Viale Europa 95 was built for Italy’s Military Academy of the Tax Police (Image: Cromwell European REIT)
In today’s roundup of regional news headlines, Cromwell European REIT announces the planned divestment of a second Italian asset in as many weeks, and another SGX-listed trust, OUE Commercial REIT, snags a third sustainability-linked loan. Also making the list, economists are downgrading the predictions for China’s economy and ARA’s European division is set to acquire three UK sheds.
Cromwell European REIT to Divest Bari Asset in Italy
Singapore-listed Cromwell European REIT is selling its asset located at Viale Europa 95 in Bari, Italy, the trust’s manager said Thursday.
The manager has declined to provide the selling price. The news comes a week after the REIT confirmed that it was in advanced negotiations to sell Piazza Affari 2, its office asset in Milan. Read more>>
ARA Europe Acquires Portfolio of Three UK Logistics Assets for $32M
Real estate investment manager ARA Europe, part of ESR Group, has completed the acquisition of three urban logistics and distribution properties on behalf of its flagship discretionary value-add Active Fund series.
The properties comprise 190,000 square feet (17,652 square metres) of lettable area in Aylesford, Birmingham and Glasgow. The £25 million ($32 million) investment was made on behalf of ARA Europe Active Real Estate Fund V. Read more>>
OUE C-REIT Unit Obtains S$430M Sustainability-Linked Loan
OUB Centre, an indirect subsidiary of Singapore-listed OUE Commercial REIT, has obtained an unsecured sustainability-linked loan of S$430 million ($321.7 million), the trust’s manager announced Wednesday in a bourse filing.
This is OUE C-REIT’s third SLL. It was obtained from new and existing lenders: OCBC Bank, Maybank Singapore, ICBC, Bank of East Asia and Qatar National Bank. The proceeds will be used for refinancing existing borrowings and general corporate purposes. Read more>>
Economists Cut China GDP Forecasts After Disappointing May Data
China’s weaker-than-expected data for May has spurred economists at several key banks to lower their growth forecasts for the year, with expectations picking up for more policy support in the coming weeks.
JPMorgan Chase, UBS and Standard Chartered all trimmed their 2023 GDP growth forecasts to 5.5 percent or lower this week after official figures for retail sales growth and fixed asset investment slowed from April and undershot expectations. Read more>>
Cheap Apartments in Some Chinese Cities Draw Buyers, and Caution
Beijing resident Hu Yongwei bought more than a dozen apartments in the small central Chinese city of Hebi for about $31,000 in all, betting they would be financially more rewarding than other investments.
Hu, who mostly acquired two- or three-bedroom apartments built about three decades ago, spent RMB 18,000 ($2,528) this month in purchasing his 15th property in Hebi, where prices have plunged over the last two years. Read more>>
Investors Unclear on Mega Tech Park Project in Northern Metropolis: Colliers
Property consultancy Colliers says investors are still largely in the dark about the potential opportunities on offer at the ambitious 627 hectare (1,549 acre) San Tin Technopole project in the northern New Territories.
Proposed as the flagship project for the massive Northern Metropolis development, the site has been touted by the Hong Kong government as an innovation and technology hub that will drive growth in the city and foster closer integration with the Greater Bay Area. Read more>>
South Korea’s House-Price Decline Softest in 10 Months
The decline in South Korea house prices softened in May to the weakest pace in 10 months, data showed Thursday, amid rising hopes for a recovery in the market.
The nationwide house transaction price index fell 0.22 percent in May, more than halving from April’s 0.47 percent loss, according to Korea Real Estate Board data. Read more>>
Resilient APAC Office Market Seen Improving Further
The market sentiment for office investments in Asia Pacific is expected to improve amid expectations of interest rates peaking in the second half of 2023, Colliers said Thursday.
Peaking interest rates would provide investors with confidence and clarity over asset values and borrowing costs in the region, the consultancy said in its Global Insights and Outlook report. Read more>>
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