Asia-Pacific Real Estate Update: Redevelopment, Deals, and Investments

Strategic Insights -

The Asia-Pacific region saw significant real estate updates in December 2010, with various projects and transactions underway. In Indonesia, the Situ Gintung embankment, which collapsed in March 2009, was set to be redeveloped with a face-lift and fully operating from June 2011. In the Philippines, Alliance Global Group Inc. (AGI) acquired 5 billion common shares from Fil-Estate Land Inc. worth P5 billion (US$113.1 million). Charter Hall Office REIT lengthened its Australian syndicate loan, while Toll Group divested its stake in Shenzhen Chiwan Petroleum Supply Base. Additionally, Indochina Land opened a 5-star resort in Vietnam, and Australia's Centro Retail Trust refinanced a portion of its debt.

Key Takeaways:

  • The Situ Gintung embankment in Indonesia, which caused hundreds of casualties in 2009, is set to be redeveloped and fully operating from June 2011 after restoration and certification processes are completed.
  • Alliance Global Group Inc. (AGI) acquired 5 billion common shares from Fil-Estate Land Inc. worth P5 billion (US$113.1 million) in the Philippines.
  • Charter Hall Office REIT lengthened its Australian syndicate loan by 28 months, extending its weighted average debt maturity from 2.2 years to 2.8 years.
  • Toll Group divested its stake in Shenzhen Chiwan Petroleum Supply Base, a Chinese business that has shifted focus from oil and gas supply operations to industrial property development.
  • Indochina Land opened Six Senses Con Dao, a 5-star resort in Vietnam's Ba Ria-Vung Tau province, covering 12 hectares and featuring 50 villas for sale with a resort rental program.
  • Centro Retail Trust refinanced a part of its debt, closing out an equity hedge contract with Centro Properties Group and extending a A$101.3 million (US$100.74 million) maturing Australian debt facility until November 30, 2011.

Statistics:

  • P5 billion (US$113.1 million) - the worth of 5 billion common shares acquired by Alliance Global Group Inc. (AGI) from Fil-Estate Land Inc.
  • A$600 million (US$599.07 million) - the Australian syndicate loan lengthened by Charter Hall Office REIT
  • 2.2 years - the previous weighted average debt maturity of Charter Hall Office REIT's Australian syndicate loan
  • 2.8 years - the new weighted average debt maturity of Charter Hall Office REIT's Australian syndicate loan
  • 28 months - the extension of Charter Hall Office REIT's Australian syndicate loan
  • 12 hectares - the land area of Indochina Land's Six Senses Con Dao resort in Vietnam
  • 50 villas - the number of villas for sale at Indochina Land's Six Senses Con Dao resort
  • A$101.3 million (US$100.74 million) - the maturing Australian debt facility refinanced by Centro Retail Trust

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Ciliwung-Cisadane river institute chief, Pitoyo Subandrio
  • Philippine Stock Exchange (PSE)
  • Alliance Global Group Inc. (AGI)
  • Fil-Estate Land Inc. (FELI)
  • Charter Hall Office REIT (CQO)
  • Centro Retail Trust (CER)
  • Centro Properties Group (CNP)
  • Asia Pulse Production Centre (Phone: (612) 9322 8634, Fax: (612) 9322 8639)