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Despite a weaker global economy, Singapore-based investors pumped in at least S$3.8 billion in overseas markets in Q3 2015, showed DTZ data.
Of these, S$1.2 billion were invested in the United Kingdom and S$1.8 billion in Australia.
Notable deals during the third quarter include Frasers Commercial Trust’s S$232 million purchase of 357 Collins Street (pictured) office building in Melbourne, Sinarmas Land’s S$551.3 million acquisition of Alpha Beta Building in London, the S$300 million acquisition by Ho Bee Land of 39 Victoria Street in London and Mapletree Logistics Trust’s S$261.5 million acquisition of a premium freehold cold store warehouse in Sydney.
“Most of these Singapore-based investors have sufficient exposure to Singapore’s real estate market, and most are seeking higher returns and diversification opportunities in other countries,” said DTZ.
In Singapore, private investment for office space climbed from S$465 million in Q2 2015 to S$828 million in Q3 2015.
Offices accounted for around 30 percent of the total real estate investment in Singapore, including the S$380 million collective sale of Thong Sia building to Sin Capital Group and the sale of three strata floors of Prudential Tower for S$100.6 million to China Shipping.
And while investment sales tend to be slower in Q4 than in Q3 historically, Dr Lee Nai Jia, DTZ Regional Head (SEA), Research, does not expect this to happen this year.
He said he expects the pending sale of Asia Square Tower 1 to boost this year’s Investment sales by around S$3.5 billion.
“Additionally, there are several major real estate deals in the pipeline that include, CPF building along Robinson Road and Robinson 77, which will boost investment sales above S$12 billion if the deals go through,” he said.
“On the whole, we expect total investment sales to hover around the range of S$14 billion to S$17 billion.”
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg.