DAILY NEWS

Daily News – 20 Oct 2020 (Tue)

Singapore Real Estate

Gothic-style industrial building launched for sale
The Mill, an industrial building located at 5, Jalan Kilang in Bukit Merah, has been launched for sale via private treaty for S$28 million, exclusive marketing agent The AlvinChooSales Group of ERA Realty Network told The Business Times (BT).
https://www.businesstimes.com.sg/real-estate/gothic-style-industrial-building-launched-for-sale

Market for shophouses wakes up in the third quarter
After a slow first half, the Singapore shophouse market started to stir in the third quarter on the back of pent-up demand following the 21/2-month period when property viewings were not allowed. The value of shophouse transactions had slumped in the second quarter, with the ban on property viewings from April 7 to June 18 during Singapore’s partial lockdown to stem the transmission of Covid-19.
https://www.businesstimes.com.sg/real-estate/market-for-shophouses-wakes-up-in-the-third-quarter

Elite Commercial Reit to buy 58 UK properties for £212.5m from sponsor
Elite Commercial Reit has proposed to buy 58 commercial buildings located across the UK for £212.5 million (S$372.9 million), in its first acquisition since its initial public offering (IPO) this February. These assets are almost entirely leased to the UK government via various agencies, the real estate investment trust’s (Reit) manager announced on Monday.
https://www.businesstimes.com.sg/real-estate/elite-commercial-reit-to-buy-58-uk-properties-for-%C2%A32125m-from-sponsor

Singapore Economy

Electronics outperformed others, will remain major employment source: Chan Chun Sing
The electronics industry – particularly semiconductors – has outperformed other segments of the economy amid the coronavirus-induced recession and will remain a major source of employment, Trade and Industry Minister Chan Chun Sing noted yesterday.
https://www.straitstimes.com/business/economy/chan-electronics-outperformed-others-will-remain-major-employment-source

Agencies ‘firing on all cylinders’ to create jobs; capabilities can be acquired over time
Singapore’s trade ministry and economic agencies are “firing on all cylinders” to create more jobs and keep the local labour market tight, said Trade and Industry Minister Chan Chun Sing on Monday. Speaking at a press conference, he outlined a three-pronged strategy for job creation.
https://www.businesstimes.com.sg/government-economy/agencies-firing-on-all-cylinders-to-create-jobs-capabilities-can-be-acquired-over
https://www.straitstimes.com/business/jobs-on-offer-in-growing-electronics-industry

A ‘great pity’ if more Singaporeans do not take up good jobs in electronics: Minister
The electronics industry has “tremendous growth potential”, said Manpower Minister Josephine Teo as the segment was the only one within the manufacturing sector to see an increase in total employment – 1,000 jobs – in the second quarter of this year.
https://www.businesstimes.com.sg/government-economy/a-great-pity-if-more-singaporeans-do-not-take-up-good-jobs-in-electronics
https://www.straitstimes.com/singapore/jobs/electronics-industry-opened-up-1900-jobs-since-april

Companies’ Brief

Amcorp Global gets green light to resume trading
The Singapore Exchange (SGX) has no objection to the lifting of the trading suspension in shares of Malaysia-based Amcorp Global, formerly known as Tee Land. This will be subject to the mainboard-listed real estate developer complying with its continuing listing obligations under the SGX listing manual.
https://www.businesstimes.com.sg/companies-markets/amcorp-global-gets-green-light-to-resume-trading

IReit Global rights issue raises S$142.8m to fund Spain purchase, repay CDL loan
IReit Global on Monday concluded an oversubscribed rights issue, raising some S$142.8 million to finance the acquisition of properties in Spain and repay a loan from City Developments Limited (CDL). Valid acceptances and excess applications totalling 484.4 million rights units were received, which meant the rights issue was 166.2 per cent subscribed, said the Europe-focused real estate investment trust’s manager in a filing late Monday night.
https://www.businesstimes.com.sg/companies-markets/ireit-global-rights-issue-raises-s1428m-to-fund-spain-purchase-repay-cdl-loan

