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Blackstone's Indian assets lure GIC, Brookfield; Link REIT mall deal draws probe

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Six trends shaping the industries and sectors we cover in 2021

Six trends shaping the industries and sectors we cover in 2021

Capital Markets View – January 2021


Blackstone's Indian assets lure GIC, Brookfield; Link REIT mall deal draws probe

* Blackstone Group LP's planned divestment of the 1.5 million-square-foot BlueRidge special economic zone in the Indian city of Pune and the 1.3 million-square-foot Galaxy IT Park in Noida has drawn bids from global investors that include the Canada Pension Plan Investment Board, Singaporean wealth fund GIC and Brookfield, the Business Standard of India reported, citing unnamed sources.

According to the paper, the private-equity giant is also selling the IT special economic zone also in Pune that it purchased from DLF Ltd.

* In a separate report, DLF is planning to raise 35.00 billion rupees via a qualified institutional placement. Livemint reported that the company's board will meet Dec. 1 to approve the planned fundraising, proceeds of which will be used to reduce its debt.

* Pro-establishment lawmakers of the Federation of Trade Unions in Hong Kong are calling for a government investigation into Link Real Estate Investment Trust's HK$23 billion deal to sell a portfolio of 17 shopping malls in Hong Kong to a Gaw Capital Partners-led consortium, citing concerns that the deal might affect low-income families.

Hong Kong and China

* New World Development Co. Ltd. marked the completion of the first phase of its US$2.6 billion Victoria Dockside development in Kowloon, Hong Kong, with the launch of the 15-story K11 Atelier mixed-use office tower.

* Landsea Green Properties Co. Ltd. subsidiary Nanjing Langming Real Estate Group Ltd. entered into a cooperation agreement with Nanjing Zhongbei Shengye Properties Development Co. Ltd., under which Nanjing Xushenghui Corporate Management and Consulting Co. Ltd. will become a 40/60 joint venture between the signing parties.

Nanjing Xushenghui owns a 50% stake in Nanjing Yicheng Properties Development Co. Ltd., which oversees the residential development of a 70,709.5-square-meter site in Nanjing, China, a parcel that was purchased for nearly 1.37 billion yuan.

* Yunnan Metropolitan Real Estate Development Co. Ltd. committed 1.5 billion yuan for a health and elderly care investment fund that it will establish with China Life Insurance Co. Ltd., Reuters reported.

* InterContinental Hotels Group Plc is planning to incorporate its Franchise Plus model into properties that bear its Crowne Plaza Hotels & Resorts, Holiday Inn and Holiday Inn Resort brands, in a bid to accelerate expansion in China.

* Chinese car park operator Sunsea Parking secured a 1.5 billion-yuan capital injection from Warburg Pincus LLC and Red Star Macalline Group Corp. Ltd., China's largest furniture retail chain.

* According to a Moody's report, Chinese developers that it rates recorded strong property sales for the 10 months to October, even though sales growth nationwide decreased in the same period.

Australia

* Unit holders of the Folkestone-affiliated Folkestone Real Estate Income Fund at Sydney Olympic Park have resolved to add three years to the fund's life, extending its initial five-year term to until December 2020. Folkestone Real Estate, which owns the grade A commercial building at 7 Murray Ross Ave., held A$38.0 million of assets as of September 2016.

* Two AMP Capital funds equally divided Commonwealth Superannuation Corp.'s 50% stake in Indooroopilly Shopping Centre in Brisbane that they acquired under a deal valued north of A$800 million. The funds outbid other interested buyers, including Scentre Group and QIC Global Real Estate, to claim the half-stake, which was earlier tipped to fetch A$1 billion.

* Woolworths Ltd. is continuing its selling spree and is now gearing up for the sale of a six shopping-center portfolio valued to be about A$200 million, The Australian reported.

In 2011, the company sold eight shopping centers to a joint venture between Charter Hall Retail REIT and Telstra Super for A$266 million and in 2015 it also divested a A$180 million portfolio of six stores across Australia. Most recently, the company put up for sale an office and distribution center complex in Melbourne for about A$100 million.

* AVJennings Ltd. is considering an investment in the emerging build-to-rent sector in Australia. The developer's CEO, Peter Summers, was quoted by The Australian as saying that its move to the sector would likely be part of a partnership instead of alone.

Singapore

* Units of Cromwell European REIT that were offered during its €865.7 million initial public offering, which was approximately 3.1x oversubscribed upon its Nov. 28 closing, are expected to start trading on the Singapore stock exchange Nov. 30 at 2 p.m., Singapore time.

Cromwell Property Group's REIT subsidiary offered 428,535,000 units at 55 euro cents apiece. The offering consisted of an international placement of 392,171,000 units and a public offering of 36,364,000 units in Singapore.

* Soilbuild Group Holdings Ltd. agreed to construct the building that will house RF360, the Singaporean joint venture of American semiconductor giant Qualcomm and Japanese electronics components maker TDK, The (Singapore) Business Times reported.

Soilbuild and the sponsors of the end user of the property, which will have a gross floor area of more than 320,000 square feet upon its expected completion in June 2019, agreed to invest a combined S$610 million for the construction of the building.

* The How Sun Park estate of 20 townhouses in Singapore's Bartley area was sold to a subsidiary of SingHaiyi Group Ltd. for about S$81.1 million, The Business Times reported. The transaction marks the third en-bloc attempt of the owners of the development.

Elsewhere in Southeast Asia

* SM Prime Holdings Inc. launched its fourth mall in the Philippine province of Bulacan, which will contribute 27,000 square meters to the portfolio of the Filipino developer. Tenants of the newly opened mall include SM Hypermarket, Watsons, Ace Hardware, Miniso, Surplus and BDO.

* Sansiri Public Co. Ltd. committed US$80 million in equity to various technology and lifestyle companies in a bid to expand its business and add revenue sources from outside of Thailand.

Japan

* Heiwa Real Estate REIT Inc. is paying ¥2.52 billion for the acquisition of two properties Dec. 15. Reuters reported that the company is also selling a property for ¥1.22 billion on Dec. 22.

Other real estate news

* A subsidiary of Frasers Centrepoint Ltd. signed a conditional agreement to buy for €32.4 million German logistics company greenfield Logistikpark Freiberg GmbH. The target owns an industrial property spanning 21,071 square meters of gross lettable area in Freiberg am Neckar in the German state of Baden-Württemberg.

* China Overseas Holdings Ltd.'s American arm launched the sale of units at its 99 Hudson luxury condominium development in New Jersey. The South China Morning Post reported that the company is hoping that U.S. buyers will be drawn to the 79-story development because of its proximity to Manhattan and New York's financial district.

* Lendlease Corp. Ltd. and urban designer Carlo Ratti won the contract to redesign the 100-hectare site in Milan where the 2015 World Expo was held, The Australian Financial Review reported. As part of the 12-month first-stage consultancy deal, the pair will develop a master and business plan for the site, which upon completion will feature offices, research centers, a university, residential properties and cultural spaces.

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 Nov. 29, US$1 was equivalent to 6.61 yuan, 64.43 Indian rupees, ¥111.87 and S$1.35.