Archive | Securities – overseas

WestCity back on market

Westfield shopping mall owner Scentre Group Ltd has put WestCity in Henderson back on the market, this time through Auckland agency Whillans Realty Ltd & Sydney agency McVay Real Estate Australia.

Whillans hasn’t opened a public campaign yet, but provided the images to support McVay’s Sydney campaign.

6 of Scentre’s 40 malls are in New Zealand, and WestCity is the last still wholly owned by the company after it sold 49% of 5 of them – Albany, Manukau, Newmarket, Riccarton & St Lukes – to Singapore’s sovereign wealth fund, GIC, at the end of 2014.

Scentre put WestCity & the other 3 New Zealand centres on the market last year and sold 3 in November – Glenfield to Ladstone Holdings Ltd, Queensgate in Lower Hutt & Chartwell in Hamilton to the Diversified fund managed by Stride Property Ltd – for a combined $549 million.

According to the Australian Financial Review yesterday, McVay is looking at an $A175 million price tag for WestCity, which sits on 5ha across the rail tracks from the former Waitakere City Council chambers. The mall has 3 anchor tenants, cinemas & 130 specialty stores in a net lettable area of 36,144m², and 1492 parking spaces.

Agency director Sam McVay said intensification of the surrounding area would underpin growth, but loosening of development limits under the new unitary plan meant the mall itself could be further developed to 18 levels of apartments.

Earlier stories:
24 February 2016: Lowy says first results vindicate Scentre restructure
27 November 2015: Scentre sells 3 malls to locals, one to go
25 February 2015: Scentre to sell the other 4 NZ malls
7 November 2014: GIC buys into 5 NZ Westfield malls

Attribution: McVay, Australian Financial Review.

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Lendlease becomes Barangaroo tenant and promotes multi-storey timber office construction

Lendlease Corp moved into its new headquarters in the 168-tall tower 3 of Barangaroo South’s International Towers on Friday, 11 years after being shortlisted in the design competition for the new Sydney financial district between the harbour bridge & Darling Harbour and 6½ years after winning the state government contract to develop stage 1.

2000 of the construction company’s employees are moving from 5 locations into 24,500m² on levels 8-19 of Tower 3’s 39 floors.

Work practices

Chief executive & managing director Steve McCann said the new headquarters showcased Lendlease’s capability – it’s owned by a Lendlease-managed fund, was built by the company, is in a precinct transformed by its urban regeneration business and is in a tenancy that demonstrated the group’s understanding of vibrant, productive workspaces for employees & customers.

Under the team-based working model, instead of belonging to an individual desk, employees belong to a team neighbourhood of 15-20 people, and each neighbourhood has access to a range of spaces. Spaces include a team table, the anchor point for each team; working walls for visual communication; enclosed spaces known as pods; breakaways, for less formal & ad hoc collaboration; and focus points, for tasks requiring concentration.

Levels 13 & 14 feature a 6m high breathing green wall containing over 5000 plants. Mr McCann said the active, modular green wall system was scientifically proven to accelerate the removal of air pollutants, such as carbon dioxide & volatile organic compounds. “In addition, it cools the surrounding air temperature, resulting in energy efficiency and health & wellbeing gains.”

Tower 3 is one of the largest highrise office buildings to have received a 6 star green star office design v3 rating from the Green Building Council of Australia.

As well as noting that staff will have access to over 1000 bike racks, 40% of their work stations are stand-up desks. Lendlease made some observations about work practices in its business, and said the research that informed its new workplace strategy & design revealed:

  • 41% of its people occupy a work point seat at any time
  • 36% are away, on site or working away from the office
  • 23% will be around & about, mainly in meetings or refreshing
  • 54% of their work is process-type, interruptible & routine
  • 53% of their work is done collaborating with others, and
  • 46% of their work requires deeper thinking, focus & to be ‘in the zone’.

