The continuing slide of Hong Kong’s commercial property market leads today’s news from around the region, as a government auction of a commercial site near the city’s airport was cancelled after attracting just three bids — all of which fell below the auction minimum.
Also in the news, the cousin of CDL chairman Kwek Leng Beng has resigned from the developer’s board over continued losses at a mainland developer which the company acquired earlier this year, as well as concerns over its management of the Millennium & Copthorne Hotel chain.
In the latest signs of a slowdown in Hong Kong’s office property market, the government withdrew this year’s largest commercial site from tender, while Nan Fung Development lowered the asking rent for a grade A office tower under construction at Kai Tak by up to 20 per cent.
Bids for the site in Tung Chung, close to Hong Kong International Airport, were received from Sun Hung Kai Properties, CK Asset Holdings and a joint venture of Sino Land and Kerry Properties. About 90 per cent of the project’s floor space was earmarked for office development, according to the government’s land sale document. Read more>>
Mr Kwek Leng Peck has resigned from his position as non-executive and non-independent director of City Developments Ltd (CDL), a post he held for over 30 years, after clashing with the property giant’s board and management.
Mr Kwek, 64, is the cousin of Kwek Leng Beng, the billionaire executive chairman of CDL who also helms the Hong Leong group of companies, and the uncle of CDL’s group chief executive Sherman Kwek. Read more>>
Keppel Corp’s wholly-owned subsidiary Lipalton has completed its investment into Kapstone Constructions, and now holds 49 per cent of the latter’s total voting rights.
Kapstone is Lipalton’s joint venture (JV) with Indian developer Rustomjee Group, to develop the 51.4 hectare Urbania integrated township in the Thane district of Mumbai. Read more>>
Two of the world’s largest pension funds, the $626 billion Dutch APG and the $660 billion National Pension Service of South Korea (NPS), have joined forces in a partnership to invest in private assets including infrastructure and private real estate.
The funds have already this year jointly invested in Portugal’s largest toll road operator, Brisa, and Scape which is a market leader in student accommodation in Australia. Read more>>
Freddie Wong Kin-yip, the founder of Hong Kong-listed property agency Midland, wants to buy the non-residential arm of the business from the group under a reorganisation to overcome an industry slump.
Wong has offered to buy the shares of Midland IC&I at HK$0.09587 each, a small discount of around 0.14 per cent from the last trading price on Monday, according to an exchange filing late on Tuesday. Read more>>
Standard Chartered Plc will rent space in an Indian project being developed by a local builder and Singapore’s sovereign wealth fund to create one of its biggest campuses.
The London-based bank’s Standard Chartered GBS unit will lease 770,000 square feet for 15 years in Chennai, in a project being developed by DLF Ltd. and GIC Pte., DLF’s Executive Director Amit Grover said by phone on Wednesday. He declined to share a deal value citing client confidentiality. Read more>>
The American investment management firm, Blackstone is trying to buyout the engineering giant Larsen and Tourbo’s financial subsidiary – L&T Finance, to acquire its mutual fund business of L&T Asset Management Company. It is been said that the company is in the advanced talks with L&T. According to the sources close to the company, the New York-based company is planning to develop its business in India, particularly in the financial services space.
If this deal works, then this would the first buyout of an Indian AMC by a foreign non-mutual fund company. On the company’s worth, L&T AMC has about 39 MF scheme and assets worth around 63,057.2 crore as of the September quarter. Read more>>
Calls from laid off Cathay Pacific Airways pilots began arriving at Okay Property Agency not long after the Hong Kong airline announced one of the biggest job cuts in global aviation.
The cull that affected more than 5,000 Cathay employees on Wednesday has forced some to find cheaper housing or leave Hong Kong altogether. It’s a painful blow for one of the city’s biggest workforces, and yet another hit for a property market under pressure from political turmoil and a pandemic-induced recession. Read more>>