DAILY NEWS

Daily News – 24, 25, 26, 27 & 28 Jan 2020

Singapore Real Estate

Home sales achieve soft landing in 2019 with 2.7% price gain
Developers should breathe easier as the private home market seems to have achieved a soft landing in 2019 as prices rose moderately amid higher sales, despite tough cooling measures imposed in 2018. Demand for private homes remained resilient with the price index up 0.5 per cent in Q4 over the prior quarter, and higher than the 0.3 per cent flash estimate released on Jan 2, according to the latest data from the Urban Redevelopment Authority (URA) on Thursday.
https://www.businesstimes.com.sg/real-estate/home-sales-achieve-soft-landing-in-2019-with-27-price-gain
https://www.straitstimes.com/business/property/singapore-private-home-prices-inch-up-27-for-2019

Office rental cycle has peaked; retail rents may have bottomed out
It seems a tale of two cities between Singapore’s office and rental markets, going by the latest data from the Urban Redevelopment Authority (URA). The figures suggest that the office rental cycle has peaked against the backdrop of clouded business sentiments and tenant resistance to further rental hikes. On the other hand, retail rents, which have been in a multi-year decline phase, may finally have bottomed.
https://www.businesstimes.com.sg/real-estate/office-rental-cycle-has-peaked-retail-rents-may-have-bottomed-out
https://www.straitstimes.com/business/property/office-rents-in-central-region-eases-32-in-fourth-quarter

Prices, rents of industrial space stable in 2019; new supply to rise significantly this year: JTC
Prices and rents of industrial space remained relatively stable in 2019 despite the headwinds, while the occupancy dipped 0.1 percentage point. However, 2020 will bring an uptick in new supply, which could affect the performance of certain segments of the industrial property market.
https://www.businesstimes.com.sg/real-estate/prices-rents-of-industrial-space-stable-in-2019-new-supply-to-rise-significantly-this

HDB resale volume and prices inch up in Q4 2019
More Housing and Development Board (HDB) resale flats changed hands in the fourth quarter of last year and their prices inched up, latest public housing figures show. There were 6,339 resale transactions in the fourth quarter, compared with 6,264 cases in the third quarter, HDB said on Thursday.
https://www.businesstimes.com.sg/real-estate/hdb-resale-volume-and-prices-inch-up-in-q4-2019
https://www.straitstimes.com/singapore/prices-of-hdb-resale-flats-up-05-in-q4-with-more-transactions
https://www.todayonline.com/singapore/hdb-resale-transactions-rise-27-2019-prices-remain-flat

Sales galleries get more creative to woo buyers
Developers in Singapore’s private housing market, particularly the high-end segment, have upped the ante on creativity by offering more at sales galleries, from virtual walk-throughs to elegant hotel-style lounges with coffee bars and more smart home features to wow potential buyers. Given the stream of residential projects in the pipeline this year – notably in the luxury segment – this trend of one-upmanship…
https://www.businesstimes.com.sg/real-estate/sales-galleries-get-more-creative-to-woo-buyers

Trouble in paradise with more prime district homes in mortgagee sales
Some find it hard to believe but there may be trouble even in paradise as more posh homes in prime districts – landed and non-landed – are popping up in mortgagee sales amid a weak economy. The number of listings – 630 – under mortgagee sale in 2019 was also the highest since Knight Frank started recording auction data in 2011, said Lee Nai Jia, the firm’s head of research. Total auction listings rose 24 per cent to 1,387 in 2019 because auctions are increasingly gaining acceptability as a mode of sale.
https://www.businesstimes.com.sg/real-estate/trouble-in-paradise-with-more-prime-district-homes-in-mortgagee-sales
https://www.straitstimes.com/singapore/housing/more-prime-district-home-owners-defaulted-on-loans-in-2019

Czech tycoon’s CPI Property sells S$150m perp in market first
The first European non-bank issuer has made its debut in the Singapore dollar (SGD) corporate hybrid bond market. Luxembourg-based real estate player CPI Property Group last week sold S$150 million of perpetual bonds at par with a 5.8 per cent coupon, The Business Times (BT) understands.
https://www.businesstimes.com.sg/banking-finance/czech-tycoons-cpi-property-sells-s150m-perp-in-market-first

New co-working space for arts freelancers
A new co-working space for freelance artists will spring up at 42 Waterloo Street later this year, as the National Arts Council (NAC) ramps up efforts to help freelancers have sustainable careers. Centre 42, the current occupant of the building there, will become a co-tenant after renovations are completed – prompting some members of the community to voice concerns about the centre’s future.
https://www.straitstimes.com/singapore/new-co-working-space-for-arts-freelancers

