Morgan Stanley Says China Outbound Deals Could Plunge 84% and More Asia Real Estate Headlines

At the top of today’s news, investment bank Morgan Stanley foresees an 84 percent plunge in Chinese outbound real estate investment this year, amid a widening crackdown on debt-fueled foreign acquisitions that has brought corporate giants like Anbang and Wanda to heel. But it’s not all doom and gloom in the world of property, as the CEO of southeast Asia’s biggest developer sees a rebound up ahead in the Singaporean residential market. And some Chinese firms are forging ahead with overseas projects from Manhattan to London. Read on for all these stories and more.

China Clampdown Could Spur 84% Drop in Outbound Property Deals

China’s crusade against capital outflows and leverage has ensnared some of the nation’s largest property investors, including Anbang Insurance Group Co. — the owner of New York’s iconic Waldorf Astoria hotel.

The crackdown is rippling across the world, and will likely spur an 84 percent slump in Chinese overseas property investment this year, and a further 18 percent drop in 2018, according to a report from Morgan Stanley. The most vulnerable real-estate markets are those in the U.S., U.K., Hong Kong and Australia, with office properties the most exposed, analysts including economist Robin Xing wrote. Read more>>

Singapore Housing Market May Be Turning Corner Says CapitaLand CEO

Singapore’s biggest developer, CapitaLand Ltd., detects signs that the city’s residential property market is “bottoming out” after a run of price declines, Chief Executive Officer Lim Ming Yan said.

Many investors are seeing Singapore as relatively more attractive than Hong Kong, London or Australian cities, Lim, who’s also president of the firm, said in a Bloomberg TV interview with Haslinda Amin on Thursday. Extra liquidity was a factor in higher transaction volumes and slower price declines in recent months, he said. Read more>>

Ceruzzi and Shanghai’s CMI Get $300M Loan for NYC Condo Project

After footing the bill for the erection of the first 40 stories of a Midtown East residential condominium building, Ceruzzi Holdings and SMI USA have secured a $300 million construction loan to complete the project, Commercial Observer has learned.

Madison Realty Capital provided the loan for the 72-story, 803-foot tall, 180,000-square-foot condo development at 138 East 50th Street between Third and Lexington Avenues, according to a press release from Ceruzzi and Madison Realty. The debt repaid a $65M acquisition loan—approximately 50 percent loan-to-value of the $138M the developers had invested in the property and in pre-development costs, a spokesman for Ceruzzi said. Neither Ceruzzi nor Madison Realty would provide and further details on the financing. Read more>>

Greenland Gets Green Light for $789M Revamp of London’s Ram Quarter

The developer behind the £600million plans for the Ram Quarter has been given the green light from the council to make changes to the historic Church Row.

The development by the Chinese Greenland Group consists of public retail boulevards, restaurants and green spaces, along with commercial premises and 713 private and affordable new homes, ranging from studios to four-bedroom duplex apartments. Read more>>

Singapore’s Rockworth Buys Melbourne Office Tower for $77.8M

Singapore’s Rockworth Capital Partners has bought a 22-storey office building on Melbourne’s city fringe for A$98 million amid a flurry of interest in the neighbourhood.

The vendor of the building at 390 St Kilda Road was the Australian Property Opportunities Fund, managed by Fort Street Real Estate Capital. The manager booked a 45 per cent profit on the sale after buying the property for A$56m in February 2014, taking into account the capital spent on upgrades to attract more tenants. Read more>>

Future Land Moves Financing Platform to Shanghai with $200M Bond

Chinese property developer Future Land Holdings (FLH) has raised US$200m from a US dollar bond that shifts the group’s main financing platform from Hong Kong to Shanghai.

The five-year non-call three notes carry a coupon of 5.00% and were priced at 98.913 to yield 5.25%, 50bp inside initial guidance of 5.75% area after orders reached over US$2.2bn from over 145 accounts. Read more>>

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