Embassy Splendid TechZone is soon to change its owner
India’s booming office park sector leads Mingtiandi’s headline roundup today with Embassy REIT planning to buy a Chennai property from its sponsor, Embassy Group. Also in the news, one of the mainland’s biggest banks has filed a wind-up petition against Shimao Group in Hong Kong and analysts see the end of Japan’s negative rates scheme not deterring investors from the country’s property markets.
Embassy REIT to Buy $152M Chennai Business Park From Sponsor
Embassy Office Parks REIT on Saturday said it will buy Embassy Splendid TechZone, a Grade-A business park, from its sponsor Embassy Group for an enterprise value of INR 12.69 billion ($152.3 million).
The proposed acquisition marks Embassy REIT’s entry into Chennai, one of India’s top performing office markets. It intends to raise unit capital of INR 25 billion, primarily to fund the acquisition and reduce the current 30 percent leverage of the portfolio, providing flexibility for future growth, the REIT said. Read more>>
Shimao Hit With Liquidation Petition From China Construction Bank
Chinese developer Shimao Group said on Monday that China Construction Bank (Asia) had filed a liquidation petition against it over a financial obligation of HK$1.6 billion ($204.3 million).
Shimao said in a Hong Kong stock exchange filing it would “vigorously” oppose the lawsuit and press on with its proposed plan to restructure about $11.7 billion of offshore debt, with an aim of cutting it by 60 percent. Read more>>
End of Negative Rates Seen Unlikely to Derail Japanese Investment Boom
The end of Japan’s ultra-loose monetary policy is unlikely to deter foreign investors from snapping up commercial real estate in the world’s fourth-largest economy, as Tokyo and other large metropolises remain attractive destinations for capital looking to acquire assets such as hotels, multifamily buildings and logistics facilities, according to analysts.
This view on Japan stands in contrast to the outlook for China, where various support measures and a loose monetary stance have failed to revitalise foreign investment demand for commercial property, they said. Read more>>
Embassy Office Parks to Raise $300M for Office Park Acquisition, Debt Reduction
India’s premier REIT, Embassy Office Parks, has unveiled plans to raise INR 25 billion ($300 million in capital. This move aims to facilitate its recent acquisition of an integrated office park and to alleviate debt burdens.
The Embassy, boasting a vast portfolio spanning over 45 million square feet (4.18 million square metres) of office space, serves prominent clients such as Google, Cisco, and IBM, all of whom are expanding their footprint in India. Read more>>
Country Garden Appoints Legal Adviser, Urges Creditor Patience
Distressed Chinese developer Country Garden Holdings said it has engaged Linklaters LLP as principal legal adviser for its offshore debt restructuring, while urging creditors to be patient with its progress.
Linklaters will facilitate communication between Country Garden and its offshore creditors, the company said in a statement to the Hong Kong stock exchange Sunday. Country Garden has also engaged Kroll LLC to perform an independent recovery analysis on the group to provide information for creditors, it said. Read more>>
Embassy Group Invests In Indiabulls Real Estate via Preferential Allotment
Embassy Group, the largest shareholder in Indiabulls Real Estate, has invested INR 11.6 billion ($139.3 million) through a preferential allotment of shares and warrants. Of this, 25 percent is upfront, and the balance will be invested over 18 months.
The floor price of the issuance was INR 111.51 per share. It has also contributed several assets in Bengaluru and Chennai to Indiabulls at an 8-16 percent discount to the average of two valuations. The assets include a 31-acre (12.5-hectare) land in North Bengaluru where a project with 93 villas is proposed, a 500,000 square feet (46,451 square metres) residential project in Whitefield, and a 1.4 msf proposed high rise in Chennai. Read more>>
OUE REIT Eyes Higher Hospitality Contribution in Growth Push
While offices and hotels are both considered commercial assets, they have markedly different operating and investing characteristics. Having a portfolio comprising both types of properties, though, has been a key strategy for OUE REIT.
Han Khim Siew, chief executive of the manager, eyes the benefits coming from such diversification, which provides the REIT with stability as well as a pathway for growth. Read more>>
China Pre-Owned Home Sales Spike Points to Market Recovery Later This Year
China’s pre-owned homes market is showing signs of recovery, based on data for the first two months of 2024, amid continued efforts by authorities to ease purchase restrictions to arrest a prolonged nationwide property slump.
Sales of second-hand homes in 25 major cities across the country jumped by nearly 25 percent in January and February compared with the same period in 2022, according to data published in March by the China Index Academy, a real estate research firm. 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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