Month: December 2024

In the year 2025, Singapore’s built environment is set to undergo significant changes. The facilities management (FM) sector is facing pressure to adapt to new regulations, rising costs, and technological advancements. As we look towards the future, there are three key drivers that will shape the sustainability of FM: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend of adaptive reuse in construction.

A Catalyst for Energy Efficiency: Climate Disclosures and Tighter Regulations

Starting in the third quarter of 2025, the Mandatory Energy Improvement regime will require existing energy-intensive buildings to undergo energy audits and implement energy-efficiency improvement measures. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 sq m. The goal is to reduce energy usage intensity by 10% from pre-energy audit levels, and this target can be achieved by implementing the right strategies.

When it comes to investing in real estate, location is a crucial factor to consider. This is especially true in Singapore, where the location of a condo can greatly impact its value and investment potential. Condominiums that are located in central areas or close to important amenities, such as schools, shopping malls, and public transportation hubs, tend to appreciate in value more quickly. Prime locations in Singapore, such as Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown growth in property values. Additionally, condos near reputable schools and educational institutions, like Singapore Condo, are highly desirable for families, making them even more valuable investments.

This new regulation encourages building owners to take a medium to long-term view on capital-intensive investments in energy-efficient systems. By conducting energy audits, building owners can identify areas for improvement and develop strategies to prolong the lifespan of assets, reduce operating costs in the long run, and contribute to a more sustainable built environment. Additionally, building owners can apply for grants to cover the costs of energy efficiency upgrades.

A Model for Smart and Sustainable Facilities Management: Temasek Polytechnic’s Experience

Singapore’s first smart campus, Temasek Polytechnic, embarked on a bold ambition to digitize its campus operations in 2021. Through its efforts, the polytechnic offers valuable insights into the future of smart and sustainable facilities management.

Temasek Polytechnic’s smart campus is powered by a suite of solutions that digitize campus operations, including facility booking, automating repair and maintenance work orders, and managing crowd control and temperature measures. These systems are integrated into a central data environment, generating valuable insights that are visualized, tracked, and monitored at a control centre on campus. By using this data, campus operations teams can make informed decisions to keep building systems healthy, maximize the return on investment in assets, and reduce operational carbon levels.

A Push Towards Proptech: Rising Temperatures and Energy Costs

As temperatures continue to rise, buildings will require more cooling, leading to increased investments in predictive technology. Already, air conditioning and mechanical ventilation (ACMV) systems are a major contributor to operational costs, accounting for approximately 60% of total energy expenses in many buildings.

To mitigate rising energy costs, building owners can implement energy-efficient solutions like energy recovery systems or thermal energy storage. Optimizing the operations of chiller plants to adapt to changing weather conditions can also reduce energy waste and costs.

At a city and precinct level, extreme weather events like flooding and urban heat threaten the health and performance of critical infrastructure. To address this, building owners and city planners can utilize web-based geospatial IT to identify flood-prone or heat-exposed areas and create a comprehensive operational plan to mitigate risks.

Adaptive Reuse as a Response to Rising Costs

With the increasing costs of construction, there is a growing trend towards adaptive reuse in Singapore. Surbana Jurong (SJ) estimates that mechanical and electrical costs have increased by approximately 30% compared to pre-Covid levels. This trend is driving the adoption of smart design and engineering practices, including using collaborative common data environments to benchmark construction and operational costs.

Adaptive reuse offers a sustainable approach to reducing costs, and platforms like Podium support this by enabling integrated digital delivery. By consolidating data from multiple sources, all stakeholders involved in the building cycle, from design to operations, can access valuable data to drive deliberate goals, including minimizing embodied carbon levels.

Smart buildings can help mitigate cost pressures by maximizing the lifespan of capital-intensive equipment like ACMVs, lifts, and air handling units. Through a data-driven long-term approach, building owners can prioritize energy savings to offset energy tariffs from the initial capital expenditure of investing in the equipment. By using sensors to monitor and track the performance of equipment and implementing predictive maintenance, building owners can reduce downtime and improve equipment efficiency.

