New World chairman Henry Cheng is hoping to turn around another big loss (Image: New World Development)
More bad news for Hong Kong’s New World Development leads today’s look at real estate happenings from around the region, as the builder reports steeper losses, despite asset sales. Also making the list are a potential office mega-deal in Seoul and the upcoming IPO of WeWork India.
New World Loss Deepens to $2.1B on Impairment Provisions
New World Development posted a second straight year of losses as debt pressures and a weak property market took a toll on the distressed Hong Kong builder.
The developer controlled by the billionaire Cheng family lost HK$16.3 billion ($2.1 billion) from continuing operations in the year ended 30 June, mainly due to one-time impairment provisions and losses, according to a Friday filing with the Hong Kong stock exchange. That’s steeper than the HK$11.8 billion loss a year earlier. Read more>>
Deal Struck to Sell Seoul Office Block for $1.3B
Korea Investment Real Asset Management is set to acquire the Pangyo Tech One Tower south of Seoul in what would be South Korea’s biggest deal of the year in commercial offices. After being selected as the preferred negotiator in July, KIR recently completed due diligence and finalised the acquisition price and financing structure.
According to investment banking sources, KIR recently completed due diligence on the tower buy. The sale price, including building and land, was confirmed at KRW 1.982 trillion ($1.3 billion). The final transaction amount, including acquisition tax and incidental expenses, is expected to be KRW 2.21 trillion. KIR will include the asset in the newly established The First No.1 REIT. Read more>>
WeWork India to Launch $338M IPO This Week
Flexible workspace pioneer WeWork India Management, which leads the segment in terms of revenue, is set to launch its initial public offering in the first week of October, planning to garner INR 30 billion ($338 million) from the share sale. The company got final regulatory approval in July.
Recently, co-working space providers Smartworks, Awfis, IndiQube and DevX listed and received an overwhelming response from investors. WeWork India has also garnered strong investor interest during its roadshows, according to market sources. Read more>>
Stonepeak Aims to Raise Up to $4B for APAC Infrastructure Fund
US-based investor Stonepeak is seeking to raise as much as $4 billion for its second Asia-focused infrastructure fund, a source with direct knowledge of the plan said, as investors seeking lucrative long-term returns drive a wave of new investments in the region.
Stonepeak expects to reach $1 billion, or a quarter of its target, by the end of this month, four months after the fund’s launch in May, according to the source, who declined to be named discussing private details. Read more>>
India’s Panschil Acquires Capgemini Thane Office Park for $62M
Prime Lohegaon Infraspaces, a unit of Pune-based Panchshil Realty, has acquired Capgemini’s Knowledge Park in Thane for INR 5.5 billion ($62 million), according to documents accessed by real estate data analytics firm CRE Matrix.
The transaction, registered on 17 September, involves the transfer of 15.4 acres (6.2 hectares) of land comprising five buildings at the office park in the Thane Creek Industrial Area. Read more>>
Digital Edge and Hulic Open Central Tokyo Data Centre
Singapore-based Digital Edge and Japanese builder Hulic have launched their carrier-neutral data centre in central Tokyo.
TYO7 lies 1 kilometre (0.6 miles) from Japan’s central network hub at Otemachi and less than 300 metres from Digital Edge’s existing TYO2. The facility is Digital Edge’s seventh data centre in Tokyo and ninth in Japan. Read more>>
Mitsubishi Estate Breaks Ground on $1.1B London Project
Mitsubishi Estate held a groundbreaking ceremony on Thursday for a large office complex to be built along the River Thames in London. The complex, named 72 Upper Ground, is scheduled to be completed in 2029 at a total cost of JPY 160 billion ($1.1 billion), making it the company’s largest-ever development project in Europe.
With a total floor space of 91,200 square metres (981,669 square feet), the complex will be on the former site of a building used as the headquarters and studio of British commercial broadcaster ITV. The south building will have 25 floors above ground, the north building will have 14 floors, the connecting section will have six floors, and there will be two floors underground. Read more>>
Swire Chairman Guy Bradley Buys Stanley Home for $6.4M
Swire Pacific chairman Guy Bradley bought a luxury property in the Southern district of Hong Kong for HK$50 million ($6.4 million), as affluent investors continue to show confidence in the city’s home market.
The low-density luxury apartment with a saleable area of 2,832 square feet (263 square metres), located at 10A-10B Stanley Beach Road, was sold to Bradley at HK$17,655 per square foot, according to Midland Realty. Read more>>
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