The Singapore hotel investment market set an all-time record high in 2006 with seven hotel-related transactions topping $1.5 billion.
Jones Lang LaSalle (JLL) Hotels’ managing director (Asia) Scott Hetherington said: ‘Singapore is undoubtedly one of the hottest hotel investment markets in Asia-Pacific last year. The upturn in hotel trading performance has simultaneously attracted intense interest in Singapore hotel assets and enticed some hotel owners to capitalise on the aggressive investor market.’
A JLL Hotels report reveals that for the Asia-Pacific, total transaction volume in 2006 was around US$5.25 billion. JLL Hotels is projecting hotel investments to exceed US$7 billion this year.
In Singapore, JLL Hotels’ senior vice-president (investment sales) Tom Oakden says it brokered three deals here - InterContinental Hotel Singapore, Grand Plaza Parkroyal, and a third deal which it could not disclose.
The seven hotel-related transactions here last year topped $1.5 billion, setting an all-time record high.
Mr Oakden also said that JLL Hotels is currently brokering another hotel transaction here. Interestingly, he added that hotel investment sales are not likely to top 2006’s as most of the ‘trophy assets’ have already been acquired. Owners of other hotels here were also not prepared to sell, he added.
JLL Hotels executive vice-president (Singapore) Chee Hok Yean noted that hotel property values had increased an average 10 per cent between 2005 and 2006 and pointed out that certain properties increased by as much as 30 per cent.
Ms Chee added that operating margins have also been improving, hitting 30 per cent in 2006 compared with the 15 per cent low in 2003. For 2007, JLL Hotels also expects average daily rates (ADR) to increase by 10-15 per cent for five-star hotels.
Capital inflows in Asia-Pacific have increased but yields have consequently been compressed. For Singapore, it said hotel yields are between 5-6 per cent.
‘We expect to see more transactions in more markets throughout 2007 as investor interest spreads into new markets, especially China, India, Vietnam and Thailand, although Singapore, Hong Kong and Tokyo are expected to remain investment hotspots in 2007,’ added Mr Hetherington.
Source: The Business Times, 07 February 2007
Wednesday, February 7, 2007
Friday, February 2, 2007
Group set to gain from property boom in South Johor Economic Region
Group set to gain from property boom in South Johor Economic Region
KUALA LUMPUR: With land bank and properties located right smack in the South Johor Economic Region (SJER), Kulim (M) Bhd and the other companies within the Johor Corp Bhd (JCorp) stable, stand to benefit from a potential appreciation in land values as the RM12bil development of SJER takes shape.
JCorp group chief executive Tan Sri Muhammad Ali Hashim said unit Kulim had substantial assets in and around the SJEC area and KPJ Healthcare Bhd at least three hospitals. Johor Land also has a massive development in the area.
JCorp itself has shopping complexes to hotels within the area and an international convention centre is also coming up.
“We (as a group) are ready to take advantage of these developments as (we believe) many of our subsidiaries would benefit,” he said.
Kulim managing director Ahamad Mohamad added that he saw “upside potential in property values and that offers more options for Kulim in the future.”
With so much excitement over SJER, Kulim had people knocking on its doors to divest some of its assets but Ahamad said “we are not on the market but, at the right price, we would sell anything.”
Kulim has about 10,000 acres of estates and properties in Ulu Tiram and Kota Tinggi. Kulim had re-valued its plantation land bank in 1997.
The SJER, whose master plan is expected to be announced soon, is likely to boost economic activities in the corridor and create higher demand for properties in the surrounding areas.
Even though a revaluation of assets was possible, JCorp was one of the many groups that suffered from the 1996/97 Asian financial crisis from over expansion and hefty borrowings.
To this, Muhammad Ali said: “We firmly believe a crisis will never be over and no one would know where oil prices will lead us. If it goes beyond US$80 or US$100 per barrel, there would be tough challenges and the question is how prepared are we.
The last crisis has taught us to be better prepared as we went into the eye of the storm with borrowings around our neck but we managed to religiously discipline ourselves.”
