Office REITs book sizeable revaluation gains in 2014

Thanks to buoyant demand.

Office-focused REITs and developers with large office portfolios booked sizeable revaluation gains in 2014, data from Maybank Kim Eng showed.

According to Maybank Kim Eng, three REITS reported total revaluation gains worth $391m, namely, Capital Commercial Trust with $81m, Keppel REIT with $212m, and Suntec REIT with $98m.

Developers also benefitted from valuation gains. For instance, valuations for The Metropolis by Ho Bee rose $270m.

“Capital values for office assets rose across the board. Grade A rents and capital values went up 14.9% and 9.6% respectively in 2014, according to CBRE.Leasing sentiment remained strong, with the recently completed CapitaGreen and South Beach well-tenanted at 69.3% and 80% respectively,” stated Maybank Kim Eng.