The increasing use of debt, or leverage, in Singapore Real Estate Investment Trust (S-Reit) funding mixes could pose risks to the sector, said Fitch Ratings. According to a report on the S-Reit sector by the ratings agency, these risks include refinancing risk and exposure to interest-rate shocks. Fitch added that "the competition for assets that results from the use of leverage will put downward...
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Ascendas Real Estate Investment Trust (A-Reit) said yesterday it will help fund two industrial property purchases from a private placement worth S$406.4 million. Due to strong demand, it will sell 160 million new units — up from 140 million — to institutional and other investors at S$2.54 per unit, a 3.5 per cent discount from the volume-weighted average price of S$2.6328 on Thursday. The proceeds...
Mapletree Greater China Commercial Trust (MGCCT) - Singapore's largest share sale in two years - jumped by as much as 12.4 per cent on its trading debut on Thursday. The REIT, the fourth sponsored by Mapletree Investments, opened at S$1.02 and closed the session at S$1.03 - some 10.7 per cent higher than its initial public offering price of S$0.93 per unit. The REIT was nearly 30 times oversubscribed and...
The initial public offering of Singapore's largest real estate investment trust has been fully snapped up. Units of Mapletree Greater China Commercial Trust is nearly 30 times subscribed at the close of the public offer. The Reit offered a total of about 776.6 million units at 93 cents each, raising some S$1.7 billion. There was strong demand for both the placement and public tranches. And even the...
With an expected slowdown in the property market at home, homegrown developer City Developments (CDL) is now looking to diversify more of its assets beyond Singapore. While CDL's mid-priced condominiums like those at the Echelon in Alexandra should continue to see demand, the same cannot be said for its high end properties. And to push sales in this segment, CDL said it is coming up with new strategies...
Overseas Union Enterprise (OUE) is planning to raise up to S$1 billion from the listing of its hospitality assets in Singapore this year, Dow Jones Newswires reported, citing two people with knowledge of the deal. OUE could launch an initial public offering for a hospitality-focused real-estate investment trust (REIT) in the third quarter of the year, the sources said, according to the report. A...
The stage has been set for Singapore's largest initial public offering of a real estate investment trust (REIT). Mapletree Greater China Commercial Trust has locked in a top price of 93 cents a share for its IPO, and it will raise up to S$1.7 billion from the listing. The offering is Singapore's largest IPO in two years, since Hutchison Port Holdings Trust raised US$5.5 billion in March 2011. It is also...
Landlords of private homes may see the rental market softening when higher property taxes kick in next year, as these investors grapple with higher holding costs. Owning luxury or investment homes will incur higher property taxes starting January 2014. For private homes not occupied by owners, new marginal property tax rates of 12 to 20 per cent will be levied in addition to the current 10 per...
CapitaLand Group's chief executive, Lim Ming Yan, expects further moderation in the Singapore's real estate market this year, and is targeting China as a key profit centre. Some analysts, however, warn that economic and political uncertainty in China may limit CapitaLand's pricing capability. CapitaLand will be scouring for new projects in China and its home base in Singapore, where a government-driven...
The Real Estate Developers' Association of Singapore (REDAS) said property developers are feeling anxious as the latest round of cooling measures took effect last month. Singapore's top property developers gathered on Friday to celebrate the Lunar New Year. Newly-elected REDAS president Chia Boon Kuah told a crowd of 500 that property developers will continue taking part in land bids, which form their...