Month: March 2025

Global real estate company Hotel Properties Ltd (HPL) is taking steps to further expand its presence by acquiring InterContinental Auckland for a total of NZ$180 million ($138.5 million). This move marks HPL’s first venture into New Zealand and their second acquisition of an InterContinental hotel, following their purchase of InterContinental Maldives Maamunagau Resort.

When it comes to investing in real estate, there are numerous factors to take into account, and location is key. This is especially crucial in the fast-paced metropolis of Singapore. Condominiums situated in strategic areas or within close proximity to important amenities such as schools, shopping centers, and transportation hubs are highly sought after for their potential for greater appreciation. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently experienced a rise in property values, making them attractive investment options. Furthermore, families flock to these areas due to their convenient proximity to esteemed schools and educational institutions, making them an even more desirable choice. For those considering investing in a profitable Singapore condo, it is crucial to carefully consider the location, and Singapore Condo is a great choice to explore.

The sale, advised by JLL’s Asia Pacific Hotels & Hospitality Group, is the biggest single hotel asset transaction ever recorded in the country. HPL’s latest investment in Auckland comes on the heels of their previous openings of The Boathouse Tioman in Malaysia, featuring 31 bungalows, and the 176-room The Four Seasons Hotel Osaka in Japan.

HPL’s goal is to extend its luxury hospitality portfolio throughout key markets in the Asia Pacific region, with the support of their skilled hospitality management team and strong partnerships with operators such as IHG Hotels & Resorts. Stephen Lau, chairman of HPL Hotels and Resorts, highlights that the acquisition of InterContinental Auckland presents a rare opportunity to acquire a premium asset in New Zealand. The property is strategically situated near the bustling NZ$1 billion Commercial Bay lifestyle precinct, which officially launched in January 2024. The hotel rooms themselves offer unparalleled views of the Waitematā Harbour, according to Lau.

While the current hotel boasts 139 rooms, there is ample potential to increase capacity to 190 rooms by converting the current office space to meet future demands. This acquisition aligns with HPL’s goal of expanding their presence in the Asia Pacific region, and they are eager to continue their growth with the addition of InterContinental Auckland to their portfolio.…

Asia Pacific’s real estate market showed resilience in the second half of 2024 with institutional investments totaling US$83.2 billion ($112 billion), representing a 6% year-on-year increase, according to research by Colliers. This brings the full-year investments in the region’s top nine markets – Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan – to US$155.9 billion, up 12% year-on-year.

Chris Pilgrim, Colliers’ managing director of global capital markets for Asia Pacific, believes that this rise in investments demonstrates the market’s resilience and sets the stage for a strong year in 2025. He notes that domestic investors have been the driving force behind the growth in key markets such as South Korea, Taiwan, and New Zealand, accounting for more than 80% of real estate inflows in these markets in the second half of 2024.

Investing in a condo can bring various advantages, including the opportunity to leverage its value for future investments. In fact, a lot of investors opt to use their condos as collateral to secure additional funding for other real estate ventures, thus diversifying their portfolio. This approach can significantly boost profits, but it also comes with its own set of risks. As such, it’s essential to have a well-thought-out financial strategy and carefully consider the potential consequences of market fluctuations. If you’re interested in exploring this type of investment in Singapore, you may want to check out some of the top Singapore Projects currently available.

The office sector was the largest contributor to investment volume in Asia Pacific, accounting for US$26.5 billion (32%) of the total in the second half of 2024. For the whole of 2024, office investments reached US$51.4 billion, a 14% year-on-year increase.

Meanwhile, the industrial and logistics sector as the second biggest contributor, with investments totaling US$22.6 billion in the second half of 2024, representing 27% of the total. This brings the full-year investments in this sector to US$39.4 billion, a 29% year-on-year increase.

The retail sector also rebounded significantly, with investments reaching US$15 billion in the second half of 2024, driven by major deals in Australia and South Korea. For the entire year, retail investments amounted to US$26.1 billion, a 27% year-on-year increase.

