DAILY NEWS

Daily News – 28th February 2017

Singapore Economy

Joint expert panel to advance Sino-Singapore Tianjin Eco-city
Links between Singapore and China’s private and public sectors got a boost on Monday, with the unveiling of several initiatives, including the formation of a joint expert panel that will advance the development of the Sino-Singapore Tianjin Eco-city. The joint panel will advise the Eco-city on how to achieve its vision and leverage on opportunities arising from China’s national plans, such as the Jing-Jin-Ji Integrated Development and the 13th Five-Year Plan. It will comprise experts from the government and private sectors, academic institutions and research organisations.
http://www.businesstimes.com.sg/government-economy/joint-expert-panel-to-advance-sino-singapore-tianjin-eco-city
http://www.straitstimes.com/asia/east-asia/spore-china-ink-pacts-to-deepen-cooperation-in-bilateral-projects
http://www.channelnewsasia.com/news/singapore/expert-panel-formed-to-aid-sino-singapore-tianjin-eco-city-s/3552902.html

Singapore Real Estate

DBS and UOB in home loan war with zero per cent spread
A fierce home loans war has broken out between DBS Bank and United Overseas Bank, to the delight of home buyers. The prize, for now at least, is the prospect of financing the purchase of at least 1,225 homes being offered in the year’s first two new-property launches. Both banks are slugging it out with a zero-per-cent spread under their fixed-deposit home-loan rate (FHR) packages aimed at projects under construction, with no lock-in period and a one-time free conversion for a limited time only.
http://www.businesstimes.com.sg/banking-finance/dbs-and-uob-in-home-loan-war-with-zero-per-cent-spread

182 Clemenceau Ave up for sale at S$90m
A six-storey office building in District 9 has been put on the market. The indicative price for 182 Clemenceau Avenue is S$90 million, which works out to S$1,936 per square foot based on the building’s existing net lettable area of 46,490 square feet. On the 55,493 sq ft existing gross floor area, the indicative price translates to S$1,622 psf. The building is on a site with 99-year leasehold tenure starting from Sept 24, 1993, reflecting a balance lease term of about 75.5 years.
http://www.businesstimes.com.sg/real-estate/182-clemenceau-ave-up-for-sale-at-s90m

Companies’ Brief

Ho Bee profits hit by drop in value of London properties
Lower fair value gains on its investment properties caused Ho Bee Land to post declines in fourth-quarter and full-year net earnings. Five of the group’s six London investment properties suffered declines in valuations as at the end of last year – in the aftermath of Brexit. This was compounded by the sterling’s depreciation when the revaluation losses were converted to Singapore dollars, Ho Bee’s reporting currency.
http://www.businesstimes.com.sg/companies-markets/ho-bee-profits-hit-by-drop-in-value-of-london-properties
http://www.straitstimes.com/business/companies-markets/ho-bee-lands-q4-net-profit-down-on-lower-fair-value-gain

Roxy-Pacific Q4 profit dips as expenses rise, overall margin falls
Higher expenses, a drop in other operating income and poorer overall gross margin led property developer Roxy-Pacific Holdings to report a 4 per cent drop in fourth-quarter net profit to S$11.9 million despite higher contributions from associates. This translates to Q4 earnings per share of one Singapore cent, against 1.03 cents a year ago. Revenue for the three months ended Dec 31, 2016, rose 14 per cent to S$93.1 million on the back of higher contributions from its property development and investment segments. In particular, there was higher revenue recognition from Trilive, LIV on Sophia and LIV on Wilkie. But gross profit was up just one per cent as overall gross margin dropped two percentage points to 22 per cent.
http://www.businesstimes.com.sg/companies-markets/roxy-pacific-q4-profit-dips-as-expenses-rise-overall-margin-falls

GLP invites shortlisted parties to conduct due diligence
Mainboard-listed Global Logistic Properties’ (GLP) special committee has shortlisted several interested parties and has invited them to conduct due diligence on the company. In a filing to the bourse operator on Monday, the logistics group said this was in relation to its independent strategic review, where the committee has evaluated various non-binding proposals received. GLP said the independent strategic review might involve a possible acquisition of all or some of its shares, “which may or may not lead to an offer being made for the shares of the company”.
http://www.businesstimes.com.sg/companies-markets/glp-invites-shortlisted-parties-to-conduct-due-diligence

