Blackstone Said Targeting ESR-PIMCO India Sheds and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, private equity giant Blackstone reportedly enters the highest bid for the ESR-Allianz platform of eight warehouses in India, Tokyo makes a belated splash in the ultra-luxury housing market, and Chinese developer Kaisa faces a winding-up lawsuit in Hong Kong.

Blackstone Said to Lead Bidding for 90% Stake in ESR-PIMCO India Platform

Blackstone has emerged as the highest bidder to buy a 90 percent stake in the warehousing platform of Asia-focused logistics firm ESR and PIMCO Prime Real Estate. The marquee investor has quoted INR 2,000 crore ($242.1 million) for the stake, said informed sources in the know. Blackstone has overtaken the likes of GIC and the Ontario Municipal Employees Retirement System to become the finalist to pick up the stake, the sources said.

While PIMCO, formerly known as Allianz Real Estate, is exiting its investment by selling its 50 percent stake, ESR is selling 40 percent and holding 10 percent in the platform. “They have finalised on Blackstone. The deal is expected to be signed soon,” the sources said. “The total value of assets is $450-475 million.” Read more>>

The Super Rich Are Snapping Up Tokyo’s New Ultra-Luxury Homes

The lack of uber-luxury apartments in Tokyo, a city otherwise full of indulgent shopping choices, has long baffled foreign investors. But that’s starting to change as new developments with sweeping views, swimming pools and 24-hour valets are snapped up by local and overseas buyers taking advantage of a weaker yen and low interest rates.

At The Kita, a complex designed by award-winning architect Kengo Kuma, a penthouse residence with a rooftop infinity pool was sold last week for around $50 million, according to its Vancouver-based developer, Westbank. The 507 square metre (5,457 square foot) unit has a view of the lush forest surrounding the nearby Meiji Shrine. Read more>>

Kaisa Faces Winding-Up Petition in Hong Kong Court

Chinese developer Kaisa Group said Monday that a winding-up petition has been filed against it in a Hong Kong court in relation to RMB 170 million ($23.5 million) in non-payments on onshore bonds.

Shares of the company dropped as much as 13.5 percent to HK$0.18, an all-time low. Read more>>

Singapore Property Stamp Duty Collection Dips 12%

Property stamp duty collected in Singapore’s financial year ended March 2023 fell 12 percent from the previous year, with analysts saying the figure was weighed down by lower transaction volumes amid tight housing supply.

Stamp duty collections for financial 2022, which covers the period from April 2022 to March 2023, fell to S$5.95 billion (now $4.4 billion) from financial 2021’s record-high S$6.76 billion. Read more>>

Hong Kong Mortgage Easing Is Cold Comfort to Buyers With High Rates

Hong Kong’s relaxation of residential mortgage rules may do little to spur demand from homebuyers who remain deterred by surging interest rates, according to analysts.

In the first major easing since 2009, the government on Friday increased the loan-to-value ratio for some homes, allowing buyers to snap up properties with a smaller down payment. The real estate industry has been under pressure from rising rates and a weak economy, with home prices falling 13 percent from their peak in 2021, according to the central bank. Read more>>

Singapore Home Rents Catch Up With Hong Kong’s as Fortunes Diverge

Residential rents in Hong Kong and Singapore remain close to parity after the gap shrank dramatically over the past five years, signifying the diverging fortunes of the rival Asian financial hubs, official data compiled by CBRE showed.

In 2018, before Hong Kong was hit by an unprecedented wave of social unrest, the rental gulf between the two cities was as high as 82 percent, with Hong Kong widely labelled the world’s most unaffordable housing market. Read more>>

EC World REIT to Extend Deadline for Divestment of Two China Assets

The manager of Singapore-listed EC World REIT said it has entered into a supplementary agreement to amend the terms of the divestment of its two logistics assets in China’s Zhejiang province.

This includes a deadline extension for the divestment, as well as a revision of prepayment terms, along with the divestment properties’ agreed values, the manager said Monday in a bourse filing. Read more>>

As Macau Roars Back to Life, Sands China Plots Next Stage of Reinvestment

The glory days of Macau — the former Portuguese colony widely known as the Las Vegas of Asia — appear to be back, now that the worst of the pandemic is firmly in the rear-view mirror.

Crowds have returned in droves, especially after China’s reopening in January. Gaming tables and slot machines have roared back to life, convention halls are booked out, global music acts are playing to full houses, and hotels and celebrity chef restaurants are bustling with activity. Read more>>

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