The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 14th September 2017

Top Story

Some builders not keen to be first movers in PPVC
It does not always pay to be the first mover. That’s how some contractors feel about the government’s push for more productive methods in the construction industry.  But Singapore building firms have little choice. As it stands, almost half the government land sale sites mandate the use of prefabricated prefinished volumetric construction (PPVC) – a building method where large modules complete with finishes are manufactured in factories and assembled on-site.

Singapore Economy

CEO pay at Singapore-listed firms not aligned with performance: study
The link between what Singapore chief executives are paid and the profitability of their company is tenuous, a study has found. It has emerged that some CEOs still receive bonuses when their companies are in the red, or are paid fatter bonuses even when the company’s profits have shrunk.

Singapore Real Estate

Private home rentals slip 0.4% in Aug: SRX
Private residential rents in Singapore fell 0.4 per cent in August after rising 0.2 per cent in July, while rental volume fell 10.4 per cent.  The general trend of private home rentals has been a gentle downward slope; year-to-date, the price index is down 0.4 per cent from the start of this year, executive director of ZACD Group Nicholas Mak noted.

Nanak Mansions in Meyer Road on the market with S$200m tag
The fourth freehold residential site in the Meyer-Amber roads vicinity has come on the market this year.  Unlike the earlier three offerings, this one has been quietly released for sale by its owners, who are seeking around S$200 million. The 109,629 square foot plot on Meyer Road was once part of a small golf course.  Currently on the site is Nanak Mansions, a low-rise development completed in the 1980s comprising 36 maisonettes, each with either four or five bedrooms. Their strata areas range from 2,551 sq ft to 3,584 sq ft.

Companies’ Brief

KBS, Keppel Capital to jointly list Reit holding US offices
Singapore is set to see its second US real estate investment trust (Reit), adding to an already vibrant community of listed Reits and business trusts on the local bourse.  American real estate investment firm KBS Realty Advisors LLC is planning to list 11 of its office assets worth US$820 million as a Reit in Singapore via an initial public offering, BT understands.  It is tying up with Keppel Capital, the asset-management arm of Keppel Corp, to be joint sponsors for the Reit, which is expected to be listed later this year.

Croesus unitholders okay purchase by Blackstone
Blackstone’s acquisition of Croesus Retail Trust (CRT) has been approved by unitholders, with the units expected to be delisted on Oct 24.  On Wednesday, CRT, a Japanese retail mall owner, announced in a Singapore Exchange filing that the trust deed amendment was approved with 98.72 per cent of units represented by votes (either in person or by proxy).  The acquisition, by way of a trust scheme, is valued at S$1.17 in cash per unit.

Keppel DC Reit buys second Dublin asset
Data centre owner Keppel DC Reit said on Wednesday that it has bought its 13th data centre and its second in Dublin, Ireland, for 66 million euros (S$101.3 million).  The price includes a 999-year long leasehold interest. Pro forma net profit of the centre in 2016 is three million euros.  The purchase will be funded entirely by debt. After the deal, Keppel DC Reit’s leverage as of end-June is expected to rise from 27.7 per cent to 32.4 per cent.

Mapletree Logistics Trust launches equity fund raising to raise S$640m
Mapletree Logistics Trust (MLT) on Wednesday proposed an equity fund raising comprising an offering of new units to raise gross proceeds of S$640 million.  This will be carried out through a private placement at an issue price of between S$1.143 and S$1.175 per new unit to raise gross proceeds of approximately S$353.5 million to S$361.5 million, as well as a non-renounceable preferential offering on the basis of one new unit for every 10 existing units in MLT to eligible unitholders at an issue price of between S$1.113 and S$1.145 per new unit on a pro rata basis to raise the balance.

Views, Reviews & Forum

Green innovator sets his sights high
Mr Zac Toh has been scaling new heights with his green roofs, which are covered with growing plants.  Yesterday, the 25-year-old was crowned Singapore’s Young Green Innovator of the Year for pioneering green roofs at his family’s firm.  When appropriately designed, rooftop greenery has many benefits, including better air quality, lower temperatures and increased energy efficiency.

Global Economy & Global Real Estate

Houston’s unsinkable housing market undaunted by storm

WeWork sues China co-working rival as legal fight escalates

London house prices record biggest fall since 2008: Rics

China relaxes capital controls as pressure eases on yuan

Trump’s India boom: Towers go up fast as projects slow elsewhere

Philippines approves 386.3b pesos for subway, other infrastructure projects

Canada home price growth cools in Aug as Toronto declines

Ibiza struggles to house locals as mass tourism takes toll

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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