INVESTMENT SEPTEMBER 2019 MARKETBEAT

SECTOR $3.0b $6.3b $4.1b VOLUME RESIDENTIAL COMMERCIAL INDUSTRIAL

KEY TAKEAWAYS

• The total investment volume skyrocketed to $16.7 billion in 3Q2019, more than the volume of $11.2 billion for 1Q2019 and 2Q2019 combined.

• The commercial sector led the way with $6.3 billion, followed by the industrial sector with $4.1 billion. The residential sector accounted for $3.0 billion, while the hospitality sector also had a strong showing of $2.9 billion.

• The largest private transaction was Allianz Real Estate and Gaw Capital Partners’ acquisition of DUO Tower and Galleria from M+S for $1.6 billion.

3 Q 2 0 1 9 Investment Volume (S$ billions)

Sector Public Private Total Residential 1.9 1.1 3.0 Commercial 0.0 6.3 6.3 Industrial 0.0 4.1 4.1 Hospitality 0.0 2.9 2.9 Mixed/Others 0.0 0.5 0.5 Overall 1.9 14.9 16.7

Note: Figures may not tally precisely due to rounding.

Source: Cushman & Wakefield Research

Annual Investment Volumes (S$ billions)

40

35

30

25

20

15 Volume b) (S$ 10

5

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q2019 YTD

A Cushman & Wakefield Research Publication Source: Cushman & Wakefield Research www.cushmanwakefield.com

Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. SINGAPORE INVESTMENT MARKETBEAT SEPTEMBER 2019

Surge in Commercial Volume Due To Big Ticket Office Transactions Economic Indicators 12-Month There was a surge in commercial volume due 1Q19 2Q19 Forecast to big ticket office transactions. In the largest GDP Growth 1.1% 0.1% office transaction of the year, Allianz Real Estate and Gaw Capital Partners acquired CPI Growth 0.5% 0.7% DUO Tower and Galleria for $1.6 billion. Another transaction in Bugis involved Angelo Unemployment 2.2% 2.2% Gordon and TCRE Partners purchasing Bugis Source: Ministry of Trade & Industry Junction Towers for $547.5 million.

Other major office deals include Arch Capital Investment Volume – Management acquiring Anson House for Public vs. Private $210.0 million, Sun Venture buying 71 Robinson Road for $655.0 million, and 20 CapitaLand purchasing Plus for $530.0 million. 15 REITs drove industrial investment volume 10 during the quarter. Mapletree Investments

injected Mapletree Business City II into 5 Volume (S$ b) (S$ Volume Mapletree Commercial Trust for $1.55 billion, 0 and Keppel DC REIT continued to grow its 3Q18 4Q18 1Q19 2Q19 3Q19 portfolio by purchasing 1-Net North Data Public Private Centre for $201.8 million and a 99% stake in Keppel DC Singapore 4 for $384.9 million. Source: Cushman & Wakefield Research

The hospitality sector is also heating up. Indonesian tycoon Bachtiar Karim bought Investment Volume – Darby Park Executive Suites for $160.0 Sector Breakdown million, while a JV by Hong Kong financial 20 services firm AMTD Group and Far East 15 Consortium International acquired Oakwood Premier OUE Singapore for $287.1 million. 10

The 2019 YTD volume currently amounts to 5 $28.0 billion due to the robust Q3 contribution. b) (S$ Volume 0 DATA It is increasingly likely that the 2019 full-year 3Q18 4Q18 1Q19 2Q19 3Q19 INTO volume will surpass 2018’s volume of $34.0 ACTION Residential Commercial billion as investor demand for assets in safe Industrial Hospitality havens like Singapore increases amidst Mixed/Others A Cushman & Wakefield Research Publication greater unrest in Hong Kong and the Source: Cushman & Wakefield Research www.cushmanwakefield.com escalation of the US-China trade war.

Research Christine Li Significant Private Investment Transactions 3Q2019 Head of Research Singapore & South-east Asia PROPERTY PURCHASER VENDOR SECTOR PRICE +65 6232 0815 [email protected] Allianz Real Estate & M+S Office $1.6 billion DUO Tower and Galleria Gaw Capital Capital Markets Shaun Poh 71 Robinson Road Sun Venture Commerz Real Office $655.0 million Head of Singapore Capital Markets Angelo Gordon & +65 6232 0882 Bugis Junction Towers Keppel REIT Office $547.5 million [email protected] TCRE Partners

Plus (former GSH Plaza) CapitaLand Fullshare Holdings Office $530.0 million

3 Church Street Mapletree Commercial #09-03 Hub Mapletree Business City II Mapletree Investments Industrial $1.6 billion Singapore 049483 Trust

Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.