The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 27th April 2017

Top Story

Explosive electronics demand expected to propel Q1 GDP growth
Sustained strong demand for electronics in the region has led to a faster-than-expected expansion in Singapore’s manufacturing output – and potentially its economy.  Some economists, after seeing the strong expansion in industrial production in March, now say that the trade-reliant city-state’s gross domestic product (GDP) in the first quarter is expected to have expanded at a faster rate than thought. Industrial production is closely linked to GDP.

S$1b Singapore fund to help IP-strong businesses go global
A new billion-dollar fund has sprung up in Singapore to give companies with strong intellectual property (IP) a leg up so they can commercialise and compete globally.  The Makara Innovation Fund (MIF), South-east Asia’s first private equity investment fund for this purpose, is the result of a partnership between IP ValueLab, the enterprise-engagement arm of the Intellectual Property Office of Singapore (Ipos), and homegrown private equity firm Makara Capital.


Singapore Economy

New platform for companies and startups to hook up
Local large corporations and SMEs (small and medium enterprises) can now enjoy greater access to innovative technologies developed by Singapore-based tech startups.  The new initiative that will hook them up is the Digital Transformation Exchange (DTE), a series of events to help corporates and SMEs connect with startups for insights into the digital solutions that would be right for them.

NTUC to accredit career coaches with eye on lifting competencies
The labour movement is rolling out a structured system to accredit career coaches in Singapore, and it has set up a new framework to improve and recognise the competencies of this group of people.  The Practicing Employability Coach framework, or PEC as it is called, aims to encourage these coaches to practise, deepen their skills sets and commit to high professional standards.

Singdollar bond market on track for another big year
The multi-year bull party for Singapore bonds shows no sign of slowing as investors look for yield in a market where demand continues to outstrip supply.  The rally is also drawing more foreign issuers, with the largest foreign deal sold last week since 2015.  The Markit SGD corporates total-return index touched a new high of 121.0897 on April 21 with hardly a breather in the past four weeks. It eased a bit on Monday and stood at 121.0841 on Tuesday.


Singapore Real Estate

PGIM unit buys Jurong building for S$194m
US-based PGIM Real Estate, which owns a string of shopping malls in Singapore, is acquiring a cold store logistics facility in Jurong for S$193.8 million.  Located at 1 Buroh Lane, the property is within a government-approved food zone, where food manufacturing and related businesses are permitted.  The site has a 2.5 plot ratio, which is the ratio of maximum gross floor area (GFA) to land area.


Companies’ Brief

Nassim bulk sale helps CapitaLand post 77% jump in Q1 gain to S$386m
CapitaLand Ltd achieved a 77.2 per cent jump in net profit to S$386.8 million for the first quarter ended March 31, aided by divestment gains.  Giving a fillip to the quarterly reults was a S$160.9 million gain from the sale of 45 units at The Nassim, a luxury condominium project near Orchard Road, to one of Singapore’s richest men and veteran banker Wee Cho Yaw in January.

Mapletree’s China commercial trust chalks up 2% higher DPU
Mapletree Greater China Commercial Trust’s (MGCCT) available distribution per unit (DPU) rose to 1.959 Singapore cents for 4Q FY16/17, up 1.9 per cent year on year.  The increase came on the back of the reversal of value added tax payable previously assumed at a higher rate, following the clarification obtained from the local tax authorities, and implementation process at Gateway Plaza in March this year.

Sydney property lifts Suntec Reit’s Q1 results
Thanks to its Sydney commercial tower, Suntec Reit achieved a 3.1 per cent first-quarter rise in distributable income to S$61.85 million amid challenging operating conditions.  This contributed to a 2.3 per cent increase in its distribution per unit (DPU) to 2.425 Singapore cents for the three months ended March 31, 2017.

Strong growth from NZ hotel buoys CDL’s hospitality Reit in Q1
A change in rent structure and strong growth from its New Zealand hotel lifted CDL Hospitality Trusts’ (CDLHT) distribution per stapled security for the first quarter of 2017 to 2.42 Singapore cents, up 9 per cent from a year ago.  For the three months ended March 31, its total distribution to stapled securityholders after retention for working capital rose 10 per cent year-on-year to S$24.1 million.

First Sponsor’s Q1 profit climbs 16.4% on higher revenue
First Sponsor Group reported a net profit of S$14.2 million in its first financial quarter, up 16.4 per cent from a year ago, in a Singapore Exchange filing on Thursday.  This is its 10th consecutive quarter on quarter profit growth since its initial public offering in July 2014, said the mixed property developer, owner of commercial properties in China and the Netherlands, and provider of property financing services in China.

Ascendas India Trust Q4 DPU up 10%
Ascendas India Trust reported a ten per cent year on year increase in fourth quarter distribution per unit (DPU) to 1.54 Singapore cents.  Total property income rose 23 per cent to S$44.2 million thanks to positive rental reversions as well as incremental income from new acquisitions and development. Meanwhile, net property income increased 25 per cent to S$29 million.


Views, Reviews & Forum

EGM aside, revolt has already switched things up at Sabana Reit
The outcome of some shareholders’ or unitholders’ meetings are trickier to predict than others. But not Friday’s stand-out meeting in Singapore’s steadfast real estate investment trust sector where a “wolf pack” of more than 60 genuinely discontent unitholders are hoping to unseat the manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust.

Stop HDB flats from shrinking
The Government has often stressed that HDB flats are affordable (10,000 new homes could be added in Woodlands revamp; April 17).  Buyers of new flats would have noticed that the floor area of flats has been reduced, compared to older flats with the same number of rooms.  The floor-to-ceiling height of the units also appears to have shrunk.

Many factors considered before price of HDB flat is set
We thank Mr Chua Bean Chong for his letter (HDB pricing does not reflect flat lease period; April 18).  In pricing new flats for sale, the HDB takes into consideration several factors, including the prevailing market conditions, the flat’s attributes (for example, its remaining lease, the floor level, size and orientation) and its location.


Global Economy & Global Real Estate

Donald Trump proposes major tax cuts, slashing corporate rate to 15%

Europeans flock back to buy London property

In London, class warfare of a different stripe

UK housing starts indicator hits 10-year high, commercial market improves

China’s largest private bank opens S’pore unit, eyes US$30b AUM in three years

One Belt, One Road a catalyst for Asia’s infrastructural needs: HSBC

China’s $290 Billion New City Lifts Hope for Better Urbanization

Vanke’s home-sale permits scrapped in China’s Xi’an in clampdown

HK set to pip NY as top property market for mainland Chinese

Monaco’s Expensive Mansions Beat Hong Kong Luxury Homes

Malaysian March online recruitment down; retail sector worst hit

Australia’s sky-high household debt a ticking time bomb

Silent pall hangs over North Korea’s ski resort


Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

Scroll to Top