GIC JV Completes Acquisition of Indus Realty Trust and More Asia Real Estate Headlines

The completion of a US REIT buyout leads today’s roundup of real estate headlines with our news from around the region also including a Japanese bond raise by ESR. Also making the list are a deal closing by SGX-listed Cromwell European REIT and a land tender in Hong Kong’s Kennedy Town.

GIC, Centerbridge Close on Acquisition of US Industrial REIT

US industrial REIT Indus Realty Trust, Inc late last week announced the completion of a previously announced merger by affiliates of Centerbridge Partners and Singapore’s GIC through which the investors have acquired all of the outstanding shares of INDUS’ common stock in an all-cash transaction valued at approximately $868 million.

The companies also revealed that a unit of ADIA, (Abu Dhabi Investment Authority) will act as a strategic investor alongside Centerbridge in the ownership of INDUS post-closing. Read more>>

ESR to Raise $208M in Japanese Bonds in Tokyo Debt Market Debut

ESR Group Limited is raising JPY 30 billion ($208 million) via two series of Japanese Yen denominated fixed rate notes including JPY 20 billion in 1.16 percent fixed rate notes due in 2026 and a set of JPY 10 billion 1.68 percent fixed rate notes due in 2030, with the bonds issued under its $2 billion Multicurrency Debt Issuance Programme.

ESR intends to use the gross proceeds, after deduction of fees, commissions and expenses, for the refinancing of existing borrowings, financing of potential acquisition and investment opportunities which the group may pursue in the future as well as for working capital requirements and general corporate purposes. Read more>>

Cromwell E-REIT Completes $102M Sale of Milan Asset

Cromwell European Real Estate Investment Trust (Cromwell E-Reit) has sold its Milan office asset Piazza Affari 2 for 93.6 million euros ($102 million), its manager said on Friday.

The selling price for the asset comes at a 14.6 per cent premium above the original 2017 purchase price of 81.7 million euros, and 200,000 euros above its June 2023 valuation and was paid fully in cash, the manager said in a bourse filing. Following the sale, Cromwell E-Reit’s portfolio is nearly 50 percent weighted to the light industrial and logistics sector. Its weighting towards office properties now stands at 48.1 per cent. Read more>>

Site in Hong Kong’s Kennedy Town Attracts Bids From CK Asset, SHKP

Six developers – CK Asset, Great Eagle, Sun Hung Kai Properties, Wheelock Properties, K Wah International as well as a consortium formed by Sino Land and China Merchants Land – are vying for a Kennedy Town site.

The Lands Department said yesterday a total of six bids have been received for the plot at the junction of Sai Ning Street and Victoria Road. Read more>>

China New Home Sales Fell 28% in June

China’s home sales tumbled in June, snapping a four-month rebound, suggesting the country’s vast property market is far from stabilising.

The value of new home sales by the 100 biggest real estate developers fell 28.1 percent to RMB 526.74 billion ($72 billion) from a year earlier, according to preliminary data from China Real Estate Information. That compares with a gain of 6.7 percent in the previous month. Sales gained 8.5 percent month-on-month. Read more>>

Mainland Home Prices Drop in June

New home prices in China edged down in June from the previous month, marking a second straight month of declines, and housing sales are likely to remain weak over the summer when demand is usually at a low ebb, according to a private survey.

The average price of new homes in 100 cities fell 0.01 percent in June, the same-sized decline that was seen in May, data from the China Index Academy showed. Forty-five cities reported price decreases. For the first half of the year, average prices were up 0.01 percent from the same period a year earlier. Read more>>

China Housing Market Enters Challenging Phase

China’s long-running battle to stabilize its shaky real-estate market appears to be entering a troubling new phase, with data showing waning demand as a wave of home listings hits the market.

Shoring up the market is crucial for Beijing: Real estate accounts for as much as a quarter of economic activity in China. It is also the primary source of wealth for everyday Chinese. If sentiment weakens more, it could further set back an economy that has stalled in recent months, after an initial burst of activity following the end of zero-Covid controls late last year. Read more>>

Hong Kong Buyers Snap Up Henderson Land’s Kai Tak Apartments

Young homebuyers flocked to Henderson Land Development’s new project in Kai Tak on Saturday, snapping up seven out of every 10 units on offer ahead of an expected interest rate hike.

As of 5pm, 160 of the 228 homes at Henley Park found buyers, according to Sammy Po, Midland Realty’s residential ­division chief executive for Hong Kong and Macau. He described the situation as a “fairly good sales result” given the weak market conditions at present. Read more>>

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