China Vanke has been offering steep discounts on its Hong Kong projects
A mainland developer leads Mingtiandi’s roundup of real estate headlines today as the Shenzhen-based company is planning to raise $1 billion by selling new H-shares to pay down overseas debt.
In other news around the region, an Aussie investment bank has reduced its office footprint in Hong Kong’s IFC, while a Japanaese investment bank looks into reducing its office use globally following the coronavirus outbreak.
Meanwhile, WeWork’s woes continue to spread across the region, as the troubled office provider is said to be backing out of a Seoul space.
China Vanke to Sell $1B in Shares to Repay Debt
China Vanke Co Ltd said on Thursday it planned to sell HK$7.89 billion ($1.02 billion) worth of H-shares to raise capital to repay overseas debt financing and for development of domestic residential properties.
The Chinese property developer plans to sell 315.89 million new H-shares, representing 2.72 percent of the enlarged total issued share capital, to no less than six professional, institutional or other investors. Read more>>
Macquarie Surrenders Office Space in Hong Kong’s IFC Building
Macquarie Group is handing back a portion of its office space in Hong Kong’s One International Finance Centre, a move expected to become increasingly popular among finance firms in the city.
The Sydney-based investment bank will surrender 13 suites on the building’s 20th floor before the end of September, documents lodged with the Land Registry show. It will retain its other three entire floors and the rest of its space on the 20th floor, the documents show. Read more>>
Singapore Government Flat Sales Dip to 30 Year Low
Housing Board flat resale volumes tumbled still further last month, following the already record low number of flats resold in April and dropping to levels not seen in the last thirty years, real estate portal SRX figures showed on Thursday.
Just 364 flats changed hands in May, a 13.9 decrease from the 423 resold in April. Both figures logged during the circuit breaker months were lower than the previous record low of 778 flats resold in May 1990. Read more>>
WeWork Seeking to Cancel 18,895 SQM Lease in Downtown Seoul
WeWork has become a headache for KB Asset Management as the shared workspace service provider is rumoured to be seeking to close its operations in Jongno Tower ― a building the domestic investment firm owns ― amid worsening profitability, according to industry sources, Wednesday.
Since September 2018, WeWork has rented a combined 18,895 square metres of space on eight floors inside the 33-story building in downtown Seoul. Read more>>
South Korea’s Mirae Targeting REIT IPO in Q3 2020
South Korea’s investment firm Mirae Asset Global Investments said Wednesday it is eyeing its first initial public offering for its real estate investment trust followed by a listing on the nation’s main bourse Kospi.
The REIT is designed to invest in a commercial space of the commercial-residential complex dubbed Gwanggyo Central Prugio City valued at some 278 billion won ($228.3 million). Read more>>
Nomura to Rethink Office Space as New CEO Seeks Deeper Cuts
Nomura Holdings Inc’s use of office space is part of a sweeping review ordered up by its new chief executive as the brokerage looks to shave costs in the wake of the coronavirus pandemic.
Kentaro Okuda said he has instructed each department to discuss the impact of the outbreak and “what’s needed and what isn’t”. Japan’s biggest securities firm will look into space at its Tokyo headquarters and overseas, because employees will probably continue to work from home to various degrees in an era of social distancing, he said in an interview. Read more>>
Tune in again soon for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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