Barangaroo South project progress

The whole of Barangaroo South adds about 270,000m² of premium office space to Sydney – similar in scale to the Marina Bay financial centre in Singapore & Canary Wharf in London. 3 towers named International Towers Sydney have been built, 2 now occupied:

Tower 1, PwC, HSBC, Marsh & McLennan, Servcorp
Tower 2, Westpac, Swiss Re, Gilbert + Tobin
Tower 3, KPMG, Lendlease

  • $A4 billion of funding secured for the whole precinct
  • Unitholders in the Towers 2 & 3 owner, Lend Lease International Towers Sydney Trust, are the Canadian Pension Plan Investment Board (50%), Australian Prime Property Fund Commercial (25%), Lend Lease Trust (15%) & APG (10%)
  • Tower 2 completed & opened 1 July 2015. Tower 3 opening mid-2016 and Tower 1 to open end 2016
  • Barangaroo Reserve (6 ha of parkland) opened by NSW Government in mid-2015.
  • 7000 office workers have moved into Tower 2 and 25 retailers are trading in the precinct; on completion there will be over 80 retail outlets
  • $A40 million public art fund ($A20 million for Barangaroo South) established, with first indigenous artwork unveiled late 2015
  • Transport for NSW’s construction of Wynyard Walk & Barangaroo Ferry hub is ongoing
  • Planning assessments in progress for concept plan amendment (modification 8) & Crown Hotel
  • Application to come for Renzo Piano-designed 1 Sydney Harbour towers.

Trust also buys 6-storey laminated timber office building

An impression of the 6-storey Barangaroo timber-structure office building.

An impression of the 6-storey Barangaroo timber-structure office building.

As its own new headquarters in Barangaroo South neared completion, Lendlease Corp announced on 24 June that the owner of 2 of the 3 office towers in the precinct, Lend Lease International Towers Sydney Trust, would also acquire an innovative 6-storey engineered timber office building.

The building, designed by Jonathan Evans & Alec Tzannes of Tzannes Associates, is aimed at setting a new benchmark in the use of sustainable building materials. It’s due for completion next year.

It will have 5 office floors above ground-floor retail, net lettable area of 6850m², and will be built at the Sussex St junction between the old central business district and the new Barangaroo.

The building will be constructed from cross-laminated timber (CLT) & glue-laminated timber (glulam). CLT has a lower carbon footprint than other building materials, the production process produces zero waste, and timbers are sourced from certified sustainably managed forests. Much of the building can be prefabricated and assembled on site.

Mr Tzannes said: “Looking from the bridges leading to Barangaroo, through the clean glass skin, the multi-storey timber structure forms the character of the architecture, that from inside creates an interior environment reminiscent of the spaces often found in Sydney’s historic timber or cast iron & brick buildings from the era when warehouse buildings were crucial to Australia’s maritime economy.”

International House Sydney is Lendlease’s third CLT building in Australia, joining 2 in Melbourne – Forté Apartments and the Library at The Dock. The library is Australia’s first 6-star green star public building and is made from engineered timber & reclaimed hardwood.

Links: Lendlease
Barangaroo
Barangaroo South
International House Sydney

Earlier stories:
21 December 2009: Lend Lease wins Barangaroo stage 1
25 March 2006: 11ha of park in Sydney’s East Darling redevelopment
7 August 2005: East Darling Harbour design competition goes to round 2

Attribution: Company releases.

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Venning rejoins now-ASX listed Investar 4 years after selling it

Campbell Venning of Masterton has rejoined the Real Estate Investar business as head of property 4 years after selling it to Australian interests.

He’s also sold another of his companies, The Property Factory Ltd, to the Gold Coast-based Real Estate Investar Group Ltd for $NZ550,000 in cash, and sold Positive Real Estate Ltd to local buyers in April.

Real Estate Investar Group provides online investment services to Australian & New Zealand property investors. When it listed, the company talked of having 190,000 members using its services at the listing date and targets to lift membership to 200,000 by last month and to 250,000 by the end of this year.

