HK-based PE firm eyes S’pore high-end homes, prime office buildings

Hong Kong-based private equity property firm Phoenix, arizona Property Buyers is all over the place for more purchases of South-east Asia.

Currently they have invested regarding US$120 mil – or perhaps 5 % of the US$2. 5 billion dollars it has brought up since it was set up in 2002 – in Jakarta, Manila and Singapore.

The aim is to increase the region’s share to 15-20 % over time, if perhaps there are options, said Samuel Chu, co-founder, managing spouse and primary investment police officer at Phoenix, arizona Property Buyers, in an interview.

The group’s total belongings managed and under managing stands for over US$6. 7 billion dollars – inside the luxury non commercial, retail and office groups.

So far, all those things Phoenix has got bought in Singapore will be three pairs of preservation shophouses for 48-56 Peck Seah Neighborhood for S$42. 8 mil in 2014. It has put in a further S$2 million beautifying the advantage, which is 82 per cent allow. The property, using a total lettable area of regarding 20, 500 sq feet, is creating around four per cent net yield.

Mister Chu stated Phoenix can be keen to generate further purchases of Singapore selectively, targeting the high-end non commercial and best office belongings here when he believes the base is close to for these two segments and quality belongings acquired for a reasonable value will do very well when the marketplace picks up inside the medium term.

Brokers had been showing the group bargains for potential bulk buys in sophisticated Singapore non commercial projects.

“Obviously now the high-end non commercial and workplace markets will be soft (but Singapore) can be described as financial centre. It is a local hub just for South-east Asia. The legal system is extremely good in this article, very clear. The government recognizes what they are carrying out. I like the medium/long-term prospective for Singapore, but we need to find the right offer, ” stated Mr Chu.

Besides the sophisticated residential part and office buildings, the group has also been taking a look at the price tag property part, Mr Chu added.

For now, Phoenix is more keen on investing in existing completed properties in Singapore, doing asset enhancement works and repositioning them if necessary – rather than to embark on a new development, given prevailing bullish land prices.

The US$120 million equity that Phoenix has invested so far in South-east Asia was allocated from the US$750 million Fund V; so far close to US$500 million of Fund V has been invested.

Further investment in South-east Asia will come from the uninvested equity from this fund as well as co-investments from existing investors outside the fund structure. “It is never a lack of capital. It is lack of finding the deals, ” said Mr Chu.

Phoenix’s investor profiles include pension funds from Europe and America, sovereign wealth funds, insurance companies, endowment funds from universities (such as the University of Michigan), foundations and big family offices.

The World Bank Pension Funds and the US-based The Church Pension Fund are among the names Mr Chu cited.