Japan Hospitality Surge Continues with Sapporo Buy and More APAC Real Estate Headlines

A hotel deal in Japan’s northern island leads today’s headline roundup on Mingtiandi as fund managers bet on travel in Asia’s second largest economy. Also making the list today are predictions of a rate hike in Australia and a successful finance move by a Sydney retail REIT. 

AB Capital Buys Sapporo Hotel in 12th Japan Hospitality Acquisition

Private equity real estate fund manager AB Capital Investment Limited has acquired a 123-room business hotel in Sapporo, marking the firm’s 12th acquisition in Japan, according to an announcement on Thursday. Built in 2018, the Smile Hotel Sapporo Susukino Minami was acquired under AB Capital Fund II and is operated by Hospitality Operations Inc., which manages 74 Smile Hotel-branded properties across Japan.

The Sapporo market is drawing investor interest on the back of rising inbound tourism and improving connectivity, with a Shinkansen extension set to link Tokyo and Sapporo in under five hours. New international routes include doubled Qantas capacity from Sydney and a planned nonstop Air Canada service from Vancouver launching in December 2026. Read more>>

Aussie Central Bank Expected to Lift Rates to 4.35%

Australia’s central bank will raise its cash rate by 25 basis points to 4.35 percent at its 5 May meeting, according to 30 of 33 economists polled by Reuters, marking a third consecutive increase that would fully reverse last year’s cuts. Inflation jumped to 4.1% in the first quarter, pushed higher by fuel costs after the closure of the Strait of Hormuz kept crude prices above $100 a barrel.

More than a third of economists now expect the cash rate to reach at least 4.60 percent by the end of the third quarter, a view held by none in a March poll. Westpac forecasts a peak of 4.85 percent, while ANZ, CBA and NAB see rates topping out at 4.35 percent. AMP economist My Bui warned that entrenched inflation expectations would be “much harder to unwind” if the RBA failed to hold a hawkish line. Read more>>

Sydney’s Scentre Retires $1.3B in Subordinated Notes After Successful Tender

Australian shopping centre REIT Scentre Group has closed a tender offer for its $1.3 billion (A$1.8 billion) Non-Call 2030 Subordinated Notes, with holders of approximately 89 percent of the securities accepting the offer. Settlement is scheduled for 5 May, after which Scentre will redeem the remaining notes at par, leaving the group with liquidity of approximately A$3.2 billion ($2.0 billion), according to an ASX announcement on Friday.

The Sydney-based owner of Westfield-branded malls in Australia and New Zealand maintained its full-year funds from operations target of at least 23.73 Australian cents per security, representing growth of at least four percent, and guided for distributions to grow by four percent to 18.43 Australian cents per security. Chief executive Elliott Rusanow said the transaction is part of the group’s capital management strategy to deliver long-term earnings growth. Read more>>

Shenzhen Relaxes Housing Rules to Spark Market

China’s tech hub of Shenzhen will ease home buying restrictions in the city’s prime districts and raise housing provident fund loan caps in the latest attempt by authorities to contain the nation’s prolonged property slump.

Non-local households with a valid residence permit will be allowed to buy one commercial home in Futian, Nanshan and Xin’an Subdistrict of Bao’an starting from April 30, according to a statement from the local housing authority released on Wednesday. Previously in these prime areas, buyers need to have paid social security or individual tax for a year to become eligible for homebuying. Read more>>

Bank of America Positive on China Housing as Recovery Begins

As China’s bear housing market enters its fifth year, a growing number of global investment bank analysts and property agents are increasingly optimistic on the sector, underscoring a positive view on its outlook fuelled by upbeat data in April.

Bank of America holds a positive stance on the sector and believes the “green shoots” of a recovery are visible, it said in a report issued in late April. After five consecutive years of weakness, the bank said “market recovery sustainability is becoming more evident”, adding that it expected the rebound to be over the long term. Read more>>

Shinsegae Aims to Create Korea’s Roppongi Hills

 A Korean version of Roppongi Hills will go up in Busan’s posh Haeundae District, led by retail giant Shinsegae under the helm of Chairman Chung Yu-kyung.   The upcoming real estate development in Korea’s second-largest city marks notable progress for Shinsegae since its full-scale entry into real estate development last year.      

On a 16,515-square-meter (4.08-acre) lot inside Centum City, Shinsegae will build a hotel, offices, high-end housing  for older adults and retail facilities, according to retail and property industry sources on Tuesday.   If approvals proceed smoothly, construction could begin in the second half of next year. The project is expected to mark Shinsegae’s first full-scale role as a developer, overseeing everything from land acquisition to sales. Read more>>

Arrow Capital, Cerberus Secure A$342M Refinancing for Australian Logistics Portfolio

Arrow Capital Partners and US alternative investment firm Cerberus Capital Management have refinanced A$342 million of debt across their SIRE industrial and logistics joint venture in Australia, with NAB and Macquarie Group providing the facilities. The SIRE platform is a joint venture between the two firms spanning Europe and Australia.

The partners said the new facilities have enabled them to return equity to investors while providing working capital to continue building the portfolio toward a core-plus institutional investment vehicle. The venture completed 10 leases across 41,500 square metres (446,700 square feet) of light industrial and logistics space in Australia over the past 12 months. Read more>>

CDL Chief Exec Welcomes Strategic Review After Family Feud

An ongoing strategic review being done by City Developments Ltd was “timely” after the company went through “some difficulties” and internal disputes last year, group chief executive officer Sherman Kwek told a packed shareholders’ meeting on Wednesday. 

The property giant is looking to “revamp” its strategy and better articulate its value to investors, and has appointed global advisory firm Teneo for the task. Read more>>

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