Month: March 2025

HPL, a prominent player in the property and hotel industries, is taking steps to expand its global presence with the acquisition of InterContinental Auckland for NZ$180 million ($138.5 million). This marks HPL’s first venture into the New Zealand market and its second acquisition of an InterContinental hotel, following the InterContinental Maldives Maamunagau Resort.

JLL’s Asia Pacific Hotels & Hospitality Group, which advised on the sale by Precinct Properties in New Zealand, notes that this off-market transaction is the largest hotel asset sale ever in the country. This move by HPL follows the recent launch of The Boathouse Tioman, a luxury resort in Malaysia featuring 31 bungalows, and the opening of The Four Seasons Hotel Osaka, a 176-room hotel in Japan, last year.

HPL’s latest acquisition in Auckland is in line with its strategy to expand its portfolio of luxury hotels in key markets throughout the Asia Pacific region. The company’s experienced hospitality management team and strong partnerships with operators such as IHG Hotels & Resorts drive this growth.

“The proposed purchase 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 conveniently connected to the bustling lifestyle precinct Commercial Bay, which opened in January 2024. Guests of the hotel can enjoy stunning views of the Waitematā Harbour, adds Lau.

Although the existing InterContinental Auckland has 139 rooms, there is potential for expansion up to 190 rooms by converting the current office space, should demand require it in the future. HPL is confident that this acquisition will prove to be a valuable addition to their portfolio and contribute to their success as a leading global hospitality company.…

According to recent research by Colliers, institutional investments in real estate in the Asia Pacific (Apac) region totalled US$83.2 billion ($112 billion) in the second half of 2024, an increase of 6% from the previous year. This brings the total investments for the full year to US$155.9 billion, up 12% from 2023. The figures cover the top nine markets in the region: Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.

The steady rise in investments demonstrates the resilience of the Apac real estate market and sets the stage for a strong 2025, according to Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He notes that local investors have been the main driving force behind the growth in key markets such as South Korea, Taiwan, and New Zealand, accounting for over 80% of real estate inflows in these countries in the second half of 2024.

The office sector was the largest contributor to investment volume in Apac, accounting for US$26.5 billion (32%) of the total in the second half of 2024. For the full year, office investments reached US$51.4 billion, up 14% from the previous year. The industrial and logistics sector was the second biggest contributor, with US$22.6 billion in investments in the second half of 2024, accounting for 27% of the total. The sector saw a robust growth of 29% year-on-year, with total investments reaching US$39.4 billion in 2024.

In a significant rebound, the retail sector recorded investments of US$15 billion in the second half of 2024, driven by large deals in Australia and South Korea. Total retail investments for the year stood at US$26.1 billion, a 27% increase from the previous year.

Pilgrim predicts that domestic investors will continue to dominate most markets in 2025. However, he expects offshore investments to increase as investor confidence improves and attractive valuations become available. While the office and industrial segments are expected to maintain their strength, Pilgrim also sees potential growth in the retail, hospitality, and alternative asset classes as investors capitalize on the recovering market and changing consumer trends.

He concludes that with a strong economic outlook and continued policy support, the Apac real estate market is poised for sustained investment activity in 2025.…

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

The student accommodation asset was originally acquired by SC Capital Partners in 2016 for a reported price of A$57 million. This latest sale is a testament to the group’s impressive track record in identifying and investing in prime real estate opportunities.

Spanning over 85,035 square feet, the purpose-built student accommodation boasts 233 beds and a ground-floor commercial podium. Its prime location within a mere 600 meters of the UNSW Kensington Campus makes it a highly desirable property for students and faculty alike. The accommodation component of the property is currently fully leased to UNSW, with a fresh 20-year master lease signed in 2019 to ensure long-term stability.

This sale is yet another sign of the growing demand for quality student accommodation in Australia, with institutions such as UNSW recognizing the value in investing in such assets. With such a strong show of confidence from a renowned institution, it is clear that SC Capital Partners has made a wise and lucrative investment with this property.…

CLI CEO Lee Chee Koon has been named as the ‘Industry Figure of the Year’ for Asia Pacific at the prestigious PERE Global Awards 2024. CLI, a subsidiary of CapitaLand Investment Limited, also received the runner-up award for ‘Firm of the Year’ in the same region.

These annual awards, organised by the London-based publication covering private equity real estate markets, recognise top firms, individuals and notable deals from the past year. For the 2024 edition, the winners were chosen by a panel of PERE journalists, a change from the previous format where readers voted for the shortlisted nominees.

