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Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
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Warburg Pincus and Lendlease Close Singapore’s Largest Commercial Real Estate Deal of 2024

 

In a significant move for Singapore’s real estate market, a joint venture backed by private equity giant Warburg Pincus LLC and Australia’s Lendlease Corp has acquired approximately S$1.6 billion (US$1.2 billion) worth of real estate assets in Singapore. This transaction marks the largest commercial deal in the city-state for the year, underscoring the growing interest in life sciences and research and development (R&D) facilities.

Key Takeaways:

  1. Strategic Acquisition Focused on Life Sciences and R&D: The newly formed, unnamed platform by Warburg Pincus and Lendlease is set to acquire business parks and specialist facilities tailored to the needs of life sciences and R&D companies. The portfolio spans an extensive gross floor area of 4.5 million square feet across Singapore, highlighting the strategic focus on sectors that are increasingly vital to the city's economic landscape.

  2. Significance of the Deal: This acquisition stands out as one of the largest commercial real estate transactions in Singapore’s tightly regulated and closely held industrial market. The assets were acquired from entities associated with Blackstone Inc. and Lim Chap Huat of Soilbuild Group Holdings Ltd. Following the deal, Warburg’s Singapore-based platform now manages over S$2 billion in assets, marking a substantial presence in the market.

  3. Market Context and Future Outlook: Despite a challenging market environment characterized by high interest rates and a notable pricing gap between buyers and sellers, this transaction reflects the strong investor interest in Singapore's industrial sector. However, overall commercial real estate transactions in Singapore saw a 49% year-on-year decline in the first half of 2024, with total deals amounting to US$2.9 billion, according to MSCI Inc. This deal could signal a potential shift in investor sentiment, particularly in sectors with strong growth prospects like life sciences.

In conclusion, the Warburg Pincus and Lendlease joint venture’s acquisition underscores the resilience and attractiveness of Singapore’s industrial real estate market, particularly in high-growth sectors such as life sciences and R&D, despite broader market challenges.

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