Month: March 2025

Singapore-based property player and hotelier Hotel Properties Ltd (HPL) is set to further expand its global presence through the proposed acquisition of InterContinental Auckland for NZ$180 million ($138.5 million). This marks HPL’s maiden venture into New Zealand’s hospitality market and its second InterContinental hotel acquisition after the InterContinental Maldives Maamunagau Resort.

According to JLL’s Asia Pacific Hotels & Hospitality Group, which advised on the off-market transaction by New Zealand’s Precinct Properties, this is the largest single hotel asset sale recorded in New Zealand to date. HPL’s purchase of the Auckland hotel comes on the heels of the launch of The Boathouse Tioman, featuring 31 bungalows, and the 176-room The Four Seasons Hotel Osaka in Japan last year.

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HPL has expressed its intentions to further expand its luxury hospitality portfolio in key markets in the Asia Pacific region, led by its experienced hospitality management team and strong partnerships with operators such as IHG Hotels & Resorts. “The proposed acquisition of InterContinental Auckland presents a unique opportunity for us to acquire a premium asset in New Zealand,” says Stephen Lau, chairman of HPL Hotels and Resorts.

The property is strategically located within the bustling NZ$1 billion Commercial Bay lifestyle precinct, which opened in January 2024. The hotel’s rooms offer breathtaking views of the Waitematā Harbour, adds Lau. Currently, the hotel has 139 rooms, but there is “ample headroom” to expand to 190 rooms by repurposing the existing office space to meet future demand.…

In the second half of 2024, institutional investments in Asia Pacific (Apac) real estate reached US$83.2 billion ($112 billion), marking a 6% increase year-on-year, according to research by Colliers. This brings the full-year investments to a total of US$155.9 billion, up 12% from the previous year. These numbers reflect the performance of the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

This growth in investments highlights the resilience of the Apac real estate market, setting the stage for a promising 2025, says Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He notes that domestic investors have been a driving force in key markets like South Korea, Taiwan, and New Zealand, accounting for over 80% of real estate inflows in the second half of 2024.

The office sector contributed the most to investment volume in Asia Pacific, accounting for US$26.5 billion (32%) in the second half of 2024. For the entire year, office investments reached US$51.4 billion, a 14% increase year-on-year. The industrial and logistics sector followed closely, recording US$22.6 billion in investments in the second half of 2024, or 27% of the total. This brings the full-year investments in this sector to US$39.4 billion, rising 29% from the previous year.

The retail sector also saw a significant rebound, with investments reaching US$15 billion in the second half of 2024, driven by major deals in Australia and South Korea. Total retail investments for the year amounted to US$26.1 billion, a 27% increase year-on-year.

Pilgrim projects that domestic capital will continue to dominate most markets in 2025, while offshore investments are expected to rise due to improving investor confidence and attractive valuations. He also believes that the office and industrial segments will continue to attract robust investment, while retail, hospitality, and alternative assets will gain traction as investors capitalize on recovery momentum and evolving consumer trends. “With economic growth remaining strong and continued policy support, Apac’s real estate market is poised for sustained investment activity in 2025,” he adds.…

SC Capital Partners Group, a Singapore-based private equity real estate firm, has recently announced the successful sale of its student accommodation property in Sydney, Australia. Located on Anzac Parade and Lorne Avenue in Kensington, the property was sold at a “significant premium” to the price at which it was acquired and a 19% premium to its current book value. The buyer of the property is the University of New South Wales (UNSW) in Sydney.

The sale of this property marks a profitable exit for SC Capital Partners, who had acquired the asset in 2016 for A$57 million. This sale has also highlighted the strong demand for student accommodation assets in the Sydney property market.

The purpose-built student accommodation spans 85,035 square feet and features 233 beds and a ground-floor commercial podium. It is strategically located within 600 meters of the UNSW Kensington campus, making it a highly desirable property for students. The student accommodation component is fully leased to UNSW and a new 20-year master lease was signed in 2019, adding to its attractiveness as an investment opportunity.

The sale of this property is a testament to SC Capital Partners’ expertise in the real estate sector and their ability to identify and capitalize on profitable investment opportunities. With this successful transaction, SC Capital Partners has once again demonstrated their strong track record in the global real estate market.…

ASCapitaLand Investment Limited (CLI) has further solidified its position as a leading player in the private equity real estate market, earning top honors at the prestigious PERE Global Awards 2024. The company’s group CEO, Lee Chee Koon, was named the ‘Industry Figure of the Year’ for Asia Pacific, while CLI received the runner-up award for ‘Firm of the Year’ in the region.

Held annually by PERE, a London-based publication that covers private equity real estate markets, the PERE Global Awards recognizes influential firms, individuals and standout deals from the past year. This year’s winners were selected by a judging panel of PERE journalists, marking a departure from previous editions where PERE readers voted on shortlisted submissions to determine the winners.

In a March 4 press release, CLI expressed its pride in CEO Lee’s achievement, stating that the award “recognizes his role in driving CLI’s transformational growth and his significant impact on the private real estate industry in the Asia Pacific region.” Lee was appointed as CapitaLand’s group CEO in September 2018, and under his leadership, the company has made major strides, including 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.

