Month: March 2025

In the second half of 2024, institutional investments in Asia Pacific’s (Apac) real estate market reached a total of US$83.2 billion ($112 billion), representing a 6% increase year-on-year, according to research conducted by Colliers. This brings the full-year investments for the region to a total of US$155.9 billion in 2024, showing a 12% rise compared to the previous year. The data covers the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

The considerable growth in investments highlights the resilience of the Apac real estate market and sets the stage for a strong 2025, according to Chris Pilgrim, Colliers’ managing director of global capital markets in Asia Pacific. Pilgrim also notes that domestic investors have played a significant role in driving growth in markets such as South Korea, Taiwan, and New Zealand, with local investors accounting for over 80% of real estate inflows in these countries during the second half of 2024.

The office sector was the largest contributor to the Apac investment volume, accounting for US$26.5 billion (32%) of the total in the second half of 2024. For the entire year, office investments amounted to US$51.4 billion, showing a 14% increase year-on-year. The industrial and logistics sector was the second most significant contributor, attracting US$22.6 billion in investments in the second half of 2024, representing 27% of the total. This brings the total investments in this sector to US$39.4 billion for the whole of 2024, showing a 29% increase year-on-year. The retail sector also experienced a significant rebound in the second half of 2024, recording US$15 billion in investments, driven by substantial deals in Australia and South Korea. For the whole of 2024, retail investments amounted to US$26.1 billion, showing a 27% increase compared to the previous year.

Investing in a condominium in Singapore has emerged as a top choice for both local and foreign investors. This can be attributed to the country’s strong economy, stable political climate and exceptional quality of life. The real estate market in Singapore presents a plethora of opportunities and condos, in particular, have gained popularity due to their convenience, top-notch amenities, and potential for significant returns. With many new condo launches happening, there is no shortage of options for those looking to make a savvy investment in Singapore. In this article, we will delve into the advantages, points to consider, and necessary steps to take when investing in a condo in Singapore.

Pilgrim believes that domestic capital will remain the dominant force in most markets in 2025. However, offshore investments are expected to increase, driven by growing investor confidence and attractive valuations. While investments in the office and industrial segments are expected to remain strong, Pilgrim also predicts that retail, hospitality, and alternative asset classes will gain momentum as investors take advantage of recovery momentum and evolving consumer trends. He concludes by stating that with a positive economic outlook and continued policy support, the Apac real estate market is set for sustained investment activity in 2025.…

for $391 mil

CapitaLand Investment Limited (CLI) has once again made its mark on the real estate industry, as its Group CEO, Lee Chee Koon, has been awarded the prestigious title of ‘Industry Figure of the Year’ for Asia Pacific at the PERE Global Awards 2024. CLI has also received the runner-up award for ‘Firm of the Year’ in Asia Pacific.

Hosted by a renowned London-based publication covering private equity real estate markets, the annual PERE awards seek to recognize influential firms, individuals, and outstanding deals from the previous year. The winners of the 2024 awards were handpicked by a judging panel of PERE journalists, marking a departure from the previous format where PERE shortlisted submissions and then opened the voting process to its readers.

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When contemplating a condominium investment, it is crucial to evaluate the potential rental returns. Rental yield refers to the yearly rental income as a percentage of the property’s acquisition cost. In Singapore, the rental yields for condos can greatly differ, depending on factors like location, condition of the property, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer better rental yields. To gain a better understanding of the rental potential of a specific condo, it is advisable to conduct extensive market research and seek advice from real estate agents. Additionally, exploring Singapore Projects can provide valuable insights into the rental prospects of a property.

In a press release issued on March 4, CLI attributed CEO Lee’s award to his role in driving the company’s transformational growth and his significant impact on the private real estate industry in the Asia Pacific region. Since taking over as CapitaLand’s Group CEO in September 2018, Lee has spearheaded several key moves including the acquisition of Ascendas-Singbridge in 2019 and the recent restructuring of CapitaLand Group, which saw the listing of CLI and the privatization of its real estate development arm, CapitaLand Development.

In 2024, CLI continued to make strategic investments by acquiring real estate investment manager SC Capital Partners Group and buying out Wingate Group Holdings’ property and corporate credit investment management business. The company is on track to manage $200 billion in funds by 2028. CLI’s success in the industry is a testament to Lee’s exceptional leadership and vision for the company’s growth and development.…

SC Capital Partners Group, a Singapore-based private equity real estate firm, recently announced the sale of its student accommodation asset in Sydney, Australia. The property is situated on Anzac Parade and Lorne Avenue in Kensington.

In a press release on March 3, the group revealed that it sold the asset at a considerable premium to its initial acquisition price and a 19% premium to its current book value. The University of New South Wales (UNSW) in Sydney was the buyer.

