Author: PropInvestSG

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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Comparison of REITs with overseas assets vs REITs that focus on Singapore

REITs with overseas assets has become increasingly popular and have proliferated on the SGX in recent years. These REITs span across all sub-sectors from classes from office, retail, industrial to even data centres. As an investor, what are the things to look out for before investing in REITs with overseas assets vs those that focus on Singapore only? We won’t mention REITs that have a mix of Singapore and overseas assets, such as Suntec REIT, because they are more difficult to analyze compared to those solely with foreign or Singapore assets. This difficulty arises because the local/foreign asset mix...

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Keppel KBS US REIT delivers distribution 2.32 US cents

Keppel KBS-US REIT posted their inaugural distribution of 2.32 US cents for the period since listing (9 Nov 2017 to 31 Mar 2018), beating the IPO forecast of 2.31 US cents marginally. According to the REIT manager, the stable portfolio performance and one-off compensation income resulted in net property income of US$22.3m, beating IPO forecast by 5.2%. The one-off compensation was from a tenant at Westmoor Centre in Denver, Colorado, that was granted permission to terminate its lease on 28 Feb 2018, ahead of expiry in mid-2018. Also read: Watch out for Viva industrial REIT’s income support This was...

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Increase in DPU to 1.80 cents for Keppel DC REIT

Keppel DC REIT’s DPU in the first quarter of 2018 increased to 1.80 cents from the same quarter last year, on the back of increased gross revenue and net property income. Following the acquisition of maincubes data centre in Germany, portfolio AUM stands at S$1.66 billion. Portfolio occupancy however was lower at 93.7% compared to 95.1% the same period last year. This was due mainly to a decline in occupancy in Keppel DC Singapore 1 and Basis Bay Data Centre. Aggregate leverage has risen significantly to 37.4% compared to 27.9% in the same period last year. In this regard, the...

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Property news round up 15 Apr 2018

SEVERAL more quarters of private home price increases of the magnitude seen in the first quarter could leave the property market here staring at the possibility of fresh cooling measures, industry players say. While the immediate risk of that is low, the surprise 3.1 per cent quarter-on-quarter (q-o-q) jump in Q1 private home prices has led some in property circles to contemplate how policymakers would respond if the uptrend of similar or even bigger price spikes continues in the next two quarters. “Looking historically, I think the authorities will start to do something when they see double-digit growth in...

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The economics of DIY real estate platforms

DIY real estate has recently become a hot topic on the back of growth in proptech firms. This phenomenon has been caused by the proliferation of DIY portals, availability of information to those in the real estate transaction and ease of convenience with putting up one’s own place. Backed by technology and the widespread adoption of smartphones, every player in the life cycle of a real estate transaction has access to information that was not available just 5 years ago. Historical transactions, check. Buyer and seller guides, check. Landlord and renter guides, check. Regulations and laws protecting various parties...

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Property news round up 8 Apr 2018

THE 3.1 per cent quarter-on-quarter increase in the Urban Redevelopment Authority’s private home price index based on its first quarter flash estimate has shocked most property consultants, who were expecting a rise of 1 to 2 per cent. The rise is the steepest quarter-on-quarter hike since Q2 2010, when the index rose 5.3 per cent. A check by The Business Times among seven property consultants on Monday found that they have raised their forecasts for the whole of this year; where they had previously predicted a rise of between 3 and 8 per cent in the benchmark property price...

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Property news round up 1 Apr 2018

RESALE prices of existing condos and private apartments in District 15, which includes the Katong and Amber Road areas, as well as District 10 have risen significantly following news of the Amber Park and Royalville collective sales last year. Edmund Tie & Co’s caveats analysis of URA Realis data also showed that in some instances, prices of larger units in the resale market have seen a bigger price hike compared with smaller units. Analysts say resale prices of existing homes are being driven up by strong demand for replacement homes by cash-flush individuals and families who have sold their...

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Analysis on Viva Industrial REIT

Viva Industrial Trust (VIT) is a Singapore-focused Business Park and industrial real estate investment trust. The REIT has the principal investment strategy of investing in a diversified portfolio of income-producing real estate that is predominantly for business parks and other industrial purposes in Singapore and elsewhere in the Asia Pacific region. VIT’s current property portfolio covers an aggregate gross floor area of 3.9 million sq ft and is strategically located in key business parks and established industrial clusters with an aggregate valuation of close to S$1.3 billion. Its nine properties serve over 149 tenants with 39.5% of them in...

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Property news round up 25 Mar 2018

CBRE is relocating its main Singapore office to Paya Lebar Quarter (PLQ) in the middle of next year, and hopes to turn the new office into a “living lab” or a showcase for new proprietary technologies. The new office spanning over 30,000 square feet at PLQ will bring together its operations currently at three different locations, including a prime CBD address at 6 Battery Road. But CBRE will still retain a core CBD office to serve clients in the area, said Pauline Goh, chief executive officer of CBRE Singapore and South-east Asia. KEPPEL Corp on Sunday said that it...

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Decline in distribution per unit for Keppel REIT

Keppel REIT’s 4Q2017 results showed a growth in property income and net property income, but due to a rising number of units and decline in distribution to unitholders, distribution per unit fell from 1.48 SG cents to 1.43 SG cents. Looking into the financial statements and comparing 4Q2016 against 4Q2017: Property income rose from S$40m to S$44.4m. This is good. The increase is due primarily to an improvement in other income. Property expenses fell from S$8.6m to S$8.1m. This is marginal but good. Other income fell from S$41.9m to S$32.1m. This is not good. The decline is primarily due...

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Capitaland Commercial Trust DPU up 6.1% in 4Q2017

Capitaland Commercial Trust’s distribution per unit was up 6.1% for 4Q2017 to 2.08 SG cents from 1.96 SG cents. In 2017 on a full year basis, distribution per unit was up 5.0% to 8.66 SG cents compared to 8.25 SG cents in 2016. The increase in distribution per unit is despite a fall of 3.8% and 4.0% in gross revenue and net property income respectively between 4Q2017 and 4Q2016. The decrease in gross revenue was due to divestments of One George Street (50% interest) in June 2017, Golden Shoe Car Park in July 2017 and Wilkie Edge in Sept...

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