These real estate players are on shaky ground as Brexit looms

CDL, ART, KDCREIT, and CDLHT have notable UK exposures.

The results of a Brexit referendum remain hazy, but market jitters are sure to come before the referendum on June 23, triggering volatility specifically to real estate players with UK exposure.

According to a report by OCBC research, among the real estate firms are City Developments, which has 10.8% of its assets based in the UK as at end FY15, including recent acquisitions of Teddington Studios and Stag Brewery land sites.

11% of the group’s debt is also denominated in GBP (net currency exposure of S$382.6m) and OCBC research noted that a 10% strengthening of GBP against SGD would have resulted in additional S$38.2m PBT over the year.

Ascott Residence Trust, meanwhile, owns four serviced residences in UK, which constituted 12.4% of ART’s total asset valuation as at end FY15 and 13.0% of FY15 total gross profit OCBC added.

“Keppel DC REIT (KDCREIT) owns one data centre in London, which formed 7.5% of the trust’s total assets as at 31 Dec 2015. We estimate that this UK data centre contributed 6.6% to KDCREIT’s NPI in 2015,” OCBC said.

“Finally, for CDL Hospitality Trust (CDLHT), as at end 1Q16, 5.4% of assets (Hilton Cambridge City Center) and 3.9% of 1Q16 NPI were derived from the UK. The trust also has a S$126m floating bridge loan in GBP due Aug 2016 (13.7% of total debt),” OCBC added.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia