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The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 20th December 2016

Singapore Economy

Singapore bond market faces $22b refinancing bill
Singapore dollar bonds worth $22 billion are callable or due to mature next year, exposing issuers and investors to refinancing risks as borrowing costs rise in the US.  The US Federal Reserve last Wednesday raised policy rates by 25 basis points (bp) and surprised markets with guidance for three, instead of the expected two, rate hikes next year. US Treasury yields immediately jumped 10bp-11bp across the curve, pulling Singapore dollar swap offer rates higher on Thursday, according to International Financial Review (IFR) data.

Feasibility of private bourse being explored
Singapore could benefit from having a secondary, private exchange to allow investors to buy shares of non-listed companies.  This idea – a relatively new one here – is under scrutiny from financial industry players.  The aim is to give more small and medium-sized enterprises (SMEs) a venue to raise capital without the constraints of being listed, while investors will have access to a wider selection of companies.

Singapore Real Estate

Wilkie Edge’s commercial space for sale
CapitaLand Commercial Trust is putting retail and office space at mixed-used development Wilkie Edge in the Selegie area up for sale.  The space will be sold through an expression of interest exercise closing on Jan 19.  Cushman & Wakefield has been appointed as the exclusive marketing agent, the real estate services firm said yesterday.  The space up for sale includes a two-level retail block and six floors of prime-grade quality office space, with a gross floor area of about 215,000 sq ft and net lettable area of about 154,000 sq ft.  Wilkie Edge, with a 99-year leasehold starting in 2006, has a high occupancy rate – close to 100 per cent as at Oct 31. Tenants include local and multinational companies.

Companies’ Brief

Thakral in joint venture with Australia’s Living Gems to launch Gemlife brand of retirement housing
GTH Resorts group of entities, a joint venture between the subsidiaries of Thakral Corporation and Australian retirement homes operator Living Gems Lifestyle Resorts, has launched its Gemlife brand for resort-style retirement housing.  The joint venture will be developing resort-style retirement communities under this brand, Singapore-listed Thakral said on Monday.  Its first two communities GemLife Bribie Island and GemLife Highfields were launched in Queensland late last month and earlier this month respectively.

Cache Logistics Trust to divest Changi warehouse for S$25.5 million
Cache Logistics Trust on Monday said that it has signed a deal with Agility International Logistics for the proposed divestment of Cache Changi Districentre 3 for S$25.5 million.  This price is in line with the independent valuation by CBRE on Nov 30, 2016.  Cache Changi Districentre 3 is located in the Changi International LogisPark (North) and has a remaining land lease of about 17 years.

Global Economy & Global Real Estate

Trump Tower – a world away from 1600 Penn

China home-price growth slows in November as property curbs dent demand

Chinese savers snap up US dollars as yuan falls

Japan real estate manager Kenedix to buy 15% of M’sia’s AmanahRaya REIT

BOJ’s actions on Tuesday could decide yen’s course from here on

Ringgit touches weakest level since 1998 Asia financial crisis

Additional Articles of Interest – Local & Overseas Real Estate

Downtown Line 2 saves time and properties
On Dec 27, it will be a year since the Downtown Line 2 commenced operations. The pick-up in prices of HDB flats located near DTL2 stations underscores the elevated convenience that residents now enjoy.  At these HDB blocks, the average resale price of a four-room flat climbed from $540,089 in 2015 to $563,456 this year, based on data up to early December. For a five-room flat, the average price went up from $615,706 to $633,328. The flats are at 1-19 Toh Yi Drive and 181-185 Jelebu Road, as well as some blocks on Gangsa, Petir and Senja roads.

Local & Overseas Real Estate – Full Article

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