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 November 2017

Top Story

Investors drawn again to real estate rebound
Singapore’s property market has improved drastically in its investment prospect rankings, going from near the bottom of the table in 2017 to third place in 2018.  This follows a huge resurgence in investor sentiment this year, particularly in the office and residential sectors – two markets that are said to have bottomed out, although a survey of 600 real estate professionals reveals some sceptics who think the “bottoming” may be premature.

Singapore Economy

Singapore eyes faster, cheaper forex trading ecosystem
Trading in Singapore’s US$517-billion-a-day foreign exchange (FX) market is about to get even faster, cheaper and a whole lot more efficient.  The Monetary Authority of Singapore (MAS) is looking into developing an ecosystem of pricing and matching engines here, which entails improving the execution in the institutional FX market for Singapore-based buy-side players, and allowing sell-side banks to price more competitively.

Impact of GST hike on prices will depend on size, timing
The impending hike in Goods and Services Tax (GST) is likely to push up the cost of living here but the impact will depend on the size and timing of the increase, economists say.  Besides measures to help lower-income households cope, the authorities will also have to keep an eye out for profiteering behaviour – companies taking the opportunity to raise prices unreasonably.

MAS seeks power to make competing banks open e-payment rails
The Monetary Authority of Singapore (MAS) proposed on Tuesday that the central bank be given powers to ensure interoperability for payment systems.  This would mean that MAS can force big banks here to open up their payment rails to competitors and third-party players to ensure that large payment systems are compatible with other payment systems.

Singapore Real Estate

S’pore an exception in Asia-Pac with cooling measures that have more bite
Singapore has been the only market in the Asia-Pacific in which government efforts to contain price increases have actually been successful.  Governments in China, Hong Kong and Australia have been trying for years to slow the steady rise of residential property prices, mostly by imposing punitive sales taxes and higher mortgage downpayments.

Singapore real estate jumps from near bottom to third place in investment prospects: ULI, PwC survey
Singapore property has gone from near the bottom in investment prospects within the Asia-Pacific region to third place, according to this year’s Emerging Trends in Real Estate Asia Pacific 2018 report, a real estate forecast published by the Urban Land Institute (ULI) and PwC.  This comes on the back of a resurgence in investor sentiment towards the republic in 2017, which appears to have found a bottom in both its office and residential sectors.

Russian magnate wants out of deal for $10.5m apartment at Capitol Singapore
Bought for $10.5 million, the 314 sq m apartment at the Eden Residences Capitol Singapore, opposite St Andrew’s Cathedral, is one of the priciest units in the Singapore property scene.  But Russian magnate Sergey Vbornov, 59, the former chief of Russia’s largest diamond producer, wants out from the 2013 deal for the unit.  Mr Vbornov, who holds dual citizenship of Russia and St Kitts-Nevis in the Caribbean, is suing vendor Capitol Residential Development in the High Court for the return of monies paid to date amounting to some $8.89 million in sale price, stamp duties costing $1.88 million and $6,857 in conveyancing fees.

Companies’ Brief

Roadblock in Keppel’s sale of China marina stake
Keppel Corporation’s planned 2.9 billion yuan (S$592 million) disposal of its stake in a China marina project is being blocked by the minority shareholder of the project.  The group announced on Tuesday that Keppel Land China (KCL) and Keppel China Marina Holdings (KCMH) have been served with a writ of summons filed by Sunsea Yacht Club (Hong Kong) Company in the Singapore High Court – with Sunsea seeking to stop KCL from selling KCMH.

Keppel Land to divest West Bali site, citing focus on Greater Jakarta market
Keppel Land is axing its stake in an Indonesian associate that is set to sell off a West Bali site.  This move is meant to help sharpen the company’s focus on the Jakarta market.  It expects to record a net divestment gain of about S$17.6 million by the end of 2017, parent group Keppel Corporation said in a Singapore Exchange announcement on Tuesday evening.

UOL makes mandatory offer for SingLand as stake in UIC crosses 50%
UOL Group Limited has announced a mandatory unconditional cash offer for all the shares in Singapore Land (SingLand) that it does not already own, at S$11.85 apiece in cash.  The obligation for UOL to make a mandatory offer for the privatised Singapore Land, of which United Industrial Corporation (UIC) now owns 99.683 per cent, was triggered under Singapore’s takeover code after UOL’s stake in UIC crossed 50 per cent.

AA Reit launches private placement to raise at least S$50m in gross proceeds
AIMS AMP Capital Industrial Reit (AA Reit) has launched a private placement exercise to raise gross proceeds of at least S$50 million.  The placement will see AA Reit issue between 37.175 million and 38.314 million new units at an issue price of between S$1.305 and S$1.345 per per unit, its real estate investment trust (Reit) manager AIMS AMP Capital Industrial Reit Management said on Tuesday night.

Viva Industrial Trust to be included in MSCI Singapore Small Cap Index
Viva Industrial Trust (VIT) will be included in the MSCI Singapore Small Cap Index as of the close of Nov 30, its real estate investment trust (Reit) manager and property manager said on Tuesday.  The MSCI Singapore Small Cap Index is designed to measure the performance of the small-cap segment of the Singapore market.

Sembcorp Industries unit ups stake in Vietnam-Singapore industrial park developer
Sembcorp Industries has raised its stake in the Singapore consortium holding a controlling stake in the developer of Vietnam-Singapore Industrial Park projects.  The group, through its wholly owned subsidiary Sembcorp Development, has entered into a sale and purchase agreement to buy an additional 3.7 per cent equity interest in Vietnam Singapore Industrial Park Pte Ltd (VSIPPL) for US$6.9 million. This brings its total stake in VSIPPL to 96.6 per cent.

Dual listing of Centurion Corp in HK to be on or around Dec 12
Centurion Corporation said that it expects the listing of its shares on the Hong Kong stock exchange to take place on or around Dec 12.  This follows a hearing on Nov 16 convened by the committee of the Stock Exchange of Hong Kong (SEHK) to consider the group’s application for dual listing in Hong Kong.

Far East Orchard names Joanna Gok as chief financial controller
Far East Orchard, a member of Far East Organization, has appointed Joanna Gok as its chief financial controller.  The mainboard-listed property developer said in a Singapore Exchange filing that Ms Gok’s appointment will be effective from Jan 2, 2018.

Asian Micro plans to acquire 4 Penang properties for RM1.6m
Asian Micro Holdings will issue about S$117,808 of shares for the right to buy four commercial units at Gurney Tower in Penang, Malaysia, for RM1.6 million (S$0.5 million).  The counterparty, one Chew Choon Beng, has options to purchase three units at Gurney Tower and also rights to a fourth unit in the same building. In total, the consideration for the four units is RM1.6 million.

Views, Reviews & Forum

FCL could do with bigger free float
Frasers Centrepoint Limited’s (FCL) recent full-year results announcement provided some insights into the group’s growth and transformation into a defensive real estate and hospitality group with an increased share of its assets and earnings from recurring-income businesses.  This will help to buffer the group from the ups and downs of property development cycles in the various markets where it operates and provide more stable earnings.

Global Economy & Global Real Estate

Janet Yellen to depart US Fed in February

US existing home sales increase more than expected

Harvard ‘in talks for Bain to manage its real estate assets’

Growth burst in S-E Asia bolsters region as Fed hikes loom

China’s Wanda Hotel reviews property landmarks, but no talks to sell

Frankfurt residents divided over post-Brexit boom

Bull market’s big supporters ask what may tip it to the bears

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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