The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 15th September 2017

Top Story

Pine Grove owners expect at least S$1.65b in 3rd en bloc sale bid
Pine Grove could well emerge as Singapore’s largest en bloc deal, going by its indicative reserve price of S$1.65 billion – a level that would trump the record of S$1.34 billion set in 2007 by Farrer Court, another former HUDC estate.  The owners of Pine Grove, a 660-unit estate off Ulu Pandan Road, have appointed Huttons Asia as their marketing agent, and are now hiring lawyers to work on the collective-sale agreement.  An extraordinary general meeting is to take place on Oct 29 to approve the agreement, which will require the consent of at least 80 per cent of the owners for a go-ahead to launch a public tender.

Singapore Economy

More jobs ahead but growth likely to be subdued
With the uptick in the labour market in the first half – and economic growth tipped to hum along at a steady clip of 2.5 per cent for the year – the Ministry of Manpower (MOM) sees labour demand picking up in the second half of 2017.  But some private-sector economists have cautioned that the recovery is likely to be underwhelming.

E-payment firms in race to roll out unifying platform
In his National Day Rally speech on Aug 20, Prime Minister Lee Hsien Loong fired the starting gun for a race in which e-payment firms battle to be the one to unite fragmented platforms and reach all strata of society, including hawkers and heartland shops, where cash is king.  And after decades of hampering users with the hassle of multiple payment cards and apps, the e-payment sector seems to have wised up to this unwelcome reality. Mr Lee’s call has triggered numerous proposals, Parliament heard on Monday.

Bumper quarter of mergers and acquisitions
The appetite for mergers and acquisitions (M&As) has been ravenous among local companies this year, with the value of deals the highest for the year to date since 2014.  Singapore companies racked up M&As worth US$33.1 billion (S$44.7 billion) in the third quarter, up 81.4 per cent on the second, despite a 33.9 per cent drop in the number of announced deals.

Singapore Real Estate

EL Devt’s Lim family buys 2 GCBs for S$46.6m
Some members of the Lim family that controls construction group Evan Lim & Co and property developer EL Development have bought two Good Class Bungalows, one in Chancery Lane and the other in Ewart Park.  Options to buy the freehold bungalows, at S$26.06 million and S$20.5 million respectively, are understood to have been exercised, though no caveats have been lodged by the respective buyers, who probably wish to keep a low profile on the transaction.

BCA doubles co-funding for SMEs to go green
Small and medium enterprises (SMEs) will soon receive a funding boost in their efforts to green their buildings and premises.  From Sept 30, the Building and Construction Authority (BCA) will double the amount that is co-funded with SME building owners and tenants to provide stronger support for them to raise environmental sustainability of buildings.

SRX launches drone viewings for Singapore properties
SRX Property said on Thursday that it has launched X-Drone, a new programme that uses aerial photography and videography by drones to market Singapore properties. An SRX spokesman said it is the only listing platform in the country to offer this drone viewing service.

UBS says it shuns Singapore, HK housing markets on risks of government curbs to tame prices
The threat of government curbs to tame prices makes Singapore and Hong Kong residential property unattractive, the regional head of UBS Group’s real-estate investment arm said.  “We have no exposure in the Singapore residential market and we are very comfortable not having any exposure,” Graham Mackie, head of real estate for Asia Pacific at UBS Asset Management, said in an interview. “Historically it’s been very exposed to government policy intervention and that continues.”

Companies’ Brief

Keppel T&T unit invests US$10m in data centre startup Nautilus Data Technologies
Keppel Telecommunications & Transportation Ltd’s (Keppel T&T) unit invested US$10 million in data centre startup Nautilus Data Technologies Inc’s (Nautilus) Series C preferred stock funding, the company said in a Singapore Exchange filing on Friday.  The investment by Keppel T&T’s wholly owned subsidiary Keppel Data Centres on Thursday represents about 24.1 per cent of the total issued shares of Nautilus.

Keppel Corp confirms news of joint efforts with KBS to list US commercial Reit
Keppel Corporation confirmed that efforts are ongoing to carry out an initial public offering and listing of a US commercial real estate investment trust (Reit) on the Singapore bourse.  This Reit will be jointly sponsored by its asset-management arm, Keppel Capital, and KBS Pacific Advisors Pte Ltd, it said on Thursday in response to an article in The Business Times on the planned listing.

CapitaLand Retail China Trust divests unit which holds CapitaMall Anzhen
The divestment of CapitaLand Retail China Trust’s (CRCT) entire equity interest in CapitaRetail Beijing Anzhen Real Estate Co, Ltd has been completed on Thursday, said the trustee-manager in a Singapore Exchange filling on Friday.  Following the completion of the divestment, CapitaRetail Beijing Anzhen Real Estate, which holds CapitaMall Anzhen, is no longer a wholly owned subsidiary of CRCT.

