(Bloomberg) — Country Garden Holdings Co.’s Chair Yang Huiyan says she is “very confident” the company can repair its balance sheet and pledged the founding family’s support for the ailing Chinese property giant.

The path to fix the balance sheet is “very clear and can be achieved,” Yang said at a monthly management meeting held Friday, according to a statement on the developer’s WeChat account. Country Garden “will strive to become a model for the quick recovery” of distressed companies, she added.

Country Garden’s debt struggles have epitomized the property crisis engulfing the country’s economy. The remarks come as China introduces new measures to put a floor under a property market that’s been roiled since the introduction of measures three years ago aimed at cutting the industry’s reliance on debt.

The developer, a poster child of China’s property crisis, defaulted in October for the first time on dollar bonds, and will face a test next week to avoid the same fate on a local note — an outcome that a regulator signaled it’s trying to avoid.

Yang said that Country Garden can maintain “positive assets” for the next ten years “as long as our inventory assets are sold normally.”

Separately, the company said in the statement that it will have three tasks over the next 12 months: ensuring delivery, operation, and credit and it expects to deliver more than 400,000 units in 2024.

Source : BNNBloomberg

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UAE-based real estate developer, investor and manager – Aldar Properties – has acquired London-based developer, London Square, signalling its first international acquisition beyond the MENA region. The acquisition represents a value of £230m.

London Square operates several segments in its business including London Square Living, the company’s Build to Rent division. Its notable development projects include the Nine Elms development, strategically located close to the iconic Battersea Power Station. The scheme will deliver over 750 luxury homes, affordable housing, Build to Rent apartments, and 21,500 sq ft of commercial and retail space at the heart of central London’s largest regeneration area.

“This is an outstanding outcome for London Square. Aldar is an exemplary company with an unrivalled reputation and their strength and breadth of knowledge and experience will enable London Square to flourish and extend its presence across Greater London and the Southeast.

“Since establishing London Square in 2010, the company has enjoyed significant organic growth, with the support of Ares Management funds for the past nine years. We would like to thank Ares Management for their contribution to the success of London Square.

“Becoming part of Aldar is the beginning of an exciting new chapter for the future of London Square. We look forward to playing a leading role in tackling the housing shortage by providing more much-needed homes in the capital and surrounding areas where there is a continuing lack of supply.”

Adam Lawrence, Founder and Chief Executive, London Square

This acquisition aligns with Aldar’s strategic vision of expanding into key and mature international markets. The move is aimed at accelerating growth, diversifying revenue streams, unlocking synergies, and driving cross-selling opportunities.

By acquiring the London based developer, Aldar will gain a meaningful foothold in the diverse and dynamic London property market, which appeals to both local and international investors.

With a shared vision and approach to creating world-class developments anchored in high quality design, sustainability and customer service excellence, the acquisition represents a new phase of growth for both companies. It will also provide two-way benefits, delivering a positive impact for communities and bringing new opportunities to the customers each company serves.

“Our recently announced international expansion strategy centres on exploring opportunities to acquire or partner with established operating platforms in our target markets. The acquisition of London Square represents our first market entry outside of the region, and is a testament to the company’s management team, governance framework, and business model which has consistently delivered strong performance.

“The transaction, which is synergistic in nature, gives us the ability to leverage our mutual strengths, shared values, and common approach to homebuilding to scale London Square while bringing the best of Aldar to bear in the UK’s property market, as we continue to build our foothold outside of the region.”

Talal Al Dhiyebi, Group Chief Executive Officer, Aldar Properties

London Square has successfully created a development pipeline worth over £2bn. The developer has currently completed over 3,500 homes and has a pipeline of 930 homes under construction, valued at £425m.

Source : BTRNews

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(Melbourne) – Hines, a global real estate investment, development, and property manager, today announced the acquisition of two logistics warehouses from Dexus Industria REIT, a listed Australian real estate investment trust. Hines has also simultaneously entered into a 15-year lease agreement for part of the property with PWR Performance Products Pty Ltd (“PWR”), a Gold Coast-based provider of high-tech cooling solutions, to commence in July 2025.

