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R&F's IPO makes it on CSRC's list; HNA's $6B property resolution

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R&F's IPO makes it on CSRC's list; HNA's $6B property resolution

S&P Global Market Intelligence offers our top picks of Asia-Pacific real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

An IPO wish

* The China Securities Regulatory Commission, or CSRC, restarted its evaluation of Guangzhou R&F Properties Co. Ltd.'s intention to float in either the Shanghai or Shenzhen bourse. The developer had requested that CSRC pause its review of the company's IPO application because of the resignation of the representative of a certain joint sponsor for the IPO, proceedings related to which have now been resolved.

The company embarked on the plan in November 2015 and had set a target of raising roughly 35 billion yuan.

Property presents

* Certain "buildings in Australia" have been included in a US$6 billion list of overseas commercial properties that Chinese conglomerate HNA Group Co. Ltd. is planning to off-load, as pressure from home is mounting. The Wall Street Journal reported that the Chinese government's increased scrutiny of outbound investments by HNA and other Chinese companies prompted the sellout.

The Journal also noted that since 2015, Fosun has spent over US$40 billion for assets outside the Great Wall.

* Swiss investor Partners Group AG and Australian developer Propertylink have set up an office fund that will focus on investing in grade A and B assets in Sydney, Melbourne and Brisbane. The fund has a target of A$500 million and made its first acquisition in North Sydney for A$150 million.

The office building sold to the pair was jointly owned by a Propertylink fund and Fosun Group. Bloomberg News, in reporting about the property transaction, noted that the Chinese conglomerate's decision to sell the site comes amid China's heightened scrutiny of outbound deals.

* In Japan, Nippon Building Fund Inc. this week agreed to buy two assets for ¥82.30 billion and sell three more for ¥92.70 billion.

* Charter Hall Group's Prime Office Fund outbid Chinese investor Yuhu Group to acquire the 15-story Telstra House building in Sydney for A$340 million, The Australian Financial Review reported. The 23,275-square-meter grade A commercial building at 231 Elizabeth St., fully leased to Telstra Corp. Ltd., is being sold by Singapore-based Chinese trading house Bright Ruby.

* In Europe, Global Logistic Properties Ltd. is the new owner of the US$2.8 billion Gazeley portfolio after completing the acquisition of the European logistics warehouse and distribution park developer, investor and manager. The company established two new European funds that will allow investors to gain access to the logistics portfolio. GLP also upsized its fund management platform's assets under management by US$4.0 billion to US$43.0 billion.

* Blackstone Group LP is closing in on the acquisition of Goodman Group's European industrial property portfolio in a deal that could be finalized in early 2018, IPE Real Assets reported, citing unnamed sources. Goodman is the single largest owner and developer of logistics properties in Europe, with A$4.6 billion worth of assets under management as of Sept. 30, the report noted.

Season of M&A

* City Developments Ltd. stood firm this week, declaring its rejected-then-sweetened offer to buy out Millennium & Copthorne Hotels Plc final. The Singaporean company added that its £6.20-per-share offer for its London-listed peer has "very material premium and value" for shareholders of the target.

City Developments is giving Millennium shareholders until Jan. 23, 2018, to accept the sweetened offer, which values the hotelier at roughly £2.01 billion.

* GIC is in the running for a stake in RMZ Corp. worth 24.00 billion Indian rupees, according to sources cited by Livemint. The Singaporean sovereign wealth fund is up against Canada Pension Plan Investment Board for the 21% interest in the Indian developer.

* Asia Pacific Data Centre said former suitor, security holder and tenant NEXTDC Ltd.'s proposal to wind up the company is "premature and ill-founded" but noted that an independent board committee has been formed to evaluate the proposal.

Recently, the data center operator appointed agents from Savills (NSW) Pty. Ltd. and Cushman & Wakefield to start the marketing campaign for its entire portfolio, which was estimated at A$300 million after taking into account recent portfolio sales, the triple-net lease structure and the ongoing sale of the Metronode data center business to Equinix Inc. under a nearly A$1.04 billion deal.

NEXTDC has disputed APDC's valuation claim for its portfolio, noting that APDC's properties were independently valued at A$212.8 million a few months ago, among other reasons.

Featured this week on S&P Global Market Intelligence

China home prices forecast to continue growing in 2018, analysts say

Rollen Catorce, Aimen Hakim and Anusha Iyer contributed to this report.

As of Dec. 21, US$1 was equivalent to ¥113.42 and 64.00 Indian rupees.