For financial year ended Dec 31, 2005, JCorp reported a pre-tax profit of RM243mil on turnover of RM2.6bil. By 2012, JCorp is expected to be debt free.
KUALA LUMPUR: With land bank and properties located right smack in the South Johor Economic Region (SJER), Kulim (M) Bhd and the other companies within the Johor Corp Bhd (JCorp) stable, stand to benefit from a potential appreciation in land values as the RM12bil development of SJER takes shape.
JCorp group chief executive Tan Sri Muhammad Ali Hashim said unit Kulim had substantial assets in and around the SJEC area and KPJ Healthcare Bhd at least three hospitals. Johor Land also has a massive development in the area.
JCorp itself has shopping complexes to hotels within the area and an international convention centre is also coming up.
“We (as a group) are ready to take advantage of these developments as (we believe) many of our subsidiaries would benefit,” he said.
Kulim managing director Ahamad Mohamad added that he saw “upside potential in property values and that offers more options for Kulim in the future.”
With so much excitement over SJER, Kulim had people knocking on its doors to divest some of its assets but Ahamad said “we are not on the market but, at the right price, we would sell anything.”
Kulim has about 10,000 acres of estates and properties in Ulu Tiram and Kota Tinggi. Kulim had re-valued its plantation land bank in 1997.
The SJER, whose master plan is expected to be announced soon, is likely to boost economic activities in the corridor and create higher demand for properties in the surrounding areas.
Even though a revaluation of assets was possible, JCorp was one of the many groups that suffered from the 1996/97 Asian financial crisis from over expansion and hefty borrowings.
To this, Muhammad Ali said: “We firmly believe a crisis will never be over and no one would know where oil prices will lead us. If it goes beyond US$80 or US$100 per barrel, there would be tough challenges and the question is how prepared are we.
The last crisis has taught us to be better prepared as we went into the eye of the storm with borrowings around our neck but we managed to religiously discipline ourselves.”
For financial year ended Dec 31, 2005, JCorp reported a pre-tax profit of RM243mil on turnover of RM2.6bil. By 2012, JCorp is expected to be debt free.
Wednesday, January 31, 2007
Jones Lang LaSalle 2006
CHICAGO, January 30, 2007 – Jones Lang LaSalle Incorporated (NYSE: JLL), the leading integrated global real estate services and money management firm, today reported record net income of $176 million, or $5.24 per diluted share of common stock, for the year ended December 31, 2006. This represents an increase of 70 percent over the prior year’s net income of $104 million, or $3.12 per diluted share. Revenue for the full year 2006 reached $2.0 billion, an increase of 45 percent in U.S. dollars and 43 percent in local currencies from the prior year, and the product of strong growth in all operating segments. Operating income for 2006 was $244 million compared with $132 million for the prior year, an increase of 85 percent. Included in the firm’s 2006 full-year results was an incentive fee from a single client of $112.5 million, or $1.01 per share, at a 41 percent operating income margin. The fourth-quarter strengthening of the pound sterling and euro also contributed approximately $0.16 per share for the year.
For the fourth quarter of 2006, net income was $81 million, or $2.37 per diluted share, compared with net income of $67 million, or $1.99 per diluted share, for the same period in 2005. Revenue for the fourth quarter of 2006 was $704 million, an increase of 41 percent in U.S. dollars and 35 percent in local currencies from 2005, with all segments showing healthy increases. Operating income for the fourth quarter increased 33 percent to $114 million from $86 million in the prior year.
Revenue for the Asia Pacific region on a full-year basis was $337 million, an increase of 24 percent in both U.S. dollars and local currencies, and $124 million for the fourth quarter, an increase of 35 percent in U.S. dollars and 31 percent in local currencies from the prior year. Growth for the full year and fourth quarter in U.S. dollars resulted from both Transaction Services revenue, which increased 22 and 32 percent, respectively, and Management Services revenue, which increased 20 and 38 percent, respectively.
