DAILY NEWS

Daily News – 15th Oct 2019

Singapore Real Estate

Singapore’s Q3 property investment sales surge to S$16.7b: report
Real estate investment sales in the third quarter more than doubled to S$16.74 billion from S$6.7 billion in the previous quarter, on the back of a commercial sector surge from big ticket office transactions. This was also 49 per cent higher than the volume of the first and second quarter combined, said a Cushman & Wakefield report on Monday.
https://www.businesstimes.com.sg/real-estate/singapores-q3-property-investment-sales-surge-to-s167b-report
https://www.straitstimes.com/business/property/spore-property-investment-sales-more-than-double-to-167b-in-q3

Two Belmont Rd GCBs being sold
Two freehold bungalows along Belmont Road, the subject of mortgagee sales, are changing hands. The more advanced deal involves the smaller property, which is a stone’s throw from the Holland Village MRT station. Located within the Cornwall Gardens Good Class Bungalow (GCB) area, this property with a long driveway is being sold for S$18.6 million, which works out to S$1,139 per square foot based on the land area of 16,327 sq ft.
https://www.businesstimes.com.sg/real-estate/two-belmont-rd-gcbs-being-sold

Holland Village car park up for sale with S$32m indicative price
A freehold car park at Holland Road Shopping Centre is up for sale via expression of interest (EOI) with an indicative price in the range of S$32 million. The car park, which is located on the basement level of the shopping centre, has a strata floor area of 1,503 square metres and is zoned commercial, marketing agent Edmund Tie said on Monday.
https://www.businesstimes.com.sg/real-estate/holland-village-car-park-up-for-sale-with-s32m-indicative-price
https://www.straitstimes.com/business/property/holland-road-shopping-centre-carpark-on-sale-with-32m-guide-price

Singapore Economy

Growth doubts linger as Singapore thinly skirts technical recession
Singapore’s economy looks to have barely budged in the third quarter, in a Ministry of Trade and Industry (MTI) flash estimate, as the gross domestic product (GDP) inched up by just 0.1 per cent year on year – unchanged from the quarter prior. This was even as the central bank’s half-yearly monetary policy decision, also released on Monday, signalled optimism for some domestic sectors.
https://www.businesstimes.com.sg/government-economy/growth-doubts-linger-as-singapore-thinly-skirts-technical-recession
https://www.straitstimes.com/business/economy/technical-recession-avoided-with-01-growth-in-q3
https://www.channelnewsasia.com/news/singapore/singapore-economy-grows-0-1-in-q3-avoids-technical-recession-11997366
https://www.todayonline.com/singapore/singapore-economy-grows-01-q3-avoids-technical-recession

GDP growth to stay subdued, expansionary fiscal policy likely in next Budget: analysts
Singapore may have skirted a technical recession – defined as two consecutive quarters of contraction – in Q3, according to flash estimates from the Ministry of Trade and Industry (MTI) on Monday morning. Gross domestic product (GDP) looks to have grown by just 0.1 per cent year on year (y-o-y) in July to September, flat on the meagre expansion of 0.1 per cent posted in Q2.
https://www.businesstimes.com.sg/government-economy/gdp-growth-to-stay-subdued-expansionary-fiscal-policy-likely-in-next-budget

Some good news for firms after Singapore avoids technical recession, but sentiment still weak: Analysts
It was a close-run thing, but narrowly avoiding a technical recession has given the local business community something to cheer about amid a global economic slowdown, say economists. However, businesses and as-sociations said they were still reeling from the effects of trade uncertainty and lower consumer demand.
https://www.straitstimes.com/business/economy/some-good-news-for-firms-but-sentiment-still-weak-analysts
https://www.todayonline.com/singapore/spore-set-record-full-year-economic-expansion-2019-growth-prospects-remain-weak-economists

Pundits retain SGD’s end-year forecast of 1.39-1.41 against greenback
Analysts did not budge from end-year forecasts that the Singapore dollar could weaken to between 1.39 and 1.41 against the greenback and ruled out excessive currency swings after the Monetary Authority of Singapore (MAS) joined the easing party of global central banks on Monday amid an uneven macro-economic backdrop. Three key underlying drivers – waning global growth and trade; dim hopes for a US…
https://www.businesstimes.com.sg/government-economy/pundits-retain-sgds-end-year-forecast-of-139-141-against-greenback

