DAILY NEWS

Daily News – 1 Nov 2019

Singapore Real Estate

1 HDB flat for 2 condos? Such sales tack plays down risks
“Sell one property, buy two” has been the sales pitch of numerous property agents in these challenging times. The proposition – sell your HDB flat and use the proceeds for down payments on two condos – has had some home owners and investors hooked, but market watchers are cautioning against it, calling for prudence as it carries some serious risks.
https://www.businesstimes.com.sg/real-estate/1-hdb-flat-for-2-condos-such-sales-tack-plays-down-risks

Singapore Economy

Uptick in sentiment for factories: govt survey
Singapore businesses are mixed on their prospects for the six months to next March, according to quarterly government polls out on Thursday. But the manufacturing downturn may have bottomed out, as sentiment, while still negative, improved on the three months prior. Services outlook slipped but stayed positive.
https://www.businesstimes.com.sg/government-economy/uptick-in-sentiment-for-factories-govt-survey
https://www.straitstimes.com/business/economy/spore-firms-mixed-on-near-term-prospects-poll

Singapore bank lending down 0.06% in September: MAS preliminary data
Bank lending in Singapore slipped by 0.06 per cent in September from a month ago, as a fall in business loans more than offset a rise in consumer loans, preliminary data from the Monetary Authority of Singapore (MAS) showed on Thursday. Loans through the domestic banking unit – which captures lending in all currencies, but reflects mainly Singapore-dollar lending – stood at S$684.5 billion in September…
https://www.businesstimes.com.sg/government-economy/singapore-bank-lending-down-006-in-september-mas-preliminary-data%C2%A0
https://www.straitstimes.com/business/economy/bank-lending-here-dips-006-in-sept

Malaysia okays rail link with Singapore, but proposes tweaks
Malaysia has decided to proceed with a cross-border MRT link project with Singapore, with proposals to amend the project and reduce costs by 36 per cent. With the proposed changes, the 4 km rail project will cost an estimated RM3.16 billion (S$1.03 billion), instead of the original of RM4.93 billion, said Malaysian Prime Minister Mahathir Mohamad on Thursday.
https://www.businesstimes.com.sg/government-economy/malaysia-okays-rail-link-with-singapore-but-proposes-tweaks
https://www.straitstimes.com/politics/malaysia-proposes-changes-to-cross-border-rts-project
https://www.straitstimes.com/politics/kl-says-an-lrt-system-would-help-reduce-costs-of-rail-link
https://www.channelnewsasia.com/news/singapore/malaysia-singapore-rts-link-mahathir-johor-12051132
https://www.channelnewsasia.com/news/singapore/singapore-welcomes-malaysia-proceed-jb-rts-rail-link-12052250

Companies’ Brief

Keppel Land invests US$25m in India-based coworking operator
Keppel Corporation’s property arm Keppel Land on Thursday announced that it has invested US$25 million in India-based coworking operator Smartworks Coworking Space. Smartworks provides flexible spaces for enterprise companies, and counts Amazon Web Services, Bacardi Limited, DHL and Ernst & Young among the more than 400 organisations that use its 23 centres.
https://www.businesstimes.com.sg/real-estate/keppel-land-invests-us25m-in-india-based-coworking-operator

154.6m new Mapletree Logistics Trust units to start trading on Nov 1
About 154.6 million new units in Mapletree Logistics Trust (MLT) will begin trading on the Singapore bourse at 9am on Friday. The new units will be issued at an issue price of S$1.617 apiece, under the real estate investment trust’s (Reit) oversubscribed private placement to be used to fund its proposed acquisitions of seven logistics properties in Malaysia, Vietnam and China.
https://www.businesstimes.com.sg/companies-markets/1546m-new-mapletree-logistics-trust-units-to-start-trading-on-nov-1
https://www.straitstimes.com/business/companies-markets/1546m-new-mapletree-logistics-trust-units-to-start-trading-on-nov-1

Lui Tuck Yew resigns from Chip Eng Seng board
Former transport minister Lui Tuck Yew has resigned from the board of Chip Eng Seng, the property and construction group said in a bourse filing on Thursday. Mr Lui, who held the position of independent director, stepped down to pursue other work commitments.
https://www.businesstimes.com.sg/companies-markets/lui-tuck-yew-resigns-from-chip-eng-seng-board

Ascendas Reit raises Q2 DPU by 2.3% after UK acquisitions; calls for trading halt
Ascendas Real Estate Investment Trust’s (Reit) distribution per unit (DPU) rose by 2.3 per cent to 3.978 Singapore cents for its second quarter to Sept 30 from 3.887 cents a year ago, boosted by overseas acquisitions while taking into account an enlarged number of units in issue. The Reit also called for a trading halt on Friday morning, after it had released its financial results.
https://www.businesstimes.com.sg/companies-markets/ascendas-reit-raises-q2-dpu-by-23-after-uk-acquisitions
https://www.straitstimes.com/business/companies-markets/ascendas-reit-raises-q2-dpu-by-23-after-uk-acquisitions

