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US-China deal gives hope for Asian RE markets; ESR, GIC form US$500M China JV

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US-China deal gives hope for Asian RE markets; ESR, GIC form US$500M China JV

* According to property developers attending a conference in Beijing, the potential first phase of a trade deal between China and the U.S. is expected to bring back stability to Southeast Asian countries' economies and real estate markets, South China Morning Post reported. The deal, which will likely be signed in the week of Jan. 14, was announced in December 2019 and includes provisions that could boost the value of many Asian currencies.

* Colliers International's "Asia Market Outlook" report shares the same optimism for Asian property markets, saying that recent developments, including the easing of the trade tensions between China and the U.S. and persistent loose monetary conditions, improve sentiments for 2020 and should raise confidence among investors.

* Asia-Pacific-focused logistics real estate platform ESR Cayman Ltd. and Singapore's sovereign wealth fund GIC Pte. Ltd. committed US$500 million for a joint venture that will develop logistics facilities in China. The team-up marks the pair's second collaboration following another partnership in Japan.

Greater China

* Hong Kong's Lands Department awarded the 50-year land grant for a roughly 13,538-square-meter private residential development site in the Tuen Mun area of the New Territories in the city to Kaisa Group Holdings Ltd., which placed the winning bid of HK$3.50 billion. The Chinese developer outbid 15 other tenderers including Sun Hung Kai Properties Ltd., CK Asset Holdings Ltd., Henderson Land Development Co. Ltd. and Sino Land Co. Ltd.

* China Evergrande Group and Shenzhen Investment Ltd. extended again the deadline for an investment agreement that will pave the way for the separate listing of Hengda Real Estate Group Co. Ltd. on the Shanghai Stock Exchange to Jan. 31, 2021, from Jan. 31. The extension comes less than a month after the companies changed the deadline for the exclusivity period for the 60 billion-yuan cooperation deal.

* China Kepei Education Group Ltd. agreed to purchase the Harbin Institute of Petroleum in Harbin, China, for 1.45 billion yuan. The transaction will involve the transfer of Wang Fu and Xie Yongli's shareholdings in the companies that hold the undergraduate institution, which occupies an approximately 666,667-square-meter property.

* HNA Group Co. Ltd. is believed to have sold the 26-story Shanghai HNA Tower commercial building at 898 Puming Rd. in Shanghai to China Cinda Asset Management Co. Ltd. for an undisclosed consideration, Mingtiandi reported, citing an earlier report from government news website The Paper. Shanghai HNA Tower is one of nine properties across China with a total book value of roughly 14 billion yuan that the Chinese conglomerate was reportedly planning to divest in March 2019.


* Amcorp Supreme Pte. Ltd. launched a mandatory 17.9 Singapore-cent-per-share takeover offer for TEE Land Ltd. after agreeing to buy 68.78% of the Singaporean developer's total stake from TEE International Ltd. and Phua Chian Kin, a TEE International director. TEE International is expecting to net S$48.3 million from its share divestment, according to a news release.


* Aspen (Group) Holdings Ltd.'s Aspen Vision City Sdn. Bhd. joint venture with IKEA Southeast Asia awarded a 617 million-ringgit contract to Kerjaya Prospek Group Bhd.'s Kerjaya Prospek (M) Sdn. Bhd. subsidiary for the construction of the Vivo Executive Apartment project and its second phase in Batu Kawan, Penang. Vivo Executive Apartment will comprise 1,530 executive apartment units, a nine-story carpark podium, community recreational facilities and shop lots, while its second phase will have two towers that can accommodate 980 apartments in total.


* A Tetris Capital-led consortium involving Australia & New Zealand Banking Group Ltd. won a A$470 million contract with a 30-year term from the South Australian government for the development and operation of two schools in the Adelaide suburbs of Aldinga and Angle Vale, The Australian Financial Review reported. The properties involved in the public-private partnership contract will include community facilities such as for child care.


* BAe Systems Pension Funds Investment Management Ltd. committed to investing US$130 million in Investcorp International Holdings Inc.'s direct lending initiative for India's real estate sector, Property Funds World reported. The platform will target opportunities in the affordable and mid-market housing segments across the country's top seven cities.

Other real estate news

* Australian superannuation fund Qsuper Ltd. paid A$1 billion for the acquisition of a Microsoft Corp.-leased office complex in Bellevue, Wash., and a 939-unit apartment property in Falls Creek, Va., with a four-story garage.

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