Blackstone’s Stephen Schwarzman is hoping to calm jittery investors
In today’s roundup of regional news headlines, Blackstone announces that redemption requests for a private credit fund have reached their pre-set limit, GIC trims its stake in developer China Vanke, and mainland authorities continue to roll back harsh COVID curbs.
Blackstone’s Credit Fund Reaches Withdrawal Limit
Blackstone said redemptions from its $50 billion non-traded business development company reached its pre-set limit for the first time but investors were still allowed to cash out on their investments.
This is the first time redemption requests had reached the pre-set limit of 5 percent since Blackstone launched the product in January 2021. It also comes after Blackstone announced last Thursday that it would curb withdrawals from its $69 billion unlisted REIT following a surge in redemption requests. Read more>>
GIC Cuts Stake in China Vanke After Share Price Surge
Singapore sovereign wealth fund GIC has sold a large part of its stake in developer China Vanke following a recent upsurge in the value of the builder’s shares.
From 14 to 30 November, GIC sold 40 million shares of Vanke, reducing its stake in the Shenzhen-based builder’s H shares to 6.89 percent from over 9 percent, data released by the Hong Kong stock exchange showed. GIC sold 5.73 million of the shares on 30 November, reaping nearly HK$100 million ($12.9 million). Read more>>
China Announces U-Turn on Strict Zero-COVID Measures
In a sharp reversal, China has announced a series of measures rolling back some of its most draconian anti-COVID restrictions, including limiting harsh lockdowns and ordering schools without known infections to resume regular classes.
The National Health Commission in a 10-point announcement on Wednesday stipulated that COVID-19 tests and a clean bill of health displayed on a smartphone app would no longer be required, apart from vulnerable areas such as nurseries, elderly care facilities and schools. It also limited the scale of lockdown to individual apartment floors and buildings, rather than entire districts and neighbourhoods. Read more>>
India’s Macrotech Developers Plans $450M Share Sale: Sources
Indian real estate company Macrotech Developers, part of the Lodha group, plans to raise $450 million via a qualified institutional placement that will see its controlling family selling a stake of about 7 percent, two sources told Reuters.
The proposed stake sale underscores a recent deal boom in Indian real estate, where prices are expected to rise steadily in the next few years, roughly in line with overall economic growth, according to a Reuters poll of experts. Read more>>
China’s Property Sector Support Fails to Lure Bond Investors
The battered bonds of Chinese developers are showing tentative signs of a rebound after Beijing’s measures to support the cash-strapped sector, but long-term investors are keeping away until they see signs of a deeper recovery.
High-yield dollar-denominated bonds of companies such as Powerlong Real Estate Holdings and Country Garden Holdings have rallied since late November, cheered by the Chinese central bank’s and banking regulator’s 16 steps to support the ailing sector. Read more>>
State-Ordered Property Funding Plan Will Hit Shareholders, Analyst Warns
Investors should short Chinese bank stocks as policymakers turn to the nation’s commercial lenders to help reflate the property market at the expense of shareholders, according to BCA Research.
They should buy consumer and auto stocks as monetary easing powers purchases, the advisory said. This relative equity trade can be applied in both onshore or offshore markets, they argued in a report to clients. Read more>>
US Panel OKs GIC’s Acquisition of Store Capital REIT With Oak Street
Store Capital Corporation, a REIT that invests in single-tenant operational real estate, announced Tuesday that the Committee on Foreign Investment in the United States has approved the previously announced all-cash acquisition of the company by affiliates of Singapore sovereign investor GIC and funds managed by Oak Street, a division of Blue Owl.
The transaction is expected to close in the first quarter of 2023, subject to approval by the company’s stockholders and the satisfaction of certain other customary closing conditions. Read more>>
Donald Trump Jr to Visit India for Possible Real Estate Expansion
Trump Organization executive vice president Donald Trump Jr, son of the former US president, is expected to visit India this month and may announce an expansion in the Indian real estate market.
The New York-based Trump Organization already has a presence in the market through a partnership with Mumbai-based Tribeca Developers. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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