DAILY NEWS

Daily News – 26, 27, 28 & 29 Oct 2019

Singapore Real Estate

10 Singapore private estates to undergo upgrading works over 4 to 5 years
Ten private estates in Singapore will be undergoing upgrading, said the Ministry of National Development (MND) in an announcement on Friday. The upgrading works, which will cost S$29 million in total, include providing footpath lighting, installing wheelchair-accessible ramps and improving the estates’ landscaping and parks.
https://www.businesstimes.com.sg/real-estate/10-singapore-private-estates-to-undergo-upgrading-works-over-4-to-5-years
https://www.straitstimes.com/singapore/housing/facelift-for-10-private-estates-with-29m-upgrading-works
https://www.channelnewsasia.com/news/singapore/private-estate-upgrade-mnd-12033924
https://www.todayonline.com/singapore/10-private-estates-get-s29-million-upgrading

Midwood sells 24 units on launch weekend
Real estate developer Hong Leong Holdings sold 24 units out of 50 released for the launch weekend of its 564-unit Midwood condominium. Hong Leong Holdings’ head of sales and marketing Betsy Chng said the developer is “very pleased” with the sales.
https://www.businesstimes.com.sg/companies-markets/midwood-sells-24-units-on-launch-weekend
https://www.straitstimes.com/singapore/midwood-sells-24-of-50-units-released-on-weekend-launch

Singapore Economy

Singapore’s September factory output grows 0.1%; defies expectations of a fall
Singapore’s manufacturing output saw a modest year-on-year uptick of 0.1 per cent in September, boosted by biomedical manufacturing and defying private economists’ expectations of a 4.8 per cent decline. Excluding the volatile biomedical manufacturing sector, however, output fell by 4.3 per cent, according to estimates released by the Economic Development Board of Singapore (EDB) on Friday.
https://www.businesstimes.com.sg/government-economy/singapores-september-factory-output-grows-01-defies-expectations-of-a-fall
https://www.straitstimes.com/business/companies-markets/surprise-01-rise-in-factory-output-on-biomed-boost
https://www.channelnewsasia.com/news/singapore/singapore-manufacturing-output-september-2019-12034250

Singapore job market showing strain as economy slows
Singapore (Bloomberg) – Singapore’s resilient labour market is starting to come under strain as the trade-reliant economy struggles in the face of global pressures. Retrenchments are rising, companies are more cautious raising wages, and it’s getting harder for those who lose their jobs to find new work. While the central bank is optimistic of some recovery in the economy in upcoming quarters, there are signs the…
https://www.straitstimes.com/business/economy/singapore-job-market-showing-strain-as-economy-slows

Companies’ Brief

Higher rental income from HK property lifts MNACT’s Q2 payout
Higher rental income from Festival Walk and higher average rates of the Hong Kong dollar and Japanese yen boosted Mapletree North Asia Commercial Trust’s (MNACT) second quarter distribution per unit (DPU) to 1.937 Singapore cents, up from 1.926 cents it paid out a year ago. This was partially offset by the lower average rate of the Chinese yuan against the Singapore dollar.
https://www.businesstimes.com.sg/companies-markets/higher-rental-income-from-hk-property-lifts-mnacts-q2-payout

First Sponsor’s Q3 profit jumps 30.3% on strong pre-sales for China projects, hotel addition
Mainboard-listed First Sponsor Group posted a 30.3 per cent surge in net profit to S$33.3 million for the third quarter ended Sept 30, from S$25.6 million in the year-ago period, it said in a bourse filing on Friday. The property developer and financing group said it recorded strong pre-sales for several Chinese projects while its Dutch portfolio was boosted by the acquisition of the 193-room Hampton by Hilton hotel in…
https://www.businesstimes.com.sg/companies-markets/first-sponsors-q3-profit-jumps-303-on-strong-pre-sales-for-china-projects-hotel

Perennial banks on eldercare in China for growth
Four years after venturing into China’s healthcare sector, Perennial Real Estate Holdings chief executive Pua Seck Guan has set his sights on eldercare as the firm’s biggest growth area in its medical business – targeting the upper middle income group via a step-down care model. He is also banking on business travellers and medical tourism within China, building integrated developments near high-speed rail (HSR)…
https://www.straitstimes.com/business/companies-markets/perennial-banks-on-eldercare-in-china-for-growth

