Category Uncategorized

Shui On Land, a Hong Kong-listed property company, has announced a joint venture between its subsidiary, Shanghai Ruilou Enterprise Management, and state-owned enterprise Shanghai Pucheng. The project aims to redevelop Zhaojia Lou Ancient Town in Shanghai’s Minhang district. Zhaojia Lou Ancient Town is a popular tourist spot, with hundreds of thousands of visitors each year, and is known for its canals and ancient water towns. It lies next to the Shanghai Shenjiahu Expressway and the Shanghai North-South Elevated Road, and has two connected subway lines.

The joint venture will redevelop a land parcel stretching from Jiageng Road to the east, Yaojia Bang to the south, Huichi Road to the west, and Xiaoyan Lake to the north. The new development will include residential, commercial and ancillary facilities, as well as preservation of the area’s unique history and culture.

Jessica Wang, CEO of Shui On Land, is optimistic about the future of the project. She notes that the group has developed a strong foothold in Shanghai, participating in successful urban renewal projects. Moreover, the group’s success in the Panlong Tiandi project gives strong confidence in the future prospects of the Zhaojia Lou project.

The Shui On Group, to which Shui On Land is the flagship property development company, was founded by Hong Kong billionaire Vincent Lo. Over the past 30 years, it has made a name for itself in urban renovation and master planning, cultural preservation, and community operation. This new joint venture with Shanghai Pucheng is sure to create an exciting new landmark in the city of Shanghai.…

The sale of a first-floor unit at Parc Stevens in prime District 10 in Singapore was the most profitable condo resale transaction recorded during the week of April 4 to 11. This 3,466 sq ft, five-bedroom unit fetched $7.86 million ($2,265 psf), making it the highest psf-price recorded at Parc Stevens. It had been purchased by the seller for $5.2 million ($1,500 psf) in April 2007, clocking a profit of $2.65 million (51%) after 16 years.

This marks the second most profitable transaction ever recorded at the development of Parc Stevens. Last May, a 3,305 sq ft unit on the fourth floor changed hands for $6.23 million ($1,885 psf). The seller had bought the unit for $4.23 million ($1,059 psf) in July 2005, amassing a gain of $2.73 million.

Parc Stevens is a 48-unit freehold condo that was completed in 2000. Its units are a mix of three- to five-bedders ranging from 1,722 to 3,466 sq ft and the development is a five-minute walk to the Stevens MRT Station.

The second most profitable transaction recorded during the week in review took place at Yong An Park, a freehold condo in the River Valley area. A four-bedroom unit measuring 3,434 sq ft on the 10th floor sold for $8.1 million, or $2,359 psf on April 6. The seller had bought it for $6.02 million ($1,753 psf) in March 2012, pocketing a gain of $2.08 million (35%) across a holding period of 11 years.

Yong An Park has seen two units change hands this year. In March, a 1,808 sq ft unit on the seventh floor went for $4.25 million ($2,350 psf), while a 1,023 sq ft unit on the ninth floor fetched $2.4 million ($2,347 psf) last December. Completed in 1986, the development has a total of 288 residences consisting of one- to four-bedders within 1,023 sq ft and 3,552 sq ft, as well as a collection of townhouse units starting from 7,718 sq ft.

The most unprofitable transaction recorded during the week was the sale of a four-bedroom unit at Marina Bay Suites. On April 10, the 2,680 sq ft unit on the 25th floor was sold for $5.25 million ($1,959 psf). The seller had purchased the unit from the developer for $6.39 million ($2,383 psf) in December 2009, incurring a loss of $1.14 million (18%) over a holding period of more than 13 years.

Marina Bay Suites is a 99-year leasehold development on Central Boulevard. Completed in 2013, the 66-storey tower has 221 units with typical residences being three- and four-bedroom dwellings ranging from 1,572 to 2,691 sq ft. Since January 2021, 24 resale transactions have taken place at the development, out of which 23 have gone at a lower price than what it was purchased for. The respective sellers have seen losses that range between $7,000 and $3.25 million.…