In conclusion, the future of facilities management in Singapore is driven by regulatory demands, cost pressures, and technological advancements. By embracing digitalization, data analytics, and sustainable practices, the sector can drive sustainability, reduce costs, and ensure long-term operational success.…

likely after one-third jump in closures

The Meyerise clinched the top spot among private condos that saw a new psf-price peak during the week of Nov 29 to Dec 6. On Dec 6, a 1,270 sq ft, three-bedroom unit on the 24th storey was sold for $3.52 million, setting a new record of $2,771 psf. This surpasses the previous record of $2,764 psf set last October when a 1,819 sq ft, four-bedroom unit on the 28th storey fetched about $5.03 million

Renewed interest in city-fringe projects is expected to see a one-third increase in the number of transactions within the city-fringe region within the next few months. This comes on the back of a 8.5% quarter-on-quarter jump in new home sales in the core central region (CCR) between April and September, with the total number of units sold rising to 2,508 from 2,310.

When considering investing in condos in Singapore, it is important to take into account the government’s property cooling measures. Through the years, the Singaporean government has implemented various measures to prevent speculative buying and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those acquiring multiple properties. While these measures may have a short-term impact on the profitability of condo investments, they also play a crucial role in ensuring the long-term stability of the market, making it a secure and favorable investment environment. Interested in keeping up with the latest New Condo Launches? Check out dyslexicpress.com for updates.

Buyers who are on the lookout for luxury condos in prime districts are in for good news as prices in District 9 – which covers high-end suburbs such as River Valley, Robertson Quay, Grange Road and Orchard Road – are falling steadily but the demand for this segment remains strong.…

SummaryThe most profitable condo resale deal this week was at the 99-year leasehold JadeScape, where a six-bedroom penthouse on the 23rd floor sold for $10.15 million ($2,399 psf) on Dec 9. The seller made a profit of $4.35 million after owning the unit for five years, or an annualised profit of 15%.Based on caveats lodged, this is also the biggest gain ever made on a unit at JadeScape. The previous top gain at the development was from the sale of a 2,099 sq ft, five-bedroom unit on the 10th floor for $4.42 million ($2,108 psf) in August.The second most profitable deal this week was at The Imperial, where a three-bedroom unit on Jalan Rumbia changed hands for $3.7 million ($2,624 psf) on Dec 5. This unit, which measures 1,410 sq ft, was initially purchased from the developer for $1.3 million ($925 psf) in September 2004.As for the least profitable deal, a one-bedroom unit at The Montana in District 10 was sold for $1.02 million ($1,603 psf) on Dec 6, resulting in a loss of about $165,000 for the seller. The unit last changed hands in July 2014 for $1.18 million ($1,863 psf). The Montana is a freehold condo that was completed in 2002.

A penthouse unit at the 99-year leasehold condo, JadeScape, located on Shunfu Road, was the most profitable condo resale during the week of December 3 to December 10. The six-bedroom unit, measuring 4,230 sq ft on the 23rd floor, was sold for $10.15 million ($2,399 psf) on December 9. The seller had purchased the unit from the developer in December 2019 for $5.8 million ($1,371 psf), resulting in a profit of $4.35 million after owning the unit for five years. This translates to a capital gain of 75% or an annualized profit of 15%.

Based on caveats lodged, this is the largest gain ever recorded for a unit at JadeScape. The previous highest gain at the development was from the sale of a five-bedroom unit measuring 2,099 sq ft on the 10th floor for $4.42 million ($2,108 psf) on August 12. The seller gained $1.14 million from the transaction as the unit was purchased from the developer in September 2019 for $3.28 million ($1,562 psf).

When purchasing a condo, it is crucial to keep in mind the maintenance and management of the property. Condos usually have maintenance fees that cover the maintenance of shared spaces and amenities. While these fees may increase the overall cost of owning a condo, they also guarantee that the property stays in good shape and maintains its value. Hiring a property management company can assist investors in managing their condos on a daily basis, turning it into a more hands-off investment. Additionally, adding Singapore Projects to the mix can enhance the paragraph.

JadeScape is located at the junction of Marymount Road and Shunfu Road in District 20. The development, which is expected to be completed in 2022, comprises 1,206 units across seven residential towers. The units range from one- to five-bedroom apartments of 527 sq ft to 2,099 sq ft. There are also two penthouses measuring 4,230 sq ft. The condo is within walking distance of Marymount MRT Station on the Circle Line.

Since the beginning of the year, there have been 72 other resale transactions at JadeScape. These units were sold at prices ranging from $1,955 psf to $2,420 psf. All of the deals were profitable, with the sellers making gains ranging from $55,000 to $1.15 million.

