DAILY NEWS

Daily News – 20th May 2016

Singapore Real Estate

CDL to home in on strategic investments in real-estate firms
City Developments Limited (CDL) is eyeing strategic investments in real-estate companies to take advantage of the current price discount in equity markets, under its plan to deploy S$5 billion in overseas expansion over five years. Already, over S$2 billion of that budget has been deployed – mainly in direct-asset acquisitions – in the past two years, still leaving the group with ample headroom until 2018.
http://www.businesstimes.com.sg/companies-markets/cdl-to-home-in-on-strategic-investments-in-real-estate-firms
http://www.straitstimes.com/business/property/cdl-seeks-novel-ways-to-unlock-value

Keppel Land builds up Myanmar presence with expansions
Keppel Land is strengthening its hotel and commercial portfolio in Yangon, Myanmar’s rapidly developing leading city. The Singapore-listed property firm yesterday held a topping-off ceremony for its joint venture project, Junction City Tower, which is being developed jointly with Myanmar-based construction company Shwe Taung Group. Keppel Land holds 40 per cent of the project with a total investment of US$47.4 million ($65.4 million).
http://www.straitstimes.com/business/companies-markets/keppel-land-builds-up-myanmar-presence-with-expansions

QIA said to be in exclusive talks to buy Asia Square Tower 1
A New party is in exclusive negotiations with BlackRock to buy Asia Square Tower 1. This time, sovereign wealth fund Qatar Investment Authority (QIA) is said to be the potential buyer. The price is estimated at around S$2,700 per square foot of net lettable area (NLA). Based on the 43-storey tower’s 1.2 million sq ft of offices and about 40,000 sq ft of retail space, the lumpsum price would be around S$3.35 billion.
http://www.businesstimes.com.sg/real-estate/qia-said-to-be-in-exclusive-talks-to-buy-asia-square-tower-1

Yoma’s non-real estate businesses lift fourth-quarter profit
Fried chicken and hot-air balloons were among the business segments that gave a lift to fiscal fourth-quarter earnings for Yoma Strategic Holdings, a group primarily known as a Myanmar real estate developer. Non-real estate businesses and contributions from its investment in telecommunication towers bolstered its earnings for the three months ended March 31, the group said in a bourse filing on Thursday morning.
http://www.businesstimes.com.sg/companies-markets/yomas-non-real-estate-businesses-lift-fourth-quarter-profit

Shunfu Ville sold for S$638m to Qingjian
Shunfu Ville was sold to developer Qingjian Realty for S$638 million on Thursday, marking the largest collective sale since 2007. This translates to a total land cost of S$747 per square foot per plot ratio on potential gross floor area, after factoring in differential premium payable to the state to top up the lease to a fresh 99-year lease and for intensification of the site, according to JLL, the sole marketing agent for the collective sale.
http://www.businesstimes.com.sg/real-estate/shunfu-ville-sold-for-s638m-to-qingjian
http://www.straitstimes.com/business/property/shunfu-ville-sold-for-below-reserve-price-of-638m-to-qingjian-each-owner-to-pocket

GEM Residences developers give full price list ahead of launch
In what could be the first in recent years, developers of an upcoming private condominium project have released the full price list one week ahead of launch and is making a commitment to stick by that price list. GEM Residences, a 99-year leasehold project in Toa Payoh jointly developed by Gamuda, Evia Real Estate and Maxdin Pte Ltd, will go on sale at an average S$1,426 per square foot (psf), lower than the earlier indicative market pricing of S$1,480 psf.
http://www.businesstimes.com.sg/real-estate/gem-residences-developers-give-full-price-list-ahead-of-launch
http://www.straitstimes.com/business/strong-interest-in-gem-residences-in-toa-payoh

W Hotel keen on downtown Singapore presence
W Hotel Worldwide sees room for a second W hotel in Singapore in the city centre to complement its existing W hotel at Sentosa. “We would love to have a W in downtown Singapore, and we are looking at different sites,” said Anthony Ingham, global brand leader for W Hotel Worldwide, adding that the property could be its flagship W. “(But) we’re very particular about where we will put a W. It’s a case of waiting for the right piece of land, right time and right partner – but it’s definitely an objective.”
http://www.businesstimes.com.sg/real-estate/w-hotel-keen-on-downtown-singapore-presence
http://www.straitstimes.com/business/property/w-hotels-looking-to-open-another-outlet-in-spore

