Whipping up an Appetite for Coffee Shops Turn to Our Cover Story on Pages 6 & 7
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PROPERTY PERSONALISED MCI (P) 045/08/2019 PPS 1519/09/2012 (022805) Visit EdgeProp.sg to find properties, research market trends and read the latest news The week of July 13, 2020 | ISSUE 941-163 Offshore Gains and Losses Spotlight Under the Hammer As coronavirus fades in Unit at Cavenagh Largest penthouse at Mortgagee sale of three China, homebuyers are Gardens reaps $1.24 mil 15 Holland Hill sold for industrial units at T99 stampeding back in EP4 profitEP 5 $15 mil EP10 in Tuas EP11 Whipping up an appetite for coffee shops Turn to our Cover Story on Pages 6 & 7. The exterior of the coffee shop at Ang Mo Kio Avenue 10, which also has a prominent frontage along the road SAMUEL ISAAC CHUA/THE EDGE SINGAPORE CHUA/THE ISAAC SAMUEL EP2 • EDGEPROP | JULY 13, 2020 PROPERTY BRIEFS CUSHMAN & WAKEFIELD RESEARCH SAMUEL ISAAC CHUA/ THE EDGE SINGAPORE able gross floor area of 115,281 sq ft. The property is connected to major Preliminary investment volume in Singapore ADVERTISING + arterial roads and expressways including MARKETING ADVERTISING SALES Upper Thomson Road, Yio Chu Kang VICE-PRESIDENT, SALES & Road, Seletar Expressway, Tampines OPERATIONS | Diana Lim Expressway and Central Expressway ACCOUNT DIRECTOR | Ivy Hong (CTE). It will be a six-minute drive to DEPUTY ACCOUNT DIRECTOR | Janice Zhu the upcoming Lentor MRT Station on SENIOR ACCOUNT MANAGER | the Thomson-East Coast Line. Pang Kai Xin Meanwhile, a pair of strata industri- ACCOUNT MANAGER | Ryan Wang al units at 205 Henderson Road, with- PUBLISHER in Bukit Merah, is up for sale at $7.98 The Edge Property Pte Ltd million ($730 psf). 150 Cecil Street #13-00 Singapore 069543 The two freehold units are located Tel: (65) 6232 8688 in the Henderson Industrial Park, and Fax: (65) 6232 8620 occupy a total strata area of 10,926 sq ft. Both units are currently vacant. PRINTER SHUTTERSTOCK KHL Printing Co Pte Ltd The property is connected to ma- some hospitality investment deals, 57 Loyang Drive jor arterial roads and expressways, in- says C&W. “As there is uncertainty Singapore 508968 cluding Jalan Bukit Merah, Henderson over the duration of the crisis and Tel: (65) 6543 2222 Fax: (65) 6545 3333 Road, Ayer Rajah Expressway and CTE, when tourism will return to pre-pan- and is a short 11-minute drive away demic levels, a significant proportion PERMISSION AND from the CBD. of hospitality asset owners could be REPRINTS “Colliers International research seeking to exit the sector in favour of Material in The Edge Property Level 22 of Springleaf Tower spans 10,527 sq ft may not be reproduced in any forecasts the industrial supply to ta- more stable asset classes.” form without the written per off in the next five years. Industri- Christine Li, head of research at permission of the publisher Office floor at Springleaf Tower al assets command higher yields than C&W, Singapore and Southeast Asia, for sale at over $26 mil office and retails assets and remain expects the full-year property invest- We welcome your comments An entire office floor of Springleaf Tow- the most insulated compared to other ment volume to range between $12 and criticism: propertyeditor.sg@ er is on the market for more than $26 asset classes in this pandemic,” says billion and $15 billion. “The sluggish bizedge.com million, according to Savills, which Steven Tan, senior director of capital market sentiment is expected to con- Pseudonyms are allowed but is marketing the property. markets & investment services at Col- tinue, with volume in the second half please state your full name, The office floor on Level 22 spans liers International. of the year unlikely to increase sig- address and contact number for about 10,527 sq ft, and comes with The expression of interest exercise nificantly,” she notes. us to verify. exclusive use of the lift lobby, pantry for both properties will close at 3pm “If the merger between CapitaLand and restrooms with shower facility. on Aug 4. Commercial Trust and CapitaLand Springleaf Tower is one of a few stra- Mall Trust is approved by unithold- ta office developments with Grade-A COLLIERS ers, this would add an additional $10 specifications. Preliminary real estate investment volume in billion to the investment tally, rais- Completed in 2002, Springleaf Tow- Singapore in 1H2020 clocked $6.13 billion, ing the full-year volume to a range of er is located in Singapore’s CBD, in according to Cushman & Wakefield $22 billion to $25 billion,” Li adds. Tanjong Pagar. It has approximately Shaun Poh, executive director, cap- 100m road frontage along Anson Road $6.13 billion, a 45% y-o-y fall from ital markets, at C&W, says: “In this and enjoys underground sheltered ac- 1H2019’s $11.24 billion, according to post-circuit breaker period with the cess to Tanjong Pagar MRT Station. real