CapitaLand-managed Ascott Residence Trust is continuing to diversify beyond hospitality assets with news of its latest acquisition leading today’s collection of property headlines. Also in the news, China’s central government is taking further steps to prop up a select group of privately-controlled developers by guaranteeing loans, and some of Hong Kong’s biggest builders are providing incentives to buyers of high-end homes as the luxury market slows.
Ascott Trust to Buy 9 Overseas Properties for $230M
Ascott Residence Trust on Monday proposed the acquisition of nine serviced residences, rental housing and student accommodation properties from its sponsor, The Ascott Limited, across five countries: Australia, France, Japan, the US and Vietnam.
The aggregate purchase consideration is S$215.2 million and the estimated total capitalised cost is S$318.3 million ($230 million), the stapled hospitality group’s managers said in bourse filings before the market open. The acquisition will increase ART’s distributions by S$9.2 million and its pro forma FY2021 distribution per stapled security by 2.8 percent. Read more>>
China Supports Selected Private Developers with Credit Guarantees
Chinese regulators have instructed state-owned China Bond Insurance Co to provide guarantees for onshore bond issuance by a few private property developers including Longfor Group and CIFI Holdings, according to 4 sources with knowledge of the matter.
The support from the state comes amid mounting concerns that a deepening debt crisis and defaults in the sector could impact property developers that have been regarded as financially sound. Read more>>
Chinese Developer Bonds and Stocks Soar On Reports of State Help
China’s embattled developer stocks and dollar bonds surged Tuesday on reports of a plan that could help some raise fresh financing which is ultimately guaranteed by the state.
Notes from Country Garden Holdings Co., CIFI Holdings Group Co. and Longfor Group Holdings Ltd. jumped at least 9 cents on the dollar Tuesday morning, according to Bloomberg-compiled prices. Their shares surged more than 11 percent in Hong Kong and a Bloomberg Intelligence gauge of the sector gained as much as 4.3 percent, the most in eight weeks. Read more>>
Hong Kong Developers Sweeten Financing Terms as Luxury Deals Slide
Hong Kong’s property developers are extending favourable finance terms to luxury home deals, after big-ticket sales declined by up to almost half in July.
The number of transactions for lived-in homes worth HK$12 million ($1.5 million) to HK$20 million dropped last month with just 181 deals completed, a 45 per cent drop from June, according to analysis of Land Registry data by Ricacorp Properties. The sales of homes costing between HK$20.01 million and HK$50 million dropped by 33 per cent to 71 deals. Read more>>
Indiabulls Real Estate Cuts Net Debt By 54%
Indiabulls Real Estate has cut its net debt by 54 percent to INR 4.64 billion ($58.5 million) during the three months ended June, compared to the March quarter. Besides, the merger with the Embassy Group is in the final stage of National Company Law Tribunal (NCLT) review, according to an investor presentation by Indiabulls Real Estate Ltd (IBREL).
In the investor presentation, IBREL said its net debt was down from INR 10 billion as on March 31, 2022. Its gross debt fell to INR 73.9 billion from INR 131 billion. In April, IBREL had raised INR 865 billion by issuing shares to institutional investors mainly for land acquisition and debt reduction. Read more>>
APAC Co-Working Players Merge in Hope of Reviving Investor Interest
Regional co-working companies the Hive, Common Ground and The Cluster have merged to form a new company – The Flexi Group – that wants to roll up other industry peers across Asia, and head for an initial public offering (IPO).
The merger was supported by an investment from Singapore-based Catcha Group and Malaysia’s Emissary Capital, The Flexi Group announced on Tuesday (Aug 16). Read more>>
Carlyle Tops List of Favourite PE Managers for Korea’s NPS
The Carlyle Group was the most preferred fund manager hired by South Korea’s National Pension Service (NPS) as of end-2021, according to the NPS’ disclosure on 12 August. The world’s third-largest pension fund – with KRW 916.2 trillion ($699.9 billion) in AUM made efforts in diversification, betting on more private equity funds focused on certain sectors or regions last year.
The pension giant invested equity into 404 domestic and overseas private funds as of end-2021, up 55 from the end of the previous year. It had committed a combined KRW 84.6 trillion and invested KRW 52.6 trillion by last year, up 27 percent and 34 percent respectively from 2020. Read more>>
Hines Unveils Plan for $700M Office Tower In Melbourne
Global real estate firm Hines has unveiled plans for 600 Collins, an A$1 billion ($700 million) premium grade office tower project in the heart of Melbourne’s central business district.
Designed by international architecture practice WilkinsonEyre and leading Australian architecture and design firm Architectus, 600 Collins will have a strong focus on sustainability, amenity, wellness, and experience. Read more>>
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