Pebblestone Bids $363M for Seoul's Hyde Park Myeongdong

South Korea's Pebblestone Asset Management has signed a preliminary agreement to pay $363.4 million for the Hyde Park Myeongdong complex in Seoul. The 19-storey mixed-use property, completed in 2021, houses Apple's flagship Korean store, according to a Chosunbiz report citing investment banking sources.

Pebblestone was selected as the preferred bidder for the asset last month. The firm is also the preferred bidder for T Tower, an office building near Seoul Station. This move signals continued investor confidence in prime Seoul retail and office assets.

Major Cross-Border Investment Deals

Japanese firms are also active in major transactions. Daiwa House Industry has agreed to buy a roughly 30 percent stake in UK homebuilder Miller Homes. The deal values Miller Homes at approximately $2.7 billion, with Daiwa's share worth about $536 million, Bloomberg reported, citing people familiar with the matter. Apollo-managed funds will remain the controlling shareholder.

In Japan, East Japan Railway Company (JR East) and Itochu Corporation are launching a joint real estate venture. The new company, JR East Itochu Real Estate Development, will be capitalized at $66.8 million and begin operations on October 1. JR East will own 60 percent and Itochu 40 percent of the Tokyo-based developer.

Office Market Transactions in Sydney

A flurry of deals is reshaping Sydney's office market. Canada's CPPIB and Australia's Dexus have agreed to sell 101 George Street to private buyer Sandran Property Group for A$145 million ($103 million).

Separately, Acure Asset Management has acquired two office buildings on Sydney's North Shore for a combined A$278 million. The firm bought 67 Albert Avenue in Chatswood from Singapore's Mapletree for $108 million and 558 Pacific Highway in St Leonards from Chinese-backed developer JQZ for $170 million.

Singapore Market Activity

In Singapore, US advertising giant Omnicom has leased about 50,000 square feet at 51 Merchant Road. The Business Times reported the deal covers roughly three-quarters of the building, allowing Omnicom to consolidate its Singapore offices. The property was purchased for S$121.8 million in February and is slated for refurbishment completion in early 2027.

Malaysian developer Eco World Development has won a government land tender for a condominium site in Bishan. Its bid of S$208.1 million set a new record price per square foot for a 99-year leasehold private residential site in Singapore's urban fringe, beating six other bids.

China Market Trends

China's new home prices fell 0.1 percent in August from July, matching the declines of the previous two months. The annual drop narrowed slightly to 3.0 percent. Tier-one cities saw a marginal 0.1 percent increase, while smaller cities continued to decline. Household loans, including mortgages, shrank by RMB 202.9 billion ($30.2 billion) in August.

The nation's $33 billion REIT market is showing signs of strain. Bloomberg reported that roughly 30 REIT products are awaiting approval to raise a combined RMB 90.4 billion ($13.5 billion), an amount equal to about 40 percent of the market's current listed value. Listed REITs have fallen 10.4 percent over the past six months. Zhao Yunjiao of CSCI Pengyuan Credit Ratings described the sector as being in a "deep correction."