Citadel may have picked up some bargains at the IFC (Source: Getty Images)
Hong Kong’s stumbling office market looks like a bargain to at least one major US investment manager, with Chicago-based Citadel said to be tripling its footprint in the IFC. Also in the news today, Swire Properties has announced plans for its first hotel in Tokyo and ESR-Logos REIT says it plans to sell off some non-core assets.
Citadel Expands in Hong Kong’s IFC as Rents Drop
Ken Griffin’s Citadel and Citadel Securities are snapping up extra office space in Hong Kong to accommodate expanding teams, a vote of confidence in a city that’s seen an exodus of professionals frustrated by its Covid restrictions and Beijing’s tightening grip.
Hedge fund Citadel leased the 59th floor in premium office tower Two IFC, adding 22,000 square feet, while market maker Citadel Securities took up a similarly sized 42nd floor, according to people familiar with the matter. That’s in addition to a third floor they already occupy in the building. Read more>>
Swire to Open First Hotel in Tokyo
Swire Hotels is collaborating with Tokyu Group and L Catterton Real Estate (LCRE) for a new luxury hotel in Shibuya, Tokyo under The House Collective brand. The yet-to-be-named House is set to open in 2027 and will be the first of its brand to open outside of China.
The new House, set on the site of the iconic flagship Tokyu Department Store, will offer travellers a respite from city life. In addition, this project aims to meet the sustainability goals of the Tokyu Group and LCRE through international certifications. Read more>>
ESR-Logos REIT Plans to Sell Off Less-Loved Assets
THE manager of ESR-Logos REIT on Wednesday said it has identified up to S$450 million of non-core assets – over 8 percent of its S$5.5 billion portfolio – for divestment over the next 12-24 months, in an effort to recalibrate its portfolio and unlock value.
“These non-core assets are really small, non-scalable, and have shorter land leases,” Adrian Chui, chief executive officer of the manager of ESR-Logos Reit, said at a briefing accompanying its first half 2022 results announcement. Read more>>
Suntec REIT Boosts Distributions by 16%
Suntec real estate investment trust’s distribution per unit (DPU) grew 15.8 percent year on year to S$0.0481 for its 6-month period ended Mar 31, 2022, from S$0.04154 last year. Gross revenue rose 22.1 percent to S$203.5 million for the first half of this year, from S$166.8 million in the corresponding year-ago period.
The REIT’s manager on Wednesday attributed the higher revenue mainly to contribution from The Minster Building – newly acquired in July 2021, higher revenue from Suntec City, Suntec Singapore, 21 Harris Street and Olderfleet, 477 Collins Street. Read more>>
Zhengzhou Govt Moves to Shore Up Shaky Developers
Zhengzhou, Central China’s Henan Province, held a meeting with seven major real estate enterprises to help address their current difficulties, further ensuring house delivery, normal production as well as legal rights of home buyers, a Chinese media outlet thepaper.cn learned from an involved firm on Wednesday.
The enterprise said that during the meeting, the city’s housing security and real estate administration gave preferential support for the seven property companies, including mergers and acquisitions, bankruptcy reorganization as well as secured housing leasing. Read more>>
Sin Capital Investors Fret Over Buyout of Singapore’s Fullerton Health
With a major buyout deal of troubled Fullerton Healthcare Corp (Fullerton Health) by white knight RRJ Capital merely days away from closing, some indirect investors of SIN Capital – a firm that majority-owns the healthcare firm and is led by Singaporean David Sin – are feeling angsty as they remain in the dark over the fate of their investments.
The Business Times understands that these investors had a couple of years ago formed groups to attempt to recoup their investments from SIN Capital; they have collectively invested S$10 million to S$30 million (maybe, even more) in several of SIN Capital’s British Virgin Islands (BVI) companies, called Oceanfront Investments. Read more>>
Keppel Pacific Oak US REIT Reports 5.4% Increase in Distributions
Keppel Pacific Oak US REIT on Wednesday reported a 5.4 percent rise in distribution income for H1 2022 to US$31.5 million from $29.9 million a year prior.
Distribution per unit (DPU) for H1 however fell 4.4 percent from $0.0316 to $0.0302 due to the manager taking all of their base fee in cash rather than in units. If the manager had taken their base fee in units, the DPU would have been 0.7 percent higher. Read more>>
Lian Beng Reports 67% Profit Jump as Singapore Construction Booms
Singapore construction heavyweight Lian Beng Group on Wednesday reported a 66.7 percent year-on-year surge in net profit for the financial year ended May 31, with activity across all business segments recording an improvement following the easing of Covid-19 restrictions.
Net profit for FY2022 came in at S$43.5 million, compared with S$26.1 million in the previous financial year, according to the mainboard-listed company’s condensed interim consolidated financial statements. Read more>>
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