Warburg Pincus is said to be selling a third of its stake in Pham Nhat Vuong’s Vincom Retail
Vietnam, Los Angeles, and Shanghai all make a showing in today’s top real estate news from Asia with an account of a top US private equity firm looking to cash in on a Vietnam retail property leading the list.
In Shanghai, Vincent Lo’s Shui On is expecting a slow year for sales, and a lawsuit threatens to force the sale of one of the biggest Chinese property investments in Los Angeles. We also have new investments and disposals from Singapore and Australia a bit further down the page.
Warburg Pincus Said Seeking to Cut VN Retail Stake by Third
Warburg Pincus wants to sell a third of its holding, equal to 50 million shares, in Vietnamese real estate and retail firm Vincom Retail, Bloomberg has reported.
The share package is valued at $78 million, or VNĐ35,100-VNĐ36,550 ($1.50-1.57) per share. Vincom Retail is a member of the giant real estate-technology-retail corporation Vingroup. Read more >>
Shui On Land Cuts Sales Target After Falling Short in 2018
Hong Kong-listed property developer Shui On Land reported on Wednesday that its core earnings had dropped by 3 per cent to 3.06 billion yuan (US$457.09 million) for the year ending December 31, 2018.
Vincent Lo Hong-sui, Shui On’s chairman, said the company had slashed its sales target for 2019 by 16.7 per cent to 10 billion yuan after failing to meet a target of 12 billion yuan it had set last year, as well as a 4.6 per cent drop in Shanghai home prices year on year. Read more>>
Lawsuit May Force Sale of Oceanwide’s LA Project
The three-tower Oceanwide Plaza project in Los Angeles suffered from a series of serious design issues and delays in the two years leading up to January, when work stopped, according to a lawsuit by a major subcontractor.
San Francisco-based Webcor Builders has filed a lawsuit in Los Angeles Superior Court claiming the company is owed more than $62.3 million for its work by prime contractor Lend Lease Construction, Inc. and a pair of local project entities formed by Oceanwide Holdings Co., a publicly traded Chinese company.
If successful, the foreclosure on the mechanics lien could force the sale of the property. Read more>>
Chinese Investors Grab San Jose Office Building
An investment group based in China has bought a large office building in north San Jose, which has become a commercial property hotbed for developers, tech companies and investors.
GZI North First, an affiliate of a developer based in China with offices in Seattle, has purchased a building at 2665 N. First St. between West Trimble Road and West Plumeria Drive on March 19. The buyer paid $41 million, according to Santa Clara County public records filed on March 19. Read more >>
SG’s Soilbuild REIT Sells Industrial Asset for S$34.1M
Soilbuild Business Space REIT (Soilbuild REIT) has agreed to sell its industrial property at 72 Loyang Way in Singapore, including all of its mechanical electrical equipment, to Kim Hock Enterprise for a total consideration of S$34.08 million.
The REIT is expecting net proceeds of about $34.055 million after accounting for divestment related expenses, resulting in an estimated net gain of $55,000. It is within the Loyang Industrial Estate on a number of JTC leasehold estate land titles, which collectively expire on March 20, 2038 with a remaining tenure of about 19 years as at March 21. Read more>>
Frasers Property to Sell 50% Stake in Melbourne Office Tower
Frasers Property Australia said on Wednesday it has entered a deal to sell its entire 50 percent stake in a Melbourne, Australia, office tower to co-owner GPT Wholesale Office Fund (GWOF) for A$326.2 million ($231.5 million). The gross sale price is at an initial yield of 4.8 percent, Frasers Property said in a filing to SGX after the market close on Wednesday.
GWOF exercised its preemptive right to purchase the stake following a “re-positioning” of the building and the re-leasing of more than 22,000 square metres of space, the filing said, adding deal settlement is expected later this month. Read more>>
Cache Logistics Trust to Acquire Warehouse in Australia
Cache Logistics Trust is proposing to acquire a single-storey logistics warehouse and office facility in Victoria, Australia for A$41.2 million ($29.2 million), with an initial property yield of 6.8 percent, the REIT’s manager announced on Wednesday.
The acquisition will be Cache’s largest warehouse to date, with a land area of 83,020 square metres and a net lettable area of 37,853 square metres. It is located in the industrial suburb of Altona, close to main arterial roadways, the Port of Melbourne and Melbourne’s central business district.
Cache said the proposed acquisition is in line with its portfolio rebalancing and growth strategy, recycling capital with strategic divestments and acquisitions. Read more >>
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