It’s stepping up its overseas drive.
The industrial property firm is countering Singapore’s gloomy economic outlook as it plans to pursue growth beyond domestic shores.
According to UOB Kay Hian, it plans to eventually increase its overseas exposure to 75% while it highlights target markets such as South Korea and Japan, pointing out strong demand for leasing space in the lead-up to the Japan Olympics and thirst for Grade-A warehousing among South Korea’s retailers.
“Despite rental reversion growth of 5% attributable to Singapore, Hong Kong and China, management continues to guide for moderate rental reversions,” UOB Kay Hian said.
Meanwhile, UOB Kay Hian added that the resulting downward ressure on NPI margins from expiring single user assets amid the bleak outlook in Singapore should be mitigated as it continues to look beyond domestic shores.
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