DALIAN, China, July 11, 2024 /PRNewswire/ -- A news report from chinadaily.com.cn:
Hengli Heavy Industries plans to commence construction on over 30 vessels this year, process nearly 500,000 tons of steel plates, and engage over 20,000 personnel at its yard in Changxing Island of Dalian, Liaoning province.
In April, its first ship, a 61,000 dwt bulk carrier, was delivered more than 40 days ahead of the scheduled delivery date set at the beginning of the year.
The shipyard, formerly known as STX Dalian, was once the largest foreign-owned shipyard in China. STX Dalian was founded in 2006 but declared bankruptcy and liquidation in 2015. In 2022, Hengli Heavy Industries, a subsidiary of Hengli Group, was established and acquired the shipyard.
Hengli Heavy Industries is focusing on developing a world-class green shipbuilding and high-end equipment manufacturing hub. At Changxing Island, this strategic move supports Hengli Group's logistics for crude oil, coal, and product transportation while repurposing exhaust gases from the Hengli (Dalian) Petrochemical Industrial Park into cost-effective energy for heavy industries.
At the beginning, facing numerous challenges, such as dilapidated facilities and outdated equipment, it quickly assembled a 100-member team composed of internal and external experts, which thoroughly assessed STX Dalian's assets to ensure clear ownership and operational readiness under stringent corporate standards.
With robust support from local authorities, Hengli Heavy Industries swiftly restored the shipyard's production capabilities. The administrative committee of the Changxing Island Economic and Technological Development Zone had set up a dedicated working group to collaborate on-site with the project team.
Within several days, over 5,000 employees worked in tandem daily to refurbish facilities and reinforce roads. The equipment manufacturing sector began production in just 25 days.
By January 2023, the entire Hengli Heavy Industries complex was fully operational, with shipbuilding, marine engineering, engines, and precision casting sectors advancing concurrently.
The shipbuilder also established a ship design and research center, attracting globally renowned experts in design, quality, and production.
"Starting from scratch, we have successfully recruited international talents, including over a dozen Korean experts," said Wang Xiaohai, general manager of Hengli Shipbuilding (Dalian) Co Ltd.
Once into full production, the company is expected to deliver 60 vessels per year.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
Over 30 vessels to be constructed by Hengli this year
The fund acquires a quality commercial property in Seoul for KRW 440.8 billion
SEOUL, South Korea, Aug. 29, 2024 /PRNewswire/ -- CapitaLand Investment Limited (CLI), a global real asset manager, has closed a new value-add office blind pool fund in South Korea with total equity commitment of KRW 200 billion[1] (S$194.4 million[2]). The private fund is a strategic partnership with KB Bank, an affiliate of the country's largest financial group, KB Financial Group. CLI holds a sponsor stake in the fund in alignment with the interests of its capital partner. The new fund increases CLI's geographical exposure to South Korea, a key focus market. It also increases its funds under management (FUM) in the market by 16% to S$3.3 billion.
The fund has acquired an operating freehold commercial property, Golden Tower, from an unrelated third party for KRW 440.8 billion (S$428.5 million). Leveraging its commercial management expertise, CLI will also receive recurring fee income as the asset manager of Golden Tower. The 20-storey property is located in the heart of Seoul's Gangnam Business District (GBD). Golden Tower is within walking distance to three subway stations - Seolleung, Samseong, and Samseong Central stations - and offers tenants premium views of Seonjeongneung Park, a popular cultural landmark. In addition to offices, the property also has ancillary retail as well as food and beverage options.
Golden Tower is set to undergo an asset enhancement initiative (AEI) comprising improvements to areas such as the lobby, facade as well as mechanical, electrical and plumbing components to improve the asset's energy efficiency. Post-AEI, the property is expected to achieve a Leadership in Energy and Environmental Design (LEED) Platinum certification. The AEI is slated to start at the end of 2024 and be completed by 3Q 2025.
