Victor Li (left) may need to ask his dad if COVID-19 is another word for kryptonite
More Hong Kong gloom leads today’s round-up of real estate news from around Asia, as the city’s second-largest developer saw its underlying profit drop by more than a third during the first six months of 2020.
While the virus crisis is crimping finances in Hong Kong it hasn’t stopped Shanghai’s Fosun from travelling to eastern Europe for an office acquisition, and Gaw Capital is announcing the relaunch of a Hollywood shopping mall it acquired one year ago.
Hong Kong’s Second-Largest Developer Reports 35.5% 1H Drop in Profit
CK Asset, Hong Kong’s second biggest property developer by market capitalisation behind Sun Hung Kai Properties, reported an underlying profit, excluding investment property revaluation and property disposals, of HK$8.4 billion in the first half of the year, a decline of 35.5 per cent from the same period in 2019.
The company previously warned in May that its profit for the first half could be materially reduced because of lower property sales in the first quarter and a negative contribution from its hotels division, as well as the temporary closure of its pubs in the United Kingdom because of the Covid-19 outbreak. Read more>>
Fosun Said to Buy €70M Bucharest Office Building
Fosun, one of the largest investment companies in China, bought the Floreasca Park office project in Bucharest, Romania from German fund GLL. The Shanghai-based company carried out the acquisition through the Resolution Property Investment Management division, acting as a value-added real estate investment manager.
The Floreasca Park office project, completed at the end of 2013 by Portland Trust in one of the hottest office areas in Bucharest, has a leasable area of 37,500 sqm and involved investments worth EUR 70 million. Among the building’s main tenants are Oracle, Allianz, Kellogg’s, and BASF. Read more>>
CalPERS CIO Ben Meng Resigns From US Pension Fund
California Public Employees’ Retirement System Investment Chief Ben Meng has resigned after about a year and a half in the position at the nation’s largest pension fund, according to the fund.
It marks an abrupt exit for the investment chief, who set out to implement a reform agenda at the giant pension. Mr. Meng cut ties with a real-estate developer on a high-profile hometown property project, fired underperforming stock pickers and pushed staffers to take a closer look at private asset valuations. Read more>>
Gaw Capital Launches Hollywood Retail Project
Gaw Capital USA, a Hong Kong and Los Angeles-based real estate private equity firm, together with DJM, a San Jose and Los Angeles-based private equity real estate developer, today unveiled their vision and plans for the famed shopping center at Hollywood & Highland, which includes a major design update and new name, Ovation Hollywood.
Upon completion in late 2021, Ovation Hollywood will finally be transformed into a vibrant, mixed-use project that includes 135,000 square feet of retail, two floors of nearly 100,000 square feet of creative office space, 85,000 square feet of dining, 65,000 square feet of entertainment space, and 40,000 square feet of event space. Read more>>
DBS Says Singapore Property Stocks “Too Cheap to Ignore”
DBS Group Research on Thursday called Singapore’s property developers “too cheap to ignore”, citing attractive valuations.
The research team said in an industry note that the developers are well-equipped and capitalised to overcome near-term operational headwinds. Read more>>
Foreign Purchases of Korean Apartments Hit 10-Year High
Foreign investors have stepped up apartment purchases in South Korea in recent years, adding fuel to the already heated residential property market which reported the biggest monthly rise in almost 10 years in July.
In the first five months of the year, foreigners snapped up 1.25 trillion won ($1.05 billion) worth of apartment houses in Korea totaling 3,514 in terms of transactions, according to the National Tax Service on August 3. Read more>>
India’s DLF Reports Q2 Loss
India’s largest real estate company DLF Group has reported a consolidated net loss of Rs 72 crore in the April to June quarter as against a net profit of Rs 414 crore in the same period a year ago.
The company’s consolidated revenue from operations declined to Rs 549 crore as against Rs 1,331 crore in Q1 FY20 due to crashing sales amid the COVID-19 countrywide lockdown since March-end. Read more>>
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