Parkway Parade reopens today after fire
The Parkway Parade mall will reopen to shoppers today for the first time since a fire on Sunday night. No one was injured in the blaze that broke out at Fox Kids and Baby, a clothing store on level two of the seven-storey mall. However, it caused damage to the fire protection system’s cabling which had to be repaired. The mall announced the reopening on its website and Facebook page yesterday.
http://www.straitstimes.com/singapore/parkway-parade-reopens-today-after-fire

Singapore is 4th priciest logistics market: CBRE
Singapore is the fourth most expensive prime logistics market in the world, with rentals of US$10.91 per square foot per year (or S$1.25 psf per month). This is according to CBRE’s inaugural Global Prime Logistics Rents report released on Thursday. This is just the rental for the physical space. The total occupation cost could go up to S$1.50 to S$2 psf if the tenant also wants to use the warehouse’s automation systems.
http://www.businesstimes.com.sg/real-estate/singapore-is-4th-priciest-logistics-market-cbre

If the place is right, buyers will jump in
Following several rounds of cooling measures, private property prices have fallen by 9.1 per cent in the first quarter from their peak in 2013 while transaction volume has more than halved from 2012. Despite this, the first few major project launches in 2016 have fared well in today’s languid market.
http://www.todayonline.com/business/if-place-right-buyers-will-jump

Worry over defaults in First Sponsor’s property financing business may prove unfounded
For more than four years, First Sponsor Group – a mixed property developer and owner of commercial properties in China and the Netherlands – has been operating a property financing business out of Shanghai that yields a mouth-watering 100 per cent gross profit margin.
http://www.businesstimes.com.sg/companies-markets/worry-over-defaults-in-first-sponsors-property-financing-business-may-prove

New rules relax prospectus burden for retail bonds from quality issuers
Singapore authorities have launched their latest effort to boost the retail bond market with long-discussed bond seasoning and exemption frameworks taking effect on Thursday that will allow good-quality issuers to sell debt to mom-and-pop investors without a prospectus. The seasoning framework – which went through public consultations in September and December 2014 – will allow investors to buy wholesale bonds in denominations as small as S$1,000 on the Singapore Exchange (SGX) with only a product highlight sheet.
http://www.businesstimes.com.sg/companies-markets/new-rules-relax-prospectus-burden-for-retail-bonds-from-quality-issuers
http://www.straitstimes.com/business/invest/new-option-to-help-retail-investors-buy-bond-issues
http://www.todayonline.com/business/mas-broadens-corporate-bond-opportunities-retail-investors

Companies’ Brief

GLP’s revenue, earnings jump in Q4
Warehouse provider Global Logistic Properties (GLP) posted a surge in earnings for its fiscal fourth quarter on the back of higher revenue and fair value gains from investment properties. Net profit for the three months ended March 31 jumped 45.7 per cent to US$152.7 million from the preceding year. Revenue for the period expanded 19.4 per cent to US$199.1 million year on year.
http://www.businesstimes.com.sg/companies-markets/glps-revenue-earnings-jump-in-q4

Manulife US Reit
The initial public offering (IPO) for Manulife US Reit has been oversubscribed. Both tranches totalling 396.6 million units drew keen interest. The units were priced at 83 US cents each last week, the upper end of an indicative range. The international placement tranche of 350.8 million units to investors outside of the United States was “well-received”.
http://www.straitstimes.com/business/companies-markets/company-briefs-manulife-us-reit
http://www.todayonline.com/business/steady-demand-manulife-us-reits-s649m-ipo

Views, Reviews & Forum

Take time to contemplate issues on short-term rentals
I applaud the Urban Redevelopment Authority for deciding to take time on the issue of short-term rentals (“URA needs more time to look at short-term rentals”; yesterday). While Singaporeans embrace new business models and technological advancements, we must also be mindful of the social responsibility of keeping peace with all our neighbours in a high-density space, and the need for vigilance for the sake of public security and safety. Short-term rentals are a new business opportunity. But those in favour of it cannot simply rely on all landlords being socially responsible when “sharing” their homes.
http://www.straitstimes.com/forum/letters-in-print/take-time-to-contemplate-issues-on-short-term-rentals