CapitaLand US managing director and country head Dang Phan
CapitaLand leads today’s headline roundup at Mingtiandi, with the Singaporean giant completing the disposal of a US apartment complex. Also making the list, Chinese developer Shimao posts a massive six-month loss and casino operator The Star receives bad news from Aussie regulators.
CapitaLand Sells Washington State Apartment Complex for $73M
Singapore’s CapitaLand Investment has sold an apartment complex in Kirkland, Washington to an entity affiliated with GID Investment and Development, according to public records. The sales price was recorded at $73.4 million. Located at 11105 NE 123rd Lane, the apartment complex consists of 202 units in a mix of one-, two- and three-bedroom floorplans.
CapitaLand originally purchased the property in 2018 as part of a portfolio deal that included 16 freehold multi-family properties for $835 million. The portfolio comprised 3,787 apartment units in Seattle, Portland, Greater Los Angeles and Denver. Read more>>
Shimao H1 Loss Widens by 88%
Shimao saw its interim loss widen by 88 percent from a year ago to RMB 22.67 billion ($3.2 billion) on a drop in gross profit and an increase in other losses. The Chinese developer’s gross margin slumped to 0.1 percent from 10.3 percent during the period as a continued downturn in the real estate sector called for increased provision for impairment losses on properties.
Average costs including land and construction also went up. Those factors contributed to gross profit shrinking 99.5 percent to just RMB 15 million, compared with RMB 3.12 billion in the first half of 2023. Read more>>
Chow Tai Fook, FEC-Backed Star Ruled Unfit for Sydney Casino Licence
The NSW Independent Casino Commission has thrown the future of troubled casino giant The Star Entertainment Group into doubt after declaring that the findings of the Bell II inquiry validate continuing concerns about its governance and culture.
In a shock development, the powerful regulator said it is now considering the “next steps” for its future after Adam Bell SC recommended The Star be required to undertake further remediation work if it is to keep its Sydney casino licence. Read more>>
Shenzhen-Based Kaisa Sees Losses Grow 36% in H1
Chinese developer Kaisa on Thursday posted a 36.3 percent increase in losses, highlighting the persistent challenges faced by real estate firms as home sales decline in a slowing economy.
The Shenzhen-based company in 2015 became the first Chinese real estate group to default on dollar-denominated bonds before charting a financial recovery. Read more>>
China’s Glut of Empty Offices Creates Opening for Hilton Expansion
Hilton Worldwide Holdings and its franchise partners have found a silver lining in China’s real estate crisis: converting empty and unused office buildings into hotels amid a domestic travel boom.
The group, which recently opened its 700th property in Greater China, is expanding briskly on the mainland, despite a meltdown in the country’s housing market that turned many investors off Asia’s biggest economy. Read more>>
Chennai Becomes a Hotspot for Logistics Players
Chennai, already a hub for automobile manufacturing, is swiftly becoming a hotspot for large industrial warehouses and logistics parks. The southern city is witnessing more than INR 100 billion ($1.2 billion) in warehousing and industrial infrastructure projects, benefiting from a surge in manufacturing activity and the shift in production from China by global firms.
Greenbase Industrial and Logistics Parks, a 50:50 joint venture of Hiranandani Group and private equity major Blackstone, recently announced a INR 15 billion investment towards land acquisition and the development of built-to-suit industrial spaces in the southwest and northern parts of Chennai. Read more>>
Mainland Offices Now Emptier Than During Pandemic
Offices in China’s biggest cities are emptier than they were during stringent COVID-19 lockdowns in what analysts say is a sign of how the country’s economic slowdown has hurt business confidence.
At least a fifth of high-end office space was vacant in the tech hub of Shenzhen in June, according to data from three real estate agencies, while office vacancy rates in Beijing, Guangzhou and Shanghai were also higher than in June 2022. Overall, rents are at least 10 percent lower than they were two years ago. Read more>>
Singapore Property Sentiment Improving: NUS Poll
Sentiment in Singapore’s property market seemed to turn for the better in the second quarter, based on a survey by the Institute of Real Estate and Urban Studies at the National University of Singapore.
Market sentiment remained largely stable and cautiously positive as the market anticipated an improvement in economic performance in the second half of the year amid persisting global instability, IREUS said. Read more>>
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