The Conrad Seoul hotel may soon have a new owner
Brookfield is said to have moved into late-stage negotiations with ESR’s ARA Korea unit for the sale of its Conrad Seoul hotel, with that story leading Mingtiandi’s roundup of headlines from around the region today. Also in the news, China Vanke is reported to restructuring its private debt in China and Sweden’s EQ has sold its stake in a Korean finance firm.
Brookfield Said to Choose ARA Korea as Preferred Bidder for $325M Seoul Hotel
Canada’s Brookfield Asset Management has selected ARA Korea as the preferred bidder for its Conrad Seoul hotel at a price of around KRW 430 billion ($324.5 million), banking sources said on Thursday. ARA Korea is said to have outbid Blackstone, Singapore’s Keppel Ltd and Seoul-based Gravity Asset Management for the five-star asset.
Brookfield owns the International Finance Center in Seoul (IFC Seoul), comprised of the luxurious hotel, three office towers and a shopping mall. The Canadian investment firm is set to sell the buildings individually after potential buyers struggled with the scale of the transaction under current financial conditions. Read more>>
China Vanke Pressure Mounts as Insurers Seek Private Debt Solution
China Vanke is facing deepening pressure as several major insurers seek to protect their privately issued debt on concerns over potential liquidity stress at the nation’s second-largest developer, according to people familiar with the matter.
At least three Beijing-based insurers sent executives to Vanke’s headquarters in Shenzhen this week to discuss debt repayment plans under the local government’s coordination, said the people, asking not to be identified discussing a private matter. Options include extending the deadline for repayment by a year, adding collateral and issuing bonds, the people said. Read more>>
EQT Sells Shinhan Financial Stake at 30% IRR in Block Deal
EQT Private Capital Asia sold KRW 415.5 billion ($311.9 million) worth of shares in South Korea’s Shinhan Financial Group in a block deal on Thursday, achieving a 30 percent internal rate of return.
The Asian investment arm of EQT, a Swedish global asset manager, divested 9.3 million Shinhan shares at KRW 44,688 each, which was discounted 2 percent from the stock’s closing price on Wednesday, banking sources said Thursday. Read more>>
IGIS Asset Management Halts Sale of Controlling Stake
Key shareholders of South Korea’s IGIS Asset Management, one of the largest real estate firms in Asia, have decided to halt the process of selling the stake they own with a control premium and will prioritise the company’s operational stability, senior managing partner Cho Kab-Joo said Tuesday.
“The bereaved family members (of IGIS’s late founder Kim Dai-young) have sought the opinion of external advisors regarding the sale of their shares. But given the current market conditions and the firm’s business, they have decided not to proceed (with the sale process) and have agreed to focus on the stabilisation of the company,” Cho said in his email sent to IGIS employees on Tuesday. Read more>>
Matthews Shuts Shanghai Office, Joining Asset Manager Retreat
Asset manager Matthews International Capital Management is closing its Shanghai office, adding to the list of global firms that have cut back in mainland China.
The San Francisco-based company will centralise its regional research business in Hong Kong and remains committed to conducting China analysis, it told Bloomberg on Friday. Read more>>
Co-working Firm IWG Looks to Double India Portfolio in 12-18 Months
Flexible workspace and coworking firm, IWG, which operates brands like Regus and Spaces in India, is looking to double its presence in India in next 12-18 months on the back of demand for flexible space by corporates, a senior executive said.
The company has recently signed an agreement with US brand HQ to open centres in India. IWG currently operates 100 centres in India and it is not in the top 10 market for the group. Read more>>
Colt Data Centres Acquires Site for Chennai Campus
Cold Data Centre Services has acquired land in Chennai, India, for a new data centre development.
The company this week announced the acquisition of a 10-acre (4.04 hectares) plot in Chennai, Tamil Nadu. Colt plans to deliver a data centre in the Ambattur area of the city by 2027. Read more>>
Property Risks Prompt S&P to Lower Outlook for Korea Brokerages
Real estate market investments may cause trouble for South Korean securities firms, according to S&P Global Ratings, which revised its ratings outlook to negative for two companies on Friday.
“Credit risks from overseas alternative investments are material,” the assessor said, shifting its view on both Mirae Asset Securities and Korea Investment & Securities to negative from stable. “Domestic real estate project financing is adding to the strain.” Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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