DAILY NEWS

Daily News – 22nd December 2017

Singapore Economy

Dealmaking in Singapore reaches highest level since 2014: Reuters
Dealmaking in Singapore has increased by 4 per cent in 2017 year-to-date, the highest since 2014, with real estate taking the lead in deal values as Nesta Investment Holdings Ltd’s proposed acquisition of Global Logistic Properties (GLP) gave the sector a boost. This is according to Thomson Reuters’ Singapore M&A (mergers and acquisitions) preliminary review for 2017, which examined deals from Jan 1 to Dec 15 this year.
http://www.businesstimes.com.sg/companies-markets/dealmaking-in-singapore-reaches-highest-level-since-2014-reuters

Another robust year expected for Singapore bond market
The Singapore bond market should remain buoyant in 2018 amid increasing economic activity and continuing momentum from a rousing 2017 that was the local debt market’s best bar one since 2005. Fixed income bankers point to overall improving economic prospects regionally and globally which will lead to more spending and funding needs.
http://www.businesstimes.com.sg/banking-finance/another-robust-year-expected-for-singapore-bond-market

Big boon for S’pore businesses with operations in US
The cut in the United States’ headline corporate tax rate is a big boon to Singapore companies operating there, but its impact on inbound investment flows remains to be seen, analysts say. A decision by the US Senate to approve a tax bill that cuts the corporate tax rate from 35 per cent to 21 per cent will make a big difference to Singapore companies with investments there, especially as Singapore does not have a tax treaty with the US, noted Withers KhattarWong partner Eric Roose.
http://www.businesstimes.com.sg/government-economy/big-boon-for-spore-businesses-with-operations-in-u
http://www.straitstimes.com/world/united-states/businesses-cheer-us-corporate-tax-cuts?login=true
http://www.straitstimes.com/business/economy/us-tax-cuts-boost-for-singapore-companies-operating-in-us

Easing fears over economy lift Singapore consumer confidence in Q3: Nielsen survey
Easing fears over the state of Singapore’s economy and the expansion in the manufacturing and service sectors have lifted local consumer confidence to 94 points, up five points from last quarter’s 89 in Nielsen’s latest global consumer confidence survey on perceptions of job prospects, personal finances and immediate spending intentions. But this doesn’t mean Singaporeans have become worry-free. Job security is still among their top concerns in the third quarter of 2017, according to the survey.
http://www.businesstimes.com.sg/government-economy/easing-fears-over-economy-lift-singapore-consumer-confidence-in-q3-nielsen-survey
http://www.straitstimes.com/business/economy/nielsen-survey-consumer-confidence-improves-in-q3

Singapore firms fare better than global peers in sustainability reporting
Sustainability reporting among Singapore-listed companies has begun, but more needs to be done in terms of recognising climate change as a financial risk, says a KPMG survey on corporate responsibility (CR) reporting. According to the report, 84 per cent of the largest companies in Singapore are now undertaking CR reporting, faring better than the global average of 72 per cent. This comes as the Singapore Exchange (SGX) implemented a mandate last year for listed firms to include sustainability reporting on a “comply or explain” basis for the financial year ending on, or after Dec 31, 2017.
http://www.businesstimes.com.sg/companies-markets/singapore-firms-fare-better-than-global-peers-in-sustainability-reporting

Singapore Real Estate

Kovan Lodge, Ampas Apartments up for en bloc sales
Huttons Asia on Thursday announced the launch of the tenders for two collective sales: Kovan Lodge, which has an asking price of S$43 million, and Ampas Apartments in the Balestier area, with an asking price of S$105 million. Both properties are freehold. Kovan Lodge has a site area of 27,091 sq ft. Under the Urban Redevelopment Authority’s Master Plan 2014, the site is zoned for residential use with 1.4 plot ratio. Currently on site is a four-storey development comprising 16 apartments with a total strata area of 30,440 sq ft.
http://www.businesstimes.com.sg/real-estate/kovan-lodge-ampas-apartments-up-for-en-bloc-sales

Companies’ Brief

Moody’s places Lippo Retail Trust’s rating for downgrade
Moody’s Investors Service has placed the “Baa3” rating of Lippo Malls Indonesia Retail Trust (LMIRT) on review for downgrade, citing the deteriorating credit quality of key entities within the Lippo group, which contribute around one-third of the trust’s revenue. If a downgrade does occur, the rating could drop to “Ba1” or below, which is junk bond territory. The credit rating agency has up to 90 days to finalise the rating.
http://www.businesstimes.com.sg/companies-markets/moodys-places-lippo-retail-trusts-rating-for-downgrade
http://www.straitstimes.com/business/companies-markets/moodys-reviewing-lippo-retail-trusts-rating-for-possible-downgrade

