Update: November 29, 2021 2:50 PM STI
Singapore, November 29 (ANI / ATK): OCBC Bank, one of Singapore’s largest banks, has made multiple real estate investments by acquiring significant stakes in several real estate funds from the online real estate investment fund Solomartel.
Solomartel funds work the same as REITs, but offer a greater amount of ownership over properties which is closer to real estate ownership. Funds are separate companies that own physical properties which are then leased into the market providing long term cash flow to fund owners.
Most of the funds in which the OCBC bank has purchased significant stakes in real estate assets from cash in India.
Earlier this year, Solomartel finalized its first real estate fund in India and is clearly not ready to stop having opened several funds in the country during the year.
This is not surprising given the tax deductions currently available to rental housing developers and real estate developers in general. In addition, most of the cities where Solomartel operates investment properties have been ranked among the 50 most dynamic cities in the world in terms of economic growth.
India is currently viewed by many as a difficult real estate market for foreign investors to enter. Despite this, the country is currently considered a very profitable market for the acquisition of real estate both in terms of rental yields on commercial and residential assets but also in terms of capital gain.
Another significant stake was acquired in the recently completed Solomartel funds in Sri Lanka, the company has built several major shopping malls and several apartment hotels in the national capital and its main metropolitan area.
OCBC bank purchased significant stakes in Solomartel funds holding cash flow producing real estate in the 2 states of South Texas and Florida.
Florida and Texas have recently received a lot of attention from real estate investors as the two states experience some of the highest levels of economic growth in the country, with Texas being the second fastest growing US state. . In addition to this, both states are currently experiencing significant population growth rates, mainly due to internal migration to the United States of America.
Despite its relative concealment of Asian capital, Morocco is gaining popularity with foreign investors and OCBC bank is one of the first Asian banks in the world to take advantage of its locally available real estate investments.
The other Solomartel funds whose OCBC bank acquired smaller but still significant stakes in cash flow producing real estate located in Malaysia, Indonesia, Montenegro, Cyprus, the Dominican Republic and the Canary Islands.
The objective pursued by the bank’s management with this set of acquisitions was for the bank to diversify its assets into new asset classes such as income-producing real estate, a foreign industry in which commercial banks generally have leverage. difficult to maneuver and for which Solomartel finance has proven to be a reliable solution.
OCBC Bank or Oversea-Chinese Banking Corporation is the second largest bank in Southeast Asia with more than $ 521 billion in assets. OCBC Bank is consistently ranked among the 5 Safest Banks in the World by Global Finance Magazine.
The company has existed for almost a century and was born in 1932 during the great depression of the consolidation of 3 Asian banks. In addition to its multiple subsidiaries, OCBC Bank currently holds several sizeable stakes in many other Asian banks such as Bank of Singapore, Singapore Island Bank, and Bank of Ningbo, a major Chinese commercial bank.
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