The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 1st February 2018

Top Story

Sector convergence, overlaps focus of next transformation phase: Heng Swee Keat
“I caution all our economic agencies that it is not our job to run business. It is our job to be helpful,” Finance Minister Heng Swee Keat said.  Responding to some quarters that have questioned the efficacy of Industry Transformation Maps (ITMs), Mr Heng said that firms have to do their part. “If businesses expect us to design a plan for them to just follow, then they will also not succeed.”

Singapore Economy

Business expectations still positive for H1, but lower than in previous survey
More companies expect business conditions for the next six months to improve, with the services sector edging out manufacturing slightly in terms of optimism levels.  But sentiment for both sectors has dipped since the previous quarter, as businesses are wary about whether the economic upswing would last.  These findings, released on Wednesday, were from two separate surveys on firms’ business expectations for January to June. The polls were done between December 2017 and last month.

Bank lending closes flat in December
Bank lending in Singapore closed off 2017 on a flat note, reflecting the contraction in lending in key business segments that include finance, construction and trade.  Loans through the domestic banking unit – which captures lending in all currencies, but mainly reflects Singapore-dollar lending – stood at S$652 billion in December, compared to S$654 billion in November, preliminary data from the Monetary Authority of Singapore (MAS) on Wednesday showed.

Singapore January total market cap up 2.1%
A surge of interest in finance and manufacturing stocks helped lift the total market capitalisation of listed companies on the Singapore bourse by 2.1 per cent in January from a month ago to S$1.03 trillion.  With 745 companies, the market cap as at Jan 31 represented a 12.6 per cent jump from a year ago when there were 746 companies.

MAS, EDB appoint new directors
The Monetary Authority of Singapore (MAS) and the Singapore Economic Development Board (EDB) will be making some changes to their boards, effective Feb 1, 2018.  MAS, Singapore’s central bank and financial sector regulator, announced that Attorney-General Lucien Wong, will be appointed to its board of directors. His term of appointment will be from Feb 1, 2018 to May 31, 2020.

Singapore Real Estate

Singapore an emerging hot market for private equity real estate funds
The recovery in office rents here may be turning Singapore into one of the most popular markets in the region for private equity real estate funds.  CBRE estimates that some US$6 billion may be deployed in Singapore from this year to 2020, with about US$4 billion having been invested here by these funds between 2014 and the third quarter of 2017.

First high-rise hub for metal, machinery and timber SMEs in 2020
JTC, the Singapore Cranes Association (SCA) and Singapore Timber Association (STA) announced on Wednesday an agreement to provide shared services and special infrastructure at TimMac@Kranji, the first high-rise development to bring together the metal, machinery and timbre (MMT) industries.

Chinatown Plaza up for collective sale, asking S$270m
Chinatown Plaza has been put up for a collective sale with an asking price of S$270 million, said Edmund Tie & Company, the marketing agent for the sale, on Wednesday.  The asking price equates to S$1,989 per square foot per plot ratio (psf ppr) of potential gross floor area (GFA) with no development charge payable.  The tender exercise closes at noon on March 15.

Katong Park Towers put up for en bloc sale with S$288m reserve price
Katong Park Towers has been put up for collective sale with a reserve price of S$288 million or about S$1,165 per square foot per plot ratio (psf ppr), according to Cushman & Wakefield, the appointed agent for the property.  The minimal development charge for the site is about S$5.6 million for the additional 10 per cent bonus balcony and an estimated lease upgrading premium of some S$51 million, Christina Sim, director of capital markets at Cushman & Wakefield, said on Wednesday.

Owner offers 1,696 sq m redevelopment site in Geylang for at least S$36m
The owner of a 1,696.3 square metre redevelopment site in the Geylang neighbourhood is putting the property up for tender with an asking price of S$36 million, according to marketing agent Edmund Tie & Co.  The site, which occupies the odd numbered lots 1 through 21 on Lorong 18 Geylang and offers a 60 metre frontage, is being offered on a 99-year leasehold tenure.

Companies’ Brief

Frasers Property to ride global platforms for growth
What’s in a name? For Frasers Centrepoint Limited (FCL), a name underscores its identity and branding, which is why it is taking on a new name to reflect the breadth and depth of its property businesses.  Dropping the current name it has been associated with since its re-listing on the Singapore bourse in 2014, it is now called Frasers Property.  All its development, retail, commercial and business parks, as well as logistics and industrial businesses in every geography will now operate as Frasers Property.

OUE Commercial Reit’s Q4 distribution income up 14.6%
An absence of performance fees and higher income support drawdown lifted fourth-quarter results for landlord OUE Commercial Reit (OUE C-Reit).  Q4 income available for distribution rose 14.6 per cent to S$17.7 million from the previous year, it said in a Singapore Exchange filing on Jan 31.  Distribution per unit (DPU) dipped to 1.14 Singapore cents, down 3.4 per cent from the previous year, due to an enlarged unit base from an equity placement completed in March 2017.

AA Reit’s Q3 DPU drops 5.4%
AIMS AMP Capital Industrial Reit (AA Reit) recorded a distribution per unit (DPU) of 2.62 Singapore cents for its third quarter 2018, down 5.4 per cent from 2.77 cents previously.  Gross revenue fell 4.9 per cent from a year ago to S$28.9 million, mainly due to lower rental and recoveries from 20 Gul Way, as five phases of the property reverted to multi-tenancy leases, and the expiry of the master lease at 3 Tuas Avenue 2.

Cache Logistics Trust to acquire nine properties in Australia for A$177.6m
Cache Logistics Trust said it has agreed to acquire a portfolio of nine logistics properties located in the Australian states of Victoria, New South Wales and Queensland for A$177.6 million (S$188.3 million).  Including stamp duties and other expenses, the total acquisition cost will amount to A$191 million (S$203 million).  With an initial net property yield of 6.4 per cent, this portfolio of nine properties span 142,103 sq m (1.53 million sq ft) in gross lettable area.

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