Crown Sydney in Barangaroo
In today’s roundup of regional news headlines, Aussie casino operator Crown Resorts is presented with a revised buyback proposal from Oaktree Capital Group, Singapore’s stock exchange launches the world’s first ESG REIT derivatives, and Shenzhen’s efforts to curb housing prices give a boost to the black market.
Australia’s Crown Resorts Gets A$3.1B Proposal From Oaktree
Australia’s Crown Resorts said on Tuesday that it had received a modified proposal from Oaktree Capital Group with a provision for funding of A$3.1 billion ($2.4 billion) for the casino operator to buy back its founder’s stake.
The latest proposal from the private equity firm consists of a A$2 billion private loan and a A$1.1 billion loan convertible into new shares to be issued by Crown, the company said in a statement. Read more>>
SGX Launches World’s First ESG REIT Derivatives
The Singapore Exchange on Monday launched what it has called the world’s first environmental, social and governance (ESG) REIT derivatives.
The new SGX Nikkei ESG-REIT Index Futures contract aims to meet rising demand for integrating ESG considerations into investment portfolios, the Singapore bourse operator said in a statement. Read more>>
Sovereign Wealth Funds Pump More Money Into Real Estate, Alternatives
Sovereign wealth funds (SWFs) are injecting more capital into higher-returning alternative assets such as property, though some heavyweights fall short of their targets. Investments into real estate, private equity and infrastructure by such state-owned investment funds grew substantially over the past decade.
SWFs’ cumulative actual allocations to the three asset classes more than tripled to $717 billion last year from $206 billion in 2011, according to a report by alternative assets data provider Preqin in partnership with law firm Baker McKenzie. Read more>>
Perpetuals Appeal as Cheap Equity for Hungry REITS
There are businesses that list in Singapore and raise no further capital once their listing status is secured.
That, however, is not the story for REITs listed there. In particular, S-REITs are active in raising equity in the secondary market to buy properties. Though acquisitions can be funded by debt, which is cheaper than equity, at some point REITs need to increase their equity base. Read more>>
Shenzhen Housing Crackdown Boosts Black Market
In early May, one real estate brokerage in a bustling Shenzhen neighbourhood put on its window a list of what appeared to be fruit prices. From a RMB 10 million ($1.56 million) durian to a RMB 1 million banana, the document seemed nonsensical to the untrained eye. But for those in the know, it served as code referring to homes for sale on the city’s growing black market for property.
The disguised listings were a response to Shenzhen’s efforts to cap climbing home prices, fuelled by investors who see housing as a surefire profit maker. Read more>>
Ascott to Open Lyf Co-Living Property in Fukuoka, Japan
CapitaLand’s The Ascott on Tuesday said it would open its first Lyf-branded co-living property in Japan on Wednesday. The property, Lyf Tenjin Fukuoka, is the first of six Lyf properties slated for opening this year in Singapore, Hangzhou, Shanghai and Xi’an.
The 131-unit Lyf Tenjin Fukuoka is part of the Resola Imaizumi Terrace by NTT Urban Development, a development with commercial, retail, and food and beverage components. Read more>>
Pune Drew Institutional Investments of $1.3B During 2015-20: JLL
Pune attracted institutional investments of INR 9,600 crore ($1.3 billion now) during 2015-20. Of the total institutional investments, 49 percent accounted for office assets whereas 25 percent contributed towards the housing segment, according to a report by JLL.
JLL’s research indicates that 31 million square feet (2.9 million square metres) of office space stock in the fast-growing Indian city would be eligible for REITs. Read more>>
CapitaLand Malaysia Mall Trust Gets Nod to Expand Beyond Retail
Unitholders of CapitaLand Malaysia Mall Trust have voted in favour of the REIT’s proposal to expand its asset classes to include business parks, logistics facilities, warehouses, distribution centres, data centres and integrated developments.
Low Peck Chen, chief executive of the REIT’s manager, said the accorded flexibility will let the REIT invest in a comprehensive range of income-producing assets, diversify CMMT’s revenue stream and build a sector-diversified portfolio. Read more>>
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