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Singapore is money hub for realty
Real estate news By Tinesh Bhasin
Tuesday, 16 October , 2007, 08:24
After London Stock Exchange's Alternative Investment Market, Singapore Exchange is fast becoming the favourite of Indian real estate companies to raise funds. India's top developer DLF recently announced that it will raise $750 million on the Singapore Exchange through listing its Real Estate Investment Trust (REIT). In July, Ascendas India had raised $331 million.
Between these two companies over $1 billion have been raised and experts estimate that Indian developers can easily raise much above $4 billion within a year. A number of other developers, including Emaar-MGF, Unitech and Indiabulls have shown interest to sell their commercial property in Singapore, industry sources said. Jai Mavani, executive director at KPMG who also heads real estate said, "In recent years, Singapore market has shown receptiveness towards assets that give regular income such as office spaces, shopping complexes and hotels."
Among the two international markets, Mavani feels that Singapore Exchange is gaining prominence over London-based AIM because European investors feel that there is an over-commitment to Indian real estate industry. "Investors in AIM are waiting to know how their money is being used and whether the developers have kept the commitments intact," Mavani said. He estimates that Indian developers raised about $3.2 billion on AIM. In fact, it makes more sense for developers who have raised money at AIM to sell asset in Singapore through the Real Estate Investment Trust (REIT) structure.
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