Elite UK REIT’s trustee, Perpetual (Asia) Limited, recently sold the Crown Buildings located in Caerphilly, Wales, for GBP710,000 ($1.2 million) at an 18% premium. According to a bourse filing on March 3, the property was valued at GBP600,000 at the end of 2024, based on an independent valuation by CBRE. This is up from its valuation of GBP530,000 at the end of 2023. The net proceeds from the sale will be used to pay off the company’s outstanding loans. Crown Buildings, Caerphilly, which has a total gross floor area of 20,712 sq ft, was featured on Elite UK REIT’s website. The sale is a result of the company’s successful GBP28 million preferential offering in January 2024, which led to a reduction in its leverage ratio from 50.0% at the end of 2023 to 43.4% at the end of 2024. Similarly, its net gearing ratio decreased from 47.5% to 42.5% during the same period. Fortunately, there is no debt maturing in 2025 and 2026, and the company’s refinancing obligations are not due until 2027.
It is crucial for foreigners looking to invest in Singapore to familiarize themselves with the country’s regulations and limitations surrounding property ownership. While purchasing condos is relatively unrestricted for foreign buyers, owning landed properties comes with stricter rules. It should be noted that foreign investors are required to pay the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their initial property purchase. However, despite this added expense, the stability and growth potential of the Singapore real estate market remain appealing to foreigners. In fact, the continuous launch of new condo projects, such as New Condo Launches, continues to attract foreign investment in the country’s property market.