Geographically, the strongest profit contributions were from the region’s largest market, Australia, and from the growth markets of China and Korea. Revenue in Australia grew 22 percent for the year and 26 percent for the quarter, while revenue in China increased 60 percent for the year and 64 percent for the quarter, compared with the prior year. Korea’s revenue for the year was up 69 percent, and finished the year strongly with fourth-quarter 2006 revenue more than double compared with the prior year. India and Singapore also made significant revenue growth contributions. The leading Asian Hotels business recorded a very strong finish in 2006 with revenue almost tripling in the last quarter compared with the prior year and with revenue for the full year up 33 percent as a result of higher transaction volume and increased market share. Offsetting the region’s growth was a decline in Japan, where Capital Markets activity was lower in 2006 compared with 2005, which included several significant closed transactions.
Operating expenses on a full-year basis for the Asia Pacific region increased 26 percent in both U.S. dollars and local currencies, and for the fourth quarter increased 34 percent in U.S. dollars and 30 percent in local currencies, over the prior year. The increase was the result of expansion of the geographic platform, service capabilities and infrastructure throughout the region.
Operating income decreased from $20.0 million in 2005 to $18.6 million in 2006. Included in 2006’s full year results were expenses of approximately $1.7 million for net transition costs incurred to outsource the management of the region’s IT infrastructure, call centers and application development, positioning the region for significant future growth. The 2005 full-year results included a benefit of $2.4 million received from a litigation settlement. Excluding the impact of these items, operating income for the region would have increased from $17.6 million in 2005 to $20.3 million in 2006, with operating income margins flat at approximately six percent. The firm is now well-positioned with a leading market share in the region to capitalize on the anticipated growth.
For the fourth quarter of 2006, net income was $81 million, or $2.37 per diluted share, compared with net income of $67 million, or $1.99 per diluted share, for the same period in 2005. Revenue for the fourth quarter of 2006 was $704 million, an increase of 41 percent in U.S. dollars and 35 percent in local currencies from 2005, with all segments showing healthy increases. Operating income for the fourth quarter increased 33 percent to $114 million from $86 million in the prior year.
Revenue for the Asia Pacific region on a full-year basis was $337 million, an increase of 24 percent in both U.S. dollars and local currencies, and $124 million for the fourth quarter, an increase of 35 percent in U.S. dollars and 31 percent in local currencies from the prior year. Growth for the full year and fourth quarter in U.S. dollars resulted from both Transaction Services revenue, which increased 22 and 32 percent, respectively, and Management Services revenue, which increased 20 and 38 percent, respectively.
Geographically, the strongest profit contributions were from the region’s largest market, Australia, and from the growth markets of China and Korea. Revenue in Australia grew 22 percent for the year and 26 percent for the quarter, while revenue in China increased 60 percent for the year and 64 percent for the quarter, compared with the prior year. Korea’s revenue for the year was up 69 percent, and finished the year strongly with fourth-quarter 2006 revenue more than double compared with the prior year. India and Singapore also made significant revenue growth contributions. The leading Asian Hotels business recorded a very strong finish in 2006 with revenue almost tripling in the last quarter compared with the prior year and with revenue for the full year up 33 percent as a result of higher transaction volume and increased market share. Offsetting the region’s growth was a decline in Japan, where Capital Markets activity was lower in 2006 compared with 2005, which included several significant closed transactions.
Operating expenses on a full-year basis for the Asia Pacific region increased 26 percent in both U.S. dollars and local currencies, and for the fourth quarter increased 34 percent in U.S. dollars and 30 percent in local currencies, over the prior year. The increase was the result of expansion of the geographic platform, service capabilities and infrastructure throughout the region.
Operating income decreased from $20.0 million in 2005 to $18.6 million in 2006. Included in 2006’s full year results were expenses of approximately $1.7 million for net transition costs incurred to outsource the management of the region’s IT infrastructure, call centers and application development, positioning the region for significant future growth. The 2005 full-year results included a benefit of $2.4 million received from a litigation settlement. Excluding the impact of these items, operating income for the region would have increased from $17.6 million in 2005 to $20.3 million in 2006, with operating income margins flat at approximately six percent. The firm is now well-positioned with a leading market share in the region to capitalize on the anticipated growth.
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