Author: PropInvestSG

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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Property news round up 6 May 2018

AIMING to cash in on the upturn in the Singapore office market, Alpha Investment Partners and City Developments Ltd (CDL) are understood to have put Manulife Centre in Bras Basah Road, and 7 & 9 Tampines Grande up for sale through separate expressions of interest exercises. The total price tag of the two assets exceeds S$1 billion, The Business Times understands. The vendors are looking at prices in excess of S$550 million for Manulife Centre, which works to about S$2,270 per square foot based on the 11-storey commercial building’s net lettable area (NLA) of about 242,000 sq ft. The...

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Property news round up 29 Apr 2018

OXLEY Holdings is expected to clinch Pei Fu Industrial Building off Upper Paya Lebar Road in what could be the first collective sale of an industrial property to be awarded this year. The Business Times understands that the mainboard-listed group will be paying S$76.25 million for the freehold property in New Industrial Road. The expected transaction price, which surpasses the reserve price of S$75 million, works out to S$489 per square foot per plot ratio (psf ppr), based on the proposed gross floor area (GFA) of 155,864 square feet (sq ft). ASCENDAS Reit on Monday reported an increase in...

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Divergence in price and rental trends according to SRX

According to SRX’s price index, there appears to be a divergence between the price and rental charts in Singapore. Prices are climbing strongly while rentals seem to be wallowing in mediocrity. A quick look at the price chart for non-landed sales transactions show a very sharp uptick as of Mar 2018. The last time such a strong uptick was seen in the 1998 and 2008 recovery from the respective financial crises. On the other hand, rentals of non-landed private properties have been terrible. It has been on a downtrend since Jan 2013, only plateauing over the last year or...

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Property news round up 22 Apr 2018

MARCH private home sales dived almost 60 per cent from a year ago – but industry players are unfazed, citing a dearth of new launches as the main cause. Sentiment remains buoyant and, with the slew of launches rolled out this month and more to come, buyers are expected to be drawn out; developers and their marketing agents will be kept busy. There were only two new launches last month – The Tapestry in Tampines and 8 Hullet off Cairnhill Road. Developer City Developments’ project, The Tapestry – the bigger of the two projects – moved 329 units in...

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