Author: PropInvestSG

Property news round up 14 Jan 2018

MAS puts more scrutiny on bank loans for property development A spate of aggressive land deals by developers last year has prompted the Singapore central bank to take a closer look at the way banks are financing development projects. The Business Times understands that the Monetary Authority of Singapore (MAS) is collecting more data from banks through a new survey sent out to them last month. Some of the information sought by the MAS includes the size of banks’ exposures and details of the loan facilities granted for each project such as the key covenants and loan-to-value (LTV) ratios,...

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Portfolio update Dec 2017 [DD]

Just got started recently helping some loved ones to invest and keep track of their portfolio. With more of my experience in REITs, I decided that I should help one of them buy some REITs. Here’s the maiden post and holdings. Lippo Mall REIT Capitaland Retail China Trust SPH REIT Present portfolio IRR of 6.2%. Return multiples between 0.97 and 1.03 for the different counters. Portfolio return multiple averages out to 1.0. Portfolio dividend yield is 6.4% which is within my comfortable range of 6 to 7%. I might consider stretching to buy REITs which are 5-ish or 7-ish%...

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Manulife US REIT review

As part of potentially investing in Manulife US REIT, I am writing a set of posts to determine whether this could be an addition to my stock portfolio. In the spirit of trying to be objective (though I already have some bias toward buying the stock), I am going to try to approach this investment decision to buy Manulife US REIT with a blank slate. I will try to let the REIT speak for itself, and at the end of the day determine if it’s worth the addition. What is Manulife US REIT Manulife US REIT has assets in...

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Top 3 Influences of Technology on Real Estate

There had been 118 cases of completed mortgagee sales involving HDB flats from January 2013 to November 2017, according to a parliamentary reply from the Ministry of National Development on Wednesday (10 January). It stated this in response to a question from Gan Thiam Poh, Member of Parliament (MP) for Ang Mo Kio Group Representation Constituency (GRC). Notably, mortgagee sales happen when people default on their housing loans, resulting in banks auctioning off the property to reclaim the amount they lent plus interest. Gan also asked how many flat lessees have approached the Housing and Development Board (HDB) with...

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Interior design for your home during Chinese New Year

PropertyInvestSG 2 hours ago China’s Ping An Insurance Group and Landsea Group have become the latest mainland investors to wager on the country’s emerging rental housing market, as steep home prices in major cities fuel enthusiasm for the asset class. Ping An Real Estate, a unit of the Shenzhen-based insurer, has partnered with Landsea Green Properties to set up a $1.5 billion fund that will support the development of rental apartment projects in major Chinese cities. Landsea Green Properties, the listed platform of Nanjing-based Landsea Group, announced the venture in a filing to the Hong Kong stock exchange. The...

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Property news round up 7 Jan 2018

Big property deals surge to 10-year high Sales of big-ticket property transactions of S$10 million and above in 2017 surged to their highest level in a decade. This, however, was short of the record achieved in 2007, show latest figures from Savills Singapore and CBRE released separately to The Business Times. According to Savills Singapore’s preliminary tally as at Dec 27, investment sales of property reached S$35.64 billion, up 57.3 per cent from the S$22.66 billion in 2016. This was the best since the record S$41.1 billion during the 2007 property boom. Based on JLL’s figures, the surge in...

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Capitaland’s sale of 20 China malls

Capitaland today announced their sale of 20 China malls to Vanke, SCPG (a subsidiary of Vanke) and Triwater, an affiliate of a fund. According to their presentation slides, Capitaland Mall’s move is based on 4 strategies. Active reconstitution efforts to optimize their portfolio Focus on dominant malls in core city clusters Grow strong recurring income combining quality owned assets and 3rd party management contracts Transforming their mall portfolio into “The Future of Retail” In their slides, they point out that the portfolio being divested comprises of the holding companies of 20 malls across 19 cities. The 20 malls are...

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Riskiest REITs based on their beta

The Singapore stock exchange has many REITs to choose from and investors usually base their buying decision on dividend yields. But how many have stopped to think of the risk of a REIT? What is risk? By risk, I mean how much the price of a REIT fluctuates. I.e. its volatility In the finance world, the term beta is used to measure how volatile a stock is. In this regard, volatility is synonymous with risk. Higher volatility = higher risk. The market used in this context is the STI index. In other contexts, it can be used to mean...

