GIC chief investment officer Jeffrey Jaensubhakij (Image: GIC)
Singapore sovereign fund GIC’s investment chief issues a reality check after the US central bank’s half-point rate cut, with that story leading today’s headline roundup. Also in the news, a court orders Chinese developer SRE to sell its stake in a Shanghai project and a CapitaLand REIT confirms an alleged white-collar crime in Australia.
GIC CIO Says Spark from Rate Cut Could Be Short-Lived
GIC chief investment officer Jeffrey Jaensubhakij has warned that the market exuberance following Wednesday’s outsized interest-rate cut could be short-lived amid the risk of rising inflation.
“For now we should enjoy it,” Jaensubhakij said at the Milken Institute Asia Summit 2024. “But just be prepared that you have tight labour markets across the US, Europe, Japan, and so the risk of inflation coming back sooner may be there.” Read more>>
Shanghai Court Forcing SRE Group to Sell Project to Pay Bills
A Shanghai court has ordered Chinese developer SRE Group to sell its majority interest in a joint venture company after SRE failed to repay RMB 4.45 billion ($627 million) in bank loans, the company said in a filing with the Hong Kong stock exchange.
SRE, a unit of embattled conglomerate China Minsheng Investment Group, said four units that collectively held 51 percent of Shanghai Jinxin were unable to fulfil their obligations under a court order to pay the loans. They were also ordered to separately pay a RMB 4.52 million “enforcement fee” by the court. Read more>>
CapitaLand Ascott Trust Discloses Australia Embezzlement Case
Singapore-listed CapitaLand Ascott Trust will be fully compensated for the losses it suffered from an alleged white-collar crime in Australia, the REIT’s managers said Friday.
The announcement came a day after the Australian Financial Review and The Edge reported that a senior executive in Clas Australia purportedly faked tax, insurance and legal documents, as well as misappropriated funds. Read more>>
LG, Sinar Mas Tie Up for $300M Jakarta Data Centre
A joint venture between Indonesian and Korean companies is set to build a $300 million data centre in Indonesia’s capital.
LG CNS, a South Korean data centre services provider, and PT SMPlus Digital Investment, a digital infrastructure platform backed by Indonesian conglomerate Sinar Mas, are behind the JV, which has revealed plans to build a data centre in Jakarta’s central business district. Expected to be up and running by 2026, and complete by 2027, it will be designed and operated by the JV, LG Sinar Mas. Read more>>
Wave of Defaults Reshapes Ownership of Hong Kong’s Peak Palaces
Perched atop one of the world’s most expensive residential markets, luxury homes on The Peak in Hong Kong are rare gems coveted by ultra-wealthy people from inside and outside the city. Luxury homes on the south side of Hong Kong Island share the same acclaim.
However, a subtle shift in ownership has taken place in recent years. A number of owners have succumbed to liquidity crunches amid high borrowing costs and economic inertia. This has made way for a new roster of residents to capture these plum assets, sometimes at fire-sale prices. Read more>>
Frasers Sees US-China Tensions Boosting Bangkok Office Market
Frasers Property, controlled by Thailand’s richest man, is banking on US-China tensions to help reduce an oversupply of office space that has plagued the country’s capital.
The Singapore-based developer expects a jump in demand for offices and industrial real estate in Southeast Asia, especially its THB 120 billion ($3.6 billion) One Bangkok project in the city centre, said CEO Panote Sirivadhanabhakdi. Read more>>
Australia’s Salter Brothers Set to List Hotel Portfolio
Australian fund manager Salter Brothers is pushing ahead with an ASX listing of its hotel portfolio valued at up to A$2 billion ($1.4 billion), as it continues to bulk up its holdings at home and offshore, sources say.
Salter Brothers is a significant player in the domestic hotel market. While billionaire Harry Triguboff this month emerged as Australia’s No.1 hotel owner, he was closely followed by Melbourne-based Salter Brothers, as CBRE data showed their portfolios included 6,204 and 4,921 hotel rooms, respectively. Read more>>
China Weighing Rollback of Remaining Property Curbs to Boost Home Sales
China is considering removing some of the largest remaining restrictions on home purchases after previous measures failed to revive a moribund housing market, according to sources familiar with the matter.
Regulators are working on a proposal that would allow mega-cities like Shanghai and Beijing to relax restrictions for non-local buyers — those who do not have a so-called Hukou residence permit for that location — the sources said, asking not to be identified discussing private matters. It’s a barrier many smaller cities have already removed. 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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