Companies’ Brief

Keppel Infrastructure Trust keeps Q3 DPU unchanged at 0.93 cent
Keppel Infrastructure Trust (KIT) on Monday reported a distribution per unit (DPU) of 0.93 Singapore cent for the third quarter of 2019 despite improvements year on year in its distributable cash flow (DCF), revenue and net profits. The trust with businesses in the three sectors of energy; distribution & network; and waste & water reported a 61 per cent year-on-year increase in DCF from S$34.6 million to S$55.7…
https://www.businesstimes.com.sg/companies-markets/keppel-infrastructure-trust-keeps-q3-dpu-unchanged-at-093-cent

Chip Eng Seng 1-for-4 rights issue draws poor interest
Poor interest from minority shareholders has resulted in Chip Eng Seng insiders taking up the bulk of shares in its controversial rights issue. The property and construction group said on Monday that controlling shareholders Celine and Gordon Tang will subscribe for 73.3 million rights shares or 46.85 per cent of all the rights shares being issued, as part of their sub-underwriting agreement.
https://www.businesstimes.com.sg/companies-markets/chip-eng-seng-1-for-4-rights-issue-draws-poor-interest
https://www.straitstimes.com/business/companies-markets/billionaire-tang-couple-widen-control-of-chip-eng-seng-after-rights-issue

Chip Eng Seng to acquire Maldives lagoon for development into resort
Chip Eng Seng has entered into a 70-30 joint venture with partner Tropical Developments to acquire a lagoon in the Maldives, it said on Monday. Chip Eng Seng will make an initial capital contribution of US$7 million to the joint venture, and intends to develop the lagoon into a five-star resort.
https://www.businesstimes.com.sg/companies-markets/chip-eng-seng-to-acquire-maldives-lagoon-for-development-into-resort

Stephen Riady’s son to become deputy CEO of OUE
The son of Indonesian tycoon Stephen Riady will be promoted to deputy chief executive of the family-controlled property and hospitality group OUE from Jan 1 next year. In his new role, Brian Riady, son of Dr Stephen Riady, will assist his father in setting the group’s strategic direction, OUE announced on Monday.
https://www.businesstimes.com.sg/companies-markets/stephen-riadys-son-to-become-deputy-ceo-of-oue

Lian Beng posts 21% rise in Q1 earnings on associates’ profits
Lian Beng Group saw its first-quarter net profit rise 21.3 per cent from the same period a year earlier despite a drop in gross profit, as associates’ losses swung into earnings for the three months ended Aug 31. The main contractor on Monday posted a net profit of S$7.4 million in its fiscal Q1, including a S$1.4 million share of profits of associates.
https://www.businesstimes.com.sg/real-estate/lian-beng-posts-21-rise-in-q1-earnings-on-associates-profits

SLB back in black in Q1 on lower losses from JVs, associates
Catalist-listed property developer SLB Development on Monday posted a net profit of S$1.86 million in the first quarter, reversing from a net loss of S$4.1 million in the same period a year earlier.The bottom line was lifted by a lower share of losses of joint ventures and associates, which declined to S$0.3 million in the three months to Aug 31, from S$4.1 million in the same period a year earlier, mainly due to marketing…
https://www.businesstimes.com.sg/companies-markets/slb-back-in-black-in-q1-on-lower-losses-from-jvs-associates

CBRE confirms hire of JLL’s Greg Hyland to capital markets team
CBRE on Tuesday confirmed the appointment of Greg Hyland as managing director, capital markets, Asia-Pacific, who will work with existing capital markets teams in the region while based in Singapore. Prior to the move, he was JLL’s head of capital markets for Singapore. During his time at JLL, Mr Hyland advised on over US$10 billion of real estate transactions over the past five years.
https://www.businesstimes.com.sg/real-estate/cbre-confirms-hire-of-jlls-greg-hyland-to-capital-markets-team

Tuan Sing confirms Superluck issuing S$200m 2.8% notes at par under new programme
Mainboard-listed property developer Tuan Sing Holdings on Tuesday announced that its wholly-owned subsidiary, Superluck Properties, will issue S$200 million senior secured notes due 2022 under its newly established multicurrency medium-term note (MTN) programme. The Business Times had reported earlier that Superluck is offering three-year, Singapore-dollar notes bearing a fixed coupon of 2.8 per cent to be…
https://www.businesstimes.com.sg/companies-markets/tuan-sing-confirms-superluck-issuing-s200m-28-notes-at-par-under-new-programme

