New World Development chairman Henry Cheng (Image: New World Development)
Hong Kong’s New World Development struggles to complete a deal for a fresh $2 billion loan, with that story leading today’s headline roundup. Also in the news, Australia’s Macquarie Technology buys a Sydney site for a data centre and Oracle teams with DayOne for cloud services in Indonesia.
New World Misses Self-Imposed Goal to Complete $2B Loan Deal
New World Development missed a self-imposed target to complete an up to HK$15.6 billion ($2 billion) loan led by Deutsche Bank, according to people familiar with the matter, as challenges persist even after the distressed developer closed a major refinancing deal last month.
The latest deal hasn’t been completed yet, as some of New World’s existing financiers have expressed little interest in further increasing their exposure to the beleaguered developer, said the people, who asked not to be identified discussing private matters. Deutsche Bank is seeking to attract new lenders to join, they said. Read more>>
Macquarie Technology Buys Sydney Condo Site for Data Centre Conversion
Macquarie Technology Group has added fuel to Australia’s AI-driven data centre boom by snapping up a sprawling site in Sydney’s north once earmarked for high-rise apartments.
ASX-listed Macquarie Technology will pay A$240 million ($157 million) for the Macquarie Park site that has been caught up in the complicated state planning system for almost a decade. The Talavera Road property, which it will buy via an option agreement, is near another data centre development it has in the suburb. Read more>>
Oracle Leases Data Centres From GDS’s DayOne for Indonesia Expansion
Oracle will partner with DayOne Data Centers Singapore to establish its first cloud services center in Indonesia, people familiar with the matter said, boosting its partnership with a key regional operator that counts TikTok owner ByteDance as its largest customer.
The American tech giant will lease DayOne’s data centres located at Nongsa Digital Park on the Indonesian island of Batam, according to the people, who asked not to be identified discussing private information. Oracle will be the sole tenant at DayOne plots that could support facilities with at least 120 megawatts of power, they said. Read more>>
US Self-Storage Giant Backs Enhanced Bid for Aussie Operator
Two months after Abacus Storage King rejected a A$1.9 billion ($1.2 billion) buyout bid from a South African billionaire and a US giant, the consortium is back with a better offer.
South African billionaire Nathan Kirsh’s Ki Group and US-listed Public Storage have presented a A$1.65 per share offer to the board, a 14.7 percent increase on their initial A$1.47 offer. Read more>>
Hong Kong Banks Tighten Credit for Commercial Property
More than five years ago, when New World Development asked banks in Hong Kong for a billion-dollar syndicated loan to fund the construction of a lavish shopping mall by the city’s airport, banks had to fight for a share of the deal — and they did not ask for collateral.
For years, blue-chip Hong Kong property firms and the family dynasties behind them have obtained generous credit lines from banks without the need to provide collateral, in part thanks to their long-standing relationships, impeccable financials and the eagerness of banks to secure large deals. Until recently, interest rates were low and property prices were climbing rapidly. Read more>>
Shanghai’s West Bund Seen as Bright Spot in Gloomy Office Market
Shanghai’s West Bund, an 11 kilometre (6.8 mile) waterfront area in mainland China’s financial capital, has bucked the property downtrend plaguing the sector, as companies and retail brands flock to office buildings and malls in the zone.
The vibrant area, located on the west bank of the Huangpu River in the southwestern Xuhui district, is emerging as the latest central business district, with premium office buildings and retail space like Hongkong Land’s Westbund Central. The city kicked off the redevelopment of the West Bund in 2010, which involved building world-class residential, commercial, office and entertainment complexes. Read more>>
Singaporeans Snap Up Units in Osaka Hospitality Project
Metro City Osaka, a boutique bed and breakfast property comprising 60 units by TY Properties Development — a Japanese developer, manager and operator of guesthouses — was launched in Singapore over the weekend of 12-13 July. According to Savills Singapore, the project’s marketing agency, over 30 units allocated to Singapore buyers were taken up by 3pm on Sunday.
Located in Osaka’s Naniwa ward, Metro City Osaka is a nine-storey development comprising 59 B&B-style residential units and one retail shop. The property is a two-minute walk from JR Imamiya Station, seven minutes from Daikokucho Station and one stop from JR Namba. Read more>>
Korea’s NPS Backs $728N Domestic Private Credit Fund
IMM Credit & Solutions, the private credit unit of South Korean investment firm IMM Holdings, has raised nearly KRW 1 trillion won ($728 million) for its first blind credit fund from more than 30 domestic institutional investors, including the National Pension Service.
The fund, initially targeting KRW 300 billion, was upsized to KRW 800 billion to meet overwhelming demand from local limited partners, and it ultimately closed at KRW 953 billion in late June, making it the largest blind credit fund ever raised in Korea, the firm said last week. Read more>>
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