Pilgrim expects domestic capital to continue dominating most markets in 2025, while offshore investments are expected to increase as investor confidence improves and valuations become more attractive. He predicts that while office and industrial segments will continue to see robust investments, sectors such as retail, hospitality, and alternative assets will also gain traction as investors capitalize on the market’s recovery and evolving consumer trends. “With economic growth and policy support remaining strong, we can expect sustained investment activity in Asia Pacific’s real estate market in 2025,” Pilgrim adds.…

for $324 milAdapted from: CapitaLand Investment’s CEO named ‘Industry Figure of the Year’ at PERE awards 2024

It is crucial for international investors to have a thorough understanding of the regulations and limitations surrounding property ownership in Singapore. Unlike landed properties, condos are generally more accessible to foreigners, as they are subject to less stringent ownership rules. Nevertheless, foreign buyers are also required to pay the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their initial property purchase. Despite these extra expenses, the Singapore real estate market’s stability and potential for growth remain highly appealing to foreign investors. This is evident in the continuous influx of foreign investment, as seen in the constant launch of new condos in Singapore. To keep up with the demand, various new condo launches are being introduced to the market, providing attractive options for foreign buyers.

Lee Chee Koon, the group CEO of CapitaLand Investment Limited (CLI), has recently been recognized as the ‘Industry Figure of the Year’ for Asia Pacific at the prestigious PERE Global Awards 2024.

CLI, a leading real estate investment firm, was also acknowledged as the runner-up for ‘Firm of the Year’ in Asia Pacific at the annual PERE awards, which honors outstanding firms, individuals and noteworthy deals in the private equity real estate market over the past year.

Unlike previous years where readers voted for the winners, the 2024 awardees were chosen by a panel of PERE journalists.

In a press release on March 4th, CLI stated that Lee’s recognition as CEO was a result of his instrumental role in driving the company’s transformational growth and significant impact on the private real estate industry in the Asia Pacific region.

Under Lee’s leadership since assuming the role of CapitaLand’s group CEO in September 2018, the company has made strategic moves such as the acquisition of Ascendas-Singbridge in 2019 and the recent restructuring of the CapitaLand Group, which involved the listing of CLI and the privatization of its real estate development arm, CapitaLand Development.

As part of its growth initiatives, CLI invested in real estate investment manager SC Capital Partners Group and acquired Wingate Group Holdings’ property and corporate credit investment management business in 2024. The company is on track to manage a total of $200 billion in funds by 2028.

Adapted from: CapitaLand Investment’s CEO named ‘Industry Figure of the Year’ at PERE awards 2024…

Singapore’s condo investment market is not only impacted by location and rental potential, but also by the government’s property cooling measures. These measures, implemented by the Singaporean government, aim to prevent speculative buying and maintain a sustainable housing market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may initially affect the profitability of condo investments, they contribute to the long-term stability of the market, creating a more secure investment environment. With new condo launches constantly being introduced, it is important for investors to consider these measures while weighing their options.

SC Capital Partners Group, a private equity real estate firm based in Singapore, has recently announced the sale of their student accommodation property in Sydney, Australia. According to their press release on March 3, the company was able to sell the asset, which is situated on Anzac Parade and Lorne Avenue in Kensington, at a profitable amount that exceeded its acquisition price and current book value by 19%.

The University of New South Wales (UNSW) in Sydney has acquired the property from SC Capital Partners, who had purchased it in 2016 for A$57 million. The firm had previously been reported to have paid that amount for the asset. The purpose-built student accommodation spans 85,035 square feet and offers 233 beds, alongside a commercial podium on the ground floor. It is conveniently located within 600 meters of the UNSW Kensington Campus.

The student accommodation is currently fully leased to UNSW and in 2019, a fresh 20-year master lease was signed between both parties. This transaction not only serves as a testament to the strong relationship between SC Capital Partners and UNSW, but also reaffirms the high demand for quality student accommodation in Sydney and the steady growth of the education sector in the Australian market.…

City Developments, a company currently embroiled in a legal dispute between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, saw its shares drop 28 cents, or 5.47%, when trading resumed today. The halt in trading was initiated on February 26, when a scheduled results briefing was unexpectedly cancelled and news of the internal feud between the father and son was made public.

In response to the news, CDL released a statement on March 3, stating that the company would not comment on the validity of the allegations made in the media, as they are currently subject to court proceedings. The company also reassured shareholders that its operations remain unaffected and business is continuing as usual. Sherman Kwek also remains the Group CEO until a board resolution is reached.