Pollux Properties, PACC Offshore call for trading halts
Pollux Properties and PACC Offshore Services Holdings (POSH) have separately called for trading halts on Thursday, pending the release of announcements. During the morning session, Pollux Properties shares more than doubled to seven Singapore cents as at 11.38am. Prior to the trading halt called at 1.01pm, the counter was trading at 70 per cent or 2.1 cents higher at 5.1 Singapore cents, compared with the previous…
https://www.businesstimes.com.sg/companies-markets/pollux-properties-pacc-offshore-call-for-trading-halts

Ascott Reit divests Vietnam subsidiary for US$10m
The manager of Ascott Residence Trust (Ascott Reit) has divested its entire shareholding interest in wholly owned subsidiary The Ascott (Vietnam) Investments and novated the shareholder’s loans to an unrelated third-party purchaser for US$10 million. In a Singapore Exchange announcement on Thursday evening, Ascott Reit’s manager said the subsidiary owns 70 per cent of the issued share capital of Vietnamese…
https://www.businesstimes.com.sg/companies-markets/ascott-reit-divests-vietnam-subsidiary-for-us10m

ESR Cayman to raise HK$4.4 billion with HK listing
Esr Cayman’s proposed listing on the Stock Exchange of Hong Kong (SEHK) will raise net proceeds of approximately HK$4.4 billion (S$770.4 million) with an offer price of HK$16.80 per share, the logistics real estate developer said on Thursday. It said in its prospectus that it would use the proceeds of the share sale to pare existing debt, finance the completion of projects already in the pipeline, and to further expand its…https://www.businesstimes.com.sg/companies-markets/esr-cayman-to-raise-hk44-billion-with-hk-listing

EHT says no requirement to disclose sponsor’s links to its largest investor
The man who became Eagle Hospitality Trust’s (EHT) single largest shareholder during its lukewarm initial public offering (IPO) was also the man who sold EHT’s sponsor six of the 18 hotels that eventually formed its IPO portfolio, EHT confirmed on Thursday. But as the seller, ASAP Holdings, had sold the six hotels to the sponsor’s founders, who subsequently injected them into EHT soon after…
https://www.businesstimes.com.sg/companies-markets/eht-says-no-requirement-to-disclose-sponsors-links-to-its-largest-investor

Nico Steel extends property lease for 20 years, to invest S$460,000 in machinery, equipment
Nico Steel has extended its property lease at 51 Loyang Way with JTC Corp for an additional 20 years, and has committed to developing the property and investing S$460,000 in additional machinery and equipment. Mainboard-listed Nico Steel started its operations at the property in February 2012, with the current lease expiring on Dec 31, 2022. The lease extension starts on Jan 1, 2023 and will expire on…
https://www.businesstimes.com.sg/companies-markets/nico-steel-extends-property-lease-for-20-years-to-invest-s460000-in-machinery

Views, Reviews, Forum & Others

Fed rate cut and dovish signals a chance to let economy play out
The US Federal Reserve started the year with a u-turn, but now the central bank is screeching to a halt, which could give investors yet another jolt. The Fed cut interest rates for the third time in 2019 in a policy decision announced on Wednesday (Thursday morning, Singapore time).
https://www.businesstimes.com.sg/government-economy/fed-rate-cut-and-dovish-signals-a-chance-to-let-economy-play-out
https://www.straitstimes.com/business/fed-rate-pause-doesnt-shut-door-for-further-cuts-experts

Keeping spirits up – and an eye on the job market – amid the current slowdown
At last, light at the end of the tunnel. After a long season of gloomy economic data, Singapore’s industrial output in September surprised on the upside with 0.1 per cent growth, beating forecasts of continued contraction. August’s reading was also revised upwards. It is far too early to say if manufacturing has bottomed out, not least as global uncertainty persists. Yet such glimmers of hope play a helpful secondary…https://www.businesstimes.com.sg/opinion/keeping-spirits-up-and-an-eye-on-the-job-market-amid-the-current-slowdown

Five shortlisted designs for Founders’ Memorial unveiled for viewing
Singaporeans can now view and pick their favourite design for the Founders’ Memorial, which honours Singapore’s pioneer leaders and is slated to open in 2027. Five designs by local and international architecture firms shortlisted by a jury will be unveiled for public viewing from Nov 4.
https://www.businesstimes.com.sg/real-estate/five-shortlisted-designs-for-founders-memorial-unveiled-for-viewing
https://www.todayonline.com/singapore/five-shortlisted-designs-founders-memorial-open-public-voting