Cromwell E-Reit unit establishes 1.5b euro medium-term note programme
Cromwell European Real Estate Investment Trust’s (Cromwell E-Reit) subsidiary, Cromwell E-Reit Lux Finco Sàrl, has established a 1.5 billion euro (S$2.4 billion) medium-term note (EMTN) programme and entered into a 135 million euro unsecured revolving credit facility, its manager announced on Tuesday. Net proceeds from the issuance of the notes will be used to grant loans to certain subsidiaries for purposes including acquiring real estate assets, refinancings, as well as working capital management, the manager said.
https://www.businesstimes.com.sg/companies-markets/cromwell-e-reit-unit-establishes-15b-euro-medium-term-note-programme

Keppel Reit’s distributable income from operations in Q3 up 4.6%
Keppel Reit on Monday announced that its distributable income from operations was S$47.6 million for the third quarter, up 4.6 per cent increase year-on-year. This is due mainly to the commencement of income contribution from 311, Spencer Street in Melbourne, which achieved practical completion on July 9, and lower interest expenses.
https://www.businesstimes.com.sg/companies-markets/keppel-reits-distributable-income-from-operations-in-q3-up-46

MLT in S$1.09b logistics properties buying blitz
Mapletree Logistics Trust (MLT) announced on Monday that it is seeking to acquire nine logistics properties in China, Malaysia and Vietnam, and also the remaining 50 per cent interest in 15 properties in China for a total of S$1.09 billion. The aggregate agreed property value of the properties was S$1.04 billion, said MLT.
https://www.businesstimes.com.sg/companies-markets/mlt-in-s109b-logistics-properties-buying-blitz

Sabana Reit’s trustee rejects suggestions that it was remiss in duties
Sabana Reit’s trustee HSBC Institutional Trust Services (Singapore) has stepped in to say that nothing suggests that the Sabana manager has breached or failed to comply with the relevant trust deed provisions with regard to the proposed merger of Sabana Reit and ESR-Reit.
https://www.businesstimes.com.sg/companies-markets/sabana-reits-trustee-rejects-suggestions-that-it-was-remiss-in-duties

Suntec Reit prices S$200m perps at 3.8%
The trustee of Suntec Real Estate Investment Trust (Suntec Reit) has priced S$200 million in subordinated perpetual securities at 3.8 per cent, the Reit manager said on Monday night in a bourse filing. Net proceeds from the issue will be used by the Reit and its subsidiaries for refinancing existing borrowings, financing or refinancing acquisitions and/or investments, financing any asset enhancement works which it has an interest in, as well as general corporate purposes.
https://www.businesstimes.com.sg/companies-markets/suntec-reit-prices-s200m-perps-at-38

Nanofilm’s listing on SGX could draw tech aspirants, spur greater diversity
Real estate investment trusts (Reits) have reigned the Singapore bourse over the years but the potential listing of Nanofilm Technologies could set the stage for initial public offering (IPO) aspirants in the technology space, prompting greater diversity.
https://www.businesstimes.com.sg/companies-markets/nanofilms-listing-on-sgx-could-draw-tech-aspirants-spur-greater-diversity

Views, Reviews, Forum & Others

Managing transfer pricing risks
In recent years, transfer pricing has become increasingly relevant to the fund management industry as it is not uncommon for fund managers to sub-contract part of the value chain to associated enterprises located in other jurisdictions.
https://www.businesstimes.com.sg/opinion/managing-transfer-pricing-risks

Keeping the strong afloat till the storm has passed
The news that Singapore’s government could act to prevent strategically important firms from going under amid the Covid-19 pandemic must have given some reassurance both to some companies – though none were named – and to citizens worried about the fate of icons such as national carrier Singapore Airlines.
https://www.businesstimes.com.sg/opinion/keeping-the-strong-afloat-till-the-storm-has-passed

