Smart property investing with Isabella Teo
This MBA realtor equipped with an engineering background has a distinct approach to work with her clients’ requirements efficiently, in a trusty manner
Isabella Teo has a unique way of connecting with her clients. Beyond her warm demeanour and professionalism which are hallmarks of her services, she offers a skill that sets her apart from other realtors: a strong technical background. As an MBA-holder, Teo can conduct intensive market research, perform financial evaluations and vet investment proposals — skills that give her a huge advantage in the real estate business.
Indeed, figures and statistics are the language Teo uses to communicate with her clients, who comprise predominantly working professionals and property investors — sophisticated clientele who require a deep understanding of real estate market trends and data when making property decisions.
Teo offers consultancy services backed by her keen eye for numbers as well as her ability to make sense of complex data. Combined with her vast experience and knowledge in the real estate landscape, Teo listens and understands her clients’ needs, and is able to provide professional advice tailored to her clients — be it for own stay or investment purposes.
Teo’s exemplary work in the industry has earned her numerous accolades, including ERA Realty’s 2022 Rising Millionaire award and Top 50 Achievers award in 2021. “These awards are a testament to my hard work and putting clients first has always been my top priority. I would like to thank my mentors Chris Chen and Mark Teo, my clients and my family for supporting me all this while,” she says. Over the years, many of her clients have become friends who have, in turn, referred their friends and family members to her. “I appreciate the trust and long-term relationships that I have with them,” she adds.
Listen, understand and customise in an efficient manner
Given her background, Teo has developed a systematic approach when it comes to working with her clients. In any given situation, she assesses the data, research and trends in the property market that are relevant to the clients’ needs and presents those in an efficient manner to assist them in making sound decisions.
Teo has started to embrace digitalisation in her real estate business even before Covid. She realised with globalisation, clients have limited time, greater expectations and need a trusted realtor to work as a business partner to source for the right property in limited time. Video calls, data analysis, and email discussions are widely used in Teo’s work to streamline viewings so that the client can effectively shortlist the property in a timely manner.
Every client’s requirement is unique and every client has different service expectations, Teo believes. There is no one-size-fits-all strategy and she always keeps pace with changing customer demands, and listens to their needs to ensure that they have a hassle-free decision-making process. She will explain the entire sales and rental process to the clients upfront and guide them along the way, even with after-sales services like providing plumber, pest control advice, and more.
Passion with a successful mid-career shift
Prior to joining the real estate industry, Teo was in the field of research and development and product marketing for several years. Through her work at a number of multinational companies, Teo cultivated a strong analytical background and mindset.
Teo made the decision to carry out a mid-career switch from the engineering field to the real estate industry. Given her established career, it was a move that surprised friends and acquaintances, but not Teo, who has long held a passion for property.
As an avid traveller, one of Teo’s favourite pastimes during her travels is to observe real estate trends in the places she visited or learn about property prices in a particular city.
Teo obtained her real estate licence and she joined ERA in June 2014. “I contemplated joining the real estate industry much earlier, but I wanted to focus on my son before I venture into something new,” she shares. In any case, her inherent interest in property ultimately propelled her to take the plunge.
Financial freedom
Looking back, Teo is extremely proud of what she has accomplished so far and the resilient person she has become today. But among her many achievements, the one she is proudest of is achieving financial freedom at the age of 46. “I think it is important for women to be financially savvy and to take charge of their own investments,” she contemplates.
It’s a philosophy that has shaped not only her career path but impacted others, as she helps her clients build their real estate portfolios. Teo believes obtaining financial freedom is an important goal that applies to everyone, regardless of age or background. “I’ve started teaching this to my son as well, so he is prepared when it comes to making financial decisions and managing wealth,” she adds.
For Teo, having financial freedom gives her the bandwidth to take up other interests. Besides giving back to society through various avenues, she also enjoys other pursuits in life, such as nurturing her artistic side and keen eye for art by completing the Nanyang Academy of Fine Arts’ (NAFA) advanced certification in watercolour painting.
