McDonald’s leads the way in Mingtiandi’s roundup of Asia real estate headlines today with news that the company that made Ronald McDonald a household name is putting its Tsim Tsa Shui restaurant on the market for HK$1B ($127 million), with or without a side of fries, while Hong Kong’s most famous property big cheese is considering selling off his stake in a $3 billion Shanghai development.
In other news around the region, UBS says mainland Chinese want more Hong Kong property, and home sales record a big jump in the southeastern city of Shenzhen.
Elsewhere, a new $1 billion Asia fund has been set up by a big US real estate investment firm, while in the world of co-working a Singapore provider signs three deals in Taipei.
The US fast food giant McDonald’s is seeking to sell a prime street level shop in Hong Kong worth HK$1 billion ($127.4 million), 15 times the HK$66 million it paid 30 years ago, but property agents say that very few investors will be willing to make such a huge investment in the current economic environment.
McDonald’s is seeking tenders for a 4,260-square foot shop (396 square metres) at Star House on Salisbury Road in Tsim Sha Tsui, currently occupied by the health and beauty chain Watsons, which has been renting the space for more than 20 years, according to JLL, the sole agent. Read more>>
CK Asset Holdings Ltd, one of Hong Kong’s biggest developers, is considering selling its stake in a large project in Shanghai, according to people familiar with the matter.
The landmark project – Upper West Shanghai in the city’s northwestern Putuo district – was billed as one of the largest mixed-used developments in the financial hub when construction started in 2011. A sale could value the entire project at about RMB 20 billion ($2.9 billion), the people said, asking not to be identified because the discussions are private. CK Asset has a 60 percent interest. Read more>>
Greenoak Real Estate, which is merging with fellow real estate fund manager Bentall Kennedy, is seeking to raise $1 billion for its latest Asian fund, according to an investor.
Texas Permanent School Fund said in a board meeting report that it will invest $75m in GreenOak Asia III and disclosed the fund manager’s fundraising target. Read more>>
Shenzhen home sales touched a record high in April amid falling mortgage rates, population influx and a cyclical upturn in sentiment, according to official data.
But industry analysts and agents were quick to point out the surge in April reflected mostly an increase in March and early April, when buyers returned to the market with an upbeat outlook and pushed up sales volumes. This is because of a lag between actual sales and official registration. Read more>>
Singapore-based JustCo is setting up three new co-working centres in Taipei. The move brings the company’s network to 32 centres in eight cities.
JustCo announced in January that it was entering South Korea and Australia, with the opening of six co-working spaces in Melbourne, Sydney and Seoul. Read more>>
Hong Kong is the most favourable offshore real estate market for mainland Chinese, despite an escalation in US-China trade tensions and concerns over a controversial extradition law that will extend Beijing’s power over the city, UBS said on Tuesday.
These two developments are expected to have limited impact on Hong Kong’s housing prices, UBS said, forecasting an uptrend in the next decade as increasing numbers from the mainland choose to live or invest in the financial hub with one of the world’s most expensive real estate markets. Read more>>
Thailand’s Elite Residence Programme, which is designed to attract entrepreneurs and high-net worth individuals, saw a sharp uptick in interest from mainland Chinese applicants last year, with more than 700 submissions – a rise of nearly seven times in three years.
The surge in applications comes as mainlanders face barriers to traditionally favoured immigration destinations such as Australia and Canada, while Thailand has highlighted its temperate climate and elite treatment for qualifying applicants.