Foreign countries’ relaxed policies have made an impression on Hongkongers, Peter Woo says (Getty Images)
In today’s roundup of regional news headlines, a billionaire property tycoon urges an end to Hong Kong’s onerous travel restrictions, Singapore’s Lian Beng looks to unload a Joo Chiat commercial property, and SGX-listed Cromwell E-REIT sells some industrial assets.
Wharf’s Peter Woo Calls for End to Hong Kong Travel Curbs
One of Hong Kong’s wealthiest developers made a rare open call for the government to end inbound travel restrictions, in the latest sign that even the loyal property sector is losing patience with the city’s strict COVID-19 policies.
Peter Woo, who controls Wharf Holdings and Wharf Real Estate Investment with a net worth of $18.5 billion, released an article urging an end to the restrictions for inbound travellers. “Hong Kongers are smart,” Woo wrote. “They don’t understand why Hong Kong can’t do what other places overseas are doing.” Read more>>
Lian Beng to Sell Joo Chiat Property for S$42M
Singapore developer Lian Beng on Thursday said its wholly owned subsidiary Lian Beng (Joo Chiat) has granted an option to sell a commercial property at 381 Joo Chiat Road to an unrelated third party.
The option is exercisable by the purchaser within 14 days from the date of the option. The aggregate sale consideration is S$42 million ($30 million). Read more>>
Cromwell E-REIT to Divest 3 Assets for $22M, Above Valuation
Cromwell European Real Estate Investment Trust is selling three of its non-core, light industrial/logistics assets at a total consideration of €22 million ($22.1 million).
In a midday filing on Friday, the Singapore-listed trust’s manager said the disposal represents a 28 percent premium to the properties’ combined valuations at the end of June. The divestment is expected to be completed in the fourth quarter of this year. Two of the three assets, Bischofsheim II and Hanau, are located in Germany. Read more>>
Chinese Builder Logan Maps Out $6B Offshore Debt Plan
Logan Group has briefed some creditors about a draft proposal to restructure more than $6 billion in offshore borrowings, as China’s indebted developers seek solutions after a series of defaults.
The proposal would include public bonds plus private notes and some syndicated loans, according to people familiar with the matter. The plan would extend the average term of Logan’s debt to slightly more than five years, said one of the people, who asked not to be identified discussing private information. Logan’s dollar bonds due in the next three years are indicated at below 17 cents on the dollar, according to prices compiled by Bloomberg. Read more>>
Kwun Tong Complex Job Gets 24 Expressions of Interest
The Urban Renewal Authority’s Kwun Tong town centre redevelopment project’s areas 4 and 5, which have introduced flexibility in plot ratios in shaping a building complex with government facilities and commercial operations, have received 24 expressions of interest.
The Kwun Tong spread is the URA’s largest-ever single redevelopment project, spread across five areas of the Kowloon district. The last phases of the redevelopment cover 25,595 square metres (275,502 square feet). Upon completion there can be a maximum total gross floor area of 201,220 square metres. Read more>>
Singapore-Based 99 Group Considers Buying Vietnam’s Propzy
Singapore-based property platform 99 Group is reported to be exploring options to purchase Vietnamese proptech startup Propzy.
Propzy is one of a dozen potential targets in Southeast Asia for the group, signalling its intention to expand after raising $37 million in a round led by Hong Kong-based Gaw Capital. Read more>>
Mortgage-Backed Green Securities Surging in China, Fitch Says
Mortgage-backed green securities have surged in popularity in China, as Beijing prioritises environmentally friendly buildings to meet its climate targets, Fitch Ratings said.
Asset securitisation deals backed by green buildings surged to RMB 110 billion ($15.8 billion) in the first half of the year, compared with RMB 123.3 billion for the whole of 2021, according to a report released by Fitch this week. Last year’s volumes had already exceeded total issuance in the preceding five years. Read more>>
Hong Kong REITs Association to Lure Foreign Investment, Attract New Listings
At first glance, Hong Kong would seem to be an ideal home for a REIT — which bundles properties together as an investment fund, sold through a public listing — but sky-high property prices have stymied this approach, as property owners and public investors can readily find better returns without going through an investment trust.
This is soon to change. Three of the industry’s top executives recently formed a new trade group, called the Hong Kong REITS Association. Read more>>
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