KKR founders Henry Kravis and George Roberts are kicking off a new Asia real estate fund
KKR leads today’s collection of real estate headlines from around Asia Pacific with the US private equity giant launching its second Asia real estate fund with a $2.5 billion target. Also making the list is an India student housing exit by Goldman Sachs and Warburg Pincus while HSBC calls a bottom to China’s real estate slide.
KKR Aims to Raise $2.5B for Second Asia Real Estate Fund
KKR & Co. is raising a second Asia real estate fund, targeting $2 billion to $2.5 billion to spend across the region, according to people familiar with the matter.
The new fund has amassed about $600 million since late 2022, and the US investment firm is seeking to finish fundraising by the end of 2024 to early 2025, said the people, who asked not to be identified as the matter is private. Read more>>
Goldman, Warburg Sell India Student Housing Operator for $324M
Real estate investment firm Alta Capital has bought the complete ownership of ‘Good Host Spaces’ from Goldman Sachs and Warburg Pincus for INR 27 billion ($324 million).
This acquisition marks the exit of both Goldman Sachs and Warburg Pincus from the company. Goldman Sachs held around 70 percent of the company. They manage student housing at universities like Manipal University and OP Jindal Global University. Read more>>
HSBC Boss Says China Commercial Property Has Hit Bottom
HSBC Holdings Plc Chief Executive Officer Noel Quinn said China’s commercial property sector has reached a trough, but investors shouldn’t expect a swift reversal following the recent downturn.
“The commercial real estate market in China has had a huge policy correction and I think we are at the bottom of the market,” Quinn said on Bloomberg TV from London Monday. “But it will take quite a while for that market to recover and regain momentum. So I am not expecting a massive reversal in that sector in the next 12 months or so, but I do expect it to be a gradual improvement from where we are.” Read more>>
China Evergrande to Use Subsidiaries in Renewed Restructuring Bid
China Evergrande Group will look to use its subsidiaries’ shares as key components in any further debt-restructuring attempts, its legal representative said, pointing to a possible path of avoiding an asset-liquidation order.
The equity-centered plan comes after the world’s most indebted developer shocked creditors and other observers last month when it said it would reassess its offshore-debt restructuring plan. The company said it was unable to meet Chinese requirements to issue new bonds, which would have been a crucial part of its debt overhaul. Read more>>
Hong Kong Developer Inventories Reach Record High
A government estimate of Hong Kong’s supply of new private homes has increased to a record high of 107,000 units as buyers remain hesitant amid high interest rates.
The number of first-hand private residential units that may be available in the next three to four years increased by 2,000 as of the end of September, compared with an estimate of 105,000 issued at the end of June, the Housing Bureau said on Monday. Read more>>
Vietnam Issues Warrants for Former Chairs of Saigon Commercial Bank
Vietnam’s police issued arrest warrants for two former chairs of Saigon Commercial Bank, which experienced a bank run last year after customers feared the lender was tied to a real estate conglomerate under investigation for fraud.
The Ministry of Public Security charged the bank’s former chairman Dinh Van Thanh with alleged asset embezzlement and violations of banking operation regulations, according to a statement on the ministry’s website. Read more>>
India’s Luxury Home Sales Jump 115%
India’s luxury housing segment maintained a seemingly unstoppable growth curve in 2023, with a steep 115 percent annual rise in the number of luxury units sold between January to September this year across the top 7 cities, the latest industry report showed.
Out of approximately 349,000 units sold in these cities in the first nine months of 2023, about 24 percent were luxury homes, priced above INR 15 million ($180,178), the latest research by Anarock said. Read more>>
Delhi-Based DLF Sees Q2 Profit Rise on Housing Demand
India’s DLF on Monday reported a 30.6 percent jump in second-quarter profit, helped by higher home sales and new property launches.
India’s real estate demand has been strong ahead of the festive season which starts towards the end of the September-quarter, on growing consumer confidence despite high inflation and borrowing costs. Read more>>
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