Leading the way
As a team leader to agents under her division, Teo’s passion for her work and life has also influenced her team members. Teo aims to unlock the full potential of each member, guiding them towards successful and rewarding careers that underpin their own financial freedom. “Everyone has their own version of what success is,” she relates. As such, Teo makes sure that she tailors her methods and guidance to best suit every member, so that they are always moving in the right direction.
Besides taking a very hands-on approach when it comes to helping her team, Teo strives to be a dedicated mentor that her team members can learn from. “I’m always there for my team,” she says.
Team leader, realtor, mother and daughter… Teo has much to balance in her life. But just like her love for watercolour art, that needs patience, perfection takes time, and the rewards will be that much sweeter.
a limited pipeline, the new-build space is substantially pre-leased, and many of the older office buildings like AXA Tower and Fuji Xerox Towers have been torn down to make way for new mixed-use developments.”
While there is still demand for “top-notch office space” and a market for economy-range office space, “there’s nothing much for the medium-sized users who want quality space”, says Lemke. “We believe that 112 Robinson can fill that gap very nicely.”
While AM alpha does not have a sweet spot per se, the $250 million to $350 million price range is “where we feel very comfortable”, says Lemke. “We are not the guys who shoot for multi-billion-dollar assets.”
Lemke is “not a fan” of leasehold property, preferring to purchase freehold assets. “It’s my observation that freehold assets are getting rarer and rarer,” he says.
‘Good buying opportunity’
Incidentally, Lemke was appointed the chair of The European Association for Investors in Non-Listed Real Estate Vehicles (INREV) in July 2021.
As a company, AM alpha has been been certified by Climate Partner to be “climate neutral” since May 2022. Hence, the firm has a similar playbook of value-adding by retrofitting existing buildings for its global portfolio.
On Jan 30, the family office acquired a mixeduse building on Coleman Street in London. The building has offices, retail and leisure units, just one street from Moorgate and close to the Bank of England. AM alpha intends to enhance the property, including redesigning the facade, installing end-of-trip facilities and improving the energy efficiency of the building.
AM alpha acquired the Coleman Street property on behalf of several investors represented by a fund manager from Hamburg. The seller of the building was asset manager Abrdn plc.
“The market in London has already adjusted downwards — by 20% to 25% — from the peak level,” observes Lemke. “It was a good opportunity to buy.”
Cushman & Wakefield and law firm Eversheds
Sutherland advised AM alpha on the deal. Squarebrook and CMS advised Abrdn on the sale.
The five-storey building at Coleman Street has a floor area of 2,500 sq m (26,910 sq ft). Built in 1981, the property was partly refurbished in 2013.
Origins
Set up in 2006, AM alpha began as a real estate investment vehicle for just one family. “We wanted to establish our own family office first, and to prove that it works,” says Lemke. “Once we had a track record to show what we can do, we invited other families in.”
Today, AM alpha is more of a multi-family office as it manages the real estate assets of several families based in Europe. “We do real estate allocation for the different families,” says Lemke. Several institutional investors have also participated in co-investments with the firm.
While the firm does not disclose total assets under management, Lemke says “it’s somewhere in the middle — between zero and EUR10 billion ($14.3 billion)”. When acquiring assets, the firm is open to joint ventures with others, “but our preference is to have control”, Lemke emphasises.
Early forays
Its first acquisition in Asia Pacific was in China, namely the former Tianchen Rose Plaza in Shanghai, purchased for EUR150 million in February 2010. The property was a commercial building with office and retail space on North Sichuan Road. AM alpha renovated and reopened the building in 2012 as a mid-tier shopping mall, One Prime.
AM Alpha then sold the building in 2015. “We saw the oncoming stress in the retail sector,” relates Lemke. Despite the office space being fully occupied and rents going strong, “we thought it was a good time to sell it”, he adds. They found a local buyer for the property and were able to make “a nice profit” from the sale, according to Lemke.
