Perennial chief Pua Seck Guan is in the lead to buy out United Engineers
Singapore takes centre stage in Asia’s real estate world today as the city state sees a flurry of property activity, including the impending $1.3 buyout of developer United Engineers. Also in the news, Prudential unit PGIM picks up a logistics facility in the Lion City and Mapletree posts record earnings. Read on for all these stories and more.
Perennial in Exclusive Talks for Buyout of $1.3B United Engineers
United Engineers Ltd.’s largest shareholders picked Perennial Real Estate Holdings Ltd. for final talks to buy the century-old Singapore property group, people with knowledge of the matter said.
Perennial, led by Chief Executive Officer, edged out other suitors including KKR & Co. and SingHaiyi Group Ltd. that also submitted final bids, the people said, asking not to be identified because the information is private. An agreement could be reached as soon as this month for United Engineers, which has a market value of S$1.8 billion ($1.3 billion), according to one of the people. Read more>>
PGIM Buys Singapore Cold Chain Facility
PGIM Real Estate has recently completed the acquisition of a food storage and distribution centre at 1 Buroh Lane in Singapore, on behalf of a pan-Asia value-add fund it manages for institutional investors.
1 Buroh Lane is a multi-temperature controlled food storage and distribution center comprising approximately 60,000 square meters across five levels of high-specification warehouse space. The centre includes freezer and refrigerated facilities and three levels of mezzanine office areas. Completed in January 2016, the property has secured a significant long-term anchor tenancy from one of the largest supermarket chains in Singapore. Read more>>
HK Home Prices Hit Record High After 13 Months of Increases
Hong Kong’s residential property prices, already the world’s highest based on square footage, rose in April for the 13th straight month to a record, surpassing the market’s previous peak of 2015, further underscoring the imperative on the city’s government and monetary authority to deflate the bubble.
The monthly home price index, which represents movements in the second-hand property market, rose 2.1 per cent to 327.4 in April, compared with 320.6 in March, according to the Rating & Valuation Department’s data. Year on year, home prices jumped 19.8 per cent in April. Read more>>
Evergrande Raises $5.8B for Mainland Entity
Chinese property developer Evergrande has raised Rmb39.5bn ($5.79bn) from the second-round stake sale in its unit Hengda Real Estate.
Evergrande said in a filing to the Hong Kong stock exchange it had now raised a total of Rmb70bn through selling an approximately 26.12 per cent stake in Hengda through the first and second round investment agreements. Evergrande’s Kailong Real Estate will retain 73.88 per cent of Hengda on completion of the deal. Read more>>
Mapletree Posts Record S$1.4B Earnings
Temasek Holdings-owned Mapletree Investments saw net profit jump 46.5 per cent last year to hit a record high of $1.41 billion. The stellar showing was backed by strong recurring earnings, investment and other gains, including revaluation gains.
Those factors helped the group book a return on equity of 12.8 per cent, up from 9.6 per cent a year earlier, Mapletree said yesterday. Read more>>
Singapore to Sell Off 3 Sites Yielding Nearly 2000 Homes
Three sites were put on the market yesterday that could yield 1,955 homes in total. Analysts expect one of the sites, in Woodleigh Lane, will draw the strongest interest from developers.
It is next to Woodleigh MRT station, adjacent to the Bidadari New Town and near amenities such as Nex shopping mall. Schools in the area include St Andrew’s Secondary, Cedar Girls’ Secondary and Maris Stella High. The 19,547 sq m site has a maximum gross floor area of 58,641 sq m. Read more>>
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