Real estate groups may gain by selling Singapore properties now to buy assets overseas later

HIGHER interest rates are driving asset valuations down in many markets, with negative implications for several Singapore-listed property plays.

Singapore-listed Manulife US Reit saw the valuation of its US’ office assets fall 14.6 per cent between end-2022 and end-June 2023. This came after a year-on-year fall in portfolio valuation of 10.9 per cent as at end-2022.

Ho Bee Land , which owns various prime office buildings in London, UK, posted a fair value loss of S$201.9 million for its London portfolio in 2022. The group suffered a net loss in the first half, primarily due to an unrealised fair value loss of S$208.3 million for the London portfolio and higher interest costs of S$76.3 million.