Hong Kong Tycoon Sells Peak Mansions for $110M and More Asia Real Estate Headlines

A Hong Kong tycoon sells three mansions on Peak Road for $110 million, with that story leading Mingtiandi’s headline roundup today. Also in the news, Malaysia’s AIMS launches a data centre in Kuala Lumpur and an influx of mainland Chinese pupils boosts demand for Hong Kong student housing.

Troubled Tycoon Sells Mansions on Hong Kong’s Peak for $110M

Three houses on the Peak have been sold for HK$860 million ($110 million), the second big transaction in a month by a wealthy family in Hong Kong.

Three mansions at 99-103 Peak Road were sold for HK$60,000 per square foot, according to local media Sing Tao, which cited unidentified sources. Each mansion has a private terrace and a swimming pool. Read more>>

Malaysia’s AIMS Launches Kuala Lumpur Data Centre

Malaysia-based AIMS Group has launched a data centre in Kuala Lumpur.

The DigitalBridge-owned company this week launched Bangunan AIMS (aka KL2), a 7.5-megawatt data centre adjacent to Menara AIMS (KL1) in the Malaysian capital. The new facility offers densities of up to 20 kilowatts per rack. Read more>>

Mainland Influx Boosts Hong Kong Student Housing Demand

An influx of mostly mainland Chinese students into Hong Kong is leading to higher rents and more investment in college housing.

Student accommodation has emerged as one of the few remaining bright spots in Hong Kong’s prolonged property downturn, as universities allow more enrolments from non-residents. Read more>>

SHKP Plans 600-Unit New Territories Residential Project Under Scheme

Sun Hung Kai Properties said it plans to develop a 600-unit residential project in Fanling through a land exchange scheme.

The land exchange deal involves the first phase of the lease of SHKP’s site in Area 10, Fanling North, with a site area of 98,898 square feet (9,188 square metres) and a permissible gross floor area of 308,144 square feet at a land premium of HK$516.68 million ($66.1 million). Read more>>

OUE REIT Distributions Fall 11% Despite Revenue, Income Boost

Singapore-listed OUE REIT reported a distribution per unit of S$0.0093 for the first half of its fiscal year ended 30 June, down 11.4 percent compared with the corresponding year-ago period, the trust’s manager said Wednesday.

DPU dropped even as revenue and net property income for the six-month period rose. Revenue grew 5.7 percent year-on-year to S$146.7 million ($109.1 million), while NPI climbed 1.6 percent year-on-year to S$117.1 million. Read more>>

Frasers Centrepoint Trust’s Retail Portfolio Achieved 99.7% Occupancy in Q3

The manager of Frasers Centrepoint Trust on Wednesday announced that committed occupancy for its retail portfolio grew one percentage point year-on-year to 99.7 percent in the third quarter ended 30 June.

All the REIT’s retail malls now have more than 99 percent committed occupancy. The asset enhancement initiative at the Tampines 1 mall is on track to be done by September, with 100 percent committed occupancy; the projected return on investment is expected to outperform the 8 percent target, the manager said. Read more>>

China Commercial Property Weakness Now a Risk for Banks: S&P

Chinese banks’ substantial exposure to commercial real estate poses a risk to lenders if demand does not pick up.

At RMB 8.87 trillion ($1.2 trillion) in 2023, loans for office buildings, shopping malls and logistics facilities made up 5.2 percent of lenders’ aggregate loan book, according to S&P Global Market Intelligence data. Loans to the sector amounted to RMB 7.29 trillion in 2019, when it accounted for 6.6 percent of total loans. Over the same period, banks’ total exposure to the real estate sector, including residential and commercial, declined to 25.9 percent from 32.3 percent. Read more>>

SGX-Listed Elite UK REIT Secures $103M in Fresh Credit

The manager of Elite UK REIT announced on Wednesday that the Singapore-listed trust’s wholly owned subsidiaries Elite Amphora and Elite Cask have entered into a loan agreement for a 39-month term and revolving facilities of up to £80 million ($103.1 million).

Funds from the facilities will be used, among other things, to refinance the REIT’s existing borrowings. As at the date of the announcement, no funds had been drawn down under the deal. Read more>>