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Sun Hung Kai obtains HK$21B loan; 4 Asian banks to fund A$2.8B Melbourne project

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Sun Hung Kai obtains HK$21B loan; 4 Asian banks to fund A$2.8B Melbourne project

* A consortium of 16 banks agreed to provide Sun Hung Kai Properties Ltd. with a five-year HK$21 billion syndicated credit facility, which the Hong Kong-based developer will use for debt refinancing, business development, general working capital and for the extension of its maturity profile in Hong Kong.

* Asian banks Maybank, Bank of China, Standard Chartered and ICBC agreed to finance the A$2.8 billion Melbourne Square mixed-use project in Melbourne's Southbank neighborhood, which is being developed by a joint venture between Employees Provident Fund, one of the largest pension funds globally, and Malaysian developer OSK Property Holdings Bhd., The Australian Financial Review reported.

The joint venture looked outside Australia for financing after being told that local banks are "very restricted in financing development projects," OSK Executive Chairman Tan Sri Ong Leong Huat said to the publication.

Hong Kong and China

* CK Asset Holdings Ltd. is seeking approval for its plan to convert its Harbourview Horizon hotel in the Hung Hom area of Kowloon, Hong Kong, into two 29-story office buildings, which will have a gross floor area of 1.1 million square feet, the South China Morning Post reported.

* An indirect China-based subsidiary of Longfor Properties Co. Ltd. issued 3 billion yuan of rental apartments special bonds, representing the first tranche of special bonds that it will issue under an issuance program. Proceeds from the whole program, earlier reported to be up to 5 billion yuan, will be directed toward seven rental housing developments in Shanghai, Nanjing, Chengdu and Wuhan.

* CIFI Holdings (Group) Co. Ltd.'s CIFI Group Co. Ltd. subsidiary completed its onshore issuance in China of 3.50 billion yuan of non-public corporate bonds, comprising 800.0 million yuan in 6.50% bonds that will mature in four years and 2.70 billion yuan in 6.80% bonds with a five-year tenure. In a filing, CIFI Holdings said the Shanghai stock exchange approved the proposed offering.

Australia

* Aveo Group Ltd. will commence in April development works on its planned A$60 million retirement village on the Sunshine Coast, which will form part of a A$3 billion master-planned community within the Palmview suburb, The Australian reported. The first 63 units of the 5.4-hectare development are slated for mid-2020 completion, the report noted.

* An Asian-backed group is reportedly courting Stockland in a bid to buy the diversified property developer's office complex at 77 Pacific Highway in Sydney for more than A$110 million. According to The Australian, the 9,392-square-meter grade-A building was valued at A$92 million as of December 2017.

* Private Singaporean group Legend Land Australia bought an InterContinental Hotels Group PLC-operated hotel in Perth for approximately A$65 million from a pair of private investors. The AFR reported that the 186-room Holiday Inn City Centre Perth at 788 Hay St. recently underwent a multimillion-dollar refurbishment, which paved the way for the addition of a new restaurant.

India

* The founder of real estate developer ATS Infrastructure Ltd. is investing 20.00 billion Indian rupees over the next five years on its new venture, HomeKraft, which carries a development mandate focused on mid-income and affordable housing projects.

HomeKraft CEO Prasoon Chauhan told India's Mint that the company is hoping to gain sales revenue of between 40.00 billion rupees and 50.00 billion rupees from the planned investment, which will see the development of an estimated 6,500 housing units.

* The Embassy Group earmarked roughly 20.00 billion rupees for its plan to add approximately 6 million square feet of commercial space to the Embassy TechVillage project in Bengaluru, which is being developed by Blackstone Group LP's 50%-owned Embassy Office Parks.

* On an annual basis, residential apartment launches in seven of India's top property markets decreased nearly 50%, while sales also dipped 15% in 2017, the Economic Times of India reported, citing figures from a report by ANAROCK Property Consultants.

South Korea

* In the coming weeks, the 622 trillion-South-Korean-won National Pension Service fund will issue two new mandates, totaling 600 billion won, to boost its exposure in the real estate sector. The plan is part of the fund's strategy to increase investments in alternative assets such as real estate and infrastructure to 15% from about 10.8%.

Southeast Asia

* Bukit Sembawang Estates Ltd., through its Bukit Sembawang Land Pte. Ltd. subsidiary, won the public bidding for the en bloc sale of the 3,863.1-square-meter Makeway View site at 2 Makeway Ave. in Singapore, after offering to pay S$168 million. The listed developer said it will transform the freehold site into a residential scheme with communal facilities.

* Australian companies are lining up investments of at least US$40 million to various projects in the Philippines that include a US$30 million hotel and residential complex in the province of Cebu, The Philippine Star reported.

Japan

* Mitsui Fudosan Co. Ltd. said it plans to build offshore wind power generation facilities in Awara, Sakai, and the seaside of Fukui City in Fukui Prefecture. Three examination councils have been established with the city authorities and local fishery cooperatives to study the proposal and for the preliminary survey, Fukui Shimbun reported.

The Daily Dose Asia-Pacific, Real Estate edition is updated by 6:30 a.m. Hong Kong time. S&P Global Market Intelligence provides links to external sites where these offer further, relevant information to our readers. While we ensure that such links are functional at the time of publication, we are not responsible in instances where those links are unavailable later.

Rollen Catorce and John Chan contributed to this report.

As of March 22, US$1 was equivalent to 6.33 yuan, 65.15 Indian rupees, S$1.32 and 1,078.7 South Korean won.