Author: PropInvestSG

Property news round up 17 June 2018

EL Development has signed a memorandum of understanding with Accor for the French hotel chain to manage a new hotel that the Singapore property developer will build in Hill Street. Accor will manage the hotel under its Pullman brand – this will be the first Pullman in Singapore, EL Development managing director Lim Yew Soon told The Business Times in a recent interview. “Singapore is one of the major cities left in Asia where Accor has yet to have a Pullman… when Singapore is its Asia-Pacific headquarters,” he noted. MALAYSIA will investigate the Battersea Power Station deal and other...

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SRX: Non-landed private rents and HDB rents increase 0.2% in May 2018

According to SRX, the rental index for non-landed private residential units rose 0.2% in May 2018 compared to April 2018. In terms of rental volume of private non-landed residential units, overall numbers have fallen to 4,674 in May 2018 compared to the previous month (4,831) and the same month last year (4,929). The average number private non-landed residential leases inked over the last 12 months is approximately 4,880 per month. Also read: APAC Realty a good stock to invest in? The highest number of rental deals continue to be inked in the Outside Central Region (1,610 in May 2018),...

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Review of APAC Realty Limited

APAC Realty is one of the leading players in the real estate brokerage industry in Asia. APAC Realty operates three main business segments – the real estate brokerage services; franchise agreements; and training, valuation and other ancillary services. In this post, I share more about the business model, recent developments related to the company and my views on the stock. Basic information APAC Realty traded at S$0.89 as of 8 June 2018. The peak was at S$1.26 on 9 Mar 2018 and was priced at S$0.78 during IPO on 29 Sept 2017. The present share price is 14% higher than...

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Property news round up 10 June 2018

TWO property launches in Serangoon over the weekend garnered good response, testament to the still-improving sentiments in the residential property market, despite the fact that both projects were located just couple of hundred metres apart from each other. Affinity at Serangoon by Oxley Holdings, to be constructed on the former HUDC estate Serangoon Ville site, sold 112 units out of the 300 that were launched in its phase one. Oxley’s director of marketing and sales Eugene Lim said that the transacted units were spread evenly across various configurations – from one-bedders to four-bedders-plus-study apartments. AFFINITY at Serangoon, a development...

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Airbnb cancellations in Japan due to Minpaku law

This week, the Japanese government removed at least 62,000 homes, apartments and rooms from Airbnb’s inventory, reported Japan’s Nikkei newspaper. This is in response to the country’s new home share – or minpaku – law that comes into effect on June 15. The official statement from Airbnb, taken from Conde Nast, is that, “Any reservation scheduled for guest arrival between June 15 and June 19 at a listing in Japan that does not currently have a license has been cancelled”. As a result of the removal of listings, this will leave visitors with fewer options for lodging over the...

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Comparison between Frasers group of REITs

Frasers Property is a property company that has businesses in Singapore, Australia, Southeast Asia, China and Europe. Their hospitality footprint spans over 80 cities across Asia Pacific, Europe, Middle East and North Africa. Frasers is also a to four REITs, namely Frasers Centrepoint Trust (FCT), Frasers Commercial Trust (FCOT), Frasers Hospitality Trust (FHG) and Frasers Logistics & Industrial Trust. FCT invests in quality income-producing retail properties in Singapore and overseas, and to achieve long-term growth in net asset value. FCOT invests mainly in commercial real estate properties. FHT is a global hotel and serviced residence trust. Also read: Good...

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Property news round up 3 June 2018

THE Ministry of Transport (MOT) issued a statement late on Monday to say that Singapore has yet to receive official word from Malaysia regarding the supposed cancellation of the Kuala Lumpur-Singapore high-speed rail (HSR). The MOT, indicating that it would wait for official word from Malaysia before proceeding, said in its statement: “We had agreed to proceed with the HSR project based on mutual benefits and obligations set out in the HSR bilateral agreement.” Meanwhile, property analysts have said that although the cancellation of the project – which is to have its terminus in Jurong – will put a...

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Property news round up 27 May 2018

Managers of Reits with overseas assets address investors’ concerns at symposium WHILE real estate investment trusts (Reits) with overseas assets present additional risks, they also provide higher growth opportunities, and managements take several measures to allay investors’ concerns, said experts at a panel discussion at the Reits Symposium 2018. The annual one-day event, held last Saturday at the Suntec Singapore Convention & Exhibition Centre, is in its fourth edition. It was jointly organised by Reit Association of Singapore (Reitas) and ShareInvestor, a subsidiary of Singapore Press Holdings. Goh Toh Sim, chief executive officer of EC World Reit manager, a...

