A Fosun-owned insurer is said to be paying around £160 million to buy Smithson Plaza from Tishman Speyer
In Mingtiandi’s latest roundup of regional news headlines, a US developer sells a London mixed-use property to a Chinese-controlled Portuguese insurer, the family of a mainland hotpot tycoon snaps up a pricey Singapore bungalow, and the buyout of a Chinese duty-free operator hits a corruption investigation snag.
Tishman Speyer Sells London Prize to Fosun-Owned Insurer
US developer Tishman Speyer has sold Smithson Plaza, a mixed-use property in London’s West End, to the real estate investment arm of Fidelidade, a Portuguese insurance company controlled by Shanghai-based Fosun Group. The 14-storey building is said to have changed hands for around £160 million ($218 million).
Tishman Speyer acquired the estate on behalf of its value-add fund, TSEV VII, in March 2016 from The Economist. The developer then completed an initial refurbishment in June 2018 and set about leasing the vacant floors while carrying out further works across all buildings on the estate. Read more>>
Family of Haidilao Co-Founder Buys SG Bungalow for S$42M
The family of Singapore’s richest billionaire, a co-founder of Sichuan hotpot chain Haidilao, is buying a freehold good class bungalow in Gallop Road at the highest price per square foot for the area.
According to documents seen by the Straits Times, the option to purchase the 21,649 square foot (2,011 square metre) bungalow, located a stone’s throw from the Singapore Botanic Gardens, was granted to Zhang Hanzhi at S$42 million ($31.8 million) on 22 December. Read more>>
Gree Buyout of Zhuhai Duty Free May Be Shelved as Chair Probed
Gree Real Estate’s ongoing acquisition of Zhuhai Duty Free Enterprises Group might be suspended or terminated after its chairman recently came under investigation for securities violations, the Chinese property developer announced yesterday.
Lu Junsi, the chairman, is under investigation by the China Securities Regulatory Commission on suspicion of insider trading, Gree Real Estate announced on 30 December, sending the company’s stock plunging over 20 percent since 31 December. The planned acquisition is at risk, the company said, warning of abnormal stock volatility. Read more>>
Work From Home Won’t Hurt HK Office Market: JPMorgan
The shift to working from home may not harm office demand much in Hong Kong, the world’s most expensive property market, as companies and workers there brush against the limitations of the arrangement.
In contrast to much of the rest of the developed world, the work-from-home trend may have been overplayed in Hong Kong, said Cusson Leung, head of Asia property research at JPMorgan Chase & Co. Read more>>
Relocation of Luxury Brands to China Weighs on HK Office Rents
Some luxury retailers are considering relocating their regional headquarters to China from Hong Kong to be close to their major growth market, which could add further pressure on office rents in the city, according to market observers.
Brands including Versace, Salvatore Ferragamo and LVMH-owned Bulgari, Fendi, Givenchy and Celine reduced headcounts in their Hong Kong headquarters last year and shifted more resources to mainland China, according to market sources. Read more>>
Maharashtra Cuts Levies on Developers by 50%
In a move that could lead to reduced house prices in Maharashtra, the state government on Wednesday cleared a proposal to cut levies on real estate by 50 percent until December 2021. This will essentially result in reduction of several premiums that developers have to pay as part of development of a project.
According to real estate industry experts, if these reductions are passed on to homebuyers, prices may come down. Anuj Puri, chairman of Anarock Property Consultants, said: “Rationalising these premiums will definitely give a boost to Mumbai’s real estate industry. Reduced development costs to developers and therefore lower purchase cost to homebuyers can result in increased demand.” Read more>>
135 Singapore Shophouses Sold in 2020, Up 10%
Despite the economic downturn caused by the outbreak of COVID-19 in 2020, 135 shophouses were sold in Singapore during the year, surpassing the 123 sold in 2019 by 10 percent, according to URA caveats lodged as of 5 January.
“The demand for shophouses is still strong as they are in limited supply. Shophouses are looked upon as defensive assets that retain their value during an economic downturn,” said Clemence Lee, senior director of capital markets for Singapore at CBRE. Read more>>
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