Frasers Picks Up Melbourne Industrial Site and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, the industrial arm of Singapore’s Frasers Property adds a Melbourne site to its development pipeline, Chinese builder Sunac seeks a repayment extension on an offshore bond, and Hong Kong-listed Sunlight REIT secures more green financing.

Frasers Adds $30M Melbourne Site to Logistics Pipeline

Singapore’s Frasers Property Industrial will develop an A$215 million ($154.6 million) logistics estate in Melbourne’s west after snapping up a 23.4 hectare (57.8 acre) industrial land parcel in Cobblebank in the city of Melton.

While pricing was not disclosed, it is understood that FPI, an offshoot of Singapore-listed Frasers Property Ltd, paid A$42 million ($30.2 million) for the 1-15 Ferris Road site. Read more>>

Sunac Seeks to Extend $345 Million Onshore Bond by Two Years

Cash-strapped Chinese developer Sunac China is seeking to extend repayment of an onshore bond due on 13 June by two years, sources said Wednesday.

Sunac plans to pay only the interest on the maturity date on Monday, while repaying the RMB 2.3 billion ($345 million) debt in four instalments of 10 percent, 15 percent, 20 percent and 55 percent of the principal through 13 June 2024. Read more>>

Sunlight REIT Secures HK$800 Million Green Loan From BOCHK

Henderson Sunlight Asset Management and Bank of China (Hong Kong) announced that HKEX-listed Sunlight REIT has secured a HK$800 million ($102 million) sustainability-linked loan.

Together with the first tranche of HK$500 million, this HK$1.3 billion commitment represents a significant sustainable finance collaboration between Sunlight REIT and BOCHK, increasing the proportion of SLLs of Sunlight REIT to over 60 percent of total borrowings. Read more>>

Property Tycoons Lose $65B After China Curbs Excesses

When Xu Jiayin headlined a high-profile philanthropic event in 2018, he spoke at length about how he subsisted on sweet potatoes as a child in his home village.

The China Evergrande Group chairman was in his prime — with $40 billion in wealth, he rivalled Jack Ma as the nation’s richest person. He made a point to attribute his success to the Communist Party. That year, about a fifth of the country’s billionaires hailed from a real estate sector that relished rags-to-riches stories like Xu’s. Read more>>

Investors Brand Greenland’s Bond Payment Extension Unfair

Chinese developer Greenland Holdings’ plan to delay repayment of a $488 million bond has been branded unfair by investors and raised concerns over the credibility of state-owned enterprises in the offshore bond market, the South China Morning Post reported.

The property company backed by the Shanghai government has sought to extend the bond, which has a coupon of 6.75 percent, by a year after the city’s recent lockdown damaged its business. Payment had been due on 25 June. Read more>>

CapitaLand Malaysia Trust to Acquire First Logistics Property for $18.2M

CapitaLand Malaysia Trust has entered into a sale-and-purchase agreement to acquire two contiguous plots of freehold land and their industrial properties in Penang for MYR 80 million ($18.2 million), the REIT’s manager said Tuesday.

Sitting on a land area of 12.6 acres (five hectares), the plots have a net lettable area of 335,000 square feet (31,123 square metres) and tenants operating in the logistics sector. Read more>>

Mapletree Starts Renovation of Dallas Office Building

Mapletree, the developer owned by Singapore’s Temasek Holdings, has begun renovation of a 215,394 square foot (20,011 square metre) office building at the Galatyn Commons complex in the northern Dallas suburb of Richardson.

Galatyn Commons comprises four buildings totaling 800,000 square feet. Amenities include a food hall with a 300-seat dining area, a 10,000 square foot fitness and wellness centre and an outdoor amphitheatre with 1,000-seat capacity. Renovations are expected to be completed by mid-2023. Read more>>

Mainland Buyers Expected to Flock to HK Luxury Housing

Mainland Chinese buyers are expected to return to Hong Kong’s luxury housing market now that Shanghai has lifted its two-month COVID lockdown, driving sales to pre-fifth-wave levels in the third quarter of this year, according to Wheelock Properties.

The Hong Kong developer expects to launch 1 Plantation Road, a new 20-house luxury project on The Peak as its sales agent in the third or fourth quarter of this year, depending on construction progress, said Ricky Wong, the firm’s managing director. Read more>>

China’s Economic Headwinds Scare Off New Homebuyers

After two years of hunting, Volar Yip has put his dream of buying a new home in China’s southeastern city of Foshan on ice, anxious about making a major financial commitment amid a significant slowdown in the world’s second-largest economy.

The 32-year-old owns a media studio and many of his clients, which include government departments, are now cutting advertising budgets. Read more>>

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