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The retail segment accounted for the second biggest contribution to Singapore’s total investment sales in Q3 despite having recorded only one transaction in the period under review, a CBRE report released on Wednesday (23 September) revealed.
The sole transaction is CapitaLand Mall Trust’s acquisition of Bedok Mall for S$780 million, which makes up 27 percent of the total investment sales volume in the republic in Q3.
Meanwhile, the office sector, which saw the sale of 137 Cecil Street and three strata floors at Prudential Tower for S$100.6 million, accounted for 11 percent of this quarter’s total investment sales. According to CBRE, the office sector is expected to make significant contributions to the total investment sales for the rest of 2015.
The preliminary total investment volume for Q3 stands at $2.86 billion—35 percent lower than the volume in the previous quarter, and 44 percent lower compared that recorded in the same period last year.
Despite this, CBRE said it is “confident that 2015 will be on track to make a sound landing with a few major deals expected to conclude in the next few months.”
Jeremy Lake, Executive Director, Investment Properties at CBRE said: “The pick-up in the last quarter with two to three large transactions should boost the private sector sale numbers and bolster the total investment tally.”
“Foreign investors including those from China and Hong Kong are on the lookout for assets, still confident of the long-term fundamentals that Singapore offers. In fact, we expect a pick-up in the fourth quarter with some deals on the cusp of being concluded,” he said.
Should these deals close successfully, total investment sales for the whole of 2015 should
exceed the firm’s initial projection of $12 billion to $14 billion.
Notably, total investment sales stand at $13.74 billion to date.
Image: Bedok Mall (Source: CapitaLand Mall Trust)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.