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 July 2017

Top Story

World economy in strongest upswing in a decade, says IMF
The global economy is enjoying the “broadest synchronised upswing” it has experienced in the past decade, thanks largely to buoyant growth in world trade which is expected to continue over the next two years, the International Monetary Fund said Monday.  In the latest update of its World Economic Outlook (WEO) report, the IMF said that global recovery is on a firmer footing now than at the time of the last report in April, with growth revised up for Japan, the euro area, China, and for Asian emerging and developing economies generally.

Singapore Economy

Headline inflation up first time in 2 years for middle, highest income
Headline inflation for the middle- and highest-income households has risen for the first time in two years, but has been in a sustained decline since the first half of 2015 for the lowest 20 per cent of households by income group.  Overall, headline inflation for Singapore households rose by 0.7 per cent year-on-year in H1 2017, reversing the 0.2 per cent decline in H2 2016, based on data released by the Department of Statistics on Monday.

Trade associations, chambers pump up the volume under Lead programme
Trade associations and chambers (TACs) have ramped up productivity and market access projects under the Local Enterprise and Association Development (Lead) programme.  The 28 projects in the past year aim to help small and medium enterprises (SMEs) “build business capabilities and co-create new growth opportunities”.

Singapore Real Estate

Foreign buyer forking out S$430.1m for Citimac in en bloc sale
Citimac, a freehold industrial complex near Tai Seng MRT Station, is being sold for S$430.1 million, or S$1,047 per square foot of potential gross floor area (GFA).  The unit land price is inclusive of an estimated S$82 million development charge.  The collective sale was awarded over the weekend, following a tender for the property that closed on June 21.

Archives building to undergo revamp
Not many people, other than researchers, are aware that a nondescript and dowdy 1959 building in the civic district houses Singapore’s millions of historical records.  Over time, the National Archives of Singapore (NAS) building at 1, Canning Rise – of which the administration block is conserved – has suffered from wear and tear, including water-seepage damage and paint peeling from its walls.

Attractive pricing draws strong interest at property launches
Homebuyers were out in force over the weekend, with three new property launches attracting strong interest. Analysts told TODAY, however, that it is too soon to characterise the surge in demand as a sign of market exuberance, pointing to the specific location of the new project launches and reasonable pricing as main motivating factors.

Companies’ Brief

Frasers Centrepoint Trust’s Q3 DPU flat on Northpoint enhancement works
The ongoing asset enhancement initiative (AEI) at Northpoint continues to weigh on Frasers Centrepoint Trust’s (FCT) financials, with its third quarter 2017 distribution to unitholders remaining flat even as portfolio occupancy held.

Frasers Commercial Trust Q3 DPU dips on larger unit base
Frasers Commercial Trust (FCOT) on Monday posted a drop in its third-quarter distribution per unit (DPU), as a wider unit base offset a mild increase in its distributable income.  The commercial landlord with properties in Singapore and Australia reported a dip in DPU to 2.4 Singapore cents from 2.41 cents in the preceding year.

Stronger performance, acquisitions boost MLT’s Q1
Stronger asset performance and new acquisitions gave a fillip to the results of industrial landlord Mapletree Logistics Trust (MLT) in its first quarter.  Distribution per unit edged up to 1.887 Singapore cents from 1.85 Singapore cents in the year-ago period, the group said in a Singapore Exchange filing on Monday evening.

The Ascott snags 80% stake in US corporate housing player
Marking its first foray into corporate housing and entry into the US West Coast, The Ascott Ltd is paying US$33.7 million for 80 per cent of Synergy Global Housing, which operates a large portfolio of leased properties.  The deal triples Ascott’s portfolio from over 1,000 units to about 3,000 units in the US, and raises its global portfolio to nearly 70,000 units.

Ascendas India Trust’s Q1 DPU dips to 1.31 cents
Higher current income tax expenses and income hedging losses arising from the appreciation of the Indian rupee against the Singapore dollar eroded results for IT park owner Ascendas India Trust (AIT) in its first quarter.  Distribution per unit (DPU) dipped to 1.31 Singapore cents from 1.36 Singapore cent in the previous year, the group said in a Singapore Exchange filing on Monday evening.  That came as Q1 income available for distribution shrank 3.4 per cent to S$13.5 million from the previous year.

Centurion to acquire US student housing
Centurion Corporation Ltd announced on Monday its intention to enter the US market as its wholly-owned subsidiary, Centurion Overseas Investments (III) Pte Ltd, proposed an acquisition of a portfolio of five student accommodation assets across four US states.  In a Singapore Exchange (SGX) filing, Centurion said the portfolio comprised 1,936 beds across the five fully operational student accommodation assets, and has an aggregate purchase consideration of US$136 million.

Parkway Life Reit’s Q2 DPU up 10%
Parkway Life Real Estate Investment Trust on Tuesday reported a 10 per cent year-on-year increase in distribution per unit to 3.32 Singapore cents for the second quarter ended June 30.  The Reit attributed this to the asset recycling exercise completed in February 2017, through which divestment gains of S$5.39 million are being distributed equally over the four quarters of the financial year ending Dec 31.

GLP board picks ANZ as independent financial adviser for offer
The board of Global Logistic Properties (GLP) has appointed Australia and New Zealand Banking Group (ANZ), Singapore branch, as the independent financial adviser to advise its independent directors in making a final recommendation to shareholders over the recent offer for the company.  A scheme document containing the final recommendation will be sent to shareholders in due course.

Lian Beng’s subsidiary to sell property in Australia for A$34m
A subsidiary of the Lian Beng Group is divesting a property in Melbourne for A$34 million (S$36.8 million).  Lian Beng (St Kilda) has entered into a contract of sale with an unrelated third party for the proposed sale of the property at Units 1-19 of 596 St Kilda Road.  Lian Beng (St Kilda) is a wholly-owned subsidiary of Goldprime Realty, an 80 per cent-owned subsidiary of the group.

mm2 Asia fails to get key approval for Golden Village acquisition
mm2 Asia has failed to obtain approval for its acquisition of a 50 per cent share of the Golden Village cinema business in Singapore from the owner of the remaining stake.  The movie and TV production company said it is exploring its options.

Views, Reviews & Forum

Rising from the ashes of the Asian financial crisis
Much has been written on how Asian markets have changed since the Asian financial crisis 20 years ago. While some of this does not paint a positive picture, my experience is that over the past 20 years, financial markets in Asia have changed for the better and are well placed for future growth.

Local interest rates stirring – but will it last?
After about 18 months, local interest rates are beginning to look like they’re about to deliver for the Singapore banks.  Earlier this month, the 3-month Sibor or Singapore interbank offered rate – a benchmark for home loans – finally pushed firmly above one per cent, to a 52-week high of 1.14 per cent on July 13.  It has since eased to 1.11 per cent on July 24.

Global Economy & Global Real Estate

Flash US manufacturing PMI at 4-month high

U.S. home sales stumble as prices hit record high

China’s debt spectre could haunt US Fed meetings

Bordeaux wine estate Chateau Fauchey sold to Chinese investor

China’s soaring sharing economy

Chinese, Japanese firms face off in bid for Bandar Malaysia project

Why China’s acquisition spree is ending badly

WeWork ‘looking for space’ in HK’s Lan Kwai Fong

Mason plans acquisitions for wealth unit

Green projects must also consider habitats lost

Philippines’ biggest money manager sticks with pricey property stocks

Eurozone slowdown could delay easing by ECB

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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