In today’s roundup of regional headlines, home sales in Singapore have rebounded to the second highest level this year, as Sweden’s EQT completes the acquisition of Baring Private Equity Asia, based in Hong Kong. Meanwhile, Chinese junk bonds hit an all-time high as the mainland housing debt crisis shows little sign of recovery.
Singapore home sales double ahead of latest housing restrictions
Home sales in Singapore rebounded in September to the second highest this year, thwarting economic headwinds that are rocking property markets around the world.
Purchases of new private apartments jumped to 987 units last month, figures from the Urban Redevelopment Authority showed on Monday. That was more than double the two-year low recorded in August, when just 437 units were sold due to a lack of new home launches. Learn more>>
EQT Completes Acquisition of Baring Private Equity Asia
EQT AB has completed the acquisition of Hong Kong-based Baring Private Equity Asia as the Swedish investment firm seeks to capture promising prospects in the region.
The deal combines the two companies’ Asian private equity teams to create BPEA EQT, while Baring’s real estate business will be integrated with that of EQT, according to a statement confirming a Bloomberg News report. The cash and stock deal was worth 6.8 billion euros ($6.7 billion) when it was announced in March, making it the largest takeover by a private equity firm. by another in the sector. Learn more>>
Chinese junk bonds hit record high as real estate crisis spreads
China’s junk-dollar bonds fell to a record low as a housing debt crisis triggered by a crackdown on excessive borrowing and a slump in home sales show few signs of reversing.
Average ticket prices, led by real estate companies, fell 1 to 2 cents on the dollar on Tuesday, credit traders said. That drags them below a record low of 55.7 cents marked Monday. Learn more>>
Fosun nears deal to sell stake in Nanjing Iron & Steel for $2.1 billion
Fosun International, owner of resort chain Club Med, is reportedly selling its stake in Nanjing Iron & Steel for 15 billion yuan ($2.1 billion), as the heavily indebted group seeks to raise funds to reduce its borrowings .
Fosun is selling its Nanjing Iron & Steel assets to Jiangsu Shagang Group, according to a source familiar with the matter. Both parties are in the process of finalizing the deal, the person added. Learn more>>
Sembcorp wins a license to develop an industrial park in Vietnam
Sembcorp has, through its wholly-owned subsidiary Sembcorp Development, secured an investment license to develop a new industrial park in Can Tho city, it said in a stock market filing on Monday (October 17).
Can Tho city is located in the Mekong Delta region of Vietnam. Its central government recently announced a new master plan outlining Can Tho as a center for trade and services in the region by 2023, as well as infrastructure investment. Learn more>>
Sinarmas Land and K2 Data Centers to develop data centers in Indonesia
K2 DATA Centres, a subsidiary of Kuok Group, has entered into a joint venture with Sinarmas Land to develop and operate hyperscale data centers in Indonesia.
The hyperscale data centers the two companies are developing are expected to exceed 5,000 servers and 10,000 square feet (929 square meters). Learn more>>
Prime retail rents on the rise in Singapore
Retail rents recorded the strongest quarter-on-quarter growth in Singapore’s main commercial area, gaining 2.9% to average S$38.40 ($27.03) per foot square per month for ground floor space in Orchard/Scotts Road in the third quarter of this year, data from Edmund Cravate on Monday (October 17) showed.
Rents in other submarkets also rose as buyer traffic returned, albeit more slowly. Average monthly retail rents in other areas of the city rose 1.1% to S$19 per square foot, while rents in outlying/suburban areas rose 2.2% to 32.60 Singapore dollars per square foot, according to data from Edmund Tie. Learn more>>
Growth in APAC real estate investment slows in third quarter
Real estate investment volumes for the third quarter of 2022 declined compared to a year ago under the influence of various macroeconomic factors which prompted investors to take a more cautious approach to capital deployment.
According to a report by real estate services firm JLL released on Tuesday (October 18th), investment volumes fell 29% year-on-year to $28 billion in the third quarter. Learn more>>
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