Further upside for developers that can turn hope to reality
Shares of property developers have had a good run over 2017 in anticipation of a property market recovery; investors are now looking to the companies to deliver. Those who can turn anticipation into reality with strong property sales and higher selling prices will even enjoy further re-rating, analysts say. Property counters favoured by analysts are hence those supported by a robust line-up of new launches to ride the market upswing, particularly if their landbank was shored up before the spike in land prices.
ITMs not static but adaptable: Iswaran
The industry transformation maps (ITMs) rolled out by the government are not static plans but need to adjust to changing conditions, Minister for Trade and Industry (Industry) S Iswaran said on Wednesday. “If there’s a need to modify, maybe even change fundamentally some aspects, that’s something we have to do. The environment we’re operating in is such a fast-changing one. It will not do to have static plans,” Mr Iswaran told reporters on the sidelines of the launch of the aerospace sector ITM.
Slower December export growth, currency effect mask strong finish to 2017
At first glance, Singapore’s December export data seems to show that the trade-driven lift fuelling the economy over the past year has started to fizzle out. But dig deeper and a more optimistic picture emerges. While last month’s performance was weaker than expected, it capped a stellar year, with export growth hitting a seven-year high on the back of a global electronics boom.
Developing, drawing unicorns to Singapore a possible growth strategy: SME panel
Unicorns in Singapore may not be so mythical after all, if the government takes on board a recommendation from a committee led by the Singapore Business Federation (SBF). Developing and attracting “unicorns” to Singapore – or startups valued at over US$1 billion – was listed as part of a proposed growth strategy, according to a Budget 2018 wishlist submitted to the government by the SME Committee (SMEC).
Economic priorities for S’pore as Asean chair
The digital economy and trade facilitation are two of five key economic areas that Singapore will focus on during its chairmanship of Asean this year. The others are services integration and ease of investment; energy security; and strengthening ties between Asean and its external partners. Minister for Trade and Industry (Trade) Lim Hng Kiang laid out Singapore’s priorities at the Singapore Business Federation’s (SBF) Asean Networking Night last night.
Singapore Real Estate
Hollandia in District 10 up for en bloc sale
Hollandia, a residential development in District 10, has been put up for sale at an indicative price of over S$163 million. Based on the allowable gross floor area of 10,004.56 square metres (or equivalent gross plot ratio of 2.013), the collective sale has an indicative price of S$163.15 million, which translates to a land rate of S$1,515 psf ppr (per square foot per plot ratio).
CDL will not extend offer for M&C beyond Jan 26; investors must vote by Jan 23
Some uncertainty surrounding the future of London-listed Millennium & Copthorne Hotels (M&C) could clear up next week, with City Developments (CDL) saying on Wednesday that its final offer for M&C will not be extended beyond Jan 26 if it does not garner enough acceptances for the bid to turn unconditional by then.
Capitaland’s game plan to achieve 8% ROE
Two of the biggest drivers for CapitaLand in the future will be its ability to continue its asset recycling programme and asset-light expansion. Both will be key for the property group to achieve its target return on equity (ROE) of 8 per cent.
Rent declines hit ESR Reit’s Q4, full-year DPU
Renewed leases that were locked in at rates lower than their previous contracts led ESR Reit’s fourth-quarter distribution per unit (DPU) to fall 6.7 per cent to 0.929 Singapore cent. For the three months ended Dec 31, 2017, gross revenue fell 2.2 per cent to S$27.2 million, while net property income rose 1.2 per cent to S$19.9 million.
First Reit Q4 DPU rises 0.9% on hospital acquisitions
First Reit has posted fourth-quarter distribution per unit (DPU) of 2.15 Singapore cents, up 0.9 per cent from 2.13 Singapore cents in the same period a year earlier. Distributable income in the three months to Dec 31 rose 1.6 per cent to S$16.8 million.
Soilbuild Reit’s Q4 DPU down 11.9%
Soilbuild Business Space Reit reported an 11.9 per cent drop in distribution per unit (DPU) for the fourth quarter ended Dec 31, 2017 to 1.383 Singapore cents. This came as gross revenue and net property income (NPI) fell by 4.3 per cent to S$20.75 million and 6 per cent to S$17.75 million respectively, mainly due to lower contribution from 72 Loyang Way.
Manulife US Reit names Jennifer Schillaci as CIO
The manager of Manulife US Real Estate Investment Trust (Manulife US REIT), on Wednesday announced the appointment of Jennifer Schillaci as the Reit’s new chief investment officer. Ms Schillaci has more than 14 years of experience within Manulife Financial Corporation where she has held a number of roles including managing director, investment director and senior portfolio manager in Manulife Real Estate.
KOP subsidiaries receive notice from Batam court
Property developer KOP said on Wednesday that certain subsidiaries of the group have received a notice from the court of Batam, Indonesia. The court notice is in relation to a statement of claim filed on Dec 15, 2017 by Dominic Andrla to cancel the lease and unit management agreement for two units of a property owned by the KOP’s subsidiary.
Orange Valley opens sixth home, plans expansion
Fresh from opening its sixth location in Balestier, Orange Valley Nursing Homes is looking into expanding abroad and is also eyeing business areas beyond inpatient treatment. Lyn Edel Yip, the deputy chief executive of Singapore’s largest private nursing home operator, told reporters on Wednesday that the company is thinking of growing its footprint locally and in markets like Japan and China.
Views, Reviews & Forum
Unlocking growth in Asean’s digital economy – the time is now
In just decades, digital advancement has enabled technology to shift from being a business enabler to being THE business. As businesses look into their plans for 2018, many tell us that the goal is to leverage new technologies to transform their business models.
Singapore needs to remain competitive
Since independence, Singapore has stood out in the Asia-Pacific for attracting foreign direct investments (FDI) through its free, open and diversified economy. However, global competition is intensifying.
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