Located at 16-28 Quarry Road in Stapylton, Queensland, the 40,983 square meter asset comprises of two modern, highly functional logistics buildings and is currently 100 per cent leased to three major tenants. The clear span warehouses offer quick access to the M1 motorway, providing great connectivity between Brisbane, Gold Coast, and regional Queensland. This location appeals to a broad cross-section of high-caliber tenants such as PWR.

“We are thrilled about securing this site for our headquarters and working with Hines to build a facility that will accelerate our growth into the aerospace and renewable energy sectors right here on the Gold Coast,” said Kees Weel, Managing Director of PWR. “The building will give us room to streamline the factory layout and expand our capabilities to meet customer demands.”

PWR plans to invest AU$21.9 million in facility upgrades and new equipment over three years to increase its production capacity by 114 per cent and add up to 488 new jobs over the next 10 years. PWR has also been successful in receiving a government grant from the ‘Invested in Queensland’ program to support its expansion.

“The strategic location, the strong tenant base, and the potential for growth make these warehouses an attractive investment,” said David Warneford, country head of Australia and New Zealand at Hines. “We are pleased to partner with PWR to deliver their new Queensland base, as we continue to bring strategic benefits to our portfolio, partners, and tenants in Australia.”

Since 2020, Hines has secured 14 industrial assets in Asia Pacific totaling around 550,000 square metres (six million square feet) across five markets in Australia, China, Japan, South Korea, and Singapore. The deal marks Hines’ eighth industrial and logistics acquisition in Australia and aims to illustrate the firm’s commitment to creating value for both tenants and investors.

In line with Hines’ commitment to sustainability and meeting the ESG needs of today’s tenants, Hines plans to add solar power generation and upgrade various building systems to elevate the asset’s ESG standards.

About Hines

Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 30 countries. We manage nearly $94.6B¹ in high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 790 properties totaling over 269 million square feet globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.

¹Includes both the global Hines organization as well as RIA AUM as of June 30, 2023.

Source : Hines

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And company execs don’t expect a significant recovery in the commercial property sector until the second half of 2024.

The Dallas-based global property firm reported $190.6 million in net income in the most recent quarter, compared with $466.6 million in profits in the third quarter of 2022. The company’s net quarterly revenue was down 4.2% year-over-year to $4.4 billion.

“Commercial real estate capital markets remained under significant pressure in the third quarter,” CBRE CEO Robert Sulentic said in a statement. “As a result, we experienced a sustained slowdown in property sales and debt financing activity, which drove the decline in core earnings-per-share.

“This decline was exacerbated by delays in harvesting development assets which we will sell when market conditions improve.”

Increases in interest rates this year have caused commercial building costs to balloon and have sharply slowed investment property purchases across the country. Worries about the economy and changes in the workplace have slowed leasing.

“The unexpected jump in rates has pushed back the capital markets recovery,” Sulentic said.

CBRE’s revenue from property sales dropped by about 39% year-over-year in the quarter ending with September. And the company’s real estate development operations lost $22.1 million in the quarter “reflecting a delay in asset sales amid the uncertain capital markets environment.”

CBRE owns Dallas-based developer Trammell Crow Co.

The commercial property firm’s workplace solutions operations grew revenue by almost 17% in the quarter. CBRE saw revenue gains in its facilities and project management businesses. Loan servicing revenue rose by 4% from a year earlier.

“Property prices are gradually declining and we believe this process won’t be complete and transaction activity won’t rebound materially until investors are confident that interest rates have peaked and credit becomes readily available,” Sulentic said in a conference call with investors and securities analysts. “We now believe this rebound is unlikely to occur until the second half of next year at the earliest.

“It’s going to take longer for interest rates to come down,” he said. “It’s going to take longer for debt in particular to become available for real estate transactions.”

