DAILY NEWS

Daily News – 22 Nov 2019

Singapore Real Estate

Liang Court tenants to vacate by March for redevelopment
The Liang Court site, known as an enclave for the local Japanese community, looks set to become an integrated development with two residential towers, a new hotel, and new commercial spaces. Tenants have been told to vacate the mall by March next year.
https://www.straitstimes.com/singapore/liang-court-tenants-to-vacate-by-march-for-redevelopment
https://www.straitstimes.com/singapore/mall-has-seen-better-days-but-some-shops-unsure-of-next-move

Singapore Economy

Worst may be over, with better prospects for Singapore’s economy in 2020
After a difficult year in which the Singapore economy was buffeted by the trade war and a slump in the electronics sector, the worst may be over. Next year is tipped to bring modest growth, though most expect it to be stronger than in 2019.
https://www.straitstimes.com/business/economy/worst-may-be-over-with-better-prospects-for-economy-in-2020
https://www.channelnewsasia.com/news/business/singapore-economy-recession-recovery-manufacturing-gdp-12113718
https://www.todayonline.com/singapore/explainer-what-are-signs-economic-recovery-singapore-and-are-they-enough-turnaround

Companies’ Brief

Mapletree Logistics Trust bags first S$200m sustainability-linked loan
Mapletree Logistics Trust (MLT) has made its first move into sustainable financing with a S$200 million sustainability-linked loan from OCBC Bank to be used for general working capital, the manager said in a statement on Thursday. The six-year committed revolving credit facility is designed with reference to MLT’s rooftop solar installation programme for its logistics properties in Asia-Pacific.
https://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trust-bags-first-s200m-sustainability-linked-loan

Moody’s downgrades MNACT outlook on uncertainty over damaged Hong Kong mall
Credit rating agency Moody’s Investors Service has changed its outlook on Mapletree North Asia Commercial Trust (MNACT) to negative from stable. The downgrade reflects the uncertainty surrounding the earnings and operating performance of MNACT’s largest asset, the Festival Walk mall in Hong Kong, said Jacintha Poh, a Moody’s vice-president and senior credit officer.
https://www.businesstimes.com.sg/companies-markets/moodys-downgrades-mnact-outlook-on-uncertainty-over-damaged-hong-kong-mall
https://www.straitstimes.com/business/companies-markets/damage-to-hong-kongs-festival-walk-mall-prompts-credit-rating-outlook-cut

SPH Reit’s private placement raises S$164.5m
SPH Reit has raised S$164.5 million from a private placement of 156.6 million new units to partially fund its proposed acquisition of a 50 per cent stake in a shopping centre in South Australia. The issue price was fixed at S$1.05 per new unit – which falls in the middle of the indicative range of between S$1.031 and S$1.075 per unit announced by the manager on Thursday.
https://www.businesstimes.com.sg/companies-markets/sph-reits-private-placement-raises-s1645m
https://www.straitstimes.com/business/companies-markets/sph-reit-private-placement-raises-1645m

Cash offer for San Teh closes, company shares suspended pending delisting
An offer by the Kao family and its concert parties for all shares of property firm San Teh at S$0.28 apiece in cash closed on Thursday, after the offeror acquired 95.38 per cent of the company’s shares. The family – whose members include directors, and the chairman and CEO of San Teh – has crossed the 90 per cent shareholding threshold, triggering a compulsory acquisition.
https://www.businesstimes.com.sg/companies-markets/cash-offer-for-san-teh-closes-company-shares-suspended-pending-delisting

Views, Reviews, Forum & Others

Liang Court’s rejuvenation to unlock value, yield synergies
City Developments Limited (CDL) and CapitaLand’s plans to team up with Ascott Residence Trust (Ascott Reit) to turn the Liang Court complex into an integrated development probably didn’t come as a massive surprise to market watchers. The duo’s S$400 million purchase of Liang Court mall in May from an entity linked to PGIM Real Estate already sparked expectations that the commercial and residential-zoned site…
https://www.businesstimes.com.sg/companies-markets/liang-courts-rejuvenation-to-unlock-value-yield-synergies

Forum: Increase minimum occupation period for new BTO projects
It was reported that applications for bigger build-to-order (BTO) flats in Tampines and Ang Mo Kio were heavily oversubscribed (Bigger BTO flats in Ang Mo Kio 13 times oversubscribed; Tampines 11 times, Nov 19, ST Online). How many of these applicants are actually buying a place to live in for the long term and how many are planning to flip the flat once their minimum occupation period (MOP) is up?
https://www.straitstimes.com/forum/letters-in-print/increase-minimum-occupation-period-for-new-bto-projects