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SRX resale property price index up 0.1% on month in Dec

SRX released their flash estimates for the 2017 December HDB resale prices which saw a 0.1% increase, reversing a sequential drop of 0.1% November. Despite the monthly increase, December 2017’s reading is down 1.8% from December 2016, indicating that a recovery in the HDB resale market is not yet on the cards. A muted level of resale transaction volumes also show that recovery may be some way off. At 1,585 units transacted in December 2017, this is 20% lower than the previous month. An average of 1,600 HDB resale units have been transacted monthly over the past 12 months....

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OCBC recommending hold for OUE hospitality trust

OCBC released a note on OUE Hospitality Trust (OUEHT) indicating a hold on the counter despite 2018 anticipated to be a positive year for the stock. Average cost of debt has fallen from 2.8% to 2.4% after the trustee of OUEHT entered into a facility agreement with four banks for revolving loan facilities amounting to S$980m. Subsequently on 19 Dec 2017, they drew down from the facility to refinance S$859m of outstanding debts. Read also: Lippo mall, a REIT with an 8.2% dividend yield After refinancing, more than 70% of OUEHT’s interest is fixed via interest rate swaps and the...

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Singapore savings bond Feb 2018 yields

The February issue of Singapore Savings Bonds are out. Issue date will be 1 Feb 2018 for a tenor of 10 years, maturing on 1 Feb 2028. Yields are 1.55% for 1 year and 2.04% for 10 years. Those interested can apply through DBS/POSB, OCBC, UOB ATMs and internet banking. If you invest S$10,000 and hold the bond to maturity, you will get a total payout of S$2,062. Singapore’s 10 year bond yields have been on a downtrend since beginning of 2016. At present rates, it is close to the 2.0% psychological mark. Rates have fallen below 2.0% only...

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52 real estate companies you need to know to get rich investing in property

Real estate and getting rich investing in property has always been in the blood of Singaporeans. From the moment a kid is born, parents incessantly tell them they should get their own house in future, get another after saving up, rent the first one out, and then repeat the process. Investing in property can no doubt help one become rich (if done the right way), but how would one know how to invest without first getting a lay of the landscape? To get you acquainted with the real estate scene in Singapore, here’s a list of 52 real estate...

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Property news round up 31 Dec 2017

FCL enters German last-mile logistics sector Frasers Centerpoint Ltd (FCL) is set to expand its European logistics property footprint with an announcement over the weekend of a purchase of six German logistics facilities for about 257 million euros (S$408.6 million). The purchase, which will boost the group’s proportion of recurring income, also marks the mainboard-listed group’s entry into the German last-mile logistics sector. FCL said its wholly-owned subsidiaries have entered into a sale and purchase agreement with ECE Projektmanagement, a Hamburg-based developer, owner and manager of commercial real estate, for the acquisition of the six cross-dock facilities, which total...

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Capitaland acquires Main Airport Centre in Frankfurt, Germany

Capitaland today announced their acquisition of a 94.9% stake of Main Airport Centre (MAC) in Frankfurt. The agreed property value of EUR 245m or S$392m is slightly lower than valuation of EUR 248.2m or S$397m. Located at Unterschweinstiege 2-14, 60549 Frankfurt, the property has 13 levels consisting of a multi-tenanted office, multi-storey carpark and a petrol station. The property has a built up area of approximately 648,000 sqft and sits on freehold land. Also read: Soilbuild REIT’s divestment of KTL offshore Out of more than 30 tenants, key occupiers include Dell, Mastercard and Lufthansa. The weighted average lease expiry (WALE)...

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Soilbuild REIT’s divestment of KTL Offshore

Late this evening Soilbuild announced their intention to dispose of KTL offshore, at 61 and 71 Tuas Bay Drive, for a purchase consideration of S$55m. The buyer is a wholly-owned subsidiary of Soilbuild Group Holdings Ltd. Soilbuild Group Holdings Ltd is the sponsor of Soilbuild REIT. KTL Offshore was originally purchase on 31 Oct 2014. Consisting of two adjacent purpose-built factories along Tuas Bay Drive, 61 Tuas Bay Drive is a three-storey industrial building with ancillary office 71 Tuas Bay Drive is a part two/three storey building development with an ancillary office. Also read: CDL’s upcoming condo, The Tapestry,...

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