Ares Makes Discounted Offer on $1.3B Hong Kong Loan and More Asia Real Estate Headlines

Ares Management leads Mingtiandi’s headline roundup today as the alternative investment manager is said to be making a discounted offer for a $1.3 billion loan tied to a Hong Kong project developed by distressed Chinese builders Logan and KWG. Blackstone also makes the news with its $10 billion deal to buy a US apartment REIT and Singapore’s Straits Trading has sold an industrial property in Adelaide.

Ares Offers to Buy $1.3B Loan on KWG-Logan Hong Kong Project at a Discount 

Alternative investment manager Ares Management has sent a proposal in recent days to some banks to buy out a stake in a HK$10.2 billion ($1.3 billion) project loan backing luxury development The Corniche in Hong Kong, according to people familiar with the matter.

In its initial proposal, Ares is offering a price of 95 cents on the dollar for the syndicated loan, said the people, asking not to be identified discussing private matters. Ares is seeking to buy a majority stake, or two-thirds of the loan, according to one of the people. Read more>>

Blackstone $10B Deal Is Latest Bet Property Near Lows 

Blackstone struck a roughly $10 billion deal for an apartment landlord in the latest sign that the real estate investor sees a ripe moment to pour money into the property market.

Blackstone agreed to acquire Apartment Income REIT, known as AIR Communities, in an all-cash deal for $39.12 a share, according to a statement Monday. That’s a 25 percent premium from the company’s share price of $31.35 at the close of trading on Friday. Read more>>

Singapore’s Straits Trading Selling Adelaide Property for $35M

Straits Trading is selling one of its industrial properties in South Australia for A$52.7 million ($34.8 million) — an amount more than A$10 million below an independent valuation.

Disclosing this on Friday, the Singaporean conglomerate said the purpose-built distribution facility in Adelaide’s Kilkenny suburb was valued by CBRE Valuations at A$64.3 million as of 31 December 2023. Read more>>

Canada’s CDPQ Says India Has “Cracked the Code” on Attracting Foreign Capital

Despite simmering diplomatic tensions between New Delhi and Ottawa following Canadian Prime Minister Justin Trudeau’s allegations of “potential” involvement of Indian agents in the killing of Khalistani separatist Hardeep Singh Nijjar last June on Canadian soil, the boss of Canada’s 2nd largest pension fund, Caisse de dépôt et placement du Québec, said the US and India are the only two outperforming markets in the world.

Without getting drawn into the specific allegations New Delhi has rejected as “absurd” and “motivated”, Charles Emond, chief executive, CDPQ, said he did not want to comment on government relations, but added “India is an important part of our APAC strategy,” during an exclusive interaction with ET. “And it remains a country where we continue to see strong potential over the long term.” Read more>>

CDL Marketing Singapore Strata Units for $110M

Singapore-listed property giant City Developments Ltd has launched for sale its 44 remaining strata-titled industrial units at Cititech Industrial Building on Aljunied Road in the east and 53 remaining units at Citilink Warehouse Complex on Pasir Panjang Road in the west. ERA, Cushman & Wakefield and JLL have been appointed exclusive joint marketing agents for the sale of the units by private treaty.

“CDL is divesting all the units it currently owns at Cititech Industrial Building and Citilink Warehouse Complex,” said Steven Tan, ERA’s managing director of capital markets and investment sales. Tan said the total proceeds from selling all the strata industrial units will amount to about S$149 million ($110.5 million). Read more>>

China’s Economy Seen Growing 5.3% This Year as Property Stabilises

China’s economy is set to expand 5.3 percent this year as the property sector stabilises and external demand improves, according to the ASEAN+3 Macroeconomic Research Office, helping to lift growth in the region.

A gradual property sector recovery in China amid ongoing policy support would boost real estate investment, generating spillovers for the rest of the region, the Singapore-based group said in a report Monday. Read more>>

Vietnam Developer FLC’s Chairman Charged With $29M Scheme

FLC Group chairman Trinh Van Quyet has been charged with fraudulent appropriation of assets and stock manipulation, illicitly earning VND 723 billion ($29 million) from the stock manipulation activities.

The Supreme People’s Procuracy charged Quyet and seven others with the same two charges on Monday, more than two years after Quyet was arrested. Read more>>

Thailand Approves New Measures to Boost Property Sector

Thailand’s government unveiled a slew of new measures including cuts in property registration and transfer fees to revive the nation’s residential real estate market.

The cabinet approved a proposal to increase the threshold for lower transaction fees for houses and condominiums priced up to THB 7 million ($191,885), according to a government statement on Tuesday. Currently, only residential properties valued at a maximum of THB 3 million are eligible for a cut in registration fee to 0.01 percent from 2 percent that was first announced in 2022. Read more>>

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