DAILY NEWS

Daily News – 9th November 2018

Singapore Economy

HK-listed Singapore companies fizzle after IPO sizzle
Several homegrown Singapore companies have sought listings in Hong Kong, but experts warn that investor familiarity is crucial to avoid being buried in the graveyard of illiquid and uncovered stocks. This year alone, Hong Kong Exchanges and Clearing welcomed Singapore’s real estate firm ZACD Group, consumer services provider ISP Global, and healthcare company IAG Holdings to its Growth Enterprise Market (GEM) board.
https://www.businesstimes.com.sg/government-economy/hk-listed-singapore-companies-fizzle-after-ipo-sizzle

Trade tensions ‘may impact debt payments among SMEs’
The ongoing Sino-US trade conflict may be making its impact felt on Singapore small and medium-sized enterprises (SMEs) that are most exposed to global trade, according to a study of payment data from more than 120,000 firms in Singapore. The two sectors most vulnerable to global trade tensions in particular are the commerce-wholesale sector and the transport/storage sector, which also showed the biggest declines when it came to payment within terms.
https://www.businesstimes.com.sg/government-economy/trade-tensions-may-impact-debt-payments-among-smes

Singapore Real Estate

HDB resale prices dip 0.2% in October, volume slips 0.3%
Resale prices of HDB flats dipped 0.2 per cent in October 2018 from September, according to flash estimates released by real estate portal SRX Property on Thursday. October’s prices were down 14.3 per cent from their peak in April 2013, and also marked a 2.1 per cent drop from the same month last year. Three-room flats and five-room units saw a price increase of 0.8 per cent and 1.5 per cent respectively, while prices of four-roomers and executive flats fell 0.7 per cent and 2.2 per cent respectively.
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-dip-02-in-october-volume-slips-03

Corner 999-year leasehold shophouse in Serangoon Gardens for sale at S$25m
A 999-year leasehold corner shophouse in Serangoon Gardens is up for sale with an indicative guide price of S$25 million. The two-storey non-conservation shophouse, located at 56 Serangoon Garden Way, occupies a land area of 2,122 square feet and total built-up area of 3,482 square feet. According to marketing agent JLL, which is currently inviting offers through an expression of interest (EOI) exercise, the shophouse benefits from a wide dual frontage and high football.
https://www.businesstimes.com.sg/real-estate/corner-999-year-leasehold-shophouse-in-serangoon-gardens-for-sale-at-s25m

SingEx Venues to continue operating Singapore Expo for up to 10 years
SingEx Venues has been appointed to continue to operate Singapore Expo Convention & Exhibition Centre (Singapore Expo) for up to 10 years starting from 2019, beating two other contenders, Singapore Tourism Board (STB) announced on Thursday. STB had published a request for proposal (RFP) in December 2017 as SingEx’s management contract is due to expire at the end of this year. The tender closed on Feb 14.
https://www.businesstimes.com.sg/companies-markets/singex-venues-to-continue-operating-singapore-expo-for-up-to-10-years

Companies’ Brief

Property development boosts CDL’s Q3 net profit
City Developments (CDL) said strong contribution from property development, especially its New Futura condo in Leonie Hill Road in Singapore, helped to boost the group’s third quarter net profit by 10.4 per cent to S$161.8 million from the previous year. For the three months ended Sept 30, revenue increased 17.7 per cent to S$1.02 billion from the year-ago period.
https://www.businesstimes.com.sg/companies-markets/property-development-boosts-cdls-q3-net-profit

OUE C-Reit’s Q3 DPU slides on lower revenue, higher interest expenses
Lower revenue and higher interest expenses dampened results for OUE Commercial Reit (OUE C-Reit) for its third quarter ended Sept 30. Distribution per unit slid to 0.55 Singapore cent from 0.62 Singapore cent in the previous year. The latter was restated to include the 1.3 billion new units issued on Oct 30 to finance the purchase of the office component of OUE Downtown. This acquisition was completed on Nov 1.
https://www.businesstimes.com.sg/companies-markets/oue-c-reits-q3-dpu-slides-on-lower-revenue-higher-interest-expenses

Ho Bee Land’s Q3 profit up on higher share of associates’ profits
Boosted by higher share of profits of associates, property developer Ho Bee Land’s third quarter net profit rose nearly 25 per cent year on year to S$67.75 million. Share of profits of associates leapt about 54 per cent to S$44.21 million, thanks to development projects in Shanghai and Zhuhai.
https://www.businesstimes.com.sg/companies-markets/ho-bee-lands-q3-profit-up-on-higher-share-of-associates-profits

Mapletree Logistics Trust to acquire Gyeonggi-do logistics property for 37.85b won
Mapletree Logistics Trust (MLT) plans to acquire Wonjin Logistics Centre in South Korea from Wonjin Logistics for 37.85 billion won (S$46.4 million). The acquisition is expected to be accretive, with an initial net property income yield of about 6.5 per cent based on the purchase price of 37.85 billion won, MLT said on Thursday evening.
https://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trust-to-acquire-gyeonggi-do-logistics-property-for-3785b-won

BHG Retail Reit reports 5.7% drop in DPU for Q3
BHG Retail Real Estate Investment Trust (BHG Retail Reit) has reported a distribution per unit (DPU) of 1.33 Singapore cents for the third quarter ended Sept 30, 2018, down 5.7 per cent from the 1.41 Singapore cents reported the year before. Its gross revenue was up 5.1 per cent to S$17.3 million, from S$16.5 million. Its net property income was 3.5 per cent higher at $10.9 million, compared to $10.5 million a year ago.
https://www.businesstimes.com.sg/companies-markets/bhg-retail-reit-reports-57-drop-in-dpu-for-q3

Views, Reviews, Forum and Others

Stricter rules and factory checks for cladding on buildings
Factory checks and stricter testing requirements are among measures to be rolled out to ensure that building cladding used here meets fire safety standards. The Singapore Civil Defence Force (SCDF) will also propose legislation by next year to hold errant parties responsible if they cause panels to be used wrongly on building exteriors, it said yesterday.
https://www.straitstimes.com/singapore/housing/stricter-rules-and-factory-checks-for-cladding-on-buildings