Korean Investors Face $270M Loss on Vegas Hotel and More Asia Real Estate Headlines

In this edition of our regional news roundup, South Korean investors move a step closer to losing their shirt on a Las Vegas bet, Singapore’s finance minister sounds the alarm on ultra-low interest rates, and Hong Kong-listed Chinese tech firms chase cheap offices in a famed Kowloon shopping district.

Korean Investors Face $270M Loss on Vegas Hotel Loans

South Korean investors in the Drew Las Vegas development project are at higher risk of losing their investment of KRW 300 billion ($271 million) in the stalled development project in Nevada, after its senior lenders decided to sell the security interest on their loans to a third party.

The developer Witkoff Group defaulted on a $2 billion project loan in May of last year, after its construction was shelved due to the COVID-19 pandemic. Read more>>

Korean REIT Backed by Amazon Japan Warehouse Eyes $280M IPO

A South Korean REIT backed by Amazon’s largest logistics centre in Japan and an office complex in Seoul is planning to raise KRW 310 billion ($281 million) in an initial public offering expected to take place as early as March.

The REIT is currently selling some of its shares to institutional investors in a pre-IPO placement, with an aim to list on the Korea Exchange between March and April, according to its IPO lead manager NH Investment & Securities. Read more>>

Singapore Deputy PM Flags Risks of Property Market Overheating

Deputy Prime Minister and Finance Minister Heng Swee Keat warned that low interest rates can lead to distortions in asset prices, amid speculation that the Singapore government may take fresh steps to cool the housing market.

“Interest rates today are ultra-low, and in some cases even negative, so this can lead to a significant mispricing of asset prices and a significant risk of investing in the wrong places,” Heng said in an interview with Bloomberg TV. Read more>>

HK-Listed Mainland Tech Companies Rush for Tsim Sha Tsui Offices

Cheaper rents and proximity to the high-speed rail link between Hong Kong and mainland China are likely to boost shopping haven Tsim Sha Tsui’s standing as a preferred location for Chinese tech companies looking to go public via the city’s stock exchange, according to analysts.

The forecast comes after Tencent, which has been listed on the local bourse for some years, recently expanded its footprint in Hong Kong by leasing a 10,000 square foot (929 square metre) office space in The Gateway, a building owned by Wharf Holdings in the district. It has other offices at Three Pacific Place in Wan Chai and the World Finance Centre, also in Tsim Sha Tsui. Read more>>

Soilbuild REIT Adviser Says Buyout Offer is ‘Fair and Reasonable’

As Soilbuild Business Space REIT’s appointed independent financial adviser, KPMG said the offer to take the REIT private at S$0.55 ($0.41) per unit is “fair and reasonable” and recommended that the REIT’s independent directors advise unitholders to vote in favour of the scheme of arrangement.

Since the REIT declared a Q4 distribution of 1.194 Singapore cents per unit, the scheme consideration has been adjusted to 53.806 Singapore cents per unit. Read more>>

Lodha to File Draft Papers for Public Listing This Week

Lodha Developers, now known as Macrotech Developers, is planning to file a draft red herring prospectus this week for an initial share sale, two people familiar with the development said, as investor sentiment improves and home sales rise.

The Mumbai-based developer plans to raise INR 2,500-2,700 crore ($343.5 million-$371.1 million) through the IPO, the people cited above said, about half the INR 5,500 crore it targeted in 2018. Read more>>

Millennium & Copthorne New Zealand Faces Cancellations

Millennium & Copthorne Hotels New Zealand, a subsidiary of Singapore’s City Developments Ltd, says it has received “multiple cancellations” for bookings over the week of 16 February and the following weeks in the same month due to the Covid Alert Level changes made by the New Zealand government on 14 February.

“Some events which cannot be held under Level 2 and Level 3 restrictions have also had to be cancelled and, where possible, these have been postponed to a new date,” M&C New Zealand said. Read more>>

Singapore Condo Complex Cuts Price in Second En Bloc Attempt

The owners of 999-year leasehold condominium Jansen Mansion are making a second attempt at a collective sale on Thursday, this time at a lowered reserve price of S$19.8 million ($14.9 million) from S$22 million in 2018.

The new reserve price translates to a land rate of S$879 per square foot per plot ratio, inclusive of development charge and 7 percent bonus balcony space. Read more>>

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