Tax pros’ institute recommends more social reliefs in Budget 2017
Tax professionals in Singapore have submitted several recommendations to the government for more help for lower-income Singaporeans and the elderly so as to ensure economic stability. The recommendations, put forth by the Singapore Institute of Accredited Tax Professionals (SIATP) in anticipation of the announcement of Budget 2017 in February, largely focus on tweaks to the Central Provident Fund (CPF) cash top-up scheme, life insurance, reducing tax burden of low-income earners and helping older workers stay in the workforce.
Singapore Real Estate
Business trusts must adopt new Singapore financial reporting starting Jan 1, 2018: MAS
Registered business trusts must prepare financial statements identical to the International Financial Reporting Standards (IFRS) for annual periods starting January 1, 2018, the Monetary Authority of Singapore (MAS) said on Thursday. However, authorised collective investment schemes will continue to prepare financial statements using accounting practices recommended by the Institute of Singapore Chartered Accountants (ISCA). Under the Business Trusts Act (Cap. 31A), business trusts that are constituted in Singapore and whose units are offered to the public must be registered by MAS.
Shanda gaming empire co-founder buys GCB
The Chinese turned Singaporean co-founder of Shanda Group is understood to have picked up a Good Class Bungalow (GCB) along Cable Road for S$23 million. The price works out to S$1,518 per square foot (psf) based on the freehold land area of 15,148 square feet. Chrissy Luo, who bought the bungalow in trust, is the wife of Chen Tianqiao. The couple, who now reside in Singapore, in 1999 founded Shanda Interactive Entertainment Limited, which expanded to a big-time online entertainment developer and publisher in China before it became a privately-owned global investment group a few years ago.
Square Yards slapped with fine, six-month ban
The Council for Estate Agencies has taken Square Yards Singapore Pte Ltd to task for failing to provide a written advisory message to an investor to draw his attention to the risks involved in purchasing foreign properties. Besides slapping a financial penalty of S$7,500 on the two-person agency, CEA has – for the first time concerning foreign properties – imposed a condition to Square Yards’ licence that it is not to market or transact in any foreign property for six months with effect from March 1, 2017.
Savills IM records US$557.2m of transactions in Singapore
Savills Investment Manager recorded US$557.2 million of transactions in Singapore last year, accounting for over 60 per cent of the total transacted amount in the Asia-Pacific. The firm had executed two property transactions in Singapore, including the sale of an office building located at 77 Robinson Road in the Central Business District for approximately US$371.4 million and the disposal of Savills IM’s 60 per cent stake in Chinatown Point shopping centre in the Chinatown district for US$185.9 million. Globally, Savills IM transacted US$5.3 billion in 2016, beating its previous record of US$3.6 billion set in 2015. Individual and portfolio transactions numbered 114 across 18 countries.
Facebook tipped to move to Marina One
Social media giant Facebook has secured a large office space at the upcoming downtown Marina One development. Industry sources who asked not to be named told The Straits Times that the American technology firm is taking up more than 250,000 sq ft at the Marina Bay project. Marina One, an integrated development with residential units and office and retail space, is expected to be completed later this year. The Straits Times understands that Facebook will occupy several levels, including a high-density floor with panoramic sea views and room for up to 2,000 people.
Residents, businesses welcome plans to add buzz to Bayshore
With the Bayshore precinct being a fairly quiet area, some businesses and residents welcome the possibility that it might soon be redeveloped into a vibrant residential zone. In a Request for Proposal (RFP) put up last month, the Urban Redevelopment Authority (URA) has called for master planning and urban design consultancy services for a new precinct, which will house about 12,500 families in a mix of 6,000 public and 6,500 private housing units in the prime area. As part of the proposal, private consultants would have to submit a blueprint for a makeover to create a “vibrant and sustainable garden neighbourhood”.
Oxley’s Q2 profit, revenue surge; interim dividend lower
Property developer Oxley Holdings on Thursday reported a net profit of S$123.75 million for the second quarter ended Dec 31, 2016, up from S$47 million a year ago, in line with higher revenue. Revenue rose from S$177.77 million to S$605.73 million, mainly due to recognition of revenue from Oxley Tower upon its completion in December last year and handover of certain plots in The Royal Wharf (Phase 1A). Revenue was also recognised on sold units in three mixed residential projects in Singapore – Floraville.
Ascott adds six China properties to portfolio
The Ascott Limited, CapitaLand’s wholly owned serviced residence business unit, secured contracts to manage six properties with more than 1,200 units in China. The new properties strengthen Ascott’s presence in Changsha, Shenzhen, Tianjin and Wuhan, while extending its footprint to Handan and Xuzhou. Ascott is also set to boost its fee income by opening an all-time high of more than 30 properties this year, of which 16 will be in China.
CDL buys 24% stake in China co-working space operator Distrii
Singapore-listed property group City Developments Limited (CDL) has signed an agreement to invest 72 million yuan (S$14.8 million) for a 24 per cent stake in Distrii, an operator of co-working spaces in China. Distrii, making its first foray outside China, will be leasing more than 60,000 square feet of space at CDL-owned Republic Plaza Tower 1 in Singapore’s Central Business District. The Singapore space for Distrii is expected to be one of the largest co-working spaces in the Republic. It will integrate food and beverage, entertainment, recreational and office facilities and is expected to open in the first half of 2018 as the space is still currently leased out.
GL Limited reports lower profit for Q2
Property group GL Limited reported a 32 per cent year on year slide in net profit to US$13.6 million for the second quarter ended 31 Dec 2016. Revenue was 24 per cent lower at US$86.7 million while earnings per share fell to 1.1 US cents, down from 1.6 US cents a year ago. For the half year period, net profit dropped 52 per cent to US$24.6 million and revenue decreased 20 per cent to US$184.5 million mainly due to lower revenue generated from the hotel, gaming and property development segments.
Dasin Retail Trust to begin trading Friday afternoon; public offer 7.6 times subscribed
The public offer for Dasin Retail Trust’s initial public offering (IPO) was subscribed by about 7.6 times. It will start trading on the Singapore Exchange at 2pm on Friday. The business trust, which holds three shopping malls in Guangdong province, is the first Mainboard listing on the Singapore Exchange this year. The IPO consisted of an international placement of some 149.77 million units to investors and 2 million units to the public in Singapore. The placement tranche was over-subscribed according to the indications of interest received, it said. Meanwhile, the public offer received 734 valid acceptances for about 15.27 million units at the close of the public offer. At an IPO price of 80 Singapore cents per unit, it raised some S$121 million in gross proceeds.
CapitaLand Mall Trust Q4 DPU remains at 2.88 Singapore cents
CapitaLand Mall Trust (CMT) announced on Friday a fourth-quarter distribution per unit of 2.88 Singapore cents for the three months ended Dec 31, 2016, no change from a year ago. This translated into an annualised yield of 5.82 per cent based on Thursday’s closing. Distributable income for Q4 went up 0.2 per cent to S$102.07 million from the preceding year. Gross revenue slid 6.1 per cent to S$169.35 million year-on-year, while net property income also slid 7.6 per cent to S$116.19 million from a year ago.
Global Economy & Global Real Estate
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