http://www.businesstimes.com.sg/real...gcb-dealmaking

ERA Realty beefs up strength in GCB dealmaking

A group of 60 sales agents from JLL Residential joins ERA, another 100 JLL agents cross over to PropNex

By Lynette Khoo

[email protected]@LynetteKhooBT

16 Oct


ERA Realty Network is bolstering its strength in the very niche segment of good class bungalows (GCBs) and landed deals, ushering in some seasoned dealmakers in GCBs into the firm.

A total of 60 salespersons from JLL Residential specialising in GCBs and landed deals have officially joined ERA, bringing the latter's sales force to 6,016 agents - still by far the largest in Singapore.

They are among the 170 sales associates who were originally invited to join the 5,600 agents at PropNex when JLL Singapore acquired a 20 per cent stake in PropNex International, the project marketing arm of homegrown agency PropNex, in August.
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But the nature of the industry is such that these commission-based agents are free to decide where they want to go. The group of agents with expertise in GCBs has opted for ERA instead.

Heading the new GCB group at ERA is Henry Lim, an industry veteran of 20 years who has concluded deals totalling some S$1 billion.

Also crossing over to ERA as a group division director is Bernard Wu, who recently brokered a S$18.8 million GCB deal on Jervois Road that was said to be bought by Sherman Kwek, chief investment officer of City Developments and the elder son of Kwek Leng Beng.

Another 100 JLL agents who specialise in high-end condo projects in Singapore's Core Central Region have crossed over to PropNex, according to PropNex chief executive Mohammed Ismail. The other 10 agents have either gone elsewhere or dropped out of the industry.

Marcus Chu, chief operating officer at ERA, told BT that having a specialised GCB team at ERA will ensure "further penetration in the GCB market".

Though ERA has brokered GCB deals in the past, it previously did not have a department focusing on GCBs.

Now, ERA's head of GCB Mr Lim hopes to expand the firm's market share in the GCB and landed deals, with a target of garnering at least half of the market's pie.

With sellers becoming more realistic, pricing expectations of sellers and buyers should converge next year, he said. GCB transactions in 2015 "could easily double in sales volumes from this year", Mr Lim added. His team may also start to look into boutique hotel transactions - an area which he feels is currently underlooked.

Mr Chu noted that this would be aligned with ERA's broader strategy to penetrate investment deals of ultra high net worth individuals and entities who typically own varied assets including hotels and commercial buildings, as the residential market here consolidates.

For instance, the recent sale of Da Vinci building at Upper Bukit Timah Road to Sim Lian Holdings Pte Ltd for S$58 million was brokered by ERA, he said.

According to Mr Ismail of PropNex, his agency now has about 250 salespersons in the landed homes team looking at landed deals in Sentosa Cove and Singapore's mainland.

Commenting on the transfer of JLL agents to PropNex, he said: "Having more agents in the high-end segment will complement our existing team, as we were not focusing on high-end projects previously."