CPPIB, CDPQ Set to Join Blackstone in $9.6B AirTrunk Tender and More Asia Real Estate Headlines

Canadian pension funds lead Mingtiandi’s headline roundup today, with CPPIB and CDPQ said to be joining forces with Blackstone in its pursuit of Aussie data centre operator AirTrunk. Also in the news, China’s GDS Holdings seeks as much as $1 billion in investment for a Southeast Asia data centre plan and China Evergrande EV units are ordered into bankruptcy.

CPPIB, CDPQ Set to Join With Blackstone for $9.6B AirTrunk Contest

Blackstone is firming as the favourite to buy the A$15 billion ($9.6 billion) data centre business AirTrunk, with Canadian pension funds possibly joining forces with the US investment giant.

As suitors get ready to lob final offers in the week beginning 26 August, the Australian Business Review understands that the Canada Pension Plan Investment Board is expected to pair up with Blackstone in the race, while another Canadian fund, CDPQ, may also surface. Read more>>

GDS Said to Seek as Much as $1B for SE Asia Data Centre Plan

GDS Holdings is seeking as much as $1 billion in investment in its unit that operates its data centres outside of China, people familiar with the matter said, building on a well-received fundraising just a few months ago.

GDS is working with an advisor to gauge interest from global investors to help Singapore-based GDS International expand its operations in Southeast Asia, the people said, asking not to be identified discussing a private subject. Read more>>

China Evergrande EV Units Ordered Into Bankruptcy, Reorganisation

China Evergrande New Energy Vehicle said Monday that a local court had ruled that two of its units should enter into bankruptcy and be reorganised, a week after individual creditors of the units filed for such proceedings.

Shares of the electric car maker plunged 7 percent on 29 July, a day after individual creditors of Evergrande New Energy Vehicle (Guangdong) and Evergrande Smart Automotive (Guangdong) sought court approval for the units to go through bankruptcy proceedings and be reorganised. Read more>>

Director at Singapore-China Suzhou Industrial Park Targeted in Fraud Probe

The director of a pioneering international industrial development zone in East China’s Suzhou has been placed under investigation for corruption after a whistleblower publicly accused him of taking part in a procurement fraud scheme, according to local authorities.

Zhu Huan, the 44-year-old director of the commerce bureau at the China-Singapore Suzhou Industrial Park, has been suspended as local graft busters investigate him for alleged misconduct, according to an announcement released by local authorities on the official Suzhou Daily’s WeChat account on Friday. Read more>>

Hong Kong’s New World Sells First Debt in Two Years with $400M in New Bonds

Hong Kong’s New World Development has sold $400 million in US dollar bonds, ending a two-year hiatus in debt sales linked to investor caution after a series of defaults in China’s property sector.

While Hong Kong has not seen major defaults by developers like in mainland China, investors have been worried about companies’ weakening liquidity due to a struggling residential and commercial property markets. Read more>>

Hong Kong Company’s Purchase of New Zealand’s Kiwi Centre Terminated

Kiwi Property says it has terminated the contract for the conditional sale of the Vero Centre after the buyer, a Hong Kong-based conglomerate, failed to meet key terms of the agreement.

Kiwi Property CEO Clive Mackenzie said the company had worked hard over a number of months to successfully complete the transaction and was disappointed by the outcome. Read more>>

China Rejects IMF Proposal for $1T Housing Rescue Package 

Chinese authorities have rejected a proposal made by the International Monetary Fund to use central government funds to complete unfinished housing, a key problem preventing a turnaround of an industry that’s been a major drag on the economy.

The IMF called on China to deploy “one-off” fiscal resources to complete and deliver pre-sold properties or compensate homebuyers, according to an annual review of the world’s second-largest economy published Friday. It put the cost at the equivalent of 5.5 percent of GDP over four years. Read more>>

Logan, KWG Near Private Refinance Deal on $1.3B Hong Kong Project

Cash-strapped Chinese builders Logan Group and KWG Group Holdings are close to signing a private loan to refinance a HK$10.2 billion ($1.3 billion) facility that backed the development of luxury property The Corniche in Hong Kong, according to people familiar with the matter.

The borrowing, arranged by JPMorgan Chase, is likely to be signed with a group of investors and bondholders as early as this week, according to sources who asked not to be named. Read more>>