Goodman Group CEO Greg Goodman
In today’s roundup of real estate news from around the region, Goodman Group’s boss warns that debt-laden private equity data centre operators face a wave of consolidation, Blackstone moves to exit Australian retail with a deal to sell a Melbourne mall, and Singapore’s High Point condominium makes its fifth attempt at a collective sale.
Goodman CEO Warns of Data Centre M&A Wave as PE Debt Burdens Mount
Greg Goodman, chief executive of Australian industrial giant Goodman Group, has warned that a global wave of mergers and acquisitions is looming among private-equity-backed data centre companies as their debt loads become unmanageable.
Goodman Group is building a global network of data centre sites spanning Los Angeles, Paris, Tokyo and Hong Kong to capture infrastructure demand from the artificial intelligence boom. Read more>>
Blackstone’s AirTrunk Plans $358M Asset-Backed Bond in Asia First
Blackstone-owned data centre operator AirTrunk is seeking to raise at least A$500 million ($358 million) through asset-backed bonds, in what may be one of Asia’s first such transactions in the sector, according to people familiar with the matter.
The Sydney-based company plans to launch the bond in the second half of the year to refinance existing bank loans and has appointed Deutsche Bank to lead the transaction, the people said. Read more>>
Blackstone Nears Sale of Melbourne Mall for $250M as Australian Retail Heats Up
Blackstone is close to selling Greensborough Plaza in Melbourne’s northeast for more than A$350 million ($250 million), with Growthpoint Properties Australia’s investment unit in talks to acquire the 59,117 square metre (636,330 square foot) convenience-focused regional shopping centre.
The deal marks Blackstone’s exit from Australian retail, following a run that began in 2014, and continues a trend of institutions and private managers returning to large-format retail assets as office markets stagnate and shopping centre returns strengthen. Read more>>
Singapore’s High Point Condo Launches Fifth En Bloc Bid at $455M Guide Price
Owners of High Point, a freehold condominium in Singapore’s prime District 9 Mount Elizabeth area, have launched a fifth collective sale attempt, offering the 4,422.8 square metre (47,607 square foot) site at a guide price of S$580 million ($454.7 million).
The latest bid comes after a deal with Pansy Ho’s Shun Tak Holdings for S$556.7 million collapsed in December 2021 when the developer forfeited its deposit following the government’s announcement of tighter property cooling measures. Read more>>
Marprop Sells Canberra Police College to Aegis Capital for $61M
Property group Marprop Real Estate Investors has sold Barton College, the Australian Federal Police training facility in Canberra, to local investment firm Aegis Capital for A$86 million ($61.4 million).
Marprop acquired the 10,000 square metre (107,639 square foot) complex in 2021 for A$60.5 million and delivered an equity internal rate of return exceeding 15 percent over a five-year hold, driven by a long-term lease extension with its Commonwealth tenant, the company said. Read more>>
Pegasus Sells Two Kyoto Hotels to Global Hospitality Conglomerate
Investment firm Pegasus has completed the sale of two Kyoto hotels to an undisclosed global hospitality conglomerate, the company announced on 21 April. The assets, acquired in 2021 and 2023, were repositioned under the Wayfarer brand following acquisition.
The repositioning significantly enhanced net operating profit at each hotel, allowing Pegasus investors to realise opportunistic returns through the disposal, the company said. Pegasus will continue deploying capital through its Pegasus Opportunistic III Fund. Read more>>
Mapletree Completes Net-Zero Logistics Centre in Japan’s Hokkaido
Mapletree has completed its Chitose Kami-Osatsu Logistics Centre in Hokkaido. The three-storey facility spans 46,577 square metres (501,351 square feet) and is certified as a net-zero energy building, according to the company.
Located near major semiconductor factories and connected to New Chitose Airport via the JR Chitose Line, the centre is positioned to capture rising logistics demand in the area, Mapletree said. Read more>>
Scentre’s $171M Sydney Mall Revamp Draws Shareholder Ire Over Capital Discipline
Westfield owner Scentre Group faced shareholder criticism at its annual general meeting over a planned A$240 million ($171.4 million) revamp of the top level of its Bondi Junction centre in Sydney, with corporate agitator David Kingston questioning whether the outlay represents sound capital allocation.
Kingston warned the programme, alongside A$28 million in spending to replace David Jones space at other malls, could prove a “capex sink,” while chief executive Elliott Rusanow defended the plan. Read more>>
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