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Property news round up 20 May 2018

November launch for first batch of HDB flats in new Tengah estate THE first batch of 1,500 Housing Board flats in the new Tengah estate will be launched in November, Minister for National Development Lawrence Wong announced on Sunday. He shared the details in a post on his blog, Housing Matters, where he said that the flats will comprise “a good mix across different flat-types”. Over the next few years, there will be a steady stream of flats in Tengah, which is Singapore’s first new town in more than 20 years since Punggol, he added. When completed, Tengah will...

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CapitaLand commercial REIT acquires Frankfurt property in 343m euro acquisition

CapitaLand Commercial Trust (CCT) made its maiden acquisition outside of Singapore with the purchase of a majority stake in a Frankfurt property known as Gallileo. Situated in the central business district (CBD) of Frankfurt, Gallileo will be 94.9% owned by CCT, with CapitaLand holding the remaining 5.1%. The area where the building is located is known as Banking District. Gallileo is a freehold commercial Grade A property that is presently 100% occupied. At an agreed property value of Euro 356.0m, the price is 1.4% lower than the independent valuation of Euro 360.9m, calculated by Cushman & Wakefield as at...

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Property news round up 13 May 2018

THE five largest office real estate investment trusts (Reits) on the local bourse with assets in Singapore have brought home an average negative total return of 3.2 per cent year-to-date as of May 3. This brings their one-year and three-year total returns to 14.3 per cent and 21.8 per cent respectively. They maintain a 5.6 per cent average distribution yield. The four that have reported their results for the first three months of 2018 averaged a distribution per unit (DPU) of 2.09 Singapore cents, down an average 4.5 per cent from the year-ago period. STRAITS Real Estate (SRE), a...

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Keppel DC REIT and Kingsland Data Centre acquisition

Keppel DC REIT recently announced their intention to purchase a 99% interest in Kingsland Data Centre (DC) for S$295.1 million. The deal is expected to be 100% funded by equity, and is both DPU and NAV accretive, indicating that the REIT’s share price and deal consideration amount is favourable to the REIT. At a 6% discount to valuation of S$316.8m, the valuation cap rate is 8.25% and in line with rates for the REIT’s other data centres. What is Kingsland Data Centre? Kingsland Data Centre is a five-storey, purpose built, carrier-neutral colocation data centre. It was completed in 2015...

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Le Quest Condo at Bukit Batok being launched for sale once more

Le Quest condo at Bukit Batok West Ave 6 is being launched once again by developer Qingjian. Stopped for sale since last Aug 2017 after all the launched units were snapped up, this is the chance for buyers to enter the property market before prices rise even further. In Aug 2017, 280 units were sold at an average price of S$1,280 psf. Many of those who turned up were hopeful of getting a project in the Western part of Singapore and to ride on the potential of the High Speed Rail and Jurong Lake District story. The take up...

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Good performance all round by Mapletree REITs

The Mapletree family of REITs reported their year to 31 Mar 2018 results which were generally positive. The following sums up the key points from the results presentations for each REIT. Mapletree Logistics Trust (MLT) MLT’s fourth quarter distribution per unit rose by 4%, on the back of organic growth, contributions from a newly-completed redevelopment in Singapore, as well as acquisitions. For the three months ended March 31, gross revenue rose 11% from a year earlier to S$107.5m. Net property income rose 14% to S$91.3m. Overall growth was partially offset by the absence of contributions from four divestments and...

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SPH REIT to acquire rail mall for S$63.2m

The Rail Mall, located along Upper Bukit Timah Road, will be acquired by SPH REIT for a total consideration ofr S$63.2m. The acquisition will be funded by a combination of debt and internal resources, according to the REIT manager. Comprising 43 shop units, 95 carpark lots, the Rail Mall has a total Net Lettable Area (NLA) of about 50,000 sqft. With the lease expiring in 2046, there is 28 years left before the lease runs out. According to SPH REIT, the acquisition is in line with the REIT’s strategy of acquiring retail properties that would complement its assets, the...

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