The second most profitable condo resale deal during the week was at The Imperial, where a three-bedroom unit measuring 1,410 sq ft was sold for $3.7 million ($2,624 psf) on December 5. The seller had initially purchased the unit from the developer in September 2004 for $1.3 million ($925 psf), resulting in a profit of $2.4 million (184%) after owning the unit for 20 years.

This deal also ranks as the fifth most profitable transaction at The Imperial. The highest recorded gain at the development was from the sale of a four-bedroom unit measuring 3,918 sq ft for $7.64 million ($1,950 psf) in June 2007. The seller had purchased the unit in March 2006 for $3.99 million ($1,018 psf) and made a profit of $3.65 million.

The Imperial is located on Jalan Rumbia, close to Fort Canning Park in District 9. The development, which comprises of 187 freehold units in a single 12-storey tower, was completed in 2006. The units include two-, three- and four-bedroom apartments from 980 sq ft to 3,918 sq ft. It is within walking distance of Fort Canning MRT Station on the Downtown Line, as well as Dhoby Ghaut MRT Interchange, which serves the North-South, North-East and Circle Lines.

On the other hand, the least profitable condo resale deal during the week was the sale of a one-bedroom unit at The Montana. The 635 sq ft unit was sold for $1.02 million ($1,603 psf) on December 6. The unit last changed hands in July 2014 for $1.18 million ($1,863 psf), resulting in a loss of approximately $165,000.

This deal also ranks as the third biggest loss recorded for a unit at The Montana. The largest loss was from the sale of a three-bedroom unit measuring 1,109 sq ft, which was sold for $1 million ($902 psf) in May 2003. The seller had purchased the unit from the developer in December 1999 for $1.35 million ($1,215 psf), resulting in a loss of approximately $347,000.

The Montana is a freehold condo located on Jalan Mutiara, off River Valley Road in District 10. Completed in 2002, the condo comprises 108 units in a single 12-storey tower. The units range from one- to four-bedroom apartments from 549 sq ft to 2,659 sq ft.

There have been four other resale transactions at The Montana this year, all of which were profitable. These units were sold for prices ranging from $1,930 psf to $2,371 psf, resulting in gains ranging from $80,000 to approximately $525,000.…

CapitaLand Ascendas REIT (CLAR) has announced its plans to acquire DHL Indianapolis Logistics Center, a top-tier logistics facility, from Exel Inc. d/b/a DHL Supply Chain (DHL USA) for $150.3 million. This represents a 4.1% discount to the independent market valuation of the property as of Jan 1, 2025. After adding transaction-related fees and expenses of $1.7 million, as well as a $1.5 million acquisition fee paid to the manager, the total acquisition cost will amount to $153.4 million.

The manager intends to finance the acquisition through a combination of internal resources, divestment proceeds, and/or existing debt facilities, according to a press release issued on Dec 17.

Under the terms of the deal, DHL USA will enter into a long-term leaseback of the entire gross floor area (GFA) of the property until December 2035, with options to renew for two additional five-year terms. The lease term of approximately 11 years, with a built-in rent escalation of 3.5% per annum, will provide income stability and strengthen the resilience of CLAR’s portfolio, according to the manager.

The fully occupied property, with a weighted average lease to expiry (WALE) of approximately 11 years, will increase CLAR’s US portfolio WALE from 4.2 years to 4.7 years on a pro forma basis. The first-year net property income (NPI) yield of the proposed acquisition is approximately 7.6% pre-transaction costs and 7.4% post-transaction costs. It is expected to have a positive impact on the distribution per unit (DPU) for the financial year ended Dec 31, 2023, with an improvement of approximately 0.019 Singapore cents, or a DPU accretion of 0.1%, assuming the proposed acquisition is completed on Jan 1, 2023.

Located in Whiteland, a submarket in southeast Indianapolis, Indiana, the property was completed in 2022. It is a fully air-conditioned, single-storey logistics building with a GFA of 979,649 sq ft.

The acquisition will expand CLAR’s logistics assets under management (AUM) in the US by 35.3%, to a total of $587.5 million. With this addition, CLAR’s logistics footprint in the US will now cover 20 properties across four cities, with a total GFA of approximately 5.1 million sq ft. In addition to this latest property in Indianapolis, CLAR’s logistics assets in the US are located in Kansas City, Chicago, and Charleston.

