BUILDING PROGRESS

The LEGO Group has announced plans to triple its investments in sustainability over the next three years to assist it in achieving net zero goals.

The toy company is investing US$1.4 billion into designing carbon neutral facilities and boosting the production of renewable energy at its sites. It also plans to work with suppliers to reduce environmental impact, citing that 98 percent of greenhouse gas emissions come from outside its operations.

This investment is part of the LEGO Group’s plan to reduce greenhouse gas emissions by 37 percent by 2032 and achieve net zero by 2050.

“This new, long-term goal will ensure that the decisions we make today will reduce our carbon footprint over the coming decades. We know that children are looking to us to do what’s right,” LEGO Group CEO Niels Christiansen said in a statement.

“Caring for the environment is one of their top concerns, and we receive hundreds of letters a year with great ideas from kids on how we can make a difference. They are holding us to account, and we must set ambitious goals and take meaningful and lasting actions to protect their futures.”

Rethinking Real Estate

The past year has been a tumultuous time for many property investors, with unprecedented interest rate rises leading to diminishing returns and falling property prices.

To help investors navigate the current economic climate, Scott O’Neill, the Founder and Managing Director of Rethink Investing, has released an updated and revised version of his bestselling book, Rethink Property Investing.

“Rethink Property Investing is a practical how-to guide for both experienced investors and beginners alike,” O’Neill said of the book’s relaunch.

“For investors looking to make the switch from residential, the book demystifies commercial property investing and takes the reader step-by-step through real property deals, including those purchased by myself and my wife for our personal portfolio.”

The new version delves deeper into its initial concepts, while also encompassing recent global economic and social shifts, and their impacts on commercial real estate investments.

High Stakes

According to a joint statement released in September, South-East Asia’s largest telecom operator Singapore Telecommunications (Singtel) has agreed to sell a 20 percent stake in its regional data center business to United States private equity giant KKR.

The US$800 million deal marks KKR’s largest investment in South-East Asian infrastructure, a sector that has been a recent hotbed of global investment and is expected to grow 17 percent over the next five years.

“The investment by KKR crystallizes the latent value of our data center assets and we hope this illuminates value for our shareholders in the coming months,” Singtel CFO Arthur Lang said in the statement.

“With more than SGD$6 billion [US$4.4 billion] being unlocked since we embarked on our strategic reset two years ago, we continue to focus on unlocking value for our shareholders.”

KKR will have the option to raise its stake to 25 percent in 2027.

Conquering Commercial Property

From his book, Rethink Property Investing, Scott O’Neill offers the following five tips to investors who are looking to get into the commercial property market or grow their existing portfolios.

1. Prioritize cashflow in commercial property: “The financial health of your commercial property portfolio depends on your ability to ensure that rental income consistently exceeds operating expenses.”

2. Develop strong financial habits early: “Consistently saving for future property acquisitions, maintaining a financial buffer for unforeseen expenses, and avoiding excessive debt are vital practices for long-term success.”

3. Seek value-add opportunities in commercial real estate: “Look for commercial properties with untapped potential or areas where improvements can be made.”

4. Explore off-market commercial properties: “Expand your horizons beyond publicly listed commercial properties. Off-market sales in the commercial real estate sector can offer distinct advantages.”

5. Build the right team for commercial property success: “Each member of your team plays a critical role in helping you make informed decisions, navigate complex transactions, and ensure the long-term profitability of your commercial property portfolio.”