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Real Estate News & Analysis: May Edition


Charter Hall, BlackRock market A$250M towers; Heitman eyes Lendlease-built asset

* BlackRock Inc. and a Charter Hall Group-managed trust are separately selling two office towers in the Australian city of Perth with a total estimated value of over A$250 million, The Australian reported.

Real estate fund manager Elanor Investors Group is reportedly looking to buy from the Charter Hall trust the campus-style WorkZone West property in the city's central business district for more than A$125 million. On the other hand, a Korean bidder is believed to be leading the competition for BlackRock's Optima Centre building, which is being marketed for approximately A$130 million.

* Global real estate investment management company Heitman LLC is negotiating a deal with the Melbourne-based Impact Investment Group for the acquisition of the 16,600-square-meter office building at 1 King St. in Brisbane, Australia, The Australian reported. The nine-level property labeled as K1 was developed and formerly owned by listed diversified property developer Lendlease Corp. Ltd.

Australia

* South Africa-listed Investec Australia Property Fund Ltd. tapped JPMorgan and Macquarie Capital to be its advisers for its plan to launch a A$1 billion dual listing on the Australian stock exchange, The Australian reported.

* Insurance group Zurich Financial Services is undertaking the development of a 25-story commercial tower at 118 Mount St. in Sydney, according to The Australian. Upon its completion, the 20,000-square-meter building will feature a two-level podium with cafe, a sky terrace, three basement levels for car parking and end-of-trip ­facilities.

* Brisbane's Malouf family is planning to build a A$100 million urban resort hotel on a 2,700-square-meter site in the city's Fortitude Valley suburb. According to The Australian Financial Review, the planned 175-room The Calile Hotel will open later in 2018 and will also include high-end retail shops and restaurants, among other amenities.

* Andrew Hay, Knight Frank's global residential head, said Australia's tougher tax rules for foreign buyers such as the New South Wales government's 8% stamp duty tax will not alleviate offshore investors' appetite for properties in the country, the AFR reported. Hay said the security benefits offered by the market are more than enough to offset the additional charges.

Hong Kong and China

* Beijing Properties (Holdings) Ltd., through its China Logistics Infrastructures (Holdings) Ltd. subsidiary, signed an agreement with ESR Cayman Ltd. for the establishment of a privately offered fund that will build up a roughly 6.42 billion-yuan portfolio of Chinese land plots.

* Investment holding company Tai Cheung Holdings Ltd. is collectively selling five townhouses at 3 Plunkett's Road in Hong Kong for HK$2.34 billion. Although the local seller prefers to divest the properties collectively, it is reportedly also accepting individual offers for each house.

* An indirect subsidiary of both China New City Commercial Development Ltd. and Zhong An Real Estate Ltd. entered into a 204 million-yuan deal with Wanxiang (Fujian) Zhiye Development Co. Ltd. for the purchase of a 51% stake in Xuzhou City Wanxiang Zhiye Development Co. Ltd. The target is engaged in the development, construction and management of commercial properties in Xuzhou, China, according to a filing.

* MTR Corp. Ltd. Chairman Frederick Ma Si-hang was cited by The (Hong Kong) Standard as saying that 18,000 flats will be supplied by the railway operator over the next six years through its housing projects. Ma also updated on the development of the Ventilation Building site in Hong Kong's Yau Tong area, saying the project is slated for a 2025 completion.

Singapore

* The Urban Redevelopment Authority awarded the dual-envelope tender for a commercial and residential plot at the prime Holland Road stretch to Stirling Land Holdings Pte. Ltd., which placed the top bid of S$1.21 billion.

Stirling Land is a Far East Organization-led consortium that also includes Sekisui House Ltd. and Sino Group, according to The (Singapore) Business Times. To secure the tender, Stirling Land outbid other parties such as partnerships involving Lendlease, Perennial Real Estate Holdings Ltd., GuocoLand Ltd. and CapitaLand Ltd.

* The public tender for the collective sale of the 20-story Trendale Tower and the 36-apartment Cairnhill Astoria in prime District 9 were separately launched with respective reserve prices of about S$163.5 million and S$196 million. The Business Times reported that the tender for Trendale Tower will run until June 25, while the bidding for Cairnhill Astoria will close June 27.

* Also gearing up for the en-bloc-sale market are five freehold residential sites with a combined value of over S$1.2 billion. The public tender for the properties, which include the 140,055-square-foot Cavenagh Gardens site, is expected to close between June 19 and June 29, according to marketing agent JLL.

* Ascendas Real Estate Investment Trust's trustee issued HK$729.0 million of 3.66% notes due May 16, 2025, under its S$5.00 billion multicurrency medium-term note program. Net proceeds raised from the planned offering will be used for debt refinancing and/or general working capital by the REIT and its subsidiaries.

India

* Independent asset manager Proprium Capital Partners is investing an estimated US$100 million to Musaddilal Projects Ltd. for the creation of a logistics/warehousing platform that will develop, own and operate industrial warehouses, Mint (New Delhi) reported, citing two people aware of the development.

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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 contributed to this report.

As of May 16, US$1 was equivalent to 6.37 yuan and S$1.34.