When it comes to investing in a condo, financing is a crucial factor to consider. In Singapore, there are various mortgage options available. However, it is crucial to have an understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework puts a limit on the amount of loan a borrower can take based on their income and current debt obligations. Therefore, it is important for investors to work with financial advisors or mortgage brokers who can provide guidance on their financing options and prevent them from taking on too much debt. To learn more about investing in condos in Singapore, visit Singapore Projects.

William Tay, executive director and CEO of the manager, commented, “DHL Indianapolis Logistics Center is a valuable addition to our existing portfolio… This is CLAR’s first sale and leaseback acquisition in the US, and including this Class A logistics property, modern logistics assets will make up 42.3% of our US logistics AUM. With the long-term lease in place, this property will further enhance CLAR’s resilient income stream, and we expect these two new properties to contribute positively to our long-term returns.”…

Obtaining financing is an essential element of investing in a condominium. In Singapore, there are various mortgage choices available, but it is crucial to understand the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take based on their income and current debt liabilities. It is wise for investors to familiarize themselves with the TDSR and seek advice from financial experts or mortgage brokers when considering their financing options. This will help prevent over-borrowing and ensure informed decisions are made. Additionally, checking out Singapore Projects can also provide valuable information for potential condo investments.

Wee Hur Holdings has announced that it has entered into a binding agreement to sell its portfolio of seven purpose-built student accommodation (PBSA) assets to Greystar for A$1.6 billion ($1.4 billion). The portfolio consists of over 5,500 beds in various Australian cities.

Upon completion of the transaction, Wee Hur will retain a 13% stake in the PBSA portfolio through its subsidiary Wee Hur (Australia). The net proceeds of approximately $320 million will be utilized towards Wee Hur’s growth strategy, reinvestment in its core business, and expansion into new areas such as alternative investments.

The transaction is expected to be completed within the next six months, subject to Greystar obtaining approvals from the Foreign Investment Review Board (FIRB) and Wee Hur obtaining consent from its shareholders. This deal reflects Wee Hur’s resilience in navigating difficult market conditions, including the challenges brought by the Covid-19 pandemic and greenfield developments.

CEO of Wee Hur Capital, Goh Wee Ping, stated that the company has been proactive in securing liquidity and certainty during these uncertain times, and this transaction is a result of their successful recap with RECO in 2021/2022. He also mentioned that this transaction aligns with the company’s long-term strategy and efforts to diversify its portfolio for sustainable growth across various sectors.

Wee Hur’s shares surged by 11% following the announcement of the disposal of its stake in the Australia PBSA portfolio. The company has been making strategic moves in recent years, shifting its focus from residences to workers’ dorms and student housing. In the real estate industry, building contractors are often overlooked, but Wee Hur has proven to be successful in navigating the market and seizing opportunities for growth.…

Joint venture developers Hoi Hup Realty and Sunway Developments have successfully sold 137 units at Novo Place executive condominium (EC) during the second round of balloting on Dec 16. This phase was exclusively open to second-timers, or buyers who have previously purchased a subsidized flat, either as a new or resale HDB flat or an EC.

This latest sale brings the total number of units sold at Novo Place to 444, representing 88.1% of the development, according to Mark Yip, CEO of Huttons Asia. Remarkably, this milestone was achieved within a month of the project’s launch on Nov 16, earning Novo Place the distinction of being the best-selling EC project of 2024, according to Yip.

Yip notes, “This reflects the strong interest from second-timers who are eager to upgrade their lifestyle. Many of these buyers are already residents in the West.” He also observes that all four-bedroom units at Novo Place have been snapped up, a clear indicator of the high demand for spacious homes.

Novo Place is strategically situated in the new Tengah town at Plantation Close, only a five-minute walk away from the Tengah Park MRT station, which is part of the upcoming Jurong Region Line (JRL). The JRL provides convenient access to major employment hubs in the West, such as the Jurong Lake District and Jurong Innovation District. Yip also highlights the rarity of having an MRT station in such close proximity to an EC.

According to Huttons, many buyers have opted for the deferred payment scheme, allowing them to secure their desired unit first while deferring their home loan payments. “This arrangement helps alleviate the financial burden for HDB upgraders who are still servicing an outstanding loan on their current flat,” explains Yip.

