OMERS took a cornerstone stake in ESR’s IPO last year
Warehouses lead Mingtiandi’s real estate headlines from around the region today, with Warburg Pincus selling 7 percent of Hong Kong-listed ESR to a Canadian pension fund manager that had taken a cornerstone stake in the logistics developer’s IPO.
Also in the news, Singapore’s sovereign wealth fund has signed up for its own cornerstone stake in an Indian office REIT IPO, a Bangkok-based investment advisor is betting that now is a good time to buy up hotel assets, and there are still more stories in our headline roundup.
Warburg Pincus Sells 7% ESR Stake to OMERS
Canadian pension manager OMERS Administration is hiking its 9.0 percent stake in ESR Cayman by acquiring an additional 7.0 percent valued at HKD 3.92 billion (USD 505.63 million) in the stock market from Warburg Pincus’ WP OCIM One.
The non-share capital corporation, which acts as the administrator of the pension plans governed by the Ontario Municipal Employees Retirement System, was a cornerstone investor on the Cayman Islands-incorporated logistics real estate developer’s initial public offering (IPO). Read more>>
GIC, Fidelity Take Cornerstone Stakes in Blackstone’s India REIT
Mindspace Business Parks REIT, a real estate investment trust invested by K Raheja Corp and Blackstone, has received commitment worth Rs 1,125 crore ($150.8 million) from institutional investors including Singapore government’s sovereign fund GIC NSE 1.92 %, affiliates of Fidelity Group, Capital Group, Fullerton Group. With this, the proposed REIT has already received response for 25% of the issue size by strategic investors.
Total REIT units proposed to be subscribed by strategic investors will be 4.09 crore and will be allotted to them at Rs 275 per piece, according to the offer document filed with the Securities & Board of India (SEBI). Read more>>
Blackstone’s Embassy Office Park REIT Doubles Rent Collections
Embassy Office Parks, India’s first listed real estate investment trust (REIT) and the largest in Asia by area, said on Monday its rental collections for the first quarter (April to June) from office occupiers remained robust at 97 per cent.
The office rental collections were 98 per cent in April and May, and 95 per cent in June, it said in an operational update for Q1 FY21. There were rental increases of 14 per cent on 1.8 million square feet across 22 office leases. Read more>>
Bangkok’s Destination Capital Launches Hotel Acquisition Platform
Bangkok-based real estate advisory firm Destination Capital will join forces with its capital partners to acquire, manage and rebrand hotel assets in Thailand and across Asia-Pacific in a bid to revitalise the hospitality sector.
Destination Capital (DC) was recently formed as an investment fund to partner with private equity and institutional funds to source hotel acquisition opportunities and asset manage in the Asia-Pacific region, with an emphasis on Thailand. The company is part of Asia’s leading hospitality operator, Destination Group, which has a 24-year track record in Thailand of buying, repositioning, asset managing and selling hotels. Read more>>
IGIS Fund Buys Seoul Apartment Block for $33M
A private equity fund under IGIS Asset Management has purchased an apartment building in Gangnam, an affluent district in central Seoul and hot real estate zone, and is expected to package a fund to capitalize on frenzied housing investment while avoiding heavy regulations.
According to multiple sources from the financial investment and real estate industries on Sunday, a PEF operated by IGIS bought Samsung World Tower, an 11-story apartment building housing 46 households, at around 40 billion won ($33.2 million). Read more>>
Keppel REIT Distribution Climbs 0.7% in Q2
KEPPEL Reit (real estate investment trust) declared a distribution per unit (DPU) of 1.40 Singapore cents for the second quarter ended June 30, a notch above its DPU of 1.39 Singapore cents from the same period a year ago.
Distributable income was up 0.4 per cent to S$47.5 million, including capital-gains distribution of S$5 million for Q2. This was despite net property income declining by 7.2 per cent to S$28.8 million from a year ago. Read more>>
Tahoe Defaults Could Be Sign of the Future
PAYING top dollar for land when money is cheap and then selling apartments at a premium seems like a viable business model – until a global pandemic brings both housing and capital markets to a standstill. China’s developers are learning this the hard way, and the Tahoe Group is a case in point.
The Fuzhou-based home builder, known for its luxury villas, recently became the first large residential developer in China to default on a bond in five years. Read more>>
Tune in next week for more real estate news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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