DAILY NEWS

Daily News – 18th and 19th October 2017

Singapore Economy

Expectations are high for Q3 earnings
As the third-quarter earnings season begins in earnest, expectations are running high among some fund managers and analysts. With strong Q3 gross domestic product (GDP) numbers confirming an earnings recovery story in 2017, Singapore companies like banks and manufacturers have the potential to beat already-raised expectations, they say.
http://www.businesstimes.com.sg/companies-markets/expectations-are-high-for-q3-earnings

September NODX stuns economists with reversal into contraction
After four months of solid expansion, Singapore’s exports stunned economists with a 1.1 per cent contraction in September, led by erstwhile star performer electronics. The big question now is: does the pullback signal that the party is over for Singapore’s exports, or does it mean a temporary slowdown for the rest of the year, as many private-sector economists have predicted?
http://www.businesstimes.com.sg/government-economy/september-nodx-stuns-economists-with-reversal-into-contraction

Living it up? It’ll cost more now in Singapore
Singapore has dropped a notch in Julius Baer’s Lifestyle Index in 2017. But at third place, it remains one of the costliest places in Asia for luxurious living. Hong Kong jumped two notches up to become the most expensive city on a price-weighted basis, thanks to an upward swing in the territory’s home prices. It is also the most expensive city for fine dining and business class flights.
http://www.businesstimes.com.sg/consumer/living-it-up-itll-cost-more-now-in-singapore

e-commerce growth set to slow in Singapore: Worldpay
Singapore is the third largest e-commerce market in South-east Asia, despite a relatively small population but the online shopping growth is set to slow as most adults already buy online. Some 73 per cent of adult Internet users already shop online and credit cards are overwhelmingly the payment method of choice, though e-wallets are growing, said Worldpay’s annual global payments report.
http://www.businesstimes.com.sg/technology/e-commerce-growth-set-to-slow-in-singapore-worldpay

Singapore Real Estate

Singapore most robust nation in Asia-Pac for data centre operations: Cushman & Wakefield
Singapore has been rated Asia-Pacific’s top location for data centres in a report by Cushman & Wakefield. A risk index run by the global real estate services firm has ranked Singapore as the most robust market for the business operations of data centres. Singapore’s score of 84.5 out of 100 was ahead of South Korea’s 83.23, Hong Kong’s 78.73, Japan’s 76.48 and Australia’s 68.18, the report, which was released this week, showed.
http://www.businesstimes.com.sg/technology/singapore-most-robust-nation-in-asia-pac-for-data-centre-operations-cushman-wakefield
http://www.straitstimes.com/business/spore-most-robust-data-centre-market-in-asia-pacific-study?login=true

Collective sales – reuse, renew, recycle
The number of successful collective sales in the last six months has attracted much media attention. Most analysts focus on the high prices paid by developers or the substantial additional supply that could result as the sites are redeveloped.
http://www.businesstimes.com.sg/real-estate/collective-sales-reuse-renew-recycle

75 investors win bid to get back $8m over NZ property deal
A years-long wrangle over a property investment in the South Island that went sour has ended on a sweet note for some 75 investors, mainly Singaporean, when New Zealand’s top court ruled that they should get back their deposits of NZ$8 million (S$7.8 million), which includes interest.
http://www.straitstimes.com/singapore/courts-crime/75-investors-win-bid-to-get-back-8m-over-nz-property-deal?login=true

Changi Garden sold to Chip Eng Seng for S$249m
Property group Chip Eng Seng has picked up Changi Garden in a collective sale for S$248.8 million, a price that consultants say will set a new and much-higher benchmark for properties in the vicinity. The listed company beat eight other bidders with a price that was 27 per cent above residents’ initial asking price of S$196 million. The price for the freehold site works out to an auspicious S$888 per sq ft per plot ratio (psf ppr).
http://www.businesstimes.com.sg/real-estate/changi-garden-sold-to-chip-eng-seng-for-s249m
http://www.straitstimes.com/business/changi-garden-sold-en-bloc-for-2488m

HSR land acquisition process has started: Najib
The land acquisition process for the Kuala Lumpur-Singapore High Speed Rail (HSR) has begun, said Malaysian Prime Minister Najib Razak on Tuesday, adding that a three-month public consultation for Malaysians to give feedback or raise concerns will be launched next month.
http://www.businesstimes.com.sg/government-economy/hsr-land-acquisition-process-has-started-najib
http://www.straitstimes.com/asia/se-asia/land-acquisition-process-begins-for-kl-spore-hsr