Mapletree Logistics Trust launches equity fund to raise $640m
Strong institutional demand has led Mapletree Logistics Trust (MLT) to price new units under its private placement exercise at $1.175, the top end of an initial range.  It is raising up to $640 million through a private placement and preferential offering.  The trust manager said yesterday: “The private placement was approximately 3.3 times covered and saw strong participation from new and existing institutional, accredited and other investors.”

Oxley Holdings’ JV increases issued and paid-up capital to S$4m
Oxley Serangoon Pte Ltd, a joint venture company of Oxley Holdings, has increased its issued and paid-up capital from S$100 to S$4 million.  In a Singapore Exchange filing on Thursday, Oxley Holdings said this was by way of the issue of about four million new ordinary shares at S$1 each to Oxley Holdings (about 1.6 million shares), Lian Beng (Serangoon) Pte Ltd (about 800,000 shares), Unique Invesco Pte Ltd (about 800,000 shares) and Apricot Capital Pte Ltd (about 800,000 shares).

Oxley raises UE stake to 14.1% at S$2.72 per share with S$2.60 offer still open
Property developer Oxley Holdings has further raised its stake in United Engineers (UE) to 14.1 per cent after acquiring S$1.4 million of shares on the open market on Tuesday and Wednesday, according to mandatory disclosures to the Singapore Exchange.  The 5.3 million shares, which form about 0.07 per cent of UE’s issued shares, were bought at S$2.72 apiece. Oxley deputy chief executive Low See Ching also directly holds an additional 1.02 per cent stake in UE.

Tuan Sing Holdings unit receives get nod for asset enchancement initiative in Perth
Tuan Sing Holdings’ unit has received planning approval from the City of Perth for asset enhancement at Hyatt Centre and the development of Lot 11, one of two vacant land plots in Perth.  In a filing on Singapore Exchange on Tuesday, the investment holding company said its subsidiary, Grand Hotel Group, has obtained the approval on Aug 22, 2017.

Global Yellow Pages buys third New Zealand property for NZ$38m
Global Yellow Pages (GYP) on Thursday said it has signed a conditional agreement to buy a plot of land in Papakura, New Zealand from Motleon Limited, a company that does land development and subdivision, for NZ$38 million (S$37.3 million).  It said that the acquisition is in line with its strategy to further develop its core property business by increasing its development pipeline and building up its property portfolio, as well as to broaden the group’s revenue stream, and to pursue opportunities with good prospects for income and long-term growth.

Views, Reviews & Forum

Engagement key to green building drive
Globally, buildings account for 40 per cent of energy use and 38 per cent of greenhouse gas emissions in developed countries. In Singapore, the building sector contributes more than one-third of the nation’s electricity consumption, with the tenant and occupant activities within a building taking up as much as 50 per cent of the total electricity consumption of a typical office or retail building.

Is optimism in the Singapore property market justified?
On the morning of July 11, 15 developers converged on the 10th storey of the URA Centre to submit bids for a government land site at Woodleigh Lane.  By 8pm, the results were out: a consortium led by Chip Eng Seng, a mid-sized developer, won with the highest bid of S$701 million. The price jolted the market; it was almost 40 per cent above the price per square foot paid for a nearby site at Raintree Gardens just 10 months ago. But the winner was not alone. Real estate heavyweights – CapitaLand, City Developments and Keppel Land – all submitted bids less than 3 per cent shy of its offer.

Checks in place to ensure fair BTO balloting
We thank Mr Tan Soon Hock for his letter (Clarify issues about BTO balloting and process; Aug 10).  Just as our public housing policies have evolved over the years to cater to different groups of buyers, HDB’s balloting process has also changed to keep pace while ensuring that it remains fair to all applicants.

Tech shifts in property sector
Earlier this month, property agents who are already dwindling in number were dealt another blow when the largest property listings portal here raised its prices.  More than 1,500 agents responded by boycotting PropertyGuru and setting up Agents United to look for alternative portals and lobby their interests. They also said they wanted to form a union over time.

Global Economy & Global Real Estate

US consumper prices spike in August on fuel, housing costs

London home prices at lowest since 2008

China says ‘irrational’ overseas investment curbed

China’s economy losing some steam with investment growth at 18-year low

China home sales grow at slowest pace in almost 3 years on curbs

Lotte Shopping picks Goldman to manage sales of supermarkets in China

Hong Kong Commercial Property Prices Triple Over Past Decade   

Refinancing Looms for HNA’s Hong Kong Projects

Norway’s new home sales down 33% yr/yr in August

Australian retail stalwart Myer reports worst annual profit since listing

Aussie regulator to probe mortgage rate ‘profiteering’ by big banks

Australia jobs surge in August, but unemployment still at 5.6%

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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