Ambani Said Planning 3GW India Data Centre and More Asia Real Estate Headlines

Billionaire tycoon Mukesh Ambani bids to build the world’s biggest data centre in India, with that story leading today’s headline roundup. Also in the news, a Hong Kong residential site attracts big-name developers and Japan’s central bank hikes rates to a 17-year high.

Ambani Said Buying Nvidia Equipment for 3GW India Data Centre

Mukesh Ambani’s Reliance Group is building what may become the world’s biggest data centre by capacity in India, the latest in a blitz of global investments to capitalise on booming demand for artificial intelligence services.

The 67-year-old billionaire is buying Nvidia’s powerful AI semiconductors and setting up a data centre in the town of Jamnagar that’s expected to have a total capacity of 3 gigawatts, according to people familiar with the matter, who asked not to be identified because the details aren’t public. That would make it far bigger than any data centre now operating. Read more>>

Hong Kong Land Sale Receives Six Bids

Six Hong Kong developers are vying for the only residential land plot that the government made available last quarter, but surveyors expect cautious bids amid economic uncertainty and high interest rates. CK Asset Holdings, Sun Hung Kai Properties, Sino Land, K&K Property Holdings and China Overseas Land & Investment were among the bidders.

The tender for the 3,580 square metre (38,535 square foot) site on Mei Tin Road in Tai Wai, Sha Tin, closed on Friday at noon. The site, which will support 360 flats, is about 15 minutes from Tai Wai MTR station on foot and is also served by a light-bus route, surveyors said. Read more>>

Bank of Japan Raises Rates to Highest in 17 Years

Japan’s central bank has increased the cost of borrowing to its highest level in 17 years after consumer price rises accelerated in December. The move by the Bank of Japan to raise its short-term policy rate to “around 0.5 percent” comes just hours after the latest economic data showed prices rose last month at the fastest pace in 16 months.

The BOJ’s last interest rate hike in July, along with a weak jobs report from the US, caught investors around the world by surprise, which triggered a stock market sell-off. Read more>>

New Singapore Industrial Regulations Threaten to Displace Self-Storage Operators

Some self-storage operators in Singapore may have to move out of their current locations when their leases run out, following a lengthy review by JTC on the use of industrial land for the self-storage business.

The affected operators are those occupying sites zoned Business 2 for heavy manufacturing activities, as well as those in some Business 1 sites in the core zones. Core areas refer to those prioritised for industrial use, including Boon Keng, Toa Payoh and Ang Mo Kio. Read more>>

Hong Kong Banks Realise Losses as Distressed Commercial Sales Jump

Distressed property sales in Hong Kong are beginning to bite banks that used to be well protected against loan losses.

The city’s commercial real estate sector is going through one of its worst slumps in history, with no end in sight. Average prices of office buildings, shopping malls and other properties have fallen more than 40 percent from their highs in 2018, eroding the value of the collateral backing many bank loans. Defaults are rising as more property owners and developers run into cash flow difficulties. Read more>>

Far East Orchard Ups Stake in Northern Singapore Commercial Complex

A unit of Far East Orchard has acquired an additional stake in its commercial property in Singapore’s Woodlands for S$25 million ($18.5 million).

Woods Square, an integrated commercial development comprising offices and retail spaces, was completed in 2020 as a joint venture of FEO’s wholly owned subsidiary Tannery, Far East Civil Engineering and Sekisui House. Read more>>

CDL Hospitality Trusts Distributions Fall 12% on Lower Revenue, Higher Interest

The managers of CDL Hospitality Trusts on Monday posted a distribution per stapled security of S$0.0281 for the second half ended December, down 11.9 percent from S$0.0319 in the previous corresponding period.

The distribution for the second half will be paid on 28 February after books closure on 6 February. Distributable income in the second half fell 10.9 percent year-on-year to S$35.4 million ($26.2 million). Read more>>

Singapore Retail Rents Edge Upward

Retail space rents in Singapore’s central region rose 0.6 percent in the fourth quarter of 2024, edging up from a 0.3 percent increase in the prior quarter.

For the whole of 2024, rents increased by 0.5 percent, slightly higher than the 0.4 percent increase in 2023, data released by the Urban Redevelopment Authority on Friday showed. This marks the second straight year of growth after central region rents nosedived in 2020 before flattening out from 2022. Read more>>

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