GIC Named Lead Bidder for Set of 3 Korean Hotels and More Asia Real Estate Headlines

Singapore sovereign giant GIC emerges as the preferred bidder for a set of three South Korea hotels, with that story leading today’s headline roundup. Also making the list, Canadian pension manager AIMCO closes its Lion City office and GuocoLand wins a development site in the city-state’s upmarket District 9.

GIC Selected as Lead Bidder for Korean Hotel Group

Singapore sovereign fund GIC has been given priority rights to buy three South Korea hotels valued at more than KRW 600 billion ($413 million) from DL Group, a conglomerate seeking to exit the accommodation sector.

According to investment banking industry sources on Tuesday, DL Group picked GIC as the preferred bidder to take over the three hotels operated by hospitality subsidiary Glad Hotels & Resorts Co. Read more>>

Alberta’s AIMCO Shuttering Singapore Office After Less Than Two Years

Alberta Investment Management Corp has decided to shutter its new offices in Singapore and New York as it retrenches from its global expansion plan.

The Canadian pension manager also parted ways with David Scudellari, its global head of private assets, and Kevin Bong, the executive who ran the Singapore office, a spokesperson confirmed. Peter Teti has been tapped as interim head of private assets. It’s a major reversal for the C$169 billion ($118 billion) money manager, which opened the Singapore office in 2023 and the New York location just last year. Read more>>

GuocoLand Awarded River Valley Green Site in Singapore

GuocoLand has been awarded the land parcel at River Valley Green (Parcel B) by the Urban Redevelopment Authority of Singapore at the bid price of $627.84 million, the highest among a total of five bidders when the tender closed on 7 February.

The 99-year leasehold site is in District 9’s Robertson Quay, next to Great World MRT station on the Thomson-East Coast Line, and has a gross plot ratio of 3.5. The plot’s land area of 11,736 square metres (126,325 square feet) and maximum gross floor area of 442,142 square feet translate to $1,420 per square foot of built area. Read more>>

Alibaba Launches Second Thailand Data Centre

Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, on Thursday announced the launch of its second data centre in Thailand. The addition aims to increase local capacity in response to rising demand for cloud computing services, particularly in supporting generative AI applications, while supporting the government’s initiatives for fostering digital innovation and sustainable technology development.

Following the inauguration of the new data centre, Alibaba Cloud now operates 86 availability zones across 28 regions globally. Alibaba Cloud launched its first Thai data centre in 2022. Read more>>

Hong Kong Office Rents Seen Sliding to 2012 Levels

Office rents in Hong Kong are projected to slip to levels last seen in 2012, a scenario that would erode the value of commercial properties owned by the city’s biggest landlords and force weak owners to sell their assets at deep discounts, according to S&P Global Ratings.

Prime office rents could slide by as much as 10 percent this year, the rating company said in a report released Thursday, doubling its previous forecast for a 5 percent drop. Fresh supply of office space from newly completed projects will intensify pressure on asset owners in a tenant’s market, S&P said. Read more>>

Chinese Developer Stock Rally Fades After Vanke Support Bump

Chinese developers struggled to extend a rally in credit and share markets Thursday, underscoring investor desire for more government steps to help the property sector.

A Bloomberg index tracking Chinese builder shares fell as much as 3.3 percent. That was a reversal after an 8.6 percent jump Wednesday, the biggest in four months, which was sparked by news that authorities were working on a proposal to help government-backed China Vanke plug a funding gap of RMB 50 billion ($6.8 billion) this year. Read more>>

Australia’s Mirvac Ekes Out Profit as Valuations Stabilise

Mirvac eked out a A$1 million ($630,000) net profit for the six months to December as the impact of devaluations on the company’s investment assets softened from a year earlier, lifting the developer and landlord out of a statutory loss.

Devaluation losses that eased to A$139 million from A$396 million in the prior comparative period allowed Mirvac to recover from a A$201 million net loss after tax, as the company on Friday said it had achieved a “solid” result. Read more>>

Developer Greentown China to Buy Back $741M in Bonds

Greentown China will buy back $741 million of outstanding bonds and is also planning to issue dollar-denominated notes, both as part of a debt refinancing plan, the real estate company said Thursday.

The Hangzhou-based developer will buy back $446.5 million worth of its 4.7 percent senior notes and $294.5 million in 5.65 percent senior notes, both due in 2025, it said. Greentown also said it plans to issue dollar-denominated senior notes, though the amount and other terms are yet to be finalised. Read more>>

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