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US orders HNA to sell NY tower stake; proptech pitch lures Asian developers

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US orders HNA to sell NY tower stake; proptech pitch lures Asian developers

* HNA Group Co. Ltd. is marketing its majority stake in a Manhattan, N.Y., building close to Trump Tower in order to comply with a mandate from the Committee on Foreign Investment in the U.S., The Wall Street Journal reported, citing people familiar with the matter.

The order, according to the report, was given to the Chinese conglomerate a couple of months ago without a clear explanation from the U.S. authority that reviews foreign investments in the country. It entails the divestment of the group's interest in the 21-story asset on Third Ave., which was acquired in 2016 under a deal that valued the property at US$463 million.

* Brendan Wallace, co-founder and managing partner of California-based Fifth Wall Ventures, told the South China Morning Post that Asian developers are showing interest in knowing how the company's proptech funds can deliver higher asset values as the fundraising continues for its second fund, which has a US$400 million target.

Fifth Wall is said to be expecting investments from "a handful" of Hong Kong developers for the fund, which lists CBRE, Prologis and Hines as among its anchor investors. So far, it already secured commitments from one Hong Kong and three Asian developers, the paper added.

* An estimated US$184 billion of bonds from companies in Asia excluding Japan will mature through 2019, data compiled by Bloomberg News showed. According to Linklaters LLP, as cited by the news agency, the impending maturity of the bonds will prompt Asian borrowers to actively engage bondholders by striking so-called liability management deals to ease the pressure of the approaching debt crunch.

Australia

* Philip Pearce, CEO of e-Shang Redwood Group's Australian arm, told The Australian that the company is planning to establish an Australian logistics fund that will have an initial equity of A$500 million. The fund will likely be seeded with assets that the Asian fund platform acquired when it took ownership of Commercial & Industrial Property Pty. Ltd. through a recently concluded A$102.5 million agreement.

* GPT Group secured QBE Insurance to be the anchor tenant for a planned A$300 million office development in Sydney's Parramatta suburb, The Australian reported. It is understood that the global insurer will take up 13,600 square meters of the project at 32 Smith St. that will feature a total of 26,000 square meters of space.

Hong Kong and China

* Sun Hung Kai Properties Ltd. sold 112 of the 131 apartment units it offered at its Park Yoho Milano development in Yuen Long, Hong Kong, by attracting buyers with a 16% discount, the SCMP reported. The units, sold amid the implementation of the vacancy tax in the city, were purchased at an average price of HK$15,549 per square foot.

* Beijing Properties (Holdings) Ltd.'s Nimble City Ltd. subsidiary is expecting nearly US$248.8 million from its issuance of US$250.0 million in 9.0% of bonds due Aug. 16, 2020. Proceeds anticipated from the offering will be used to refinance existing debt and for general corporate purposes, according to a filing.

* Sales of China Merchants Shekou Industrial Zone Holdings Co. Ltd. rose 90.81% year over year in July to 598,000 square meters of gross floor area, with contracted sales rising 96.84% to 15 billion yuan. The developer has sold 4.18 million square meters in the first seven months of 2018, showing a 30.78% increase from the previous year, with sales revenue going up 46.94% to 90.1 billion yuan.

Singapore

* Ascendas Real Estate Investment Trust, through its trustee, obtained a £120 million term loan facility that will mature in 2023. Validity of the loan is subject to Ascendas Funds Management (S) Ltd. remaining as manager of the REIT.

* Tuan Sing Holdings Ltd. and Rich Capital Holdings Ltd. completed their roughly S$118.9 million acquisition of the Peak Court freehold condominium estate along Thomson Road. The pair, through their TRSC Novena joint venture vehicle, struck a deal for the property's collective purchase back in May.

* The tender for the Anchorvale Crescent condominium development site was formally launched under the Government Land Sales Program with a S$255 million reserve price, according to The (Singapore) Business Times. An unnamed developer triggered the bidding in July for the 17,137-square-meter site with a permissible gross floor area of 51,411 square meters.

Japan

* Real Estate Information Network for East Japan said 3,139 existing apartments in Tokyo changed hands in July, down 5% from a year ago, Tokyo's The Nikkei reported. Meanwhile, sales of existing detached houses increased 6.7% year over year to 1,190.

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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. Links are current as of publication time, and we are not responsible if those links are unavailable later.

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