However, when it released its half-year financial report to 31 December 2015 in February, its performance & financial highlights were:

  • Members increased by 43.5% in a year to 152,439
  • Subscribers increased by 18% to 2699
  • Total revenue increased by 6%, from $A1.8 million to $A2 million
  • Referral revenue increased from $A67,431 to $A310,706 for the half-year, and
  • Pro forma ebitda improved from an $A537,079 loss to an $A318,538 loss.

Investar listed on the ASX in December after issuing 25 million shares in a public offer at A20c, 10.6 million shares to Fairfax Media Ltd & 6.6 million shares to convertible noteholders. Including 29.2 million shares classified as restricted securities for 24 months and not quoted, and some smaller parcels restricted until May & August this year, Investar has 84.5 million shares.

Trading opened at A19.5c on 10 December and the price has declined to a range of A5-8c/share since 1 April, bottomed at A4.9c/share on 25 May but rose half a cent to A6.3c on Friday. Market capitalisation has dropped from $A16.9 million to $A5.3 million.

Investar chief executive Clint Greaves, who previously worked for property developer Latitude Group Ltd in New Zealand, said on Friday the Property Factory had experience in investment property sales as well as access to exclusive listings in New Zealand that were relevant to the Investar membership base: “The acquisition accelerates Investar’s property sales business by providing the skills & capabilities to sell investment-grade properties, in many instances at wholesale prices.

“The property sales business is expected to generate significant revenue growth from sales commissions & associated services.”

Mr Venning’s new role will be to offer buyer’s agency, house & land and off-the-plan packages to the company’s property investor members.

“The opportunity to join the Real Estate Investar Group is a significant one – the company has a high level of engagement with property investors throughout Australasia, and I am excited to be able to help those 190,000+ members secure even better investment property opportunities,” he said.

Since 2000, Mr Venning has led a number of local & international real estate businesses, including a property education franchise, an investor-focused development business, an Australian technology start-up offering specialised investor tools, and Positive Real Estate Ltd, which specialises in residential investment stock.

Link: Real Estate Investar

Attribution: Company releases, Companies Register, ASX.

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World property W20Apr16 – Goodman continues Chinese growth

Goodman opens 11ha Shanghai facility 97% leased

Sydney-based Goodman Group opened its 11ha Goodman Qingpu Centre industrial & business facility in a state-level development zone in Shanghai, the Zhangjiang Qingpu Hi-Tech Park, last Wednesday amid plentiful indications of further business.

It’s the group’s first 3-storey distribution facility in China and, by completion, it had achieved 97% occupancy with leases to 3 companies:

  • 63,130m² to e-commerce company JD.com, an existing Goodman customer in Tianjin, Kunshan & Chengdu
  • 22,602m² to Shanghai Kuichun Industry, a nationwide distributor of imported food & beverage products, and
  • 21,155m² to Japanese distributor & supply chain company Kintetsu World Express.

Goodman Group, cornerstone unitholder & manager of the NZX-listed Goodman Property Trust, manages 432 properties internationally, worth $A33.4 billion, and 41 properties worth $A7.5 billion in greater China (including Hong Kong & Taiwan).

Chief executive Greg Goodman said the group had a Chinese development work book of 17 projects totalling 800,000m²: “An increasing number of our developments are preleased, indicating the maturity of the market as more companies incorporate their future property space needs into their overall business planning. Goodman has received encouraging demand with over 60% of these projects precommitted, with a high level of inquiry on the balance of the space, from both local & international customers.”

Goodman & the Canada Pension Plan Investment Board increased their equity allocation to the Goodman China Logistics Partnership by $US1.25 billion in December to take advantage of the current operating conditions and undersupply of prime industrial space in China.

Attribution: Goodman

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sat5 Mar16 – Melbourne Quarter approval, big development outside Brisbane

Lendlease’s Melbourne Quarter gets stage 1 approval
$A6 billion development campaign opens for aspiring Brisbane cbd competitor

Lendlease’s Melbourne Quarter gets stage 1 approval

Victorian planning minister Richard Wynne approved the first stage of Lendlease Group’s $A1.9 billion Melbourne Quarter development on Thursday.

