Nan Fung Group chairman and CEO Antony Leung
Privately held Nan Fung Group wins a residential development site near Hong Kong’s Tung Chung East Station, with that successful tender leading today’s headline roundup. Also in the news, a Daiwa Securities REIT sells apartments in Japan’s Miyagi prefecture and Singapore-based Far East Orchard completes the disposal of a Perth hotel.
Nan Fung Outbids 3 Rivals to Win Tung Chung Residential Site in Hong Kong
Hong Kong developer Nan Fung Group beat three rival groups for a development site near the city’s international airport, marking the first deal after a senior government official urged real estate tycoons to have faith in the market.
MTR Corp awarded the residential site near Tung Chung East Station on Lantau Island to Nan Fung without disclosing the winning price, according to a statement on Friday. Nan Fung is a well-established and reputable developer and has participated in various MTR projects, the transport operator said. Read more>>
Daiwa Securities REIT Sells Miyagi Apartments for $11.5M
Daiwa Securities Living Investment Corporation announced to the Tokyo Stock Exchange on Friday that it has agreed to sell a set of three apartment blocks in the Miyagi prefecture city of Sendai for JPY 1.8 billion ($11.5 million)
The trust manager said it was selling the residential properties to three separate buyers — Taiheido Real Estate, J’s Estate and Global Support Co Ltd — to ensure the steady growth of assets under management and stable earnings over the medium to long term. Read more>>
Singapore’s Far East Orchard Completes Sale of Perth Hotel
Far East Orchard, the commercial property wing of the Ng family’s Far East Organization, has completed the sale of the Rendezvous Hotel Perth Central for A$18.5 million ($11.6 million), according to an announcement last week to the Singapore Exchange.
Chesterfield Property Group and Mountstreet Operations Pty Ltd acquired the 103-room freehold hotel in a deal signed in May of this year. Read more>>
Hong Kong Government Reassures Businesses on Northern Metropolis MOU
Hong Kong’s development minister has said a Northern Metropolis memorandum of understanding signed by 85 business heavyweights is simply a “general expression” of support without commitments to formal tenders, with the financial sector calling for more transparency and dialogue.
Secretary for Development Bernadette Linn said Sunday that the agreement, signed last month, aimed to unite efforts and promote the project near the border with mainland China. Read more>>
New World’s Rosewood Hotels Talks Up Middle East Prospects
Hoteliers in Abu Dhabi view China as their top priority, as shown by Rosewood Hotel Group’s efforts to put in place the necessary infrastructure to tap into the Chinese market, according to the managing director of its Abu Dhabi branch.
The current top clientele for Rosewood Abu Dhabi hail from the US, Europe and the Middle East, said Remus Palimaru, managing director of Rosewood Abu Dhabi. “Outside these groups, our number one target and attention remains China, not only for us, also for our competitors and for the city,” he said. Read more>>
Fresh Asset Sales Point to Persistent Property Crisis in China
As China’s property debt crisis enters its fifth year, there’s little indication that distressed developers are finding it easier to repay debt as a slump in home sales continues. Their dollar bonds are still trading at deeply distressed levels, their debt issuance has nearly dried up, and the sector is a notable laggard in stock markets.
Alarm bells went off again in recent weeks, when the banking regulator told top insurers to report their financial exposure to China Vanke to assess how much support the country’s fourth-largest developer by sales needs to avoid default. Over in Hong Kong, New World Development sought to delay some loan maturities while Parkview Group put up a landmark commercial complex for sale in Beijing. Read more>>
China Keeps Benchmark Lending Rate Unchanged
China’s benchmark loan prime rates remained unchanged, extending a hold for a second month after a reduction in October, the People’s Bank of China said.
The one-year loan prime rate held steady at 3.1 percent, while the five-year rate remained at 3.6 percent, the PBOC said Friday. That marks two consecutive months of unchanged rates after Beijing eased monetary policy in October to boost slowing domestic demand. Read more>>
Japan’s Nomura Real Estate Signs Vietnam MOU With Vinhomes
Vietnam developer Vinhomes and Japan’s Nomura Real Estate Development have signed an MoU on comprehensive strategic cooperation, aiming to leverage the strengths of both sides to bring international-standard products to the market.
Under the deal, Vinhomes, a subsidiary of private conglomerate Vingroup, and Nomura Real Estate will closely cooperate in development of housing (high-rise and low-rise), commercial real estate (shopping malls, office buildings) and logistics centres, as well as other related fields. Read more>>
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