DAILY NEWS

Daily News – 28 January 2016

Singapore Real Estate

Normanton Park collective sale: Interest but no bids
Normanton Park condominium received expressions of interest from two developers but no bids at the close of its collective sale tender last Tuesday. The reserve price is in the region of $840 million, making it one of the largest en-bloc deals launched in recent years.
http://www.straitstimes.com/business/normanton-park-collective-sale-interest-but-no-bids

Shunfu Ville up for en bloc sale again with same reserve price
JLL has relaunched the en bloc sale of Shunfu Ville near Marymount MRT Station after an attempt last year did not result in a sale. However, there is no change in the reserve price by the owners at S$688 million, which works out to S$791 per square foot of potential gross floor area, inclusive of two payments to be made to the state – a differential premium for building a bigger project on the site and a lease-upgrading premium to top up the site’s lease to 99 years.
http://www.businesstimes.com.sg/real-estate/shunfu-ville-up-for-en-bloc-sale-again-with-same-reserve-price
http://www.straitstimes.com/singapore/housing/shunfu-ville-tries-for-collective-sale-again
http://www.channelnewsasia.com/news/business/singapore/shunfu-ville-up-for-en/2463986.html

Companies’ Brief

S’pore Reit managers advised to consider buying back units
The time has come for real estate investment trust (Reit) managers here to seriously consider buying back some of their issued shares given the sector’s depressed valuations, Religare Institutional Research suggested in its recent initiation report on Singapore Reits.
http://www.businesstimes.com.sg/companies-markets/spore-reit-managers-advised-to-consider-buying-back-units

OUE C-Reit beats its Q4 DPU forecast by 20.4%
OUE Commercial Reit (OUE C-Reit) reported a distribution per unit (DPU) of 1.36 Singapore cents for Q4 2015, beating its forecast of 1.13 cents by 20.4 per cent. The forecasted DPU was listed in a July 2015 circular relating to the acquisition of One Raffles Place. In Q4 2014, the DPU was 0.99 cent (restated).
http://www.businesstimes.com.sg/companies-markets/oue-c-reit-beats-its-q4-dpu-forecast-by-204
http://www.straitstimes.com/business/companies-markets/quarterly-dpu-for-oue-commercial-reit-higher-than-expected

MCT to boost F&B offerings at VivoCity
Mapletree Commercial Trust (MCT) is embarking on an asset enhancement initiative (AEI) for VivoCity to strengthen its F&B offerings in a bid to further boost the mall’s appeal. Its Reit manager said this on Wednesday as it maintained its distribution per unit (DPU) for the third quarter ended Dec 31, 2015 (Q3 FY2016) stable at 2.08 Singapore cents. Income available for distribution climbed 1.1 per cent to S$44.25 million.
http://www.businesstimes.com.sg/companies-markets/mct-to-boost-fb-offerings-at-vivocity
http://www.straitstimes.com/business/companies-markets/mapletrees-q3-earnings-lifted-by-higher-revenue

Ascott Residence Trust
Management remains cautious on the near-term prospects of Singapore, given the upcoming new supply. Nevertheless, it remains positive on growth in Tier-1 cities in China, which should help to offset weakness in the Tier-2 cities. Other countries which are expected to perform well include Japan and Vietnam, while Europe is seeing a slow recovery.
http://www.businesstimes.com.sg/companies-markets/brokers-take-216

Keppel: hard to call bottom but troughs approaching
In hindsight, Keppel Corporation’s big bet to take subsidiary Keppel Land private a year ago is proving to be a smart move. Keppel Land’s multi-billion-dollar property portfolio is one of pillar of strength that investors can cling to in a world drowning in cheap oil.
http://www.businesstimes.com.sg/companies-markets/keppel-hard-to-call-bottom-but-troughs-approaching

SLP to more than double agent strength in S’pore
Homegrown property agency SLP International, part of the ZACD Group, is bucking industry outlook with an ambitious goal to more than double its agent strength in Singapore to at least 2,500 through mergers and acquisitions (M&As). It is also looking to have 10,000 agents regionally through organic and inorganic means. http://www.businesstimes.com.sg/real-estate/slp-to-more-than-double-agent-strength-in-spore

Views, Reviews & Forum

Removing ABSD will widen wealth gap
Holland-Bukit Timah GRC MP Christopher de Souza has called for the removal of the Additional Buyer’s Stamp Duty (ABSD) for Singaporeans (“Tackling slowdown with help in job searches, worker levies”; Tuesday).
http://www.straitstimes.com/forum/letters-in-print/removing-absd-will-widenwealth-gap?login=true