Content first published by Euromoney on 19 November 2024
World’s Best Bank for Real Estate: DBS
DBS has demonstrated significant progress through its global connectivity strategy focusing on strategically selected gateway cities. By establishing local real estate teams in these key locations, DBS effectively supported clients as they expanded and diversified their operations. This targeted approach has been instrumental in driving the bank’s compound annual growth rate.
In the face of a challenging 2023, marked by a 30% decline in real estate transaction volumes within the bank’s key locations, DBS demonstrated resilience by achieving year-on-year growth in both its income and asset base and a rise in return on equity in its real estate segment.
The bank has notably strengthened its presence in its priority UK and Australia markets. It projects a double-digit percent year-on-year increase in both countries, thanks to formidable client acquisition and retention.
Client satisfaction and retention have been notable areas of strength for DBS, as reflected in the latest Greenwich survey.
Technological advancements have played a crucial role in enhancing operational efficiency in DBS’s real estate business. The bank implemented advanced GenAI tools for adverse news screening, significantly reducing customer onboarding times, while expanding risk coverage. Furthermore, DBS’s recently introduced AI-based fraud detection system combining machine learning algorithms with traditional rule-based methods has resulted in a 50% improvement in precision and capture rates.
DBS has also excelled in providing advisory services for significant real estate transactions. Notably, the bank facilitated a share swap between ThaiBev and TCCAL for their stakes in F&N and FPL. Its strategy of employing a negotiated fair value approach with robust RNAV (revalued net asset value) valuations led to increased share prices for all involved parties.
Another prominent mandate saw the firm facilitate the largest REIT issue in Hong Kong’s history, namely Link REIT’s HK$18.8 billion ($2.41 billion) rights issue.
“We are deeply honoured to be recognised as the world’s best bank for real estate by Euromoney," says Chew Chong Lim, DBS group head of real estate and shipping, aviation, logistics & transportation, Institutional Banking Group. "This historic win, achieved against a record number of entries, marks the first time an Asian bank has received this title twice and reflects our unwavering commitment to supporting our clients in their global investments. We are grateful for the trust of our clients and partners and will continue to add our strength to theirs.”
Asia-Pacific’s Best Bank for Real Estate: DBS
With strong strategic initiatives and remarkable deals, the real estate income of DBS has been growing despite market challenges.
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.”
Singapore’s Best Bank for Real Estate
With a robust capital base, DBS has a strong ability and deep lending capacity for the capital-intensive real estate industry and has successfully completed significant transactions in the market to meet clients' needs while proving its strength in complex transactions during the research period.
The acquisition in March 2023 of two suburban retail assets – Jurong Point and Swing By @ Thomson Plaza – was the LinkReit’s first foray into the Singapore market. DBS was mandated as the sole financial adviser and acted as a key lender for the acquisition financing.
DBS continues to provide their utmost support in sustainable development. In June 2023, DBS helped CICT, one of the largest real estate investment trusts in Singapore, issue its first Singapore dollar-denominated green bond, acting as green structuring adviser for the notes.
City Developments Limited – the first real estate company to launch the SME Supplier Decarbonization Queen Bee Programme, which aims to help local SMEs strengthen decarbonization efforts – was offered a $400 million sustainability-linked loan to enhance its sustainability capabilities.
Real estate group GuocoLand secured S$847.1 million in green financing to develop a residential site at Upper Thomson in 2024, with DBS acting as co-green loan adviser to facilitate access to diverse fundraising options like bonds and loans to support sustainable development.
Hong Kong's Best Bank for Real Estate
Strong capitalization, profitability, good capability in complex transactions and sustainable development make DBS HongKong's best bank for real estate.
DBS Hong Kong's net profit hit a record high of HK$9.2 billion ($1.2 billion) last year, and profitability will likely remain strong as it is bolstered by its resilient net interest income, which grew 21% to HK$12.6 billion.
As the largest listed Reit in Hong Kong, LinkReit successfully completed a HK$18.8bn rights issue with DBS acting as joint lead underwriter for this transaction in March 2023. The rights issue was well supported by unit-holders, with a total subscription rate of over 240%.
In 2024, when Hysan Development secured an HK$8 billion four-year syndicated loan to refinance and for operational needs, DBS acted as one of the five mandated lead arrangers, bookrunners and underwriter.
DBS has always been at the forefront of promoting sustainable development. In collaboration with Sanfield, a wholly owned subsidiary of Sun Hung Kai Properties, the bank unveiled a sustainability-linked supplier payment services initiative for the city’s construction industry. This programme is the first of its kind in Hong Kong’s construction industry. DBS acts as sole adviser to Sanfield, including ESG disclosure, safety performance, waste reduction, adoption of innovative technology and carbon-emissions reduction.
DBS also partnership with Link Reit and CLP Power to support SMEs in their sustainability journey. This initiative will onboard merchants participating in CLP's low-carbon subsidy programmes and introduce a reward scheme benefiting both participating merchants and consumers to foster a community-wide commitment to sustainability.
China's Best Bank for Real Estate
DBS has been spearheading several significant transactions over the review period. The firm successfully navigates both onshore and offshore markets under complex market conditions, while addressing client needs with precision.
The bank acted as the sole global coordinator for China Overseas Land and Investment in its Rmb3.19 billion (US$444 million) dim sum bond issuance. This marked one of a few deals within China’s subdued offshore bond market wrestling with high interest rates and heightened investor caution. DBS’s involvement in this issuance played a key role in boosting offshore investor confidence for quality Chinese developers, while encouraging other financial institutions to explore similar structures.
In another headline transaction, the bank facilitated New World China Land’s first-ever onshore commercial mortgage-backed securities issuance. Worth Rmb1 billion, this issuance was secured against the New World Yunmen New Park in Guangzhou. DBS contributed Rmb250 million in investment through its investment banking business.
The bank was also active in sustainable finance, where it played a significant role as the joint underwriter for CapitaLand Investment’s maiden Rmb1 billion sustainability-linked panda bond. The three-year bond issuance registered Rmb200 million in onshore participation, and allowed the client to secure lower-cost RMB financing and expand its funding channels and investor base within China.
Asia’s Safest Bank, 2009 – 2023, Global Finance
Best Bank in the World 2022, Global Finance
World's Best Bank 2021, Euromoney
Best Bank in the World 2020, Global Finance
World's Best Bank 2019, Euromoney
Global Bank of the Year 2018, The Banker
