DAILY NEWS

Daily News – 23rd December 2016

Top Story

Prime office rents: No reprieve in sight for 2017
The “flight-to-new projects” – a term used by the office leasing sector to describe the trend of tenants swarming into swanky new office projects – is set to continue next year as companies capitalise on softening rents to upgrade their working spaces. This merry-go-round, however, is causing pain to landlords of older buildings in the Central Business District (CBD). Based on analysts’ projections, overall prime CBD office rents may fall by up to 10 per cent next year. But capital values may still hold up amid keen interest for office assets from private capital and the infrequency in office transactions in the tightly held sector.
http://www.businesstimes.com.sg/real-estate/prime-office-rents-no-reprieve-in-sight-for-2017
http://www.businesstimes.com.sg/real-estate/new-office-leases-make-up-only-10-of-the-total-this-year-cushman

Singapore Real Estate

Real estate investments: Residential or commercial?
The private residential market, which has been soft for some time, is stirring to life again, as new home sales more than doubled in October while resale volumes rose by 15.7 per cent in the third quarter. Meanwhile, in the office market, rents are showing signs of bottoming out. With these developments hinting at emerging investment opportunities in the real estate market, many aspiring investors will ask: “What type of property should I invest in?” There is no one-size-fits-all answer, as different asset classes carry different characteristics and trend differently in different markets, appealing to different investment objectives, capital outlays and risk appetites.
http://www.todayonline.com/business/real-estate-investments-residential-or-commercial

Companies’ Brief

Keppel Land to jointly develop landed homes with Metland in Greater Jakarta
Keppel Land and PT Metropolitan Land Tbk (Metland) will jointly develop landed homes in Greater Jakarta. Keppel Land, through its wholly owned subsidiary PT Sukses Manis Indonesia, has taken a 50 per cent stake in a joint development with PT Metropolitan Permata Development, a subsidiary of Metland, one of Indonesia’s leading property developers. The total consideration of the 50 per cent stake is 250 billion rupiah (S$26.8 million). The joint development will yield about 450 landed homes on a 12-ha site in Tangerang, a satellite city located adjacent to West Jakarta.
http://www.businesstimes.com.sg/companies-markets/keppel-land-to-jointly-develop-landed-homes-with-metland-in-greater-jakarta
http://www.businesstimes.com.sg/companies-markets/keppel-land-in-tie-up-to-build-homes-in-indonesia
http://www.straitstimes.com/business/property/keppel-land-metland-to-build-landed-homes-in-greater-jakarta?login=true

Parkway Life Reit divests 4 nursing homes in Japan for 3.72b yen
Parkway Trust Management, as manager of Parkway Life Real Estate Investment Trust (PLife Reit), on Thursday announced that PLife Reit has divested four nursing homes in Japan for 3.72 billion yen (S$48.9 million). PLife Reit entered into purchase and sale agreements through its special purpose entities incorporated in Japan, with the special purpose vehicles of a global investment firm, Fortress Japan Investment Holdings.
http://www.businesstimes.com.sg/companies-markets/parkway-life-reit-divests-4-nursing-homes-in-japan-for-372b-yen
http://www.businesstimes.com.sg/companies-markets/parkway-life-reit-sells-4-japan-nursing-homes-for-372b-yen

GLP fund receives US$32m injection
Mainboard-listed Global Logistic Properties (GLP) said before market opened on Thursday that a co-investor has pumped US$32 million into a fund established to hold a newly acquired US$1.1 billion logistics portfolio from Dallas-based developer Hillwood. The contribution from the co-investor, made on Dec 21, is deemed as initial syndication, and corresponds to 9.7 per cent of the aggregate capital contributions made to the fund
http://www.businesstimes.com.sg/companies-markets/glp-fund-receives-us32m-injection
http://www.businesstimes.com.sg/companies-markets/glp-takes-in-us32m-for-us11b-us-portfolio