The Embassy Quadron office complex in Pune, Maharashtra
In today’s roundup of regional news headlines, private equity titan Blackstone is reportedly set to offload up to a $400 million stake in India’s first publicly listed REIT, Singapore’s Stamford Land sells an upscale hotel in downtown Sydney, and banking giant CCB readies a fund to buy properties from Chinese developers.
Blackstone to Sell $400M Stake in Embassy Office Parks REIT: Report
Blackstone will sell a stake worth up to $400 million in Embassy Office Parks REIT, India’s biggest real estate investment trust, via stock exchange block deals, three sources familiar with the matter told Reuters.
Abu Dhabi’s sovereign wealth fund, one of the world’s largest, is likely to pick up at least half of the stake that Blackstone is to sell, one of the sources said. Read more>>
Stamford Land Confirms Sale of Sydney Hotel for $136M
Stamford Land Corporation on Friday confirmed the sale of its upscale hotel in Sydney’s central business district to JDH Capital, a private principal investment company, for A$210.5 million ($136.8 million).
The Singapore-listed company said it entered into a valid binding agreement for the sale and purchase of Sir Stamford at Circular Quay, its 10-storey freehold property located at 93-97 Macquarie Street. Read more>>
China Construction Bank to Set Up $4.2B Fund to Buy Properties
China Construction Bank Corp will set up a RMB 30 billion ($4.2 billion) fund to buy properties from developers, as policymakers beef up efforts to contain a real estate crisis that’s weighing on the economy.
The fund will “invest in existing assets” of real estate companies and renovate the properties into rental housing, the lender said Friday in a statement to the Shanghai Stock Exchange. The fund lasts for 10 years, with a possible extension, according to CCB, which is one of China’s big four state-owned lenders. Read more>>
CIFI, Longfor, 3 Other Developers Bag $873M Via State-Backed Bonds
CIFI Holdings Group, Longfor Properties and three other private Chinese real estate developers have issued RMB 6.2 billion ($873 million) worth of bonds in the past month that have been granted “full, unconditional and irrevocable” guarantees by a state-owned credit enhancement body, Yicai Global learned from an industry source.
CIFI secured RMB 1.2 billion through the issuance of three-year bills on 21 September at a coupon rate of 3.22 percent, the lowest rate that the Shanghai-based homebuilder has ever sold on the open market. Read more>>
In China, Homebuyers Occupy Their ‘Rotting’, Unfinished Properties
For six months, home for Ms Xu has been a room in a high-rise apartment in the southern Chinese city of Guilin that she bought three years ago, attracted by brochures touting its riverfront views and the city’s clean air.
Her living conditions, however, are far from those promised: unpainted walls, holes where electric sockets should be and no gas or running water. Every day she climbs up and down several flights of stairs carrying heavy water bottles filled from a hose outside. Read more>>
China Has $500B in Bailout Ammunition for Property Mess: CLSA
China has enough ammunition to salvage its beleaguered property sector, as total bailout funds could reach RMB 3.57 trillion ($500 billion) with central government support, according to CLSA.
That’s far more than the RMB 700 billion to 800 billion funding gap for stalled projects, based on S&P Global estimates. At worst, this number could reach as much as RMB 2 trillion, the company said. Read more>>
Macau Advised to Boost Economy Through Integration With Mainland
The return of mainland Chinese tour groups to Macau in November will inject much-needed cash into its struggling tourism-dependent economy, but the casino hub should also seek to integrate with neighbouring cities to diversify sources of growth, observers have said.
Hong Kong’s long-awaited end to hotel quarantine on Monday has raised questions over whether its neighbour will follow suit and also ease restrictions aimed at keeping COVID-19 out. But Macau Chief Executive Ho Iat-seng on Saturday said the city had no plans to relax travel curbs for international arrivals, who must undergo seven days of hotel quarantine followed by three days of health monitoring. Read more>>
Hyatt Partners With Kiraku to Develop Hotels Built Around Hot Springs
Hyatt Hotels Corp and Japanese operator Kiraku have signed a 50:50 joint venture to develop ryokan-style hotels in Japan.
The brand, Atona, will target domestic Japanese travellers and international spa aficionados with Japanese hospitality enhanced by local culture, art and experiences. The centre of a ryokan is an onsen, or hot spring bath, which is popular among the Japanese. Read more>>
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