Hong Kong’s residential market is poised for a rebound in 2025 (Image: Getty Images)
Goldman Sachs expects Hong Kong’s residential property prices to recover in 2025 after hitting bottom this year, with that story leading today’s headline roundup. Also in the news, the UK’s Coller Capital leases a partial floor in The Henderson in Hong Kong’s Central district and Ares Management raises $1.7 billion for a credit fund targeting Australia and New Zealand.
Goldman Sachs Says Hong Kong Home Prices to Rebound Next Year
Hong Kong’s residential property market is poised for a rebound in 2025 with an anticipated 5 percent increase in home prices after reaching a low point this year, Goldman Sachs said.
The US investment bank said the sector will see a gradual recovery in the latter part of this year, when the US Federal Reserve begins to cut rates and Hong Kong mortgage rates are lowered from the second quarter of 2024 onwards. Read more>>
UK’s Coller Capital to Move Hong Kong Office to The Henderson
UK investment firm Coller Capital has signed a lease for Henderson Land Development’s new skyscraper ahead of the tower’s opening later this year.
The alternative asset manager will rent a partial floor space of about 4,500 square feet (418 square metres) at The Henderson, according to people familiar with the matter. London-based Coller, among the world’s largest investors in the secondary market for private assets, declined to comment. Read more>>
Ares Raises $1.7B for Australia Private Credit Fund
Ares Management has raised A$2.6 billion ($1.7 billion) for a credit fund for Australia and New Zealand, as it seeks to capitalise on opportunities created by banks retreating from leveraged lending.
The Ares Asia Direct Lending fund, the company’s first leveraged buyout vehicle for the region, has deployed over A$1.04 billion of first lien, senior secured loans. Recipients include Australian funeral home operator InvoCare, as it was delisted by private equity firm TPG; Allegro Funds, as it acquired fuel retailer Gull New Zealand; and BGH Capital’s payments platform Pushpay, the firm said. Read more>>
Keppel DC REIT to Receive $9.8M From Delinquent Tenant in Dispute Resolution
The manager of Keppel DC REIT announced on Tuesday that DXC Technology Services will pay a settlement amount of S$13.3 million ($9.8 million) to the REIT’s facility manager by April 2024, as a “commercial and amicable resolution” to the payment dispute.
The REIT’s pro forma distribution per unit for FY2023 would have been increased by about 7 percent, had the amount been received in the year. Read more>>
Bank of Korea Board Member Flags Real Estate, Household Debt Risks
Bank of Korea board member Hwang Kun-il said Tuesday that the country’s real estate and household debt risks remain elevated, while inflation is far exceeding the central bank’s target.
“Although there are positive signs of inflation slowdown and an exports-led economic recovery, inflation is far exceeding the target while real estate and household debt-related risks remain,” Hwang said as he began his four-year term as a member of the central bank’s monetary policy board. Read more>>
Student Housing Platform Amber Raises $21M, Led by India’s Gaja Capital
Student accommodation platform Amber has raised $21 million in its first round of institutional funding, led by Mumbai-based private equity firm Gaja Capital.
The round comprises $18.5 million in fresh equity and the remaining in venture debt from Lighthouse Canton and Stride Ventures. Read more>>
Shanghai’s Commercial Landlords Face Pressure to Lower Rents
Owners of commercial properties in Shanghai are under pressure to cut rents to support restaurants and retailers facing the daunting task of sustaining their businesses amid lacklustre consumer demand.
Shopping centres and retail outlets based in the city’s non-central business district areas are likely to see a rise in vacancy rates due to the closure of unprofitable businesses, according to developers and property brokers. Read more>>
Singapore State Land Sale Proceeds in FY2023 at $6.05B, Highest in 6 Years
Proceeds of state land sales have amounted to about S$8.15 billion ($6.05 billion) so far for the government’s fiscal year ending 31 March 2024.
This is the largest sum recorded from government land sales in the past six years, since FY2017, when S$8.4 billion worth of land was sold, said Chia Siew Chuin, JLL’s head of residential research. Read more>>
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