Month: March 2025

for $996 mil

Lee Chee Koon, the successful group CEO of CapitaLand Investment Limited (CLI), has recently been recognized as the ‘Industry Figure of the Year’ for Asia Pacific at the 2024 edition of the annual PERE Global Awards. This prestigious award ceremony, organized by a London-based publication that covers private equity real estate markets, applauds noteworthy firms, individuals, and outstanding deals from the previous year. CLI has also been awarded the runner-up position for the ‘Firm of the Year’ in Asia Pacific.

The winners of the 2024 awards were chosen by a panel of PERE journalists, in a departure from previous editions where readers voted to determine the winners from a shortlist selected by PERE. In a press release dated March 4, CLI announced that the award for CEO Lee recognizes “his instrumental role in driving CLI’s transformational growth and his significant impact on the private real estate industry in the Asia Pacific region.”

Since Lee took over as CapitaLand’s group CEO in September 2018, there have been several major developments under his guidance. These include the successful acquisition of Ascendas-Singbridge in 2019 and the restructuring of CapitaLand Group in 2021, which involved the listing of CLI and the privatization of its real estate development arm, CapitaLand Development. In 2024, CLI also invested in real estate investment manager SC Capital Partners Group and acquired Wingate Group Holdings’ property and corporate credit investment management business. The company is currently on track to manage funds worth $200 billion by 2028.

When contemplating an investment in a condominium, it is crucial to also evaluate its potential rental yield. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly depending on factors such as location, condition of the property, and market demand. Generally, areas with high rental demand, such as those situated near business districts or educational institutions, tend to offer better rental yields. To gain a better understanding of a particular condo’s rental potential, it is vital to conduct thorough market research and seek guidance from real estate agents. Another source of valuable insights on Singapore condominium investments can be found on websites like Singapore Projects.

Lee Chee Koon’s leadership and strategic moves have clearly propelled CLI to new heights in the private real estate sector. With such impressive achievements, it is no surprise that he has been named the ‘Industry Figure of the Year’ by PERE and is revolutionizing the way the company handles investments.…

Singapore-based private equity real estate firm, SC Capital Partners Group, has recently announced the sale of its student accommodation asset in Sydney, Australia. The group stated in a press release on March 3 that the property, situated on Anzac Parade and Lorne Avenue in Kensington, was sold at a substantial premium to the original purchase price and a 19% premium to its current book value. The buyer of the asset is the University of New South Wales (UNSW) in Sydney.

SC Capital Partners had initially acquired the property in 2016, reportedly paying A$57 million for it. The purpose-built student accommodation spans over 85,035 square feet and has 233 beds, along with a commercial podium on the ground floor. It is conveniently located within a 600-meter walking distance from the UNSW Kensington Campus. The student accommodation section of the property is fully leased to UNSW, with a newly-signed 20-year master lease agreement in 2019.

This transaction comes at a time when the asset under management (AUM) race is becoming increasingly competitive, with the recent CLI transaction raising its FUM to an impressive $113 billion. With this sale, SC Capital Partners has realized significant gains and has strengthened its position in the private equity real estate market.

Investing in a Singapore Condo involves careful consideration of the government’s property cooling measures. The Singaporean government has implemented several measures over the years to discourage speculative buying and maintain a steady real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. Although these measures may affect the immediate profitability of condo investments, they also play a vital role in creating a secure investment environment in the long run. With the added assurance of stability, investing in a Singapore Condo becomes a wise and sound decision for investors.…

Shares of City Developments plummeted by 28 cents or 5.47% upon resumption of trading today amid an internal conflict that has escalated to the courts. The company’s shares were halted on February 26 when a results briefing was suddenly cancelled, and news of a disagreement between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek, rocked the Singapore business community.

City Developments has stated that news reports have disclosed various allegations made regarding the board’s disagreement. However, the company will not comment on the validity of these allegations as they are subject to the ongoing court proceedings.

