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Property groups should sell low-yielding investment properties, go slow in raising debt 

Pursuing housing-development opportunities could work fine

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Leslie Yee

Leslie Yee

Published Mon, Aug 19, 2024 · 03:35 PM
    • While listed property groups can access debt funding, they should be careful with raising debt. Instead, they should actively explore selling low-yielding investment properties.
    • While listed property groups can access debt funding, they should be careful with raising debt. Instead, they should actively explore selling low-yielding investment properties. PHOTO: BT FILE

    ACCESS to debt appears fine for Singapore-listed property groups. Frasers Property announced in July that it had secured a sustainability-linked loan amounting to around S$904 million, comprising an Australian dollar tranche and a US dollar tranche.

    In early June, GuocoLand issued S$180 million of three-year notes at a fixed interest rate of 4.05 per cent per annum.

    In July, Ho Bee Land issued S$160 million of five-year green notes at a fixed interest rate of 4.35 per cent per annum. An entity linked to the group’s executive chairman Chua Thian Poh bought a substantial chunk of the said notes.

    Property developersProperty investmentgreen debtInterest ratesdebt capital marketsThe Level Ground

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