estate consultancy Cushman & resulting recession, some owners are According to Savills, Springleaf Wakefield (C&W). expected to put up their assets for Tower consistently enjoys a high oc- Preliminary property investment sale to free up liquidity. Funds with cupancy rate and the office floors are volume in 2Q2020 amounted to $3.06 a fixed fund life will also be planning tightly held by a very small number billion, compared to 1Q2020’s $3.07 their exits.” of owners. billion. “As past recessions have shown, The expression of interest exercise Big-ticket real estate commercial there are gains to be reaped when in- will close at 3pm on Aug 13. deals started to return in 2Q2020, vestors enter during the period when resulting in commercial investment the market is going through a repric- volume surging to $2.02 billion from ing to find its balance,” he notes. “We COLLIERS $183.4 million in 1Q2020, notes the are starting to see some market ac- firm. Commercial real estate deals tivity around investors sniffing out Bruce has 16 years of experience in commercial therefore accounted for 66% of prop- these opportunities and these might real estate, including asset management and erty investment volume in 2Q2020. potentially be inked in the later part leasing, across cities in Asia The largest deal in 2Q2020 happened of the year.” when Chinese e-commerce giant Ali- Colliers appoints Stephen baba Group acquired a 50% stake in Frasers Hospitality reopening Bruce as head of real estate AXA Tower for $1.68 billion. Mean- properties worldwide management services while, a significant chunk of 2Q2020 Frasers Hospitality, a member of Colliers International has appointed investment sales — 41% of total in- Frasers Property Group, is reopening Stephen Bruce as head of real estate vestment volume in 2Q2020 — was its properties worldwide. management services for its Singa- attributed to the merger between Throughout the Covid-19 pan- pore business, with effect from July 6. Frasers Logistics Trust and Frasers demic, most of Frasers Hospitality’s As the executive director and head Commercial Trust, where the former properties around the world have re- of real estate management services for acquired the latter for $1.25 billion. mained open. Of its properties that Colliers, Bruce is responsible for lead- Other notable deals included closed in accordance with govern- ing and driving the real estate manage- Perennial divesting its 30% stake in ment and local authority guidelines, ment services business in Singapore, TripleOne Somerset to Shun Tak Hold- those in Germany, France, Switzer- which offers asset management, stra- ings for $155.1 million, and Olayan land and Spain have recently opened ta management, lease tenancy and fa- Group purchasing the retail and banking their doors to guests. The pair of strata industrial units at 205 cilities management services. units of 30 Raffles Place — the former Following the easing of restric- Henderson Road is up for sale at $7.98 million Bruce brings with him 16 years of Chevron House — for $315 million. tions in the UK, serviced residences experience in commercial real estate, Meanwhile, industrial investment in England reopened on July 4, and including asset management, leasing volume in 2Q2020 remained stable at those in Scotland will follow on July Industrial properties in Tagore and management and capital markets $701.3 million, compared to 1Q2020’s 15, with a phased reopening of bou- and Bukit Merah for sale across cities in Asia. volume of $661.4 million. tique lifestyle hotels Malmaison and Two industrial properties are up for sale Prior to joining Colliers, Bruce was Due to the absence of government Hotel du Vin. in Tagore and Bukit Merah, according based in Hong Kong, working for anoth- land sales sites in the quarter, activ- Due to Covid-19, Frasers Hospital- to Colliers International, which is mar- er global real estate consultancy where ity in the residential sector was mut- ity has adopted new measures across keting the properties. he led the firm’s premium asset man- ed with a volume of $305.4 million, its properties, which include deep The property at 12 Tagore Drive is agement and portfolio leasing services. significantly down from $2.02 billion cleaning services, frequent sanitisa- being marketed at a guide price of $55 in the preceding quarter. tion at communal areas, and remote million ($573 psf). It is a four-storey free- Singapore’s preliminary real Unsurprisingly, the hospitality sec- guest concierge services. hold warehouse on a 57,641 sq ft plot. estate investment volume in tor remained quiet with no deals, as On-site restaurants and bars have Under URA’s Master Plan 2019, it is 1H2020 falls 45% y-o-y buyers waited on the sidelines for pric- also provided grab-and-go food options, zoned under “Business 1” with a plot Preliminary real estate investment vol- es to be revised further downwards.