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Commerical properties to offer yield-based investments

PropertyGuru

SGX-listed SingHaiyi Group has announced that it will take a 20 percent stake, valued at S$66 million, in a consortium acquiring TripleOne Somerset for S$970 million.

This is the company's first investment in Singapore commercial property.

SingHaiyi TripleOne (SHTPL), a wholly owned subsidiary of SingHaiyi, has inked a letter of participation with Perennial Real Estate Holdings (PREH) to participate as the consortium's second biggest shareholder.

Notably, PREH is leading the TripleOne Somerset acquisition from Gorgeous International Limited.

With a total gross floor area of around 766,550, the 17-storey property comprises two office towers with two floors of retail space and is located adjacent to the Somerset MRT Station in the prime With the residential property market facing challenges brought about by the various government cooling measures, the uncertainty of global interest rates and rising land costs, SingHaiyi Group said that Singapore's commercial property market offers selective opportunities for yield-based investments.

In a release, the group revealed that it is cautiously assessing future land tenders and has embarked on a "value added" strategy in order to create synergies as well as leverage on the experience and expertise of its partners.

The strategy will see the group exploring beyond its current focus, which is the residential sector, to other real estate opportunities in Singapore such as commercial or other sub-sectors.

Notably, the group has already embarked on its maiden foray in commercial property with its acquisition of a 20 percent stake in TripleOne Somerset.

Meanwhile, other projects of the group in Singapore include the Charlton Residences, which was fully sold out in less than four months following its launch in November 2011; Pasir Ris One, 65 percent sold as at December 2013; CityLife@Tampines, sold out within three months from launch in December 2012; and CosmoLoft, which was launched in May 2013.



Nikki De Guzman, Junior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg



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