GIC chief executive Lim Chow Kiat
Singapore’s GIC drops the sale of its landmark Seoul Financial Center after bids failed to satisfy the sovereign giant, with that story leading today’s headline roundup. Also in the news, SGX-listed Cromwell E-REIT agrees to sell a pair of office properties in Italy and a Sumitomo-sponsored trust eyes the purchase of two Japan warehouses.
GIC Abandons Seoul Office Sale Over Korean Political Crisis
Singapore’s GIC, the world’s sixth-largest sovereign wealth fund, has dropped the sale of a landmark building in Seoul due to the prolonged political woes in South Korea with President Yoon Suk Yeol impeached over his surprise martial law decree.
CBRE, the manager of GIC’s sale of Seoul Financial Center, on Wednesday gave notification of the withdrawal of bidders including BentallGreenOak and South Korean asset managers Koramco REITs Management and Trust and its subsidiary Koramco Asset Management, according to investment banking industry sources. Read more>>
Cromwell E-REIT Selling Italy Office Properties for $21M
Cromwell European REIT announced Friday that it has entered agreements to sell two office properties in Italy for €20.9 million ($21.7 million), at a blended 7.7 percent premium to the latest valuations.
The first office is in Venice and the other in Florence. The sale of the assets, along with a divestment in Padova completed earlier this year, have further reduced the REIT’s exposure to the Italian government as a tenant, said Simon Garing, CEO of the trust’s manager. Read more>>
Sumitomo Logistics REIT Buying Saitama, Gunma Warehouses for $30M
The manager of Sosila Logistics REIT said Thursday that it plans to buy a pair of warehouses from the Tokyo-listed trust’s sponsor, Sumitomo Corporation, for a combined JPY 4.77 billion ($30 million).
Sosila Logistics REIT will be paying an expected JPY 1.47 billion for SOSiLA Yashio in Saitama prefecture and JPY 3.30 billion for LiCS Gunma Ota in Gunma prefecture, according to the stock exchange announcement, with the deals expected to be signed on 23 December and completed by 28 February. Read more>>
Wharf Sells Last Unit in Hong Kong Luxury Project for $64M
The Wharf’s luxury project 77/79 Peak Road on Hong Kong’s Peak saw its last mansion sell for HK$501 million ($64.5 million) by tender Thursday.
The 6,257 square foot (581 square metre), 77C Peak Road, which links to a 1,349 square foot garden and 923 square foot yard, fetched a price of HK$80,000 per square feet. The project, which is majority-owned by Wheelock Properties, comprises eight mansions, with sizes ranging from 6,061 to 8,139 square feet. Read more>>
Elite UK REIT to Sell Office Block for $2M
The manager of Elite UK REIT declared to the Singapore Exchange on Friday that it has agreed to sell St Paul’s House in Chippenham for £1.6 million ($2 million) to repay debt.
Built in 1990, the 15,785 square foot (1,466 square metre) office block is currently vacant, with Elite UK REIT not having identified the buyer in its announcement. Read more>>
India’s Welspun One Aims to Raise $470M for New Fund
Industrial real estate manager Welspun One aims to raise more than INR 40 billion ($470 million) as a new fund to support the platform’s growth strategy even as global investors are exploring financial and strategic general partnerships with the fund.
This will be among the first instances of a general-partner level alliance in the Indian private equity industry. The platform, backed by Welspun Group, is looking to double its portfolio to more than 32 million square feet (3 million square metres) by 2028 and has already identified a robust pipeline of over 8 million square feet across multiple assets in the country. Read more>>
Chinese Banks to Raise New Mortgage Rates for First Time Since 2021
Chinese banks raised new mortgage costs for the first time in three years, new data from a research firm shows, as narrowing margins are dragged down by a persistent property slump and slowdown in the world’s No.2 economy.
The average mortgage rate for buyers’ first homes in 42 big cities inched up to 3.08 percent in November from a record low of 3.05 percent in the previous month, the first increase since October 2021, according to data from Singapore-based Data Motion International Trading. Read more>>
China’s Kaisa Presenting Debt Restructuring Plan for Investor Approval
A Hong Kong court gave defaulted Chinese developer Kaisa Group approval to hold a meeting for a creditor vote on its $13 billion offshore restructuring plan, with a sanction hearing set for 21 March.
While court approval for the vote is a procedural step, clearing it is crucial for Kaisa’s efforts to gain backing for its overall debt plan. Kaisa struck a restructuring deal with a key creditor group in August, and in September said that more than 75 percent of creditors under two categories supported the plan. Read more>>
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