its planned share placement with an increased offering size of 156,800,000 ordinary shares, up from 98 million shares. The shares in the offering are priced at 51 Singapore cents apiece.

* Private home sales in Singapore decreased 61.5% year over year in February to 377 units from 979 units, The Business Times reported, citing figures from the city-state's Urban Redevelopment Authority.

* Emerging markets in various countries in Southeast Asia are stealing the interest of industrial and logistics investors away from China, JLL reported.

Australia

* Superannuation fund and developer ISPT is in the front seat to snap up Victoria University's proposed A$400 million development in Melbourne, The Australian Financial Review reported.

Other real estate news

* Chinese conglomerate HNA Group Co. Ltd. could soon offer for sale its shareholding in American multinational hospitality company Hilton Worldwide Holdings Inc., Bloomberg Markets reported, citing an emailed statement from Michael Bellisario, a senior research analyst at Robert W. Baird & Co.

The speculations come after the debt-laden group priced the sale of its 22,250,000 shares in Hilton Worldwide's Hilton Grand Vacations Inc. spinoff at US$46.25 apiece, on the back of the completion of its divestment of a roughly US$1.38 billion stake in another Hilton Worldwide spinoff, Park Hotels & Resorts Inc.

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.

Rollen Catorce contributed to this report.

As of March 15, US$1 was equivalent to 6.32 yuan, 64.98 Indian rupees and S$1.31.