Source : Business Times - 5 Nov 2008
CITIBANK Singapore is offering an overdraft to affluent clients collateralised on their global properties.
The bank said that its global home financing solution allows high net worth clients to consolidate mortgage financing on residential properties here and abroad into one overdraft that they can use at their convenience.
‘It’s aimed at customers whose properties have low leverage or none at all, and helps them take advantage of market opportunities,’ said Anil Wadhwani, head of consumer markets at Citi Singapore.
In conversations with customers, Citi has found that those with properties in different countries find it cumbersome dealing with various bankers when investment opportunities arise.
Some 40 per cent of Citi Singapore’s affluent client base would be interested in properties overseas, said Mr Anil.
The bank’s latest product gives a line of credit by consolidating a customer’s property portfolio across markets. Customers need only to deal with one relationship manager in Singapore, he said.
Tan Chia Seng, head of commercial markets at Citi Singapore, said: ‘It provides clients with the means to unlock the equity in real estate to tap market opportunities without having to sell their properties.’
Mr Tan said that the product allows clients to move quickly as and when they require investment funds.
The overdraft facility can be used for a range of investments including stocks, bonds and properties.
For a start, the product will apply to properties in six markets - Singapore, Hong Kong, Malaysia, Australia, Canada and the UK.
Up to 70 per cent of the value of each property in these six markets can be aggregated into the overdraft facility.
The line of credit is offered in a range of currencies, comprising the Singapore dollar, US dollar, Australian dollar, Hong Kong dollar, euro, Japanese yen, sterling and Swiss franc.
Property consultant Knight Frank said that the total value of residential properties transacted in Singapore, the UK, Hong Kong and Malaysia in the 12 months ended Sept 30, 2008 was about US$315 billion. Of this, a quarter or about US$79 billion of properties in these markets were bought by foreigners.
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