The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 26th January 2018

Top Story

Industrial prices and rentals headed for a bottoming-out
With the falls in industrial prices and rentals showing signs of moderation, JTC expects both indices and occupancy rates to “stabilise” in the coming years, as new supply starts to taper.  Industrial rents dipped just 0.1 per cent in the fourth quarter of last year, compared to a decline of 1.1 per cent in the third quarter. For the full year of 2017, rentals fell 2.8 per cent, compared to a full-year decline of 6.8 per cent in 2016.

More projects hopping on collective sale train
There appears to be no lack of new projects looking to jump onto the collective-sale train, even as more public tenders have closed without concluding a sale.  Goodluck Garden, a condominium along Toh Tuck Road, has launched a collective-sale tender with a reserve price of S$550 million.

Singapore Economy

‘Enough time’ to adjust to any impending tax hike
Companies and citizens will be given “enough time” to adjust to any impending tax hike, Senior Minister of State for Law and Finance Indranee Rajah stressed yesterday, without giving further details.  She was speaking to reporters after a visit to AWWA Health and Senior Care at Ang Mo Kio, one of the social service agency’s centres.

Singapore Real Estate

Goodluck Garden launched for collective sale with reserve price of S$550m
Goodluck Garden, a condominium along Toh Tuck Road, has been launched for collective sale with a reserve price of S$550 million.  The freehold residential site spanning 33,457.2 square metres comprises eight blocks of 208 residential units and two commercial shops.

Ang Mo Kio condo Far Horizon Gardens elects collective sale committee
Far Horizon Gardens (FHG), a condominium located at Ang Mo Kio Avenue 9 in District 20, has elected an 11-member collective sale committee.  The 99-year leasehold development has 272 units in total. The size of the estate is about 430,000 square feet, with a gross plot ratio of 1.4.

Soilbuild wins tender for Tuas South Link site with S$2.6m bid
JTC Corporation on Thursday (Jan 25) awarded the tender for an industrial site in Tuas South Link 3 (Plot 16) to Soilbuild Construction at a tendered price of S$2.634 million.  The tender for the site was launched on Sept 26, 2017, and closed on Nov 21, with one bid submitted.  Separately, JTC said that the tender for an industrial site in Jalan Lam Huat (Plot B) will not be awarded.

Companies’ Brief

Frasers Logistics & Industrial Trust posts lower Q1 DPU of A$0.017
Mainboard-listed Frasers Logistics & Industrial Trust (FLT) posted on Thursday a 2.3 per cent decrease in distribution per unit (DPU) for the first-quarter.  For the three months ended Dec 31, 2017, DPU was 1.70 Australian cents, down from 1.74 Australian cents in Q1 2017.  The DPU in Q1 2018 was calculated based on 78.1 per cent of management fees to be taken in the form of units, and after taking into consideration the forward foreign currency exchange contracts entered into to hedge the currency risk for distributions to unitholders at A$1:S$1.0583.

Ascendas Reit Q3 DPU edges down 0.6%
Ascendas Real Estate Investment Trust (Reit) posted a 0.6 per cent year-on-year dip in distribution per unit (DPU) to 3.97 Singapore cents for the third-quarter of FY2017/2018 due to a one-off property tax refund in the previous year and an increase in the number of units in issue.  Gross revenue rose 4.1 per cent to S$217.28 million for the period under review, while net property income (NPI) was up 1.7 per cent to S$157.63 million.

CCT eyes office market recovery in 2018/19
Office landlord CapitaLand Commercial Trust (CCT) said it is looking to ride the office market recovery, but remains mindful of potential negative rental reversions this year.  Its existing portfolio has lease expiries representing 8 per cent of monthly gross rental income this year and another 31 per cent next year.

MGCCT’s Q3 DPU up 5.1%
Mapletree Greater China Commercial Trust (MGCCT) has posted a third quarter distribution per unit (DPU) of 1.868 Singapore cents, up 5.1 per cent from the same period a year earlier.  Gross revenue in the three months ended Dec 31 was S$88.5 million, up 0.7 per cent from the same period a year earlier.

Oxley unit prices its S$150 million 5.7% 2022 notes
A unit of Singapore-listed developer Oxley Holdings has priced its S$150 million 5.70 per cent notes, which mature on Jan 31, 2022 under a US$1 billion guaranteed euro medium term note programme. Under the programme, its subsidiary Oxley MTN may “issue medium term notes unconditionally and irrevocably guaranteed by the company”.

