Real estate news you need to know to start your day

Property funds


* SoftBank Group Corp. is believed to be in negotiations to invest US$2 billion in WeWork Cos. Inc. in 2019. The potential investment is lower than the US$16 billion earlier reported to be earmarked by the Japanese multinational conglomerate for the American co-working space provider.

* Singaporean property developer CapitaLand Ltd. established a 50/50 joint venture with an unnamed partner for the 2.75 billion-yuan acquisition of approximately 70% of the Pufa Tower office building at 588 South Pudong Rd. in Shanghai’s Lujiazui central business district. Chinese conglomerate HNA Group Co. Ltd. is the seller of the asset, according to the South China Morning Post.

Hong Kong and China

* China Overseas Land & Investment Ltd. accumulated about HK$301.24 billion of contracted property sales in 2018, higher than the HK$232.07 billion recorded in the prior-year period. During the year, the property company paid 91.35 billion yuan for the purchase of 63 land parcels in both the mainland and the special administrative region.

* China Evergrande Group is targeting contracted sales of 600.00 billion in 2019. The real estate developer disclosed the goal after its contracted sales in full-year 2018 increased on an annual basis to roughly 551.34 billion yuan from 500.96 billion yuan.

* Powerlong Real Estate Holdings Ltd. is planning to issue US$200.0 million of 9.125% senior notes due Jan. 14, 2021, to raise an estimated US$196.0 million for debt repayment initiatives.

* Hong Kong-headquartered real estate investment firm Gaw Capital Partners bought four office buildings in Shanghai’s Minhang district under an approximately 2.8 billion-yuan deal with China Resources Capital Management Ltd. Cushman & Wakefield served as the sole agent for the seller in the reported transaction.


* A subsidiary of Hong Kong-based CNQC International Holdings Ltd. secured a HK$500 million contract from an Oxley Holdings Ltd. unit for the construction of a six-block residential development at Rifle Range Road in the Bukit Timah Planning Area of the city-state. Delivery of the project is expected in November 2021.

* CBRE Group Inc. commenced a public tender for the HighPoint prime freehold estate at 30 Mount Elizabeth Rd. after obtaining a more than 80% approval from the property’s owners. The asset, which was put on the block with a S$550 million reserve price, has a gross floor area of about 211,976 square feet and comprises 57 apartments and two penthouses.

* The Realty Centre office building at 15 Enggor St. hit the collective sales market with a S$165 million guide price. The property, which occupies a 1,021.9-square-meter commercial land, can be redeveloped into a project with a gross floor area of roughly 321,797 square feet.


* Asia-Pacific logistics real estate platform ESR established a joint venture with AXA Investment Managers – Real Assets and a sovereign wealth fund for the acquisition of logistics properties in Japan. The newly-formed platform, in its maiden purchase, will acquire six newly built prime properties in the country for roughly US$1 billion.

* Comforia Residential REIT Inc. struck lease-and-acquisition deals totaling ¥18.65 billion with Tokyu Land Corp. and Godo Kaisha Residence 5 for eight apartment buildings and a boarding house in Tokyo. The agreements for the residential properties are scheduled to be completed Feb. 1, March 20 and March 27.

* Mitsubishi Estate Co. Ltd. launched a new brand of office buildings, targeting demand for small office spaces. Construction has started for the first Circles office building in Minato-ku of central Tokyo. The company plans to deliver three or five Circles buildings every year.

* Pressance Corp., an Osaka-based builder of urban apartment complexes, will build a 15-story, 126-unit apartment complex in the city of Akita for completion in 2021, Tokyo’s The Nikkei reported.


* A research note from Macquarie Wealth Management is warning of a further decrease in leasing activities for listed retail real estate investment trusts as international retailers choose smaller floor spaces over larger-scale shopping spaces, The Australian Financial Review reported.