Cromwell E-REIT Buying Danish Warehouse and More Asia Real Estate Headlines

In today’s roundup of regional news headlines, SGX-listed Cromwell E-REIT picks up a Copenhagen logistics asset, a Singapore condominium goes up for en bloc sale at a price of $689 million, and an Indian banking billionaire lines up investors for a real estate fund focused on his country’s residential market.

Cromwell E-REIT to Acquire Copenhagen Logistics Asset for $15.5M

Singapore-listed Cromwell European REIT on Tuesday announced its acquisition of a logistics asset in Copenhagen for DKK 117.4 million ($15.5 million).

The acquisition consideration represents a discount of 7 percent to the asset’s independent valuation of DKK 126.2 million as of September. Cromwell E-REIT’s manager does not expect the transaction to have a material effect on the trust’s net tangible assets. Read more>>

Loyang Valley Condo Up for Collective Sale at S$980M

Loyang Valley, a 362-unit condominium in Singapore’s Changi area, is making its first stab at a collective sale with a reserve price of S$980 million ($689 million).

The public tender for the 99-year leasehold site will open on Thursday. This comes after the Loyang Valley collective sales committee obtained the 80 percent requisite mandate in September. Read more>>

Asia’s Richest Banker Weighs $1 Billion Real Estate Fund

Kotak Investment Advisors, backed by Asia’s richest banker, Uday Kotak, is looking to raise about $1 billion for a new fund dedicated to investing in India’s residential real estate, according to a person familiar with the matter.

Abu Dhabi Investment Authority could chip about $500 million into the property fund, while Allianz SE could invest about $220 million, said the person, who asked not to be identified discussing private information. Kotak Investment is also in advanced talks with other investors for the fundraising, the person said. Read more>>

Hong Kong’s Plan to Reverse Expat Exodus Disappoints Investors

Hong Kong Chief Executive John Lee’s long-awaited plan to woo back foreign talent and ease housing woes fell flat with investors, underscoring the challenge facing the financial hub as it tries to bounce back from years of turmoil.

In his maiden policy address on Wednesday, the city leader said he would cut property duties for non-permanent residents and relax visa rules to reverse a brain drain prompted by isolationist COVID policies and a crackdown on political dissent. Read more>>

Easing of Cooling Measures No Cure-All for Hong Kong’s Property Market

The potential easing of cooling measures anticipated in Chief Executive John Lee’s maiden policy address will stimulate housing demand but not necessarily lead to a quick rebound in prices because of the prevailing headwinds, according to analysts.

Property developers and agents have been lobbying the government to scrap legacy stamp duties. Read more>>

GIC Boss Says Global Recession Scenario Possible

Singapore sovereign wealth fund GIC, one of the world’s biggest investors, said it is factoring in the potential for a global recession and is prepared to stress-test its portfolio if need be.

GIC chief executive Lim Chow Kiat told Reuters in an interview that rising inflation poses a big risk and that central banks need to get it under control to ensure global economic stability. Read more>>

SG Luxury Condo Sales Hold Up in Q3

Demand for luxury condominiums in Singapore continues to hold up, even as sales of top-end Good Class Bungalows soften, Huttons Asia said in its latest report on the luxury market released Tuesday.

According to the report, 110 non-landed new homes with a price tag of S$5 million ($3.5 million) and above were sold in Q3 2022, similar to the previous quarter. The total quantum that buyers forked out for these homes was S$1 billion in the quarter, up 15.5 percent from Q2. Read more>>

No Signs of Cooling for Singapore’s Rental Market in 2022

If there is one word to describe the 2022 rental market in Singapore, it is hot.

The Urban Redevelopment Authority’s Rental Index of Private Residential Properties jumped by 9.9 percent in 2021. Six months into 2022, the rental index spiked by another 11.2 percent to reach an all-time high of 127. Such double-digit increases in the rental index were last seen in 2010, more than 10 years ago. Read more>>

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