Chinachem Wins Hong Kong Site Tender With $131M Bid and More Asia Real Estate Headlines

Locally based builder Chinachem has been awarded a residential site in Hong Kong’s New Territories, with that story leading today’s headline roundup. Also making the list, GLP cancels a bond sale over insufficient demand and Mapletree Industrial Trust completes a Tokyo asset buy.

Chinachem Wins Hong Kong Residential Site Tender With $131M Bid

Hong Kong developer Chinachem Group won a government land tender in the New Territories at a price within market expectations amid muted sentiment for land bidding, consultants said.

Keen Mighty Ltd, a Chinachem subsidiary, won the site in Sha Tin with a bid of HK$1.02 billion ($131 million), the Lands Department said Tuesday. Read more>>

GLP Offshore Bond Sale Flops Despite Double-Digit Coupon

GLP cancelled a dollar bond sale after its record coupon above 10 percent failed to attract sufficient demand, underscoring continued investor angst towards the developer of warehouses and other logistics real estate.

Demand was strong, but not at a level to reach the company’s desired pricing goal, the Singapore-incorporated firm said Tuesday without disclosing the subscription number and pricing target. GLP was marketing its first dollar notes since 2021 on Monday with an initial pricing guidance at 10.375 percent. Read more>>

Mapletree Industrial Trust Completes $101M Tokyo Data Centre Site Buy

The manager of Mapletree Industrial Trust announced to the Singapore Exchange on Tuesday that it has completed the acquisition of a freehold industrial property in western Tokyo.

The SGX-listed REIT had announced one month ago that it had agreed to acquire the facility from Nagayama Tokutei Mokuteki Kaisha for JPY 14.5 billion ($100.5 million), with plans to make the property its second data centre in Japan. Read more>>

Country Garden Services Selling Final Wanda Stake for $91M

Country Garden Services informed the Hong Kong stock exchange on Tuesday that it has agreed to sell its remaining stake in the management company for Dalian Wanda Group’s China mall portfolio for RMB 649 million ($91 million).

The deal follows the completion of a $450 million transaction disclosed last month under which the property management division of mainland developer Country Garden Holdings sold back an earlier stake. Dalian Wanda’s mall management business is currently in the process of being taken over by an investor consortium led by private equity firm PAG. Read more>>

Hong Kong’s Centaline Expands Asset Management Unit With Mainland Partnership

One of Hong Kong’s biggest property agencies is ramping up its family office business by partnering with China’s No.2 mutual fund to push wealth management products amid a real estate slump.

Centaline Wealth Management, a subsidiary of Centaline Group, will start offering products including fixed-income, money market and exchange-traded funds with China Asset Management (Hong Kong), according to Larry Hung, founding partner of the family office division. Read more>>

Mainland Buyers Scoop Up Record Slice of Hong Kong Homes

Hong Kong saw fresh records of homebuying from mainland Chinese in the first three quarters of 2024 after efforts by the city to attract foreign professionals and remove purchase curbs, major realtor Centaline Property Agency said.

In the first nine months, 8,133 new and second-hand homes, representing 24 percent of total sales, were purchased by mainland Chinese buyers, according to a Centaline survey that tracks buyers’ names with Mandarin spellings. The value of the properties sold to mainland Chinese totalled HK$90.6 billion ($11.7 billion). Read more>>

Hong Kong Home Prices Decline for Fifth Straight Month

Hong Kong’s home prices dropped for the fifth consecutive month in September, official data showed Tuesday, in a struggling property market that realtors expect to bottom out soon after an interest rate cut and the government’s easing policies.

Housing demand in Hong Kong, one of the world’s most unaffordable cities, has lost steam since May after a short-lived bounce when all property purchase curbs were lifted in February. Realtors said much of the pent-up demand has been sated, while developers launched new flats at steep discounts to boost sales. Read more>>

Sino-Ocean Unveils $4B Convertible Bond Deal With Creditors

Chinese developer Sino-Ocean Group said Tuesday that it would issue new zero-coupon, two-year mandatory convertible bonds and new interest-bearing, perpetual securities to creditors for a total value of $4 billion.

The state-backed company received a winding-up petition in late June, filed by The Bank of New York Mellon in a Hong Kong court. This issuance, along with new debts worth $2.2 billion, forms a part of the indebted developer’s $5.64 billion offshore debt restructuring plan as it attempts to raise funds to repay its creditors. Read more>>

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