Singapore CBD Office Rents Jump Nearly 15% and More Asia Real Estate Headlines

Singapore jumps to the top of Asia’s real estate headlines today as a new report shows office rents rising nearly 15 percent in Southeast Asia’s financial capital, and a major Singaporean developer makes news as its net profit falls by more than 40 percent.

The city-state’s northern neighbour also gets some ink as Malaysia’s sovereign fund is said to be be ready to announce a retreat from some overseas deals after the 1MDB debacle.

Singapore Office Rents Rise at Fastest Pace Since 2010

Grade A offices in the Central Business District (CBD) posted the highest annual rental growth since 2010 due to tightening vacancies, according to real estate services firm Colliers International.

The annual growth for last year was 14.9 per cent, compared with 22 per cent in 2010 after the global financial crisis, said Colliers in a statement yesterday. CBD Grade A office rental growth was 2.3 per cent in 2017. Read more>>

Malaysian Sovereign Fund to Exit Overseas Assets

Malaysian sovereign wealth fund Khazanah Nasional will unveil a plan this month to deliver more cash to the government by pruning its stakes in non-strategic assets and dialing back its offshore presence in spots such as London, sources told Reuters.

This underlines the urgent need for Prime Minister Mahathir Mohamad to raise money for government coffers, depleted by a fiscal deficit and a massive debt from a multi-billion dollar scandal at state fund 1Malaysia Development Berhad (1MDB). Read more>>

Singapore’s Perennial Sees Net Profit Drop 42%

Higher finance costs took a toll on Perennial Real Estate Holdings’ fourth-quarter earnings, as net profit fell 42 per cent to S$16 million, even as revenue rose by almost 44 per cent.

Earnings per share (EPS) for the three months ended Dec 31 shrank to 0.96 Singapore cent, from 1.66 Singapore cents a year earlier, the real estate and healthcare player announced on Wednesday before the market opened. As at 3.25pm on Wednesday, Perennial shares were trading at S$0.65 apiece, down 1.53 per cent, or one Singapore cent. Read more>>

Fosun Drops Plan to Acquire 25% Stake in Japanese Theme Park Operator

Huis Ten Bosch Co. is no longer planning to sell shares to China’s Fosun Group, the theme park’s owner H.I.S. announced on Tuesday.

Huis Ten Bosch in December said it was in talks to sell nearly 25% of its shares to the Chinese leisure conglomerate. The theme park expected to benefit from more Chinese visitors, while Fosun reportedly had plans to open similar facilities in China. But negotiations “did not result in an agreement,” H.I.S. said. Read more>>

Hong Kong Residential Rents Could Be on the Way Up in 2019

Hong Kong renters hoping for a prolonged bout of deflation could be in for disappointment in the next few months as data shows rental prices may be about to round the bottom, bringing an end to a soft patch that started in August.

On average, residential rents dropped 0.3 per cent to HK$35.8 per square foot (US$4.56) in January from December, the smallest contraction in the past five months, according to data released by Centaline Property Agency on Wednesday. Read more>>

Japan’s Don Quijote Tilts at Retail Foothold in Hong Kong

Japanese discount megastore Don Quijote is set to open its first Hong Kong location in the middle of this year, occupying a basement location in Tsim Sha Tsui, in a bid to tap local consumers and booming growth in mainland tourism.

The Tokyo-based chain, known for its diverse product offerings, will move into 15,000 sq ft basement space of Mira Place Two, according to sources. Read more>>

New Kwok Generation Debuts on HK Rich List

Following the death in October of billionaire property mogul Walter Kwok at age 68, his two sons—Geoffrey and Jonathan—inherited their father’s fortune, including a stake in Sun Hung Kai Properties, that helped put them on this year’s list at No. 15. Their 89-year-old grandmother Kwong Siu-hing, Walter’s mother and widow of Sun Hung Kai’s founder Kwok Tak-seng, also joins the list for the first time at No. 5.

The brothers co-inherited a 7.3% stake in Sun Hung Kai, which is Hong Kong’s largest property firm by market capitalization, at $49 billion. Elder brother Geoffrey, 33, has an additional 8.9% stake held in a family trust controlled by Kwong and is on the company’s board as nonexecutive director. Through the trust, Kwong controls 27% of Sun Hung Ka, according to the latest exchange filings in April 2018. Read more>>

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