Alibaba has agreed to acquire a half stake in Singapore’s AXA Tower
A S$1.7 billion ($1.2 billion) Singapore commercial redevelopment leads Mingtiandi’s round up of Asia real estate headlines today as a stock market announcement reveals that China’s biggest e-commerce player has taken over 50 percent of a S$364.7 million debt obligation as part of a deal to buy a half stake in the building.
In other news around the region, a US property group has halted the expansion of its global co-working brand, while a mainland China internet titan has signed an agreement to invest RMB 15 billion ($2.1 billion) in a supercomputing hub in Shanghai.
Elsewhere, the CEO of a Singapore-listed property firm has warned of further disruptions amid the COVID-19 pandemic.
Alibaba to Split Shareholder Loan in S$1.7B AXA Tower Deal
In response to the Singapore Exchange’s (SGX) queries, Perennial Real Estate on Wednesday night disclosed that the shareholders’ loan, half of which will be transferred to Alibaba Singapore, has S$364.7 million ($257 million) outstanding.
The subsidiary of Chinese e-commerce giant Alibaba Group is looking to acquire 50 per cent equity interest in AXA Tower from a Perennial-led consortium, before the parties form a joint venture to redevelop the building. Read more>>
Frasers Property CEO Warns Business as Usual Not an Option as Earnings Drop 38%
Frasers Property reported earnings of S$74.5 million ($52 million) in the second quarter of 2020, down 38.1 percent on the same period in 2019, with weaker contributions from its hospitality business and associates.
For the first half of 2020, earnings dropped by 12.1 percent to $233.8 million compared with the same period the year before, even though revenue increased 5.7 percent to S$2.13 billion. Read more>>
IndoSpace Core Secures INR 10B HSBC Green Loan
IndoSpace Core, which owns industrial and logistics parks across major cities in the country, on Wednesday said it has raised INR 10 billion ($132 million) from HSBC to fund its existing green projects.
Indospace Core has about 13 million square feet (1.2 million square metres) of land across 14 industrial and logistics parks in Pune, Chennai, Bengaluru and Delhi-NCR. Read more>>
Singapore Condo, HDB Rental Volumes Plunge 36.5% in April
Demand for renting both private apartments and Housing Board flats plunged last month because of the circuit breaker measures, which prevented prospective tenants from visiting and viewing properties offered for lease, said market observers.
The month-on-month drops are also the largest in percentage terms since at least 2011. Read more>>
CBRE Halts Co-Working Expansion Plans
CBRE’s CEO Bob Sulentic said that the company has halted plans on expanding its coworking brand Hana due to the coronavirus pandemic.
The company spent $40 million on expansion plans for Hana last year, and now plans to operate only 10 units this year. Originally, the firm planned on operating 20 units. Read more>>
Tencent Investing RMB 15B in Shanghai Supercomputing Hub
Chinese tech firm Tencent is to invest RMB 15 billion ($2.1 billion) in building its Yangtze River Delta artificial intelligence supercomputing centre and industrial base in Songjiang, according to a city-level major industrial projects signing ceremony.
Construction of the project, which will cover an area of 236 mu (15.7 hectares), is expected to start this year. When completed, the AI industrial park will house more than 100 high-tech firms. Read more>>
Shanghai Unveils Plan to Turn North Bund Waterfront into New Lujiazui
Shanghai will give its North Bund a facelift, turning the 3.3 square kilometre (815 acre) waterfront area into another Lujiazui, as part of efforts to shake off worries about economic underperformance amid the coronavirus pandemic.
Lujiazui, which sits across the Huangpu River from North Bund, is home to Shanghai’s most iconic skyscrapers and is often referred to as “China’s Wall Street”. Read more>>
Tune in again soon for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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