Carlyle Seeks $4B Exit Deal for McDonald’s China and More Asia Real Estate Headlines 

In today’s roundup of regional news headlines, US private equity giant Carlyle Group reportedly seeks a buyer for part of its stake in McDonald’s China, and McKinsey warns on remote work. Also on the list, Guangzhou R&F Properties faces a rare court manoeuvre by two creditors and a mainland pension fund warns of debt risks.

Carlyle, Trustar Plan $4B McDonald’s China Exit

Carlyle Group and Trustar Capital are seeking a partial exit from McDonald’s operations in Hong Kong and mainland China, people familiar with the matter said, in a deal that would raise $4 billion.

Singapore’s GIC and Mubadala Investment, the Abu Dhabi sovereign wealth fund, have been approached about the deal that values the entire business at up to $10 billion including debt, the people said. Shareholders have agreed to the plan, and the asset managers aim to finalise an agreement with investors in the fourth quarter, they said, asking not to be identified discussing private matters. Read more>>

Guangzhou R&F Faces Bankruptcy Restructure Demand

Two creditors of China’s Guangzhou R&F Properties have sued the developer to seek a bankruptcy restructuring, notices in an official database showed, deploying a rare court tactic against a mid-sized company of its kind.

While many developers, including R&F, have faced legal action by creditors for non-repayment, such restructuring requests to Chinese courts are uncommon, as government officials usually step in to mediate, developers and lawyers said. Read more>>

Wanda Unit Sells $306M Stake in Its Chinese Cinema Chain

Wanda Investment, a subsidiary of Chinese property giant Dalian Wanda, has sold an 8.3 percent stake in Wanda Film Holding for RMB 2.2 billion ($306 million).

Wanda Film, which is listed on the Shenzhen Stock Exchange, runs China’s largest circuit of multiplexes and retains a stake in Hollywood producer Legendary Entertainment (“Dune”). Read more>>

China’s $400B Pension Fund Sends New Warning on Debt Risks

One of China’s biggest state-run investors is adding to the chorus of warnings over debt risks at the nation’s cash-strapped developers and local government financing vehicles.

The National Council for Social Security Fund, which oversees about $417 billion per the latest available figures, has advised asset managers that handle its money to sell some bonds including those from riskier LGFVs and private developers after a review, people familiar with the matter said, asking not to be identified discussing private information. Several of them mentioned that bonds from LGFVs in Tianjin, a debt-saddled northern port city, were singled out. Read more>>

Remote Work to Wipe $800B From Office Values, McKinsey Says

Remote work risks wiping $800 billion from the value of office buildings in major cities, highlighting the potential losses that landlords are facing from post-pandemic changes in employment trends.

COVID-19’s push towards hybrid work has driven the need for office space down with vacancy rates rising, McKinsey Global Institute said Thursday, in a report that modelled the impact on valuations by 2030 in nine cities globally. Read more>>

IREIT Global Preferential Offering Closes With Valid Acceptances of 77.3%

Singapore-listed IREIT Global received a total of 250.7 million valid acceptances and excess applications, or 134.7 percent of the total number of preferential offering units available, at the close of its offering on 11 July. Valid acceptances came to 77.3 percent.

In a bourse filing on Thursday, the trust’s manager said it received valid acceptances of 143.9 million new units and excess applications of 106.9 million units. A total of about 186.1 million preferential offering units will be issued to raise gross proceeds of S$75.9 million ($57.5 million). Read more>>

Wharf Upbeat on Return to Black in First Half

Wharf Real Estate Investment, the operator of Hong Kong’s biggest mall Harbour City, expects to turn profitable for the first half thanks to a lower revaluation deficit for its investment properties.

That compared with a net loss of HK$1.47 billion ($190 million) for the corresponding period last year, according to a Thursday stock filing. Read more>>

South Korea’s Archaic Rental System Is Costing People Their Life Savings

When Lee Cheol Bin realised he’d probably never recover the KRW 210 million ($170 million) deposit on his apartment rental in Seoul when his lease expires in November, the 29-year-old was gripped with anxiety and began avoiding friends and family. “I couldn’t sleep at night or focus on work for a few months,” says Lee, who had taken out a KRW 120 million loan to cover a portion of the deposit.

Lee’s landlord was found dead in a hotel room in October. A police investigation ruled out suicide or foul play, but local media reported that the man, whom they’d dubbed the “Villa King” because he owned more than 1,100 rental units across Seoul, was behind on tax payments and was being investigated for fraud. Read more>>

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