Because of continued industry declines, CBRE said it plans to further trim expenses. The company in the last year has reduced its workforce and delayed some projects — including a new Uptown office tower that was expected to house the company’s headquarters.

“We will be reducing costs across our lines of business,” said CBRE chief financial officer Emma Giamartino. “We have already targeted $150 million of reductions.”

At the same time, the company continues to evaluate merger and acquisition opportunities, CBRE top officers said.

“We are looking at a number of deals,” Giamartino said. “But pricing has become more of a challenge than it was a year ago or even six months ago.”

CBRE isn’t expecting a rebound in its property sales and leasing business until sometime in 2024.

“Transactions are not going to return until the back half of next year where we thought they were going to return late this year early next year,” Sulentic said.

That’s caused CBRE to change its earnings forecast for all of 2023. The company anticipates earnings per share this year to drop by more than 30%.

“About a third of that is related to capital markets and about a third is related to development,” Giamartino said.

Source : TheDallasMorningNews

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In early April, the house price indices of PropTrack and CoreLogic both showed signs of growth, with small upticks in prices recorded across the nation. The latest data from both companies again showed rises in their respective house price indices.

The theme of recovery was also identified by Hotspotting, recently releasing its latest Top 10 National Best Buys report for the next six months.

Hotspotting Founder and Managing Director, Terry Ryder, said a number of factors are influencing markets around the nation with both big cities and smaller regional locations recording positive market metrics.

“Improving data on prices in the biggest cities recently has added to the ongoing strong performance in smaller cities and regional areas, the worsening shortage of rental properties, the significant increases in rents and more optimistic consumer sentiment,” Ryder said.

“It adds up to a scenario where prices will likely rise in most of the nation’s key markets in 2023 – which was our forecast before the year started.

“Even the big bank economists have turned more positive in their outlooks, although they continue to under-estimate the underlying strength in real estate markets in our assessment.”

There are some positive signs ahead. Although the April rate pause was followed by a 25 basis point rise this month, some banks and lenders have started to cut their own borrowing rates. The fundamentals for parts of Australia’s real estate market remain especially strong and the rate of construction is starting to pick up, albeit not at the necessary levels to meet demand.

Hotspotting’s report noted several factors are influencing the real estate market at present, with many of those mentions reflected in other expert observations.

Among the key influencers of the real estate market:

• A continued severe shortage of supply, relative to demand, for both the buyers and renters,
• Price growth off the back of the shortages,
• Additional demand from the return of ex-pats, overseas migrants, and international students,
• Increased migrant intake by the Federal Government,
• Continued low levels of unemployment, and
• The expectation that interest rates will stay put this year.

While Perth remains a stand-out performer, according to Ryder, regional Queensland is also whetting buyers’ appetites as the market offers “… the best combination of affordability, good yields, and growth prospects.”

One market that is ‘back in business’ is Sydney’s inner city apartment market, according to Hotspotting General Manager Tim Graham.

“People are buying apartments in inner-city areas where units are less than half the price of houses such as in Inner West of Sydney and Brisbane’s inner south Olympic Precinct,” Graham said.

“Our analysis also shows that Sydney is heading into recovery and the Melbourne and Victoria markets are expected to strengthen as the year unfolds.”

Top 10 National Best Buys

According to Hotspotting’s latest report, the top 10 buys (local government areas) for May to September 2023 are:

1. 1. Stirling, WA
   2. Toowoomba, QLD
   3. Inner West, NSW
   4. Townsville, QLD
   5. Hume, VIC
   6. Salisbury, SA
   7. Ballarat, VIC
   8. Olympic Precinct, QLD
   9. Canning, WA
   10. Greater Geraldton, WA

Stirling, WA

The City of Stirling was previously picked as Hotspotting’s National Growth Star, picked for its superb amenity.

Ryder noted in the latest report that the local government area (LGA) shows promise due to significant activity within Stirling.

“The LGA is rising thanks to several large infrastructure projects, some of which have been completed recently,” he said.