Manulife US Reit units issued as property management fees
ManulifeE US Real Estate Management, manager of Manulife US Real Estate Investment Trust (Manulife US Reit), said 576,588 units in the Reit were issued on Monday at US$0.84 per unit to Manufacturers Life Reinsurance Limited (MLRL) as payment of property management fees. MLRL is an entity nominated by John Hancock Life Insurance Company (USA) to receive the property management fee units in its place. The units have been issued as payment of 100 per cent of the property management fees for the period from of Oct 1 to Dec 31, 2016.
http://www.businesstimes.com.sg/companies-markets/manulife-us-reit-units-issued-as-property-management-fees

HPL’s FY2016 profit rises 26.7% on land sale gains
Gaines from land sales lifted Hotel Properties Ltd’s (HPL) full-year net profit by 26.7 per cent despite lower revenue from hotels and resorts. For the 12 months ended Dec 31, 2016, the hospitality group’s net profit was S$103.5 million, or 18.13 Singapore cents per share. The company has declared a per-share dividend payout of eight Singapore cents, comprising a four Singapore cent final dividend and a four Singapore cent special dividend.
http://www.businesstimes.com.sg/companies-markets/hpls-fy2016-profit-rises-267-on-land-sale-gains

Cushman & Wakefield secure approval for redevelopment of Katong Shopping Centre
Cushman & Wakefield, together with the Collective Sale Committee, has secured approval for the redevelopment of Singapore’s first air-conditioned mall Katong Shopping Centre for commercial and serviced residence use. The reserve price remains the same at S$630 million which translates to a land price of $S2,248 per square foot of gross floor area, said Cushman & Wakefield, the exclusive marketing agent for the property, in a statement.
http://www.businesstimes.com.sg/real-estate/cushman-wakefield-secure-approval-for-redevelopment-of-katong-shopping-centre
http://www.straitstimes.com/business/search-for-buyers-back-on-for-katong-shopping-centre?login=true

Former Goldman partner is Mapletree’s new regional CEO
Goldman Sach’s former head of South-east Asian investment banking Michael Smith is joining Mapletree Investments from March 1 as regional CEO for Europe and USA. He is said to have left Goldman Sachs last December after 10 years with the bank. At the same time, Mapletree’s group chief investment officer and regional CEO for North Asia and New Markets Chua Tiow Chye will be redesignated as deputy group CEO. Mr Chua will continue to oversee North Asia and Australia as well as the Oakwood portfolio, a Mapletree spokesman told The Business Times.
http://www.businesstimes.com.sg/companies-markets/former-goldman-partner-is-mapletrees-new-regional-ceo

Views, Reviews & Forum

Will Perennial’s big bet on healthcare pay off?
With the slowdown in office and retail property markets, one non-traditional asset class that is gaining popularity among developers as they diversify their income-producing portfolios is healthcare real estate. This is seen in the recent interest in Catalist-listed International Healthway Corporation (IHC) from OUE, which launched a surprise takeover offer for the Asia-Pacific healthcare services and facilities provider in February after shoring up its stake to 57.6 per cent.
http://www.businesstimes.com.sg/companies-markets/will-perennials-big-bet-on-healthcare-pay-off

Management councils can be as big a problem as proxy issue
I read the report, Plan to limit proxies one can hold at condo meetings (Feb 2), with interest. Multiple proxies held by subsidiary proprietors (SP) is only one issue. An equally serious problem is sometimes the condominium’s management council (MC). MCs have many powers which create potential for abuse, as Straits Times readers have been pointing out as far back as last year (Mr Chan Kai Yan in Require condo management to submit accounts to MND; Aug 10, 2016).
http://www.straitstimes.com/forum/letters-in-print/management-councils-can-be-as-big-a-problem-as-proxy-issue