Frasers Property's Robertson Walk redevelopment plan and recent profit surge: Is it time to invest?

Frasers Property, the third-largest listed developer in Singapore, is experiencing a period of growth and strategic evolution. The group keeps making headlines, from the recent profit increase and now the redevelopment plans for Robertson Walk and Fraser Place Robertson Walk.

348 luxury residential units are set to launch next year, offering a vibrant live-work-play environment in the Singapore River area. Market reactions to this plan have been further measured.

On the day of the announcement (Nov 18), Frasers Property's shares remained stable at 92 cents.

Robertson Walk redevelopment plan

Frasers Property is partnering with Japanese construction giant Sekisui House in a 51:49 joint venture to transform Robertson Walk and the adjoining Fraser Place Robertson Walk into a high-end mixed-use project.

This redevelopment plan will include 348 luxury residential units alongside an array of retail, dining, and entertainment options. The new condo will launch in 2025, expected to be completed by 2028.

The 999-year leasehold site will span 30,664 sq m of gross floor area. The plans call for 26,371 sq m dedicated to residential spaces and 4,293 sq m set aside for retail use.

As 2025 approaches, more details about the design, pricing, and offerings will be published. It likely will capture the attention of luxury residential buyers and investors keen on one of Singapore's most vibrant precincts.

CEO Soon Su Lin highlighted this project as part of Frasers' active asset management strategy. It aims to maximise returns from its 999-year leasehold site.

Operations at Robertson Walk and Fraser Place Robertson Walk will continue under Frasers Property's management until May 31, 2025, before redevelopment begins in earnest.

Market and strategic implications

This redevelopment of Robertson Walk aligns with the Singapore Government's plans to revitalise the Singapore River Planning Area, enhancing connectivity and vibrancy in Robertson Quay. By blending high-end residential with retail and entertainment, Frasers is positioning itself as a key player in creating desirable mixed-use spaces in prime locations.

The transformation itself is to "unlock the highest and best use" of Frasers' properties, as highlighted by CEO Soon Su Lin. Sekisui House's involvement further underscores the international appeal of the Singapore real estate market and signals continued foreign interest and collaboration in local development.

Investors and potential buyers can anticipate premium pricing aligned with the project's luxury positioning and desirable location. The market showed no negative reaction, as Frasers Property's shares remained stable at 92 cents after the announcement on Nov 18, 2024.

Frasers Property's profit jump in 2024

Thai billionaire-owned Frasers Property reported a robust 19.2 per cent increase in net profit for the fiscal year ending Sept 30, 2024. This profit surge, translating to $206.3 million, underscores the company's ability to capitalise on international market opportunities.

With revenue climbing nearly seven per cent to $4.2 billion, Frasers has beaten market expectations and showcased its adaptability amid global market fluctuations.

Much of Frasers' profit boost came from higher residential contributions in China and Australia. Frasers also recorded significant valuation gains on Singapore properties and industrial and logistics real estate in Europe and Australia.

Such strategic assets enhance income stability and long-term growth prospects. However, despite its profit growth, Frasers' stock price remained relatively flat through 2024.

This suggests that while the company's fundamentals show promise, investors remain wary of macroeconomic pressures and recent setbacks, including failed bids for key sites in Singapore.

However, Frasers' renewed focus on high-profile developments and partnerships with established entities like Sekisui House in the new redevelopment plan demonstrate their commitment to long-term growth and diversification.

What to watch for as property investors

• Macroeconomic headwinds: As CEO Panote Sirivadhanabhakdi stated, Frasers remains "cautious about the macroeconomic environment." Rising interest rates, property cooling measures in major markets, and global economic uncertainty could impact future sales and valuation metrics.
• Enhanced development exposure: Frasers aims to expand selectively in residential and non-residential segments to achieve better risk-adjusted returns. Investors should keep an eye on the company's allocation of resources and new projects under development.
• Market regulations and trends: The Singapore property market continues to grapple with price fluctuations, supply constraints, and regulatory moves. Frasers' attempts to navigate these while expanding its portfolio will determine its ability to maintain momentum.
• Star projects and long-term bets: Frasers emphasises key projects like One Bangkok in Thailand and joint ventures with City Developments and Sekisui House in Singapore. Success here could reinforce investor confidence, though any execution risks or delays would present potential downside.

Popular projects by Frasers Property

While Frasers Property has struggled with share underperformance, its diversified asset base, consistent valuation gains, and strategic pivots suggest it remains well-positioned for long-term growth.

If you're interested in Frasers' properties in Singapore, we've listed some of the popular projects available in the market for investors and discerning homebuyers alike.

Here's a closer look at some of Frasers Property's recent standout developments:

Sky Eden @ Bedok

Sky Eden @ Bedok is a mixed-use development situated in the heart of Bedok Town Centre. It features 158 residential units and commercial spaces at the lower levels, creating a vibrant integrated lifestyle hub.

Residents benefit from easy access to Bedok MRT station and the bus interchange, located a 3-minute walk away. With retail outlets, cafes, and essential services right at their doorstep, this project offers unparalleled convenience.

Sky Eden's focus on smart home technology, energy-efficient features, and recreational facilities caters to urbanites seeking modern living in an established neighbourhood.

Riviere

Located along the Singapore River, Riviere combines luxury living with historical charm. This prestigious development comprises 455 residential units spread across two high-rise towers. It blends heritage and modernity, with conserved warehouses repurposed as lifestyle and dining spaces.

Residents enjoy breathtaking views of the Singapore River and Marina Bay skyline, along with unmatched accessibility via Havelock MRT station (400m). High-end fittings, smart home technology, and resort-style amenities elevate Riviere as a premium choice for discerning buyers.

North Park Residences

Situated atop Northpoint City, Singapore's largest integrated transport hub in the North, North Park Residences offers a unique living experience. This development features 920 units and connects seamlessly to an array of retail shops, eateries, and recreational facilities.

Residents have direct access to the Yishun MRT station and bus interchange, ensuring unmatched connectivity. The extensive range of amenities, from swimming pools and gyms to garden courtyards, positions North Park Residences as a community-centric haven within Yishun.

Seaside Residences

Located along East Coast Parkway, Seaside Residences offers a serene and luxurious beachfront lifestyle. This high-rise development features 843 units, many of which provide stunning sea views.

Residents can enjoy a host of recreational facilities, including an infinity pool overlooking the sea, a fitness pavilion, and beautifully landscaped gardens. With proximity to East Coast Park and Siglap MRT station (TEL), Seaside Residences provides a perfect mix of nature, leisure, and connectivity.

Boathouse Residences

Boathouse Residences delivers resort-style living with its strategic location along the scenic Serangoon River. The development comprises 493 units with thoughtfully designed recreational facilities, including swimming pools, a gym, and lush landscaped gardens.

Residents can take advantage of the tranquil riverside setting. They will stay connected to the rest of Singapore via the nearby Hougang MRT and Kangkar LRT stations.

The proximity to parks, amenities, and schools makes it an attractive choice for families seeking a peaceful yet well-connected home.

Other than these recent existing projects and the redevelopment plan of Robertson Walk, Frasers Property also offers a rare residential opportunity in the heart of Toa Payoh coming in early 2025. After 8 years, District 12 will finally welcome another new condo in the area.

Yielding around 777 residential units, the 99-year leasehold The Orie spans 15,743 sq m, equivalent to over two football fields.

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This article was first published in 99.co.