The joint venture is developing a hyperscale campus at Nongsa Digital Park in Batam (Image: GDS)
In today’s roundup of regional news headlines, Shanghai-based GDS sets up a data centre venture with Indonesia’s sovereign wealth fund, and troubled co-working giant WeWork announces plans to exit underperforming locations. Also making the cut are India’s new data centre player and Hong Kong’s office market blues.
GDS Teams With Indonesia’s INA on Batam Data Centre Campus
Chinese data centre operator GDS is forming a joint venture with the Indonesia Investment Authority as the vehicle for developing a countrywide data centre platform.
The first project to be completed is the ongoing development of a hyperscale campus located at Nongsa Digital Park in Batam. GDS acquired land at the park in November 2021. Read more>>
WeWork to Renegotiate Nearly All Leases, Exit ‘Unfit’ Sites
WeWork is renegotiating nearly all of its leases with landlords and plans to exit “unfit and underperforming” locations, CEO David Tolley said Wednesday.
“We intend to remain in the majority of our buildings and markets,” Tolley said on the co-working company’s website. “As when we’ve closed locations in the past, we will promptly inform members and offer alternative arrangements and additional support to minimise any disruption or inconvenience.” Read more>>
India’s Anant Raj to Enter Data Centre Business, Plans 300MW Footprint
Indian developer Anant Raj is moving into the data centre business.
On its social media and in the local press, the company has announced plans to invest INR 10,000 crore ($1.2 billion) in developing up to 300 megawatts of capacity in India. The company has established a subsidiary, Anant Raj Cloud, to manage its data centre operations. Read more>>
Hong Kong Office Woes Mount as Most Tenants Shun Expansion
Hong Kong office tenants from financial institutions to manufacturers are cautious about expanding their existing space, reflecting another headwind for the city’s troubled commercial real estate market.
In banking, finance and insurance, about half plan to maintain their office space in the next two years, while tenants in the manufacturing and shipping sectors are most likely to downsize due to weakened global demand and heightened trade friction, Colliers found in a survey of 321 occupiers. Only the IT sector had a majority of respondents expecting to expand office space. Read more>>
China Stimulus Bets Drive Record Gains in Some Developer Stocks
Speculative bets that Chinese authorities will widen support for its property sector sent some of the country’s ailing developers surging by the most on record.
A Bloomberg Intelligence gauge tracking Chinese builders gained as much as 11 percent, the most this year. Heavily indebted developers with depressed valuations were among those to rally the most, with Sunac China Holdings gaining as much as 73 percent alongside a spike in trading volume. China Evergrande was up 83 percent. Read more>>
Accused Money Launderer Funded Singapore Luxury Apartments
A Turkish national arrested in Singapore’s S$1.8 billion ($1.3 billion) money-laundering case had financed the purchase of 11 luxury condo units in upscale neighbourhoods of the city-state, according to an affidavit by a police investigator.
Vang Shuiming had financed 10 units at Canninghill Piers, which is being built by City Developments Ltd and CapitaLand Development, and one unit at Shun Tak Holdings’ Park Nova. The units are currently under construction and have been served with orders prohibiting disposal. Read more>>
Blackstone Fund Withdrawal Requests Drop Below $3B
Redemption requests for Blackstone Real Estate Income Trust’s $70 billion fund fell for the fourth consecutive month in August.
BREIT said in a letter to stockholders that it received just under $3 billion in redemption requests in August, the lowest level of requests since the fund started prorating withdrawals in November, and 44 percent lower than the peak for requests in January. Read more>>
China’s Credit Wreck Exposes Governance Failings to the World
For Dhiraj Bajaj, the sudden twists and turns were unlike any he’d ever seen in his two decade investing career.
First, Dalian Wanda Group indicated to bondholders — including Bajaj — that everything was fine. The $400 million it owed them would be paid in full. Days later, some creditors were warned that the company was, in fact, $200 million short, a bombshell that triggered a frantic sell-off in the debt. And then, just as quickly, lenders were informed that there was indeed enough cash, sending the bonds surging once more. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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