MItsubishi and UBS are said to be shopping their Japan property management JV
In today’s roundup of regional news headlines, real estate manager Mitsubishi Corp-UBS Realty reportedly contemplates putting itself up for sale, South Korea’s POBA invests in US multi-family assets alongside a California pension fund, and Hong Kong developer Swire Properties reaps double-digit gains in mainland mall revenue.
Mitsubishi, UBS May Seek $1.7B in Real Estate JV Sale
Mitsubishi Corp and UBS Asset Management, part of UBS Group AG, are considering the sale of a jointly owned real estate management company for about JPY 200 billion ($1.7 billion), people with knowledge of the matter said.
Mitsubishi UFJ Trust & Banking Corp has emerged among possible buyers of the joint venture, called Mitsubishi Corp-UBS Realty, said the people, who asked not to be identified. Read more>>
POBA, CalSTRS Invest $235M in Two US Multi-Family Assets
The Public Officials Benefit Association of South Korea and the California State Teachers’ Retirement System have jointly invested $235 million in two multi-family assets in the US, an official of Koramco Asset Management told the Korea Economic Daily.
One asset is The Buchanan, a 15-storey building with 286 units in Midtown Manhattan. POBA and CalSTRS invested $160 million in the asset, expecting an 8.4 percent return. The current rental rate of the asset is around 80 percent. Read more>>
Singapore’s GIC Hunts Returns in Low-Interest World
As the world’s most acquisitive sovereign wealth fund turns 40, it’s never had so much money to manage — nor faced more challenges trying to manage it.
Two investment pillars that have helped fuel growth for Singapore’s GIC — China and bonds — are under siege from inflation, geopolitics and regulatory crackdowns. The national budget, meanwhile, requires ever more revenue, putting pressure on GIC to deliver robust returns, prompting one of the biggest asset pivots in its history. Read more>>
Swire Reports Mainland Mall Revenue Rebound
Hong Kong-based Swire Properties saw double-digit gains in retail revenue across its mainland China assets, according to a fourth-quarter operating report released last Friday.
The group’s two Beijing malls, Taikoo Li Sanlitun and One Indigo, saw 27 and 11 percent year-on-year growth, while Chengdu’s Taikoo Li shopping centre saw revenue grow 21.9 percent on the year. Taikoo Hui Guangzhou had the group’s biggest yearly jump in revenue, up 33.4 percent, but Taikoo Hui Shanghai was not far behind with revenue growth of 28.8 percent. Read more>>
China Eases Property Loan Curbs as Housing Market Slumps
China eased a year-long cap on loans for the real estate sector to fund public rental housing, the latest bid by authorities to tackle a slumping property market.
Bank loans to fund low-cost rental projects will no longer be subject to regulatory curbs, the People’s Bank of China said Tuesday. The rules required banks to trim their loan exposure to the property sector to a certain level. Read more>>
Hotel Grand Central to Sell Office Building in Australia for A$80.8M
Singapore’s Hotel Grand Central has reached an agreement to sell an office building in Melbourne for A$80.8 million ($57.5 million).
The property was purchased in 2013, with a seven-year lease to then-vendor Victoria University for A$51.45 million (including stamp duty). Victoria University occupies the entire property as a tenant and currently pays a rent of about A$5.36 million a year, plus outgoings. The tenancy, which was extended, expires in October 2022. Read more>>
Adani-EdgeConnex Data Centre JV Establishes Mumbai Project
The Adani-EdgeConneX Indian joint venture has set up a new subsidiary as it prepares to develop a data centre in Mumbai.
In a filing this week with the BSE, Adani said AdaniConneX Private Ltd, its JV with EdgeConneX, has incorporated a wholly owned subsidiary called Mumbai Data Center Ltd. Read more>>
Hong Kong Lived-In Homes See Valuations Drop
The valuations of Hong Kong’s lived-in homes are expected to head south as a fifth COVID-19 wave linked to the Omicron variant takes hold and deals plunge because of fewer viewings, brokers said.
Banks may reduce valuations by 1 to 2 percent in February and by another 1 percent next month, with midscale estates like Kornhill Garden and Taikoo Shing expected to bear the brunt. Read more>>
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