Month: March 2025

HPL, a well-known player in the property and hotel industry, is expanding its global presence with the recent acquisition of InterContinental Auckland at a cost of NZ$180 million ($138.5 million). This marks HPL’s first asset in New Zealand and its second InterContinental hotel acquisition, following the InterContinental Maldives Maamunagau Resort.

This off-market deal, advised by JLL’s Asia Pacific Hotels & Hospitality Group, is the largest single hotel asset sale ever in New Zealand. The sale was carried out by the country’s Precinct Properties. HPL’s purchase of the Auckland hotel is preceded by the launch of The Boathouse Tioman, a collection of 31 bungalows, and The Four Seasons Hotel Osaka, a 176-room property, in Malaysia and Japan respectively, last year.

HPL has expressed its intention to expand its portfolio of luxury hospitality properties in key markets across the Asia Pacific region, driven by its experienced hospitality management team and strong partnerships with operators such as IHG Hotels & Resorts.

Chairman of HPL Hotels and Resorts, Stephen Lau, describes the proposed acquisition of InterContinental Auckland as a rare opportunity to acquire a premium asset in New Zealand. The hotel is conveniently situated near the bustling NZ$1 billion Commercial Bay lifestyle precinct, which opened in January 2024. Guests can enjoy magnificent views of the Waitematā Harbour from the hotel rooms, according to Lau.

Although the existing hotel has 139 rooms, it has the potential to expand to 190 rooms by repurposing its current office space, to meet the growing demand, if necessary.

Securing financing is a crucial element when it comes to investing in a condo. In Singapore, there are various mortgage options available, but it is vital to have a thorough understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework restricts the amount of loan an individual can take based on their income and current debt obligations. Having a grasp of TDSR and consulting with financial advisors or mortgage brokers can assist investors in making well-informed decisions about their financing options and avoiding excessive borrowing. Additionally, keeping an eye on New Condo Launches can provide valuable insights into potential investment opportunities.…

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Singapore’s cityscape is characterized by sleek high-rise structures and state-of-the-art facilities. In particular, condos are a common sight in desirable locations, offering a fusion of opulence and practicality that appeals to both locals and foreigners. These modern residences are complete with a plethora of conveniences, including swimming pools, fitness centers, and security services, elevating the standard of living for residents and making them an alluring choice for potential tenants and buyers. Furthermore, for investors, these sought-after amenities translate into attractive rental returns and appreciate property values over time. With the inclusion of Singapore Condo, it’s clear that these upscale homes are a lucrative and desirable investment in Singapore’s real estate market.

The Asia Pacific (Apac) region saw a total of US$83.2 billion ($112 billion) in institutional investments in real estate in the second half of 2024, up 6% compared to the previous year, according to a recent study by Colliers. This brings the total investment for the entire year to US$155.9 billion, representing an increase of 12% year-on-year. The nine key markets covered in the report are Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

The growth in investments shows the resilience of the Apac real estate market and points towards a solid 2025, according to Chris Pilgrim, the Managing Director of Global Capital Markets, Asia Pacific at Colliers. He further adds that domestic investors have been the driving force behind the growth in key markets like South Korea, Taiwan, and New Zealand, with over 80% of real estate inflows coming from local investors in the second half of 2024.

The office sector was the largest contributor to the Apac investment volume, making up US$26.5 billion (32%) of the total for 2H2024. For the entire year, office investments reached US$51.4 billion, growing by 14% year-on-year. The industrial and logistics sector was the second largest contributor, with US$22.6 billion in investments in 2H2024, accounting for 27% of the total. This brings the total investments in this sector for the whole of 2024 to US$39.4 billion, showing an increase of 29% compared to the previous year.

In the retail sector, there was a notable rebound with US$15 billion in investments in 2H2024, driven by significant deals in Australia and South Korea. The total retail investments for 2024 were US$26.1 billion, representing a growth of 27% year-on-year.

