The coronavirus continued to show its ability to move markets this week as a Singaporean hotel trust sold off one of its Australian assets at a discount and China’s property investment continued to rise in September despite slowing growth in home sales and housing prices.
Also in the news, Indian warehouse developer Indospace wins a $75 million investment from the IFC, JLL rolls out a new property app, and Hongkong Land says it’s taking a long-term view in Bangkok.
CDL Hospitality Trust Sells Brisbane Hotel for A$63.5M
CDL Hospitality Trusts (CDLHT) is selling its 4.5-star hotel Novotel Brisbane in Australia for A$67.9 million (S$66.4 million) to an independent third-party buyer, ADFA Brisbane.
The sale price is 6.9 per cent higher than the original purchase price of A$63.5 million on Feb 18, 2010, and represents a 0.6 per cent premium to the independent valuation of A$67.5 million as at Aug 31, 2020. Read more>>
China’s New Home Prices Grow at Slowest Rate Since 2016
New home prices in China grew at their slowest pace in over 4-1/2 years as tightening measures in some big cities helped cool the property market despite a broader economic recovery.
A recovery in China’s property market has provided much-needed support to an economy hard-hit by the coronavirus earlier this year. But policymakers have rolled out new restrictions in recent months on concerns of a potential market bubble. Read more>>
China Property Investment Grew at 12% in Sept
China’s September real estate investment rose at the fastest pace in nearly 1-1/2 years, supported by robust construction activity as the economic recovery picks up steam after the coronavirus crisis.
Real estate investment in September rose 12% from a year earlier, the biggest jump since April last year when it also increased by the same amount, and quickening from 11.8% seen in August, according to Reuters calculations based on data from the National Bureau of Statistics on Monday. Read more>>
IFC to Invest $75M in Indospace Logistics Development Fund
International Finance Corporation (IFC), the investment arm of the World Bank, is planning to invest around $75 million (Rs 550 crore) in Indospace Logistics Parks III LP, a $580-million vintage fund for developing logistics and industrial parks across India.
The fund is managed by Indospace Capital Asia Pte Limited and its Indian affiliate Indospace Capital Advisors Private Ltd, together referred to as Indospace. It develops and operates warehousing and industrial property assets in India through various special purpose vehicles (SPVs). These SPVs are indirectly owned by Indospace Logistics Parks III LP, a Singapore-based limited partnership managed by Indospace Capital Asia Pte Limited (Indospace or the Fund Manager). Read more>>
CapitaLand Commercial Trust to Be Renamed After Merger
Capitaland Commercial Trust’s (CCT) distribution per unit (DPU) fell by 9.1 per cent to two Singapore cents for its third quarter ended Sept 30, from 2.20 Singapore cents a year ago.
Gross revenue was down 8.7 per cent to S$94.7 million for the quarter, from S$103.8 million a year earlier. Read more>>
China Evergrande Fails to Offload Leftover Units at HK Project
China Evergrande, the world’s most indebted developer, failed to offload leftover units at its The Emerald Bay Phase 2 project in Hong Kong on Friday.
It had sold just seven out of 262 units as of 7pm local time, which agents attributed to an oversupply of new flats in the district. Several projects, such as New World Development and MTR Corporation’s The Pavilia Farm in Tai Wai, have diverted buyers’ attention. Read more>>
MLT Offering Price Set at S$1.99; Placement Oversubscribed
Both components of Mapletree Logistics Trust’s (MLT) equity fundraising to finance its Asia acquisition spree have been priced at the top ends of their indicative ranges, with the upsized placement oversubscribed.
MLT’s manager on Wednesday said the private placement was about 5.5 times covered, with the issue price fixed at S$2.027 per new unit. The upsize option was exercised in full. Read more>>
JLL Rolls Out New Online Property Listing Platform
With the coronavirus pandemic disrupting travel and making it impossible to conduct due diligence on prospective real estate investments, a new proptech platform allows potential investors to access information and carry out a detailed analysis, eliminating the need to get on a plane.
OfficeBlocks, launched by JLL and Risk Integrated, covers thousands of commercial real estate in major cities across Asia-Pacific, allowing investors anywhere in the world to check rents, vacant floors or units available for leasing and the risk profile by simply using a photo of the property. Read more>>
Hongkong Land Upbeat on Bangkok Outlook
Hong Kong-based investment group Hongkong Land and SET-listed developer Singha Estate remain confident in the Thai property market over the long run.
William Bright, director at Hongkong Land Holdings, a commercial development arm of Hongkong Land, said the company is confident in the Thai property market and will continue investing. Read more>>
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