In today’s roundup of regional news headlines, Bloomberg reports that Chinese private equity firm Hillhouse Capital is consolidating its Singapore offices into a single Marina Bay location, and buyout giant TPG prepares to acquire an Indian mortgage lender.
Hillhouse Capital to Combine Singapore Offices at Marina Bay Financial Centre
Investment giant Hillhouse Capital Management is consolidating its two Singapore locations by moving to one of the city-state’s premier office buildings overseeing the Marina Bay skyline, according to people with knowledge of the matter.
Hillhouse has signed a lease for the 28th floor of Marina Bay Financial Centre Tower 1, the people said, asking not to be identified discussing private information. The company is currently located at Singapore Land Tower, with a co-working space at Ocean Financial Centre. Read more>>
TPG to Buy Poonawalla Housing Finance, Commits Nearly $600M
Buyout major TPG has struck a deal to buy Poonawalla Fincorp’s mortgage finance arm, four years after its protracted attempt to acquire ICICI Home Finance to enter India’s burgeoning housing finance market came unstuck.
The Texas-based private equity firm said it will acquire Poonawalla Housing Finance for a pre-money equity valuation of INR 3,900 crore ($473 million). TPG will also infuse additional equity capital up to INR 1,000 crore ($121 million) into the mortgage lender in the near term to support growth. Read more>>
Macrotech Developers to Build $40M In-City Warehouse in Mumbai
Realty firm Macrotech Developers will invest INR 330 crore ($39.8 million) to develop a warehousing project in Mumbai as part of its expansion plan and to tap rising demand from e-commerce and third-party logistics companies.
Macrotech, which markets its properties under the Lodha brand, is one of the leading real estate firms in India. Read more>>
Blackstone, Mirvac Selling Sydney Tower for A$830M in City’s Biggest Play
Sydney’s office market could finish 2022 on a high note, with real estate house Ashe Morgan and a Japanese partner circling a Margaret Street skyscraper in a deal worth about $830 million ($555.6 million).
The transaction would result in the listed Mirvac and private equity house Blackstone selling 60 Margaret Street and the MetCentre, in what would be the year’s largest office and retail trade in the wake of interest rate jumps. Read more>>
Fosun’s Lanvin Group Plunges 25% in New York Trading Debut
Shares of Chinese luxury firm Lanvin Group closed their first day of trading on the New York Stock Exchange at $7.63 a share, down 25 percent following volatile swings in the market.
The company debuted in a SPAC listing at $10 a share, valuing the company at $1.31 billion. The stock initially surged to $22.81 before dropping as low as $4.63 in afternoon trading. It regained some of that ground but was still far off the opening price by market close. Read more>>
Singapore’s Trendale Tower Back on Market With at S$168M Reserve Price
Trendale Tower, a freehold residential site in Singapore’s prime Cairnhill enclave, has been put up for sale yet again at a reserve price of S$168 million ($123.9 million) via public tender.
The site was last up for sale in August 2022 at a guide price of S$178 million, but bidding closed in mid-September with no takers. A May 2018 attempt to sell the development — then at a reserve price of some S$163.5 million — also fell through as there were no buyers. Read more>>
China Hints at More Property Support as Economy Takes Priority
China’s government hinted at further support for the real estate sector, with a top policymaker describing it as a “pillar” of the world’s second-largest economy.
Vice-Premier Liu He said new measures are being considered to improve the financial condition of the industry and boost confidence, according to a Xinhua report posted on the central government’s website. Liu also quashed concerns that weak housing demand could lead to a long-term slump, saying China is still on a course of “relatively quick urbanisation”. Read more>>
Expected Rental Yields on Tokyo Real Estate Assets Hit 23-Year Low
Investors are expecting lower rental yields from office and residential assets in Tokyo. According to the Japan Real Estate Institute’s investors survey published in November, the expected rental yield on Class A office space in Tokyo’s Marunouchi and Otemachi district was 3.2 percent as of October, down from a 3.3 percent expected yield in April.
This is the lowest expected yield since the institute began collecting data in 1999. Back in April 1999 they were as high as 6 percent, before dropping below 5 percent in 2005. Read more>>
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