Singapore's Metro Holdings Buys Stake in Boustead Fund

The GSK building in Singapore’s One North is among the assets in the fund portfolio

In this edition of Mingtiandi’s news roundup, a Singapore-listed property group expands its hometown presence with the acquisition of some industrial assets, a Guangzhou developer’s shares tumble amid reports of a city-led bailout, and Carrefour closes on the purchase of a Taiwan retail chain.

Metro Holdings Invests S$77M in Boustead Singapore Fund

SGX-listed property investment and development group Metro Holdings has expanded its presence in Singapore through the acquisition of a 26 percent stake in a portfolio of 14 business parks and high-spec industrial and logistics properties.

The investment, worth about S$77 million ($58.4 million), was made by subscribing to units and notes to be issued by Perpetual (Asia) in its capacity as trustee of Boustead Industrial Fund. Read more>>

Guangzhou Govt Bails Out R&F Amid China Debt Crackdown

Shares of Guangzhou R&F Properties tumbled by more than 3 percent after a report that the developer had pledged its stakes in three companies with $10 billion in combined assets to a unit under the Guangzhou city authorities to meet government limits on debt exposure.

The pledges to Guangzhou City Construction Investment Group comprise a 25 percent stake in Sheungjin Real Estate Development, which owns the six-year-old office project Yingkai Square in Tianhe district; 50 percent of Guangzhou Fujing Jishan Real Estate Development with a RMB 20.6 billion ($3.18 billion) project at Jishan Village in Tianhe; and 100 percent of Tianli Construction, according to a report on the property website Fang.com, which did not divulge the source of its information. Read more>>

First REIT Plans S$158M Rights Issue to Avoid Default

First REIT, Singapore’s first listed healthcare real estate investment trust, is to raise S$158.2 million ($119.7 million) in a rights issue to meet its debt covenants and avoid a default.

It intends to sell 791.1 million shares at S$0.20 per share. The REIT said it faces a significant refinancing hurdle with S$395.7 million in debt coming due within the next 18 months and S$196.6 million due in March. Read more>>

Carrefour Completes Acquisition of Taiwan Retail Chain

Carrefour announced that it has closed the acquisition of Wellcome Taiwan, including 224 proximity stores — 199 Wellcome stores with an average sales area of 420 square metres (4,521 square feet) and 25 Jasons stores with an average sales area of 820 square metres — as well as a warehouse.

”The acquired stores will henceforth benefit from Carrefour’s commercial policy and purchasing conditions, while Wellcome will bring its recognized expertise in fresh produce and contribute to the development of food e-commerce,” the company said in a statement. Read more>>

No Growth in China Home Sales in 2021, Says E-House CEO

There will likely be no year-on-year growth in the amount of residential property sold in China in 2021 as new curbs on real estate companies’ financing affect their ability to invest in new developments, the head of a real estate service provider predicted.

The total floor space sold may actually decline in the coming years, Ding Zuyu, CEO of Hong Kong-listed E-House (China) Enterprise Holdings Ltd, said at a press conference last Thursday. Read more>>

Banks, Developers Sink as China Caps Loans to Curb Risk

Shares of Chinese banks and developers tumbled on Monday after regulators made an unprecedented move to cap loans for the real estate sector, the latest effort to snuff out systemic risks.

The CSI 300 Financials Index dropped 1.2 percent, while the gauge of Shanghai-listed property developers fell 2.3 percent to the lowest in six months. Read more>>

SG Private Home Prices Rose 2.1% in Q4 to Reach Two-Year High

Prices of private homes in Singapore rose for a third consecutive quarter, defying the COVID-19 pandemic and a recession.

The overall price index for private residential properties climbed 2.1 percent in the fourth quarter of 2020, faster than the 0.8 percent increase in the third quarter, according to flash estimates from the Urban Redevelopment Authority on Monday. Read more>>

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