DAILY NEWS

Daily News – 26th May 2017

Top Story

Two more properties sold en bloc; deals total S$676.5m
Another two collective sales have taken place in quick succession within a month of the first sale this year, showing firmer signs of a pick- up in the en bloc market. Rio Casa, a former HUDC estate in Hougang, has been sold for S$575 million by a consortium comprising Oxley Holdings, KSH Holdings, Lian Beng Group and the private investment firm of Super Group’s Teo family. Separately, a unit of BBR Holdings (S) is acquiring mixed-use development Goh & Goh Building for S$101.5 million. These came on the heels of the first residential collective sale of One Tree Hill Gardens near Orchard Road to Lum Chang Holdings for S$65 million this month.
http://www.businesstimes.com.sg/companies-markets/two-more-properties-sold-en-bloc-deals-total-s6765m
http://www.businesstimes.com.sg/companies-markets/oxley-led-consortium-secures-rio-casa-for-s575m-in-en-bloc-deal
http://www.straitstimes.com/business/property/two-collective-sales-worth-6765m-done
http://www.straitstimes.com/business/property/goh-goh-building-next-to-beauty-world-mrt-station-sold-for-s1015-million
http://www.channelnewsasia.com/news/singapore/rio-casa-sold-for-s-575m-in-en-bloc-deal-8883450

Singapore Economy

MTI hints at a higher floor for Singapore’s 2017 growth
Singapore’s economy this year is likely to clock its fastest growth rate in three years as global growth strengthens considerably, according to gross domestic product (GDP) growth data released by the city-state’s Ministry of Trade and Industry (MTI) on Thursday. Economists, on the other hand, are sounding the alarm. They say that first-quarter growth is the fastest that one will see this year, and it will only go downhill from here.
http://www.businesstimes.com.sg/government-economy/mti-hints-at-a-higher-floor-for-singapores-2017-growth
http://www.businesstimes.com.sg/government-economy/manufacturing-growth-surpasses-66-forecast-steady-growth-expected-for-electronics
http://www.straitstimes.com/business/economy/economy-tipped-to-grow-more-than-2-this-year?login=true
http://www.channelnewsasia.com/news/singapore/singapore-economy-seen-improving-but-there-are-still-headwinds-8881828
http://www.todayonline.com/singapore/singapore-economy-grew-27-q1

S’pore Apple store offers creative sparks for tech, retail sectors
Apple’s first retail store in Singapore will offer free, hands-on sessions on topics such as photography, music, coding and design. And when you have picked out your latest tech toys, you will be able to use Apple Pay – and charge an unlimited amount through it. The usual S$100 limit won’t apply in this shop. For these and other reasons (such as free wifi and charging points), observers say the Apple store will give a fillip to the tech, creative and retail sectors.
http://www.businesstimes.com.sg/technology/spore-apple-store-offers-creative-sparks-for-tech-retail-sectors
http://www.straitstimes.com/tech/first-looks-at-the-apple-orchard-road-store?login=true

Singapore Real Estate

Developers, contractors must stop enmity: study
Asset owners and construction companies need to stop being enemies and start working together, a McKinsey & Company study says. The study found that adversarial contracts between developers and construction firms – which are often a result of project tenders that award contracts based solely on construction costs – are partly to blame for stalling productivity growth in the construction sector globally. Mukund Sridhar, a McKinsey partner and one of the authors of the study, shared the findings with an audience of chief executives and ministerial-level officials at the Global Infrastructure Initiative on Thursday.
http://www.businesstimes.com.sg/real-estate/developers-contractors-must-stop-enmity-study

Building trade divided over productivity, measures
A recent study on construction productivity has recommended that companies adopt better practices in project planning and management for productivity improvement. It also said construction companies should measure productivity at trade, project and firm levels to be able to set corporate and project targets, monitor their work and assess performance. This was after 110 of the 3,032 members of the Singapore Contractors Association Limited (SCAL) or approximately two in 50 participated in the electronic survey, giving a response rate of 3.62 per cent.
http://www.businesstimes.com.sg/real-estate/building-trade-divided-over-productivity-measures

Merpati Road holdouts in process of moving out
All three of the Merpati Road households in MacPherson that were late in vacating their land have accepted compensation, although two of them had yet to move out by the deadline on Wednesday. The former owners — whose freehold terrace houses are located at 27, 29 and 33 Merpati Road — had already received the cheques for the full compensation amount, the Singapore Land Authority (SLA) said in response to TODAY’s queries.
http://www.todayonline.com/singapore/merpati-road-holdouts-process-moving-out

Chinese money lifts Singapore housing market sentiment
Chinese developers ploughed over US$5.1 billion (S$7.1 billion) into the Asia-Pacific residential market in the first three months of this year, a report from property consultancy Knight Frank showed yesterday. In Singapore, the wealthy Chinese builders have set records for residential land prices, both in Government Land Sales (GLS) tenders and in the collective sale market, helping to boost sentiment in the housing sector but squeezing the profit margins of local builders.
http://www.todayonline.com/business/chinese-money-lifts-spore-housing-market-sentiment

Companies’ Brief

Property development income helps Stamford Land return to the black in Q4
Stamford Land Corporation Ltd swung back into the black for the fourth quarter ended March 31 with a net profit of S$8.93 million, compared to a net loss of S$5 million a year ago, amid an income surge from property development. Revenue for the quarter more than doubled to S$166 million from S$60.48 million, led by a S$101.35 million increase in revenue contribution from the property development segment.
http://www.businesstimes.com.sg/companies-markets/property-development-income-helps-stamford-land-return-to-the-black-in-q4
http://www.businesstimes.com.sg/companies-markets/stamford-land-back-in-the-black-in-q4-on-higher-property-development-income

Surbana Jurong, Safdie Architects team up on Asia-Pacific projects
Infrastructure consulting firm Surbana Jurong is joining hands with Safdie Architects to design and construct buildings in the Asia-Pacific. Safdie Architects, which is led by world renowned architect Moshe Safdie, has been responsible for the designs of iconic local landmarks such as Marina Bay Sands and Sky Habitat. The agreement was inked on Thursday at the Global Infrastructure Initiative, a meeting of leaders in infrastructure and capital projects.
http://www.businesstimes.com.sg/real-estate/surbana-jurong-safdie-architects-team-up-on-asia-pacific-projects
http://www.straitstimes.com/business/surbana-safdie-architects-tie-up-eyes-big-projects

Views, Reviews & Forum

More clarity needed on how Reit investors can review managers
The Sabana Real Estate Investment Trust (Reit) episode shows that despite the existence of policy and legal infrastructure that allows for the removal and replacement of a Reit manager by minority unitholders, practically speaking, the task is still a steep and uphill one. There is yet no precedent in Singapore’s Reit history to show that it is possible. To recap the episode, more than 60 unitholders had requisitioned an extraordinary general meeting (EGM) in April to oust the manager of the underperforming Reit.
http://www.businesstimes.com.sg/companies-markets/more-clarity-needed-on-how-reit-investors-can-review-managers

Brighter 2017 outlook for economy tempered by caution
Gloomy headlines about the economic outlook have become almost par for the course in recent years, but 2017 finally seems to be bringing brighter prospects. However, these come tempered by caution, with some economists already warning that the trade- and manufacturing-driven lift could moderate later in the year.
http://www.straitstimes.com/business/economy/brighter-2017-outlook-tempered-by-caution