EDB appoints 3 European business leaders to attract more investors to Singapore
The Economic Development Board has appointed three business leaders from Germany and Austria to coax their countrymen to invest more in Singapore. The trio, called economic ambassadors, will share their extensive experience in Asia with small and medium enterprises from their countries – known as Mittelstand – and encourage them to develop their business in Singapore, as well as use the Republic as a springboard to expand in the region. Prime Minister Lee Hsien Loong presented them with certificates of appointment at a ceremony at the Charles Hotel in Munich on Monday.
Business travel spending in Singapore to grow faster than world average
Business travel spending for Singapore is projected to grow by 4.3 per cent this year – slightly above the global average – to S$17.2 billion, according to a report. The report by the World Travel and Tourism Council (WTTC) and Travelport estimates that worldwide business travel spending would rise by 4 per cent to about US$1.2 trillion, driven by the Asia-Pacific, and will increase by 3.7 per cent per year to US$1.72 trillion in 2027.
Singapore Real Estate
Q2 prime office rents up – first rise in 9 quarters
Premium office rents rose in the second quarter – the first increase in nine quarters, according to Cushman & Wakefield. Grade A central business district rents rose 1.7 per cent from the first quarter to $8.51 per square foot per month. The rebound was led by take-up in Marina Bay, where rents surged 5.8 per cent, a reversal from the first quarter, where rents in the Marina Bay area were down 1 per cent. They were driven mainly by a healthy take-up rate for the new office towers at Marina One, which are believed to be about 70 per cent leased ahead of completion.
PropNex now Singapore’s largest property agency
PropNex Realty has become the largest real estate agency here with 6,688 agents, after some 80 per cent of Dennis Wee Group (DWG) salesmen crossed over with the merger of the two agencies. Based on the latest agent count on the Council for Estate Agencies registry on Monday, PropNex has nudged long-time No 1 agency ERA Realty – whose agent strength stood at 6,176 – off the top place. Following a memorandum of understanding inked last month for the merger of the homegrown agencies PropNex and DWG, 845 of DWG’s 1,063 agents have signed the PropNex Associate Agreement, consenting their transfer to PropNex Realty.
From Sungei Road to Golden Mile Tower
The Sungei Road market may make a comeback this weekend at Golden Mile Tower if the market’s association manages to secure the necessary permits from the authorities. Association chairman Koh Eng Khoon, 76, said the building management of Golden Mile Tower agreed to let it use the sixth-floor carpark to hold its flea market. Nearly half of the 200 vendors have expressed interest in moving there. There will also be about 10 newcomers.
RB Capital mulls sale of Farrer Park hotel
RB Capital is considering sale of its Park Hotel Farrer Park, after receiving unsolicited offers since the hotel began operations just about a month ago. Kishin RK, chief executive of RB Capital, said the 300-room hotel was recently valued at about S$390 million, or S$1.3 million per room, but added: “We are not quoting a specific price but will let the market determine the true price of this upscale hotel through a global expressions of interest (EOI) exercise”.
OUEHT backed by growth catalysts amid headwinds
The hospitality industry is facing a competitive operating environment with a substantial amount of new supply slated to come onstream and softer corporate demand from some sectors. But OUE Hospitality Trust (OUEHT) could be well placed among industry peers, especially amid expectations of a recovery in the sector next year, some analysts reckon.
Yanlord Land acquires Zhuhai property company for 600m yuan
Yanlord Land Group is acquiring Greens Investments, which owns property development and management entities in Zhuhai, China, for 600 million yuan (S$122.2 million). The acquisition was undertaken through Yanlord’s wholly owned subsidiary, Yanlord Land. Greens Investments owns a 60 per cent interest in Zhuhai International Golf Amusement Co, which in turn owns 90 per cent of Zhuhai International Golf Property Management Co.
Ngee Ann Development loses appeal in Takashimaya rent case
Landlord Ngee Ann Development (NAD), which had earlier lost its rent calculation dispute with department store Takashimaya, has lost its appeal. NAD had sued Takashimaya – the anchor tenant at Ngee Ann City on Orchard Road since 1993 – after both sides reached an impasse on the meaning of “prevailing market rental value” in the lease agreement. Takashimaya leases about 56,000 square metres of space at Ngee Ann City, of which 38,000 sq m is occupied by its department store. About 13,900 sq m is sublet to speciality shops, which command higher rent.
Views, Reviews & Forum
Provide more assurances about 99-year lease flats
The Singapore Land Authority announced recently that there will be no compensation for the owners of 191 terrace houses at Geylang Lorong 3 when the leases expire in 2020. The report “Options limited as 99-year leases shorten, but homeowners not in rush to sell” (June 29) said there are 48 private developments that are more than 30 years old. When 99-year leases shorten to less than 60 years, their property values drop.
Global Economy & Global Real Estate
Britain’s Carillion CEO steps down as firm warns on profit
China’s June factory price inflation subdued on modest raw materials recovery, uncertain economy
Sunac to pay 63.2b yuan for Wanda assets in China’s largest property deal
China’s big land grab: Records topple as developers splash out
Legal woes raise concerns over GenM’s Mashpee notes
Australia business conditions strongest since 2008: survey
Study on new Indonesian capital revives old debate
Party may be over for this housing market that boomed for decade
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