The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 25th April 2018

Top Story

Business community welcomes steady hands at finance, trade, manpower ministries
Steady hands at the helm – that’s how business observers described the major Cabinet changes announced on Tuesday.  While two of the three ministries with policies that have a direct impact on businesses will have new ministers in charge, they are no strangers to the local business community.

Reshuffle balances experience and youth, say observers
The Cabinet reshuffle achieves a good balance of having older, experienced ministers still in charge of the heavyweight portfolios, and exposing younger leaders to new areas, said political observers.  They noted that more strategically important and politically sensitive ministries such as Defence, Transport, Home Affairs and Health remain in the hands of older ministers

Singapore Real Estate

Could a Singapore heritage shophouse Reit take off?
The value of shophouse transactions year to date has crossed the S$500 million mark, and is expected to close the year matching if not surpassing last year’s tally of S$1 billion – which was the highest in four years.  The buoyant mood has resulted in rising prices, especially for conservation shophouses in Districts 1 and 2.

Pei Fu building in S$76.25m collective sale
Newly-listed SLB Development announced on Tuesday that subsidiary Oxley Kyanite has exercised the option to acquire freehold Pei Fu Industrial Building for a total of S$76.25 million.  The transaction price, reported earlier by The Business Times, surpasses the reserve price of S$75 million, and works out to S$489 per square foot per plot ratio (psf ppr), based on the proposed gross floor area (GFA) of 155,864 square feet (sq ft). This unit land rate does not include a development charge that may be payable to the State, as the development baseline has yet to be ascertained.

JTC tenders 2 sites in Tuas, releases one site for sale application
JTC has put up for tender two industrial sites in Tuas and released another in the same area for application for sale, it announced on Tuesday.  For tender is one Confirmed List site at Tuas South Link 3 (Plot 26) and a Reserve List parcel at Tuas South Link 1 (Plot 13) under the first half 2018 Industrial Government Land Sale (IGLS) programme.

Companies’ Brief

CapitaLand Commercial Trust Q1 DPU down 11.7%
CapitaLand Commercial Trust (CCT) posted a lower distribution per unit (DPU) of 2.12 Singapore cents for the first quarter from 2.40 Singapore cents the year before.  This was due to an enlarged number of CCT units arising from the issue of new units from a rights issue in October last year, conversion of convertible bonds in fiscal 2017, and the issue of units for management fees.

MCT Q4 DPU up 0.01 cent, full-year DPU at 9.04 cents
Distribution per unit (DPU) for Mapletree Commercial Trust in its fourth quarter ended March 31 crept up to 2.27 Singapore cents from 2.26 Singapore cents. This will be paid on May 31, and books will close May 3.  That came as Q4 income available for distribution crept up 0.4 per cent to S$64.8 million from the preceding year.

ESR-Reit acquires Tampines logistics facility for S$95.8m
ESR-Reit announced that it had on Monday entered into a conditional agreement with vendor Tampines Distrihub to acquire a logistics facility for S$95.8 million.  The purchase price includes a consideration of S$86.2 million and an estimated S$9.6 million land premium payable for the balance lease term.

Cromwell European Reit buying freehold office building in Italy
Cromwell European Real Estate Investment Trust (Reit) is acquiring a freehold office building at Via Jervis 13, Ivrea, Italy, for 16.9 million euros (S$27.3 million).  On Tuesday, Cromwell EReit Management, the manager of Cromwell European Reit, said that Perpetual (Asia), the Reit’s trustee, has entered into a preliminary sale and purchase agreement on Monday with Savills Investment Management SGR PA.

Suntec Reit’s Q1 DPU up 0.3% to 2.4 S cents
Suntec Reit’s Q1 distribution per unit (DPU) rose 0.3 per cent to 2.433 Singapore cents per unit, on the back of higher gross revenue and net property income mainly from its Suntec properties.  Total distributable income for the quarter came in at S$64.8 million, 4.8 per cent or S$3 million higher than the year-ago period. This includes a capital distribution of S$6.5 million or 0.244 cent per unit.

AA Reit Q4 DPU falls 5.4% to 2.63 S cents
AIMS AMP Capital Industrial Reit (AA Reit) on Wednesday (April 25) reported a lower distribution per unit (DPU) of 2.63 Singapore cents for the fourth quarter, from 2.78 Singapore cents a year ago.  This was partly due to an increase in units from a private placement of 42.1 million units in Dec 2017.  DPU in fiscal 2018 was 10.30 Singapore cents, down from 11.05 Singapore cents in FY 2017.

First Sponsor Q1 profit up 20.3% on property financing, holding
First Sponsor Group’s net profit for the first quarter of 2018 rose 20.3 per cent to S$17.1 million from S$14.2 million a year ago, as higher income from property financing and property holding outweighed lower revenue from property sales.  Earnings per share for the quarter came in at 2.90 Singapore cents from 2.41 Singapore cents for the year-ago period.

WeWork to open two Jakarta CBD locations by Q3
Wework will open two central Jakarta locations by the third quarter of this year, continuing the US-based co-working giant’s ambitious expansion through Southeast Asia.  At Sinarmas MSIG Tower, it will take up three floors that will accommodate 800 members while at Revenue Tower, it will be occupying five floors for 1,400 members.

Hwa Hong units complete acquistion, disposal of London properties
A wholly owned subsidiary of Hwa Hong Corporation has on Monday acquired the remaining 30 per cent interest in a freehold commercial property in London.  On Tuesday, the investment holding company said that Vantagepro Investment had bought the remaining interest of 20 Midtown from Eagle House LLC, Langland Estates and other unrelated parties.


Apartments must not be smaller than 70 sq m
With the collective sales fever raging, Singaporeans may have to compromise by living in million-dollar shoebox units, not because of smaller family sizes or for cosiness, but because decent-sized homes are too expensive to afford (En bloc effect: Smaller shoebox units?; April 11).

Close look at China’s high-tech retail scene
A Singapore business delegation is visiting cities in the Yangtze River Delta this week to experience first-hand how Chinese retailers are using technology to transform the industry. The retail mission is led by Senior Minister of State for Trade and Industry Sim Ann.

Global Economy & Global Real Estate

Consumer confidence rises to second-highest level since 2000

US new home sales increase more than expected in March

China concerned trade and debt risks could hit economic growth: economists

UAE to fund US$50.4m project to rebuild Mosul’s Grand al-Nuri Mosque

Additional Articles of Interests – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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