Month: March 2025

for $401.7 mil

When it comes to investing in condos in Singapore, one must also consider the impact of the government’s property cooling measures. Over the years, the Singaporean government has implemented various measures to prevent speculative buying and maintain a steady real estate market. These measures, such as the Additional Buyer’s Stamp Duty (ABSD), result in higher taxes for foreign buyers and those purchasing multiple properties. While these measures may initially affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a more secure investment environment. Additionally, the availability of new condo launches further adds to the potential for profitable investments in the Singapore condo market.

CapitaLand Investment Limited (CLI) is proud to announce that our Group CEO, Lee Chee Koon, has been recognized as the ‘Industry Figure of the Year’ for the Asia Pacific region at the prestigious PERE Global Awards 2024. This annual ceremony, hosted by a renowned London-based publication that covers private equity real estate markets, celebrates the most influential firms, individuals, and standout deals of the past year. In addition, CLI was also awarded the runner-up position for ‘Firm of the Year’ in the Asia Pacific region.

The winners of this highly coveted award were chosen by a panel of PERE journalists, a departure from previous editions where readers voted on shortlisted submissions. This recognition adds to CLI’s list of accolades and further affirms our industry-leading position.

In a press release on March 4th, 2024, CLI stated that the award was a testament to CEO Lee’s role in driving CLI’s transformational growth and his significant impact on the private real estate industry in the Asia Pacific region. Since taking on the role of CapitaLand’s Group CEO in September 2018, Lee has made significant strides in steering the company’s growth and expansion. This includes the acquisition of Ascendas-Singbridge in 2019 and the 2021 restructuring of CapitaLand Group, which resulted in the listing of CLI and the privatisation of its real estate development arm, CapitaLand Development.

Notably, 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. With these moves, CLI is on track to manage $200 billion in funds by 2028. This achievement further solidifies our position as a top player in the real estate industry.

We are honoured to receive this recognition and would like to extend our appreciation to the panel of judges at PERE for acknowledging CLI’s contribution to the Asia Pacific real estate sector. We remain committed to delivering value to our stakeholders and will continue to pursue opportunities for growth and expansion.…

SC Capital Partners Group, a private equity real estate firm based in Singapore, announced on March 3 that it has successfully sold its student accommodation asset in Sydney, Australia. The property, situated on Anzac Parade and Lorne Avenue in the suburb of Kensington, was sold at a substantial premium compared to its acquisition price and current book value. The buyer of the asset is the University of New South Wales (UNSW), one of the top universities in Sydney.

In Singapore, location plays a crucial role in real estate investment, particularly when it comes to purchasing condos. Proximity to central areas and important amenities like schools, shopping centers, and public transportation hubs greatly impacts the value of these properties. It’s no surprise that prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently shown an increase in property values over time. Families looking to invest in condos are drawn to these areas because of their close proximity to top-performing schools and educational institutions, making them highly sought after and further boosting their potential for investment. With the introduction of new condo launches, investors now have even more options to consider when selecting a desirable location for their real estate investments. These new launches allow them to invest in upcoming prime areas, emphasizing the significance of location when making real estate investment decisions. It’s worth noting that new condo launches only add to the already competitive landscape of real estate investment in Singapore.

According to the press release, SC Capital Partners originally purchased the property in 2016. At that time, the reported purchase price was A$57 million. However, the recent sale has fetched a significant premium, indicating the successful management and value-enhancing efforts of the firm. This also marks a 19% premium to the current book value of the asset.

The purpose-built student accommodation, spanning 85,035 square feet, boasts 233 beds and a ground-floor commercial podium. Its prime location within 600m of the UNSW Kensington Campus makes it a highly desirable property for students. At present, the student accommodation is fully leased to UNSW, with a fresh 20-year master lease signed in 2019.

The sale of this asset highlights the increasing competition in the Australian real estate market, particularly in the student accommodation sector. The current transaction has also raised the firm’s assets under management (AUM) to a staggering $113 billion, further solidifying its position as a key player in the market.…

The shares of City Developments, currently embroiled in a tense internal conflict that has escalated to the courts, experienced a significant drop of 28 cents, or 5.47%, upon resuming trading today.

The trading of the company’s shares had been halted since February 26, when a last-minute decision to cancel a results briefing was made. Within hours, the Singapore business community was shaken by news of a dispute between the company’s executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek.

