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Top Hong Kong developers' income tipped to rise; Banyan bids 2.28B baht for unit

* Financial services company Morgan Stanley is expecting homebuilders in Hong Kong such as Sun Hung Kai Properties Ltd., Sino Land Co. Ltd., CK Asset Holdings Ltd. Kerry Properties Ltd. and Henderson Land Development Co. Ltd. to log gains of between 19% and 250% when they announce their respective June to December 2017 results, the South China Morning Post reported.

* Banyan Tree Holdings Ltd. is offering to buy all the 57,084,525 shares that it does not already own in its Laguna Resorts & Hotels Pcl. subsidiary for about 2.28 billion Thai baht, or 40 baht per share. The all-cash bid will be submitted by Banyan Tree together with its Banyan Tree Resorts & Spas (Thailand) Co. Ltd. subsidiary, according to a news release.

Hong Kong and China

* Shui On Land Ltd. is expecting a year-over-year increase of at least 50% in its attributable profit for the year ended Dec. 31, 2017. However, the Shanghai-based property developer is also anticipating its net gearing to fall by not less than 15% during the reporting period in comparison with figures logged in the preceding financial year.

* Sino-Ocean Group Holding Ltd. assured that the recent seizure of one of its largest shareholders, Anbang Insurance Group Co. Ltd., by the China Insurance Regulatory Commission will not have any adverse impact on its operations and business.

The statement follows Sino-Ocean's receipt of a written notice from Anbang Insurance, which said the insurer has no recent plans to reduce its shareholding in the listed diversified property developer.

* Zall Group Ltd., under an agreement with Xiben New Line Stock Co. Ltd. and Pan Fujie, is establishing a joint venture that will be engaged in the online trading of black commodities. As part of the deal, the former Zall Development Group Ltd. will be providing a 1.0 billion yuan loan in 2018 and an additional 2.5 billion yuan loan in 2019 to the proposed joint venture, which will have a registered capital of 100.0 million yuan.

* Hong Kong-listed investment holding company Suncity Group Holdings Ltd. said two of its subsidiaries, Shenzhen Zirui Real Estate Development Ltd. and Sun Century Property Group Co. Ltd., paid 235.0 million yuan and 45.0 million yuan to settle complaints relating to a 120.0 million yuan loan that they guaranteed.

Approximately 807.1 million yuan of assets, including those owned by the two subsidiaries, have been frozen because of the lawsuits. In a filing, Suncity Group said written orders were already obtained to have the defendants' assets released.

* Wang Wenjin, deputy vice director and chief risk management officer of China Vanke Co. Ltd., said the company has built 103,000 long-term rental apartments in 29 cities in the past three years, with 30,000 units launched in the market, Tencent News reported. The developer aims to build another 300,000 units in the next three years to be under the same brand and managed by a central management company.

* Tianjin, China, will build 28,000 units of long-term rental apartments this year, covering 1,900,000 square meters, China News Service reported. The government will also sign long-term rental contracts with house owners in the city to encourage the letting out of private properties.

* January prices of new homes, excluding government-subsidized housing, rose in 52 of the 70 Chinese cities monitored by the National Bureau of Statistics, less compared with 57 cities in December 2017, where price hikes were observed, Bloomberg News reported. The news agency attributed the change to China's strict implementation of property cooling measures.

Bloomberg, citing figures from private data collector China Real Estate Information Corp., also reported that new-home sales in 50 leading cities decreased by 18% month over month in January.

Japan

* Daiwa Office Investment Corp. will sign a deal with Sumitomo Mitsui Trust Bank Ltd. for a roughly ¥5.00 billion loan that will be drawn down Feb. 28. The loan, along with money sourced from cash reserves, will be used for the repayment of the REIT's ¥6.85 billion debt that will mature on the draw-down date.

* Hiroshima Bank Ltd. said its Hirogin REIT Management Co. Ltd. unit, established in August 2017, has received a REIT management license, making it the first full-service REIT management subsidiary of any regional bank in Japan, Jutaku-Shimpo-Sha reported.

Southeast Asia

* In an update on the proposed merger of ESR-REIT with Viva Industrial Trust, the Singapore trust's manager, ESR Funds Management (S) Ltd., said it is still in exclusive discussions with the respective manager and trustee-manager of Viva Industrial Real Estate Investment Trust and Viva Industrial Business Trust, the two components of the targeted business park and industrial property trust.

If pursued, the merger of the two trusts is expected to create the fourth-largest REIT in Singapore, with 57 properties seeded under a roughly S$3.0 billion portfolio.

* Kuala Lumpur-based developer UOA Development Bhd. gained a new subsidiary after buying 2 ordinary shares in Cosmo Housing Development Sdn. Bhd. for nearly 61.1 million Malaysian ringgit. The new subsidiary, according to a news release, is the owner of 13 land parcels in the Malaysian capital that span roughly 9.4 acres combined.

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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.

Rollen Catorce, Emily Lai and Jaekwon Lim contributed to this report.

As of Feb. 23, US$1 was equivalent to 6.33 yuan, ¥106.64, 3.92 Malaysian ringgit, S$1.32 and 31.43 Thai baht.