Starbucks has found a buyer for its China business (Getty Images)
Cash for coffee leads today’s look at real estate news from around Asia as Starbuck says it has struck a deal to sell a majority stake in its China business to a local fund manager. Mainland excitement also makes the list with the deepening financial woes of China Vanke and Hong Kong’s Emperor International adds to its recent string of asset disposals.
Starbucks Offloading Mainland Business to China’s Boyu Capital in $4B Deal
Starbucks said on Monday it would sell control of its China operations to investment firm Boyu Capital in a deal valued at $4 billion, in one of the most valuable divestments of a China unit by a global consumer company in recent years.
Under the agreement, the companies will operate a joint venture, with Boyu holding an interest of up to 60 percent in Starbucks’ retail operations in China. Read more>>
China Vanke Bonds Plunge After Govt Backer Tightens Credit Terms
China Vanke’s bonds slumped after its state-owned shareholder pressed it to secure earlier loans with collateral, tightening financing terms just as the developer reported a deeper third-quarter loss.
The company said that its largest shareholder, Shenzhen Metro Group, has requested collateral or pledges for RMB 20.4 billion ($2.8 billion) worth of previously unsecured loans to ensure repayment, according to a statement late Sunday. If Vanke fails to comply, Shenzhen Metro has the right to demand immediate repayment of principal and interest on those loans. Read more>>
Hong Kong’s Emperor International Continues Asset Sales with GBP 28M London Exit
Hong Kong-listed Emperor International has added to its string of recent asset sales with the disposal of 181-183 Oxford St in West London’s Westminster area, according to a recent stock exchange filing.
The company controlled by tycoon Albert Yeung said last week that it has agreed to sell the 11,920 square foot (1,107 square metre) commercial block for approximately GBP 21.8 million after having purchased the property in 2014 for a reported GBP 35 million. Read more>>
Morgan Stanley Set to Invest in $326M Frasers Industrial Portfolio in Australia
The real estate arm of US investment giant Morgan Stanley is ramping up its push in Australia’s industrial market through a deal with property group Frasers for an A$500 million ($326 million) portfolio along the east coast.
The transaction involves nine properties in Queensland, NSW and Victoria, and when added to a deal between the two major players earlier this year, will create a portfolio of around A$1.4 billion when fully developed. Read more>>
Wee Hur Holdings Shifts Adelaide Student Housing Asset to PBSA Fund
Wee Hur Holdings announced that its 80 percent owned Australian subsidiary had entered into a sale and purchase agreement for the disposal of a property located at 188 Grenfell Street in Adelaide for S$14.2 million ($10.8 million) on Oct 31.
Grenfell Trust, an indirect 90.48 percent owned sub-trust of Wee Hur PBSA Fund III A (WHF3A) constituted on Oct 27, is the buyer of the Australian property from Anchor Urban Development, an indirectly owned Australian unit of Wee Hur, according to the bourse filings made by the property and construction group on Monday. Read more>>
KKR to Deploy India Insurance Resources to Drive Deals
KKR & Co Inc. is planning a bigger role for its India insurance unit, as the investment firm expands in credit, infrastructure and private equity in the country, its top executives said.
“We’re funding transactions in India through our insurance company,” KKR’s global co-chief executive officer Scott C. Nuttall said in a media briefing in Mumbai. “We’re also thinking through whether it could make sense to have local partnerships with Indian insurance companies where they create the liabilities and we help them invest the assets alongside.” Read more>>
Kuok’s Allgreen Unveils Renovation Plan for Singapore Mall
Singapore-based Allgreen Properties, a member of Kuok Group, has unveiled a multi-phase asset enhancement initiative for Johor Bahru City Square, a 25-year old mall close to the Johor Causeway.
The initiative will increase the mall’s floor space by over 20,000 square feet to 568,927 square feet and will result in more than 300 retail outlets, up from the current 247. There will be a refreshed facade, new anchor tenants, speciality concepts and experience-led zones. Read more>>
Standard Chartered Says Impairment Expenses Jumped 62% in Q3
Standard Chartered said its third-quarter statutory credit impairment expenses surged 62 percent to $195 million from one quarter ago, with that figure also representing a 10 percent increase from the same period a year ago.
The lender attributed the surge in large part to additional provisions taken due to heightened risks within its commercial real estate portfolio. The group set aside an extra $60 million specifically for exposures linked to the Hong Kong commercial real estate sector, citing increased pressures on client liquidity, interest payment capacity, and overall repayment ability. Read more>>
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