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Hongkong Land, Wharf log gains in FY'17; China Life buys €162.2M Xiwang Tower

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Hongkong Land, Wharf log gains in FY'17; China Life buys €162.2M Xiwang Tower

* Hongkong Land Holdings Ltd.'s underlying profit attributable to shareholders increased 14.4% year over year in full-year 2017 to US$969.7 million from US$847.8 million. For the reporting year, the Hong Kong-listed office-focused development group's total profit also increased to approximately US$5.59 billion from roughly US$3.35 billion.

* Wharf (Holdings) Ltd.'s core profit in the year ended Dec. 31, 2017, grew 14% year over year to HK$15.7 billion from HK$13.8 billion.

In a filing, the Hong Kong-based diversified developer said core profit could have reached HK$16.6 billion during the year if not for its demerger of Wharf Real Estate Investment Co. Ltd., which earlier recorded 24.0% revenue growth in full-year 2017 to HK$20.90 billion.

* Chinese state-owned China Life Insurance Co. Ltd. bought an office building in Dalian, China, from a European fund owned by Deutsche Bank AG's asset management arm, IPE Real Assets reported. Though the cost of the acquisition was not revealed, the publication noted that the asset, Xiwang Tower, was valued at €162.2 million as at March 31, 2017.

Southeast Asia

* Elidom Investment Co. Ltd. secured the right to compulsorily acquire all the shares in CWG International Ltd. that were not tendered for the acceptance of its 19.5-Singaporean-cents-per-share takeover offer. The offeror gained the power after 640,188,648 shares, or roughly 96.70% of the total number of the target's issued shares, were tendered to accept the bid. The closing period for the acceptance was extended earlier to March 19 from Feb. 28.

* Malaysian developer SP Setia Bhd. entered into a roughly 431.9 million-ringgit agreement to buy the remaining 50% stake it does not already own in property developer Setia Federal Hill Sdn. Bhd., which owns two leasehold land parcels in Kuala Lumpur with a combined estimated market value of 2.36 billion ringgit.

* A City Developments Ltd. subsidiary and affiliate established a 60/40 joint venture for the development of a site at Sumang Walk, Singapore, which was won through a nearly S$509.4 million bid.

* The public tenders for Singaporean residential sites Asia Gardens, Park View Mansions, 27 Moulmein Rise and Katong Omega Apartments have been launched with asking prices of S$338 million, S$320 million, S$110 million and S$41 million, respectively, The (Singapore) Business Times reported.

Hong Kong and China

* China Evergrande Group is anticipating its profit attributable to shareholders and net profit from core business for full-year 2017 to respectively be 4x to 5x more and roughly 2x higher compared with figures logged in the year-ago period.

* Listed diversified developer China Overseas Land & Investment Ltd. logged contracted sales of approximately HK$16.49 billion, higher compared with the HK$10.10 billion it logged in the prior year. During the reporting month, the company also spent nearly 14.74 billion yuan for 11 land plots in China with a combined gross floor area of about 2,731,020.25 square meters.

* The initial two-year term of Jinmao (China) Hotel Investments and Management Ltd's US$250.0 million facility from DBS Bank Ltd. was extended to May 23, 2020. Funds drawn from the facility are earmarked for general capital expenditure and dividend distribution.

* China Jinmao Holdings Group Ltd.'s Franshion Brilliant Ltd. closed its offering of 1.25 billion yuan in 5.20% guaranteed senior notes due March 8, 2021. The notes are expected to be listed on the Hong Kong stock exchange March 9.

* Beijing has sold 18 residential land parcels since the beginning of 2018, with an average premium of 14.5%, Caijing (Beijing) reported.

Australia

* Hotel operator Mantra Group Ltd. anticipates its proposed A$1.18 billion merger into French hospitality giant AccorHotels to be completed in May. The projection follows the merging parties' receipt of a no-opposition decision from the Australian Competition and Consumer Commission.

* Moody's downgraded its long-term issuer rating for diversified developer Scentre Group to A2 from A1, with a stable outlook.

Japan

* Industrial real estate investment trust Industrial & Infrastructure Fund Investment Corp. settled its ¥10.73 billion purchase of six Japanese properties, which forms part of a roughly ¥21.36 billion deal that it signed in February for 10 assets.

* Nippon Building Fund Inc. is buying two office buildings in Tokyo's Osaki area in a ¥9.78 billion agreement with Mitsui Fudosan Co. Ltd.

* Mitsui Fudosan in September will open a new LaLaport shopping mall as part of the Minato AQULS urban redevelopment project in Nagoya, Tokyo's The Nikkei reported. The four-story complex will have 217 retail shops.

* Tokyu Land Corp. will reinstate a Tokyu Plaza department store at Tokyo's Shibuya Station for opening in 2019, The Asahi Shimbun reported. The former Tokyu Plaza Shibuya at the same location was closed in 2015, and its return signifies the revival of shopping demand in the area, which is boosted by the influx of foreign tourists.

Other real estate news

* Frasers Hospitality, a subsidiary of Singapore-listed Frasers Property Ltd., is looking to double its portfolio in the Middle East over the next few years through the planned launch of three properties in Dubai, one each in the Saudi Arabian cities of Jeddah and Al Khobar, and another one in Kuwait.

* Singaporean wealth fund GIC Pte. Ltd., in partnership with German real estate investment manager Caleus Capital Investors GmbH, is planning investments in office properties in Berlin, IPE Real Assets reported.

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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.

Cam Nones, Emily Lai and Jaekwon Lim contributed to this report.

As of March 8, US$1 was equivalent to 6.34 yuan, ¥106.12, 3.91 Malaysian ringgit and S$1.32.