Singapore Economy

Singapore’s rebound in 2020 depends on global risks not erupting: PM
Prime Minister Lee Hsien Loong said Singapore’s economy could improve in 2020 only if any number of global risks do not materialise, particularly emanating from the US. He said in an interview with Bloomberg’s Editor-in-Chief John Micklethwait that he is “relieved” that Singapore’s economy escaped a recession in 2019.
https://www.businesstimes.com.sg/government-economy/singapores-rebound-in-2020-depends-on-global-risks-not-erupting-pm
https://www.straitstimes.com/business/spores-economic-rebound-depends-on-global-calm-pm-lee

2019 core inflation comes in at 1%; MAS likely to stand pat in April review
Singapore’s central bank will probably leave monetary policy untouched at its next review in April, analysts said on Thursday, as the latest data showed inflation picking up again in the final stretch of 2019. Core inflation, which is used by the Monetary Authority of Singapore (MAS) as a policy guide, scraped in at 1 per cent for the year – easing from 1.7 per cent in 2018, but hewing to an official forecast for “the lower end” of the 1 per cent to 2 per cent range.
https://www.businesstimes.com.sg/government-economy/2019-core-inflation-comes-in-at-1-mas-likely-to-stand-pat-in-april-review
https://www.straitstimes.com/business/economy/inflation-slows-in-2nd-half-of-2019-higher-income-group-most-affected
https://www.straitstimes.com/business/economy/core-inflation-rises-to-07-in-dec-eases-to-1-for-whole-of-2019

Singapore December factory output decline moderates to 0.7%
Singapore’s factory output fell 0.7 per cent year-on-year in December, moderating from November’s revised figure of an 8.9 per cent fall, according to preliminary figures from the Singapore Economic Development Board on Friday. Coming amid expectations of a bottoming-out in manufacturing in 2020, December’s figure was marginally below private-sector economists’ estimates of a 0.6 per cent fall.
https://www.businesstimes.com.sg/government-economy/singapore-december-factory-output-decline-moderates-to-07
https://www.straitstimes.com/business/economy/factory-output-down-14-last-year-worst-showing-since-2016
https://www.channelnewsasia.com/news/business/singapore-manufacturing-output-december-data-edb-12322384

Rising rents, tighter financing put pressure on retailers’ cash flow
Local lifestyle and design retailer Naiise’s reported payment troubles may be a sign of liquidity challenges facing the retail sector at large. The Singapore Business Federation’s (SBF) latest national business survey released last week showed that 43 per cent of Singapore companies in retail and hospitality reported a credit crunch in the past few months, the highest percentage among the sectors surveyed. Of those companies, more than half are in retail.
https://www.businesstimes.com.sg/consumer/rising-rents-tighter-financing-put-pressure-on-retailers-cash-flow

Singapore braces for economic impact from spread of Wuhan virus
The Singapore economy will likely be hit by the spread of the Wuhan virus, especially the tourism-related sectors, Minister for Trade and Industry Chan Chun Sing said on Monday morning. “We certainly expect there to be an impact on our economy, business and consumer confidence this year, especially as the situation is expected to persist for some time. Of immediate concern would be the tourism-related sectors – this includes our travel agents, hospitality industry, F&B, retail and air transport,” he said.
https://www.businesstimes.com.sg/government-economy/singapore-braces-for-economic-impact-from-spread-of-wuhan-virus
https://www.straitstimes.com/singapore/measures-in-place-in-spore-to-mitigate-economic-impact

Companies’ Brief

CDLHT’s hotel deals get nod of approval from securityholders
CDL Hospitality Trusts’ (CDLHT) stapled securityholders have voted in favour of its two proposed hotel deals. At an extraordinary general meeting on Thursday, securityholders approved the proposed redevelopment of Novotel Singapore Clarke Quay, with 99.9 per cent of total votes in favour.
https://www.businesstimes.com.sg/companies-markets/cdlhts-hotel-deals-get-nod-of-approval-from-securityholders

Frasers Property buying London office buildings for £135m
A subsidiary of Frasers Property is acquiring the entire stake in Bedfont Lakes which holds the freehold interest in a business park comprising three office buildings in London. The aggregate consideration to be paid for the acquisition is about £135 million (S$238 million). This will be payable in cash, and funded from internal resources.
https://www.businesstimes.com.sg/companies-markets/frasers-property-buying-london-office-buildings-for-%C2%A3135m
https://www.straitstimes.com/business/property/frasers-property-acquiring-london-business-park-for-239m
https://www.straitstimes.com/business/companies-markets/frasers-property-buying-london-business-park-for-238m

