Great Eastern Motor Lodge, located along the Great Eastern Highway, Australia
Singapore’s ongoing romance with Australian assets leads today’s set of real estate headlines from around Asia, with developer Hiap Hoe buying a Perth Hotel. Also in the news, Country Garden’s property management unit issues a profit warning and Bain Capital completes its privatisation of an unfortunate Chinese data centre business.
Singapore’s Hiap Hoe Buying Western Australian Motel for $26.9M
Singapore’s Hiap Hoe on Tuesday announced the purchase of a 198-bedroom freehold motel property in Western Australia for A$40 million ($26.9 million).
The property is Great Eastern Motor Lodge, which is situated along the Great Eastern Highway, the main road linking the domestic and international terminals at Perth Airport to the Western Australian capital’s central business district. Read more>>
Country Garden Services Profit to Fall $576M
Shares of Country Garden Holdings’ listed property management arm tumbled after the unit said profit for this year will likely fall by as much as RMB 4.1 billion ($576 million) due to impairment provisions.
Country Garden Services Holdings closed down 11.7 percent at HK$6.11 ($0.78) per share in Hong Kong today, extending the stock’s decline this year to nearly 70 percent. Read more>>
Bain Completes Privatisation of Data Centre Operator Chindata
Chindata Group Holdings, a carrier-neutral hyperscale data centre provider in Asia Pacific emerging markets, on Tuesday announced the completion of its merger with BCPE Chivalry Merger Sub Ltd, a wholly owned subsidiary of BCPE Chivalry Bidco Ltd, pursuant to a previously announced agreement and plan of merger.
As a result of the merger, the company ceased to be a publicly traded company and became a wholly owned subsidiary of BCPE Chivalry Bidco. Read more>>
Hong Kong to Offer Residency to Wealthy for $3.8M Investment
Hong Kong is starting a program next year that will give residency to people who invest HK$30 million ($3.8 million) into the city as it steps up efforts to revive its status as a financial centre and bolster revenue.
The plan, set to start in the middle of 2024, includes a mandatory HK$3 million investment into a portfolio run by Hong Kong Investment to support local technology and innovation. Other eligible assets include stocks, debts and funds. Industrial and commercial real estate are capped at HK$10 million. Residential real estate is excluded. Read more>>
EC World REIT Renews Hangzhou Tenant
Part of EC World REIT’s Hengde Logistics warehouse property in Hangzhou will remain occupied by its existing tenant, China Tobacco.
On Tuesday, the manager said China Tobacco selected the 74,057 square metres (797,142 square feet) of space in the property, through a tender process, as its warehouse for the storage of raw materials. Read more>>
Hong Kong Economy, Property Market to Benefit From Rate-Cut Cycle
Hong Kong businesses and mortgage borrowers can look forward to lower interest rates as the first rate cut in the US could come as early as March, with local banks following suit, according to a survey of 10 bankers by the South China Morning Post.
All 10 bankers predicted that the US Federal Reserve would start cutting interest rates some time next year, with one expecting the first reduction in March. Four said it would happen during the April-to-June quarter, while the rest expect it in the second half of 2024. Read more>>
Sabana REIT Calls Tenant Counterclaim ‘Misconceived’
Sabana Industrial REIT tenant Kleio One-Solution has launched a counterclaim after the REIT’s trustee served it an originating claim in November.
The originating claim is seeking possession of its premises and payment of some S$2.1 million ($1.6 million) in outstanding fees. Read more>>
Korean Overseas Office Building Wager Going From Bad to Worse
Banks and asset managers are expecting a wave of bad loans to hit South Korea in the coming months, as the country counts the cost of an ill-starred splurge on overseas office blocks and local infrastructure.
Fund managers in Seoul were among the biggest investors in European and US commercial buildings in recent years, and the property crisis has left them with swaths of assets whose values have plunged, many due for refinancing. Others piled into domestic infrastructure projects, where defaults have already soared. Read more>>
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