Banks Agree to $11.1B New World Refinancing and More Asia Real Estate Headlines

Hong Kong’s New World Development clinches a deal to refinance $11.1 billion in maturing debt, with that story leading today’s headline roundup. Also making the list, a Singaporean JV wins approval for a Sydney build-to-rent project and South Korea readies cooling measures for its housing market.

New World Wins Bank Commitments to $11.1B Refinancing Package

Distressed Hong Kong builder New World Development has secured written commitments from all banks for a HK$87.5 billion ($11.1 billion) loan refinancing, people familiar with the matter said, bringing the company closer to finalising the critical lifeline just days before a deadline.

The deal is all but done, with only procedural steps left for lenders to sign the loan documents, which should happen shortly, according to the people. It brings relief just as investors had been closely watching debt deadlines including interest totalling $9.2 million due Friday and Monday on three local-currency bonds. Read more>>

Singapore’s TE Capital, Roxy-Pacific Win Approval for Sydney BTR Project

Singapore fund manager TE Capital Partners said Thursday that it has secured concept development approval for a Sydney rental residential project, together with its partner Roxy-Pacific Holdings.

The approval moves the joint venture a step closer to developing 332 rental homes above a five-storey commercial podium on the project site at 33 Argyle Street in Sydney’s Parramatta area. Encompassing 30,311 square metres (326,265 square feet) of gross floor area, the development designates 24,576 square metres for residential use and 5,735 square metres for office and retail space. Read more>>

South Korea to Implement Market Restrictions as Home Prices Jump

South Korea plans to announce measures to stabilise spiraling house prices early next month, including tightening lending and tax regulations for overheated areas around Seoul, Yonhap News reported Thursday, citing unnamed sources.

Apartment prices in Greater Seoul have soared for 21 straight weeks and posted their biggest increase in nearly seven years. The overheating housing market has been a concern for the central bank, and governor Rhee Chang-yong said this month that cutting interest rates too quickly might spur a rebound in household debt. Read more>>

Cindat JV Sells Chicago Office Project at 85% Markdown

A New York real estate investor known for buying distressed malls has purchased one of Chicago’s tallest skyscrapers for about 85 percent less than it traded for more than a decade ago — one of the biggest losses of value ever for a downtown office building.

A venture of Great Neck, New York-based Kohan Retail Investment Group paid close to $45 million last week for the 65-storey office tower at 311 South Wacker Drive, according to sources familiar with the deal. The sale price for the 1.3 million square foot (120,774 square metre) building is a staggering discount from the $302 million it traded for in 2014 to an affiliate of Chicago-based Zeller Realty Group and Chinese investor Cindat Capital Management. Read more>>

Mitsui Fudosan Plans Tokyo Chip Development Hub

Mitsui Fudosan will establish a semiconductor-focused industrial development hub in Tokyo as soon as autumn, Nikkei has learned, bringing together companies and research organisations in the sector to help foster new businesses and develop talent.

The company plans to enlist 200 to 300 organisations as members in its new group within a few years. Mitsui Fudosan aims to create a new growth field by moving beyond its role as a real estate company to become an industrial developer that can lead in bringing together industry, government and academia. Read more>>

Mirvac Raises $229M for Australia Office Fund

Property group Mirvac has shown that Australia’s office sector is recovering with its flagship wholesale fund in the sector raising A$350 million ($229 million) from investors, giving it the firepower to expand as more buildings come to market.

Mirvac Wholesale Office Fund, which the company won control of three years ago when its investors backed its bid to take it on as the then A$7.7 billion vehicle came out of the AMP Capital empire, has tapped them for the fresh capital. The vehicle has interests in 11 prime-grade assets across Sydney and Melbourne, including stakes in 33 Alfred Street and Quay Quarter Tower in Sydney. Read more>>

Singapore’s Far East Organization Launches Luxury Condo Project

Far East Organization will be opening its Amber House project in the East Coast for sale Saturday, with prices starting from S$1.92 million ($1.5 million).

Located along Amber Gardens in District 15, the freehold residential development comprises 105 units in a 16-storey tower. Two-bedroom units of 635 to 753 square feet (59 to 70 square metres) are priced from S$3,020 per square foot. Read more>>

Changes to Vietnam Legal Code Could Spare Life of Van Thinh Phat Mastermind

Vietnam has lifted the death penalty for eight crimes in legal reforms that may spare the life of a real estate tycoon imprisoned in the country’s largest financial fraud case.

The legal reforms in Vietnam ended the death penalty for eight crimes, including trying to overthrow the government, damaging state infrastructure, making and selling fake medicine, starting wars, spying, drug trafficking, embezzlement and taking bribes. Truong My Lan, sentenced to death for her involvement in Vietnam’s largest financial fraud case, will be eligible to have her sentence reduced after the reforms, her lawyer said Thursday. Read more>>

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