Italian warehouses are in fashion this week as an Aussie fund manager and its Korean partner complete a $60 million purchase of a set of DHL facilities in the European nation.
Also in the headlines, while brokers look for an encouraging trend, their research teams are showing that commercial property investment in Singapore fell by 55 percent in the third quarter, compared to one year ago. In more positive news, mainland China retailers enjoyed a better than expected Golden Week, as consumption grew by 4.9 percent over the early October holiday period, compared to 2019.
Cromwell, IGIS Complete $60M Italian Warehouse Buy
Cromwell Property Group, in partnership with Korean real estate investment manager, IGIS Asset Management, has announced the settlement of seven DHL logistics assets in Italy for A$83.3 million ($60.3 million). This will be funded by a new five-year loan facility of A$48.7 million, secured at the property level along with IGIS equity commitments and drawdown of existing CMW facilities.
Located in Northern Italy, the wealthiest area of the country, near the cities of Milan, Turin, Bologna and Verona, the seven properties are fully let to DHL on long-term leases with an overall portfolio WALT of 16 years. Two of the seven logistics centres are brand new and built to modern and technologically advanced specifications, while the other five properties are fully compliant with DHL’s high standards, having been occupied by DHL since their development. Read more>>
Singapore Commercial Investment Down 55% in Q3
The buzz may be returning to Singapore’s real estate investment sales market, with interest and activity recovering in the commercial sector in particular during the July September quarter, compared with preceding quarters.
That being said, overall, investment sales – defined as transactions totalling S$10 million and more – in the city-state was still down 55.1 percent year on year to about S$4.4 billion. Read more>>
China Holiday Spending Up 4.9% Over October Golden Week
A surge in spending over China’s “golden week” holiday has highlighted an encouraging rebound in consumption after the coronavirus pandemic ravaged the economy early in the year.
During this year’s eight-day holiday, which combined National Day and the Mid-Autumn Festival, retail and restaurant sales reached 1.6 trillion yuan (US$235.5 billion), with daily sales up 4.9 per cent compared to last year’s seven-day holiday, the Ministry of Commerce said. Read more>>
Thailand’s Biggest Hotel Group Warns of Closures, Job Cuts
Minor International, which runs more than 500 hotels across 55 countries, may cut more jobs and shut recently re-opened properties as the coronavirus pandemic and travel restrictions continue to keep guests away.
“We have hotels that can’t even pay for staff or electricity because they’re totally empty,” Bill Heinecke, chairman and founder of Bangkok-based Minor, said in an interview. “We’ve taken a lot of job cuts and we’ll probably have to take more.” Read more>>
Chinese Homebuyers Shun Australia as COVID Bites
When mainland Chinese resident Susan bought an off-plan flat in Melbourne’s new high-end West Side Place development in 2017, the Nanjing-based property investor’s plan was to rent it out upon its completion next year.
She shared the strong Chinese appetite for property – particularly flats in Australia – that sent the sector in Sydney and Melbourne soaring during a five-year boom between 2013 and 2017, when home prices rose as much as 70 per cent. Read more>>
Leedon Park Bungalow Sold for S$73M in Singapore
A Good Class Bungalow (GCB) at Leedon Park was sold for $73 million ($1,643 psf), according to a caveat lodged with URA Realis last Friday. The property sits on a sprawling 44,435 sq ft, freehold site.
Based on an Inlis search, the house belonged to Woo Kim Phoe. The new buyer of the GCB at Leedon Park has purchased the property for S$73 million using a UBS trustee. Read more>>
Evergrande Reaps RMB 142B From Discount Blitz, But Shares Fall
China Evergrande Group shares fell after the embattled developer completed about 71 per cent of it sales target in the two months through October, offering its steepest discount in history that could squeeze margins.
The shares fell as much as 2.7 per cent after it said contracted sales were 142 billion yuan (S$28.4 billion) between Sept 1 and Oct 8, according to an exchange filing on Friday (Oct 9). It generated 173 billion yuan for the two months through October last year. Read more>>
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