CPPIB JV Buys Seoul Office Building for $24M and More Asia Real Estate Headlines

Canada’s CPPIB reportedly picks up a Seoul office building for a rental housing conversion, with that deal leading today’s headline roundup. Also in the news, Singapore sovereign giant GIC exits a Delhi residential investment and a Mitsubishi Estate unit eyes a slice of Sydney’s Salesforce Tower.

CPPIB Rental Housing JV Buys Seoul Office Building for $24M

The Canada Pension Plan Investment Board and South Korean developer MGRV have jointly acquired the headquarters of a domestic women’s clothing company, marking the pension fund’s entry into the Korean rental housing market.

A joint venture between CPPIB and MGRV recently purchased the building and land parcel in central Seoul from Semi Apparel Co for KRW 35.5 billion ($24 million), according to investment banking sources on Tuesday. London-based Pacific Asset Management participated in the deal, handled by Samjong KPMG. Read more>>

GIC Sells Stake in DLF Delhi Luxury Project for $58M

Singaporean sovereign wealth fund GIC has sold its half-stake in a Delhi luxury residential project for INR 4.97 billion ($58 million), according to a statement by its partner, DLF, to the stock exchange.

The sale, which was finalised on 25 March, makes DLF the sole owner of the One Midtown project in the Karampura Industrial Area. The housing complex is mostly completed and sold, with GIC and DLF said to already be cooperating on further residential projects. Read more>>

Mitsubishi Estate Fund Unit Said Acquiring Stake in Sydney’s Salesforce Tower

Japan’s MEC Global Partners Asia is taking a slice of the A$2 billion ($1.3 billion) Salesforce Tower complex in Sydney in a key marker for premium office values as the cycle shows signs of recovery.

The firm is raising funds so that it can take up part of the 30 percent interest in the tower put up for sale last year by sister company Mitsubishi Estate Asia, which was an early backer of the development of Sydney’s tallest office skyscraper. In the transaction, MEC will take an interest in the tower of more than 10 percent, quietly raising funds in Asian markets to back the purchase. Read more>>

Hong Kong Home Prices Closing In on Decade-Low as Slide Continues

Home prices in Hong Kong’s secondary property market dropped for a third straight month in February to near the lowest in a decade amid concerns about slower cuts in interest rates and heightened tensions in global trade stoked by extra US tariffs on foreign goods.

Lived-in home prices retreated 0.9 percent in February from the preceding month to the lowest since July 2016, according to an index compiled by the Rating and Valuation Department. Prices have declined every month since January 2022 versus year-earlier levels — a cumulative drop of 27 percent, the data showed. Read more>>

Greentown China Shares Dive as Longtime Chairman Steps Down

Shares of Greentown China Holdings tumbled after the Chinese developer announced a leadership change, with its long-serving chairman stepping down amid declining sales.

Greentown plunged 11.1 percent to close at HK$10.74 ($1.40) in Hong Kong on Thursday, following a two-day trading suspension due to the management shake-up. Read more>>

Trump’s Buddies at Blackstone Urge Australians Not to Fixate on Tariffs

One of Wall Street’s most powerful investors believes markets are failing to fully grasp the golden opportunity from the technology boom that will power the US economy over the long term. Instead, they have become too fixated by Donald Trump’s wave of “tariff diplomacy”.

In an interview taking place as the US president slapped a 25 percent tariff on imported cars, Blackstone president Jon Gray said: “There’s clearly some near-term volatility. But if you go back to why as an investor you would maintain optimism, it would be because you think these things will settle in a reasonable place in the fullness of time.” Blackstone chairman Stephen Schwarzman is a longtime Trump advisor and supporter. Read more>>

Hong Kong’s Parkview Avoids Default on Beijing Mall

Hong Kong builder Parkview Group Ltd has avoided a default on a $940 million loan and is in refinancing talks with banks over the facility, which backs a Beijing shopping mall complex, according to people familiar with the matter.

The company managed to replenish a shortfall in its interest reserve account — funds set aside to service loan charges — before a 17 March deadline, according to the people, who asked not to be identified discussing private matters. The account was RMB 20 million ($2.8 million) short of the amount required to be maintained at all times after Parkview used some of the funds to partially settle an interest payment, Bloomberg reported earlier. Read more>>

Chinese Banks Ramp Up Disposals of Bad Property Loans

China’s big banks are accelerating a drive to write off soured property loans to clean up their balance sheets as they heed calls by policymakers to back the world’s second-largest economy.

Financial regulators have urged lenders including ICBC in recent months to prioritise the disposal of non-performing real estate loans, according to people familiar with the matter. Some banks have this year doubled the annual quota at their local branches to write off such debt, the people said, asking not to be identified discussing a private matter. Read more>>

Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.