The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 22nd September 2017

Top Story

CCT climbs CBD ladder with S$2.1b purchase of Asia Square Tower 2
CapitaLand Commercial Trust (CCT) is finally making its debut in Singapore’s premium Marina Bay office market with its acquisition of the office and retail space at Asia Square Tower 2 for S$2.094 billion or S$2,689 psf on net lettable area (NLA). The seller is BlackRock Asia Property Fund III.  This is the biggest office investment sales deal in Singapore so far this year, taking the year-to-date tally to S$6.38 billion, according to CBRE Research. The figure for the whole of last year was S$10.08 billion, buoyed by the sale of Asia Square Tower 1 at S$3.38 billion or about S$2,700 psf on NLA to Qatar Investment Authority.

Singapore Economy

Singapore-China ties good but need to keep up with the times: PM Lee
Singapore’s relationship with China is in a good state, and China’s leaders want the two countries to do more together, said Prime Minister Lee Hsien Loong.  At the same time, the relationship is changing as China develops, and Singapore’s role needs to change too for this relationship to stay meaningful, he told reporters on Thursday at the conclusion of his three-day official visit to China.

S’pore’s 20 largest hotel, restaurant, leisure stocks up 20% on average
Singapore’s 20 biggest hotel, restaurant and leisure stocks have averaged a 20 per cent price gain in 2017 year-to-date (YTD), indicating a stronger performance compared to last year.  The average price gain last year was only 2 per cent.  The gain is comparable to their global peers such as McDonald’s Corp, Starbucks Corp, Las Vegas Sands Corp, Sands China and Marriot International, the Singapore Exchange (SGX) said on Thursday.

Changi set for good year with strong passenger numbers
Changi Airport is on track for another strong year, with 5.27 million passengers handled last month – a 7 per cent year-on-year increase.  This brings the total traffic for the first eight months of the year to more than 41 million.  Last year, Changi reported a record number of 58.7 million passengers, making it the sixth busiest airport in the world for international air traffic.

Singapore Real Estate

Spring Grove eyes billion-dollar en bloc deal
Spring Grove condominium along Grange Road is going back on the market, three years after its first collective-sale bid failed, a Straits Times report said. Its owners are hopeful for a bid of at least S$1 billion, after having asked for S$1.39 billion in 2014, a sale committee representative told the newspaper on Thursday.  The price tag works out to about S$1,807 per sq ft (psf), based on a maximum gross floor area of 553,377 sq ft. It could also spell a windfall of an average of S$3 million for each of the 325 households.

Companies’ Brief

ERA Realty marks return to SGX
Ahead of a looming property upcycle, owners of Singapore’s second-largest property agency are seizing this window of opportunity to execute a public listing.  ERA Realty Network has been put up for an initial public offering (IPO) along with other related businesses under APAC Realty, which launched the IPO at 66 Singapore cents per share, the registered IPO prospectus shows.

GIC in another mega buy with US$909m Tokyo deal
Singapore’s sovereign wealth fund GIC has added to its investments in Japan by partnering Invincible Investment Corporation, a public hotel and residential Japan real estate investment trust (J-Reit), to acquire Sheraton Grande Tokyo Bay Hotel for about 100 billion yen (US$909.1 million).  GIC on Thursday said it would own the majority stake of 51 per cent in the hotel for US$463.6 million.

SingHaiyi-led group wins Sun Rosier tender for S$271m
A SingHaiyi-led group has won the Sun Rosier condominium tender for collective sale at S$271 million, or S$1,325 per square foot (psf) per plot, higher than the asking price.  In a filing late Thursday, the company said the bid for Sun Rosier at 5A How Sun Drive was submitted by its subsidiary, SingHaiyi Properties and Huajiang International Corporation.

Yusen Logistics breaks ground for warehouse
Yusen Logistics Singapore broke ground for its first future-ready warehouse on Wednesday as part of a $50 million investment to boost its operations.  The logistics company is building the new three-storey ramp-up warehouse on its existing premises in Tuas, which will be ready by the first quarter of 2019.

Global Economy & Global Real Estate

Fed keeps rates intact, to pare back holdings

China’s smaller cities also showing signs of property risk

S&P cuts China’s credit rating, citing increasing economic, financial risks

Bank of Japan pushes on with stimulus as Fed eyes rate hike

NZ polls result ‘won’t change housing crunch’

Builders doubt NZ election will resolve housing crunch

Advertising ghosts reappear in Sydney as buildings come down

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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