Hong Kong-based Phoenix Property Investors, a private equity real estate firm, is looking to increase investments in Southeast Asia real estate markets including Singapore. What is the plan?
Phoenix Property Investors, which is independently owned and managed, has a proven track record of managing award-winning real estate assets in the luxury residential, retail and office sectors. The Company, with assets managed and under management in Asia of over $6.7 billion, is expanding its investment footprint from North Asia, particularly Hong Kong, Japan and China, to the Southeast Asia region, according to a media release sent on Tuesday to finews.asia.
In Southeast Asia, it is setting its sights on Jakarta and Manila, cities where it believes the demographics are strong fundamental drivers for real estate, as well as selectively in Singapore. Current investments in the Southeast Asia region include three pairs of shophouses in Singapore at 48-56 Peck Seah Street, Tomang Park, a high-rise residential development in Tomang, Jakarta, Indonesia, and Century Spire, a high-end residential-cum-office tower in Manila, Philippines.
Bullish on the Long-Term Potential
«We are very bullish on the long-term potential of Southeast Asia’s real estate markets and will be raising our portfolio allocation to the region,» Phoenix’s Co-founder, Managing Partner and Chief Investment Officer, Samuel W. T. Chu (pictured above) says.
Most countries in Southeast Asia are bucking the ageing demographic trend as well as rapidly growing its middle-class population, both of which bode well for the property sector. «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,» Chu adds.
Strategic Opportunities
Phoenix was founded in 2002 in Hong Kong by Chu and Benjamin K. Y. Lee. The Company has investment footprints across Asia including Hong Kong, Taipei, Shanghai, Beijing, Tokyo, Osaka, Singapore, Seoul, Jakarta and Manila. Some of its more prestigious investments included The Morgan, an upscale residential development in Hong Kong, and TOWER 535, a transformed Grade A commercial and retail development in Hong Kong.
The firm targets strategic investment opportunities such as mezzanine lending, nonperforming loans, development and redevelopment projects as well as highly liquid, income-producing properties. The Company also executes a wide spectrum of valueadded strategies including renovation works, structural and interior upgrades for select assets. Phoenix made its first investment in Singapore in 2014.
Good Capital Appreciation Over Time
«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. In addition, they are conservation shophouses which have proven to generate good capital appreciation over time,» Chu says.
Since its inception, Phoenix has raised approximately $2.5 billion of equity for real estate investment and development opportunities in the residential, retail, office and commercial sectors.
