Brookfield added to its India portfolio by acquiring space in Mumbai’s Banda Kurla complex this year
Indian office REITs lead today’s real estate news from around Asia as Brookfield Asset Management gets ready to list its first real estate trust on the subcontinent, as Blackstone celebrates the success of its second such offering.
Also in the headlines, Singapore’s sovereign wealth fund reports its worst performance since the global financial crisis and Hong Kong’s retail rents continue to slide.
Brookfield Prepares for $500M-$700M India Office REIT
Canadian alternative investment major Brookfield Asset Management is planning to raise $500 million to $700 million by listing a real estate investment trust (REIT) in India by the end of current financial year, said two persons with direct knowledge of the development.
“The process for monetizing Indian assets through REIT listing by roping in investment bankers has already started. The proposed REIT is expected to be listed by March end,” said one of the persons mentioned above. At $700 million, this would be India’s largest REIT issue so far. Read more>>
Blackstone’s Mindspace Office REIT 38% Subscribed on First Day
The initial public offer (IPO) of Mindspace Business Parks REIT witnessed a healthy subscription of 38% on the first day of the offering, data from stock exchanges show.
Mindspace Business Parks REIT has set a price band of ₹274-275 per share and the IPO closes on 29 July. The portion of shares reserved for institutional investors was subscribed 37%, while shares reserved for other investors was subscribed 39%. Read more>>
Singapore’s GIC Reports Worst Returns Since 2009
The long-term returns of Singapore sovereign wealth fund GIC have dropped within a whisker of a record low struck during the financial crisis, and its chief executive cautioned on Tuesday that the coronavirus pandemic would weigh on performance.
GIC, which ranks as the world’s sixth-biggest sovereign investor with $440 billion in assets, according to the Sovereign Wealth Fund Institute, joined smaller state investor Temasek Holdings in offering a bleak outlook. Read more>>
Hong Kong Retail Landlords Slash Rents
Street shop landlords in core business areas are slashing asking rents amid unprecedented social distancing measures, with the asking rent for a street shop in Causeway Bay plunging by about 80 percent from its peak in 2016.
The asking rent of a 1,130-sq-ft street shop on 482 Hennessy Road in Causeway Bay is currently about HK$120,000 per month, or HK$106 per sq ft, according to Centaline Commercial (Hong Kong). In comparison, its asking rent hit HK$600,000 per month four years ago. Read more>>
Investors Not Impressed by Korea’s First Overseas REIT
The initial public offering of JR Global REIT, set to be South Korea’s first listed REIT backed by overseas property, was undersubscribed 0.23 times by individual investors in the book building process between July 22 and 24, according to lead managers, reflecting tepid interest in stable income assets.
The real estate investment trust (REIT) backed by the Finance Tower in Brussels planned to raise 485 billion won ($403 million) in a public offering, targeting an annual dividend yield of 8%. It will get listed on the Korea Stock Exchange in early August. Read more>>
Wheelock Sells $8.1M Home at Kowloon East Project
Wheelock Properties sold the most expensive flat at its Koko Hills project in Hong Kong’s Lam Tin neighbourhood through a bidding process on Sunday. The flat was offered separately from a batch of 34 units available for sale on the day. Of these, only one found a buyer.
The 2,024 sq ft flat was sold for HK$62.74 million (US$8.1 million), and its sale suggests that strong buying interest for high-priced residential units remains intact in the world’s priciest residential property market despite a resurgence in coronavirus cases. Read more>>
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