Phoenix Property Investors to boost investment in Singapore
Samuel Chu, Co-founder, Managing Partner and Chief Investment Officer at Phoenix Property Investors.
Hong Kong-based private equity real estate firm Phoenix Property Investors has announced plans to boost its investment in Southeast Asia, including Singapore.
Founded in 2002, the company currently has US$6.7 billion in luxury residential, retail and office assets under management in Asia, including in Hong Kong, Japan and China.
The group takes a selective approach to investing in mezzanine financing, non-performing loans, development and redevelopment projects, as well as highly liquid, income-producing properties.
“Our investment strategy has always been focused on discovering value, often buying below market price and adding value after acquisition through complex strategies that utilise our vertically-integrated team,” said Samuel Chu, Co-founder, Managing Partner and Chief Investment Officer at Phoenix.
The firm has set its sights on Jakarta and Manila, where it believes favourable demographics and economic growth are strong fundamental drivers for real estate. Investments there include Tomang Park, a high-rise residential development in Jakarta, and Century Spire, a high-end residential-cum-office tower in Manila.
It is also exploring opportunities in Singapore. In 2014, it purchased three pairs of shophouses at 48-56 Peck Seah Street in Tanjong Pagar, and spent about S$2 million to refurbish them.
Several tenants have since moved in, like premium kitchen and sanitary ware company Kohler, which has leased two units for its flagship showroom and corporate office, and Turkish eatery Fat Prince.
“We saw a good opportunity in Singapore when these shophouses at Peck Seah Street came around. They stood out in particular because of their prime location and proximity to new buildings in the vicinity, like the recently completed S$3.2 billion Tanjong Pagar Centre, which will act as a catalyst to revive the precinct,” said Chu.
“In addition, they are conservation shophouses which have proven to generate good capital appreciation over time.”
With only about 6,500 heritage shophouses in Singapore, their scarcity value has helped them to stay resilient during downturns, noted Phoenix. Also, commercial properties are not subjected to Additional Buyer’s Stamp Duty or Seller’s Stamp Duty.
Looking ahead, Phoenix intends to focus on high-end residential and prime office assets in the city-state as it believes both segments are near the bottom, and quality assets will likely appreciate in value when the property market picks up.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