Mr Wynne said the precinct on Batman Hill, between Collins & Flinders Sts and across the road from Southern Cross station, would improve the link between the Hoddle Grid (the rectangle marked out 180 years ago as Melbourne’s centre) & Docklands. The approval includes a 2000m² elevated park to be built over part of Wurundjeri Way & Collins St, called Melbourne Skypark & expected to be complete in 2018.

A 30,000m² 19-level commercial tower has also been approved for Aurora Lane & Collins St. It will have 177 car spaces & 210 bike spaces.

All up, the development will have 7 commercial & residential buildings, 110,000m² of office space, 4500m² retail net lettable area, and 3 towers on Flinders St will contain 1700 apartments.

The managing director of Lendlease’s urban regeneration business in Australia, Jonathan Emery, said: “With its apartment neighbourhood located next to a thriving commercial district, Melbourne Quarter offers the opportunity to live next to work, which is increasingly appealing for young professional owner-occupiers & investors with a keen eye on the leasing market.

“Lendlease’s urban regeneration footprint across the globe has revealed that an increasing number of city dwellers are aspiring to live close to work, and where they have access to all a city has to offer – restaurants, shopping, public transport, workplaces & education. Melbourne Quarter delivers on this need.”

On completion, it is expected to be home to 10,000 workers & 3000 residents.

Links: Melbourne Quarter
Victorian Government, 3 March 2016: Elevated park & office tower approved for Docklands

$A6 billion development campaign opens for aspiring Brisbane cbd competitor

The developer of a city on the outskirts of Brisbane, which it wants to become a competitor of Brisbane’s central business district, launched an expressions of interest campaign on Monday for a medium-density apartment project with an estimated $A6 billion end value.

Springfield Land Corp chair Maha Sinnathamby, who bought the original 2860ha of Greater Springfield 30km south-west of Brisbane with business partner Bob Sharpless for $A7.2 million in 1990, has grown it to a population of 32,000 and is aiming for 86,000 by 2030.

He’s seeking development & capital partners to deliver the 10,000-apartment City Centre North project, and ancillary commercial & retail space, next to the rail station & transit hub in the heart of Greater Springfield over the next 15 years. UBS AG’s Australian branch, as financial advisor, is running the expressions campaign.

Springfield is a suburb of Ipswich, a city of 180,000 people, but has been changing fast. It’s had $A12 billion invested in it, and about $A600 million/year is being spent on construction. The University of Southern Queensland has just completed an $A45 million expansion of its campus, the Orion Springfield Central shopping centre has undergone an $A154 million expansion, and new office buildings include GE’s $A72 million Queensland headquarters, opened last year.

Mr Sinnathamby, 76, studied engineering in Sydney in the 1960s, and emigrated to Australia from Malaysia in the 1970s after working at the World Bank & Asian Development Bank. He said this week: “The City Centre North apartment project represents an exciting next step in the evolution of Greater Springfield, as an alternative to the Brisbane cbd, providing greater housing & work choices to the diverse mix of Greater Springfield residents across age cohorts & market segments. It also represents an opportunity for another visionary group to join existing major stakeholders who have been active in the development and commercialisation of Greater Springfield.”

Link: Greater Springfield

Image: Lendlease’s Melbourne Quarter (left foreground).

Attribution: Lendlease, Victorian Government, Greater Springfield

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun28Feb16 – Multiple Goodman projects in UK, London City Airport sells, Melbourne port lease

Goodman teams up to develop Anglesea UK portfolio
Canadian & Kuwaiti consortium buys London City Airport
Deal agreed to sell Melbourne port lease

Goodman teams up to develop Anglesea UK portfolio

Goodman Group & Anglesea Logistics Partnerships have leased a spec warehouse in the Derby commercial park in the English Midlands to the group that owns the global lifestyle brand Ted Baker, No Ordinary Designer Label Ltd, as Goodman lifts its production of logistics space around the UK.