“Shareholders should be aware that various news reports have surfaced regarding the disagreement within the board. The company will not comment on the validity of these allegations as they are currently subject to ongoing court proceedings related to an application,” said City Developments on March 3.

The company further clarified that its business operations remain unaffected and fully functional. Sherman Kwek also remains the group CEO until a resolution is reached by the board to change company leadership.

In light of the ongoing family feud, analysts have downgraded their recommendations and lowered their target prices for City Developments. Adrian Loh from UOB Kay Hian downgraded the stock from “buy” to “hold” in a note on February 27, citing the company’s FY2024 figures which missed both his and consensus estimates.

“However, this has been overshadowed by news of the public leadership tussle. We believe that while City Developments has valuable assets both in Singapore and globally, the stock will have a difficult time performing due to this issue,” said Loh. He revised his target price from $7 to $4.60, based on a 2 standard deviations below the company’s five-year average P/B ratio of 0.72 times.

Derek Tan and Tabitha Foo from DBS Group Research, on the other hand, believe that City Developments still has potential. “While this may dampen investor sentiment in the short-term, we believe that the fundamentals of the company remain strong, as key management continues to run the company,” they said. They also noted that the stock is currently trading at an attractive valuation of 0.5 times P/B and 0.3 times P/RNAV, lower than its lows during the Global Financial Crisis. DBS Group Research maintains its “buy” rating but has lowered its target price from $10.50 to $6.70.

Similarly, OCBC Investment Research has kept its “buy” call but has reduced its fair value from $6.57 to $6.02, taking into account the wider RNAV discount of 60% from 45% previously. “We expect uncertainties regarding City Developments’ outlook and a potential share price overhang until the matter is resolved,” said OCBC.

Citi Research’s Brandon Lee also sees some short-term impact on the company’s share price, due to shareholder uncertainty and the length of the potential court case. However, Lee believes that City Developments is currently under-owned, which could lead to a significant stock price catalyst in the long-term. With a “buy” call and a target price of $9.51, Lee highlights how the company is trading at less than one-third of its book value.

JP Morgan analysts Mervin Song and Terence M Khi describe the internal conflict at City Developments as a “dynastic discord” that has been brewing for years due to frustration, underperformance, and disagreements among members of the Kwek family. Despite this, the analysts hope for a positive resolution and family reconciliation. They have, however, reduced their target price from $6.05 to $4.85, based on a 60% discount to their RNAV estimate of $12.10 per share.

It is essential for foreign investors to have a clear understanding of the regulations and limitations surrounding property ownership in Singapore. While purchasing condos may be relatively easy for foreigners, the same cannot be said for landed properties, as they are subject to stricter ownership rules. Additionally, foreign buyers are required to pay a 20% Additional Buyer’s Stamp Duty (ABSD) for their initial property purchase. Despite this added cost, the Singapore real estate market continues to offer unwavering stability and promising growth potential, making it a highly attractive option for foreign investment. Those interested in investing in the lucrative Singapore Condo market can explore their options with Singapore Condo.…

To sum it up, opting to invest in a condo in Singapore brings forth a myriad of benefits, including its high demand, potential for increase in value, and attractive rental returns. Nevertheless, it is crucial to carefully evaluate key aspects such as location, financing options, government regulations, and market conditions. Through thorough research and seeking guidance from experts, investors can make well-informed decisions and maximize their profits in the dynamic real estate market of Singapore. Whether you are a local looking to expand your investment portfolio or a foreign buyer seeking a stable and lucrative opportunity, Singapore’s condo market offers a compelling option. For more information on Singapore projects, please visit .

Perpetual (Asia) Limited, the trustee of Elite UK REIT, has sold Crown Buildings in Caerphilly, Wales for GBP710,000 ($1.2 million).The sale price represents an 18% premium as the property was valued at GBP600,000 at the end of 2024, according to an independent valuation by CBRE. At the end of 2023, the property was valued at GBP530,000. The net proceeds from the sale will be used to repay Elite UK REIT’s outstanding borrowings.Crown Buildings, Caerphilly, located in Wales, has 20,712 square feet of gross floor area, according to Elite UK REIT’s website. In January 2024, the company successfully completed a GBP28 million preferential offering, which reduced its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Its net gearing ratio also declined from 47.5% to 42.5% during the same period. The company has no debt maturing in 2025 or 2026, and it is not due for refinancing until 2027.…