New World chairman Henry Cheng is negotiating with airport officials (Image: New World Development)
New World Development leads this Monday collection of headlines from around the region, as the embattled builder seeks relief from rent guarantees at its Hong Kong airport mall. Also in the news, Singapore’s Metro Holdings says no deal has been finalised with respect to Boustead’s proposed REIT and Aussie giant Macquarie closes on $3 billion for a green energy fund.
New World Bargains for Rent Cut on Hong Kong’s 11 Skies Mall
New World Development is in talks with Hong Kong’s Airport Authority about reducing rental obligations at its flagship 11 Skies mall, according to people familiar with the matter, as the debt-laden Hong Kong builder seeks to ease a liquidity crunch that’s pushed it to the brink.
New World is seeking approval to waive at least part of the requirement that it pay a guaranteed rent, though the developer will still give a share of the mall-and-office complex’s annual revenue to the Airport Authority, the people said, asking not to be identified discussing private deliberations. Read more>>
Singapore’s Metro Says No Deal Finalised With UI Boustead REIT
Property investor and developer Metro Holdings, which has an indirect stake in a Boustead private real estate fund, said it has not made any decision nor entered into any agreement with respect to the proposed transactions behind Boustead Singapore’s Thursday announcement.
The announcement concerned the valuation of Boustead Singapore’s proposed listing of UI Boustead REIT, which has an estimated portfolio value of S$1.9 billion ($1.5 billion). Read more>>
Macquarie Reaches $3B First Close on Green Energy Fund
Macquarie Asset Management on Friday announced the final close of Macquarie Green Energy Transition Solutions with over $3 billion in total fund and co-investment commitments.
MGETS is Macquarie’s first dedicated energy transition fund that targets opportunities beyond mature renewables. MGETS is focused on investing in companies that leverage proven technologies and infrastructure to provide the solutions to decarbonising energy sectors across the economy. The fund’s target subsectors include energy storage, distributed energy, renewable fuels, clean transport, carbon capture and circular economy. Read more>>
Mori Building to Invest Additional $67M in Mori Hills REIT Units
The manager of Mori Hills REIT announced late last week that its sponsor, Mori Building Co, is investing up to JPY 10 billion ($67 million) to purchase additional units in the Tokyo-listed trust.
In a statement to the Tokyo Stock Exchange, Mori Hills REIT Investment Corporation said the equity investment by Mori Building “further clarifies Mori Building’s supportive attitude towards MHR”, indicating that the developer is expected to provide continued support for the medium- to long-term growth of Mori Hills REIT. Read more>>
Bank of Japan Holds Rates Steady, Will Reduce ETF, REIT Holdings
The Bank of Japan says it will keep its benchmark interest rate unchanged at around half a percent and start sales of billions of dollars in financial assets.
The decision means that the BOJ has kept rates on hold for five straight meetings. It last raised rates in January this year, though it has indicated openness to more hikes based on economic conditions. The central bank also announced plans to start sales of exchange-traded funds and Japan REITs. Read more>>
Tender for Residential Site in Hong Kong’s Tsuen Wan Area to Close on Friday
A residential site worth up to over HK$2 billion ($260 million) in Hong Kong’s Tsuen Wan area will be put up for tender on Friday, the Lands Department said. The site, Tsuen Wan Town Lot No 441 at the junction of Wing Shun Street and Texaco Road, has a site area of 6,515 square metres (70,127 square feet) and can provide up to 40,393 square feet in gross floor area.
The plot is designated for non-industrial purposes, excluding godown, hotel and petrol filling station. Market valuation for the site ranges from HK$1.22 billion to HK$2.17 billion, or HK$2,800 to HK$5,000 per square foot of gross floor area. Read more>>
Korea’s NPS Notches 11% Return on Road to Another Record Year
The National Pension Service, South Korea’s state-run pension fund and the country’s largest institutional investor, is set to book a third straight banner year, with returns topping 11 percent through September on the back of a stock market rally, according to investment banking sources on Friday.
The return is nearly 2 percentage points higher than in the same period last year. In 2024, NPS posted an all-time-high 15 percent return from its investment activities, largely buoyed by a US stock rally and gains from alternative investments, following the previous record high of 13.59 percent in 2023. Read more>>
Lendlease Aims to Double Singapore Investments
Lendlease, which this week faces another fight to retain control of a A$2 billion ($1.3 billion) industrial fund, has its sights set on growth in Singapore, where it plans to double its A$12 billion asset base over the next five years.
The ASX-listed company, which began its first construction project in Singapore in 1973 — just eight years after the former British colony gained independence — is now planning to develop new assets in recovering retail and office markets, said chief executive Tony Lombardo. Read more>>
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