Starbucks is brewing up bids for its China business (Getty Images)
Chinese coffee competition leads today’s look at real estate news from around Asia as private equity giants submit bids to take over Starbucks China operation. Also making the news is Japanese backing for a Sydney residential project and some encouraging results for Hong Kong’s biggest developer.
PE Firms Said to Value Starbucks China at $5B in Stake Sale
Most of the bidders seeking to buy a portion of Starbucks’ China operations have submitted offers valuing the business at as much as $5 billion, said two people who have knowledge of the deal discussions.
That quotation would make a potential deal one of the most valuable China unit divestments by a global consumer company in recent years. The offers, which have not been reported previously, would let Starbucks push ahead with the sale in a market where it faces sluggish economic growth and stiff competition from local brands. Read more>>
Japanese Giants Back $150M Investa Sydney Project
Australia’s Investa has won backing from Japan’s JR West Real Estate & Development Company and Sotetsu Real Estate for a residential project in Sydney.
The partners will work together to develop an A$230 million ($150 million) complex comprising about 251 fully-furnished, self-contained studio apartments along with a range of communal spaces, including co-working spaces, indoor entertainment areas, communal dining zones and outdoor terraces. Read more>>
Sun Hung Kai Reports Profit Increase as Hong Kong Housing Levels Off
Hong Kong’s biggest developer Sun Hung Kai Properties Ltd. saw its profit rise 0.5 percent as Hong Kong’s real estate market showed signs of bottoming out.
Underlying earnings, which exclude property revaluations, increased to HK$21.9 billion ($2.8 billion) in the year ended June 30, Sun Hung Kai said in a filing on Thursday. The profit gain is the first after three years of declines amid the city’s prolonged property downturn. The figure compares with an average estimate of HK$22.4 billion from 10 analysts surveyed by Bloomberg. Read more>>
Digital Edge Breaks Ground on 100MW Thailand Data Centre
Regional data centre operator Digital Edge announced on Thursday that it has broken ground on its first facility in Thailand after first announcing the project in June.
Developed through a joint venture with local firm B Grimm Power, the 100MW facility in Chonburi province outside of Bangkok is part of a $1 billion Thai venture, according to a statement by the Singapore-based company. Read more>>
Mysterious Money Manager Gordon Tang Expands Singapore Footprint with $41M Bungalow
Ron Tan, executive chairman and group chief executive officer of immersive entertainment group Neon, formerly known as Cityneon, has sold his Good Class Bungalow (GCB) in Second Avenue for S$53 million ($41 million) to Tang Jialin.
Tang, who is in his late 20s, is the CEO of SingHaiyi Group and Tang Organization. Both companies are fully owned by his parents, Gordon and Celine Tang. The price paid by Tang Jialin works out to nearly S$2,652 per square foot on the freehold land area of about 19,988 square feet. The transaction was completed recently. Read more>>
Central Tokyo Apartment Rents Reach 30% of Household Income
Apartment rents are rising in such major Japanese cities as Tokyo and Osaka as families once again flock to city centers, straining household budgets and crimping their ability to save for future home purchases.
Average rent as a share of disposable income increased between 1 and 5 percentage points from 2020 to 2024, reaching 18 percent to 34 percent. The share was more than 30 percent in Tokyo’s central 23 wards. With condominium prices soaring, more households are opting to rent, putting further upward pressure on prices. Read more>>
Hong Kong Repackages Kwun Tong Site for Housing Development Amid Commercial Slump
A commercial site in Cha Kwo Ling Road, Kwun Tong, is expected to be transformed into a residential project, offering 1,440 flats, as pressures continue to weigh down on Hong Kong’s commercial property market. The site is estimated to have a market value of about HK$6.5 billion and accommodate 3,700 residents.
Located near Kwun Tong Law Court, the commercial site currently serves as a public parking and storage area, as well as a worksite of the Drainage Services Department. It measures 0.96 hectares, with a proposed plot ratio of 7.5 for residential use and 1.5 for non-residential purposes, an official filing shows. Read more>>
Lendlease Searches for Backup Plan in Battle to Control Industrial Fund
Property company Lendlease is trying to tighten its grip on the A$2 billion ($1.3 billion) industrial property fund eyed off by Mirvac, and plans to reclaim the vehicle if it is sacked as its manager in a Hostplus-backed coup.
Lendlease’s property funds empire is under siege from Mirvac, which is seeking to capitalise on investor dissatisfaction with the incumbent manager to snatch away its Australian Prime Property Fund series, a $10 billion pool of warehouses, shopping centres and office towers controlled by three different trusts. Read more>>
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