Emerging markets lead Asia’s real estate headlines today as deals in India and Indonesia show that investors are still ready for opportunities in high growth locations.
Also in the news, a pair of CapitaLand trusts have moved one step closer to a S$16.8 merger and GIC found a buyer for a Polish warehouse facility.
Keppel Corp said on Monday that Keppel Land has entered into a joint venture with leading Indian developer Emerald Haven Realty (TVS Emerald), a TVS Group company, to jointly develop a freehold condominium project on a prime 2.4 hectare site in south Chennai, India.
Keppel Land will acquire a 49 per cent stake in the joint-venture company at a total consideration of about 772M (S$14.1M). The total development cost is expected to be about 5.4 billion rupees (S$98.2M), with Keppel Land’s share estimated to be about 2.6 billion rupees. Read more>>
The manager of Lippo Malls Indonesia Retail Trust (LMIRT) has reached an agreement with PT Mandiri Cipta Gemilang to acquire the strata title units of Lippo Mall Puri at a revised purchase consideration of 3.5 trillion rupiah (S$330.2M).
PT Mandiri Cipta Gemilang is a wholly-owned subsidiary of PT Lippo Karawaci Tbk, the sponsor of LMIRT. Read more>>
The Singapore Exchange (SGX) has granted approval in-principle to the manager of CapitaLand Mall Trust (CMT) to list up to 2.78B new units of CMT on August 28. The units are to be issued as part consideration for the merger between CMT and CapitaLand Commercial Trust (CCT). SGX, on the same day, said that it does not object to the delisting of CCT from the official list of the SGX-ST, once the trust scheme becomes effective.
On January 22, CMT and CCT announced their proposal to merge into a diversified commercial real estate investment trust (REIT). The enlarged REIT will be named CapitaLand Integrated Commercial Trust (CICT), and is expected to have a market capitalisation of S$16.8B, and combined property value of $22.9B. Read more>>
A fund of private equity firm Elite Partners Capital has acquired a warehouse in Mszczonów, Poland for more than 30 million euros (S$48.6M) from P3 Logistics Park, a wholly-owned subsidiary of Singapore sovereign wealth fund GIC.
The 58,500 square-metre (sq m) facility is the largest warehouse in PepsiCo Poland’s distribution network, Singapore-based Elite Partners said in a statement on Monday. Read more>>
China Evergrande, the country’s biggest property developer by sales, is confident of achieving its sales target even as the group faces its biggest financial challenge after profit slumped on impact from the Covid-19 outbreak. It will focus on paring its debt burden.
The developer posted a 24 per cent gain in contracted sales to 348.8 billion yuan (US$50.9 billion) this year through June, according to data published on Monday, along with an interim report showing a 56 per cent year on year slump in earnings to 6.54 billion yuan while margins shrank. Read more>>
Capital from mainland China is likely to be the main source of investment in Hong Kong property in the foreseeable future, analysts said, as Chinese businesses face deeper scrutiny elsewhere amid worsening relations with a number of western countries, particularly the US and Australia.
In the first half of the year, mainland Chinese investment in Hong Kong real estate picked up and accounted for almost all cross-border investment versus 61 per cent of the total a year earlier, according to the latest report by property consultancy Colliers. Mainland Chinese also accounted for 11 per cent of total leasing deals on premium office space in Hong Kong. Read more>>
Hong Kong’s home prices declined in July by the fastest pace in five months as a third wave of the coronavirus pandemic in the city curbed buying interest and prompted homeowners to offer deeper discounts. Data for August may disappoint further, analysts said.
Prices for lived-in homes weakened 0.5 per cent from June, according to an index published by the Rating and Valuation Department on Monday, the most since a 1.7 per cent pullback in February. The decline halted a two-month advance in prices. Read more>>