Singapore Real Estate
Embattled S-Reits headed for slow recovery next year
The hospitality, office and retail sector real estate investment trusts (Reits) are expected to recover next year, analysts said, given positive developments on the vaccine front. But the fine print says this recovery will not be smooth. Volatility in the share prices of retail and hospitality Reits is anticipated, said OCBC in a Nov 27 report.
For retail Reits, domestic spending can mitigate absence of tourist dollars
DBS Group Research believes retailers and mall landlords in Singapore can capture a significant part of outbound expenditure by locals, and this will more than compensate for the lack of tourist spend in 2021. Given that Singaporeans are still unable to travel due to Covid-19-related restrictions, what they usually spend overseas may now be diverted to the domestic scene instead.
Border reopenings another plus for Singapore’s recovery
News about promising Covid-19 vaccine candidates is fuelling private-sector economists’ optimism about Singapore’s economic growth in 2021, with nearly half viewing the reopening of borders as a new upside, according to a quarterly survey by the Monetary Authority of Singapore (MAS) released on Wednesday.
S’pore will put in place safeguards as host of WEF meeting: Chan
Singapore will put in place three levels of safeguards to reassure both Singaporeans and participants when the World Economic Forum (WEF) meeting is held here next year, Trade and Industry Minister Chan Chun Sing said yesterday. First, Singaporeans, especially those who may interact with participants, will need to be assured that the meeting can be conducted safely, with visitors entering the country.
FLCT to divest three South Australia properties for A$29.6 million
The manager of Frasers Logistics & Commercial Trust (FLCT) has entered into a sales and purchase agreements to divest three leasehold industrial properties in South Australia, it said on Thursday. The total consideration for the properties is A$29.6 million (S$29.5 million), which represents a 19.4 per cent premium to their book value of A$24.8 million as at Sept 30, 2020, the manager said in the exchange filing.
Starhill Global Reit prices S$100m perps at 3.85%
Starhill Global Real Estate Investment Trust’s (Starhill Global Reit) trustee will issue S$100 million of 3.85 per cent perpetual securities, the manager said in a bourse filing on Wednesday night. The perps will be issued under the Reit’s S$2 billion multi-currency debt issuance programme. If they are not called, the coupon rate will reset on Dec 15, 2025, and every five years thereafter to the prevailing Singapore dollar five-year swap offer rate plus an initial spread of 3.292 per cent per annum.
Entities linked to Al-Futtaim extended Robinsons S$159.2m in loans
Entities related to the Al-Futtaim group, the parent company of Robinsons, extended S$159.2 million in loans to Robinsons, a document by its liquidators showed, shedding more light on the beleaguered department store operator’s state of affairs.
Temasek hires former Ikea sustainability head as Robin Hu leaves role
Temasek International’s head of sustainability and stewardship group Robin Hu will leave his role at the end of this year, with some of his key functions taken over by Ikea’s former chief sustainability officer Steve Howard. Mr Hu will take on a different position and remain part of the firm’s senior leadership team, a Temasek spokesperson said in an emailed statement, without specifying what the new role would be.
LMIRT faces opposition from unitholders on proposed Lippo Mall Puri acquisition
The acquisition by Lippo Malls Indonesia Retail Trust (LMIRT) of Lippo Mall Puri was in the works for over a year. But two weeks before unitholders are due to vote on the transaction, opposition has arisen to the deal. This week, LMIRT management revealed that it had on Dec 4 received a letter from some LMIRT unitholders requesting the addition of a new resolution for the upcoming extraordinary general meeting (EGM) on Dec 14.
Proper incentives, business acumen needed for internalised Reit manager model to work
The failed merger between Sabana Shari’ah Compliant Real Estate Investment Trust (Sabana Reit) and ESR-Reit has resurfaced the question of whether an internalised Reit management model is viable for Singapore Reits (S-Reits) in the sponsor-controlled universe here.
Views, Reviews, Forum & Others
Endgame for Covid-19
At first glance, nothing ahead in 2021 could be as bad as 2020. We have been enduring the worst economic crisis in 80 years and the worst global health crisis in 100 years – events that have profoundly damaged lives and livelihoods around the world. The International Monetary Fund (IMF) projects that when we finally close the books on 2020, the world economy will have contracted 4.4 per cent.
Utilising 5G to better our everyday life
People are waking up and examining how technologies – including artificial intelligence (AI), machine learning, Internet of things (IoT) – will best and most securely connect them with the people and things that matter most. At Singapore’s TechInnovation summit this week, I specifically questioned how 5G’s optimisation of the physical world will change our everyday life.
Update on COVID-19 (Coronavirus Disease 2019) Situation
Six new imported cases; cruise passenger tests negative
Six new coronavirus cases were confirmed yesterday, taking Singapore’s total to 58,291. All six cases were imported and had been placed on stay-home notice on arrival in Singapore, said the Ministry of Health (MOH).
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation
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