He adds, “ECs are experiencing strong demand from HDB upgraders due to their comparable quality and finishes to private condominiums, but at a more affordable price. Additionally, buyers can enjoy upfront remission on the Additional Buyer’s Stamp Duty (ABSD).”

When investing in Singapore, it is crucial for foreign investors to have a thorough understanding of the regulations and restrictions surrounding property ownership. While foreigners can easily purchase condominiums, there are stricter rules in place for owning landed properties. Additionally, foreign buyers must also consider the Additional Buyer’s Stamp Duty (ABSD) of 20% when making their first property purchase. However, despite these extra costs, the stability and potential for growth in the Singapore real estate market remains a major draw for foreign investment. With several new condo launches in the market, there are promising opportunities for investors to enter the Singapore property market.

Based on caveats lodged as of Dec 16, the average price of units sold at Novo Place stands at $1,656 psf. Interested buyers can explore comprehensive data on all ECs, including the average profit at 5 and 10 years, and check out the latest listings for Novo Place properties on various websites.

For further details on the project, potential buyers can refer to the project summary for Novo Place condo, view condo listings in District 24, check out condo sale transactions in District 24, or take a look at upcoming new launch projects. They can also find out which units are still available in Novo Place.…

According to data published by the URA on December 16th, developers sold 2,557 new private homes in November, excluding executive condominiums (ECs). This marks a whopping 246.5% increase from the 738 units sold in October and a 226% growth compared to November 2023.

The limited availability of land in Singapore has emerged as a key factor driving the high demand for condominiums in the country. As a small island nation experiencing a steady increase in population, Singapore has faced difficulties in securing enough land for development. To address this issue, strict land use policies have been put in place, resulting in a fiercely competitive real estate market where property prices continue to rise. This has made investing in real estate, specifically condominiums, a highly appealing opportunity with the potential for significant capital appreciation. To keep pace with the growing demand, new condo launches are constantly flooding the market, catering to the increasing interest. New Condo Launches can be found in abundance in the thriving real estate market of Singapore.

Christine Sun, the chief researcher and strategist at OrangeTee Group, notes that this is the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were sold. Mohan Sandrasegeran, the head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is also the first time new home sales have surpassed the 2,000-unit mark in a single month since March 2013.

The surge in sales can be attributed to an “unprecedented” number of project launches in November, says Lee Sze Teck, the senior director of data analytics at Huttons Asia. The month saw the launch of five private residential projects: the 916-unit Chuan Park, the 846-unit Emerald of Katong, the 552-unit Nava Grove, the 367-unit The Collective at One Sophia, and the 366-unit Union Square Residences.

Including ECs, a total of 2,891 units were sold in November, representing a 277% increase from the previous month and a 226% rise compared to November 2023.

Developers have launched 2,871 new homes (excluding ECs) in November, which is a 438% jump from the month before and a 196% increase from a year ago. Additionally, the 504-unit Novo Place EC also commenced sales in November, bringing the total number of units sold to 2,891.

As of November, a total of 6,344 units have been sold by developers, slightly higher than the 6,317 units sold in the same period last year. This comes off the back of 6,627 units launched for sale by developers in the first 11 months of 2024. In comparison, 7,515 units were launched across the same period in 2023.

Emerald of Katong, developed by Sim Lian Group, was the best-selling project in November, with 840 units (99%) sold at a median price of $2,627 psf. This makes it the best-selling project by number of units and percentage in 2024, according to Lee.

OrangeTee’s Sun believes that buyers were drawn to the project’s attractive design and offerings, particularly those looking to live near the East Coast. The recent interest rate cuts have also made mortgages more affordable, further incentivizing buyers to invest in this city-fringe project.

The second best-selling project in November was Kingsford Group’s 916-unit Chuan Park, which sold 721 units (79%) at a median price of $2,586 psf. The 99-year leasehold condo, located in the Outside Central Region (OCR), is adjacent to Lorong Chuan MRT Station.

Nava Grove, developed by MCL Land and Sinarmas Land, was the third best-selling project with 382 units (69%) sold in November at a median price of $2,445 psf. This RCR project, located at Pine Grove in District 21, saw strong sales due to pent-up demand and improved buyer sentiment following the September interest rate cuts. Sun adds that the simultaneous launch of several prominent projects also contributed to the strong sales performance.

