Keppel executive director and CEO Loh Chin Hua (Image: Keppel)
Earnings lead today’s real estate headlines from around Asia Pacific as Singapore’s Keppel boosts quarterly profit by 20 percent on core growth, with $1.9 billion in property sales. Also in the news are Ichigo Office REIT selling five Tokyo offices for $121 million and a Mitsubishi Estate-led group winning a $6.3 billion data centre tender.
Keppel Q3 Profit Climbs 20% as Core Business Grows
Singapore’s Keppel lifted third-quarter net profit by 20 percent year-on-year, according to a business update. Profit from its core business rose about 15 percent, driven by stronger earnings from its connectivity unit, which includes data centres, and steady infrastructure contributions.
Nine-month net profit fell 40 percent after the value of Keppel’s non-core assets dropped 4 percent, the company said. Its real estate division has announced more than S$2.4 billion ($1.9 billion) in non-core property sales this year. Read more>>
Ichigo Office REIT Selling Five Tokyo Offices for $121M
Japan’s Ichigo Office REIT has agreed to sell five mid-sized Tokyo office buildings for JPY 19 billion ($120.5 million) to two undisclosed domestic companies, the trust’s manager said. The price compares with a combined appraised value of JPY 13.9 billion.
The trust expects a gain of JPY 7.9 billion and plans to return JPY 5.3 billion to unitholders, it said. The manager cited rising repair costs at buildings more than 30 years old and higher ground rents on leased land. Read more>>
Mitsubishi Estate Group Picked to Build $6B Utsunomiya Data Centre Campus
The city of Utsunomiya, north of Tokyo, has picked a group led by Mitsubishi Estate to build a data centre campus costing JPY 1 trillion ($6.3 billion), according to Nikkei. Railway operator JR East and data centre firm Digital Edge Japan are partners.
The 370,000 square metre (4 million square foot) site sits next to a 400-megawatt TEPCO Power Grid substation. The partners aim to have all four buildings running by fiscal 2035, the report said. Read more>>
HKMA Said Urging Banks to Back Hong Kong Developer Refinancing
The Hong Kong Monetary Authority has urged more than 10 banks to keep backing developers’ refinancing and loan extensions, according to sources cited by The Standard. Deputy chief executive Arthur Yuen chaired the meeting with local, mainland Chinese and foreign lenders.
Yuen warned that problems among developers would hit commercial property again and weigh on prices, according to the sources. They described an uneven recovery in which industrial and commercial property outside core districts remains under pressure. Read more>>
Quantum DC Proposes 1.2GW Data Centre Campus Near Adelaide
Australia’s Quantum DC is proposing a 1.2-gigawatt data centre on a 220 hectare (544 acre) site in Tungkillo, about 55 kilometres (34 miles) east of Adelaide. The company expects the first of three stages to open in 2028 and the full hub by 2031.
Quantum DC said contracted wind and solar power will supply about 80 percent of the hub’s electricity, with on-site gas turbines providing the rest. The proposal needs approval from South Australia’s planning minister, the company said. Read more>>
Singapore’s Worldwide Hotels Buys Perth Holiday Inn for $19M
Singapore-based Worldwide Hotels has bought the 101-room Holiday Inn West Perth for A$26.8 million ($18.9 million) from Australian Development Capital, according to realestatesource.com.au. The seller completed the 13-storey hotel in 2016 around a restored early-1900s red brick homestead.
IHG Hotels & Resorts leased the property in 2021 for an initial 20 years, with two five-year options. JLL’s Andrew Langsford, Gus Moors, Chris Boyd and Sean Flynn represented the seller. Read more>>
India’s L&T Breaks Ground on 52MW Chennai AI Data Centre
India’s Larsen & Toubro has broken ground on a 52-megawatt data centre near Chennai, according to The Hindu. The facility will expand an existing 30MW centre at the company’s Kancheepuram campus.
In August, L&T won an order valued at INR 100 billion to INR 150 billion ($1.1 billion to $1.6 billion) to build an AI facility for US-based Together AI, the report said. L&T’s digital infrastructure unit Vyoma.AI aims to build more than 250MW of capacity across India. Read more>>
Keppel Eyes $1B Vietnam Real Estate Investment Platforms
Singapore’s Keppel is exploring investment platforms that could raise up to $1 billion for Vietnam real estate, mainly from third-party co-investors, the company said. The firm is one of 10 inaugural members of the Vietnam International Financial Centre in Ho Chi Minh City.
Keppel has built about 30 projects in Vietnam over four decades, according to the Business Times. Its first Vietnam real estate fund raised $400 million at first close in 2020, short of its $600 million target. Read more>>
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