Mr Min Il Sung, CLI's Head for Korea Capital Markets, said: "CLI has over 20 years of experience operating in South Korea. Leveraging our deep market knowledge, deal sourcing capabilities and investment expertise, we secured Golden Tower in an off-market deal for our new value-add office fund. Seoul's office market remains one of the most resilient in Asia with the lowest vacancy rates[3]. With our value-add strategy and Golden Tower's strategic location in the bustling GBD, the strongest performing office submarket in the country, we are confident of delivering long-term value for our partner. The fund marks the maiden collaboration between CLI and KB Bank. We look forward to strengthening the partnership with more co-investment and fund opportunities in the future."
Mr Matthew Sohn, CLI's Managing Director and Head for Korea, said: "Value-add investment strategies are gaining prominence in South Korea[4] amid prolonged high interest rates. Investors are seeking to partner organisations like CLI with a proven track record, strong asset management and operational expertise across different asset classes and fund strategies. South Korea is a focus market for CLI. We will continue to work alongside like-minded capital partners to grow our office portfolio as well as in other asset classes such as logistics, lodging and data centres. Leveraging CLI's investment and operating expertise in one of Asia's largest self-storage businesses[5], we also see strong potential to expand into the self-storage sector in South Korea. CLI continues to grow our private funds business to achieve attractive risk-adjusted returns for our partners."
CLI's presence in South Korea
With the new value-add office fund, CLI now manages eight private funds in South Korea. The fund's acquisition of Golden Tower also expands CLI's portfolio of diversified asset classes comprising offices, logistics facilities, lodging properties and data centres[6].
In September 2023, CLI's flagship regional core-plus fund, CapitaLand Open End Real Estate Fund, acquired a newly completed, Grade A logistics property in South Korea. The high specifications logistics property, Anseong Seongeun Logistics Centre, was secured at an attractive price through an off-market exercise. The property is strategically located in the north-western region of Anseong, an emerging logistics hub in the Gyeonggi province.
Through CLI's wholly owned lodging business unit, The Ascott Limited and its lodging trust, CapitaLand Ascott Trust, CLI also has nine serviced residences and hotels with more than 2,400 units in Seoul, Busan, Cheongju, Incheon and Jeju.
[1] Includes CLI's equity contribution.
[2] Based on exchange rate of KRW 1 to S$0.000972 unless otherwise stated.
[3] CBRE Research, June 2023.
[4] CBRE's 2024 Asia Pacific Investor Intentions Survey.
[5] APG and CapitaLand Investment in joint venture to build dominant self-storage platform in Asia.
[6] Completed and under development.
About CapitaLand Investment Limited (www.capitalandinvest.com)
Headquartered and listed in Singapore, CapitaLand Investment Limited (CLI) is a leading global real asset manager with a strong Asia foothold. As at 30 June 2024, CLI had S$134 billion of assets under management as well as S$100 billion of funds under management (FUM) held via six listed real estate investment trusts and business trusts and a suite of private real asset vehicles that invest in thematic and tactical strategies . Its diversified real estate asset classes include retail, office, lodging, industrial, logistics, business parks, wellness, self-storage and data centres.
CLI aims to scale its fund management, lodging management and commercial management businesses globally and maintain effective capital management. As the investment management arm of CapitaLand Group, CLI has access to the development capabilities of and pipeline investment opportunities from CapitaLand's development arm.
As a responsible company, CLI places sustainability at the core of what it does and has committed to achieve Net Zero carbon emissions for Scope 1 and 2 by 2050. CLI contributes to the environmental and social well-being of the communities where it operates, as it delivers long-term economic value to its stakeholders.
Follow @CapitaLand on social media
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Issued by: CapitaLand Investment Limited (Co. Regn.: 200308451M)
Important Notice
This announcement and the information contained herein does not constitute and is not intended to constitute an offering of any investment product to, or solicitation of, investors in any jurisdiction where such offering or solicitation would not be permitted.
** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **
CapitaLand Investment closes new KRW 200 billion value-add office fund in South Korea to grow funds under management
