AHReit Set for New Journey

Ascendas Hospitality Trust’s (A-HTrust)manager filed regulator updates to the exchange on Tuesday to suspend share trading, pending to determine the entitlements for A-HTrust stapled securityholders regarding the trust scheme for the combination of A-HTrust and Ascott Residence Trust.


Japan Hotel Reit Acquired Hilton Tokyo

Japan Hotel REIT Investment Corporation  acquired Hilton Tokyo Odaiba for JPY 62.4 Billion as of today.

Hilton Tokyo Odaiba is a large-scale full-service hotel located in Odaiba, one of the most popular tourist destinations in Tokyo.

Upon acquisition of Hilton Tokyo Odaiba, JHR’s portfolio consists of 43 hotels throughout Japan and its asset size is JPY374.5 billion in total in terms of acquisition price.


(TOKYO: 8985)

China Developer Seeks USD 1 Billion

China Developer Seeks to Raise USD 1 billion from Hong Kong stock market.

The Hong Kong- listed China property developer posted its biggest decline in more than 27 months on a plan to raise funds, Sunac said it priced its 251.5 million share placement at the low end of a marketed range. It expects to raise nearly USD 1 billion.

China’s HNA Seek Listing Overseas Properties in Singapore

China’s HNA Group is set to list Commercial Reit in Singapore, seeking raising SGD775 million. The commercial real estate investment trust is likely to be the biggest IPO this year, back by assets from Australia and the UK.

HNA Commercial REIT is expected to have an estimated issue size of SGD775 million in its upcoming initial public offering, according to documents seen by Singapore media. Based on documents seen by media, the IPO portfolio will comprise five properties, with 46% of the portfolio in Australia, 27% in the UK, and 26% in Singapore.


According to reports, the Shenzhen-listed HNA Investment Group is looking to become the biggest shareholder in the REIT, with plans to hold a stake of at least 35%.


The group will also own a 75% stake in the REIT manager, HNA-A EP REIT Management, which was formed in partnership with Singapore-based property fund management firm AEP Investment Management.


Two of properties — StarHub Green in Ubi with an occupancy of 94.7%; and 41 George Street in Brisbane which is 99.8% occupied — are from Basil Property Trust, which is managed by AEP.


A third property, Trident Place Business Park, Hatfield, which is 100%-occupied, is from AEP’s UK Separate Account Fund.


Price Index of Private Apartments in Singapore Unchanged in January

Index tracking prices of non-landed private apartments in Singapore were overall unchanged in January,  as resale prices of completed private homes in central region’s slight increase offset by the drop of those in the non-central region, flash estimates from the NUS Singapore Residential Price Index (SRPI) showed.

Prices of homes in the central region, excluding small units, climbed 0.7% in January from December, while those in the non-central region dropped 0.6%. Prices of small units, which have a floor area of 506sqf or below, increased 0.1% during the month of January when compared with a month ago.

Prices of homes in the central region, excluding small units, went down 0.6% in December, while those in the non-central region climbed 0.4%. Prices of small units, which have a floor area of 506sqf or below, slid 0.2% during the month when compared with a month ago.

Singapore Residential Price Index (SRPI) is compiled by the National University of Singapore’s(NUS) Institute of Real Estate Studies. It is a transactions-based index that tracks the month-on-month price movements of private non-landed residential properties in Singapore.  A small unit has floor area of 506 square feet or below.

– APMR News



Banks Seeing Sign China is Tightening Monetary Policy

Economists expect China’s monetary policy to be less accommodative in the foreseeable future amid rising CPI and asset inflation and the incomplete task of deleveraging.
Standard Chartered economists think China’s monetary policy will not diverge significantly from the Fed policy this year. “With the market pricing in two Fed rate hikes this year, we think the PBoC may raise the policy rate level by another 20bps for the rest of the year, including rates on reverse repos, standing lending facilities (SLF), MLF and pledged supplementary loans (PSL)”, SCB economists said.
“We do not expect cuts in benchmark deposit and lending rates or the reserve requirement ratio. Instead, the PBoC is likely to keep money-market liquidity tightly balanced and gradually raise interest rates on its lending to commercial banks. The PBoC may raise policy rates further in the year.”

DBS also sees “A series of signs have flagged an inflection point” in the People’s Bank of China’s (PBoC) monetary policy of tightening. On February 3, the authority raised rates on seven-, 14- and 28-day reverse repos by 10 basis points each to 2.35%, 2.5%, and 2.65%, respectively. The bank noted it is the first increase since 2013 for the two shorter tenors, and the first since 2015 for the 28-day contracts.

The moves come one week after PBoC increased the one-year rates on Medium-term Lending Facility to 3.1% from 3%. The PBoC conducted 6M and 1Y medium-term lending facility (MLF) operations  on January 24 of the amounts of CNY 138.5bn and CNY 107bn , respectively.

SCB economists think the move confirms that monetary and credit policy will likely be moderately tighter this year  as the move is to help roll over maturing MLFs and maintain stable liquidity in the banking system, as the Central Economic Work conference convened last month set a “prudent and neutral” monetary policy stance for 2017.








Fosun Buys Germany Private Bank

Fosun International said today it has completed the acquisition of 99.91% equity interest in a German private bank Hauck & Aufhäuser Privatbankiers, for approximately EUR210 million. Through the acquisition, Fosun aims to continue to strengthen its integrated financial capability in German and European market. This acquisition also marks an important move made by Fosun to establish a family wealth management platform globally.


“We are delighted that the European Central Bank and related financial regulatory authorities have made a positive decision and support. H&A is a strategic investment for us and provides us with the channel to invest in major economies in Europe,” said Mr. Guo Guangchang, Chairman of Fosun. “According to our investment plans and leveraging our rich resources across the world, we can effectively help H&A enhance its position in the banking sector of Germany and the rest of Europe.  At the same time, we can provide investors from China and other Asian countries with the opportunities to invest in Germany.”


“With the support from Fosun, our long-term shareholder, we are fully capable of building a bridge for Chinese companies seeking opportunities for investment in Germany and the rest of Europe. Meanwhile, we can also assist German enterprises to enter China’s market. H&A will continue to leverage its excellent brand and independence to become a reliable partner of our clients,” said the senior management of H&A. “In the past few months, we have had a full understanding about the opportunities to be brought about by the co-operation with Fosun and we have already started establishing our business in China systematically. Together with Fosun, we will increasingly take advantage of synergies which are to be generated and will extend and enrich our investment portfolio significantly.”


In the past five years, owners’ equity in H&A increased tremendously, laying the sound foundations for its further development. In such fields as asset servicing and the business of managing equity interests in small-cap and mid-cap companies, H&A has achieved growth rates in results higher than the industry average in recent years. The private bank has also expanded its business to the key markets in Europe. Since 2013, assets under H&A’s management has increased by nearly 50%. The successful acquisition of H&A will reinforce the blueprint of Fosun’s financial service business in overseas markets. Fosun will also continue to expand its presence in private banking and wealth management segments.


H&A is one of the few independent private banks in Germany with 220 years of tradition. The bank resulted from the 1998 merger of two highly traditional private banks: Georg Hauck & Sohn Bankiers, founded in Frankfurt am Main in 1796, and Bankhaus H. Aufhäuser, which opened its doors in Munich in 1870. From its locations in Frankfurt, Munich, Hamburg, Düsseldorf, Cologne and Luxembourg, the bank focuses on providing comprehensive advisory services and administering the assets of its private, corporate and institutional clients. This includes asset management for institutional investors, close cooperation with independent asset managers and both the launch and management of private label funds.