CLAR, the manager of the REIT, has announced the divestment of Singapore industrial building KA Place for a consideration of $35.38 million. The sale and purchase agreement was entered into between the REIT’s trustee, HSBC Institutional Trust Services (Singapore) and KA Place SPV 1.The proposed divestment is in-line with the manager’s proactive asset management strategy and the net proceeds may be recycled to fund committed investments, repay existing indebtedness, extend loans to subsidiaries, fund general corporate and working capital needs, and/or make distributions to unitholders. The net proceeds after divestment costs are expected to be $30.65 million. This divestment is expected to be completed within 2Q2023.The consideration sum represents a 219% premium to CLAR’s purchase price of $11.1 million in March 2005 and a 55% premium to the property’s market valuation of $22.8 million as at Dec 31, 2022. KA Place at 159 Kampong Ampat is a seven-storey high-specification industrial building with a carpark on the second storey, and a total gross floor area of 10,163 sq m, with a remaining land lease tenure of about 35 years.If the net proceeds were used to repay CLAR’s borrowings as at Dec 31, 2022, CLAR’s aggregate leverage will be reduced from 36.3% to approximately 36.2%. The proposed divestment is also in line with the manager’s strategy to improve the quality of CLAR’s portfolio, and optimize returns for unitholders. Assuming the divestment had happened on Jan 1, 2022, the pro-forma impact on CLAR’s net property income (NPI) and distribution per unit (DPU) for the financial year ended Dec 31, 2022 would have been a decrease of $0.92 million and 0.005 Singapore cents, respectively.In accordance with the trust deed, the manager is entitled to a divestment fee of 0.5% of the sale consideration of the property, which will be paid in cash.Units in CapitaLand Ascendas REIT closed 3 cents higher, or 1.05% up, at $2.88 on April 20.

Divestment of KA Place in Singapore

CapitaLand Ascendas REIT (CLAR) has announced the divestment of KA Place, a seven-storey high-specification industrial building in Singapore, for a consideration of $35.38 million. The sale and purchase agreement was entered into between HSBC Institutional Trust Services (Singapore) – the REIT’s trustee – and KA Place SPV 1.

The consideration sum – which represents a 219% premium to CLAR’s purchase price of $11.1 million in March 2005 and a 55% premium to the property’s market valuation of $22.8 million as at Dec 31, 2022 – reflects CLAR’s proactive asset management strategy to improve the quality of its portfolio and optimize returns for unitholders.

The Singapore industrial building located at 159 Kampong Ampat has a total gross floor area of 10,163 sq m, a carpark on the second storey, and a remaining land lease tenure of about 35 years.

If the net proceeds of this divestment – which are estimated to be $30.65 million after deducting divestment costs – are used to repay CLAR’s borrowings as at Dec 31, 2022, its aggregate leverage is projected to reduce from 36.3% to approximately 36.2%.

Assuming the proposed divestment was completed on Jan 1, 2022, the pro-forma impact on CLAR’s net property income (NPI) and distribution per unit (DPU) for the financial year ended Dec 31, 2022 would have been a decrease of $0.92 million and 0.005 Singapore cents, respectively.

In accordance with the trust deed, the manager is entitled to a divestment fee of 0.5% of the sale consideration of the property, which will be paid in cash.

Units in CapitaLand Ascendas REIT closed 3 cents higher, or 1.05% up, at $2.88 on April 20. The proposed divestment is expected to complete within 2Q2023. Upon completion, CLAR will own 229 properties, comprising 96 in Singapore, 36 in Australia, 48 in the United States and 49 in the United Kingdom and Europe.

The manager has carefully evaluated the property and determined that it is an opportune time to divest the property and redeploy the capital towards value-adding opportunities. The net proceeds may be recycled to fund committed investments, repay existing indebtedness, extend loans to subsidiaries, fund general corporate and working capital needs, and/or make distributions to unitholders.…

The Ascott Limited, the lodging business unit of CapitaLand Investment, has set its sights on doubling its fee revenue over the next five years. FY2022, a record high for the business, will provide the base for the target to reach at least $500 million. This substantial growth was spurred by 36% year-on-year (y-o-y) growth, resulting from new property openings and other signings.

Not only has Ascott succeeded in securing 160,000 units by 2023, it has already established a goal of netting an additional 4,000 units in the first quarter of FY2023. In order to accomplish these targets, the business plans to offer service residences, hotels, co-living and senior living options, and range from mid to luxury scale.

Continued openings of properties and new signings are expected to contribute to the business’ fee revenue growth at an estimated annual rate of 8%-10% over the next five years.

Thanks to the company’s asset-light strategy, Ascott has seen a steady increased in units of late, as it went from having 20,000 units in 2008 to its current 160,000 units. This growth has had a rather positive financial impact, which Ascott hopes to amplify in the coming five years.

Kevin Goh, CEO of Ascott and CLI Lodging, commented: “Over 80% of our total units are under management and franchise contracts, up from 43% ten years ago. These management and franchise contracts typically have sticky recurring fee revenue and long tenures.”

To meet the lofty goals it has set, Ascott will seek to sign management and franchise contracts for higher-quality, more profitable properties. Furthermore, the business plans to further leverage its direct distribution channels to deliver greater value to both property owners and customers.

Ascott’s ambitious plans tie in its recent development around Singapore, with the launch of its third co-living property, as well as the opening of the Citadines Connect City Centre hotel on Orchard Road, along with acquisitions of properties in China and the Netherlands to the tune of $190 million.…