>

>

/

Corporate real estate investment disposals surge to record $61 bil in 2021: CBRE

/ EdgeProp Singapore |

May 23, 2022 11:42 AM SGT

Mainland China recorded the bulk of the disposal activity, raking in US$13 billion in 2021. Most transactions involved the sale of development sites and older assets for redevelopment. (Picture: Pixabay)

SINGAPORE (EDGEPROP) - According to a capital markets report by CBRE, corporate real estate investors in the Asia Pacific closed a combined total of US$44.4 billion ($61.12 billion) deals relating to disposal activity in 2021. The market saw 762 deals completed last year as sellers capitalised on strong pricing to offload some assets.

See also: Portfolio of Grade-A strata office units at 20 Cecil Street up for sale for $75.88 mil

About 73% of corporate sales activity in the region last year involved disposal sales activity and deals generally involved the disposal of older assets that commanded strong pricing due to upbeat market conditions. CBRE says that most buyers tend to go into these deals with the intent to undertake value-add or development strategies.

Meanwhile, the remaining 27% of corporate sales in the region last year involved sale leaseback deals, with companies adopting this strategy to enhance their balance sheet and reinvest their core business. Most of these buyers were core funds and institutional investors.

The industrial sector accounted for 24% of disposal deals and 34% of sale leaseback transactions in 2021. The sector comprised different types of companies with diverging reasons for disposals. For example, some airline companies sold off some assets to raise capital while logistics businesses sought to monetise assets by capitalising on favourable market conditions for industrial properties.

Mainland China recorded the bulk of the disposal activity, raking in US$13 billion in 2021. Most transactions involved the sale of development sites and older assets for redevelopment. Meanwhile South Korea also saw a notably high volume of corporate disposals of about US$7.5 billion. Most transactions involved older retail and office assets for redevelopment.

CBRE expects 2022 to be another strong year for corporate asset monetisation in Asia Pacific, and this sales activity is expected to grow by 5% to 10% this year.

Tags:

capital markets asset disposal CBRE

Follow Us

Follow our channels to receive property news updates 24/7 round the clock.

Subscribe to our newsletter

Top Articles

1

Record-breaking 1,000 HDB resale flats hit $1 mil in 2024

2

Project Spotlight: This condo in Ang Mo Kio has 241 profitable and no unprofitable transactions

3

Novo Place hits 88.1% as 137 units snapped up in second balloting

4

Is it a Good Deal?: A duplex penthouse in Sentosa sold for a loss of $1.93 million

5

10 best-selling new private residential projects of 2024

Our Site

Follow Us

Property Research

Condos

HDBs

Landed

Commercial

Industrial

Properties For Sale

Properties For Rent

Edgeprop.sg (previously known as The Edge Property Singapore) is the best property portal for real estate agents, investors, home-seekers and sellers alike in Singapore. On EdgeProp, you will be able to find the latest and hottest property news, property listings, and access tools for your research and analysis.

Whether you are looking to buy, sell or rent apartments, condominiums, executive condos, HDBs, landed houses, commercial properties or industrial properties, we bring you Singapore’s most comprehensive and up-to-date property news and thousands of listings to facilitate your property decisions. Click into any listing to check out the new AI Redesign tool to envision your property based on your preferred style, be it Scandinavian, Minimalist or many others.

Make data-driven property decisions with our easy-to-use free and paid tools. The Edge Fair Value tool lets users calculate the fair value of a property, while the En Bloc Calculator helps to determine the probability of a Singapore project being put up for collective sale. Our whole new Research tool provides you data on past transactions, price trends, and more for condos, HDBs, landed houses, commercial properties and industrial properties.

Aside from that, EdgeProp also offers a market trends tracker that lets you access historical property data, sales volume and compare how similar properties are selling, a heatmap that shows you where Singapore’s most popular property sales locations are, a HDB lease tool to calculate your HDB tenure, an affordability calculator, and property alerts to track your preferred Singapore property by project or location, as well as information on new launches.

On the lookout for undervalued property or looking to rent? EdgeProp’s powerful search filters will let you personalise your property-seeking experience – whether you are looking for a property near MRT stations, amenities like schools, or within a HDB Estate or District – so that you find exactly what you are looking for.

View More

Close Ad

00:00