K Raheja’s Mindspace at Madhapur in Hyderabad
In today’s roundup of regional news headlines, private equity titan Blackstone sells out of its stake in an Indian office REIT, troubled China Evergrande settles into a new headquarters in a familiar city, and a Korean construction group ploughs cash into redeveloping the Millennium Hilton Seoul hotel.
Blackstone Sells Stake in Mindspace REIT to ADIA for $235M
Blackstone on Monday sold its entire 9.2 percent stake in India-listed Mindspace REIT to the Abu Dhabi Investment Authority for $235 million, according to two people familiar with the development.
The US private equity giant, the biggest owner of commercial office space in India, sold the stake at INR 320 ($4.33) per unit, which is a 16 percent premium to the August 2020 price of INR 275 per unit during Mindspace’s public listing. Read more>>
Evergrande Leases Out Shenzhen HQ, Shifts Back to Guangzhou
Heavily indebted developer China Evergrande has moved its headquarters from Shenzhen to its own property in Guangzhou in an attempt to save costs as it battles a financial crisis.
The company’s logo on the building where it was previously housed was seen being taken down on Monday. Read more>>
China’s Shimao Says No Sale of People’s Square Tower Yet
Shares of Chinese property developer Shimao Group Holdings fell 5 percent in early Asian trading on Tuesday after it denied a media report that it had entered into a preliminary agreement to sell a 60-storey skyscraper next to Shanghai’s People Square.
While the company denied the sale of Shimao International Plaza, the developer said in a filing that it is in talks with some potential buyers and may consider disposing of some properties in order to reduce its indebtedness. Read more>>
Hyundai E&C to Invest $343M in Hilton Seoul Redevelopment
Hyundai Engineering & Construction, a construction giant under Hyundai Motor Company, will invest KRW 409.9 billion ($342.7 million) in redeveloping Millennium Hilton Seoul, according to local media.
IGIS Asset Management, the largest real estate investment firm in South Korea, signed a memorandum of understanding to buy the hotel from Singapore-listed City Developments Ltd for KRW 1.1 trillion in October 2021 and signed the final contract in December. Read more>>
UBS Predicts 5% Drop in Hong Kong Second-Hand Home Prices
UBS predicts a 5 percent drop in Hong Kong’s lived-in home prices, becoming the second investment bank to forecast a decrease in the world’s most expensive property market after Morgan Stanley.
A mass emigration wave, the slowdown in mainland China’s economic growth, an exit of capital because of tightened mainland regulations and an imminent interest-rate rise in the US will all contribute to the drop, said John Lam, head of the China and Hong Kong property team at UBS Research. Read more>>
ESR-REIT Sells Singapore Property to Tat Seng Packaging for $8.9M
ESR-REIT trustee RBC Investor Services Trust Singapore has entered into an agreement with Tat Seng Packaging Group to divest an industrial building at 28 Senoko Drive for S$12 million ($8.9 million).
The price tag represents an 8.4 percent discount to the property’s fair value of S$13.1 million, ESR-REIT’s manager said Monday. The industrial building was acquired in 2007 at S$12 million. Read more>>
Korean REIT Assets Surpassed $58B in 2021
The combined total assets of REITs in South Korea surpassed KRW 70 trillion ($58.4 billion) as of the end of 2021, 20 years after the country introduced the real estate investment system. Among 316 REITs managed in Korea, 18 are trading on the main bourse as of January 2022.
The market capitalisation of South Korean public REITs soared from KRW 198.1 billion at the end of 2016 to more than KRW 7 trillion at the end of 2021. Read more>>
Singapore Condo Resale Prices Surged 10.3% in 2021
Prices of resale condominium units in Singapore climbed 10.3 percent last year, underscoring the hot property market that triggered new cooling measures in mid-December.
Resale prices rose in December by 1 percent, marking the 17th consecutive month of growth, according to flash figures by 99.co and SRX Property released Tuesday. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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