Property News 27 Feb 2020
Brought to you by PropertyInvestSG
CBRE appointed leasing agent for upcoming Nanjing data centre CBRE has been appointed as the sole leasing agent for an upcoming two-storey data centre in China. The facility is named NKG2, and is in the Jiangning District in Nanjing city. The development will be managed by Big Data Exchange (BDx), a Hong Kong-based carrier-neutral platform with existing data centres in Hong Kong and mainland China. The data centre has a total gross floor area of 276,632 sq ft and will be able to house up to eight data halls. The site will be able to provide carrier-neutral data centre options with an initial power capacity of 14MW, with the ability to scale up to 40MW.
CAPITALAND ADDS £129M UK BIZ PARK TO EUROPEAN PORTFOLIO CapitaLand has agreed to acquire a business park in the UK for £129 million ($168 million), as Southeast Asia’s largest real estate group boosts its portfolio in post-Brexit Britain. The Singapore property giant said that its acquisition of the Arlington Business Park, once completed, will bring its European assets under management to S$4.8 billion ($3.4 billion), including 39 industrial or business parks and eight Citadines serviced apartments in the UK. The announcement came the same day that the company released its 2019 financial results, which showed profits after tax and minority interest of S$2.1 billion – up 21 percent from the previous year. Investing in Developed Markets “The acquisition of Arlington Business Park is part of CapitaLand’s plan to increase our investments in developed markets such as Europe, Japan and the USA,” said CapitaLand Group’s Singapore and international president, Jason Leow.
Alternative real estate assets: get ready for the floats The local stock exchange is beckoning ever more strongly for the growing range of alternative real estate assets – student accommodation, healthcare, data centres, rental housing – following a path already taken in global markets.
SPH buying six aged-care assets in Canada for $244.5m Singapore Press Holdings (SPH) has announced, within the space of a week, two investments abroad in the aged-care business. It announced yesterday it had acquired a portfolio of assets in Canada for C$232.9 million (S$244.5 million). On Monday, it had announced the purchase of five senior independent-living assets in Japan for 5.26 billion yen (S$65.8 million). The acquisitions are in line with the media and property group’s strategy of expanding its aged-care and healthcare business in overseas markets with favourable demographics.
Oxley unit in Cambodia to seek compensation from ex-contractor OXLEY Holdings’ subsidiary, Oxley Gem (Cambodia) Co, is planning to seek compensation from its former contractor Sino Great Wall International Engineering Co (SGW) for damages suffered after repeated breaches of its contract. SGW was the main contractor for The Peak, a 55-storey mixed hotel development project in Cambodia. In a filing to the Singapore Exchange on Wednesday, Oxley said: “Unfortunately, due to financial difficulties faced by the parent company of SGW and their continued mismanagement of the project, the project was wrought with significant delays and difficulties. In light of the foregoing, Oxley Gem had called on the two performance bonds provided by SGW for the project.”
CDL chairman optimistic about outlook for 2020 DESPITE the disruption and uncertainty to businesses caused by the Covid-19 outbreak, City Developments Ltd (CDL) executive chairman Kwek Leng Beng is upbeat. “We view the outlook for 2020 with an optimistic prism. With the collective efforts from government, businesses and individuals, the situation will stabilise and recover in time,” Mr Kwek said. The group posted a 12.5 per cent rise in net profit to S$87.7 million for the fourth quarter ended Dec 31, up from S$77.9 million a year ago.
CapitaLand Q4 profit almost doubles to S$926.6m CAPITALAND posted sparkling fourth-quarter results on Wednesday, with net profit almost doubling to S$926.6 million for the three months ended Dec 31 from S$475.7 million previously. But Asia’s largest diversified real estate group disappointed shareholders with an unchanged dividend of 12 cents per share which it said is a prudent measure to enable the group to remain resilient during this period of uncertainty brought on by the Covid-19 outbreak.
CDL mulls Singapore Reit for UK commercial properties CITY Developments Ltd (CDL) is exploring the possibility of floating a real estate investment trust (Reit) on the Singapore bourse holding UK commercial properties. This could happen as early as this year. The group currently owns Aldgate House and 125 Old Broad Street in Central London. “Most likely we’ll try to buy a third commercial property in the UK to give the portfolio a bit more size and diversification before we launch an IPO,” group chief investment officer Frank Khoo said on the sidelines of the group’s fourth-quarter results briefing. Asked about the potential size of the property portfolio for the Reit at flotation, Mr Khoo told BT: “I think for us we’d like to get to about £1 billion AUM (assets under management); so that would be about S$1.8 billion and then if you put in about 40 per cent leverage, you will get to a market cap of about S$1 billion.
As coronavirus outbreak rages on, perceptions of a country’s health security to sway investors’ decision The ability of different countries to effectively deal with the deadly Covid-19 outbreak will serve as a new benchmark for property buyers, say market observers. With the rapidly spreading epidemic providing the stress test for a country’s health security preparedness, there will be some winners and losers among the favoured investment destinations. “After the epidemic, we expect health care to be even more important to buyers,” said Georg Chmiel, executive chairman of property portal Juwai IQI. “Countries like Thailand, the US, the UK, Canada, and Australia, which have good health care systems and highly ranked abilities to react to viral outbreaks, are likely to benefit from an increase in buyer activity.” Chinese investors, one of the biggest sources of cross-border capital in property markets who spent an estimated US$120 billion in 2017, would be more conscious of health security in basing their decision, he added.