CapitaLand Ascott Trust Selling Tianjin Apartments and More Asia Real Estate Headlines

CapitaLand leads today’s roundup of real estate news from around the region as the Singapore giant’s primary residential REIT issues a tight-lipped disclosure on the sale of a Tianjin apartment complex. Also making the list today is an activist battle with Japanese developer Tokyo Tatemono and a US data centre player opening a Tokyo facility.

CapitaLand Ascott Trust Selling Tianjin Somerset Apartments 

CapitaLand Ascott Trust announced on Tuesday that it has agreed to sell a serviced apartment property in Tianjin to an unnamed third party without disclosing a price.

The Singapore-listed REIT said it is selling Somerset Olympic Tower Tianjin, a 185-unit serviced apartment property at a price above book value, with more details to be disclosed upon completion of the transaction. Read more>>

Tokyo Tatemono Under Pressure From UK Activist Investor to Sell Real Estate Assets

UK activist investor Palliser Capital is urging Tokyo Tatemono to sell off certain holdings and enhance governance, arguing these changes could help the Japanese real estate company’s share price climb by at least 65 percent.

The company, which develops, sells and manages buildings, currently trades at a “45 percent discount to its net asset value,” Palliser’s founder and Chief Investment Officer James Smith said at the 13D Monitor Active Passive Investment Summit in New York. Read more>>

Data Centre Operator Stack Infrastructure Opens Tokyo Facility

US data centre developer and operator Stack Infrastructure on Tuesday announced the completion of the first facility on its 36MW flagship Tokyo campus.

Developed in partnership with IPI Partners and Oaktree Capital Management, the facility in Greater Tokyo’s Inzai district represents the first 18MW  in the TKY01 campus. Read more>>

Korean Pension Funds, Insurers Hungry for Aussie, Asian Real Estate

South Korean pension funds and insurance companies are raising their bets on real estate as they diversify their US and Europe-focused portfolios into Australia and Asia, while increasing their appetite for distressed assets.

They believe the global real estate market is bottoming out on the back of falling interest rates. It is time to ramp up exposure to real estate equity investments, as well as to value-add and seek opportunistic assets, said senior alternative investment managers at ASK 2024, a global alternative investment conference. Read more>>

Evergrande Says Company Founder Sanctioned by Shenzhen Exchange

Liquidators of China Evergrande on Tuesday (Oct 22) said the Shenzhen Stock Exchange has published disciplinary actions against the property developer’s flagship unit Hengda Real Estate and founder Hui Ka Yan, among other senior executives.

The liquidators referred to a Shenzhen Stock Exchange document dated Sep 30, which publicly reprimanded Hengda and Hui after the securities watchdog found Hengda had overstated revenue by 564 billion yuan (S$104.2 billion) over two years through 2020 and fraudulence in its bond issuance. Read more>>

Mapletree Logistics Trust Distributions Decline 10.6% on Borrowing Costs

The manager of Mapletree Logistics Trust has reported a distribution per unit of S$2.027 cents for the quarter ended Sept 30, down by 10.6 percent year on year from the same period a year earlier. The REIT’s distributable income stood at $102.3 million in for the three month period, down by 9.1 percent year on year.

This came on the back of higher borrowing costs, which saw a 8.2 percent year on year increase to $39.8 million. The REIT also experienced lower divestment gains at $6.1 million in the quarter, as compared to $8.8 million a year earlier. Read more>>

Singapore’s Parkway Life REIT Closes Private Placement to Support French Acquisition

Parkway Life Real Estate Investment Trust’s private placement to fund its acquisition of 11 nursing homes in France has closed at the issue price of S$3.80 per new unit.

This represents the lowest end of the estimated issue price range of between S$3.80 and S$3.88 per new unit when the acquisition was first announced. Read more>> 

Keppel Pacific Oak US REIT Income Falls 8.8%

Keppel Pacific Oak US Reit posted a distributable income of $11.9 million for the third quarter ended Sep 30, down 8.8 percent from $13.1 million in the previous corresponding period.

This was mainly due to higher financing cost as a result of rising interest rate, as well as lower net property income, said the office-focused real estate investment trust’s manager in a business update on Wednesday. Read more>>

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