Asset manager & trader Anglesea Capital 0 LLP entered a joint venture with Goodman in November 2014, and has entered into a partnership funding joint venture with Lone Star Real Estate Fund III for this partnership, while Goodman has agreed to sell 4 more logistics assets containing 220,000m² to the joint venture.

The £25 million Ted Baker building, Angle 325, is a 30,000m² high-spec warehouse including 1400m² of office. It’s being fitted out and is due for completion at the beginning of May. It will be the retailer’s pan-European distribution centre, handling all operations for its retail, wholesale & e-commerce businesses in Europe and operating 24/7.

Goodman has spent £175 million developing the 66ha Derby commercial park at Raynesway, 3km from the centre of Derby, and has just opened a 59,000m² design/build national distribution facility there for Kuehne & Nagel and Heineken. It has 2 more spec warehouses lined up for construction at Andover in Hampshire & London Medway for the Anglesea partnership.

Sydney-based Goodman is also at full stretch in Europe. It signed up in January to develop a 130,000m² facility for online fashion, shoe & accessory retailer Zalando SE.

Link: Goodman UK

Canadian & Kuwaiti consortium buys London City Airport

3 Canadian pension fund managers and a Kuwaiti infrastructure investor agreed on Friday to buy London City Airport from Global Infrastructure Partners (75%) & Highstar Capital LP (25%). They haven’t disclosed financial details. The transaction is not subject to any regulatory approvals and is expected to close on 10 March.

The airport was opened near Canary Wharf in the Royal Docks in 1987 and Global Infrastructure Partners took control of it in 2006.

The new owners are Alberta Investment Management Corp (Aimco), on behalf of its clients OMERS (originally the Ontario Municipal Employees Retirement System), the Ontario Teachers’ Pension Plan & Wren House Infrastructure Management Ltd. Wren House is the infrastructure investing arm of the Kuwait Investment Authority.

Link: OTPP release

Deal agreed to sell Melbourne port lease

The Victorian State Government & opposition coalition agreed terms on Thursday enabling the sale of the lease on the port of Melbourne.

State Treasurer Tim Pallas said the 50-year lease should be sold early next year. While he’s been kept clear of the transaction, he’d been told 4 consortiums were lined up to buy the lease.

The Labor government agreed on Thursday to an opposition demand to amend the law enabling the lease, restricting compensation for the buyer. Compensation will be payable if the Government opens a second port within 15 years and the original port hasn’t reach its agreed capacity.

The port lease law is scheduled to be passed on Tuesday 8 March.

Attribution: Goodman, Anglesea, OTPP, GIP, Victorian Government

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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Lowy says first results vindicate Scentre restructure

Scentre Group Ltd chair Frank Lowy said yesterday the Westfield mall owner & operator’s strong results for 2015 validated the rationale for creating the reorganised Australia-NZ business.

Mr Lowy, who will retire at the annual meeting in May but will continue to chair the northern hemisphere operation, Westfield Corp, said: “Scentre Group’s pre-eminent portfolio & unique market position have provided a strong operating performance & excellent returns for securityholders since the group was established as a separate entity.”

Scentre made $A2.7 billion net profit (the 2014 figure, a profit of $A6.6 billion, wasn’t comparable because of restructuring). The 2014 profit attributable to continuing operations after tax, before charges & credits relating to the restructure, was $A1.8 billion. In 2015 it rose 52% to $A2.73 billion.

Funds from operations for the 12 months grew by 3.8% to $A1.199 billion (A22.58c/security), which Mr Lowy said would have been 5% if the group hadn’t undertaken a large selldown of assets. The group’s 12-month distribution of A20.9c/security was in line with the forecast.

Chief executive Peter Allen said: “We are very pleased with these results, which highlight the quality of our portfolio and the benefits of curating the right retail mix for our shoppers. The secure cashflows from our shopping centres, together with our accretive development programme, will provide growth in income through the economic cycles.”

In New Zealand, Scentre has $NZ2.4 billion of assets under management out of a total $A42 billion, and the capitalisation rate on the New Zealand assets is much higher – 6.98% versus 5.51% for the Australian malls.