Frasers Hospitality Trust posts higher Q1 DPS of 1.3301 S cents
Frasers Hospitality Trust on Thursday posted a first-quarter distribution per stapled security (DPS) of 1.3301 Singapore cents, up from 1.2542 Singapore cents a year ago, as it recorded better performance across its portfolio.
Distributable income increased 7.4 per cent for the three-month period ended Dec 31, 2019.
https://www.businesstimes.com.sg/companies-markets/frasers-hospitality-trust-posts-higher-q1-dps-of-13301-s-cents

Mapletree Logistics Trust plans 22.2b yen acquisition of Japan facility
Mapletree Logistics Trust (MLT) is looking to acquire an effective interest of 98.47 per cent in a freehold logistics property in Kobe, Japan, for some 22.2 billion yen (S$272.5 million), its manager said on Tuesday morning in a regulatory update. The property – Mapletree Kobe Logistics Centre – is a four-storey logistics facility located in an established logistics cluster in the city. It has Grade A specifications and is 99.7 per cent occupied by seven tenants.
https://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trust-plans-222b-yen-acquisition-of-japan-facility

Keppel Corp Q4 net profit up on better showing from most divisions
Mainboard-listed conglomerate Keppel Corporation reported 41.5 per cent higher net earnings at S$191.4 million for the fourth quarter ended December, bolstered by stronger performance from offshore and marine (O&M), property and investments divisions. The higher bottom line was a result of narrower losses at O&M business, marginally better showing by the property division and returning to profitability at the investments segment in the period.
https://www.businesstimes.com.sg/companies-markets/keppel-corp-q4-net-profit-up-on-better-showing-from-most-divisions
https://www.straitstimes.com/business/keppel-corps-q4-earnings-up-415-to-1914m

UOL Group to buy 154-room hotel in Jakarta for US$50m
UOL Group has entered into an agreement to buy a 154-room hotel in Jakarta, Indonesia from PT Success Venture Hotel Investments for US$50 million. The hotel, which is under construction and will be managed by Pan Pacific Hotels Group (PPHG) in 2022, is located on levels 51 to 57 of Tower 2 of Thamrin Nine, an integrated development. The integrated development comprises hotels, offices, retail and other facilities.
https://www.businesstimes.com.sg/companies-markets/uol-group-to-buy-154-room-hotel-in-jakarta-for-us50m

Lian Beng proposes S$9.4m exit from loss-making UEP
Lian Beng Group is looking to dispose of its 40 per cent stake in asphalt premix manufacturer United E&P (UEP) for S$9.4 million. The Mainboard-listed construction and civil engineering services firm on Thursday evening announced it has signed a sale-and-purchase agreement with KKC Investment Holding, an unrelated third party, for the deal.
https://www.businesstimes.com.sg/companies-markets/lian-beng-proposes-s94m-exit-from-loss-making-uep

ARA H-Trust sets up S$800m debt issuance programme
ARA US Hospitality Trust (ARA H-Trust) has established an S$800 million multicurrency stapled debt issuance programme, it said on Friday morning. Under the programme, ARA H-Trust will offer stapled notes and stapled perpetual securities in Singapore. Net proceeds from any issuance under the programme will be used for ARA H-Trust’s general corporate purpose.
https://www.businesstimes.com.sg/companies-markets/ara-h-trust-sets-up-s800m-debt-issuance-programme-0

Sabana Reit posts Q4 DPU of 0.77 S cent
Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) on Thursday evening posted a fourth-quarter distribution per unit (DPU) of 0.77 Singapore cent for the three months ended Dec 31, up 8.5 per cent from 0.71 cent a year ago. This was mainly due to additional distribution of the remaining 5.5 per cent distributable income amounting to S$0.5 million (or 0.05 Singapore cent in DPU) that was withheld during its third-quarter distribution.
https://www.businesstimes.com.sg/companies-markets/sabana-reit-posts-q4-dpu-of-077-s-cent

Sasseur Reit closes China malls amid virus spread
In response to the Wuhan virus spread in China, the manager of Sasseur Real Estate Investment Trust (Sasseur Reit) has temporarily shuttered four outlet malls owned by the trust in the country. Two of them, in Chongqing and Bishan, have been closed from Jan 26, while the other two, in Hefei and Kunming, have been closed from Jan 27.
https://www.businesstimes.com.sg/companies-markets/sasseur-reit-closes-china-malls-amid-virus-spread
https://www.straitstimes.com/business/companies-markets/singapore-reit-closes-china-malls-amid-wuhan-virus-spread