Controlling unitholder of FSL Trust to divest all shares in its sponsor
The controlling unitholder of FSL Trust is looking to divest all its shares in FSL Holdings, which is the sponsor of the shipping trust. The trustee-manager of FSL Trust said after Thursday’s trading close that Godan GMBH is in discussion with short-listed strategic investors for a potential sale of all of its shares in FSL Holdings.
http://www.businesstimes.com.sg/companies-markets/controlling-unitholder-of-fsl-trust-to-divest-all-shares-in-its-sponsor

Sabana Reit appoints COO as acting CEO
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust’s (Sabana Reit) manager has appointed its chief operating officer (COO) Aw Wei Been to be its acting CEO from Jan 1, 2018, while it continues its search for a new chief executive. Its current CEO Kevin Xayaraj – who has been with the manager Sabana Real Estate Investment Management since 2010 – tendered his resignation in May, after a unitholders’ revolt over the Reit’s proposed acquisition of a Changi South property.
http://www.businesstimes.com.sg/companies-markets/sabana-reit-appoints-coo-as-acting-ceo-0

Logistics firm Logos buys Tuas property
Logistics real estate company Logos on Thursday announced that it has acquired an industrial property in Tuas, which it intends to redevelop into a modern food processing and logistics facility for an estimated development cost of S$79 million. The food processing and logistics facility will have five floors, with ancillary office space, offering a total net lettable area of about 27,000 square metres.
http://www.businesstimes.com.sg/real-estate/logistics-firm-logos-buys-tuas-property
http://www.straitstimes.com/business/companies-markets/logistics-firm-logos-buys-tuas-industrial-property

Mapletree Industrial Trust seals joint acquisition of 14 US data centres
Mapletree Industrial Trust (MIT) has completed its US$753.8 million (S$1 billion) joint acquisition of 14 data centres in the United States, the real estate investment trust said yesterday. The acquisition, with MIT’s sponsor – privately held Mapletree Investments – was done through an unlisted single purpose trust, Mapletree Redwood Data Centre Trust. The total investment comprises a purchase consideration of US$750 million, as well as estimated stamp duty and other expenses of about US$3.8 million. In all, MIT’s investment in the joint venture comes up to about US$304.7 million.
http://www.straitstimes.com/business/companies-markets/mapletree-industrial-trust-seals-joint-acquisition-of-14-us-data-centres

Pavillon to issue 3-year, 5% convertible bonds to pay for Johor Bahru properties
Mainboard-listed Pavillon Holdings on Friday said it will pay the remaining RM29.9 million (S$9.86 million) for its Johor Bahru property acquisition by issuing three-year convertible bonds at 5 per cent interest per annum, payable every six months, with a conversion price of RM0.3025 per share. They will be issued to Low Eng Heng, also known as Low Yong Heng, who is a majority shareholder of Hock Der Realty Sdn Bhd and Ascent Asia Sdn Bhd.
http://www.businesstimes.com.sg/companies-markets/pavillon-to-issue-3-year-5-convertible-bonds-to-pay-for-johor-bahru-properties
http://www.straitstimes.com/business/companies-markets/pavillon-to-issue-3-year-5-convertible-bonds-to-pay-for-johor-bahru

CDL sends out offer documents for M&C Hotels buyout; first close date is Jan 23, 2018
City Developments (CDL) on Thursday made a final cash offer of 620 pence (S$11.20) a share for the shares in London-listed Millennium & Copthorne Hotels (M&C) that it does not already own. The first closing date of the offer for M&C shareholders is Jan 23, 2018. CDL owns 65.2 per cent of M&C, and will need approval from 50 per cent of M&C’s remaining shareholders in order to close the deal.
http://www.businesstimes.com.sg/companies-markets/cdl-sends-out-offer-documents-for-mc-hotels-buyout-first-close-date-is-jan-23-2018

Views, Reviews & Forum

Is Keppel Corp still an offshore and marine stock?
For decades now, Keppel Corporation has been widely recognised as a household name in the offshore and marine industry and the world’s No1 rigbuilder. But that longstanding perception appears to be changing quite quickly as the fortunes of the group’s two key businesses waxed and waned. At one end of the scale, the ongoing downturn in the oil and gas market has hit the group’s offshore and marine business, Keppel Offshore & Marine (Keppel O&M), which has been grappling with cancellations and deferments amid a drought for new rig orders.
http://www.businesstimes.com.sg/companies-markets/is-keppel-corp-still-an-offshore-and-marine-stock

Keeping supply of homes steady
Next year, the Housing Board will launch about 17,000 Build-To-Order (BTO) flats in a move to keep a steady supply of new homes. It is doing so for the third year in a row, following 17,584 units this year and 17,891 last year. The steady supply will, among other things, meet existing demand as well as help to stabilise the HDB resale market, National Development Minister Lawrence Wong has said.
http://www.straitstimes.com/singapore/housing/keeping-supply-of-homes-steady?login=true