Starwood Raises $10B for Latest Fund and More Asia Real Estate Headlines

Fund raising leads the way as we start off another investment week in Asia, with Barry Sternlicht’s Starwood Capital announcing that it has raised $10 billion for a distressed opportunity fund aimed at properties worldwide.

Also hoping for fresh returns from embattled entities is Cushman & Wakefield, which is investing $150 million in WeWork on the contingency that the shared office provider make it to a public market soon. And there can be no discussion of distress without taking a look at which mainland developers are in line to default this week, as Evergrande’s woes continue to drive down property stocks.

Starwood Capital Raises $10B for Global Distressed Real Estate Fund

Starwood Capital Group said on Friday it had raised $10 billion for its latest real estate fund, bringing the U.S. investment firm’s total assets under management to over $95 billion.

The fundraise for Starwood Distressed Opportunity Fund XII exceeded the $7.6 billion it had raised for a similar fund in 2018, the company said. Read more>>

C&W Investment in WeWork Rests on Successful Stock Listing

Cushman & Wakefield Plc agreed to invest $150 million in WeWork Cos., contingent on the flexible work company successfully completing its forthcoming stock listing, a person familiar with the matter said.

The investment was born of a partnership the two companies unveiled Aug. 9. They said at the time that they were discussing a potential investment but hadn’t signed a definitive agreement. Read more>>

Defaults Loom Over More China Property Developers This Week

The fallout in China’s property sector is showing no signs of abating, as more developers face the threat of default — even as uncertainty over the fate of heavily indebted Evergrande looms.

All eyes will be on Chinese real estate developer Sinic Holdings, which warned last week that it’s not likely to repay offshore bonds worth $250 million due on Monday. There was still no word from the developer as of noon. CNBC has reached out to the company. Read more>>

Asia Pacific Prime Office Markets See Uneven Recovery: Knight Frank

Global property consultancy firm Knight Frank has released its Asia Pacific Prime Office Rental Index for Q3 2021.

The index saw a 0.3% quarter-on-quarter decrease, and a 3.1% year-on-year decline – a continuation of the deceleration of the rental decline since the beginning of 2021, despite the resurgence of cases in many markets across the region. Read more>>

China Property Shares Stumble on Tax Worry, Signs of Weakness

Chinese property shares fell on Monday, as Beijing pushed ahead with plans for a property tax and amid fresh signs of weakening in the real estate market.

But Chinese developer Kaisa Group’s coupon payment for a dollar bond and the central bank’s efforts to calm nerves over China Evergrande Group’s debt woes, helped in part to offset the overall bearish mood in the property sector. Read more>>

99% of Homes at SG Luxury Project Sold by End of Launch Weekend

Kimen Group has sold 104 of the 105 units launched for sale at its Jervois Mansion condominium project, with Singaporeans making up the majority of buyers.

Twenty-five of the 130 units in the freehold project in Jervois Close in the River Valley area have been retained by the niche property developer for long-term investment. Read more>>

Cromwell Pays $137M for Brisbane Office Tower

ARA Asset Management-controlled Cromwell Property Group has agreed to acquire 100 Creek Street, a 24-storey office tower in Brisbane, Australia, for A$184.7 million ($136.6 million), on behalf of Cromwell Direct Property Fund(DPF).

Cromwell said the office building is the second office asset to be purchased by the fund in Brisbane this year after it secured 545 Queen Street, Brisbane in May. Read more>>

Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.