A pair of Singapore-listed REITs lead the way in Mingtiandi’s roundup of Asia real estate headlines today with the news that the two real estate investment trusts are planning a merger that will create a super-REIT with a portfolio worth $4 billion.
In other news around the region, property prices in one protest-hit Asian city are expected to slide further, while a Hong Kong-listed developer has signed a $130 million sustainability-linked loan with DBS.
Elsewhere, a Seoul-based company has been given the green light to build South Korea’s tallest super tall.
Frasers Logistics & Industrial Trust and Frasers Commercial Trust are planning to merge, according to people familiar with the matter, as consolidation among Singapore’s real estate investment trusts gathers pace.
A combined company would manage almost 100 properties worth $4 billion across Singapore, Australia and Europe, including warehouses, offices and business parks. An announcement on the deal could come within days, one of the people said, declining to be named as the information is still private. Read more>>
Market observers are cautious on the property market outlook despite a rousing win for pan-democrats and a surge in developers’ share prices, as they fear there could be more anti-government protests ahead, while the number of people selling flats in Hong Kong to acquire foreign citizenship continues to rise.
“I think the protests will actually continue. The lack of protests was because people wanted the election to go smoothly,” said Raymond Cheng, head of Hong Kong and China research at CGS-CIMB Securities. “But people are waiting to see how the government responds to the five demands. If the government does not have a meaningful response, the protests will start again.” Read more>>
New World Development has signed a five-year HK$1 billion ($130 million) loan with DBS which includes sustainability-linked conditions leading to interest rate discounts.
The mutually agreed rate discounts are based on two benchmarks which include, firstly, environmental targets for the property developer to reduce greenhouse gas emissions, construction waste, and consumption of energy and water. Read more>>
The Seoul city government has approved the long-delayed construction of Hyundai Motor Group’s new headquarters in the affluent district of Gangnam, which is set to be South Korea’s tallest skyscraper when completed in 2026.
The 569 metre (1,867 square foot) building will break ground in the first half of 2020, Seoul city said in a statement. Read more>>
While there is no exodus yet, expatriates and recruitment agencies say prolonged protests and escalating violence have already pushed some of Hong Kong’s 650,000 foreign residents to start packing, with many more poised to leave if the demonstrations continue into next year.
A recent poll by the American Chamber of Commerce in Hong Kong echoed that sentiment, with a quarter of respondents saying they were considering scaling back their operation in the city or moving away completely. Read more>>
NTT Communications is set to launch its Osaka data centre hub on December 1, in a bid to expand the company’s data centre capacity in the Kansai region.
The company said the data centre will launch with server space of 3,800 square metres, and will eventually offer 9,500 square metres and 4,200 racks. The facility will be situated in Ibaraki, Osaka Prefecture. Read more>>
Heatherwick Studio’s ‘1,000 Trees’ mixed-use development is nearing completion in Shanghai.
Split over two sites next to the city’s M50 arts district, the development will include space for retail, offices, eateries, event venues and galleries. It will include two mountain-like peaks, one of which is near completion and will open in 2020. Read more>>