Peter Woo found 126 billion ways to persuade his shareholders
Shareholders voted to approve a HK$126 billion buyout of Hong Kong’s fourth largest developer this week, making that megadeal rank at the top of today’s roundup of real estate headlines. In other news from around the region, a US data centre REIT has started work on its first Korean facility, Singapore is loosening up its circuit breaker and Hong Kong’s retail market continues to slide. Keep reading for all these stories and more.
Wheelock Shareholders Approve HK$126B Buyout
Wheelock and Company, Hong Kong’s fourth-largest developer by market value, will bring the curtains down on its 57-year presence on the Hong Kong stock exchange this week, after shareholders agreed to a privatisation plan amid a stock slump.
More than 99 per cent of Wheelock’s shareholders consented to the plan at a meeting on Tuesday, the company said in an exchange filing. The stock will trade for the last time on June 18, it added. Read more>>
Digital Realty Kicks Off Construction of First Korean Project
Digital Realty Trust has kicked off construction on Digital Seoul 1, its first data center in South Korea. Plans call for a 162,000-square-foot, 10-story building with two basements. The facility, which is expected to provide 12 MW of power, is slated for delivery by the end of next year.
The new property is dubbed ICN10 and will be the first carrier-neutral data center in the country. The building will feature two 4-ton lifts, 2,200 cabinets, access to local internet service providers and international Tier 1 carriers and two-factor authentication with biometric access. Read more>>
Tissot, Prada Abandon Hong Kong’s Russell Street
For years it was the world’s most expensive shopping street, overshadowing anything Paris or London had to offer, its pavements brimming with shoppers hunting for Prada bags, Chanel perfumes and Blancpain watches.
But Russell Street, in Hong Kong’s bustling Causeway Bay, has lost its lustre – and a lot of its high-end tenants. The luxury fashion houses are slowly making way for more humble retailers. Read more>>
Singapore Loosens Circuit Breaker on Friday
Singaporeans will be able to shop and eat at restaurants from Friday, though they’ll have to wait for bars to reopen and concerts to happen. The country will further relax restrictive measures to contain the spread of the coronavirus this week, with the government assessing the situation in the city-state to be under control.
After June 18 at 11:59 p.m., most activities will be allowed to resume subject to safe distancing principles, according to a press release from the Ministry of Health on Monday. Small social gatherings of up to five people can take place, while individuals must maintain a distance of at least one meter at all times. Read more>>
HK Foreclosures Set to Reach Post-2009 High
The number of foreclosed properties in Hong Kong could reach the highest level since the global financial crisis early next year, as owners struggle to repay mortgages amid a recession-hit economy that has taken a toll on businesses and pushed the unemployment rate to the highest in more than 15 years.
“The number of foreclosed properties will surge next year to [between] 1,000 and 2,000,” said Henry Choi, a director at property auctioneer Century 21 Surveyors, comparing the situation in 2009 when a downturn induced by the global financial crisis led to 3,600 foreclosures. Read more>>
Commercial Deals in Hong Kong Fall to Lowest Level Since 2007
This year, cross-border commercial property deals in Hong Kong have dwindled to 5 per cent of total transactions in the second quarter, the lowest since RCA began collecting data on the local market in 2007. No deal was recorded in the first quarter, making it Asia-Pacific’s second least liquid market after Beijing.
There were 19 deals involving properties valued at least HK$100 million (US$13 million), according to data compiled by property consultancy Cushman & Wakefield. It represents a 71 per cent retreat from a year earlier, with investment volumes at their lowest since the 2008 crisis. Read more>>
Tune in again soon for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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