KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
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:
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.
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.
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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