GIC, Brookfield Said Near $10B US Trailer Park Deal and More Asia Real Estate Headlines

The big money to be made from low-budget housing leads today’s list of real estate headlines from around the region, as Singapore’s GIC closes in on a deal to sell a US trailer park business to Brookfield for around $10 billion. Also in the news, Singapore’s Mapletree Investments buys its second Illinois shed site this year and Japan’s Orix supersizes a property fund.

GIC Said in Talks to Sell US Trailer Parks to Brookfield in $10B Deal

Singapore’s GIC is in talks to sell its stake in US landlord Yes Communities to Brookfield Asset Management in what could be one of the biggest exits for the sovereign wealth fund in years, according to a person with knowledge of the matter.

The entire portfolio could be valued at more than $10 billion, according to the person, who asked not to be identified discussing private negotiations. Talks are ongoing and there is no guarantee of a deal. Read more>>

Mapletree Buys Second Chicago-Area Logistics Site This Year

Mapletree Investments has acquired a 29 acre (12 hectare) site in the US state of Illinois for development of a logistics facility spanning 418,880 square feet (38,915 square metres).

The deal marks the Singaporean group’s second acquisition in Chicago’s Joliet submarket this year, following the May purchase of an 18 acre site where Mapletree will build a 276,000 square foot warehouse. Read more>>

Japan’s Orix Ups Target Size for Real Estate Fund to $272M

Orix Corp’s real estate investment unit has raised the target size of one of its funds by 33 percent, reflecting rebounding Japanese institutional investor demand for property market deals.

The subsidiary of Japan’s biggest leasing company will expand the fundraising goal for a real estate fund launched in January to JPY 40 billion ($272 million), said Tatsuya Kitamura, the president of the unit. Read more>>

RRJ, Davidson Kempner Lead $800M Refinancing of KWG, Logan Hong Kong Project

Logan Group and KWG Group Holdings plan to refinance a $1.05 billion private loan secured by a luxury residential project in Hong Kong, according to people familiar with the matter, as the distressed Chinese developers seek to lower borrowing costs.

The two are in the process of securing a new $800 million facility that will be backed by the Corniche complex, said the people, who asked not to be identified discussing private matters. The deal could be signed as early as November, when a 15-month make-whole clause is due to end, the people said. Typically, if the debt is paid off before such a period finishes, the borrower would have to compensate investors. Read more>>

India’s Ambani Buys Manhattan Home for $17M

Reliance Industries’ billionaire chairman Mukesh Ambani has reportedly purchased a building in Manhattan’s Tribeca neighbourhood for $17.4 million.

RIL USA, the US arm of Reliance Industries, purchased the property at 11 Hubert Street in Tribeca for less than what tech billionaire Robert Pera paid for it in 2018. According to a Curbed report, Pera bought the building for about $20 million in 2018. Read more>>

UK Supermarket Giant Sainsbury’s Said to End Talks With JD Over Hypermarket Chain

Britain’s second-largest grocer, J Sainsbury, has terminated talks with Chinese e-commerce firm JD.com to sell its general merchandise unit Argos.

Sainsbury’s said in a statement on Sunday that JD.com’s terms and commitments would not be “in the best interests” of its shareholders and broader stakeholders. That followed a statement on the talks just a day ago that said the Chinese firm could drive growth at Argos. Read more>>

IREIT Global German Unit Served With Payment Order by Former Tenant

Subsidiaries of IREIT Global have been served with a payment order filed by Deutsche Rentenversicherung Bund, the former main tenant of the trust’s Berlin Campus, in a move that escalates a potential legal dispute into a formal court proceeding.

In a bourse filing last Thursday, the REIT’s manager confirmed that the payment order had been served Wednesday. Read more>>

Singapore REIT Index Hits 10.3% Returns

REITs in Singapore rebounded strongly in the third quarter to date, with the iEdge S-REIT index delivering total returns of 10.3 percent since end-June, amid ongoing expectations for US interest rate cuts.

As of 12 September, all 30 of the index constituents were in the black for the third quarter to date. The iEdge S-REIT index closed at 1,107.83 on Friday, a year-to-date high, bringing total YTD returns to 15 percent, with over two-thirds of the constituents logging double-digit total returns. Read more>>

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