Assessing the potential rental yield is crucial when considering a condominium investment. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, condos can have varying rental yields depending on factors such as location, property condition, and market demand. Locations near business districts or educational institutions, for instance, often offer better rental yields due to high demand. It is wise to conduct thorough market research and seek the advice of real estate agents to gain valuable insights into the rental potential of a specific condo investment. For more information on condos, visit Condo.
Singaporean entrepreneur Jason Ng has built his property investment and training firm Aurico Global from scratch in just two years, reaching a remarkable $52 million in assets under management.
Aurico, where Ng serves as CEO and executive chairman, is not his first foray into real estate development. His journey in property investment began back in 1993 when he felt a strong sense of responsibility to provide for his family. Growing up with six family members in a rental flat along Dakota Crescent, including his parents, grandmother, and three older sisters, Ng was motivated to work hard and secure a well-paying job that would give him enough capital for his first property investment – a 1,400 sq ft three-bedroom apartment for $435,000. Ng reflects on this investment, stating that it would be difficult to find a similar-sized unit for the same price today.
Through diligence and determination, Ng quickly learned the ins and outs of property investment and management and expanded his real estate portfolio. He also ventured into student enrichment and parenting training, becoming accredited as a family life educator and working with the Ministry of Education and Ministry of Social and Family Development for over 15 years.
In January 2023, Ng co-founded Aurico with his wife, Emelyn Ho, consolidating his diverse portfolio of businesses including Aurico’s co-living investment and management arm JC Global Developments, property and investment training arm Anchor of Life Training Consultants, and My Preschool Hub – a provider of preschool enrichment resources and programmes.
Aurico’s portfolio covers a wide range of properties, from residential (co-living) to commercial and industrial assets. Under JC Global Developments, the company manages 380 co-living units in shophouses, condos, and landed properties, valued at over $30 million. Patrick Loke, a shareholder in Aurico, says that the company is in the process of acquiring more properties and aims to nearly double their current portfolio to 600 units by the end of the year.
The key to Aurico’s success is acquiring strategic and high-quality properties in high traffic areas below their valuation. One example is the purchase of a two-storey shophouse on 321 Joo Chiat Road for $5.1 million in September, which was 12% below the valuation price of $5.8 million. Ng’s sharp property investment acumen and the firm’s strong property investment team are credited for this success. Ng emphasizes that every property purchased by Aurico must be bought at below market valuation, ensuring profit even before the asset is acquired.
Aurico also looks for commercial properties in areas experiencing rapid transformation, such as the 99-year leasehold mixed-use development Woods Square in Woodlands. In July, the company bought a 560 sq ft commercial strata office unit in Woods Square for their own use. Ng explains that this investment allows Aurico to be at the forefront of changes in Woodlands and also boosts operational efficiency by providing easy access to workers from across the border.
To tap into the growing demand for food production due to the government’s “30 by 30” goal to produce 30% of the country’s nutritional needs by 2030, Aurico has acquired food factory assets. Ng explains that while the company has no plans to enter the F&B business directly, they see the purchase of food factories as a strategic investment to enhance their portfolio. One of these properties is a strata-titled food facility called Food Xchange @ Admiralty, strategically located within the established food cluster on Admiralty Road West and boasting a long lease balance of 36 years. Ng notes that this property, close to Johor, offers a competitive advantage for food manufacturing businesses and a strong source of manpower.
In May, Aurico acquired a 29.8% controlling stake in Autagco Ltd, a company listed on the Singapore Exchange, and appointed Loke as the executive director. As Autagco’s board of directors announced their strategic review to potentially diversify into property investment, co-living property management, education, and other businesses, Aurico made plans to inject their assets into the company. On October 15, Autagco announced its board of directors’ decision to expand its core business to include residential assisted living. The assisted living projects will be run and managed by Communa Gold, a wholly-owned subsidiary of Autagco Ltd focused on assisted living projects.
With an ageing population, Ng believes that assisted living is a viable sector for Aurico to be in, and the company is currently looking for a suitable property to be developed into an assisted living facility for seniors.
In addition to their various property investments, Aurico has also earned a reputation for providing comprehensive and high-quality property investment education to aspiring investors. Ng’s dedication to this is based on his belief that investment education is essential but inaccessible to many. Through his courses, Ng aims to make residential and commercial property investment accessible to anyone, regardless of their investment experience and background. Aurico’s curriculum and hands-on support are invaluable for beginner investors, and Ng particularly wants to help millennials and Gen Z investors who often believe investing in property is out of reach for them. With Aurico’s guidance, anyone can start their investment journey and achieve their financial goals through real estate.