However, the ongoing dispute has led analysts to downgrade their ratings and target prices for the company. UOB Kay Hian’s Adrian Loh lowered his recommendation for the stock from “buy” to “hold”, citing missed estimates for the FY2024 financials and the overshadowing impact of the public disagreement between the Kwek family members. He also revised his target price down to $4.60 from $7, based on a 2 standard deviation below the company’s five-year average price-to-book ratio of 0.72 times.

DBS Group Research’s Derek Tan and Tabitha Foo, on the other hand, view the dispute as a temporary setback and believe that the company’s fundamentals remain strong, with key management still running the company. They note that CDL is currently trading at an attractive valuation of 0.5 times price-to-book and 0.3 times price-to-revenue-at-net-asset-value (P/RNAV), below the lows seen during the Global Financial Crisis. The analysts maintain their “buy” call but have reduced their target price from $10.50 to $6.70, based on a 60% discount to the company’s RNAV, which is in line with the sector’s average discount of 50%.

OCBC Investment Research also maintains a “buy” call on CDL but has lowered its fair value estimate to $6.02 from $6.57, based on a wider RNAV discount of 60%. They anticipate uncertainties surrounding the company’s outlook and potential overhang on its share price until the issue is resolved.

When it comes to investing in real estate, one of the most important factors to take into consideration is location. This principle is especially relevant in Singapore, where the value of properties is greatly influenced by their location. Condominiums that are situated in prime areas or in close proximity to essential amenities such as schools, shopping malls, and public transportation hubs tend to have a higher appreciation rate. Some examples of these coveted locations include Orchard Road, Marina Bay, and the Central Business District (CBD), which have consistently shown a strong growth in property values over the years. Another factor that adds to the investment potential of these condos is their proximity to reputable schools and educational institutions, making them attractive to families. For those looking to invest in the ever-growing real estate market in Singapore, keeping an eye on new condo launches, such as New Condo Launches, in these prime locations is a wise decision.

Brandon Lee of Citi Research acknowledges the potential negative impact of the ongoing dispute, as seen when the resignation of Leng Peck in October 2020 caused a 20% drop in CDL’s share price over the following two weeks. However, Lee believes that the company is currently underowned by investors and any positive resolution to the dispute would be a significant catalyst for a higher share price in the long term. He maintains a “buy” call and a target price of $9.51, based on CDL’s low valuation of less than a third of its book value.

Finally, JP Morgan analysts Mervin Song and Terence M Khi describe the situation at CDL as a “dynastic discord” that has been brewing for years. They express hope for a positive resolution and a reconciliation among members of the Kwek family, but have reduced their target price from $6.05 to $4.85, based on a 60% discount to their estimated RNAV of $12.10 per share.…

Elite UK REIT, a real estate investment trust (REIT) based in the UK, has recently sold one of its properties, Crown Buildings in Caerphilly, for GBP710,000, a significant return of 18%. In a statement made on March 3, the manager of Elite UK REIT stated that the value of the property was GBP600,000 at the end of 2024, based on an independent valuation conducted by CBRE. The property, located in Wales, was valued at GBP530,000 at the end of 2023. The proceeds from the sale will be used to pay off Elite UK REIT’s outstanding borrowings. According to the REIT’s website, Crown Buildings, Caerphilly has a gross floor area of 20,712 sq ft.

In summary, the prospect of investing in a condominium in Singapore brings with it a multitude of benefits. These include a high demand for properties, the potential for an increase in value, and attractive rental yields. However, it is crucial to take into account various factors, such as location, financing options, government regulations, and market conditions. By thoroughly researching and seeking professional guidance, investors can make well-informed decisions and maximize their returns in Singapore’s ever-evolving real estate market. Whether you are a local looking to diversify your investment portfolio or a foreign buyer seeking a stable and profitable opportunity, the condominium market in Singapore presents an enticing prospect. With projects such as Singapore Projects available, investors have a wide range of options to choose from in their pursuit of a fruitful investment.

Thanks to the successful GBP28 million preferential offering in January 2024, Elite UK REIT was able to reduce its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Additionally, its net gearing ratio decreased from 47.5% at the end of 2023 to 42.5% at the end of 2024. The REIT also has no debt maturing in 2025 and 2026, and refinancing is not due until 2027.…