GIC has skipped across the world to buy a portfolio from Brazil’s GPA
In today’s roundup of regional news headlines, a fund backed by Singapore’s GIC agrees to buy 17 retail properties in Brazil, Hong Kong’s top banks reveal $1 billion in provisions to cover China property risk, and Beijing focuses on low-cost housing for the capital city’s renters.
GIC JV Buying 17 Properties From Brazil’s GPA for $232M
Brazilian retailer GPA has reached a deal to sell up to 17 of its properties to GIC-backed investment fund Barzel Properties for BRL 1.2 billion ($232 million), it said in a securities filing on Friday.
According to GPA, the properties will then be rented by cash-and-carry chain Assai for 25 years, which could be extended for an additional 15 years. The deal still requires approval from Brazil’s antitrust watchdog. Read more>>
Top Hong Kong Banks Set Aside $1B for Chinese Property Sector Risks
Hong Kong lenders HSBC, Hang Seng Bank, Standard Chartered and Bank of East Asia set aside at least $1.02 billion last year to cover risks arising from China’s real estate sector.
The provisions at these four banks, revealed during results announcements over the past two weeks, hint at the impact the developers’ credit crunch has had on lenders. Read more>>
Beijing Land Supply Plan Focuses on Low Cost Rental Housing
Beijing said Monday that low-cost housing will account for nearly 80 percent of the Chinese capital city’s new land supply for construction of rental homes this year, while total new land supply is unchanged from 2021.
China has stepped up efforts to address housing issues, faced particularly by young people, under President Xi Jinping’s so-called common prosperity plan. Home prices have remained high in large cities, despite a big downturn for the country’s highly indebted real estate sector. Read more>>
Chinese Developers to See More Small-Scale M&A
Many privately owned Chinese developers are selling projects to state-owned enterprises to raise cash for debt repayments in the recent market downturn, says Fitch Ratings.
These M&As, however, are unlikely to significantly raise the leverage of the SOE buyers as they are selective about targets and often buy their partners’ stakes in joint ventures instead of entire unrelated projects. Read more>>
India’s Future Retail Sells Stores to Reliance
Future Retail, India’s second-largest retail chain, is scaling down its operations to reduce losses, it said, the latest casualty in its years-long battle with estranged partner Amazon.
The firm, led by Kishore Biyani, said in filings to the stock exchanges that it has been finding it “difficult to finance the working capital needs” and its losses at store level are “increasing” and of “grave concern”. Read more>>
Freehold Singapore Project Sells 31% of Units at Launch
Royal Hallmark, a boutique 32-unit freehold development in Singapore’s District 15, moved 10 units on Saturday when it was launched for sale.
According to price guides seen by the Business Times, units were sold at S$2,100-S$2,200 ($1,547-$1,621) per square foot for the three-bedroom units, S$1,800-S$1,900 for the four-bedroom units and S$1,700-S$1,800 for the five-bedroom units. Read more>>
South Korean Housing Prices on Downward Trend After Peak
South Korea’s finance minister said Wednesday that the country’s housing prices are on a downward trend after being stabilised amid the central bank’s rate hikes and tighter lending rules.
Hong Nam-ki said the government will implement its real estate policy with a focus on expanding the home supply and rooting out property speculation in a bid to support a fall in home prices. Read more>>
Yanlord H2 Profit Falls 13% Despite 46% Higher Revenue
Yanlord Land Group posted a net profit of RMB 1.83 billion (now $290 million) for the second half of the financial year ended 31 December 2021, down 13 percent year-on-year.
The property developer said the result was due to the decrease in other operating income and other gains, as well as fair value gain on investment property. The increase in administrative expenses was also a factor. Read more>>
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