Almost 60% of mutual fund assets will be ESG by 2025: PwC
ESG investing is the most significant development in money management since the creation of the exchange-traded fund two decades ago and it will reshape finance just as passive funds have. That’s the finding of a new report from PwC that forecasts as much as 57 per cent of mutual fund assets in Europe will be held in funds that consider environmental…
https://www.businesstimes.com.sg/banking-finance/almost-60-of-mutual-fund-assets-will-be-esg-by-2025-pwc

Singapore Budget 2020

Over S$5.5b in Jobs Support Scheme payouts to be disbursed from Oct 29
Over S$5.5 billion in payouts under the Jobs Support Scheme (JSS) will be disbursed to more than 140,000 employers from Oct 29, to subsidise the June to August wages of about 1.9 million local employees. The latest payout brings the total amount of JSS support to more than S$21.5 billion, the Ministry of Finance (MOF) and Inland Revenue Authority of Singapore (Iras) said in a joint statement on Monday.
https://www.businesstimes.com.sg/government-economy/over-s55b-in-jobs-support-scheme-payouts-to-be-disbursed-from-oct-29-0
https://www.straitstimes.com/singapore/politics/over-55b-to-be-paid-out-in-jobs-support-from-oct-29

Experts welcome payouts but worry JSS alone won’t save some firms, jobs
Companies and analysts have welcomed the latest round of Jobs Support Scheme (JSS) payouts to cushion the blow from the coronavirus pandemic. But some are worried, saying the JSS alone will not be able to save some firms and jobs as the Government cannot extend the scheme across all sectors indefinitely.
https://www.straitstimes.com/singapore/politics/experts-welcome-payouts-but-worry-jss-alone-wont-save-some-firms-jobs

Update on COVID-19 (Coronavirus Disease 2019) Situation

All four new Covid-19 cases imported; Jurong Point among places visited by infected patients
Jurong Point and a FairPrice outlet in Aljunied were among places visited by Covid-19 patients while they were still infectious, the Ministry of Health (MOH) said yesterday. MOH provides the list of locations that infectious Covid-19 patients visited for at least 30 minutes and the times they visited them to get people who were at those places at the same time to monitor their health closely for two weeks from the date of their visit.
https://www.straitstimes.com/singapore/health/all-four-new-covid-19-cases-imported-jurong-point-among-places-visited-by-infected

TraceTogether to be compulsory at cinemas
Checking in with the TraceTogether app or token will soon be compulsory for all cinemagoers, with the new measure to be rolled out progressively at cinema halls from next Monday. There will be a grace period until Nov 16 for cinema operators to fully implement TraceTogether, after which it will be the only option for patrons for entry.
https://www.straitstimes.com/tech/tracetogether-to-be-compulsory-at-cinemas

Groups of up to 20 allowed for walking, cycling, kayaking tours
Walking, cycling and kayaking tours will be able to accommodate up to 20 people from Nov 1. The number is double the current limit. But tours will still be subject to prevailing social gathering sizes, which means that 20 people must be split into four groups, with no intermingling allowed, the Singapore Tourism Board (STB) said in an update yesterday.
https://www.straitstimes.com/singapore/groups-of-up-to-20-allowed-for-walking-cycling-kayaking-tours

NCID pauses enrolment of patients in Covid-19 antibody trial
The National Centre for Infectious Diseases (NCID) has tem-porarily stopped enrolling Covid-19 patients for a monoclonal antibody trial after the American pharmaceutical company that developed the drug had to halt the trial last week due to safety concerns.
https://www.straitstimes.com/singapore/health/ncid-pauses-enrolment-of-patients-in-trial
*For more information, please visit the Ministry of Health (MOH) website at www.moh.gov.sg and refer to go.gov.sg/mohupdates for updates on the COVID-19 (Coronavirus Disease 2019) situation