With strong strategic initiatives and remarkable deals, the real estate income of DBS has been growing despite market challenges.
DBS achieved a compound annual growth rate (CAGR) of 10% on global real estate income from fiscal year 2015 to 2023, with markets such as Australia with CAGR of 30%, and China, Hong Kong and Taiwan with CAGR of 15%.
DBS also has strong capabilities in advisory. A remarkable deal this year saw DBS acting as financial adviser to ThaiBev, Southeast Asia's biggest brewer, which had plans to divest its real estate assets and become a pure-play drinks and food firm.
Other notable deals achieved by DBS during research period include the successful completion of Link Reit’s HK$18.8 billion ($2.4 billion) rights issue in March 2023, where DBS acted as joint lead underwriter, and Guangzhou-based real estate developer Yuexiu Property’s HK$8.36 billion rights issue, despite challenges in the China real estate market.
During the research period, DBS kept its top position in bonds issued by real estate corporates from Asia. CapitaLand Investment raised Rmb1 billion ($138 million) from the first tranche of its panda bond in March 2024, with a fixed coupon rate of 3.5% per annum and each tranche having a three-year tenor. With active participation from the China market, the deal established DBS as one of the top foreign banks in underwriting onshore debt financing instruments.
Sustainable development has always been a key focus for DBS, and it is driving industry-wide change through innovative partnerships and pioneering financial solutions. A notable example in 2024 was Singapore’s City Developments Limited partnering DBS on a first-of-its-kind TNFD targets-aligned sustainability-linked loan of S$400 million ($298 million). In 2023, GuocoLand secured a $974 million green club facility from DBS and other banks, a loan raised under its new Green Finance Framework.
Meanwhile, DBS has provided a S$180m green loan to Malaysia’s public sector pension fund, KWAP, for the refinancing of a grade A green office tower in Australia at the end of 2023. DBS made use of its sustainable and transition finance framework and taxonomy, launched in 2020, in this deal.
"We are humbled and honoured to be recognised by Euromoney as the Best Bank for Real Estate, globally and in Asia-Pacific," says Chew Chong Lim, group head of real estate and shipping, aviation, logistics & transportation, institutional banking group, DBS. “This accolade, marking our fourth consecutive win in Asia-Pacific, would not be possible without the continued trust and support of our clients. It reaffirms our commitment to deliver a seamless experience to our clients in their investments locally and overseas.”