Singtel’s Malaysian JV has broken ground in Johor state
The seemingly unlimited power and water resources of Malaysia’s Johor state are on display again today as a Singtel joint venture announces a 64MW data centre project near the Singaporean border. Also in the news, Keppel DC REIT lowers its distributions to allow for losses on its Guangdong assets and an influx of new arrivals are seen boosting Hong Kong residential rents.
Singtel’s Nxera Breaks Ground on 64MW Malaysian JV Data Centre
Singtel’s Digital InfraCo’s data centre arm Nxera, in collaboration with Telekom Malaysia, has commenced construction on a data centre campus in Iskandar Puteri in the Malaysian state of Johor on 25 July.
This 64MW data centre campus is designed to be hyperconnected, sustainable, and AI-ready, and follows last month’s signing of a joint venture between the two companies to develop data centres across Malaysia. The Iskandar project is expected to open for business in 2026. Read more>>
Keppel DC REIT Lowers Distributions to Allow for Losses From Guangdong Data Centres
Keppel DC real estate investment trust posted a 9.9 percent drop in distribution per unit (DPU) to 4.549 Singapore cents for the first half of the financial year ended June 30, from 5.051 cents a year ago.
The manager attributed the lower DPU to loss allowance for the REIT’s data centres in Guangdong in China, higher finance costs and depreciation of foreign currencies against the Singapore dollar. However, this was partially offset by a S$13.3 million ($9.9 million) settlement received in relation to a dispute with DXC Technology Services Singapore, and “positive reversions and escalations” which contributed to an increase in rent. Read more>>
New Arrivals and Mainland Students Seen Boosting Hong Kong Residential Rents
Rents may soar to record levels this year in Hong Kong, as a fresh crop of incoming students and talent immigrants spur demand for housing, according to the estimates of one of the city’s biggest real estate agency networks.
Housing rents may increase by 8 percent this year, said Midland Realty. The average monthly rent of HK$36.76 ($4.7) per square foot reported in June was merely 4 percent lower than the June 2019 peak, making it likely for the record to be refreshed within the year, said Midland’s Hong Kong and Macau residential division chief executive Sammy Po Siu-ming. Read more>>
Singapore Office Rents Rose 3.1% in Q2 Says URA
Office rents in the central region of Singapore rose 3.1 percent in the second quarter of 2024, reversing a 1.7 percent decline in the previous quarter.
Rents rebounded in Q2 despite limited relocation activity, as occupiers of quality buildings renew their leases at higher rates, market watchers said. The April to June increase came after office rents declined 1.2 percent in the first quarter. Read more>>
Back-Office Hubs Growing India Office Footprints
Global Capacity Centres are expected to occupy 26 million square feet (2.4 million square metres) of office space in India by 2027 from 19.69 million square feet in 2023, according to a report by Knight Frank and 3AI.
The joint report stated that GCCs completed 6,667 leasing deals across eight major Indian cities from 2018 to 2023, marking a 16 percent increase in transaction activities from 2018, underscoring India’s role in process enhancement and business innovation. Read more>>
Retail Rents in Sinagapore’s Core Districts Stayed Steady in Q2
Rents for retail space in Singapore’s central region remained unchanged in the second quarter of 2024, after a 0.4 percent decline in Q1 2024.
Islandwide, the retail vacancy rate tracked by the Urban Redevelopment Authority fell marginally by 0.1 percentage point to 6.6 per cent in Q2, compared with Q1, data released on Friday (Jul 26) showed. Read more>>
Indonesia Expands Batang Industrial Park to Lure Manufacturers Away From China
President Joko “Jokowi” Widodo on Friday launched the second phase of an industrial complex in Central Java intended to attract investors looking to diversify their supply chains away from China.
The Batang integrated industrial park already hosts nearly 20 companies in 10 percent of its total area of 4,300 hectares, including South Korea’s LG Energy Solution and glass maker KCC Glass, and they have started construction or have pledged to build factories there. President Jokowi said companies have invested Rp 14 trillion rupiah (US$858 million) so far. Read more>>
SGX-Listed First REIT Distributions Dip on Currency Exchange Challenges
First Real Estate Investment Trust on Friday posted a distribution per unit (DPU) of S$0.012 for the first half ended Jun 30, 2024, down 3.2 percent from the same period a year before.
The manager attributed the drop in the distributable amount to the depreciation of the yen and rupiah against the Singapore dollar. On a local currency basis, however, rental and other income rose 4.4 percent year on year for Indonesia properties, 2 percent on year for the Reit’s nursing homes in Singapore; income from nursing homes in Japan “remained stable”. Read more>>
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