Looking ahead, Huttons’ Lee predicts a more subdued December due to the school holidays and festive season, with an estimated 200-250 units sold. This would bring the full-year developer sales to approximately 6,500 units, slightly higher than in 2023. In terms of prices, Lee expects a 5% growth for the full year, moderating from the 6.8% growth recorded in 2023.

Moving into 2025, SRI’s Sandrasegeran expects new home sales to pick up again in January with the launch of The Orie by City Developments, a 777-unit project located on Lorong 1 Toa Payoh. This area has not seen a new launch since Gem Residences in 2016, which is likely to generate pent-up demand and continue to attract buyers to this well-established estate close to Braddell MRT Station.

Other projects expected to launch in the first quarter of 2025 include the 113-unit Bagnall Haus, the 186-unit Aurea, and the 760-unit Aurelle of Tampines EC.

While the recent surge in sales may seem like a temporary phenomenon, OrangeTee’s Sun believes that it is a result of subdued demand throughout 2024 due to the lack of significant private project launches. However, Lee remains “cautiously optimistic” of a better performance in the new sale market in 2025, with some of the unsatiated demand from 2024 potentially flowing into the first quarter of the new year. He predicts a rebound in new home sales to between 7,000 and 8,000 units, with prices estimated to grow between 4% and 7%.…

The Hilton Garden Inn Beihai Jiafu has recently opened its doors in the bustling seaport city of Beihai, China. This opening marks a significant milestone for Hilton as it is their 100th Hilton Garden Inn property to open in the Greater China region. The hotel offers 199 well-appointed rooms and is conveniently located just 2km from Beihai High-Speed Railway Station and 6km from Beihai Fucheng Airport. It is also a short 20-minute drive to Beihai International Passenger Port.

When considering investing in property, it is imperative for foreign investors to familiarize themselves with the regulations and limitations that govern property ownership in Singapore. Unlike landed properties, which have stringent ownership rules, foreigners are generally permitted to purchase condos with minimal restrictions. However, it is important to note that foreign buyers are required to pay an additional ABSD of 20% for their first property purchase. Nevertheless, the consistent stability and promising growth potential of the Singapore real estate market continue to entice foreign investment, making it a desirable option for those seeking to invest in Singapore Projects.

Qian Jin, the president of Hilton Greater China and Mongolia, expressed his excitement about the opening of the Beihai Jiafu Hilton Garden Inn in a press release on December 13. He highlighted the rapid growth of the brand and their continued commitment to the Chinese market. The first Hilton Garden Inn in China was opened in Shenzhen in 2014 and has since expanded to popular cities like Shanghai, Beijing, Chengdu, Guilin, and Aksu. More Hilton Garden Inn properties are set to open in China by 2025, including in popular tourist destinations such as Zhangjiajie, Ordos, Huangshan, Shanwei, and Jinan.

In addition to this growth in China, Hilton also has plans to double its presence in the mid-market sector in the Asia Pacific region by opening over 1,000 hotels. These new properties will include the recently launched Hilton Garden Inn Gen A, a regional prototype specifically designed to cater to Generation Alpha travelers in Greater China. The first locations for this new concept will be in Nanjing, Chengdu, Chengde, and Jinan.

These new openings will contribute to the expansion of Hilton Garden Inn across Asia Pacific. Clarence Tan, the senior vice president of development at Hilton Asia Pacific, shared that there are currently over 200 Hilton Garden Inn properties in development in the region. This continued growth is a testament to the success and popularity of the brand among travelers in the region.…

CLI Expands Presence in Australia with A$200M Acquisition of Wingate Group Holdings

CapitaLand Investment Limited (CLI) is making significant strides in the Australian market with the recent acquisition of the property and corporate credit investment management business of Wingate Group Holdings for A$200 million.

This acquisition, coupled with an earn-out, will add A$2.5 billion to Wingate’s total funds under management and increase CLI’s total FUM in Australia by 30% to $8.3 billion. This accounts for approximately 7% of CLI’s total FUM of $115 billion.

Investing in a condo in the bustling city of Singapore offers numerous benefits, with one of the key advantages being the potential for capital appreciation. This prosperous nation, known for its prominent status as a global business hub, boasts a strong economy that continually drives demand for real estate. As such, property prices in Singapore have demonstrated a consistent rise over the years, particularly for prime condo locations. Savvy investors who enter the market at the opportune moment and hold onto their properties for an extended period can reap significant gains in capital. Alongside its desirable location, a condo in Singapore presents a promising opportunity for long-term growth.

