Blackstone’s Stephen Schwarzman may be facing tougher times with Hong Kong’s public sector (Getty Images)
Geopolitics leads today’s roundup of real estate news from around the region as Hong Kong’s horse racing monopoly starts to sell down its US private equity bets, according to a Bloomberg report. Also in the news, Singapore’s Frasers Property is closing in on the sale of a Brisbane apartment project and Starbucks’ China business is available if you have an extra $10 billion on hand.
Hong Kong Jockey Club to Unload $1B in Investments with US Funds
The Hong Kong Jockey Club is divesting as much as $1 billion in funds held with Blackstone Inc. and other buyout firms, offloading US assets amid escalating trade tensions that have intensified since Donald Trump’s presidency.
The jockey club, which operates the finance hub’s horse racing monopoly and is one of the city’s biggest asset allocators, is selling mostly US assets held with firms that also include TA Associates Management LP, Warburg Pincus, and Clayton Dubilier & Rice, according to people familiar with the matter, who requested not to be named because the information is private. Read more>>
Frasers Said Near $196M Sale of Brisbane BTR Project
Australia’s Aware Super is stepping up in the build-to-rent market and is close to a deal to buy the Brunswick & Co complex in Brisbane for around the A$300 million ($196 million) mark. The asset is being sold by Singaporean property developer Frasers which is undertaking the project under a pilot scheme supported by the Queensland government.
The Frasers transaction will mark one of the first whole-of-building sales, whereas many other developers have tried to pre-sell their projects at a much earlier stage. The Singapore-backed Frasers Property Australia put the project on the market in March. Read more>>
Starbucks China Said to Attract Offers of Up to $10B
Starbucks China has attracted offers for a potential stake sale, valuing the coffee chain at up to $10 billion, three people familiar with the deal process told CNBC. Almost 30 domestic and foreign private equity firms in China have submitted non-binding offers, the sources said, adding that proposals on the table value the business between $5 billion and $10 billion, with bidding expected to settle toward the higher end of that range.
As Starbucks’ market cap hovers around $108 billion with its China business generating over 8 percent of global revenue, a fair valuation would stand at around $9 billion, according to one person familiar with the matter. Starbucks is in the process of evaluating the offers, deal structure proposals and post-sale value creation pitches from bidders, according to people familiar with the matter, before shortlisting potential buyers. Read more>>
WeWork Reports Higher Occupancy in Singapore
A year after emerging from bankruptcy, US co-working operator Wework is optimistic that it is in fit shape, now that it has eliminated debt and secured new tenants.
In the first quarter, WeWork recorded a 23 percent increase in desks sold across its 12 locations in Singapore, compared to Q1 2024. Occupancy stood at 77 percent in June. At its flagship property at 21 Collyer Quay – where it leases the entire 21-floor building – it recently signed on life-sciences giant Bayer for 5,000 sq ft of space across half a floor. Read more>>
Hong Kong Commercial Property Values Could Drop Another 10% This Year
Hong Kong is facing a commercial real estate crisis, with small and medium-sized developers as well as banks under increasing pressure as capital values slide amid lethargic leasing activity, according to JLL.
The capital value of commercial property was set to drop by “a further 5 to 10 percent” this year, said Joseph Tsang, chairman of the property consultancy in Hong Kong. Selling commercial properties at such prices is not “practical or realistic”, he added. Read more>>
Hong Kong Policy Changes Spur Sales of Cheaper Homes
Hong Kong’s residential property market recovery is gaining traction, with transactions of lower-priced homes rising sharply on the back of improved sentiment and recent government tax relief measures.
From March to May, 3,780 residential properties priced between HK$3 million ($382,000) and HK$4 million were sold, a 73 percent increase from the same period last year, according to data disclosed by the government on Wednesday. Read more>>
GuocoLand Secures Green Loan for Singapore Residential Project
GuocoLand has secured a S$619.3 million ($484 million) green club facility on Tuesday to finance the acquisition and development of its upcoming River Valley Green (Parcel B) project – a high-end residential development located in Singapore’s prime District 9.
The green loan was jointly provided by UOB, Bank of China’s Singapore branch and OCBC under GuocoLand’s green finance framework. Read more>>
Surge in South Korea Household Lending Could Keep Rates Elevated
South Korea’s household lending surged in June at the fastest pace in 10 months, driven by a hot property market in Seoul that’s complicating the central bank’s efforts to support the economy with looser policy.
The value of loans rose by $4.5 billion in June from a month earlier in the biggest increase since August 2024, according to Bank of Korea data on Wednesday. Housing loans posted the sharpest gains in nine months. Read more>>
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