“The Stirling City Centre project, touted as being one of Australia’s biggest urban regeneration projects, finished in January 2021 – while $1.6 billion is being spent on upgrading two of the LGA’s major shopping centres.”

Over a billion in projects are either recently completed or under way, the report citing the Scarbrough Beach redevelopment, Karrinyup Shopping Centre expansion, and transport projects.

Toowoomba, QLD

The inland city is some one and a half hours west of Brisbane, and has a $12 billion economy, according to the report.

A strong and diverse economy are some of the factors playing in favour of Toowoomba, with Graham noting several major upcoming projects, including the Toowoomba Second Range Crossing, are set to ‘cement’ the city’s reputation as an intermodal transport hub.

“This will be further enhanced by the $15 billion Inland Rail Link, for which Toowoomba is a major pivot point,” Graham said.

“Other growth catalysts include the city’s proximity to Surat Basin’s resources as well as the region’s more traditional agricultural, tourism and manufacturing bases.”

Inner West, NSW

Inner western Sydney is set to benefit from major train station upgrades and other multi-billion dollar projects such as the Rozelle Interchange.

Ryder hailed the Inner West as one of Sydney’s ‘most resilient sectors’, noting in particular the relative affordability of apartments.

According to SQM Research data, units are less than half the price of a house, coming it at around $750,000.

Townsville, QLD

Another Queensland city is touted for its economy, which includes military, government admin, tourism, education, export, manufacturing, and resources, according to the report.

Graham noted the city is set to also see billions of dollars in investment, with unemployment also trending sharply downwards.

Hume, VIC

The City of Hume is some 40 minutes out of the Melbourne CBD, and according to Ryder, is home to the fourth-largest population in the State.

“Hume continues to remain an affordable option in 2023 and can expect further benefits from government spending and improved infrastructure in coming years,” said Ryder.

Salisbury, SA

The City of Salisbury may be turning into an aerospace hub, with the $1.9 billion Edinburgh Parks Industrial Precinct currently under construction adjacent to the Edinburgh Defence Precinct.

“The emerging 300-hectare precinct is attracting industries including aerospace and space technologies, cyber-security and defence, food and beverage manufacturing, logistics support and automotive industries.”

Ballarat, VIC

The locale is yet another pick that has shown significant resilience in the face of cooling markets. Ryder noted the locale saw median price growth above 20% over the past 12 months.

Olympic Precinct, QLD

With the major sporting event to take off in 2032, it almost comes as no surprise that there are billions of dollars being injected into the local economy.

Graham said that while the Inner South Precinct of Brisbane has performed sluggishly in the past, it is well positioned for growth.

Canning, WA

The LGA enjoys excellent access to several large-scale employment nodes in Perth, said Ryder.

Suburbs within the City of Canning are also affordable, with Ryder noting the LGA is a “community for young families.”

Greater Geraldton, WA

The key regional centre has seen significant growth in recent years, according to Graham, with growth running parallel to Perth:

“Geraldton is a key regional centre that has grown swiftly in recent years, in line with growth in Perth and the State overall,” said Graham.

“As the Perth property market rebounded strongly in 2020 and delivered notable growth in 2021 and 2022, so too did the municipality of Geraldton, four hours north of the capital city.”

Source: The Property Tribune

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Spread across 9,300 square metres (100,104 square feet) and 290 units in Tokyo and Kyoto, the assets will be managed under the sustainability-focused Cavana brand and target urban dwellers in key Japanese cities, Hines said in a release.

The acquisition is the second multi-family transaction for the Hines Asia Property Partners core-plus fund, following the purchase of 11 multi-family assets in Japan late last year. Chiang Ling Ng, chief investment officer for Asia at Hines, described the country’s multi-family segment as a resilient non-discretionary sector and a stabiliser for a blended core-plus strategy.

“It is anticipated to be defensive in an inflationary cycle and with positive leveraged yields, these new acquisitions should continue to add to our growing footprint in the region, allowing us to deliver a high-quality portfolio to our investors,” Ng said.

