ESR’s new site outside Melbourne includes a bit of space to grow

In today’s roundup of regional news headlines, ESR’s Aussie logistics venture with GIC acquires a Melbourne industrial project and troubled mainland developer Kaisa Group may be running out of options as creditors give its bond swap offer the cold shoulder. Also, SGX-listed Frasers Logistics & Commercial Trust picks up a warehouse in England, and Baring Private Equity Asia invests in a Osaka hotel project set to bring IHG’s Holiday Inn Express brand to Japan.

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ESR-GIC Venture Buying Melbourne Site in Sale-Leaseback Deal

ESR Australia is paying an estimated price of over A$45 million ($32.2 million) for a Melbourne industrial investment with immediate development upside. The 8.2 hectare (20.3 acre) property, 2-50 Glenelg Street, was offloaded by Palla Pharma, which outlaid A$8.1 million in 2014.

The ASX-listed vendor offered it with a part leaseback for a 17,482 square metre office/warehouse on 3.7 hectares. ESR will hold the asset in its Australia Development Partnership, which is majority controlled by Singapore sovereign wealth fund GIC. Read more>>

Kaisa Creditors Said to Reject Bond Swap 

Kaisa’s (1638.HK) bondholders are upping their game. A group of investors has turned down the Chinese developer’s appeal to exchange $400 million in notes due in a week into a new, 18-month bond. The company says the deal could avoid a wider restructuring read more , but with nothing offered to sweeten the pot, it looked a dud from the start.

The investors, who say they own more than 50% of the paper, are instead offering some repayment forbearance in return for discussions on its proposals to inject around $2 billion in fresh funds. Read more>>

Frasers REIT Buys UK Warehouse for $37M

Singapore-listed Frasers Logistics & Commercial Trust has acquired a prime freehold warehouse property to be developed at Worcester Six, a new business park in the UK, for an all-in maximum consideration of £28.3 million ($36.7 million).

In a bourse filing on Tuesday, the trust’s manager said FLCT will fund the development of the new facility. The trust will fund the acquisition through internal resources or existing debt facilities or both. Read more>>

Baring PE Asia Buys Osaka Hotel for Holiday Inn Express Debut

IHG Hotels & Resorts is bringing Holiday Inn Express to Japan for the first time with the opening of Holiday Inn Express Osaka City Centre Midosuji this month.

Following an agreement with owner Baring Private Equity Asia, in what is their first-ever hotel partnership globally, IHG is adding Japan to Holiday Inn Express’s growing list of global destinations. Read more>>

Manulife US REIT’s Private Placement Closes at $0.649 Per Unit

Singapore-listed Manulife US REIT’s private placement closed about 2 times covered and was priced at $0.649 per new unit.

The issue price was at the lowest end of the indicated price range of $0.649 to $0.676 when the proposed placement was announced on Tuesday morning. Read more>>

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Japan’s Aeon Proceeds With Plan to Sell Ministop Korea

Japanese retail giant Aeon has received preliminary bids for its wholly-owned subsidiary Ministop Korea at an estimated KRW 200 billion ($170 million), half the unit’s proposed value back in 2018.

Aeon put up 100 percent of South Korea’s fifth-largest convenience store chain, which trails behind homegrown rivals like CU and GS 25 in the saturated market. Read more>>

China Home Sales Accelerate as Mortgage Restrictions Ease

China’s beleaguered housing market is showing signs of life after banks made it easier for buyers to get their mortgages approved. New homes covering a total area of 12 billion square metres (129 billion square feet) in 42 major cities were sold in the first 20 days of November, 12 percent more than in the same period the previous month, according to Central Wealth Securities, a Chinese broker.

The increase comes after regulators called on lenders to support the market by easing the stringent home loan approvals they had introduced previously to help tame runaway property prices. Read more>>

NPS Adds Warburg Pincus to List of Real Estate Asset Managers

South Korea’s National Pension Service added New York-based private equity firm Warburg Pincus to its pool of 58 global real estate investment managers in the third quarter of this year, according to the pension fund’s quarterly report.

Founded in 1966, Warburg Pincus manages more than $67 billion in global assets. The New York-based investment manager is one of the leading investors in Asian real estate, and its partnerships with world-renowned companies include Singapore-based ARA Asset Management, Vietnam-based BW Industrial Development, Shanghai-based real estate company Mofang and Singapore-based data centre firm Princeton Digital Group. Read more>>

Investors Awaken to Life-Sciences Real Estate’s Recession-Proof Status

The life sciences sector remains in the global spotlight due to ongoing healthcare challenges brought on by the pandemic. The development of new vaccines and effective treatments for COVID-19 are also creating more demand for life sciences properties among investors.

Singapore, which ranks among the top five life science hubs in Asia Pacific, is developing new infrastructure to attract pharmaceutical companies to set up manufacturing operations in the city-state. Read more>>


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