MBS Q4 Ebitda jumps 25% despite lower VIP turnover
Bitter sweet may well describe Marina Bay Sands’ fourth-quarter showing with Ebitda (earnings before interest, taxes, depreciation and amortisation) rolling in at US$456 million, up 25 per cent from a year ago to cap 2017 with a record Ebitda of US$1.76 billion.  “I’m very excited about Singapore reaching the highest quarter that we’ve had of the year since we opened it in 2010,” said Las Vegas Sands Corp (MBS’s parent company) chairman and chief executive Sheldon Adelson at an analyst call on Thursday.

Sabana Reit posts 5.7% drop in Q4 DPU, as it picks old hand as CEO, cuts directors’ fees
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) has appointed real estate veteran Donald Han as the new chief executive officer of its manager, following a strategic review called for by disgruntled shareholders.  As a result of the strategic review, the board has also decided to take a 20 per cent cut to director fees for fiscal 2017 to reduce costs of the manager in support of its partial fee waiver to unitholders.

Viva Industrial Trust Q4 DPS grows 5.5% with positive rental reversions
Viva Industrial Trust’s distribution per stapled security (DPS) rose 5.5 per cent to 1.857 Singapore cents for the fourth quarter as net property income grew 14.3 per cent to S$20.7 million.  Gross revenue for the three months ended Dec 31, 2017 increased by 10.8 per cent to S$28.3 million, supported by positive rental reversions achieved at UE BizHub East and Viva Business Park, as well as by contributions from 6 Chin Bee Avenue, the company said on Friday.

CDL Hospitality Trusts Q4 DPS down 5.7% on rights issue; net property income up 7.8%
CDL Hospitality Trusts on Friday announced a drop in distribution per stapled security (DPS) of 5.7 per cent for the fourth quarter.  For the three months ended Dec 31, 2017, DPS declined to 2.83 Singapore cents from three Singapore cents in the year-ago period.

First Sponsor takes 24.7% stake in 50.4m euro acquisition of Hilton Rotterdam hotel
First Sponsor group is taking a 24.7 per cent stake in a consortium that is buying the Hilton Rotterdam hotel in the Netherlands for a total estimated consideration of 50.4 million euros (S$81.5 million).  The purchase price is the aggregate of the property’s commercial value of 51.0 million euros and the estimated amount of cash and working capital that the target will have at completion, said First Sponsor, a developer of property in China and the Netherlands. The final consideration will be subject to closing adjustments.

Parkway Life Reit DPU in Q4 up 10.6% on divestment gain
Parkway Life Real Estate Investment Trust (Parkway Life Reit) on Friday posted a 10.6 per cent increase in distribution per unit (DPU) for the fourth quarter, lifted by a one-off divestment gain.  DPU for the three months ended Dec 31, 2017, stood at 3.38 Singapore cents, up from 3.06 Singapore cents a year ago.

Ascott Reit Q4 DPU unchanged at 2.04 cents
Ascott Residence Trust (Ascott Reit) saw a 30 per cent increase in distribution to unitholders to S$43.9 million for its fourth quarter on new acquisitions and a one-off distribution of S$6.5 million to unitholders from the divestment of two Chinese properties.  In all, unitholders’ distribution for fiscal 2017 hit a record S$152.2 million.

Surbana Jurong to design offshore supply base in Myanmar for Singapore-Myanmar JV firm
Surbana Jurong said on Thursday it has signed an agreement with MOSB Ltd to design an offshore supply base in Mon State, Myanmar.  Under this agreement, Surbana Jurong will provide, among other things, engineering and marine consultancy as well as project management.

Views, Reviews & Forum

Making Punggol an enterprise district
The masterplan for the 50ha Punggol Digital District, a centre for digital and cyber-security industries generating up to 28,000 digital economy jobs, is nothing if not ambitious. But that is how it should be. Hardware alone cannot create a mini Silicon Valley here, of course, as many factors come into play. But such investment signals commitment.

Global Economy & Global Real Estate

US$ slide to 3-year low against S$ pushing exporters to hedge

US December home sales fall as record-low supply lifts prices

Ronaldo-brand hotel chain goes to Morocco in global expansion

Construction startup raises US$865m from SoftBank fund

Housing starts in UK hit 10-year high in 2017

Xi seeks to tame China’s wild property market with rental push

China plans to boost oversight of private equity funds

China steps up battle for AI supremacy

Malaysia’s central bank raises key rate for first time in 3½ years

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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