6 of the group’s 40 malls are in New Zealand, only one of the 6 (WestCity at Henderson) now wholly owned after Scentre sold 49% of 5 of them – Albany, Manukau, Newmarket, Riccarton & St Lukes – to Singapore’s sovereign wealth fund, GIC, at the end of 2014. Scentre put its other 4 New Zealand centres on the market and sold 3 in November – Glenfield to Ladstone Holdings Ltd, Queensgate in Lower Hutt & Chartwell in Hamilton to a fund managed by Stride Property Ltd – for a combined $549 million.

The ownership change doesn’t mean Scentre has forgotten New Zealand – Albany, Newmarket & St Lukes are included in its $A3 billion development pipeline.

Mr Allen said the group’s $A1.5 billion of revaluations in 2015 were driven by growth in underlying income, the completion of developments and a firming of capitalisation rates across the portfolio.

At 31 December, Scentre had a strong balance sheet – total assets of $A31.8 billion, a gearing ratio of 33.3% & liquidity of $A3.7 billion.

Comparable specialty sales in the Australian portfolio grew 5.3% for the 12 months, averaging $A10,826/m² for the year. In New Zealand, those sales grew 6.6% to $NZ12,117/m².

Mr Allen said comparable property net operating income increased 2.6% for the 12 months, higher than the forecast range of 2-2.5%, reflecting lower vacancies & additional income streams.

The group is forecasting 3% growth in funds from operations this year.

Earlier stories:
27 November 2015: Scentre sells 3 malls to locals, one to go
25 February 2015: Scentre to sell the other 4 NZ malls
7 November 2014: GIC buys into 5 NZ Westfield malls

Attribution: Company release.

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Blackstone buys Lendlease’s NZ retirement villages

Blackstone Group LP said overnight that funds it manages had entered into a definitive agreement to acquire Lendlease Group’s portfolio of 5 retirement villages in New Zealand.

Blackstone didn’t disclose financial terms of the transaction, which it expected to close in several months following relevant regulatory approvals.

4 of the villages are in Auckland – the Knightsbridge, Mayfair (pictured) & Parklane on the North Shore and Peninsula Club at Whangaparaoa – and the other, Ocean Shores, is at Mt Maunganui.

ASX-listed Lendlease is an international property & infrastructure developer. It also owns 73 retirement villages around Australia.

Blackstone manages $US330 billion of assets. Its Tactical Opportunities business employs an opportunistic investment strategy across asset classes, industries & geographies: “The strategy seeks to capitalise on time-sensitive or non-traditional investment opportunities that are differentiated & difficult to source, analyse or execute.”

Attribution: Company release.

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World property W6Jan16 – Barangaroo, Melbourne Quarter, UK fast-track housing

Lend Lease gets Barangaroo investor, first Melbourne Quarter tenant
UK government launches fast-track housing programme

Lend Lease gets Barangaroo investor, first Melbourne Quarter tenant

Lend Lease Group announced major deals in the week before Christmas on its Barangaroo South development in Sydney and Melbourne Quarter in the heart of Melbourne.

In Sydney, it’s sold a 25% stake in the Barangaroo South Tower 1 to an unnamed Asian institutional investor, conditional on Foreign Investment Review Board approval. This will reduce Lend Lease’s equity commitment from $A525 million (37.5%) to $A175 million (12.5%).

The developer set up the Lend Lease 1 International Towers Sydney Trust last June to own the building, expected to be completed by July 2017 with PwC, HSBC, Marsh & McLennan and Servcorp as major tenants. Other investors include the Qatar Investment Authority and the Lend Lease-managed Australian Prime Property Fund Commercial.

Tower 2 has already opened and Tower 3 is due for completion by mid-2016.

In December, Lend Lease signed up global design & engineering firm Arup as the first tenant in its $A1.9 billion Melbourne Quarter precinct between Collins & Flinders Sts and across the road from Southern Cross station.

