Mapletree Group CEO Hiew Yoon Kong
Singapore-listed developer and investor Mapletree issued a flurry of news this week, including plans to raise $751 million in new cash through unit sales in a listed trust. In Hong Kong, Hang Lung’s Ronnie Chan, who bet heavily on China’s shopping mall market, says these are the toughest times yet. Read on for all these stories and more.
Mapletree to Raise $751M From New Share Sales
Singapore-listed Mapletree Commercial Trust is planning to raise S$1 billion ($751 million) from a pair of equity offerings, taking advantage of investors’ desire for a safe yield play.
The trust turned to a mix of new and old investors for its latest capital-raising, closing a private placement of 364.8 million new investment units and launching a non-renounceable preferential offering of 362.8 million investment units to existing unitholders. Read more>>
Mapletree REIT Ups DPU by 9.1%
Mapletree Greater China Commercial Trust (MGCCT) announced 9.1 per cent growth in distribution per unit (DPU) for the fiscal first quarter ended June 30, 2016 to 1.85 Singapore cents, due to an enlarged portfolio and higher revenue.
The REIT reported an 11.9 per cent jump in gross revenue to S$84.96 million and 11.2 per cent increase in net property income to S$69.42 million for the quarter compared to the previous year. Read more>>
Hang Lung’s Ronnie Chan Says Times are Toughest Yet
Hang Lung Properties, which focuses on investing in shopping malls in Hong Kong and mainland China, says the business environment has never been as tough as at this time and the retail sector will face more challenges ahead.
“US elections, Brexit, terrorism, and China’s slowing economy, these are all problems, I have never seen so much market uncertainty at the same time in my decades of experience,” chairman Ronnie Chan told reporters at the firm’s interim results briefing yesterday. Read more>>
Fortune REIT Earnings Rise 6% in 1H
Healthy rental reversion and renovations at a Hong Kong mall boosted Fortune Real Estate Investment Trust’s (Reit’s) earnings for the first half of this year. Distribution per unit (DPU) for the six months to June 30 rose 6 per cent to 24.78 HK cents (4 Singapore cents) as compared with the same period last year. It will be paid on Aug 29.
Based on the closing unit price of HK$9.25 as at June 30 in Hong Kong, the DPU implied an annualised distribution yield of 5.4 per cent. Read more>>
HK Developers to Continue Discounting as Home Supply Grows
Hong Kong developers will continue to adopt their low-price strategy, after government estimates revealed the potential supply of new flats is expected to hit 93,000 over the next three to four years, the highest level since September 2004.
The latest supply estimate from the Transport and Housing Bureau is the equivalent of an average 23,000 new flats per year. Read more>>
Guangzhou Cuts Unsold Housing Supply to 8.4 Months
Guangzhou, China’s fourth largest city, has seen its housing inventory reduced to 8.4 months worth of sales, amid a nationwide effort to clear unsold properties, but a significant oversupply remains of commercial properties.
The amount of available new home space dropped 960,000 square metres in the first half to 21.52 million square metres at the end of June, representing 8.4 months worth of sales, Guangzhou mayor Wen Guohui said on Wednesday. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.
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