With the growth of e-commerce, stores are getting smaller and generating more value per square foot.  Warehouses are also replacing stores as physical showrooms are being amplified and inventory being stored away.  Furthermore, as consumption growth continues while apartment size shrinks, self-storage services present huge potential.  In the USA, strong demand for same-day delivery of grocery is also boosting the growth of cold storage.

These were all insightful perspectives shared by real estate expert, Professor Todd Sinai, at the second Mapletree Annual Lecture held at SMU on 31 October 2019.  Prof Sinai is the David B. Ford Professor, Professor of Real Estate, Business Economics & Public Policy, and Chair of the Real Estate Department from The Wharton School, University of Pennsylvania.

  
[Photo: Professor Todd Sinai from The Wharton School, University of Pennsylvania, delivering his keynote lecture.]

Prof Sinai also pointed out to the 260-strong audience comprising students, academics, industry professionals and members of the public that technology innovation is prompting developers to rethink how real estate needs to be designed in future.  For example, the growing prevalence of e-commerce deliveries calls for more storage space at apartment lobbies; developments in autonomous robots and drones also means that buildings of the future will require access points such as ramps and landing pads.

The Annual Lecture is part of the Mapletree Real Estate Programme, which is a multi-faceted initiative that has been made possible by a generous gift from Mapletree Investments to SMU in January 2018.  The gift goes towards the establishment of the Mapletree Professorship in Real Estate, Mapletree Awards, Mapletree Real Estate Business Study Trip Grant, as well as the Annual Lecture and Speaker Events.

[Photo: In his opening address, Prof Timothy Clark expressed his appreciation to SMU's partners and donours for their support towards the University's real estate curriculum.]

SMU Provost Professor Timothy Clark expressed his thanks in his welcome address.  “Our real estate curriculum has the strong support and backing of many partners in the industry.  In particular, I wish to express our appreciation to Mapletree Investments for the warm and close partnership we have developed,” he said.  He also acknowledged the support from Singapore-based firms for providing internship opportunities to SMU students.  They include: Allen and Gledhill, DBS Bank, Far East Organisation, Inland Revenue Authority of Singapore, JTC Corporation, Keppel Capital, the Singapore Land Authority, and Mapletree.

Many of the students who took up these internship opportunities are from the SMU Real Estate Track, a unique and pioneering specialisation focusing on real estate finance and investment that began in August 2018.  The Track has gained strong traction since - 600 students have enrolled in the eight real estate courses being offered, and more than 40 students have signed up for the Track.  Furthermore, owing to the Mapletree Real Estate Business Study Trip Grant, SMU has in the past year organised three study trips to China, Vietnam and Korea.  A total of 64 undergraduates have benefitted from this global exposure experience, which gave them the opportunity to interact with major real estate players overseas and develop an appreciation for the macro factors that influence real estate market performance.

 
[Photo: Mr Wong Mun Hoong addressing the audience at the Lecture.]

Mr Wong Mun Hoong, Chairman of the SMU Real Estate Programme Advisory Board and Regional Chief Executive Officer, Australia & North Asia of Mapletree Investments, said “Professor Sinai’s thoughts on how macroeconomic trends could affect REIT investors and their portfolio were particularly apt, given that Singapore has the largest REIT market in Asia, excluding Japan. We are very encouraged to see these constructive discussions take place, fulfilling the objectives of the Mapletree Real Estate Programme.”

The next Mapletree Annual Lecture will be held in November 2020.

[Photo: The rising trend of S-REIT managers adopting a global acquisition strategy set the foundation for a fruitful panel discussion on the local and international real estate industry.  The distinguished panel comprised (L-R) Ms Prof Todd Sinai; Ms Choo Oi Yee, Managing Director, Head of Singapore Global Banking, UBS AG; Mr Mark Chu, Managing Director, Co-Head of Asia Pacific, Eastdil Secured; and Mr Michael Smith, Regional CEO, Europe and USA, Mapletree Investments. The panel discussion was moderated by Professor Gerard George (far right), Dean of SMU Lee Kong Chian School of Business.]