SF REIT’s Tsing Yi facility in Hong Kong
SF REIT kicks off Mingtiandi’s headline roundup today, as the Hong Kong-listed warehouse trust defies China’s economic slump with an upbeat first-half report. Also making the list, Canadian pension fund OMERS seeks opportunities to deploy its biggest war chest in decades and Singapore’s CapitaLand Investment readies a $265 million bond sale.
SF REIT Boosts Revenue, Income Despite Mainland Slump
Hong Kong-listed SF REIT on Thursday released its interim report for the first half of 2024, showing revenue of HK$222.3 million ($28.5 million), up 1.6 percent from the year-earlier period.
The boost in turnover helped the REIT sponsored by Chinese logistics giant SF Holdings to grow its net property income by 2.3 percent to HK$119.3 million in the first half of 2024, according to the company report. Read more>>
OMERS Boss Says Team Scouring for Opportunities
The Ontario Municipal Employees Retirement System has billions of dollars in available liquidity and is preparing for a rebound in deal activity as interest rates come down.
“We have a lot. We have more dry powder than at any time in certainly the last 20 years, waiting for opportunities to deploy,” CEO Blake Hutcheson told Bloomberg. “All of our teams are scouring the earth, knowing what we’re great at, looking for opportunities. They’re all extremely active.” Read more>>
CapitaLand Investment Prices $265M in Senior Notes
CapitaLand Investment on Thursday said its wholly owned CLI Treasury Ltd has priced an offering of S$350 million ($265 million) worth of senior notes due in 2035 at a fixed rate of 3.58 percent.
The notes will be issued under the S$6 billion euro medium-term note programme established by CLI Treasury in 2021. The payment obligations of the issuer under the notes will be unconditionally and irrevocably guaranteed by CLI, the SGX-listed investment arm of property giant CapitaLand. Read more>>
UBS to Liquidate Credit Suisse Real Estate Fund
UBS Group will liquidate a flagship real estate fund in the latest sign of the turmoil caused by investors pulling money out of slumping commercial real estate markets.
The fund, which was inherited in the takeover of Credit Suisse, was highly exposed to some of the weakest sectors. It had over 80 percent of its CHF 1.9 billion ($2.2 billion) in assets in office properties, and the US and Germany were its biggest markets, according to UBS. Read more>>
EQT Aiming to Raise $12.5B for Asia PE Fund
Sweden’s EQT plans to raise $12.5 billion for its next Asia fund, which, if successful, would be one of the biggest-ever pools of private equity in the region.
The actual fund size is dependent on the outcome of the fundraising process, EQT said Wednesday, adding that the hard cap of the fund will be determined at a later date. Read more>>
Australia’s Goodman Outperforms Despite Asset Write-Downs
Goodman Group has turned in an operating performance ahead of guidance and reiterated that its future lies in data centres as global demand for AI and cloud computing surges.
The industrial property trust gave strong operating earnings per security guidance of 9 percent for this financial year — which many analysts expect it to exceed — but it could not escape the global tide of property write-downs and it took a A$5.1 billion hit across its international funds empire, which sits at close to A$80 billion ($53 billion). Read more>>
Chinese Developer Sells Off Sydney Project to Exit Market
Chinese-backed Maville Bay has sold two adjacent commercial properties in northern Sydney for close to A$90 million ($59.6 million) in a sign of the shifting values in the area.
The sale of 116 Miller Street and 173 Pacific Highway to another Asian group is the latest to reflect the fall-off in values in the key market, which is struggling to absorb space as a series of new towers are either getting built or are in planning. Read more>>
China Economic Slump Continues as Industrial, Retail Sectors Disappoint
China’s economic malaise extended into the third quarter, drawing renewed attention to the need for more fiscal stimulus as domestic demand falters under a prolonged housing downturn.
A surprise slowdown in fixed-asset investment to 3.6 percent growth in the first seven months of the year was among the biggest takeaways from data released on Thursday. Retail sales beat expectations largely on a seasonal uptick — boosting China’s stock market — though they remained far below pre-pandemic growth. Industrial production softened slightly even as it continued to outpace consumption. The offshore yuan held onto early losses after the data. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on X, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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