DAILY NEWS

Daily News – 29th August 2017

Top Story

Second agency merger in two months fans talk of further consolidation
Consolidation appears to be underway among Singapore’s real-estate agencies. The associate agency divisions of OrangeTee and Edmund Tie & Company (ET&Co) on Monday announced that they will merge to form a joint venture (JV) company, and have just over 4,000 property agents in this stable, leapfrogging Huttons Asia to become the third largest agency here. The setup of the JV, named OrangeTee & Tie, comes two months after homegrown property agencies PropNex Realty and Dennis Wee Group (DWG) announced their merger to form Singapore’s largest real estate agency. It has a 6,700-strong pool of salespeople.
http://www.businesstimes.com.sg/real-estate/second-agency-merger-in-two-months-fans-talk-of-further-consolidation
http://www.straitstimes.com/business/property/orange-tee-edmund-tie-merge-in-new-joint-venture

Amber Park, Jervois Gardens join en bloc fever
En bloc fever in Singapore just got hotter with two more freehold condos joining in the fray this week. Amber Park, a 200-unit freehold condominium in the East Coast, has been launched for en bloc or collective sale on Monday at a minimum price of S$768 million. And Jervois Gardens, a smaller 17-unit freehold condo off River Valley Road, is launching its tender on Tuesday at an asking price of about S$68 million.
http://www.businesstimes.com.sg/real-estate/amber-park-jervois-gardens-join-en-bloc-fever
http://www.straitstimes.com/business/property/amber-park-jervois-gardens-up-for-collective-sale
http://www.channelnewsasia.com/news/business/amber-park-jervois-gardens-join-fast-growing-list-of-en-bloc-9164824

Singapore Economy

Singapore dollar surges against US dollar as central bankers keep mum on policy
The Singapore dollar surged against the greenback as expected on Monday, in line with other currencies, following a meeting of central bankers in Jackson Hole in Wyoming over the weekend. The meeting gave no clue on monetary policy. As the US dollar sank, the Singapore dollar rallied to S$1.3551 from last Friday’s S$1.3594. In the year to date, the Sing dollar has risen almost 7 per cent, and is back to last September’s levels.
http://www.businesstimes.com.sg/government-economy/singapore-dollar-surges-against-us-dollar-as-central-bankers-keep-mum-on-policy

Adapt to tech changes or risk becoming obsolete: Iswaran
New technologies and their applications in countries like China and India have effects on Singapore businesses, said Trade and Industry Minister S Iswaran at the 2017 MTI Economic Dialogue held on Monday. Speaking on how technological disruptions affect traditional business models in the transport and retail sector – with the rise of digital platforms including Grab, Uber, DiDi Chuxing, Go-Jek, and Amazon Prime – Mr Iswaran said businesses have to be nimble and adapt to changes or risk becoming obsolete.
http://www.businesstimes.com.sg/government-economy/adapt-to-tech-changes-or-risk-becoming-obsolete-iswaran
http://www.straitstimes.com/business/economy/iswaran-to-students-embrace-change-turn-it-into-opportunity
http://www.channelnewsasia.com/news/singapore/iswaran-urges-students-to-tap-opportunities-in-innovation-and-9164862
http://www.todayonline.com/business/minister-urges-young-grow-entrepreneurial-spirit

S’pore well-positioned to reap gains in Belt & Road: Shanmugam
Having recognised early on the benefits of China’s One Belt, One Road initiative, Singapore has actively supported it and is well-positioned to make gains from it, Home Affairs and Law Minister K Shanmugam said in a lecture this morning.
http://www.businesstimes.com.sg/government-economy/spore-well-positioned-to-reap-gains-in-belt-road-shanmugam
http://www.straitstimes.com/singapore/spore-in-a-position-to-benefit-from-belt-and-road-push?login=true
http://www.todayonline.com/business/spore-must-stay-smart-profit-multi-polar-world

Passion Made Possible tagline faces online scrutiny
Just days after its unveiling, the tagline “Passion Made Possible”, part of Singapore’s latest branding exercise, has drawn derision, with netizens saying it was cribbed from the title of a self-help book published two years ago.
http://www.businesstimes.com.sg/government-economy/passion-made-possible-tagline-faces-online-scrutiny

Singapore Real Estate

Singapore private home sales surging on local, not foreign, demand, data shows
After years of declines, Singapore’s home sales are on a roll, even as purchases by foreign buyers have remained muted. Stringent stamp duties levied by the government have had the intended effect of damping speculative foreign demand, with foreign buyers accounting for just 6 per cent of purchases in the first half, data from Cushman & Wakefield show. That compares with 9 per cent as recently as 2013, when mortgage rules were tightened.
http://www.straitstimes.com/business/property/singapore-private-home-sales-surging-on-local-not-foreign-demand-data-shows
https://www.bloomberg.com/news/articles/2017-08-28/singapore-home-sales-surge-even-as-foreign-demand-stays-subdued
http://www.businesstimes.com.sg/real-estate/singapore-home-sales-surge-even-as-foreign-demand-stays-subdued