Companies’ Brief

Ascott invests in its first Silicon Valley hotel for S$81.5m
The Ascott Limited (Ascott) on Thursday said it would acquire and refurbish The Domain Hotel, a freehold hotel in Silicon Valley, California, for a sum of S$81.5 million. The aim is to capture the fast-growing demand from global technology companies and multinational corporations. The 136-unit hotel will continue to operate as it undergoes refurbishment in phases before being rebranded to Citadines Cupertino Sunnyvale in the fourth quarter of 2018.
http://www.businesstimes.com.sg/companies-markets/ascott-invests-in-its-first-silicon-valley-hotel-for-s815m
http://www.straitstimes.com/business/companies-markets/ascott-buys-silicon-valley-hotel-its-4th-us-acquisition-in-five-months

Oxley Holdings raises over S$12m from sale of treasury shares
Home-grown property developer Oxley Holdings (Oxley) said Wednesday morning that it has raised about S$12.95 million from the sale of over 22 million treasury shares. The sale of the treasury shares through Maybank Kim Eng Securities drew about 34 investors, including Asdew Acquisitions, Island Asset Management, ICH Capital and various corporate and individual investors, Oxley said.
http://www.businesstimes.com.sg/companies-markets/oxley-holdings-raises-over-s12m-from-sale-of-treasury-shares
http://www.businesstimes.com.sg/companies-markets/oxley-raises-s1295m-from-treasury-shares-sale-to-34-investors
http://www.straitstimes.com/business/oxley-raises-1295m-in-share-sale?login=true

ESR-Reit eyes S$111m sale and leaseback deal with Hyflux
The trustee of ESR Real Estate Investment Trust (ESR-Reit) is set to acquire a Tuas South property at an estimated cost of S$111 million from water treatment specialist Hyflux primarily for the purpose of leasing it back to the latter. ESR-Reit’s trustee has entered into an option agreement with Hyflux for the sale and leaseback of the property at 8 Tuas South Lane.
http://www.businesstimes.com.sg/companies-markets/esr-reit-eyes-s111m-sale-and-leaseback-deal-with-hyflux

Keppel Reit’s Q4 DPU shrinks amid rise in units
Office landlord Keppel Reit’s third-quarter distribution per unit (DPU) eased to 1.4 Singapore cents from 1.6 Singapore cents in the same year-ago period. This was partly due to an expansion in the number of units to 3.35 billion as at Sept 30, 2017 from 3.28 billion a year earlier.
http://www.businesstimes.com.sg/companies-markets/keppel-reits-q4-dpu-shrinks-amid-rise-in-units
http://www.straitstimes.com/business/companies-markets/keppel-reit-reports-lower-dpu-of-14c-for-3rd-quarter

Hong Kong developer set to emerge as 28% shareholder of Sapphire Corp
Two of Sapphire Corp’s largest shareholders are selling a 27.96 per cent stake in the company to Hong Kong-listed Hong Kong International Construction Investment Management Group (HKICIM) in a share swap that values Sapphire’s shares at 51 Singapore cents apiece.
http://www.businesstimes.com.sg/companies-markets/hong-kong-developer-set-to-emerge-as-28-shareholder-of-sapphire-corp

Investors rebel against S$3.2 billion Millennium & Copthorne hotels bid by City Developments
Two fund management firms have joined an investor revolt against the planned 1.8 billion pound (S$3.23 billion) takeover of Britain’s Millennium & Copthorne Hotels (M&C) by City Developments Limited (CDL), its majority shareholder.
http://www.todayonline.com/singapore/two-investors-join-rebellion-against-24-bln-mc-hotels-takeover

Views, Reviews & Forum

Ready to swop gated condos for open-plan ones?
One-North Residences in Buona Vista is a condominium but its outdoor plaza and the retail outlets on the ground floors of its residential blocks – which include a minimart and cafeteria – are open to the public. A mix of low gating and transparent barriers gives the public a glimpse into the green spaces within, while lift lobbies to homes, pools and a gym can be accessed only by using a card.
http://www.straitstimes.com/opinion/ready-to-swop-gated-condos-for-open-plan-ones?login=true