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Mitsubishi firms plan mega project in Myanmar; Sydney tries to shape its skyline

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Mitsubishi firms plan mega project in Myanmar; Sydney tries to shape its skyline

Movement in Myanmar

Joiningthe urban development boom in Myanmar, Japanese giants andMitsubishi Corp. plan to investas much as US$200 million for a mixed-use projectin downtown Yangon.

Theywill implement the Landmark Project in a partnership with Yoma StrategicHoldings Ltd. and First Myanmar Investment Co. Ltd. The Asian Development Bankand the International Finance Corp. will also make an equity contribution.

Uponthe estimated completion in fiscal 2020, the project will feature two officetowers, a condominium and a hotel with commercial components across more than200,000 square meters of total floor area.

Thescheme sits on a site of around 4 hectares owned by local conglomerate SergePun & Associates Ltd. Group near Yangon Central Railway Station, the city'smain commercial district.

Deemedas one of Myanmar's most high-profile international investments, progress onthe Landmark Project has been stalled since 2012 and was renewed after theministry of transport granted it critical lease extensions, Reuters reported.

Wait and see

Uncertaintyin the U.K. property market post-Brexit has prompted Hong Kong-based to puta brake on a US$330 million hotel projectin London's Shoreditch neighborhood.

GroupChairman Lo Ka-shui said he is going to pass on London for now, Bloomberg News reported.

GreatEagle oversees Champion RealEstate Investment Trust and manages a global networkof hotels through its Langham Hotels International. In London, it owns TheLangham, London, and had been in talks to buy private land in Shoreditch tobuild an Eaton Hotel.

Lobelieves Brexit is likely to lead a drop in real estate values in London. Thedecision came after a number of firms, including and , suspended trading in someproperty funds to stem a rush of investors withdrawing money in the wake ofBritain's decision to leave the EU.

Vanke battle redux

's ongoingownership battle encountered another twist this week, when Hua Sheng, anindependent nonexecutive director of the company, via his Weiboaccount a People's Daily reportthat Baoneng pledged the shares of its unit, Jushenghua, to China Resources inexchange for funding in July 2015, the month when it began to amass Vankeshares.

Huasuggested that Baoneng and China Resources, the biggest two shareholders ofVanke, are acting in concert to control the developer.

Separately,Vanke and its partners are in talksto jointly pay about 12.87 billion yuan for some commercial property firms fromBlackstone Group LPand other third parties. The developer said it would spend about 3.89 billionyuan on the acquisition but added that the company would not need to issue anysecurities to fund the deal. Vanke also said it had not entered into anylegally binding agreement regarding the deal, which was approved by its boardon June 21.

Regulatory watch

Thecity of Sydney is proposing a change to development in the central businessdistrict in an attempt to encourage more office and hotel projects and curb theconstruction of apartment towers. The draft CentralSydney Planning Strategy released this week requires that all new towersover 55 meters in height have at most 50% of the total space allocated forresidential and serviced apartment use. It also proposes to increase heightsalong central Sydney's western edge to 110 meters from 80 meters.

Capital markets

*Link Real Estate Investment Trustbecame the first Hong Kong enterprise to issue a green bond, raising US$500million at a 2.875% fixed rate due 2026.

*Global Logistic Properties Ltd.plans to issue up to10 billion yuan of panda bonds on the Shanghai Stock Exchange.

* AFrasers Centrepoint Ltd.unit proposed to issue US$200 million of fixed-rate notes due 2021 with a 2.50%interest rate per annum.

*SM Prime Holdings Inc.priced 10 billionPhilippine pesos worth of bonds with an interest rate of 4.2005% per year.

* ARegal Hotels InternationalHoldings Ltd. unit plans to issue bonds only to professional investors under aUS$1.00 billion medium-term note program, which is set to be listed in HongKong.

* ALongfor Properties Co. Ltd.unit plans to issueup to 3.7 billion yuan of bonds in two forms, with the five-year bonds pricedat 3.06% and the second-year bonds at 3.68%.

*Stockland A$398 million of debt ina U.S. private placement.

Now featuredon S&P Global Market Intelligence

: The shared-office trend thatgalvanized WeWork is taking off in the Chinese city, with market observersexpecting to see massive growth in the years to come.

: Sony Corp.'s decisionto demolish the iconic Sony Building in the heart of Tokyo's Ginza districtraised eyebrows in the property space, but plans to temporarily create a publicpark in its place could help the company foster some brand goodwill.

: Through thefirst half, SNL-covered Asia-Pacific real estate companies have favored seniordebt issuances, with the capital raised totaling approximately US$29.08 billion— about 50% more than the amount raised through senior debt in the prioryear-to-date period.

: S&P Global Market Intelligence presentsa weekly rundown of recent significant management and board changes andpersonnel moves in the European and Asia-Pacific real estate industries.

:The July 15 edition of Asia-Pacific property news recap also features a seriesof hotel projects in Japan and India

:Viva Energy REIT's targeted A$911 million raising from an IPO in Australia andan update on China Logistics Property Holdings' planned Hong Kong IPO made newsduring the week.