CDL’s business operations remain fully functional and unaffected, with Sherman Kwek remaining as Group CEO until a Board resolution is made to change the company’s leadership. Despite the boardroom-cum-family dispute, analysts have downgraded their calls and reduced their target prices.

UOB Kay Hian’s Adrian Loh downgraded the stock from “buy” to “hold” in his February 27 note, citing that the FY2024 numbers fell short of both his and consensus’ estimates. However, he notes that the news of a very public leadership tussle overshadowed this. As the company holds valuable assets in Singapore and globally, Loh believes that the stock may struggle to perform with this overhang. He has revised his target price from $7 to $4.60, based on 2 standard deviations below its five-year average price-to-book (P/B) of 0.72 times.

To sum up, purchasing a condominium in Singapore can be a beneficial decision due to its numerous advantages such as high demand, potential for appreciation in value, and attractive rental yields. However, it is crucial to carefully consider various factors including location, financing options, government regulations, and market conditions. By conducting thorough research and seeking professional advice, investors can make well-informed choices and maximize their returns in the dynamic real estate market of Singapore. Whether you are a local investor looking to diversify your portfolio or a foreign buyer in search of a stable and profitable investment, the condos in Singapore offer a compelling opportunity. For information on the latest condo launches, visit New Condo Launches.

Derek Tan and Tabitha Foo from DBS Group Research see some silver lining, stating that fundamentals remain intact as key management continues to run the company. They note that CDL is trading at an attractive valuation of 0.5 times P/B (with book value at cost) and 0.3 times P/RNAV, lower than during the Global Financial Crisis. However, they have cut their target price from $10.50 to $6.70, based on a 60% discount to RNAV.

OCBC Investment Research has also maintained its “buy” call but reduced its fair value from $6.57 to $6.02, based on a wider RNAV discount of 60%. They expect uncertainties over CDL’s outlook and potential overhang on its share price until the matter is resolved.

Citi Research’s Brandon Lee states that the impact of this episode is hard to gauge, but believes that potential uncertainty and the lengthiness of a potential court case could be a share price overhang in the short term. However, he maintains a “buy” call with a $9.51 target price, as CDL is currently trading at less than a third of its book value.

JP Morgan analysts Mervin Song and Terence M Khi describe the events at CDL as a “dynastic discord” stemming from years of frustration, underperformance, and public disagreement among certain members of the extended Kwek family. They hope for a positive resolution and family reconciliation 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.…

In summary, purchasing a condo in Singapore brings with it a plethora of benefits, such as high demand, potential for capital appreciation, and appealing rental yields. However, it is crucial to carefully consider various factors, including location, financing options, government regulations, and prevailing market conditions. Through diligent research and seeking expert guidance, investors can make well-informed decisions and maximize their gains in Singapore’s ever-changing real estate market. Whether one is a local investor seeking to expand their investment portfolio or a foreign buyer looking for a stable and profitable venture, condos in Singapore offer a compelling opportunity.

Perpetual (Asia) Limited, the trustee of Elite UK REIT, recently sold Crown Buildings, Caerphilly located at Claude Road, Caerphilly for GBP710,000 ($1.2 million) at an 18% premium. As reported in a March 3 filing, the vacant property was valued at GBP600,000 at the end of 2024 based on an independent valuation conducted by CBRE. This property, situated in Wales, was valued at GBP530,000 at the end of 2023. The proceeds from the sale will be used to pay off Elite UK REIT’s outstanding borrowings.

According to the website of Elite UK REIT, Crown Buildings, Caerphilly has a total gross floor area of 20,712 square feet. After a successful preferential offering of GBP28 million in January 2024, the company’s leverage ratio decreased from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, its net gearing ratio also saw a decline from 47.5% to 42.5% during the same period. Moreover, there is no debt maturing in 2025 and 2026, and refinancing is only due in 2027.…