Wing Tai Holdings Limited is one of Singapore’s leading property developer and lifestyle company widely recognised for quality in its property developments. Listed in Singapore since 1989, Wing Tai started in Hong Kong as a garment manufacturer in the 1950’s. It later expanded its operations to Singapore and Malaysia in the early 1960’s and entered the property market in Singapore in 1978. Nine years later, Wing Tai became a major property player with a niche reputation for delivering premium developments with innovative design, finishes and workmanship due to its dedicated attention to detail and quality. To date the company has an extensive landbank of choice sites in Singapore and has developed more than 70 projects in the region.
Wing Tai Holdings, together with its regional network of public-listed companies – USI Holdings Ltd in Hong Kong and DNP Holdings Bhd in Malaysia – form WingTai Asia, a corporate entity and brand name synonymous with premier developments, quality products and attention-to-detail services. Together, the WingTai Asia group has developed an increasing presence in a wide range of business activities across the region.
Wing Tai Holdings will lead a multinational consortium to invest in and develop real estate in China worth approximately US$1 billion.In a statement yesterday, Wing Tai said it had entered into a strategic relationship with Germany’s SEB Immobilien-Investment, Forum Partners of the United States, and Israel’s Eilam Group to create a real estate development and investment platform in China. The consortium will inject a total of US$450 million equity into this venture.
Wing Tai will be leading the consortium in identifying business opportunities and managing the venture and its assets. It also said that the venture with the three investors is in line with its strategy to embark on a Pan-Asian drive to increase its overseas earnings.
In April, Wing Tai consolidated its presence in the Hong Kong property market through a share swap that made associate company USI Holdings its flagship company there.
USI has also been developing housing projects in Hong Kong using the Wing Tai Asia brand name.In March, it acquired three million shares of DNP Holdings Berhad in Malaysia, taking its shareholding to 55 per cent.
On its latest venture, Wing Tai chairman Cheng Wai Keung added: ‘We are excited and looking forward to work with these global players in this strategic partnership to enhance value for the respective stakeholders.’
SEB Immobilien-Investment is the real estate and securities investment house of the SEB Group. With fund assets of over 6.9 billion euros (S$14.2 billion) in three mutual funds, it is the fifth-largest provider of open-ended real estate mutual funds in Germany.SEB Asset Management provides new and innovative products whilst at the same time excelling in the fund business by means of information transparency, additional internet services and consistent client orientation.
Choy-Soon Chua, managing director of SEB Immobilien-Investment, said: ‘Joint venture structures with experienced market players such as Wing Tai give SEB optimum access to new and attractive markets and help us achieve diversification in our investments.‘
SEB adds Asia experts
On 1 June 2007, SEB will open its first foreign office in Singapore, expanding its real estate equities and direct investment expertise in the Far East with the help of two proven Asia experts.
Beginning on 1 June 2007, Ken-Ji Kok, formerly a Property Analyst at Paribas Securities in Singapore, will strengthen SEB Asset Management’s real estate equities team, reporting to its head, Thomas Körfgen. Beginning on 1 July 2007, Sunny Tsun will support the SEB funds with direct real estate investments from Singapore. Tsun comes from GIC Real Estate, Singapore’s state-owned investment company. As Senior Vice President, he was responsible for the Asian investment sphere.
The Asia team is expected to grow over the course of the year as it steps up its investment activities.
SEB ImmoInvest acquires class A office building in Singapore
SEB Asset Management’s real estate fund management company has entered one of Asia’s most promising markets with its purchase of the 35-storey “Robinson 77” building in Singapore. The class A office building has 27,450 m² of rental space and 180 parking spaces, and is almost fully let. The main tenants – leasing a combined 40 percent of the building – are Rabo Bank, Michelin Asia Pacific, Royal Sun & Alliance, and Singapore Airlines Ltd.
Real estate on the rise
SEB real estate strategists see a whole host of reasons to accelerate their activities in Asia, above and beyond sustained growth rates. The growing significance of REITs and the heightened presence of foreign investors have led to significant improvements in terms of liquidity and transparency. However, high-quality properties are scarce. This generally makes it impossible to enter a market without the assistance of regional partners who can bridge cultural differences and break through language barriers. “Contact with local players and trust play a key role”, explained Choy-Soon Chua, Managing Director and Asian investment
expert for SEB Immobilien-Investment GmbH, SEB Asset Management AG’s real estate fund company.
As is already the case on the US market, SEB works together with established companies in joint ventures on the Asian market. Pacific Star and Doran Capital have been signed on as asset managers for the key regions China and Singapore, as well as Japan and Korea.
Barbara Knoflach commented: “We have already had extremely positive experiences with local partners in the US, who are able to meet market needs and serve tenants in a professional manner. In Asia, we have identified a wealth of interesting opportunities and strong partners, and are now systematically driving forward our expansion there.”
For the open-ended real estate fund SEB ImmoInvest, entry into the dynamic Asian market is also an argument for diversification. “The real estate cycles in Asian cities are not correlated with those in Europe or the US”, explains Choy-Soon Chua. With its acquisition of the office building in Singapore, the fund is currently invested in 13 countries.
Singapore – an established market with an inviting and open climate
In addition to excellent fundamental market conditions, Singapore is experiencing rising investor confidence, which is in turn providing a lift to the real estate investment market. Singapore is home to Asia’s most transparent financial system, providing a highly inviting and open climate for foreign investment. “The city has recovered from the crises of the past and is working hard to maintain its position in the fierce competition with China and India, which means it is constantly reinventing itself”, explains Chua. There will be a limited number of new office developments in Singapore in the period up to 2010. “We anticipate a shortage of space over the next two years, which will cause rents to rise. Increases of over 30 percent in the next three to five years cannot be ruled out.”
Forum Partners is a global real estate investment management firm with US$2 billion of capital under management on behalf of institutional and individual investors, while the Eilam Group is an Israeli investment company with investments in real estate, infrastructure, finance, capital markets and health care.Since its founding in 2002, Forum has invested in over 50 companies in 19 countries in Asia, Europe and North America. Forum seeks to create innovative property investments and financial solutions across the capital structure, from equity, to hybrids, to debt.
Forum has over fourty investment professionals based in offices in London, Singapore, Hong Kong, Beijing, Seoul, Santa Fe, New Mexico and Stamford, Connecticut. The Firm's Principals have an average of 20 years of industry expertise in a broad range of disciplines, including private and public market real estate investments, securities analysis, investment structuring and capital placement, corporate governance and fiduciary experience. Forum is wholly-owned by its Principals and employees.
No comments:
Post a Comment