New bonds by Temasek fund could be PE ticket for retail investors
A Temask Holdings-owned fund of private-equity funds is offering a new kind of bond that could eventually grant retail investors access to the asset class. The approximately US$500 million of fixed-rate Singapore-listed bonds will be issued by Astrea III, a US$1.1 billion fund of 34 private equity funds. Bond-holders will contribute about 45 per cent of the fund’s assets, with the remaining 55 per cent in equity coming from Azalea Asset Management, an entity of Temasek, a Singapore government-owned investment company. The fund is being marketed to institutional and accredited investors.
Singapore Real Estate
BlackRock eyes more opportunities in S’pore after Asia Square T1 sale
Fresh from selling Asia Square Tower 1 for S$3.4 billion, or around S$2,700 per square foot (psf) on net lettable area (NLA), to Qatar Investment Authority, BlackRock says it is looking at Singapore for other potential property investment opportunities. “We are looking predominantly at office and retail at the moment. Residential probably has a little bit further to fall because of the taxes (such as the additional buyer’s stamp duty) and the supply implications,” said John Saunders, head of Asia Pacific for BlackRock Real Estate, in an interview with The Business Times on Monday.
Harbour View Gardens up for collective sale
Owners at Harbour View Gardens in Pasir Panjang are hoping to make it second time lucky, after launching the project for collective sale at about $34 million yesterday. About three years ago, the proposed sale of the site to Roxy-Pacific Holdings for $33 million was blocked by the High Court, and the decision was upheld by the Court of Appeal. The basis for the rejection was that the public tender was launched even before the requisite 80 per cent of owners had agreed.
Qatar fund buys Marina Bay office tower for $3.4b
Asia Square Tower 1 in the Marina Bay financial district is changing hands for $3.4 billion – said to be the biggest single-tower real estate deal in the Asia-Pacific region. Sovereign wealth fund Qatar Investment Authority (QIA) has agreed to buy the 43-storey office tower, with a string of blue-chip corporate tenants, from United States private equity giant BlackRock. Analysts say the deal, along with a recent $560 million offer for Straits Trading Building in Battery Road, will likely ignite further interest in prime office assets here. The market has faced oversupply worries.
Jalan Besar Plaza up for sale again, this time for S$380m
Jalan Besar Plaza will be put up for sale again after a bid to sell the building last November failed, real estate group Huttons said on Monday (Jun 6). The 36-year-old building will be launched for public tender on Tuesday at a minimum price of S$380 million, or S$2,115 per square foot per plot ratio. The sale in November had priced the building at S$390 million but did not receive any bids. The 16-storey building has a three-storey commercial podium, 44 residential apartments and 111 commercial units. It is on a freehold site of 4,927.8 metres.
URA bans new eateries at Upper Thomson, Little India and Bedok dining spots due to parking woes
With a slew of old-school restaurants and buzzy new hipster joints, some of which are open round the clock, Thomson Village near Upper Thomson Road is a magnet for diners in the evenings and on weekends. But the area’s popularity has created parking and traffic problems, with multiple instances of illegal parking occurring regularly, and residents in nearby estates complaining about restaurant patrons who park in front of their gates and block their cars.
FCL signals handover of reins to 2nd generation
Frasers Centrepoint (FCL) made a key appointment yesterday, a signal that Thai billionaire Charoen Sirivadhanabhakdi is preparing the way for the second generation to take over the reins of the firm. Mr Charoen’s son Panote, 39, has been appointed group chief executive-designate of the listed property firm, which is focused on residential, commercial and industrial properties, as well as hospitality.
Hatten Group brothers in RTO deal with VGO Corporation
Two brothers from property developer Hatten Group are eyeing a backdoor listing for their privately held Sky Win Management Consultancy through a reverse takeover (RTO) deal with Singapore-listed VGO Corporation. VGO Corp, a mainboard-listed firm now under the watch-list of Singapore Exchange (SGX), announced on Monday that it has entered into a sale and purchase agreement to acquire Sky Win Management Consultancy, the Singapore-incorporated vehicle into which the two vendor brothers – Colin Tan June Teng and Edwin Tan Ping Huang – will pump a target group of firms involved in the business of property development in Malacca and the provision of related marketing and consultancy services in Singapore.
Underwater World Singapore closing
Underwater World Singapore (UWS) will shutter its doors with its last day being June 26, after 25 years of operation, it said on Monday. UWS is a wholly owned unit of Haw Par Corporation. “With the expiry of the lease at Sentosa in less than two years, UWS will have to vacate the facility and cease operations,” it said.
Views, Reviews & Forum
Reits headed for merger wave? Unlikely
Oversaturation, tough operating conditions and valuation gaps have fuelled market talk that listed real estate investment trusts (Reits) could soon experience not just their first merger and acquisition (M&A), but even a wave of consolidation. But targeting the Reit manager is still the preferred route today. Instead of widespread consolidation, the industry is more likely to experience increased privatisations.
Shoppers’ paradise lost? Singapore’s malls suffer as locals, tourists curb spending
After serving only a handful of customers in five hours on a recent weekday, Sam Goh said he was worried the sportswear shop he manages, LIV ACTIV, will eventually join other brands in leaving Singapore’s Orchard Road shopping boulevard. Singapore’s reputation as a shoppers’ paradise, which saw investors pour S$10 billion into retail developments here in the past five years, is taking a pummelling because of weakness in the local economy and a drop in spending by tourists. Commercial space has increased by a tenth in that period, but vacancy rates have risen to 7.3 per cent from 5 per cent and industry analysts expect them to keep rising.
Global Economy & Global Real Estate
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Additional Articles of Interest – Local & Overseas Real Estate
Local & Overseas Real Estate – Full Article