
R&F had first sold Vauxhall Square to FEC, and later to Flow Capital
One of China’s most creative developers leads today’s headline roundup with Guangzhou R&F setting a new Mingtiandi record by selling a project in South London for the third time. KKR also makes the news today with a REIT managed by the US giant buying a majority stake in an Okinawa commercial block and creditors have sold a Hong Kong mansion once owned by Evergrande’s chairman for half-price.
Guangzhou R&F Selling Vauxhall Square Project in London for Third Time
Mainland China developer Guangzhou R&F has agreed to sell its Vauxhall Square site in southwest London to an investor backed by Middle Eastern money, the third time the company has sold the project in two years.
Cedarstone Capital Partners, a company set up last September and backed by Dubai-based GFH Partners, said it had completed a deal to buy Vauxhall Square from R&F in a transaction using debt from Cheyne Capital Partners. In March 2022 R&F agreed to sell Vauxhall Square to Hong Kong’s Far East Consortium, only to buy it back in September. In October that year the developer said it would sell the project to Flow Capital, an investment firm backed by New World scion Adrian Cheng. Read more>>
KKR’s Japan REIT Buys Stake in Okinawa Commercial Building for $15M
Japan Metropolitan Fund Investment Corporation said on Tuesday that it has acquired a 70 percent stake in a commercial building on Japan’s southern island of Okinawa for JPY 2.47 billion ($15 million).
The REIT managed by US private equity giant KKR said it is buying the recently completed building at 29-20 Kumoji 3-chome in the Okinawan provincial capital of Naha after having been in negotiations with the developer, Hajime Construction, while the project was still being built. Read more>>
Evergrande Boss’ Hong Kong Mansion Sold by Creditors at Half-Price
China Evergrande Group Chairman Hui Ka Yan’s former mansion in Hong Kong was sold at a significant discount, according to a person familiar with the matter. The luxury property on the Peak, which had been seized by creditors, was sold for HK$470 million ($60 million), just over half the previous valuation of HK$880 million a year ago, the person said, requesting not to be named because the information is private. It is unknown who the buyer is.
The 5,000 square-foot (465 square-meter) house at 10B Black’s Link is one of three properties that Hui purchased in a six-house development in 2009. It was seized in 2022 by China Construction Bank Corp. and had been on the market since. Read more>>
Japan’s Mori Building Reports 33.5% Profit Increase for Year Ending March
Tokyo-based developer Mori Building on Tuesday announced that it brought in JPY 360.4 billion ($2.3 billion) in operating revenue for the 12 months ending in March, marking a 26.2 percent increase from a year earlier.
That boost in revenue helped the company increase profit attributable to its owners of JPY 441 billion for its fiscal year, which was up 33.5 percent from the 12 months ending March 2023. Read more>>
Hong Kong Investors Buys Auckland Office Tower for $280M
An unnamed entity based in Hong Kong has purchased the Vero Centre in Auckland, New Zealand for NZ$458 million ($280 million), according to a statement by the seller, Kiwi Property Group.
The deal, which is still subject to scrutiny by New Zealand’s Overseas Investment Office, is priced at 1.9 percent below a valuation of the property from last year, with Colliers’ New Zealand division understood to have brokered the transaction. Read more>>
Carlyle Raises $2.8B for Largest-Ever Japan Buyout Fund
Carlyle Group Inc. raised 430 billion yen ($2.8 billion) for its fifth Japan buyout fund, adding to signs of investor interest in the country despite a gloomy fundraising climate for private equity firms globally.
It’s the largest Japan-focused buyout fund ever raised, according to Carlyle, and about 70 percent bigger than the previous one it pulled together in 2021, the company said in a statement on Tuesday. Carlyle Japan is seeking to add nine investment professionals this year in anticipation of increased deal flow, and has filled about half the positions, a spokesman said. Read more>>
Singapore’s PropertyGuru Declares $4.5M Loss for Q1
Singapore-based online property portal PropertyGuru said Tuesday that its total revenue increased 12 percent year over year to S$37 million ($27.45 million) in the first quarter.
The firm’s net loss was S$6 million in the first quarter and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was S$4 million. This compares to a net loss of S$10 million and adjusted EBITDA of S$200,000 in the first quarter of 2023. Read more>>
Sun Hung Kai Properties Lands $2.9B Loan From Bank of China-Led Consortium
Sun Hung Kai Properties has signed a five-year HK$23 billion ($2.9 billion) credit facility with 23 lenders including BOC Hong Kong (2388), with the proceeds going towards debt refinancing and working capital for upcoming projects.
The facility was oversubscribed nearly five times with SHKP not providing details on the debt’s interest rate. Other lenders in the consortium include The Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China (Asia) and Standard Chartered Bank (Hong Kong). Read more>>
Hong Kong’s Property Market Bailout Seen Threatening Home Affordability
Hong Kong’s efforts to shore up property prices and end a three-year market slump are bad news for residents seeking to own their first homes in the city, after a modest improvement in affordability in recent years versus Singapore, according to the Urban Land Institute.
The government’s move in February to ease financing and raise mortgage limits for home purchases will boost demand and prices, making it harder or longer for those saving up money to attain home ownership, according to the 2024 Asia-Pacific Home Attainability Index it published on Tuesday. 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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