Insurer Ping An Changes Property Strategy and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, insurance giant Ping An increases its investment in real estate while reducing exposure to developers, and Australia’s Star Entertainment Group markets one of its Gold Coast hotels.

Ping An Adds Property Assets to Portfolio, Steers Clear of Developers

Ping An, China’s largest insurer, has increased its investments in rental income property while cutting exposure to developers after taking a massive hit on China Fortune Land Development.

Of the insurer’s RMB 4.37 trillion ($633.9 billion) investment portfolio, real estate now accounts for 4.7 percent or RMB 205.4 billion, with 60 percent invested in physical buildings, an increase of 10 percentage points from two years ago. Read more>>

Star Entertainment Group to Sell Beachside Gold Coast Hotel

Australia’s Star Entertainment Group has put one of its Gold Coast hotel assets on the market.

According to information from Colliers, the Sheraton Grand Mirage Resort Gold Coast, which was acquired by Star and its Hong Kong partners Chow Tai Fook and Far East Consortium in January 2017 for A$140 million ($93 million), is up for sale again with an asking price in excess of A$200 million. Read more>>

Real Estate Investor Run on Signature Bank Helped Fuel Its Demise

A rush by New York City real estate investors to yank money out of Signature Bank last week played a significant role in the bank’s collapse, according to building owners and state regulators.

The withdrawals gained momentum as talk circulated about the exposure Signature had to cryptocurrency firms and that its fate might follow the same path as Silicon Valley Bank, which suffered a run on the bank last week before collapsing and forcing the government to step in. Read more>>

Guo Wengui Charged in Alleged $1 Billion Fraud Conspiracy

Chinese businessman Guo Wengui, who gained attention by lobbing corruption allegations at Beijing from a Manhattan penthouse and later launched a media company with Trump confidant Steve Bannon, was arrested Wednesday and accused of orchestrating a $1 billion fraud.

Guo took advantage of the hundreds of thousands of followers he amassed online, prosecutors alleged, by soliciting investments in his cryptocurrency, media and other companies. Instead, he used the money to buy a $26 million home in New Jersey, a yacht, a Ferrari and a $36,000 mattress, among other items, said the indictment, which charged Guo with 11 counts of fraud and money laundering. Prosecutors said they seized $634 million in criminal proceeds and assets that included a Lamborghini. Read more>>

Investcorp Joins Global Funds in Betting on Indian Warehouses

Investcorp Holdings BSC, the Middle East’s biggest alternative asset manager, is doubling down on warehouse investments in India, betting the nation’s manufacturing ambitions and e-commerce boom will fuel demand for logistics.

Warehousing currently accounts for almost 16 percent of the Bahrain-based firm’s $350 million real estate portfolio in India, and it’s planning to boost that share in the coming year, according to Ritesh Vohra, the firm’s real estate head in the nation. Read more>>

M3M India Investing $72M in Noida Mixed-Use Project

Realty firm M3M India has bought 3 acres (1.2 hectares) of land in Noida for INR 250 crore and will invest another INR 350 crore to develop a project comprising retail space and studio apartments.

The total investment will be INR 600 crore ($72.5 million) to develop the project located in Sector 72. Read more>>

Boustead Projects Unsure of Public Market for Its Shares After Offer Closes

Boustead Projects on Wednesday said there may not be a public market for shares in the company after the offer by Boustead Singapore to acquire its shares at S$0.95 ($0.70) apiece closes on 27 March.

This was the company’s response to the Singapore Exchange Securities Trading, which had asked what will happen to the shares held by public shareholders in the event that the shareholding interest of Boustead Singapore and its concert parties exceeds 90 percent. The question was posed as the listed acquirer is unable to avail itself to the rights of compulsory acquisition. Read more>>

Ho Bee’s Lack of Singapore Residential Land Buys May Be a Good Thing

Ho Bee Land has been achieving relatively high return on equity of at least 7.5 percent in eight out of the past 10 years.

This can be credited to the group’s strategy of building up a strong recurring income stream. Ho Bee’s rental income has grown from S$14.4 million in 2012 to S$259.7 million (now $192.6 million) in 2022, largely from its UK and Singapore office assets. Read more>>

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