“An icon of Singapore, investor interest in Orchard Road remains evergreen. Even assets on its fringes continue to draw interest from various investors. Land tenure is always a concern, but given the stability in Singapore, investors are getting used to the idea. For funds new to Singapore, the limited tenure may be an issue, but if it is a captive asset, it matters less,” notes Chiam Tao Koon, Ashurst’s Southeast Asia head of M&A.
In our story, “Will China’s bazooka save the luxe sector?”, we suggested one way to play the Chinese recovery is through resilient luxury stocks such as LVMH and Prada.
For risk-averse investors focussed on yields, S-REITs with luxury properties are a proxy for the Asian and Asean growth story. As the popularity of Singapore’s most iconic shopping belt remains undiminished, investors need look no further than Orchard Road.