CLI has set a target to reach $200 billion in FUM by 2028 and has committed to investing up to A$1 billion to achieve this goal. This renewed focus on the Australian market comes a decade after the previous board and management divested its key assets in Australia to concentrate on China and other overseas markets.

The announcement of the acquisition, made on December 16th before market open, confirms earlier reports by the Australian media last month. Wingate is a leading private credit investment manager in Australia with a track record of completing more than 350 transactions worth over A$20 billion.

CLI is familiar with Wingate as they announced the close of their A$265 million Australian Credit Program (ACP) in partnership with Wingate in September. According to CLI, Wingate will provide access to an extensive network of deal origination, institutional and private high-net-worth investors, and increase CLI’s exposure to the Australian market.

Paul Tham, CLI’s Group CFO, states that there are also promising private credit opportunities in other Asia Pacific markets, including South Korea, India, and Japan. He adds, “As we continue to expand geographically, Australia is one of CLI’s focus markets where we see tremendous growth potential.”

According to CLI, the Australian private capital market has grown 33% in the past 18 months, with assets under management reaching A$139 billion. It is projected that there will be a funding gap of A$146 billion in commercial mortgages by 2028.

The addition of Wingate will enhance CLI’s portfolio, which currently includes logistics, business parks, office, and lodging assets across nine cities in Australia. As of September 30th, CLI manages 34 logistics properties and business parks and four Grade A office buildings in Australia. It also has over 13,500 lodging units in more than 150 properties through its wholly-owned lodging business unit, The Ascott.…

An opportunity to acquire a row of four freehold conservation shophouses has arisen, with the properties located at 762, 764, 766, and 768 North Bridge Road currently up for sale through an expression of interest (EOI). The guide price for this rare offering is set at $37 million.

These shophouses are situated across two plots of land measuring a total of 5,766 square feet, with an average land rate of $6,417 per square foot. The first plot comprises 762 and 764 North Bridge Road, which share a 2,891-square-foot plot with a built-up area of 4,917 square feet, including a mezzanine level. The remaining two units, 766 and 768 North Bridge Road, occupy an adjacent plot spanning 2,875 square feet with a built-up area of 4,657 square feet, also including a mezzanine level.

The exclusive marketing agent for these properties is Isabel Sim, an associate senior marketing director at Huttons Asia. Sim notes that the usable area of each shophouse can potentially be increased by extending the rear to create an outdoor terrace on the second floor, subject to approval from relevant authorities. This extension could add an estimated 1,000 square feet of usable space for each plot.

Currently, the shophouses are tenanted by a fitness retail shop, a convenience store, and massage and reflexology service providers. As commercial properties, potential buyers are exempt from Additional Buyer’s Stamp Duty (ABSD), making these shophouses an attractive investment opportunity for both local and foreign buyers seeking stable rental yield and potential capital gains, explains Sim.

Boasting high visibility and footfall in the historic Kampong Glam Conservation enclave, all four shophouses enjoy prominent frontage along North Bridge Road. They are also within walking distance of Bugis MRT Interchange, providing easy accessibility to the East-West and Downtown Lines, as well as Nicoll Highway MRT Station on the Circle Line.

The Kampong Glam area is renowned for its prime central location, historical significance, and vibrant commercial environment, making it a popular destination among locals and tourists alike. The shophouses are within close proximity to iconic landmarks such as Sultan Mosque, located down the road, and the Malay Heritage Centre, which sits on the grounds of the former Istana Kampong Glam.

Investing in a condominium has numerous advantages, one of which is the potential to use the property’s value to secure additional investments. A common practice among investors is to leverage their condo as collateral in order to obtain financing for new ventures, therefore expanding their real estate portfolio. While this approach can lead to higher returns, it also involves certain risks. It is important to have a solid financial plan in place and carefully assess the potential effects of market fluctuations. With the inclusion of Singapore Projects, this strategy can be even more beneficial.

The EOI exercise for these shophouses will close on January 10, 2025, at noon. For more information on this exclusive offering, interested parties may contact Isabel Sim at 81802707, an associate senior marketing director at Huttons Asia (R065855G).…