When it comes to investing in property in Singapore, it is crucial for foreign investors to have a solid understanding of the country’s regulations and restrictions. Fortunately, purchasing condos in Singapore is relatively straightforward for foreigners, unlike owning landed properties, which has more stringent ownership rules. However, foreigners must comply with the Additional Buyer’s Stamp Duty (ABSD), which is currently set at 20% for their first property purchase. Despite this added expense, the Singapore real estate market’s stability and potential for growth continue to entice foreign investment. Interested investors can browse through Singapore Projects for more information and options.

The property was originally purchased by SC Capital Partners in 2016 for A$57 million. The purpose-built student accommodation spans 85,035 sq ft and features 233 beds, as well as a ground-floor commercial podium. Its proximity to the UNSW Kensington Campus, being within 600m, makes it an attractive option for students. The student accommodation is fully leased to UNSW, with a new 20-year master lease being signed in 2019.…

City Developments has been embroiled in an internal conflict between the executive chairman Kwek Leng Beng and his son, Group CEO Sherman Kwek. This has resulted in a significant dip in the company’s shares by 5.47% upon resumption of trading today.

Trading in the company’s shares had been put on hold since February 26th, when a results briefing was suddenly cancelled and news of the dispute between the father and son was made public. The company has released a statement saying that they will not be commenting on the validity of the allegations made, as they are currently the subject of ongoing court proceedings.

CDL has clarified that their business operations have not been affected by this issue and it is still running as usual. Sherman Kwek remains the Group CEO until a decision is made by the board to change the company’s leadership. However, analysts have downgraded their calls and lowered their target prices for CDL due to the ongoing tussle.

UOB Kay Hian’s Adrian Loh has downgraded the stock from “buy” to “hold” as the company’s financial results for FY2024 have fallen short of both his and consensus estimates. This news, coupled with the public dispute, has resulted in a negative impact on the company’s performance. Loh has reduced his target price from $7 to $4.60, which is based on CDL’s five-year average price-to-book (P/B) of 0.72 times.

DBS Group Research’s Derek Tan and Tabitha Foo have also lowered their target price for CDL from $10.50 to $6.70. They have, however, maintained their “buy” call as they believe that the fundamentals of the company remain strong and key management is still in charge. They also highlight that CDL is currently trading at an attractive valuation of 0.5 times P/B, which is below the lows seen during the Global Financial Crisis.

OCBC Investment Research has also maintained their “buy” call, but with a reduced fair value of $6.02, down from $6.57. They believe that the potential uncertainties surrounding CDL’s outlook and the ongoing dispute may have an impact on the company’s share price until the matter is resolved.

Investing in a condo comes with its own set of advantages, including the opportunity to leverage the property’s value to make further investments. In fact, many investors utilize their condos as collateral in order to secure additional financing for new ventures, allowing them to grow their real estate portfolio. This approach has the potential to greatly increase returns, but it also carries certain risks. As such, it is important to have a well-thought-out financial plan and carefully consider the potential impact of market fluctuations. Additionally, staying informed about new condo launches can provide valuable insights and opportunities for enhancing your investment strategy.

Citi Research’s Brandon Lee has a similar view and believes that the uncertainty may cause a short-term overhang on the company’s share price. However, he also notes that CDL is currently under-owned by investors, and any positive resolution could act as a major catalyst for the company’s share price in the long run.

JP Morgan analysts Mervin Song and Terence M Khi describe the internal conflict at CDL as a “dynastic discord” that has been building up for years. They hope for a positive resolution and a reconciliation between the family members, 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.…

Elite UK REIT has sold Crown Buildings, Caerphilly, a vacant property located in Wales for GBP710,000, which is a premium of 18% from its valuation at the end of 2024. The sale was conducted by the trustee of Elite UK REIT, Perpetual (Asia) Limited, and was announced in a filing on March 3. The property was previously valued at GBP600,000, based on an independent appraisal done by CBRE. In 2023, the property was valued at GBP530,000.

Singapore’s cityscape showcases a plethora of towering skyscrapers and state-of-the-art infrastructure. These condos, strategically located in sought-after areas, offer a harmonious mix of opulence and convenience that appeals to both locals and foreigners. One of their biggest draws is the wide array of amenities they offer, such as well-maintained swimming pools, fully-equipped gyms, and top-notch security services, all of which greatly improve the standard of living and make them highly desirable for potential renters and buyers alike. In turn, these sought-after features also translate into higher rental returns and appreciation in property value for investors over time.

The proceeds from the sale of Crown Buildings, Caerphilly will be used to pay off the outstanding loans of Elite UK REIT. According to Elite UK REIT’s official website, the property has a total gross floor area of 20,712 square feet. This sale was possible due to the successful preferential offering of GBP28 million in January of 2024, which helped Elite UK REIT lower its leverage ratio from 50% to 43.4% by the end of 2024. Similarly, its net gearing ratio also decreased from 47.5% to 42.5%. The company does not have any debt maturing in 2025 or 2026, and the debt will only be due for refinancing in 2027.…