Foreign Investors to Buy 20% of Aussie Offices and More Asia Real Estate Headlines

Leading today’s roundup, foreign investment in Australian commercial properties is still going strong, despite a plunge in Chinese capital flows last year. Also in the news, Macquarie Group’s infrastructure division has teamed up with South Korea’s largest wireless carrier to buy a leading home security firm from Carlyle Group. And Jack Gao is back in the news after stepping down as Wanda Group’s top executive in Hollywood last October, with a new killer app for Chinese moviegoers. There’s more news below about China’s grocery retail sector and the troubled tech conglomerate Leshi, so keep on reading.

Foreign Investors Expected to Buy 20% of Aussie Offices

Foreign investment into the Australian commercial property market doesn’t look like it’ll be slowing down following results from a recent study. The survey from the ANZ/Property Council has shown foreign real estate investments are still strong in the commercial sector, with many respondents anticipating foreign investors to buy up hotels and other property.

Of the 1,100 surveyed, respondents expected nearly 20 percent of office purchases would be by foreign investors, and nearly 22 percent would be hotels bought by foreigners. This was actually a rise, although small, on the same survey carried out last quarter. This is despite the 60 percent fall in Chinese foreign investment which saw a $2.83 billion drop last year, according to data from real estate firm Cushman & Wakefield. Read more>>

Carlyle Sells Korea’s ADT Caps to Macquarie, SK Telecom for $2.8B

Global alternative asset manager The Carlyle Group announced Wednesday it has agreed to sell ADT Caps, the second largest security services provider in Korea, to SK Telecom and Macquarie Infrastructure and Real Assets (MIRA) for 2.97 trillion won ($2.76 billion). SKT is the largest telecommunication operator in Korea and MIRA is one of the largest infrastructure asset managers globally. The transaction is expected to close in the second half of 2018.

The Carlyle Group acquired ADT Caps through Carlyle Asia Partners IV and Carlyle Partners VI in 2014 from Tyco. By partnering with Jinhwan Choi, CEO of ADT Caps and the management team, Carlyle has supported the business to become the most profitable security services player in Korea.

Former Wanda VP Unveils Smart Cinema App

Today, a new app called Smart Cinema is released in China. Using 2K technologies, the app allows users to purchase tickets to watch films that are currently in theatre on their phone. The ticket sales will be counted as theatrical box office. The project was initiated by China Research Institute of Film Science and Technology in 2015, and then carried out by tech firm Yuntu Shidai.

Jack Gao, former Senior Vice President of Dalian Wanda Group, is the current head of the project. Jack Gao says that the purpose of the app is not to compete with traditional movie theatres. Instead, they hope to make theatrical films available to audiences who have limited access to traditional cinemas, and also support smaller films that are overshadowed by blockbusters in theatre. Read more>>

Top China Grocers Projected to Grow by 10.4%

China’s leading grocery retailers are forecast to grow at nearly double the rate of the country’s total grocery retail market by 2022, with experts highlighting five factors that will accelerate their advance. Based on a report on the region’s top ten leading retailers, IGD predicts growth of 10.4 percent for them, compared to 5.8 percent for the overall China market.

Said Shirley Zhu, programme director at IGD Asia, “The future of grocery shopping is being reinvented in China, where the boundaries between ecommerce, supermarket and restaurants are blurring.” Read more>>

Shenzhen Stock Exchange Questions Leshi on Cratering Assets

Leshi Internet Information & Technology Corp Beijing has been formally asked whether its assets, which have fallen 98 percent over the past year, are at risk of turning negative and triggering a share trading halt and possible eventual delisting.

The Shenzhen Stock Exchange’s website on Wednesday showed the bourse had sent Leshi 33 questions, including about its assets. Under its rules, a year of negative net assets results in “suspension from being a listed company”, with two years ending in delisting. Read more>>

CapitaLand to Co-Develop First Kindergarten in Vietnam

CapitaLand will co-develop its first kindergarten, CapitaLand Le Xa Hope Kindergarten in Vietnam, which is its 28th school in its network in China and Vietnam.

According to an announcement, CapitaLand Hope Foundation (CHF) contributed $215,000 to the construction and the enhancement of the school, alongside World Vision and the Tien Lu District government. CapitaLand said the kindergarten is currently the largest school in the Le Xa commune. It provides education for 350 students aged five and below. Read more>>

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