China remains MPACT’s ‘biggest pain’ as divestment hurdles persist
Manager looks to extract further value from its Singapore properties, with two VivoCity upgrades planned
Mapletree Pan Asia Commercial Trust (MPACT) anticipates continued challenges to its China properties over the next year, while grappling with difficulties in divesting underperforming assets. CEO Sharon Lim stated that China remains "our biggest pain," noting that continued declines in the country's real estate market will persist.
MPACT owns two Chinese properties—Gateway Plaza in Beijing and Sandhill Plaza in Shanghai—that account for around 9% of the REIT's assets under management (AUM). In the first half of 2026, these properties delivered S$26 million in net property income (NPI), a decrease of approximately 15.9% compared to the same period a year earlier.
Rental reversion for the half-year was a negative 29.9%. High supply of office and business park spaces in Beijing and Shanghai has put downward pressure on rents, with office rents falling in both cities. MPACT has divested S$1.2 billion worth of properties in the past two years, but faces a less favorable investment environment for further sales due to higher financing costs and reduced buyer interest.
Despite these hurdles, the company remains committed to divesting weaker-performing assets and enhancing the performance of its remaining properties.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
