Keppel DC REIT Distributions Drop 13.7% and More Asia Real Estate Headlines

The challenges of what was once Asia’s hottest listed trust lead today’s roundup of real estate headlines, with Keppel DC REIT announcing a dip in distributions. Also in the news, CapitaLand’s largest commercial REIT reports higher distributions, and the holding company for Korea’s KAL is set to sell a resort hotel on Waikiki for $101 million.

Keppel DC REIT Reports Dip in Distributions Despite Revenue Increase 

Keppel DC REIT said on Friday that its distributions per unit for the first quarter would be S$0.02192, down 13.7 percent from the S$0.02541 figure one year ago.

Gross revenue was up 18.4 percent to S$83.4 million ($61.1 million) for the quarter, from S$70.4 million in Q1 FY2023. This was mainly due to a settlement sum received in relation to a dispute with DXC Technology Services, and positive reversions and escalations, said the manager on Friday. Read more>>

CapitaLand’s CICT Boosts Distributions as Rental Income Rises and Expenses Drop

CapitaLand Integrated Commercial Trust (CICT) on Friday posted a 6.3 percent rise in net property income to S$293.7 million ($216 million) for the first three months of the year.

Its manager said in a business update that the growth in net property income was supported by a rise in gross rental income and lower operating expenses. The real estate investment trust (REIT) recorded a 2.6 percent increase in gross revenue to S$398.6 million. Its retail and office assets, as well as integrated developments, also booked year-on-year gains in gross revenue and NPI. Read more>>

South Korea’s Hanjin KAL to Sell Waikiki Resort Hotel to Sono for $101M

Hanjin KAL Corp, the holding firm of South Korean flag carrier Korean Air Lines Co, is set to sell a 100 percent stake in its Hawaii-based subsidiary Waikiki Resort Hotel Inc for KRW 140.1 billion ($101.2 million) to resort operator Sono International Co.

Daemyung Sono Group, a hospitality conglomerate in Korea, said on Friday that its affiliate Sono International will purchase a full stake, the property and land of the luxury hotel. The transaction date is under negotiation. Read more>>

Far East Shopping Centre Back on Market in Singapore at Unchanged $681M Asking Price

Far East Shopping Centre has been put back on the market, in a fresh tender pitched at the same guide price of S$928 million ($681 million).

This comes after Glory Property Developments, a company linked to Chinese businessman Du Shuanghua’s Bright Ruby Resources, pulled out of a deal announced in September 2023 to acquire the building. Read more>>

Japan’s Takashimaya Eyes 2026 Opening for Vietnam Shopping Centre

Takashimaya, the Japanese operator of upscale department stores, plans to open a shopping centre in Hanoi as soon as 2026, for what would be the company’s first new location abroad in eight years.

Subsidiary Toshin Development has started work on a mixed-use complex in the Vietnamese capital, Takashimaya President Yoshio Murata told Nikkei in an interview. Along with a department store, the site will include space for housing, offices and commercial tenants. Read more>>

Standard Chartered Bank Appoints Cushman & Wakefield to Deliver Property Services Across Asia

Standard Chartered Bank has appointed global real estate services firm, Cushman & Wakefield to provide services to support its Asia workplace transformation, and global asset and transaction management for the bank’s 11 million square feet (1.02 million square metres) global real estate portfolio, the consultant said in a statement.

The five-year mandate will encompass global asset and transaction management and property services across Asia, including integrated facilities management, project and design management services, space planning, occupancy management, health, safety and wellbeing and physical security and will take effect from 1 July, 2024. Read more>>

Godrej Family Begins Formal Division of Indian Conglomerate

The Godrej family has begun the formal division of the conglomerate established more than a century ago by exiting the boards of each other’s companies and will soon divest stakes in them, said people with knowledge of the matter.

Towards this end, Adi and Nadir Godrej resigned from the board of Godrej & Boyce earlier this year, while Jamshyd Godrej relinquished his seat on boards of GCPL and Godrej Properties. Read more>>

Swire Boss Promises to Contribute to Shanghai Economy in Meet with Mayor 

Shanghai mayor Gong Zheng met Guy Bradley, chairman of John Swire & Sons (HK) Ltd, on Wednesday, with the city leader promising a market-oriented, conducive business environment.

Shanghai has always been a strategic city for John Swire & Sons in its business expansion blueprint, Bradley pointed out. The company has never stopped its investing in Shanghai, Bradley said, with that confidence shown in its series of projects in the city, including the HKRI Taikoo Hui complex on West Nanjing Road and the Taikoo Li Qiantan project in Pudong. Read more>>

Hong Kong’s Buoyant Home Sales Face Test as Interest Rates Stay High

Dwindling hopes for an interest-rate cut this year could put a damper on surging Hong Kong home sales, according to analysts.

As of Tuesday, 5,109 new homes have been sold in Hong Kong in 2024, roughly half of the full-year total in both 2022 and 2023, according to data compiled by Midland Realty. Read more>>

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