Blackstone Pulls Sale of JP Morgan Sydney HQ and More Asia Real Estate Headlines

The world’s biggest landlord leads Mingtiandi’s headline roundup today as Blackstone is reported to have shelved its attempt to sell JP Morgan’s Australian headquarters in Sydney’s central business district. Also making the news, investors are selling down Dalian Wanda Group’s bonds as the company faces a deadline for a Hong Kong IPO of its mall business and Shui On Land announces a new residential project in suburban Shanghai.

Blackstone Sale of $671M Aussie Office Project Fizzles

US private equity giant Blackstone has surprised the Australian commercial property market by pausing the sale of the JPMorgan office tower in the heart of Sydney’s central business district for which it had hoped to reap a boom price of up to A$1 billion ($671 million).

The famed investor’s campaign to sell the prize tower, which sits above Westfield Sydney, ran up against global concerns about the shifting value of offices, particularly in the northern hemisphere, and the local impact of higher interest rates on the economy and demand for space. Read more>>

Dalian Wanda Bonds Slide as Mall Unit Struggles to Meet IPO Deadline

The offshore bonds of Dalian Wanda Commercial Management, the commercial property management arm of Chinese conglomerate Dalian Wanda Group, have taken a hit this week despite the company denying recent rumours of possible extensions to onshore trust loans.

The slide in bond prices also comes as a six-month deadline by the Hong Kong stock exchange for the initial public offering of an entity controlled by Dalian Wanda Commercial Management is due to expire by the end of this month. Read more>>

Shui On Forms JV for $749M Shanghai Residential Project

Hong Kong’s Shui On Land Ltd is leading a joint venture to develop a residential project in Shanghai’s Minhang district at a total investment of RMB 5.2 billion ($749 million) according to an announcement to the HKEX on Thursday.

Chaired by Hong Kong tycoon Vincent Lo, Shui On will hold 90 percent of the venture, with Shanghai Pucheng Investment Development, a unit of the local government, holding the remaining stake. Shui On said the partners plan to bid for a site in Minhang’s Pujiang town in Shanghai’s southern suburbs. Read more>>

HSBC Refutes Ping An Case for Breaking Up Bank

HSBC has hit back at its largest shareholder Ping An’s latest proposal to restructure the bank and separate its Asia business into a Hong Kong-listed entity, saying it would result in a material loss of value for shareholders.

Europe’s largest bank said in a statement published on Wednesday that it had held extensive meetings with Ping An, including around 20 discussions at a senior level, but there remained disagreement. HSBC said the structural reforms suggested by Ping An would undermine the bank’s international business model and erode earnings, dividends and shareholder value. Read more>>

WeWork Could Face De-Listing From NYSE in Six Months

WeWork said on Tuesday that it had received a non-compliance notice from the New York Stock Exchange, as its stock closed below $1 on average over a consecutive 30 trading-day period.

Shares of the flexible workspace provider were down 2 percent at 48 cents in aftermarket trade. The notice will not result in immediate de-listing and the company will have six months to regain compliance, WeWork said. Read more>>

KKR Looks to South Korea, India as APAC Real Estate Markets Stagger

KKR & Co. counts South Korea and India among stable commercial realty markets as concerns over the health of the segment mount globally, according to a top executive at the firm.

“Significant amount of debt in the realty sector needs to be refinanced, and rising interest rates along with falling prices continue to push up the risks,” Joe Bae, co-chief executive officer at KKR, said in a media briefing in Mumbai Wednesday. While markets in the US and parts of Europe are roiled by these woes, India and Korea are holding out as stable spots with high occupancy rates, he added. Read more>>

Evergrande Shenzhen Project Taken Over by Local Metro Operator

China Evergrande’s redevelopment project on Henggang Street in the Longgang District of Shenzhen has been taken over by Shenzhen Metro Group, China Vanke’s largest shareholder, official tender documents showed.

The total planned investment would come in at RMB 46.4 billion (HK$52.8 billion), the documents showed. It is the largest redevelopment project in Henggang, with a residential area of 1.32 million square metres. This comes as Evergrande’s restructuring plan has won over some of its biggest bondholders, including several top names specializing in troubled credits. Read more>>

Keppel REIT Highlights Occupancy Rate as Income Inches Upward

Keppel REIT says its net property income grew 1.3 percent in the first quarter as occupancy in its portfolio climbed to 96.3 percent by the end of March.

The Singapore-listed trust highlighted that its Blue and William office project in Sydney has achieved practical completion this month and will soon begin contributing income to the REIT after having secured Equifax as its first anchor tenant in December of last year. Read more>>

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