Hong Kong’s shaky office market looks like a boon for at least one major U.S. investment manager, Chicago-based Citadel reportedly tripling its IFC footprint. Also in the news today, Swire Properties announced plans for its first hotel in Tokyo and ESR-Logos REIT announced plans to sell certain non-core assets.
Citadel expands in Hong Kong’s IFC as rents drop
Ken Griffin’s Citadel and Citadel Securities snap up additional offices in Hong Kong to accommodate expanding teams, a vote of confidence in a city that has seen an exodus of professionals frustrated by its Covid restrictions and the tightening grip of Beijing.
Hedge fund Citadel leased the 59th floor of the high-end Two IFC office tower, adding 22,000 square feet, while market maker Citadel Securities occupied a similarly sized 42nd floor, according to people familiar with the matter. This is in addition to a third floor that they already occupy in the building. Learn more>>
Swire will open its first hotel in Tokyo
Swire Hotels is collaborating with Tokyu Group and L Catterton Real Estate (LCRE) for a new luxury hotel in Shibuya, Tokyo under the brand The House Collective. The as-yet-unnamed house is set to open in 2027 and will be the first of its brand to open outside of China.
The new home, located on the site of Tokyu’s iconic flagship department store, will offer travelers a respite from city life. In addition, this project aims to meet the sustainability objectives of the Tokyu Group and LCRE through international certifications. Learn more>>
ESR-Logos REIT plans to sell lesser valued assets
The manager of ESR-Logos REIT said on Wednesday it had identified up to S$450 million of non-core assets – more than 8% of its S$5.5 billion portfolio – to be disposed of over the course of the next 12 to 24 months, with the aim of recalibrating its portfolio and unlocking value.
“These non-core assets are really small, non-scalable and have shorter land leases,” Adrian Chui, managing director of ESR-Logos manager Reit, said in a briefing accompanying the first-half earnings announcement. 2022. Learn more>>
Suntec REIT increases distributions by 16%
Suntec Real Estate Investment Trust’s Distribution Per Unit (DPU) increased 15.8% year-on-year to S$0.0481 for the 6-month period ended March 31, 2022 from S$0.04154 the last year. Gross revenue rose 22.1% to S$203.5 million in the first half of this year from S$166.8 million in the corresponding period of the previous year.
On Wednesday, the REIT’s director attributed the rise in revenue primarily to the contribution of The Minster Building – newly acquired in July 2021, to higher revenue from Suntec City, Suntec Singapore, 21 Harris Street and Olderfleet, 477 Collins Street. Learn more>>
Zhengzhou Govt moves to shore up weak developers
Zhengzhou, central China’s Henan Province, held a meeting with seven major real estate companies to help resolve their current difficulties, further ensure home delivery, normal production as well as legal rights for home buyers, said learned a Chinese media thepaper.cn from a firm implicated on Wednesday.
The company said that during the meeting, the city’s housing security and real estate administration gave preferential support to the seven real estate companies, including mergers and acquisitions, reorganization of the bankruptcy as well as the rental of secure housing. Learn more>>
Sin Capital investors concerned over Singapore takeover of Fullerton Health
With a major takeover deal for struggling Fullerton Healthcare Corp (Fullerton Health) by white knight RRJ Capital just days away from closing, some indirect investors in SIN Capital – a company that owns the majority of the healthcare company and is run by Singaporean David Sin – are feeling angst as they remain in the dark about the fate of their investments.
The Business Times understands that these investors had formed groups a few years ago to try to recover their investments from SIN Capital; they have collectively invested between S$10m and S$30m (maybe even more) in several SIN Capital British Virgin Islands (BVI) companies called Oceanfront Investments. Learn more>>
Keppel Pacific Oak US REIT Announces 5.4% Increase in Distributions
Keppel Pacific Oak US REIT on Wednesday reported a 5.4% increase in distribution revenue for the first half of 2022 to $31.5 million from $29.9 million a year earlier.
The distribution per unit (DPU) for the first half, however, fell 4.4% from $0.0316 to $0.0302, as the manager took all of its base fees in cash rather than units. If the manager had taken his base fee in units, the DPU would have been 0.7% higher. Learn more>>
Lian Beng announces 67% increase in profits as Singapore construction booms
Singapore construction heavyweight Lian Beng Group on Wednesday reported a 66.7% year-on-year increase in net profit for the fiscal year ended May 31, with activity across all business segments registering an improvement following the easing of Covid-19 restrictions.
Net profit for the 2022 financial year was S$43.5 million, compared to S$26.1 million in the prior year, according to the listed company’s condensed interim consolidated financial statements. . Learn more>>
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