CLI expressed their delight in a press release on March 4, highlighting CEO Lee’s contributions in driving the company’s transformative growth and his significant impact on the private real estate industry in the Asia Pacific region. Lee took over as CapitaLand’s group CEO in September 2018, and has since made strategic moves such as the acquisition of Ascendas-Singbridge in 2019 and the 2021 restructuring of CapitaLand Group, resulting in the listing of CLI and the privatisation of its real estate development arm, CapitaLand Development.

In addition to these achievements, CLI also invested in real estate investment manager SC Capital Partners Group in 2024 and acquired Wingate Group Holdings’ property and corporate credit investment management business. With a target of managing $200 billion in funds by 2028, CLI is on track towards its goal.…

Shares of City Developments, which has been embroiled in a recent boardroom tussle that has now gone to court, saw a drop of 28 cents, or 5.47%, when trading resumed today. This came after the company’s shares were halted on Feb 26 and a scheduled results briefing was cancelled at the last minute. The business community in Singapore was taken by surprise when news broke of a falling out between executive chairman Kwek Leng Beng and his son, group CEO Sherman Kwek.

“Shareholders should note that the news reports have mentioned various allegations made regarding the disagreement within the board. At this time, the company will not comment on the validity of these allegations, as many of them are subject to the ongoing court proceedings related to the application,” City Developments stated on March 3rd.

Despite the internal conflict, City Developments assures that its business operations remain unaffected and fully functional. The current situation has not disrupted its daily operations. Sherman Kwek remains the Group CEO until the board passes a resolution to change company leadership.

However, the boardroom feud and family squabbles have caused analysts to downgrade their calls and lower their target prices for the company. Adrian Loh of UOB Kay Hian downgraded the stock from “buy” to “hold” on Feb 27th, citing that the FY2024 figures fell short of both his and consensus estimates. The news of the public leadership tussle overshadowed the strong assets owned by the company, both in Singapore and globally. Loh cautions that the stock may not perform well with this issue hanging over its head. He has revised the target price to $4.60 from $7, using a P/B ratio that is two standard deviations below the five-year average of 0.72 times.

Derek Tan and Tabitha Foo of DBS Group Research, on the other hand, see some positives in this predicament. Though the current situation dampens investor sentiment, the fundamentals of the company are strong, with key management still running the show. The company is currently trading at an attractive valuation of 0.5 times P/B and 0.3 times P/RNAV, lower than the lows seen during the Global Financial Crisis. They have lowered their target price from $10.50 to $6.70, based on a 60% discount to RNAV compared to the previous 35%. The sector average is currently at a 50% discount. They believe that the resolution of the board dispute and a renewed focus on driving shareholder returns and profitability will lead to a gradual recovery in share price.

OCBC Investment Research maintains a “buy” call on the company but with a reduced fair value of $6.02, down from $6.57. The new fair value is based on a higher RNAV discount of 60% compared to 45% previously. They expect uncertainties over CDL’s outlook and the potential overhang on its share price until the matter is resolved.

Though it is hard to quantify the potential impact of this episode, Brandon Lee of Citi Research believes that the uncertainty surrounding the board and company leadership, as well as the lengthiness of a potential court case, may be an overhang on the share price in the short term. He recalls that back in Oct 2020, CDL’s share price dropped by a fifth following Leng Peck’s resignation. Nonetheless, Lee notes that CDL is relatively under-owned by investors, and a positive resolution of the boardroom tussle could be a major share price catalyst in the long run. Lee has a buy call with a target price of $9.51, based on the belief that 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” resulting from years of disagreements and underperformance among certain members of the Kwek family. They hope for a positive resolution and family reconciliation, but they have lowered their target price from $6.05 to $4.85, based on a 60% discount to their RNAV estimate of $12.10 per share.…

Perpetual (Asia) Limited, the trustee of Elite UK REIT, has sold Crown Buildings, Caerphilly located on Claude Road in Wales for GBP710,000 ($1.2 million). This price represents an 18% premium over the property’s value at the end of 2024, which was estimated to be GBP600,000 based on an independent valuation by CBRE.

Crown Buildings, Caerphilly was previously valued at GBP530,000 at the end of 2023. The net proceeds from the sale will be used to pay off outstanding borrowings for Elite UK REIT. The property has a total gross floor area of 20,712 sq ft, according to the company’s website.

Following a successful preferential offering in January 2024, Elite UK REIT was able to reduce its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Its net gearing ratio also decreased from 47.5% to 42.5% during the same period.

The company has no debt maturing in 2025 and 2026, and its next refinancing is not due until 2027.…