CLI has also made strategic investments, such as its acquisition of real estate investment manager SC Capital Partners Group and Wingate Group Holdings’ property and corporate credit investment management business in 2024. The company is on track to manage $200 billion in funds by 2028, solidifying its position as a major player in the private equity real estate market.

CLI’s success at the PERE Global Awards 2024 further cements its reputation as a leading developer and investor in the Asia Pacific region. With a strong track record of delivering high-quality and sustainable projects, CLI is well-positioned to continue its growth and make a significant impact in the private equity real estate market.…

Shares of City Developments, currently embroiled in a heated internal conflict that has spilled into the courts, experienced a significant decline of 28 cents, or 5.47%, when trading resumed today. Trading for the company’s shares had been temporarily halted on February 26, when a scheduled results briefing was abruptly cancelled, and news broke later in the day that there was a rift between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek.

In response to these reports, CDL released a statement on March 3 affirming that while the company will not comment on the validity of the allegations being made by both parties, they are aware that these allegations are currently the subject of ongoing court proceedings. The company reassured shareholders that its business operations remain unaffected and that Sherman Kwek will continue to serve as the Group Chief Executive Officer until a board resolution is made to change company leadership.

However, in light of this boardroom and family dispute, analysts have downgraded their calls on CDL and have adjusted their target prices. UOB Kay Hian’s Adrian Loh lowered his rating from “buy” to “hold” in a February 27 report, pointing out that the company’s FY2024 numbers had missed both his and consensus estimates. The public conflict between CDL’s leadership overshadowed any positive performance the company had achieved and Loh believes that this will have a negative impact on the company’s stock performance in the foreseeable future.

Loh’s revised target price of $4.60, down from $7, was based on CDL’s five-year average price-to-book (P/B) ratio of 0.72 times, pegged to 2 standard deviations below the average. He emphasized that without a resolution to the leadership dispute and more active capital recycling, CDL’s share price is unlikely to reach these levels anytime soon. Loh also suggested that professionalizing the management, resolving the factions within the board, reconciling the family members, or selling the company could provide some relief for shareholders in the short term.

In a separate report released on February 27, DBS Group Research analysts Derek Tan and Tabitha Foo acknowledged that investor sentiment will be dampened by the ongoing dispute, but they believe that the company’s fundamentals remain intact. In fact, they noted that CDL is currently trading at a very attractive valuation of 0.5 times P/B (with book value at cost) and 0.3 times P/RNAV, which is even lower than the lows seen during the Global Financial Crisis. Tan and Foo maintained their “buy” rating on CDL, but lowered their target price from $10.50 to $6.70 based on a 60% discount to RNAV, as opposed to their previous valuation of a 35% discount. They also pointed out that the current discount for the real estate sector as a whole is 50%.

Similarly, OCBC Investment Research maintained their “buy” rating on CDL but with a reduced fair value of $6.02, down from $6.57. They based their valuation on a wider RNAV discount of 60%, as opposed to the 45% previously used. They also cautioned that the ongoing dispute could lead to uncertainty over CDL’s outlook and potentially affect the company’s stock performance until the matter is resolved.

Citi Research analyst Brandon Lee, in a February 26 report, pointed out that it’s difficult to quantify the potential impact of the ongoing disputes on CDL, but he believes that uncertainty surrounding the board and company leadership, coupled with the lengthiness of any potential court case, could keep CDL’s share price under pressure in the near term. However, Lee also noted that CDL is currently under-owned by investors, and any positive resolution to the dispute could have a major impact on the company’s share price in the long term. This led Lee to maintain his “buy” call with a $9.51 target price, based on his view that CDL’s current stock price, which is less than a third of its book value, presents a significant buying opportunity.

In a report released on February 26, JP Morgan analysts Mervin Song and Terence M Khi referred to the conflict at CDL as a “dynastic discord” that has been building up over several years, due to underperformance and public disagreements among members of the extended Kwek family. Despite this, they expressed hope that a positive resolution can be reached and that the family can be reconciled. However, they did lower their target price on CDL from $6.05 to $4.85, based on a 60% discount to their RNAV estimate of $12.10 per share.…

Perpetual (Asia) Limited, acting as trustee for Elite UK REIT, has sold Crown Buildings, Caerphilly, located on Claude Road in Wales, for GBP710,000 ($1.2 million) at an 18% premium. This decision was reflected in a filing to the bourse on March 3rd.

The independent valuation conducted by CBRE at the end of 2024 estimated the property’s value to be GBP600,000 while its value at the end of 2023 was GBP530,000. The vacant property covers a total gross floor area of 20,712 sq ft, according to Elite UK REIT’s website.

The net proceeds from the sale will be used to repay Elite UK REIT’s existing borrowings. The company has successfully reduced its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024, following its successful GBP28 million preferential offering in January 2024.

Moreover, its net gearing ratio also dropped from 47.5% at the end of 2023 to 42.5% at the end of 2024. Elite UK REIT does not have any debt maturing in 2025 and 2026, and its refinancing is only due in 2027.…