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The manager of CapitaLand Ascendas REIT (CLAR) has recently announced their divestment of the Singapore industrial building KA Place for a consideration of $35.38 million. An April 20th filing by the REIT’s trustee, HSBC Institutional Trust Services (Singapore), revealed that a sale and purchase agreement had been signed to sell KA Place to KA Place SPV 1.

This figure of $35.38 million represents a 219% premium to the purchase price of $11.1 million in March 2005, and a 55% premium to the property’s market valuation of $22.8 million as at December 31st 2022. The building, located at 159 Kampong Ampat, is a seven-storey high-specification industrial building with a second-story carpark, and a total gross floor area of 10,163 sq m, with a remaining land lease tenure of 35 years.

The manager of CLAR has stated that this divestment is part of their proactive asset management strategy aimed at improving the quality of their portfolio, and optimizing returns for unitholders. They further stated that “after careful evaluation, the manager has decided that it is an opportune time to divest the property and redeploy the capital towards value-adding opportunities.”

If the divestment were completed on January 1, 2022, the projected pro-forma impact on CLAR’s net property income (NPI) and distribution per unit (DPU) for the financial year ended December 31, 2022 would be a drop of $0.92 million and 0.005 Singapore cents, respectively.

Net proceeds after divestment costs are fixed at $30.65 million, and CLAR’s manager plans to use these funds to finance committed investments, repay existing debt, extend loans to subsidiaries, fund working capital, or make distributions to unitholders. Using the net proceeds to repay CLAR’s borrowings as at December 31, 2022, their aggregate leverage will be reduced from 36.3% to approximately 36.2%.

The proposed divestment is expected to complete within the second quarter of 2023. At that time, CLAR will own 229 properties, comprising 96 in Singapore, 36 in Australia, 48 in the United States, and 49 in the United Kingdom and Europe.

In accordance with the trust deed dated October 9, 2002 constituting CLAR, the manager is entitled to a divestment fee of 0.5% of the sale consideration of the property, payable in cash.

Units in CapitaLand Ascendas REIT closed at $2.88 on April 20, representing a 3 cent rise, or 1.05%, from the previous day’s closing price.

The proposed divestment of KA Place reflects CLAR’s continued commitment to optimizing returns for their unitholders, and improving their portfolio quality. Assuming completion of the divestment, the net proceeds can be recycled to finance committed investments, and, following repayment of their borrowings, the aggregate leverage will be significantly reduced. Units in CapitaLand Ascendas REIT closed at $2.88 on April 20, a 3 cent rise from the previous day.…

The lodging business unit of Capitaland Investment’s, The Ascott Limited, has set its sights on doubling its fee revenue to over $500 million over the next five year period. This target is set off the company’s FY2022 fee earnings of $258 million, which is their highest on record so far. Indeed, they reported a 36% year-on-year increase in the same year with their record property openings and signings.

Furthermore, Ascott has achieved their goal of securing 160,000 units by 2023. They recorded 4,000 new unit signings during the first quarter of FY2023.

Through their asset-light strategy, Ascott has doubled its units every five years, expanding from 20,000 units in 2008 to over 160,000 units. This impressive growth is now yielding financial dividends, so the company is leaning on driving even greater fee revenue in the coming five years. With over 80% of its units under management and franchise contracts, up from 43% in 2008, the firm is hopeful of greater success in this regard.

CEO of Ascott and CLI Lodging, Kevin Goh, said: “We will secure more management and franchise contracts for prime properties that generate higher quality fees, and leverage our strong brand equity and direct distribution channels to deliver greater value to property owners and customers.”

To further build upon their success, Ascott plans to expand its product offering which spans serviced residences, hotels, co-living and senior living brands at a low to luxury scale. Their fee revenue growth is expected to be bolstered by new property openings as well as new signings at an estimated 8-10% annual net room growth rate in the coming five years.

