Oyo’s rapid expansion has yet to yield a profit
In today’s roundup of regional news headlines, India’s Oyo Hotels files papers for an IPO that could value the firm at $12 billion, Hong Kong-listed ESR buys a Brisbane industrial estate to combine with an already-held adjacent property, and Singaporean developer Keppel Land looks to reap more revenue from projects in Southeast Asia.
Softbank’s Oyo Aims for IPO at $12B Valuation
Softbank-backed Oyo Hotels has filed draft papers with the Securities and Exchange Board of India, making its long-rumoured quest to go public finally official.
The Mumbai-based offering will consist of a fresh issue of shares of up to $942.8 million, and an offer for sale of as much as $193 million, according to Reuters, with the company seeking a valuation of $10 billion to $12 billion. Read more>>
ESR Expands Brisbane Industrial Estate With $12.9M Deal
ESR Australia has paid A$17.7 million ($12.9 million) for a seven hectare (17.3 acre) industrial development site near Brisbane next to the group’s Gilmore Industrial Estate — which will now be extended.
The combined 12 hectare site can yield about 65,000 square metres (699,654 square feet) of built space and will be held in the ESR Australian Logistics Partnership, which is majority-owned by Singapore sovereign wealth fund GIC. Read more>>
Hong Kong’s Homebuyers Snatch Up Nan Fung Project
Hong Kong’s homebuyers piled into the property market on the National Day holiday, snapping up more than 80 percent of the flats on offer, encouraged by an improving local economy.
Market observers said buyers were rushing into the market to get ahead of rising prices and potentially higher mortgage rates, as the Hong Kong Monetary Authority was likely to raise interest rates in lockstep with the US Federal Reserve’s tapering measures, which may come sooner than anticipated. Read more>>
Keppel Land Aims to Double Revenue Share From ASEAN
Property developer Keppel Land aims to more than double its revenue share from the Southeast Asian market (excluding Singapore) in the medium term, with plans to ramp up its Vietnam footprint and overhaul its approach to the Indonesian market.
Speaking to the Business Times, Keppel Land chief executive Louis Lim said the envisioned regional expansion is very much part of blue-chip parent Keppel Corp’s Vision 2030 strategic transformation roadmap: “It is about really accelerating what we’re doing across markets and diversifying, for us, out of a China-led business. I think we want to make sure that we have legs in more geographies, without being too diversified.” Read more>>
Chinese Cities Ring-Fence Against Evergrande Failures
Local authorities in mainland China are taking a hard look at the property projects undertaken by China Evergrande Group, as they ring-fence their jurisdictions and communities from a possible collapse in the world’s most indebted developer with liabilities of $300 billion.
At the Yunpu Street area in the Guangdong provincial capital of Guangzhou, where the property magnate Xu Jiayin first founded Evergrande in 1996, the Canglian community banned the developer from taking part in the reconstruction of a local shanty town, according to a notice last week. The Canglian community was concerned about the cash-starved developer’s capacity to complete the work at the 113 hectare (279 acre) project, which is expected to last three years. Read more>>
Elite Commercial REIT Targets S$1 Billion Market Cap to Wow Investors
Shaldine Wang, chief executive of the manager of Elite Commercial REIT, is on a mission to whet investor appetite with more acquisitions, bump up the trust’s market value and reassert its recession-proof appeal.
Elite Commercial REIT made its debut in February last year as the first UK-focused real estate investment trust to be listed in Singapore. It is also the first REIT here to be denominated in the British pound. Read more>>
New World to Research Solutions to Hong Kong Housing Shortage
Hong Kong’s New World Development said Thursday that it would launch a research project to tackle a chronic housing shortage and sky-high home prices in one of the world’s most expensive property markets.
The news comes as private home prices in the global financial hub hit a record high in July and as the government has stressed its commitment to a long-term pledge to make housing more affordable. Read more>>
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