Tahoe Sells Jiangxi Stake to Shimao to Beat Bond Deadline and More Asia Real Estate Headlines

Financial drama leads the real estate news from China today as Tahoe Group announces the sale of another project stake to Shimao in its race to meet a Thursday deadline for repaying investors in a RMB 3 billion bond.

In other news, Singapore’s Alpha Investment Partners is said to be busy with another office deal in Seoul and Singapore’s Sim Lian managed to sell 272 homes at the launch of the country’s biggest condo project over the weekend. All these stories and more are in Mingtiandi’s headline roundup today.

Tahoe Sells 51% of Jiangxi Project to Shimao for RMB 1.8B

Troubled mainland developer Tahoe Group on March 25^th announced the sale of a resort project in Nanchang, the capital of China’s Jiangxi province to rival Shimao Properties for RMB 1.8 billion, according to a statement to the Shenzhen stock exchange.

Tahoe had acquired the stalled residential, hotel and retail development on Yinmeng Lake last year for RMB 2.93 billion, with analysts estimating that the project now has liabilities of RMB 3.26 billion. The deal was announced just days after Tahoe had sold a stake in a Hangzhou project to Shimao for RMB 378 million, as it races to repay a RMB 3 billion bond this week. Read more>>

Alpha Said Poised to Buy Pair of Seoul Buildings for $1.3B

Alpha Investment Partners, part of Singapore-based Keppel Capital, is set to secure over $250 million from selling two Seoul office buildings for around 1.5 trillion won ($1.3 billion) after filling them with big-name companies such as Starbucks and WeWork.

Once the transactions were completed, Alpha Investment will be able to exit three value-add property investments it has made in Seoul since 2011, while another unit of Keppel is poised to scoop up value-add deals worth an estimated 450 billion won in South Korea. Read more>>

US Investors Lead APAC Capital Markets Deals in 2019 Q1 Says RCA

Investors from the United States continued to be the biggest spenders on commercial property in Asia-Pacific in the first quarter of 2019, according to New York-based data provider Real Capital Analytics, having surpassed their Asian counterparts in 2018.

According to the company, as of Monday, US investment in the region’s property markets this year amounted to US$3.2 billion. Hong Kong was second with US$3.1 billion, followed by Singapore at US$636 million, Australia at US$528 million and mainland China with US$522 million. Read more>>

Hyderabad Top India Target for Private Equity Real Estate Deals in 2018

Hyderabad witnessed a sudden burst in private equity (PE) investments in 2018, making it the second most attractive investment destination after Mumbai, positioning ahead of Bengaluru and Chennai.

The city attracted over $1.1 billion, a more than three-fold increase in investments compared to $320 million attracted between 2015 and 2017. This growth spurt was largely led by commercial real estate, with the Phoenix Group receiving vast private equity infusions through multiple deals amounting to over $750 million, a ‘Private Equity in Indian Real Estate’ report of Anarock Property Consultants said. Read more>>

Construction Said to Restart on Oceanwide Plaza in LA

The three cranes hovering over the Oceanwide Plaza megadevelopment in Downtown LA stood motionless on Wednesday morning, but about 15 workers in orange construction vests milled about.

After slowing to a halt two months ago, work is gradually resuming on the $1 billion project in South Park, the development’s representative confirms. While the project seems to be forging ahead, its debts to subcontractors is growing.

In one month, the amount it owes has almost doubled to nearly $100 million. As recently as Monday, a subcontractor recorded a mechanics lien for $1.4 million, an outstanding payment for architectural concrete work, a Curbed review of publicly available real estate records shows. Read more>>

Sim Lian Project in SG’s Tampines Sells 272 Units on Launch Weekend

Singapore’s largest condominium project, Treasure at Tampines, moved 272 units at an average S$1,280 per sq ft (psf) over its launch weekend.

That translates to about 12 per cent of the 2,203 units in all, and about 56 per cent of the 490 units developer Sim Lian launched over the weekend.

The performance, which experts deemed as “credible”, is likely to be monitored closely by developers of other upcoming mega-launches like Amber Park and Normanton Park. Read more>>

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