In today’s roundup of regional news headlines, South Korea pauses warehouse development as lawmakers work on upgrading safety standards after a June fire, Singapore-listed Keppel DC REIT announces plans to sell an Australian data centre, and developer Sino Land’s profit surges on an increase in property sales.
South Korean landowners, particularly in the Seoul area, were recently forced to stop negotiations with the would-be buyers of their land-to-be distribution centres, as local governments have been sitting on applications for new warehouse construction for about a month.
The municipal governments have shelved new construction permits on warehouses after lawmakers proposed a series of bills aimed at tightening safety standards on new construction following the devastating fire at Coupang’s distribution centre in June. Read more>>
Keppel DC REIT plans to sell the iSeek Data Centre in Brisbane to iSeek Pty Ltd for A$34.5 million ($25.2 million), the REIT said Friday in an SGX filing.
“The divestment is in line with Keppel DC REIT’s strategy to continually review and selectively consider divestments to ensure an optimal portfolio mix,” the trust said. Read more>>
Sino Land Co’s net profit surged nearly five times to HK$9.65 billion (now $1.24 billion) in the year ending 30 June, primarily due to an increase in property sales.
The underlying profit, excluding the effect of fair-value change on investment properties, was HK$10.32 billion, an increase of 126 percent. Read more>>
Hong Kong’s homebuyers plunged into the market for fear of missing out as prices approached a record high, helping Sun Hung Kai Properties to record its second sell-out weekend.
All 300 apartments on offer at the Wetland Seasons Bay in Tin Shui Wai were sold at 7pm, as buyers shrugged aside an 11 percent price increase, which raised the average price to HK$15,176 ($1,949) per square foot from last week’s HK$13,698 per square foot. Read more>>
Debt reduction will be a top priority for Chinese developers until 2023, with many of them actively taking steps to lower their liabilities and avoid coming under further scrutiny from regulators who are determined to improve the sector’s financial health, say analysts.
With most developers reducing borrowings and trimming debt, market observers also expect mainland Chinese real estate companies to be less aggressive in their expansion plans, as their profit margins have been squeezed by a series of cooling measures to curb price growth. Read more>>
Wealthy investors who supported Chinese billionaire Xu Jiayin’s empire are now paying a heavy price amid growing concern the group will struggle to repay its debts.
Xu had long been able to count on his poker pals to back China Evergrande Group during times of trouble, whether it was by buying stakes in his company, loading up on its bonds or refraining from calling in debts. Read more>>
South Korea on Friday saw its first public REIT debut on the domestic stock market this year, with more debutants headed for listing soon.
D&D Platform REIT, which holds office and industrial portfolios at home and abroad, started trading on the Korea Exchange‘s main board on Friday. Read more>>