The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 19th July 2017

Top Story

Farms, graves to make way for Tengah Air Base
Tengah Air Base will be expanded to accommodate the relocation of Paya Lebar Air Base, a process which will require the acquisition of several private land plots, the exhumation of over 80,000 graves and road re-alignment works.  The expansion of the military airbase will see the relocation of some assets and facilities from Paya Lebar Air Base, the Ministry of National Development, National Environment Agency and Singapore Land Authority (SLA) said in a joint release on Tuesday. In addition, Changi Air Base will be expanded to accommodate some assets and facilities.

Singapore Economy

Fintech adoption in Singapore still lags global rate, says EY
Singapore’s fintech adoption rate continues to be below the global average of 33 per cent, despite the increase from 15 per cent in 2015 to 23 per cent in 2017, according to the latest Ernst & Young (EY) FinTech Adoption Index.  This comes as Singapore draws more fintech companies and services, such as Lufax’s first overseas online wealth management platform, as announced on Monday.

Visitors from China top spenders in Singapore for second year running
Tourist destinations worldwide are seeing a boom in Chinese tourists, and Singapore is no exception.  Data from the Singapore Tourism Board (STB) shows that visitors from China spent an estimated $3.52 billion here last year, a 39 per cent or nearly $1 billion increase from 2015.  This was the second year in a row that China has emerged as Singapore’s top-spending market, beating out Indonesia, which has traditionally been the top spender. There were 2.86 million Chinese visitors last year, up 36 per cent from 2015.

Singapore Real Estate

S’pore firm’s technology converts clay to sand
Singapore company Logistic Holdings Limited have developed a mobile technology that will offer an environmentally-friendly alternative to marine clay disposal.  With the new technology, marine clay that was once dumped as waste can now be converted into usable sand for land reclamation.  This will cross out the need for companies to use resources for the clay waste disposal and the purchase of new sand to be used in construction.

Dalvey Road freehold condo put up for collective sale at $96m
Home owners at Villa D’Este condominium in Dalvey Road are the latest to leap into the resurgent collective sale market.  Owners of the condo in the prime District 10 area have put it on the market for $96 million.  Marketing agent CBRE told The Straits Times yesterday that the asking price works out to about $1,730 psf on the land area of 55,480 sq ft. There is no development charge.

Companies’ Brief

Peter Lim to inject healthcare assets into Rowsley
Real estate and investment firm Rowsley said on Tuesday night that controlling shareholder, Singapore billionaire Peter Lim, will be injecting his 100 per cent stake in Thomson Medical Pte Ltd and 70.36 per cent stake in Bursa Malaysia-listed TMC Life Sciences (TMCLS) into the firm.  The proposed acquisitions are valued at up to S$1.9 billion, and will be financed through up to 25.3 billion consideration shares issued by Rowsley to Mr Lim at S$0.075 a share.

CapitaLand Commercial Trust’s Q2 DPU up 3.2%
CapitaLand Commercial Trust (CCT) on Wednesday reported an estimated distribution per unit (DPU) of 2.27 Singapore cents for the second quarter, which is 3.2 per cent above the Q2 2016 DPU of 2.20 Singapore cents, underpinned by the strong performance of CapitaGreen. For the three months ended June 30, 2017, the trust’s distributable income grew 6.7 per cent to S$69.5 million in Q2 2017. Year on year, Q2 2017 gross revenue increased by 29.5 per cent to S$87.5 million and net property income increased by 34.3 per cent to S$69.1 million.

Keppel Reit ‘able to find replacement tenants at higher rentals’
While a flood of new office space is coming on stream this year, Keppel Reit is so bullish about the market that it could even raise rents.  Mr Tan Swie Yiow, chief executive of the trust’s manager, told a half-year briefing yesterday that tenants pre-terminating their leases was not a threat, but “an opportunity”.  “Due to the quality of our portfolio, we are able to find replacement tenants at generally higher rentals,” he added.

HLH to sell D’Kranji Farm Resort after receiving offer
HLH Group has agreed to dispose of the D’Kranji Farm Resort.  In a regulatory filing on Tuesday, HLH said its subsidiary had on Monday received an offer of S$12 million and a one per cent cheque from a high net worth individual, Mohamad Eskanda Bin Mohamed Sookor, to purchase the D’Kranji Farm Resort at 10 Neo Tiew Lane 2.

Workspace firm JustCo merging with China’s naked Hub
Homegrown co-working space operator JustCo is merging with China’s naked Hub in a move that is expected to result in the largest co-working operator in Asia.  From their estimated combined footprints of 140,000 square metres in gross floor area across 41 locations in nine cities in six countries by end-2017, the merged entity plans to have 194 locations across the region by 2020.

Lower contribution from Bugis Junction Towers dents Keppel Reit’s Q2 DPU
Lower revenue and net property income from Bugis Junction Towers dented results for office owner Keppel Reit in its second quarter.  For the three months ended June 30, 2017, distribution per unit (DPU) slid to 1.42 Singapore cents, from 1.61 Singapore cents in the previous year, the group said in a Singapore Exchange filing on Tuesday evening.  This brought the total DPU for the first half of 2017 to 2.87 Singapore cents, less than the 3.29 Singapore cents paid out a year ago.

Afro-Asia Shipping, Shimizu to rebuild Robinson Rd office block
Afro-Asia Shipping (AAS) and Shimizu Corporation Investment and Development Division on Tuesday announced their joint venture (JV) to redevelop Afro-Asia Building, an office block at 63 Robinson Road in Singapore’s Central Business District.  The approximately 60-year-old building will be redeveloped into a new Grade-A office building.

GLP to build Adidas’ largest distribution centre in Asia
Global Logistic Properties (GLP), the target of a $16 billion takeover by a Chinese consortium, has signed an agreement with Adidas to develop the sports company’s largest distribution centre in Asia.  Adidas is doubling its space at the same park in Suzhou, eastern China, to meet strong demand from growing domestic consumption, GLP said in a pre-market exchange filing yesterday.

Views, Reviews & Forum

GLP deal a sign of the liquid, tech-obsessed times
The year 2017 had begun with one of the biggest potential deals of all time, a surprise US$143 billion bid for consumer goods giant Unilever by private equity-backed food conglomerate Kraft Heinz.  The deal was quickly scuttled after a flat-out rejection by Unilever, yet it was a harbinger of bullish markets and a world awash with too much money.  Many more such signs are already out there.

HDB buyers are home owners, not tenants
We thank Mr Larry Leong for his feedback (Are HDB residents tenants or owners?; June 24).  Purchasers of HDB flats are owners of their property.  Flat owners enjoy rights to exclusive possession of the flat during the tenure of the flat lease.

Global Economy & Global Real Estate

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Property firm British Land plans £300m buyback

China’s property market slows, Beijing prices down for first time since 2015

China eases bond issuance curbs for property firms

Why China’s stock market is misunderstood

Sunac shares plunge as contagion from Wanda scrutiny spreads

Chill descends on Toronto housing as prices drop fastest since 1988

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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