DAILY NEWS

Daily News – 28th December 2016

Singapore Real Estate

Steeper declines in rents, prices
It has been a bleak year for industrial property landlords as rentals and prices continued to slide. But from the state landlord JTC’s standpoint, all is going according to plan. Lower occupancy costs mean lower business costs for industrialists, which dovetail with its objectives.
http://www.businesstimes.com.sg/infographics/steeper-declines-in-rents-prices

Business as usual, with 17,000 new BTO flats
2017 looks set to become the year when policy changes in housing are being quietly set in motion behind the scenes. On the stage, however, few fireworks are expected. In October, National Development Minister Lawrence Wong, in an interview, highlighted some changes to come. One of the most significant is the launch of new flats for young couples with shorter waiting times, as part of a national strategy to help Singaporeans settle down and have children. Mr Wong said he wanted to cut the wait to two to three years, down from the current three to four years. They will likely be introduced in 2018.
http://www.straitstimes.com/singapore/business-as-usual-with-17000-new-bto-flats

Companies’ Brief

Jumbo’s appetite for expansion could prove good for growth
Restaurant group Jumbo Seafood could prove promising for investors as the chain sharpens its focus on expanding in China and the rest of Asia. While the food-and-beverage (F&B) industry in Singapore is expected to remain challenging due to the slowing economy and stiff competition, some analysts are upbeat on the counter, pointing to its ongoing plans to grow its footprint outside of its home base.
http://www.businesstimes.com.sg/companies-markets/jumbos-appetite-for-expansion-could-prove-good-for-growth

Yanlord acquires second Nanjing site for 7.8b yuan
Yanlord Land Group said on Tuesday that it has acquired a prime development site on Sino-Singapore Nanjing Eco Hi-Tech Island for 7.84 billion yuan (S$1.5 billion) through a public land auction. The integrated development site, spanning 541,000 square metre (sq m) in gross floor area, will comprise residential apartments, recreational facilities, hotel, offices and tourism space.
http://www.businesstimes.com.sg/companies-markets/yanlord-acquires-second-nanjing-site-for-78b-yuan
http://www.straitstimes.com/business/property/yanlord-buys-16b-riverfront-site-in-nanjing

GLP secures Sagamihara site in Greater Tokyo
Global Logistic Properties (GLP) has secured a site in Sagamihara, Greater Tokyo, which it plans to develop over 655,000 square metres of gross floor area at a total investment cost of 133 billion yen (S$1.6 billion). GLP expects to start the first phase of construction in 2020 following a sale-and-leaseback arrangement with the seller. It intends to undertake the project within its US$39 billion fund management platform. GLP said that Sagamihara has emerged as a major logistics hub driven by a lack of quality logistics space and available land parcels in metropolitan Tokyo.
http://www.businesstimes.com.sg/companies-markets/glp-secures-sagamihara-site-in-greater-tokyo-0
http://www.straitstimes.com/business/companies-markets/glp-to-build-japans-largest-logistics-park-costing-16b-in-tokyo

China Everbright raises Ying Li stake
China Everbright Ltd, the asset management arm of Chinese state-owned China Everbright Group, has increased its stake in Singapore-listed Chongqing developer Ying Li International Real Estate. Disclosures late last Friday night showed China Everbright’s indirect unit, State Alpha, buying 205 million shares, or 8.02 per cent of Ying Li, from Leap Forward, an investment vehicle owned by Liu Lai and Mok Kwok Kam. China Everbright purchased its latest stake for S$28.29 million, or S$0.138 a share.
http://www.businesstimes.com.sg/companies-markets/china-everbright-raises-ying-li-stake

Lum Chang Holdings
Lum Chang Holdings’ subsidiary has sold a London hotel for £13.78 million (about S$24.5 million). On Dec 23, Lum Chang subsidiary Lum Chang Orion agreed to sell 11.4 million shares in Pembridge Palace Holdco to ITC Investment & Technology Group Companies. Pembridge Palace owns the freehold interest in the London hotel. The transaction is expected to generate a net gain of £2.6 million.http://www.businesstimes.com.sg/companies-markets/corporate-digest-339

Views, Reviews & Forum

Use underground space to boost retail in Singapore
In Land-Scare Singapore, land optimisation is a strategic thrust that is achieved by reclaiming land, intensifying land use upwards, and building downwards. However, there are limits to land reclamation and building upwards due to maritime and aviation constraints respectively. Therefore, unlocking underground space and synergising below and above-ground land use is the next frontier for Singapore.
http://www.businesstimes.com.sg/opinion/use-underground-space-to-boost-retail-in-singapore

Tackle high rent issue to spur S’pore economy
I share Professor Tommy Koh’s concern about Singapore becoming a rentier economy, especially with the rise of real estate investment trusts (Reits) here (“Is Singapore the new sick man of Asia?“; Dec 24). Rising rents and commercial property prices benefit those who already own vast property portfolios, as they are able to attain greater passive income without putting in additional work.
http://www.straitstimes.com/forum/letters-in-print/tackle-high-rent-issue-to-spur-spore-economy?login=true