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Oxford derails Blackstone's Investa bid; CapitaLand closes half of US$1B deal

* Oxford Properties Group topped Blackstone Group LP's takeover bid for Investa Office Fund, or IOF, by submitting a A$5.50-per-unit offer for the Australian real estate investment trust. The Canadian real estate company's proposal represented a 2.8% premium to the private equity giant's increased offer of A$5.3485 per unit.

IOF is expected to postpone a scheduled Sept. 6 meeting for Blackstone's proposal in light of the rival bid, The Australian Financial Review's Street Talk reported. The target's board is said to be hoping that the delay will lead to a higher offer from its suitors.

* CapitaLand Ltd. closed the sale of its stakes in 10 Chinese malls to China Vanke Co. Ltd.'s partnership with Triwater Asset Management and SCPG Holdings Co. The recent completion takes the Singaporean developer halfway through its US$1.1 billion divestment of interests in 20 shopping centers in China, which forms part of a strategy to focus on core cities in the country.

Hong Kong and China

* Shimao Property Holdings Ltd., KWG Group Holdings Ltd. and Central China Real Estate Ltd. all saw annual increases in their respective contracted sales for August. Sales jumped 120% to about 15.50 billion yuan for Shimao Property, 121.0% to nearly 5.41 billion yuan for KWG Group and 118.5% to about 4.17 billion yuan for Central China during the reporting month.

* Joyce Kwock, head of Hong Kong property research at Nomura International (HK) Ltd., predicted a 13% decline in the city's residential property prices in 2019, Bloomberg News reported. Kwock was quoted as saying that similar to what happened in late 2015, the price fall will also be triggered by the Federal Reserve's interest-rate hike.

* Hong Kong's Permanent Secretary for Transport and Housing Stanley Ying was cited by Bloomberg as telling the Hong Kong Economic Journal that the city could consider further restrictions to foreigners' acquisition of homes in the special administrative region. According to the official, the Hong Kong government will continue to monitor the situation and "roll out measures when necessary without notice."

* A total of 6,688 sales contracts for properties were recorded in August in Hong Kong, down 21% month on month and up 9.1% year over year, ON reported, citing Hong Kong's Land Registry. The value of the properties sold during the month also decreased 38.7% to HK$60.9 billion from the previous month, but was up 39% from a year earlier.


* RCS Trust, a 60/40 joint venture of CapitaLand Commercial Trust and CapitaLand Mall Trust, issued S$150.0 million in 3.05% notes due Sept. 4, 2024, under its US$2.00 billion euro medium-term note program. The notes are expected to be listed on the Singapore stock exchange Sept. 5 at 9 a.m. local time, according to a news release.

* Oxley Holdings Ltd. said the Ministry of National Development's revision of development charge rates in Singapore for the Sept. 1, 2018, to Feb. 28, 2019, period will have minimal impact on its planned developments in the city-state since the projects were already given provisional permission before the change takes effect.

* The Urban Redevelopment Authority received five and three respective bids at the Sept. 4 closing of the public tender for two residential sites in Singapore.

UED Residential Pte. Ltd. placed the highest bid of about S$368.8 million for the property at Dairy Farm Road, while COHL Singapore Pte. Ltd.'s partnership with CSC Land Group (Singapore) Pte. Ltd. submitted the top bid of S$215.0 million for the land plot at Jalan Jurong Kechil.

Elsewhere in Southeast Asia

* Johor Chief Minister Osman Sapian said foreigners may buy units at the US$100 billion Forest City project being developed by Country Garden Holdings Co. Ltd.'s local arm in Johor, Malaysia.

The statement comes amid uncertainties surrounding foreign ownership in the project, which came to light after Malaysian Prime Minister Mahathir Mohamad told a press conference in August that the government would not issue visas to offshore consumers of the development.

* Megaworld Corp. agreed to develop JPMorgan Chase Bank's Philippine Global Service Center in Taguig City, Philippines, under one of the biggest office lease deals in the country. The planned 25-story build-to-suit office building intended in the Fort Bonifacio area will feature approximately 70,000 square meters of gross leasable space.


* The City of Sydney tapped CBRE Group Inc. to oversee the over A$200 million sale of a 1.2-hectare land parcel at 14-26 Wattle St. in the Pyrmont district. The development site carries approval for a 50,000-square-meter mixed-use project that will include apartments, a childcare center and a city-owned indoor recreational center.

* Peregrine Corp. is also divesting a portfolio of car parks in Adelaide's central business district for A$200 million, according to The Australian. With the help of JLL, the South Australian family-owned company is marketing the properties at 215 North Terrace, 52-70 Frome St. and 28-30 Hindley St.


* Figures released by Knight Frank LLP showed that the highest office-rental hike quarter over quarter in Asia was recorded in Bengaluru at 7% during the three months ended June 30, Bloomberg News reported. The city, considered India's Silicon Valley, was followed in the real estate agency's index by Tokyo, Melbourne and Sydney, where increases of 5.5%, 4.6% and 4.2% were seen, respectively.

Other real estate news

* Hoteles Hesperia SA, one of the shareholders being wooed by Thai hotelier Minor International PCL for its takeover of NH Hotel Group SA, appointed JP Morgan to be its adviser regarding its 8% stake in the targeted hospitality company. Hesperia sought the expertise of the financial services company as it considers various options for the shareholding that Minor International is offering to buy at €6.30 per share.

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 and John Chan contributed to this report.