As such, the company is well-positioned to achieve its new growth target – all the while delivering more value to both property owners and customers.…

and Greater Southern Waterfront on EdgeProp.sg
over the past three days, close to 4,000 people have come to view the Blossoms by the Park sales gallery at Slim Barracks Rise in Singapore’s one-north district. This according to Lim Yew Soon, managing director of EL Development, who noted that most of the visitors appear to be locals.

The private condo is composed of 275 premium units, ranging from one to four bedrooms in size. EL Development are hoping their launch on April 29th will be a success and have set prices starting from $1.291 million ($2,352 psf) for the one-bedroom plus study units, $1.499 million ($2,211 psf) for two-bedrooms, $1.585 million ($2,198 psf) for two-bedroom plus study, $2.082 million ($2,276 psf) for three-bedroom dual-key units, $2.279 million ($2,183 psf) for three-bedroom units, $2.921 million ($2,243 psf) for four-bedroom units and $3.335 million ($2,213 psf) for four-bedroom premium units.

Ken Low, managing partner of SRI, the project is estimated to have an average sale price of between $2,350 to $2,400 psf. He believes the project will mainly be of interest to investors because of several attractive factors of the location. Such as a three-minute walk to Buona Vista MRT Interchange Station, a five-minute walk to The Star Vista mall, one-kilometer to Fairfield Methodist School and five-minutes to the Greater Southern Waterfront.

Check out the latest listings near Blossoms by the Park, Slim Barracks Rise, One-North, Buona Vista MRT Interchange Station, Fairfield Methodist School and Greater Southern Waterfront on EdgeProp.sg

Investors, who are potentially interested in the Blossoms By The Park project, may be easily drawn in by the project’s location. Not only does it have great accessibility to the Buona Vista MRT Interchange Station, The Star Vista mall is just a mere five minute walk away. Plus, Fairfield Methodist School and the Greater Southern Waterfront are no longer than a kilometer or five minute walk, respectively.

In conclusion, given the large number of interested viewers over the last three days and the advantages the location offers, EL Developement’s Blossoms by the Park launch looks likely to be successful.…

An opportunity to invest in a pair of freehold shophouses has been made available in Singapore with an EOI exercise for the properties located at 5 and 7 Jasmine Road, off Upper Thomson Road. The guide price for the two-storey shophouses set at $10.5 million, or $2,665 psf on the floor area.

The properties have a combined floor area of about 3,940 sq ft and a total site area of approximately 3,650 sq ft. As per the 2019 Master Plan, they are zoned for “residential with commercial at 1st storey” use and have a gross plot ratio of 3.0, with a building height control of up to four storeys.

The shophouses are conveniently located, around 50m away from Thomson Plaza shopping mall and adjecent to Adelphi Park Estate, a landed-housing enclave, with access via major roads and expressways such as Upper Thomson Road, Lornie Road, Thomson Road, Braddell Road, Marymount Road and the Pan Island Expressway. Moreover, they are just a minute’s walk away from Upper Thomson MRT Station (situated on Thomson-East Coast Line), with Caldecott MRT Station (an interchange with the Circle Line) being just one stop away.

According to Steven Tan, Managing Director of capital markets and investment sales at ERA Realty Network, which is the exclusive marketing agent for the shophouses, the units offer potential for immediate rental income and long term capital appreciation.

The buyer could also consider redeveloping the adjoining shophouses into a four-storey residential building with commercial space on the first storey, subject to the approval of the authorities. It could have a gross floor area of about 10,950 sq ft.

The properties are close to a variety of amenities, including eateries, cafes and prestigious educational institutions, making it a prime location. Moreover, the units are being sold with existing tenancies and on an “as is where is” basis.

The EOI exercise for the two Jasmine Road shophouses will close on May 8th at 3pm.

This is an ideal opportunity for investors looking to purchase a freehold commercial property and for those who are interested in potential redevelopment plans. Considering its accessibility, proximity to amenities and possible redevelopments, buyers can look forward to the potential for high returns in the long run.…