Hong Kong investments by two of China’s best-known corporations lead today’s real estate headlines as a mainland conglomerate is said to be closing in a buyout of a high-end supermarket chain while JD.com invests $100 million in Li & Fung.
Also in the news, Softbank’s Oyo rearranges the deck chairs on its Japanese hotel operation and ARA Asset Management’s Suntec REIT completes a Melbourne office joint venture with Australia’s Mirvac.
A group led by China Resources Capital Management Ltd. is close to buying a majority stake in City’super, valuing the high-end Hong Kong supermarket chain at almost $300 million, people with knowledge of the matter said.
CR Capital, the alternative investments arm of state-owned conglomerate China Resources Holdings Co., and its co-investors plan to acquire 65% of City Super Group from owners led by The Fenix Group, according to the people. Hong Kong billionaire and former Wheelock & Co. chairman Peter Woo, who owns about 39% of the grocery chain, intends to sell down part of his stake, the people said. Read more>>
Chinese e-commerce giant JD.com has bought a stake in the century-old supply chain manager Li & Fung, in a strategic partnership that marries 21st century digital technology with one of the world’s largest logistics and supply chain networks.
JD.com has subscribed for US$100 million worth of Li & Fung’s newly issued shares at HK$1.25 each, the Hong Kong-based supply chain manager said in a statement, adding that the Fung family will retain control of 60 per cent of the company’s voting rights. As part of the agreement, Li & Fung will seek to increase its business in China by partnering with JD.com on private-label initiatives for the Chinese domestic market, the company said. Read more>>
CapitaLand’s wholly owned subsidiary CLC Investment Seven (CIS) has divested an aggregate 40% equity interest in Guangzhou Kai Ke Xing Mao Real Estate Development (GKK) to an unrelated purchaser for $78.6m (RMB395.7m) through a series of transactions, a press release revealed.
GKK owns a mixed-use site located in Huangpu District, Guangzhou, China which is to be developed into an integrated development comprising office, retail, apartments, serviced residence and low-density strata office components. Through the transaction, CapitaLand stated that they unlocked capital for reinvestment and GKK has secured an additional capital partner for its project. Read more>>
The leasehold of a Nottingham building currently let to a government department has been sold to a Singapore-based private equity firm for £7.55m.
Savills, on behalf of DSL Group, has sold the long leasehold of Apex Court on City Link Road in the Island Business Quarter to Elite Partners Capital. The building comprises 38,816 sq ft of office space and 82 parking spaces. Read more>>
Oyo, the Indian hotel-booking startup backed by Masayoshi Son’s SoftBank Group Corp., is merging its operations in Japan and appointing a new chief executive officer to oversee the combined entity.
The reorganization involves Oyo’s hotel-booking and apartment-rental units coming together into a single company called Oyo Japan, to be led by Ryoma Yamamoto as CEO with Ryota Tanozaki as his deputy, both promoted from senior roles in the existing Oyo operations. Read more>>
Suntec REIT has completed its premium grade office development Olderfleet, 477 Collins Street in Melbourne, Australia, an announcement revealed. Suntec REIT co-owns the development with Australian property group Mirvac.
“With income commencement on 1 August, the development will further enhance Suntec REIT’s income and improve its earnings and distributions to unitholders with the long weighted average lease expire of approximately 11 years and annual rental escalations of between 3.5% to 4.0%,” said Chong Kee Hiong Suntec REIT Manager’s CEO. Read more>>
Swire Properties has signed a five-year HK$1 billion (S$177.4 million) green loan with OCBC Bank.
The move is part of the Hong Kong-listed developer’s efforts to implement green initiatives at its properties around the world and drive green financing in the real estate industry, it said on Tuesday in a press statement. Read more>>