Pilgrim predicts that domestic investors will continue to dominate most markets in 2025, while offshore investments are expected to rise due to improving investor confidence and attractive valuations. He also believes that in addition to the strong investments in the office and industrial segments, the retail, hospitality, and alternative asset classes will gain traction as investors capitalize on the recovery momentum and evolving consumer trends in 2025. With the region’s economic growth remaining buoyant and continued policy support, Apac’s real estate market is well-positioned for sustained investment activity in the coming year.…

When purchasing a condominium, it is crucial to also take into account the maintenance and management of the property. Condos usually have maintenance fees that cover the maintenance of shared spaces and amenities. Although these fees may increase the overall cost of owning the property, they also guarantee that it stays in good condition and maintains its value. Hiring a property management company can assist investors in dealing with the everyday management of their condos, making it a less hands-on investment. Consider checking out New Condo Launches for more options.

Singapore’s private equity real estate firm SC Capital Partners Group has recently announced the sale of its student accommodation asset in Sydney, Australia. According to a press release on March 3, the group has sold the asset, situated on Anzac Parade and Lorne Avenue in Kensington, at a price significantly higher than its initial acquisition price and at a 19% premium to its current book value. The buyer is none other than the esteemed University of New South Wales (UNSW) in Sydney.

The purchase of the property by SC Capital Partners took place in 2016, with the group reportedly paying a whopping A$57 million at the time. The purpose-built student accommodation, spanning an area of 85,035 square feet, boasts 233 beds and a commercial podium on its ground floor. Its strategic location within 600 meters of UNSW Kensington Campus makes it a prime pick for students. Currently, the student accommodation component is fully leased to UNSW, with a fresh 20-year master lease signed in 2019.…

SINGAPORE – Lee Chee Koon, group CEO of CapitaLand Investment Limited (CLI), has been recognised as the ‘Industry Figure of the Year’ for Asia Pacific at the 2024 PERE Global Awards. Hosted by the London-based publication covering private equity real estate markets, the annual awards honour influential firms, individuals and standout deals from the past year. CLI also received the runner-up award for ‘Firm of the Year’ in Asia Pacific.

When it comes to investing in property in Singapore, it is crucial for foreign investors to familiarize themselves with the regulations and limitations surrounding ownership. Unlike landed properties, which have more stringent ownership rules, foreigners are generally able to purchase condos without much restriction. However, they must still adhere to the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their initial property purchase. Despite the added expenses, the consistently stable and promising growth potential of the Singapore real estate market remains a major draw for foreign buyers. With this in mind, it is no surprise that foreign investors continue to see the value in investing in condos in Singapore.

The winners were selected by a panel of PERE journalists, a change from previous editions where readers voted on shortlisted submissions to determine the winners. According to a press release issued by CLI on March 4, the award for CEO Lee recognises “his role in driving CLI’s transformational growth and his significant impact on the private real estate industry in the Asia Pacific region.”

Lee, who took over as CapitaLand’s group CEO in September 2018, has made strategic moves under his leadership such as the acquisition of Ascendas-Singbridge in 2019 and the 2021 restructuring of CapitaLand Group, which saw the listing of CLI and the privatisation of its real estate development arm, CapitaLand Development. In 2024, CLI also invested in real estate investment manager SC Capital Partners Group and acquired Wingate Group Holdings’ property and corporate credit investment management business. These moves have helped propel the company forward, with a goal to manage $200 billion in funds by 2028.

CLI’s success and recognition at the PERE Global Awards showcase Lee’s exceptional leadership and vision for the company. His strategic decisions have not only driven growth but also made a significant impact on the private real estate industry in the Asia Pacific region. With Lee at the helm, CLI is on track to achieve its ambitious goals and solidify its position as a leader in the private equity real estate market.…

The stock price of City Developments (CDL) has taken a significant hit following an internal dispute that has escalated to the courts. The stock dropped by 28 cents or 5.47% upon its resumption of trading today. The company’s shares were halted on Feb 26 and a results briefing was abruptly cancelled. Soon after, news of a fallout between CDL’s executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, sent shockwaves through the Singapore business community.

CDL has released a statement addressing the situation on March 3, stating that the company will not comment on the validity of the allegations made as it is currently the subject of an ongoing court proceeding. The company also reassured shareholders that its business operations remain fully functional and unaffected and that it is still business as usual for CDL. Sherman Kwek also remains the Group CEO until there is a Board resolution to change company leadership.