Manulife US Reit’s preferential offer 47% oversubscribed; new units to list on Oct 18
Manulife US Reit’s preferential offering to raise US$62.7 million was about 47 per cent oversubscribed, with the new units to list on Oct 18, the pure-play US office Reit said in a bourse filing on Tuesday. There were excess applications for about 46.1 million new units. About 11.9 million new units which were not validly accepted will be allotted to satisfy applications for excess new units, said Manulife US Reit.
https://www.businesstimes.com.sg/companies-markets/manulife-us-reits-preferential-offer-47-oversubscribed-new-units-to-list-on-oct-18

Debao independent auditor issues disclaimer of opinion on FY2018 statements
Debao Property Development said on Monday that its independent auditor has issued a disclaimer of opinion on the group’s financial statements for the 2018 financial year. The independent auditor, Nexia TS Public Accounting Corporation, gave a number of reasons why it had difficulties auditing Debao.
https://www.businesstimes.com.sg/companies-markets/debao-independent-auditor-issues-disclaimer-of-opinion-on-fy2018-statements

Cominar Reit exploring options for Montreal’s Central Station
Cominar Reit has hired bankers to explore options – including a possible sale – for Montreal’s main railway hub as it strives to boost valuations, according to sources. The Quebec City-based Reit hired advisers including Bank of Montreal to examine a potential sale of Central Station, according to the sources. Given the complexity of the mixed-used site, Cominar is exploring other options such as densification.
https://www.businesstimes.com.sg/real-estate/cominar-reit-exploring-options-for-montreals-central-station

Auditors issue disclaimers of opinion on Pacific Star, Capital World FY19 results
The auditors of both Capital World and Pacific Star Development have flagged uncertainties in their ability to continue as going concerns in relation to their financial statements for the year ended June 30, 2019. Both companies, which are Catalist-listed property firms with developments in Johor, Malaysia, were audited by Ernst & Young.
https://www.businesstimes.com.sg/companies-markets/auditors-issue-disclaimers-of-opinion-on-pacific-star-capital-world-fy19-results

Views, Reviews, Forum & Others

Technical recession or not, underlying factors matter more
Singapore’s narrow escape from recession in the third quarter may be good news for consumer sentiment, but it is arguably more productive to focus on specific aspects of the economy, rather than the narrow binary of whether a technical recession is upon us – which, at any rate, could be overturned by updated figures. Flash figures on Monday put third quarter year-on-year growth virtually flat at 0.1 per…
https://www.businesstimes.com.sg/government-economy/technical-recession-or-not-underlying-factors-matter-more

Recession avoided, but Singapore economy not out of the woods yet
The Singapore economy has dodged a technical recession, but that is only a technicality. As the flash estimates for growth in the third quarter of this year show, the economy is still flatlining and nowhere near out of the woods. The year-on-year growth of 0.1 per cent – the same as in the second quarter – was below what most economists expected. The consensus was for 0.2 per cent. Ditto for quarter-on quarter growth…
https://www.straitstimes.com/business/economy/recession-avoided-but-economy-not-out-of-the-woods-yet

Easing of Singdollar policy reflects uncertain global climate
The Monetary Authority of Singapore’s (MAS) widely expected move to ease the Singdollar policy came to pass yesterday, and the central bank has left the window open for another such shift if global growth continues to weaken next year. It was a careful step that reflects the uncertain climate, as doubts are being cast on a partial trade deal between the United States and China, while the prospect of a messy Brexit…
https://www.straitstimes.com/business/economy/easing-of-singdollar-policy-reflects-uncertain-global-climate
https://www.todayonline.com/singapore/explainer-what-does-it-mean-singdollar-appreciation-rate-reduced

Fast-growing Oyo echoes hype before The We Company’s fall
Oyo Hotels & Homes might be the fastest-growing big company in the world. Ritesh Agarwal’s Indian startup is moving at dizzying speed, frantically racing to become the world’s top hotel-room provider and more. Oyo’s rise to a US$10 billion valuation and dealings with Japanese investor SoftBank and its Vision Fund also echo some of the hype before the fall of Adam Neumann’s shared office space empire The We Company.
https://www.businesstimes.com.sg/real-estate/fast-growing-oyo-echoes-hype-before-the-we-companys-fall