Blackstone Buys NZ Offices from GIC, Goodman for $438M and More Asia Real Estate Headlines

New Zealand leads today’s roundup as Blackstone scoops up a set of office buildings in Auckland from a joint venture of Singaporean sovereign wealth fund GIC and a trust managed by Aussie industrial builder Goodman Group. Also in the headlines, China’s most valuable listed developer is reported to be eyeing a rare issuance of dollar-denominated floating rate bonds, and over in Singapore, the city-state’s first REIT merger could be around the corner. Vingroup’s residential arm is now Vietnam’s second-largest listed firm after a successful stock exchange offering, and WeWork is ramping things up in India while Keppel Land launches a co-working centre in Myanmar, so keep reading for all the updates.

Blackstone Buys Auckland Offices from GIC, GMT for $438M

Wynyard Precinct Holdings, a joint venture between Goodman Property Trust (GMT) and Singapore’s government-owned GIC, has sold its commercial office precinct in Auckland to US private equity firm Blackstone for NZ$635 million ($438 million), twice the property’s value when the venture was set up.

GMT’s 51 percent stake in Wynyard Precinct means its share of the sale is NZ$323.9 million. The property, known as the VXV portfolio, consists of seven low-rise buildings comprising 88,000 square metres of floor space. The sale comes three-and-a-half years after Goodman and GIC entered into the joint venture to co-invest in Auckland’s Viaduct Quarter development. Read more>>

Vanke Said Marketing USD Floating-Rate Bond

China Vanke Co, the nation’s largest listed developer by market value, may price a floating-rate bond on Thursday amid rising funding costs spurred by the rush of issuance from the sector. Vanke is marketing a five-year floating-rate note at 155 basis points over three-month Libor, according to a person familiar with the matter.

This could be the first Chinese developer to sell a dollar-denominated FRN through the public syndicated bond market, according to Bloomberg-compiled data. Vanke’s investor relationship department didn’t immediately reply to a text message seeking comments on the deal. Sales of these type of bonds by non-financial issuers are rare as borrowers are exposed to swings in interest rates with the coupon based on Libor. Read more>>

ESR-REIT and VIT Poised for First Singapore REIT Merger

ESR-Reit and Viva Industrial Trust (VIT) halted trading on Friday before the stock market opened, amid expectations of a merger announcement. In a research note on Thursday, broker OCBC Investment Research downgraded its rating on VIT from “buy” to “hold”, reducing its fair value estimate on the counter from S$0.93 to S$0.90.

Units in VIT last traded at S$0.89 per unit on Thursday, while units in ESR-Reit closed down 1.87 percent to S$0.525 apiece. If successful, the merger will be the first in the history of Singapore Reits, and analysts say VIT is unlikely to be ESR-Reit’s last target. Read more>>

Vinhomes Market Cap Hits $13B on HCMC Stock Exchange

Vinhomes listed on Vietnam’s main stock exchange Thursday and immediately jumped to second place in value, reflecting the prospects for the affordable housing market in one of Southeast Asia’s fastest-growing economies.

With strong investor appetite, Vinhomes’ market capitalization hit 296 trillion dong ($13 billion) on the Ho Chi Minh City Stock Exchange, making it the second-most valuable listed Vietnamese company after its own parent, Vingroup, at 324 trillion dong. Vietnam Dairy Products (Vinamilk) follows at 239 trillion dong. Read more>>

WeWork Launches Two Spaces in Mumbai, Bengaluru

Co-working giant WeWork has launched two additional collaborative spaces in Mumbai and Bengaluru. With this launch, WeWork’s presence now expands to eight locations in India.

WeWork Vikhroli, located in Mumbai suburbs is spread across the top three floors of a 14-storey building of 247 Business Park in the western suburb. It accommodates a total of over 1,300 members. WeWork Hebbal in Bengaluru has over 890 desks spread over three floors of a glass façade building. Read more>>

Keppel Opens 1,800 SQM Co-Working Space in Yangon

KLOUD Junction City Tower is an ultra chic serviced co-office centre in the heart of downtown Yangon that leverages the latest technology and caters to companies looking for flexible space solutions while also providing a contemporary, home-like environment. The swanky 1,800 square-meter office recently opened in Junction City Tower, an office building developed by Keppel Land and Myanmar conglomerate Shwe Taung Group.

Combining the benefits of serviced offices and co-working spaces, KLOUD Junction City Tower offers 274 workstations and is targeted at corporates, start-up companies as well as entrepreneurs. The centre offers panoramic views of the city’s historical downtown, Yangon River, Bogyoke Market, Holy Trinity Anglican Church and Shwedagon Pagoda, and is managed by Singapore’s Keppel Land. Read more>>

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