In today’s roundup of regional news headlines, a GIC-backed joint venture buys a Seattle skyscraper, ESR Australia boosts its logistics investments with new capital commitments, and two more companies accuse indebted developer China Evergrande of failing to pay bills on time.
GIC JV With CPPIB, Boston Properties Buying Seattle’s Safeco Plaza for $465M
Boston Properties is acquiring Safeco Plaza in Seattle in a $465 million gross purchase. Boston Properties bought the building as part of its joint venture with the Canada Pension Plan Investment Board and Singapore’s GIC Private Ltd.
Boston Properties would own up to 51 percent of the property. Safeco Plaza, previously 1001 Fourth Avenue Plaza and the Seattle-First National Bank Building, is a 50-storey skyscraper in downtown Seattle. Liberty Mutual, which acquired Safeco Insurance in 2008, is the building’s anchor tenant, leasing 68 percent of the property. Read more>>
GIC Joins Consortium Buying UK Supermarket Chain Morrisons
Singapore-based sovereign wealth fund GIC has joined a consortium led by private equity firm Fortress that seeks to acquire British supermarket chain Morrisons.
Earlier this month, the supermarket chain accepted a £6.3bn ($8.7bn) bid from the consortium. Despite the investment, Fortress will remain the consortium’s majority shareholder and the value of the takeover offer will remain unchanged. Read more>>
ESR Australia Increases Logistics Investments With New Commitments
ESR Australia is expanding its core plus logistics strategy with a A$600 million commitment to the newly established ESR Australia Logistics Partnership II (EALP II).
ESR Cayman said Thursday that ESR Australia had secured an initial commitment from investors of A$480 million ($353 million) to EALP II, an extension of EALP. Read more>>
QIP Closes Funding for $100M Chicago Co-Living Project
Investment Partners (QIP), a Singapore-headquartered private equity real estate firm, has completed an equity funding round for the development of a $100 million co-living project in Chicago. The latest round raised $24.5 million, of which $14.5 million was contributed by Bank Julius Baer.
The project, 633 S LaSalle, is a 162,000 square foot (15,050 square metre), 381-bed development. It is QIP’s first capital partnership with Bank Julius Baer, and its first venture into the co-living housing sector, via its residential living platform. Read more>>
Evergrande Supplier Sues as Overdue Bills Pile Up
Two more companies said China Evergrande Group failed to pay its bills on time, adding to signs of a cash crunch at the world’s most indebted developer.
Huaibei Mining Holdings filed a lawsuit against Evergrande in Anhui province, alleging that a unit of the company missed payments, according to a filing with the Shanghai stock exchange. The company is demanding RMB 401 million ($62 million) for fees and breach of contract. Another company, Peace Tree Wood, said Evergrande missed payments on RMB 2 million in commercial bills. Read more>>
TikTok CEO Buying Singapore Bungalow for S$86M
Chinese video-sharing app TikTok’s recently appointed chief executive, Singaporean Chew Shou Zi, is understood to be in the early stage of buying a property in the Queen Astrid Park Good Class Bungalow Area for S$86 million ($63.5 million).
The price works out to about S$2,700 per square foot on the land area of slightly over 31,800 square feet (2,954 square metres). The property has a 999-year leasehold tenure. Read more>>
Ratings Agencies Downgrade China Evergrande
Major credit ratings agencies this week downgraded China’s most indebted property developer Evergrande, as concerns over Asia’s junk bond sector rise.
Fitch Ratings on Wednesday downgraded China Evergrande two notches from B to CCC+, saying the negative developments surrounding Evergrande may weaken investor confidence, further pressuring its liquidity. Read more>>
Keppel Swings Back to S$300M First-Half Profit, Quadruples Dividend
Keppel Corporation has bounced back into the black for the first half with all its key business units turning in improved performances.
The group reported net profit of S$300 million ($221.7 million now) for the six months to 30 June, reversing from a loss of S$537 million in the same period last year. Read more>>
CDL Hospitality Trusts Cuts Distributions by 19.2%
CDL Hospitality Trusts’ distribution per stapled security fell 19.2 percent to 1.22 Singapore cents for its first half ended 30 June, from 1.51 Singapore cents a year ago, citing post-rent restructuring, a low-base effect from earlier losses and the absence of one-off contributions from a divestment in the first half of 2020.
This is despite posting a 24.4 percent higher year-on-year net property income of S$37 million ($27.4 million now), compared with S$29.7 million for the year-ago period. Read more>>
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