Arup will move to the 25,000m² 6-star green star One Melbourne Quarter, the first tower of 7 commercial & residential buildings planned for a precinct Lend Lease is calling Melbourne’s “new economic heart”.

Link: Lend Lease

UK government launches fast-track housing programme

British Prime Minister David Cameron said on Monday the government would directly commission small & up-&-coming companies to build thousands of affordable homes on public land in a fast-track programme.

He said the direct commissioning approach hadn’t been used on this scale since Margaret Thatcher and Michael Heseltine started the London Docklands regeneration in 1981.

This time, the government will set up a £1.2 billion fund to build 30,000 “starter homes” on underused brownfield land in the next 5 years.

Mr Cameron said developing on public land “will lead to quality homes built at a faster rate, with smaller building firms – currently unable to take on big projects – able to get building on government sites where planning permission is already in place.

“The first wave of up to 13,000 will start on 4 sites outside of London in 2016 – up to 40% of which will be affordable ‘starter’ homes. This approach will also be used in at the Old Oak Common site in north-west London.”

The Conservative government has committed to delivering 200,000 starter homes over the next 5 years. The brownfields starter home fund will fast-track construction of at least 30,000 new starter homes and up to 30,000 market homes on 500 new sites by 2020.

Link: Government will directly build affordable homes

Attribution: Lend Lease, UK Government.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun3Jan16 – Goodman boosts China fund, Evergrande & New World trade, A-Reit buys in Sydney again

Goodman’s Chinese fund gets equity boost
Evergrande buys from New World again
A-Reit adds to Australian portfolio

Goodman’s Chinese fund gets equity boost

ASX-listed Goodman Group & the Canada Pension Plan Investment Board said on 22 December they’d lift their equity allocation to the Goodman China Logistics Partnership by $US1.25 billion on an 80:20 basis, the Canadian fund committing $US1 billion and Goodman $US250 million, consistent with the partnership’s equity structure.

They established the partnership in 2009 to own & develop logistics assets in mainland China, focusing on locations where land constraints & demand were strongest. Their initial equity was $US300 million.

Separately, the partnership will acquire 9 projects (including land) from Goodman Group, with an end buildout value over $US650 million.

Evergrande buys from New World again

Heavily indebted Chinese developer Evergrande Real Estate said on Tuesday it was acquiring 7 mainland projects from Hong Kong’s New World Group for RMB20.4 billion ($US3.15 billion). In a separate transaction, Evergrande sold $US1.5 billion in perpetual securities to New World & affiliates.

A month ago, Evergrande acquired 4 mainland residential projects from New World, taking total acquisitions from the Hong Kong company to $US5.3 billion.

In a story this week linking 3 of China & Hong Kong’s biggest property names, Michael Cole of Mingtiandi wrote that New World chair Cheng Yu-tung took a $US506 million stake in Evergrande in 2008, a year before it listed in Hong Kong.

Link: Evergrande buys $US3.2 billion in projects from Hong Kong’s New World Group

A-Reit adds to Australian portfolio

A-Reit – the Singapore-listed Ascendas Real Estate Investment Trust – said on 24 December it would acquire a Sydney logistics facility from Deka Australia One GmbH for $A76.6 million. The facility at 6-20 Clunies Ross St, Pemulwuy, is in the Greystanes industrial precinct 30km west of the Sydney cbd and leased to Australia Post and the NSW Police on triple net leases, with a weighted average expiry of 6.1 years. Australia Post has subleased its space to retailer Target Australia Pty Ltd.

Ascendas management company chief executive Tan Ser Ping said the facility would generate a net property income yield of 7.1% before transaction costs in the first year, 6.6% post. It comprises a 36,220m² high clearance warehouse and a 2359m² 2-storey office & laboratory.

A-Reit entered the Australian market in September when it bought an $A1 billion portfolio of 26 logistics properties from Singapore sovereign fund GIC & Frasers Property Australia Pty Ltd.

Earlier story: World property Sun20Sep15 – A-reit enters Australia, Greenwich regeneration

Attribution: Goodman, Mingtiandi, A-Reit

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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