Brookfield’s REIT portfolio is anchored by Kensington office park in Mumbai
Brookfield leads Mingtiandi’s headline roundup today, with the global investment giant’s India office REIT reversing a year-ago loss. Also in the news, bankrupt developer China Evergrande gets slapped with a mainland liquidation petition and Hong Kong’s Wharf REIC reports a loss on erosion of property values.
Brookfield India REIT Swings to Q2 Profit
Office space operator Brookfield India REIT reported a consolidated net profit of INR 37.4 crore ($4.5 million) for the quarter ending June 30, against a loss of INR 27.1 crore in the same period last year. It declared a net distributable cash flow of INR 216.8 crore for the quarter, amounting to INR 4.50 per unit.
The REIT, backed by global investment giant Brookfield Asset Management, reported a consolidated income of INR 573.8 crore for the quarter, higher than the INR 314.1 crore a year earlier and the INR 535.9 crore reported for the quarter ending 31 March. Read more>>
Evergrande Unit Hit With Liquidation Petition in Mainland Court
A unit of China Evergrande has become the target of a liquidation petition over an unpaid investment of RMB 200 million ($28 million) and related interest. The petition was filed by Guangdong Vanward New Electric on 5 August to a court in mainland China, according to a Shenzhen stock exchange filing on Wednesday.
The Evergrande unit, Guangzhou Kailong Real Estate, was ordered by an arbitration court to pay Vanward the investment sum and interest of 10 percent, as well as an arbitration fee of more than RMB 1.4 million. The unit was unable to make the payment, according to the filing. Read more>>
Hong Kong’s Wharf REIC Slips to a Loss as Retail Slumps
Wharf REIC, one of Hong Kong’s biggest commercial landlords, slipped to a loss in the first half of this year after a recovery in property market prices stalled and undermined demand for office space.
The developer suffered a HK$1.05 million ($135 million) net loss in the six months to 30 June, versus a HK$1.80 billion profit a year earlier, it said in a stock exchange filing Tuesday. The company booked a HK$4.43 billion erosion in the value of its investment properties, versus HK$1.13 billion previously. Read more>>
Tokyo, Osaka Lead Home Price Increases Globally
Price increases for new homes in Tokyo and Osaka ranked at the top among 15 global cities in April as the weakening yen kept up its strong allure for overseas capital.
According to Japan Real Estate Institute’s international property price and rental index for the month, the price of primary-market properties in the nation’s two biggest cities rose 1.5 percent compared with October levels — exceeding Singapore’s 1.3 percent and New York’s 0.3 percent. Read more>>
Mainland China Warehouse Demand Slumps as Singapore Surges
Rents for industrial spaces across much of Asia Pacific continued on an upward trajectory in the first half of 2024, but mainland China saw a sharp plunge as the sluggish economy weighed on demand, according to a report by Knight Frank.
Southeast Asia saw the biggest rent increases, with Singapore the best-performing city, the property consultancy said Wednesday. Rents for logistics properties in the Lion City increased by 10.8 percent year-on-year in the first half, riding on the back of strong factory activity. Read more>>
Chinese Cities Entice Homebuyers With Residency Deals, Price Cuts
Cities around China have taken steps to attract homebuyers with sweeteners and price cuts since the country’s top leadership promised to give local governments more room to set property policies at a key political meeting last month.
The southern metropolis of Guangzhou will offer access to public education for buyers of private properties in a suburban district, according to a notice posted on the local government’s website late Tuesday. That makes it the country’s first so-called Tier 1 city to use the all-important “Hukou” permits to shore up flagging real estate demand, state media reported. Read more>>
SGX-Listed EC World REIT Cancels Distributions Due to Insufficient Funds
EC World REIT announced that its first-half distribution per unit fell 18.6 percent year-on-year to S$0.01671.
The result was mainly due to lower revenue and higher operating expenses, the Singapore-listed trust’s manager said Wednesday, adding that there would be no distribution for the period due to insufficient funds. Read more>>
State-Run South Korea Think Tank Pushes for Early Rate Cuts
South Korea’s state-run think tank on Thursday said there was a need for early cuts in interest rates, as it flagged weaker economic growth and inflation amid sluggish domestic demand.
In its revised economic forecasts, the Korea Development Institute said the economy was expected to grow 2.5 percent in 2024, down from 2.6 percent seen three months earlier, while keeping its projection for 2025 at 2.1 percent. Read more>>
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