Jean Kam, CEO of Mapletree Logistics Trust’s manager
Singapore-listed Mapletree Logistics Trust announces the sale of two Japan warehouses, with those divestments leading today’s headline roundup. Also making the list, property giant CapitaLand denies reports of a planned Shanghai disposal and India’s Welspun eyes an industrial park expansion in Navi Mumbai.
Mapletree Logistics Trust Selling Japanese Warehouses for $28M
The manager of Mapletree Logistics Trust has agreed to sell a pair of Japanese warehouses for a combined JPY 4.3 billion ($28 million), with the divestments described as part of an effort to rejuvenate the REIT’s portfolio.
The Singapore-listed REIT is selling the Toki Centre near Nagoya for JPY 2.4 billion and disposing of the Aichi Miyoshi Centre for JYP 1.7 billion, with both divestments taking place at premiums to recent valuations, the trust’s manager said. Read more>>
CapitaLand Denies Plan to Sell Ageing Office Tower in Shanghai’s Pudong District
CapitaLand Group has denied reports that it plans to sell its 70 percent stake in Shanghai’s Pufa Tower.
A report in mainland media outlet The Paper reported earlier this week that together with partner AEW, CapitaLand had reached a preliminary agreement to sell the Pudong office tower at a 30 percent discount to the 2019 acquisition price. Market sources who spoke with Mingtiandi indicated that talks between Singapore’s CapitaLand and a Beijing-based investor had failed to result in a deal. Read more>>
India’s Welspun Announces Plan for $325M Industrial Park in Navi Mumbai
Indian industrial developer and fund manager Welspun One plans to invest $325 million to develop the country’s largest single-location warehousing and industrial park at the Jawaharlal Nehru Port Authority Special Economic Zone in Navi Mumbai, according to a statement on Wednesday.
The scheme involves expanding a planned 1.2 million square foot (111,484 square metre) park which had been envisaged as an approximately $84 million investment into a 4.45 million square foot complex catering to growing activity at the nearby Port. Read more>>
Indonesian Billionaire’s Eldest Son Buys Singapore Bungalow for $15M
The eldest child of Indonesia-born tycoon Sukanto Tanoto has picked up an old bungalow in Singapore’s Fernhill Road for S$21 million ($15.6 million).
The price works out to S$2,549 per square foot on the freehold land area of 8,238 square feet (765 square metres). The two-storey bungalow, which is near the Nassim Road Good Class Bungalow Area, is within a zone designated for three-storey mixed-landed housing, which allows the development of terrace, semi-detached and bungalow housing. Market observers expect the buyer, Andre Tanoto, to have a new bungalow built on the site for his own occupation. Read more>>
Wanda Placed on Credit Rating Watch on Distressed Debt Deal
Fitch Ratings has placed Dalian Wanda Commercial Management’s and Wanda Commercial Properties (Hong Kong)’s long-term foreign-currency issuer default ratings of CC on rating watch negative.
The RWN follows Wanda Commercial’s announcement that it is soliciting consent from bondholders for proposed amendments to the terms of the $400 million bond maturing on 20 January 2025 and to seek waivers of potential events of default. Fitch considers that the proposed amendments meet the definition of distressed debt exchange under Fitch’s corporate rating criteria. Read more>>
China Property Slump Predicted to Extend Into 2025 Despite Rescue Efforts
China’s multiyear property crisis is set to drag on in 2025 as prices and sales remain weak despite the government’s stimulus push to spur demand, according to Fitch Ratings.
China’s new home prices will fall by another 5 percent next year, as measured by China’s official statistics bureau, or roughly at the same pace this year, said Wang Ying, managing director at Fitch in Shanghai. Wang expects new home sales to decline a further 10 percent. Read more>>
Hedge Funds Pursue Japan’s $165B in Hidden Real Estate Value
Global hedge funds and private equity firms are gravitating towards Japanese companies in a bid to unlock as much as JPY 25 trillion ($165 billion) in undervalued real estate.
The hidden value of property on corporate balance sheets is showing up as a theme behind some of the biggest activist campaigns and mergers and acquisitions announced in Japan this year. In the latest move, Elliott Investment Management unveiled a 5.03 percent holding in Tokyo Gas Co, with a real estate portfolio that the US firm estimates is worth JPY 1.5 trillion — almost as much as the utility’s entire market value, Bloomberg reported last week. Read more>>
Lotte to Pledge Seoul Skyscraper as Debt Security
Lotte Group, the conglomerate involved in everything from candy making to operating shopping malls, plans to pledge the tallest building in South Korea as collateral to the banking sector to ease concerns over liquidity at its battery materials unit.
The offer of collateral comes after Lotte Chemical Corp, hurt by a recent downturn in the petrochemical industry, failed to comply with a financial ratio, according to a regulatory filing. The affiliate will hold a meeting for bondholders on 19 December in an effort to have the interest coverage ratio clause adjusted. Read more>>
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