The firm has yet to reinvest in China, although Lemke sees opportunities in the future.
In Japan, AM alpha focused on prime commercial buildings in Tokyo over a decade ago. Its
first acquisition in July 2010 was Renai Aoyama Building in the commercial district of Aoyama, a four-minute walk from Omotesando and Gaienmae train station. A second property, Axall Roponggi, was purchased in April 2012, a year after the Fukushima nuclear disaster. The commercial building is just a minute’s walk from Roppongi train station. The firm has divested both office assets in Tokyo.
Banking on multi-family in Japan
AM alpha has since switched to the multi-family residential sector in Japan. In March 2020, it acquired a portfolio of 25 residential properties in Tokyo. Four properties were completed at the time of the acquisition, with the rest at various stages of completion and handover. AM alpha has a partnership with a construction company in Japan to build the properties. The firm also ensures that the buildings are energy-saving and have an energy rating.
“We remain convinced that residential, especially in Tokyo — and also in other parts of the country, like Osaka — is going to be very stable,” says Lemke. “We’re still deploying capital into that market.”
Other international investors are also seeking opportunities in the Japanese multi-family residential segment. “Increasingly, we are seeing colleagues from other firms,” says Lemke. “But we went into the Japan residential market early.”
Last September, AXA Investment Managers acquired a portfolio of 33 properties across Japan for US$421 million ($567.8 million). The properties were a mix of multi-family buildings (29) and purpose-built student housing projects (four) in Greater Tokyo and Greater Osaka. In March 2022, Allianz Real Estate acquired a portfolio of multi-family residential assets in Tokyo for US$90 million on behalf of its Allianz Real Estate Asia Pacific Japan Multi-Family Fund 1.
Ultimately, success in the Japanese multifamily residential space depends on expertise and experience, reckons Lemke. “Residential is the most asset management-intensive asset class you can buy,” he says. “We used to say, ‘If you can manage residential assets, you can manage office buildings.’”
Reinvesting in Australia
In Australia, AM alpha also exited its original office asset. It was an office building at 309 George Street, which it acquired in October 2011 for A$68.75 million. It sold the building in 2015 for 1.63 times higher at A$112.3 million.
“When we went into Australia in 2011, it was a good time to buy,” says Lemke. “Markets were down, and the vacancies and interest rates were high. It was perfect in terms of timing for us to move in.”
AM alpha has reinvested in Australia, acquiring the office tower 179 North Quay in Brisbane’s CBD in December 2018, followed by the heritage-listed, mixed-use building in Brisbane’s upand-coming Fortitude Valley District in April 2019. AM alpha purchased the colonial-style, former TC Beirne Department Store at Fortitude Valley District “in an off-market transaction”.
In 2021, AM alpha completed the acquisition of the largest industrial asset in Australia to date, with the purchase of Treasury Wine Estates Intermodal Facility in Adelaide, from SCT Logistics, for A$98 million.
“We were fortunate to get this asset,” says Lemke. “It was during the lockdown. But luckily, we had already seen the property and had known everything about it. And there were no foreign buyers but us.”
Last August, just a year after the purchase, AM alpha sold the Treasury Wine Estates Intermodal Facility for A$121 million ($109.7 million). The buyer was Sydney fund manager Fife Capital.
AM alpha had purchased the property in Adelaide for the longer term. “But we received an enquiry from a brokerge firm, asking if they could introduce a potential buyer,” says Lemke. “We agreed to talk. With the money from the sale, we can reinvest in something else.”
Lemke describes AM alpha’s investment style as “timing-driven”. He believes it’s a good time for AM alpha “to buy assets worldwide”. AM alpha’s favoured markets in Asia Pacific are Singapore, Japan, South Korea and Australia, he says. “Massive adjustments are already happening in Europe, which is also an opportunity.”