Resale condo prices up 0.5% in July: NUS index
Resale condominium prices continued to tick higher last month, though at a slower pace than in June. Prices of non-landed private homes climbed 0.5 per cent over the month before, according to flash estimates from NUS Singapore Residential Price Index. That is a dip from June when prices were up 0.9 per cent over May.
http://www.straitstimes.com/business/property/resale-condo-prices-up-05-in-july-nus-index

Sloane Court Hotel to make way for new condo
Sloane Court Hotel and an adjoining site in Balmoral Road will be redeveloped into a 12-storey condominium comprising about 80 units. Building construction and civil engineering groups Tiong Seng Holdings and Ocean Sky International said that their joint-venture company entered a deal last Friday to buy the two sites for S$80.5 million.
http://www.businesstimes.com.sg/real-estate/sloane-court-hotel-to-make-way-for-new-condo
http://www.straitstimes.com/business/companies-markets/sloane-court-hotel-and-adjoining-plot-sold-for-805m
http://www.channelnewsasia.com/news/singapore/sloane-court-hotel-sold-for-s-80-5m-to-be-redeveloped-into-9164482

Companies’ Brief

Mapletree Logistics Trust to buy HK warehouse for HK$4.8b
Mapletree Logistics Trust (MLT) is acquiring a warehouse in Hong Kong for HK$4.8 billion (S$831 million) as it looks to strengthen its presence in what it deems to be an attractive logistics market. In an announcement on Monday evening, Mapletree Logistics Trust Management (MLTM) said it had earlier in the day entered into a conditional share purchase agreement with Mapletree Overseas Holdings, a wholly owned subsidiary of Mapletree Investments, to buy Mapletree Logistics Hub Tsing Yi.
http://www.businesstimes.com.sg/companies-markets/mapletree-logistics-trust-to-buy-hk-warehouse-for-hk48b
http://www.straitstimes.com/business/mapletree-logistics-trust-to-buy-hong-kong-warehouse

CapitaLand names new chiefs for digital, operations, investment
Chiefs for digital, investment and operations are among the new roles that CapitaLand is introducing in a round of management changes to anticipate long-term trends, the property developer announced on Monday. The new group chief operating officer position will be filled by Jason Leow Juan Thong. Current CapitaLand Mall Asia deputy chief executive Wilson Tan Wee Yan will replace Mr Leow as CEO of CapitaLand Mall Asia.
http://www.businesstimes.com.sg/companies-markets/capitaland-names-new-chiefs-for-digital-operations-investment
http://www.businesstimes.com.sg/companies-markets/capitaland-announces-management-changes

Keppel Land prices S$150m, 2.843% notes due in 2023
Keppel Corporation’s unit, Keppel Land Limited, has on Aug 28, 2017 priced S$150 million in aggregate principal amount of 2.843 per cent notes due 2023, the group said in a Singapore Exchange filing on Tuesday. The notes will be issued under the US$3 billion multicurrency medium term note programme established by the issuer and Keppel Land Financial Services on Nov 22, 2012.
http://www.businesstimes.com.sg/companies-markets/keppel-land-prices-s150m-2843-notes-due-in-2023
http://www.straitstimes.com/business/companies-markets/keppel-land-to-issue-150m-worth-of-2843-notes-due-in-2023

Fragrance Group sets up new unit in UK, acquires Manchester property for £12.5m
Fragrance Group Limited has set up a wholly owned subsidiary in the United Kingdom as a property investment holding company, and acquired The Townhouse Hotel in Manchester, UK, for £12.5 million (S$21.9 million). The new unit, called Fragrance UK-Manchester Limited, has a paid-up capital of £1 million, the group said in a Singapore Exchange filing on Monday.
http://www.businesstimes.com.sg/companies-markets/fragrance-group-sets-up-new-unit-in-uk-acquires-manchester-property-for-%C2%A3125m

AA Group sells unit for S$7.5m to focus on property related activities
AA Group Holdings is selling its wholly owned unit Allied Advantage Sdn Bhd Ltd as it gets out of the speakers and iron ore trading business. The company intends to use the sale proceeds to invest in property related and construction business, it said on Monday. The company is selling Allied Advantage to Bosetech Corporation for S$7.5 million, it said.
http://www.businesstimes.com.sg/companies-markets/aa-group-sells-unit-for-s75m-to-focus-on-property-related-activities

Views, Reviews & Forum

GIC’s investment a boost to Indian developer’s risk profile
Singapore’s sovereign wealth fund is buying one-third of the rental property unit of India’s largest developer in a US$1.4 billion (S$1.9 billion) investment viewed as a turnaround point in the country’s debt-laden real estate business. But it also points to the industry’s biggest challenge: poor sales. GIC’s cheque will give DLF’s controlling shareholders as much as US$1.9 billion. To that, add a share sale to other investors – probably a rights offer – and the beleaguered builder’s net debt-to-equity ratio would fall from 102 per cent at end-March to 33 per cent, according to HDFC Securities.
http://www.straitstimes.com/business/companies-markets/gics-investment-a-boost-to-indian-developers-risk-profile