GIC Reportedly Shopping $2B Tokyo Office Tower and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Singapore’s GIC is said to be seeking a buyer for a Tokyo skyscraper, and a Korean REIT closes in on the acquisition of HSBC’s Seoul headquarters. Also making the list, Korea’s Mirae Asset buys a Mumbai logistics facility and CapitaLand Malaysia Trust unloads an office building.

GIC Weighs Sale of Tokyo Building for More Than $2B

Singapore sovereign wealth fund GIC is considering the sale of a top-grade Tokyo skyscraper and has approached potential buyers about the property, according to people with knowledge of the matter.

The tower, 43-storey Shiodome City Center in one of Tokyo’s central business districts, may fetch a price of at least JPY 300 billion ($2 billion), two of the people said. Any deal of that size would make it one of the most expensive office building transactions ever in Japan. Read more>>

Shinhan REITs to Buy HSBC Seoul Headquarters for $135M

Shinhan REITs Management, a real estate investment arm of South Korea’s Shinhan Financial Group, is poised to acquire a 65.8 percent stake in the Seoul headquarters of HSBC at around KRW 180 billion ($134.9 million), people familiar with the matter said Tuesday.

Seoul-based Kclavis Asset Management, which created a fund at the end of 2019 for the stake in the property, selected Shinhan REITs on Monday as the preferred bidder, sources said. The two parties are expected to finalise the transaction for the deal at the end of November, when the fund matures, according to sources. Read more>>

Korea’s Mirae Asset Buys Mumbai Logistics Facility for $21M

Mirae Asset has acquired a pre-leased and income-producing warehousing property spread over 11 acres (4.5 hectares) in Bhiwandi near Mumbai from property and logistics developer BGR Constructions, furthering the Korean asset manager’s investments in industrial real estate in India.

The company’s India arm made the acquisition of a logistics facility in BGR Logistics Park with over 5 lakh sq ft leasable area through the Mirae Asset Credit Opportunities Fund, for INR 175 crore ($21 million). Read more>>

CapitaLand Malaysia Trust Selling Petaling Jaya Office Tower for $11M

CapitaLand Malaysia Trust has agreed to sell its 3 Damansara office tower in Petaling Jaya to affordable housing developer Lagenda Properties for MYR 52 million ($11.1 million).

The sale price reflects a 4 percent premium to the property’s end-of-July valuation of MYR 50 million. The proposed divestment is scheduled to be completed in the first quarter of 2024. Read more>>

Hongkong Land Joins Push to Make City’s Buildings Greener

Hongkong Land, the biggest landlord in the city’s Central district, has launched a new sustainability scheme to help its office tenants reduce their carbon footprints.

It is the latest developer to launch an initiative that forms part of an industry-wide decarbonisation push to reach the city’s climate targets. Read more>>

Singapore Luxury Residential Sales Fall but Prices Stay Firm: CBRE

Singapore’s luxury residential market continued to soften in the first half of 2023 amid aggressive rate hikes by the US Federal Reserve and a souring macroeconomic backdrop, according to a CBRE report.

Transaction volumes for both Good Class Bungalows and luxury apartments declined in the first six months of the year, mirroring movements in the general property market. Read more>>

Execution and Key Man Are Risks in HPL Plan to Redevelop Orchard Road Properties

Things are stirring at tightly held hotel, property and lifestyle group Hotel Properties.

Last month, HPL said it had received the grant of provisional permission from Singapore’s Urban Redevelopment Authority to redevelop Forum The Shopping Mall, Voco Orchard Singapore and HPL House under the strategic development incentive. Read more>>

Korean NPS Logs 9.1% H1 Return After 2022 Loss

National Pension Service of South Korea achieved a 9.1 percent return on investment during the first half of the year, with assets under management reaching KRW 983.1 trillion ($741.9 billion), the world’s third-largest pension fund said in a preliminary report on Tuesday.

The pension fund saw a profit of KRW 83.9 trillion during the first six months, rebounding from its worst-ever annual performance of a KRW 79.6 trillion loss last year. Read more>>

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