Frasers S$1.28B Rights Issue to Fund Logistics Deals and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, Frasers Property readies a rights issue to fund logistics deals and ease leverage, emigrating Hongkongers help drive up UK home prices, and a wetland in Hong Kong’s New Territories gains protection after the owner reached a deal with the government.

Frasers Plans S$1.28B Rights Issue to Fund Logistics Deals

Frasers Property plans to raise S$1.28 billion ($970 million) via a rights issue so that it can have more resources to invest in industrial and logistics assets, as well as to reduce its gearing.

The company plans to raise the funds by issuing up 1.086 billion new ordinary shares at S$1.18, adding to the existing share base of 2.93 billion shares. At S$1.18, it is a slight discount of 4.8 percent off the last traded price of S$1.24 on 10 February. Read more>>

Hong Kong Buyers Help Boost UK Home Prices

A combination of foreign demand, including those from emigrating Hongkongers, and a rush to beat the impending property tax, pushed UK home prices to their most unaffordable level in 10 years, according to a study by a London-based real estate agency.

Benham and Reeves analysed the average house price to income ratio based on average property values and the average net salary over the last 10 years. While the average net salary in the UK grew to £25,123 ($34,480) in 2020, the average house price was nearly 10 times more at £249,633, corresponding to a price to income affordability ratio of 9.94, meaning a minimum of a year’s salary is needed for the average deposit. Read more>>

Hong Kong Approves Land Swap to Restore Tai Po Wetland

Officials have approved a land-swap deal with the owner of an ecologically sensitive wetland in northern Hong Kong to guarantee the site’s long-term restoration and preservation.

The government confirmed on Wednesday that it would take over Sha Lo Tung — a 50 hectare (123.6 acre) protected area of Tai Po district home to endangered wildlife — in exchange for handing the former owner an alternative site to develop its planned golf course, finally implementing the arrangement three years after it was agreed in principle. Read more>>

Dongguan Home Prices Rise as Tech Firms Fuel Demand for Housing

Dongguan, the city with the highest home-price gains in China last year, is likely to see prices increase further this year amid an influx of talent as more tech firms set up operations in the Greater Bay Area city.

Property prices in the city of 8.5 million rose 29 percent last year, according to a housing index compiled by a research unit of the Chinese Academy of Social Sciences. Shenzhen ranked second with a 23 percent increase, and Ningbo in eastern Zhejiang province came third, registering a 16 percent gain. Read more>>

More SG Homes Leased in January as Rents Rise: SRX

The climb out of the pandemic-induced rut appears to be on track in Singapore, with rental volume for both Housing Board flats and condominium units recording another month of increases in January this year.

Condo rentals rose 11.3 percent last month to an estimated 4,747 units, compared with 4,266 units in December last year, according to flash data from real estate portal SRX Property released on Wednesday. Read more>>

Nine Adjoining SG Shophouses Going for S$33.9M

A row of nine conservation shophouses at 30 to 46 Joo Chiat Place is on the market for S$33.9 million ($25.6 million). The freehold properties are under a single strata title and will be offered in an expression of interest exercise by Huttons Asia. The properties are jointly marketed by Huttons Asia and Sotheby’s International Realty.

“This sale represents a rare opportunity to acquire a row of nine adjoining freehold conservation shophouses in the Joo Chiat area,” says Rudy Tedja, associate group district director at Huttons Asia. Read more>>

Clifford Chance Advises Partners Group on Tokyo Office Buy

Leading international law firm Clifford Chance has advised Partners Group, which on behalf of its clients has acquired Tama Center, a Grade A office property in Tokyo’s Tama New Town.

The acquisition of the 24,000 square metre (258,334 square foot) property marks Partners Group’s first direct real estate acquisition in Japan for five years. Read more>>

Far East Hospitality Trust DPS Drops 30.7%

Far East Hospitality Trust’s distribution per stapled security fell 30.7 percent to 1.38 Singapore cents ($0.01) for the half year ended 31 December 2020 compared with 1.99 Singapore cents for the year-ago period.

Gross revenue for the half-year period was S$39 million, 34.8 percent lower than a year ago at S$59.8 million. The manager attributed the fall in revenue to lower rentals in its hotel arm, as well as rental rebates and lower occupancy for its offices. Read more>>

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