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Melbourne office market fires up; QIC closes A$200M asset deal with Deutsche

* Rental activities in various office towers are heating up the leasing market in Melbourne's central business district, The Australian reported.

The publication reported that mining giant Rio Tinto is going to share Dexus' 360 Collins St. office building with multinational oil and gas company Shell after it signed to lease 362 square meters of space in the tower.

Investment management giant Vanguard Group, on the other hand, is in talks to lease space in Charter Hall Group's Wesley Place development at 130 Lonsdale St., which is being constructed by Lendlease Corp. Ltd. The property will feature 55,000 square meters of office space and 4,500 of retail space upon completion.

Elsewhere in the city, law firm Norton Rose Fulbright is eyeing space in Mirvac Group's 40-level Olderfleet development at 477 Collins St., of which more than 22,000 square meters of space has already been pre-committed to Deloitte. Suntec Real Estate Investment Trust recently owned a 50% share in the tower after a A$414 million half-stake buy from Mirvac in August.

* QIC Global Real Estate's managing director, Steven Leigh, confirmed to The Australian Financial Review the completion of the company's asset-swap agreement with German investment firm Deutsche Asset Management worth more than A$200 million. The 12,180-square-meter Pittwater Place commercial property in Sydney's Mona Vale was acquired by Deutsche in 2012 for A$56.6 million, while QIC took over the control of the 555 Lonsdale St. building in 2016.


* In Sydney, Dexus lodged an application to develop a 33-level, 48,338-square-meter office development with retail component at 140 George St. in the Parramatta suburb, The Australian reported.

* Listed developer Mirvac Group, through senior development manager Emma Ellis, called on the state and federal governments to help get the build-to-rent sector rolling. Ellis, a panelist during the Property Council of Australia's first build-to-rent lunch, was quoted by the AFR as saying developers "will need some government assistance" in order for the sector to finally kick off.

Mirvac has been one of the build-to-rent sector's avid supporters in Australia. In August, in a bid to pioneer the sector in the country, the developer sought the help of investment bank UBS AG to help gather investors for its planned build-to-rent club, which will inject funds into various build-to-rent projects in Australia.

* Student housing specialist Scape is hoping to raise A$500 million for its second Australian wholesale fund with the help of existing backers, Australian industry superannuation funds, sovereign wealth funds and other global investors. The fund intends to finance the development of 5,000 student beds in Sydney, which will soon be expanded into a portfolio to 10,000 student beds according to Scape's Australian director Craig Carracher.


* Keppel Corp. Ltd. subsidiary Keppel Capital Holdings Pte. Ltd. purchased for US$27.5 million, KBS Pacific Advisors Pte. Ltd.'s 50% stake in the proposed manager of Keppel-KBS US REIT, which already received an eligibility-to-list letter from the Singapore bourse.

Keppel-KBS US REIT, upon listing, will invest primarily in a diversified portfolio of income-producing commercial assets and real estate-related assets in the key growth markets of the U.S., the company said in a filing, noting that the trust will have 11 office assets during its US$500 million initial public offering.

* Mapletree Logistics Trust received roughly 142.7% of the total number of new units at the Oct. 4 closing of its preferential offering. The trust said it raised about S$640.0 million from the equity fundraising, reaching its proceeds target from the preferential offering and the private placement of new units.

* Frasers Centrepoint Ltd. is planning to boost its 4.25% due 2026 series of notes, which was issued in an aggregate amount of S$250 million in April 2016, with an additional offering of S$30 million. The additional notes will be priced at 103.435% of the principal amount, including accrued interest starting April 21.

Proceeds from the issuance of the new notes will be used to meet the company's funding requirements.

* Two more sites could be riding Singapore's en bloc wave soon as owners of the 209-unit Vista Park condominium development in Pasir Panjang and the How Sun Park estate in the Bartley area warm up to the idea of a collective sale. The (Singapore) Business Times reported that owners of Vista Park are asking roughly S$345 million for the site, along with an approximately S$62 million development premium, while How Sun Park owners put a S$72 million price tag on their property.

The publication noted that almost 80% of the owners of both properties have already given consent to the en bloc sales.


* Ayala Land Inc. CFO Augusto Bengzon told a forum that the company is on track to reach its net income target of 40 billion Philippine pesos by 2020, through an average growth in net income of of 20%. Bengson was cited by The Phillippine Star as saying that the property arm of Ayala Corp. is banking on a sustained and balanced growth strategy to attain its goal.

* SM Prime Holdings Inc. is considering a new e-commerce strategy that will make it easier for customers from a certain area to buy products and have it delivered to a different area. The "clicks to bricks" plan, which is expected to be launched by 2017-end, is still in the works according to CFO John Ong, The Manila Times reported.

Hong Kong and China

* China Resources Land Ltd. splashed an estimated 4.30 billion yuan for its acquisitions in September of three land parcels in Shanghai, Changchun and Wuhan in China. The sites have a combined gross floor area of roughly 532,299 square meters.


* Japan Retail Fund Investment Corp. wrapped up its ¥6.35 billion acquisition of trust beneficiary rights and leasehold interest in Valor Kachigawa land in Kasugai. The company used a portion of a ¥20 billion loan secured in February to fund the purchase.


* India's state housing authority Mhada is planning to develop a number of 60-story skyscrapers for middle- and high-income groups in Mumbai, which upon completion within the next eight to 10 years will deliver an estimated 8,210 apartments, the Economic Times of India 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.

Rollen Catorce contributed to this report.

As of Oct. 6, US$1 was equivalent to 6.64 Chinese yuan, ¥112.81, 51.19 Philippine pesos and S$1.37.