Hot stock: EHT up 8.3% after sponsor says it will pay for Queen Mary repairs
Stapled securities of Eagle Hospitality Trust (EHT) staged a comeback on Tuesday morning, advancing 8.3 per cent, or 4.5 US cents to 59 US cents as at 10am, after the stock plunged last week, skirting near its 52-week low of 54 US cents. Some 7.4 million shares changed hands, making it one of the most heavily traded counters on the Singapore bourse in the early morning trade.
https://www.businesstimes.com.sg/companies-markets/hot-stock-eht-up-83-after-sponsor-says-it-will-pay-for-queen-mary-repairs
https://www.businesstimes.com.sg/companies-markets/sponsor-will-pay-for-queen-mary-repairs-eagle-hospitality-trust
https://www.businesstimes.com.sg/companies-markets/eht-dives-155-on-queen-mary-lease-worries

Keong Hong buckles up as it rides construction roller-coaster
Less is more, so goes a design maxim that espouses simplicity in style. It might also well be the guiding motto of Keong Hong Holdings, that three years ago climbed the ranks to Singapore Exchange’s mainboard from Catalist and has survived several boom and bust cycles over the past 30 years. Keeping things simple is exactly how company founder and majority owner Ronald Leo Ting Ping has led the homegrown builder…
https://www.businesstimes.com.sg/companies-markets/keong-hong-buckles-up-as-it-rides-construction-roller-coaster

Rich Capital JV receives termination notice from Batam project contractor Rich-Link Konstruksi
A joint-venture vehicle linked to Rich Capital has received a notice of termination from the main contractor of its Oxley Convention City project in Batam, Indonesia. In the notice received by Oxley Karya Indo Batam (OKIB) on Oct 23, the contractor Rich-Link Konstruksi (RLK) said that given OKIB’s continued breaches, RLK intends to exercise its right to terminate the main contract and reserves all its rights…
https://www.businesstimes.com.sg/companies-markets/rich-capital-jv-receives-termination-notice-from-batam-project-contractor-rich

Views, Reviews, Forum & Others

A key partner in the digital age
Chia Ngiang Hong, President, Real Estate Developers’ Association of Singapore (REDAS)
The role of unions serving as a collective voice and an intermediary for their members, their families and communities will continue to evolve but is relevant and important. With the increasingly uncertain macro-economic environment brought about by anti-globalisation sentiments, technological and business disruptions, changing nature of work, growing wage disparity, etc, unions can act as an effective partner…
https://www.businesstimes.com.sg/views-from-the-top/a-key-partner-in-the-digital-age

Investing in tourist hotspots amid uncertainty
The external environment has become more uncertain in 2019. There is a lack of clarity whether trade tensions between the US and China will eventually reach a standstill, and how Brexit will pan out. The escalation of oil prices due to the latest attacks has added further downward pressure on the global economy. Amid these uncertainties, investors have naturally gravitated towards safer assets – bonds and…
https://www.businesstimes.com.sg/real-estate/investing-in-tourist-hotspots-amid-uncertainty

Tight supply keeps office and prime retail rental steady
Market confidence might have been dented due to weaker economic growth and the escalation of the trade war but landlords have been able to hold rents steady due to tight vacancies and limited upcoming supply. In fact, Grade A Central Business District (CBD) rent increased marginally by 0.4 per cent to $10.65 per square foot per month in the third quarter after remaining flat in the preceding quarter…
https://www.straitstimes.com/business/invest/tight-supply-keeps-office-and-prime-retail-rental-steady

Utilising, optimising and reaping the full benefits of proptech
Property technology (proptech) is disrupting the way buildings are managed. The built environment industry is applying proptech to enhance the performance of buildings, to reduce risks and the cost of maintaining a building. But while it is exciting and presents tremendous potential for transformation, it can be hard for property owners to navigate the myriad of proptech possibilities without the right strategies.
https://www.businesstimes.com.sg/real-estate/utilising-optimising-and-reaping-the-full-benefits-of-proptech

UE offer: Yanlord and Perennial cut another curious deal
Perennial Real Estate Holdings has just sold all its shares in United Engineers (UE) to Yanlord Land for zero profit, at a price below market. This is not what companies usually do, unless cash is an issue or confidence has been lost in the investment. The truth may be neither of those things, once you account for the 25.3 per cent gain that Perennial has made by flipping its shares in UE subsidiary WBL Corp over to Yanlord as…
https://www.businesstimes.com.sg/real-estate/ue-offer-yanlord-and-perennial-cut-another-curious-deal