As a result of this boardroom and family dispute, analysts have downgraded their calls and lowered their target prices for CDL. Adrian Loh from UOB Kay Hian downgraded the stock from “buy” to “hold” and stated that the company’s FY2024 numbers fell below both his and consensus’ estimates. However, this was overshadowed by the news of the public leadership tussle, making it difficult for the stock to perform. Loh’s new target price of $4.60 is based on 2 standard deviations below its 5-year average P/B of 0.72 times.

Derek Tan and Tabitha Foo from DBS Group Research see some silver lining in the situation, stating that while it may dampen investor sentiment, CDL’s fundamentals remain intact as key management continues to run the company. They also point out the attractive valuation of the stock at 0.5 times P/B and 0.3 times P/RNAV, which is below the lows seen during the Global Financial Crisis. They believe that with the resolution of the board dispute, there will be a renewed focus on driving shareholder returns and profitability, leading to a gradual recovery in the share price. As a result, they have maintained their “buy” call but reduced their target price from $10.50 to $6.70 based on a 60% discount to RNAV.

When making the decision to invest in a condo, it is crucial to carefully consider the maintenance and management aspects of the property. Typically, condos come with maintenance fees that cover the upkeep of shared areas and amenities. While these fees may increase the overall cost of owning a condo, they also guarantee that the property remains well-maintained and retains its value. To make the investment even more passive, investors can opt to utilize the services of a property management company to handle the day-to-day management of their Condo. This partner can assist in ensuring the Condo continues to be a profitable investment.

OCBC Investment Research also maintains their “buy” call but with a reduced fair value of $6.02 compared to their previous valuation of $6.57. They believe that uncertainties over CDL’s outlook and potential overhang on its share price will persist until the matter is resolved. Similarly, JP Morgan analysts Mervin Song and Terence M Khi describe the situation as a “dynastic discord” that has resulted from years of frustration and underperformance among certain members of the extended Kwek family. They hope for a positive resolution and family reconciliation in the future but have reduced their target price from $6.05 to $4.85, based on a 60% discount to their RNAV estimate of $12.10 per share.

Brandon Lee from Citi Research believes that the potential impact of this episode is hard to quantify but expects uncertainty regarding the board and company leadership to be a short-term share price overhang. However, Lee also notes that CDL is significantly under-owned by investors, making any positive resolution a major catalyst for the stock in the long term. He has a “buy” call and a $9.51 target price, based on his view that CDL currently trades at less than a third of its book value.

In conclusion, the recent events at CDL have caused a significant reduction in analysts’ target prices for the stock. However, many analysts still believe in CDL’s strong fundamentals and see potential for a recovery in the share price with the resolution of the boardroom dispute.…

Investing in a condo in Singapore has become a popular choice for both local and international investors. This is mainly because of the country’s strong economy, stable political situation, and exceptional quality of life. The Singapore real estate market offers a variety of investment options, but condos are particularly attractive due to their conveniences, amenities, and potential for profitable returns. In this Condo Investing 101 guide, we will explore the benefits, important considerations, and necessary steps for investing in a condo in Singapore. If you are looking to invest in a condo, this is the right place to start.

The statement below is a summarization of an announcement made by Elite UK REIT regarding the divestment of Crown Buildings, Caerphilly at Claude Road, Caerphilly, for GBP710,000 ($1.2 million). The property was sold at a premium of 18% by the trustee, Perpetual (Asia) Limited. The independent valuation conducted by CBRE valued the vacant property at GBP600,000 at end-2024. Crown Buildings, Caerphilly, located in Wales, was valued at GBP530,000 at the end of 2023. The net proceeds from the sale will go towards repaying Elite UK REIT’s outstanding loans. The property has a gross floor area of 20,712 sq ft. The successful GBP28 million preferential offering in January 2024 resulted in a decrease in leverage and net gearing ratios for Elite UK REIT. The announcement also states that there is no debt maturing in 2025 and 2026, with refinancing only due in 2027.…