Mitsubishi Estate president and CEO Atsushi Nakajima
A Mitsubishi Estate-sponsored REIT sees opportunities to profit from Tokyo’s recovering office market, with that story leading today’s look at real estate news from around the region. Also making our list are a fizzled private equity merger and a surge in Japanese mortgage-backed securities.
Mitsubishi Estate’s Japan REIT Plans Capital for Office Buys
Japan’s second-biggest REIT is weighing a plan to raise tens of billions of yen in new capital to buy office buildings in high-rent districts, signalling new interest in the nation’s reviving real estate market.
Japan Real Estate Investment Corp, sponsored by developer Mitsubishi Estate, aims to increase capital “as soon as possible” through an equity offering, the CEO of the trust’s manager told Bloomberg. He said the REIT has started scouting out office properties to buy but didn’t disclose the exact amount of the equity sale. Read more>>
Macquarie Attempt to Buy Carlyle Fizzled as US Firm’s Shares Soared
Australia’s Macquarie Group held talks to acquire Carlyle Group, a deal that would have created a new member of the $1 trillion asset manager club.
The two firms discussed a transaction that would have instantly created a global investment giant across private equity, credit, real estate and Macquarie’s legacy strength of infrastructure, people familiar with the matter said. Read more>>
Japan Housing Finance Sold $340M in RMBS at Highest Spreads in Two Years
Japan Housing Finance Agency sold JPY 50.2 billion ($340 million) of residential mortgage-backed securities at the widest spread in more than two years, according to lead manager Goldman Sachs.
The spread on the RMBS, which funds long-term fixed-rate housing loans, was set at 51 basis points, four basis points more than in August. It marked the first time the spread has returned to the 50-basis-point range since June 2023. Read more>>
Lendlease Wins Respite in Aussie Funds Battle
Lendlease’s property funds empire remains in limbo after a crucial vote on the future of its A$2 billion ($1.3 billion) industrial trust was adjourned until next week after supportive superannuation funds effectively boycotted a vote on dumping it as manager.
The meeting was called by investment heavyweight Hostplus, with the backing of fellow giant Unisuper, as they seek to dislodge Lendlease from the running of the Australian Prime Property Fund series. Read more>>
Swire Reports $510M in Sales at Shanghai Luxury Project
Swire Properties said Wednesday that it sold 79 out of 83 homes in the third tranche of a Shanghai luxury residential project on the first day of sales, generating RMB 3.6 billion ($510 million) in deals.
The company said it has now booked RMB 9.6 billion in sales for the 378-home project in Shanghai’s Lujiazui area. The sales come two years after Swire first announced the Shanghai JV with Lujiazui Group. Read more>>
New World, CK Asset Launch Project Sales in Wake of Rate Cut
New World Development and CK Asset on Thursday became the first two Hong Kong developers to announce property sales after interest rates were lowered, with analysts saying the move would boost transactions but not prices, due to elevated supply.
NWD said all 120 units at House Muse in Kowloon City would go on sale Friday. It is the first new residential project to be launched after the Hong Kong Monetary Authority cut rates for the first time this year, bringing down the cost of funding and reducing the burden on mortgage borrowers. Read more>>
Lendlease Marketing Stake in North Sydney Office Project on Local Rebound
Lendlease is looking to capitalise on the rerating of North Sydney’s office market by bringing a 75 percent stake in the A$1 billion ($660 million) Victoria Cross over-station development back to market.
The company is betting that its recent success in winning over tenants, and encouraging signs that it will pick up more technology companies and groups shifting from Sydney’s north shore, will help it land a buyer. Read more>>
Soaring Tokyo Prices Driving Homebuyers to Neighbouring Prefectures
Soaring benchmark land prices in urban areas in 2025 have prompted those who had given up on buying homes in the Tokyo metropolitan area to consider neighbouring prefectures instead.
According to the Land, Infrastructure, Transport and Tourism Ministry’s 2025 benchmark land prices, residential land prices increased by 1 percent nationwide, marking the highest growth in 34 years. This surge is particularly noticeable in major urban centres, where housing prices are also skyrocketing, and the resulting population shift is pushing up land values in the suburbs. Read more>>
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