Living Aggregation Strategy

No details were disclosed about the seller or the deal value, but Houston-based Hines said the latest acquisitions are part of HAPP’s living aggregation strategy for Japan, which aims to scale up to $1 billion in asset value in three to five years.

The 11 properties acquired last year span over 14,000 square metres across more than 400 units in Tokyo, Nagoya and Fukuoka. Under the Cavana banner, the projects intend to focus on sustainability initiatives that encourage tenants to conserve water, recycle materials and reduce their carbon footprint.

“The Japan multi-family market remains an attractive investment strategy due to its resiliency of income, stable yield, large number of available investable assets and attractive risk-adjusted returns,” said Jon Tanaka, country head of Japan at Hines.

Family-run Hines was founded in 1957 and now operates in 30 countries, managing nearly $96 billion in assets globally.

First-Timers Rush In

The month of April saw more players crowd into Japan’s multi-family arena, with SilkRoad Property Partners announcing the acquisition of five multi-family assets in Greater Tokyo as part of $150 million in deals that also bagged a central Tokyo office building. The transactions marked the Singapore-based firm’s first investments in Japan.

Also last month, Singapore’s CapitaLand Investment agreed to buy six rental housing assets in Osaka for $105.9 million, representing the first multi-family acquisitions for the firm’s flagship regional core-plus fund.

One of the busiest global investors in Japan real estate, US-based KKR, struck a deal in April to acquire an under-construction apartment building in the capital city’s Taito ward for $33 million on behalf of the buyout giant’s Tokyo-listed REIT.

Source: MINGTIANDI

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The right issue targets registered shareholders on December 27, 2022. Each owner of 5,000 old shares will receive 3,439 pre-emptive rights (HMETD). Each HMETD can be used to purchase one new share at the exercise price.

According to a statement on November 8, 2022, First Pacific Capital Group Limited, as the company’s shareholder with 78.24 percent ownership, will exercise part of its rights worth IDR 70 billion or 140 million shares with payment for implementation in cash.

Meanwhile, PT Manning Development, a shareholder with 4.40 percent ownership, will take part in his rights, namely 52.86 million shares valued at IDR 26.43 billion. As a standby buyer, Manning Development will take part of the Preemptive Rights not taken by other shareholders for a maximum of IDR 503.67 billion or 1 billion shares.

So, the total number of new shares that will be acquired by Manning Development, both as a result of exercising its rights and as a standby buyer, is a maximum of 1,060,211,000 series B shares valued at IDR 530 billion. This was done by converting part of the company’s debt to Manning Development. The company’s total debt as of June 30 2022 was IDR 577.58 billion.

If the shareholders do not exercise their rights, they will be subject to a maximum dilution of ownership of 40.75 percent after the rights issue. The proceeds from the rights issue for the settlement of the company’s debt to PT Manning Development amounted to IDR 577.58 billion. Namely non-cash deposits by converting the company’s debt to PT Manning Development as of June 30 2022 in the amount of IDR 577.58 billion. If there are remaining cash funds for the company’s working capital.

The schedule for Indonesia Prima Property’s rights issue is as follows. Effective date December 5, 2022. Regular market cum right and negotiation on December 23, 2022. Cash market cum right on December 26, 2022. Regular market ex right and negotiation on December 26, 2022. Cash market ex right on December 27, 2022. Shareholders are entitled to rights issue on December 27, 2022.

Distribution date on 28 December 2022. Listing on the IDX on 29 December 2022. Trading period from 29 December 2022 to 5 January 2023. The implementation period starts from registration, ordering and payment on 29 December 2022 to 5 January 2023. Submission of new shares resulting from the rights issue on 3-11 January 2023. The last date for payment for the purchase of additional shares on 12 January 2023.

The allotment date of the additional shares purchase order on January 13, 2023. The distribution of additional shares on January 16, 2023. Full payment by the standby buyer on January 16, 2023. Refund of the additional shares purchase order was not fulfilled on January 16, 2023. (*)

Source : Emiten News

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