DAILY NEWS

Daily News – 30th January 2018

Top Story

Singapore’s outbound property investments hit record in 2017
Singapore monies that went into overseas real-estate investments last year rose by about 40 per cent to a record US$28.4 billion, up from US$20.4 billion in 2016 and upending the last high of US$27.6 billion in 2015. Sovereign wealth fund (SWF) GIC had a hand in all three of Singapore’s largest outbound property deals in 2017, according to data from Real Capital Analytics, which includes both investments in stabilised properties and undeveloped land.
http://www.businesstimes.com.sg/real-estate/singapores-outbound-property-investments-hit-record-in-2017
http://www.straitstimes.com/business/companies-markets/overseas-real-estate-a-hit-with-local-investors-in-2017?login=true

Singapore Economy

Singapore R&D tax perks could be among world’s weakest when PIC expires: KPMG
More targeted measures are needed for companies to drive innovation, with the expiry of the Productivity and Innovation Credit (PIC) scheme this year, said small and medium-sized enterprises (SMEs) and observers.
http://www.businesstimes.com.sg/government-economy/singapore-rd-tax-perks-could-be-among-worlds-weakest-when-pic-expires-kpmg

Restructuring: SMEs urged to seize the day while the going is good
Prospects may be looking up, but SMEs need to push ahead with their restructuring efforts to be future-ready, instead of taking this opportunity to take their foot off the accelerator. A rising tide might lift all boats, but those whose vessels are not in order might see themselves sinking instead.
http://www.businesstimes.com.sg/sme/restructuring-smes-urged-to-seize-the-day-while-the-going-is-good

Drive to boost hawker centre business and productivity
A system of charging customers a deposit that will be forfeited if they do not return food trays may be rolled out at up to 25 hawker centres in the coming years despite mixed reviews over its effectiveness. It is part of a government push to boost productivity in hawker centres amid tightening manpower constraints, attract younger Singaporeans to enter the profession and also promote more gracious behaviour among food patrons.
http://www.straitstimes.com/singapore/drive-to-boost-hawker-centre-business-and-productivity

Singapore Real Estate

Condo price increase eases to 0.6% in Dec: NUS index
Prices of completed private apartments and condos in Singapore rose 0.6 per cent in December compared to the previous month. This is according to the National University of Singapore’s (NUS) latest flash estimates for its Singapore Residential Price Index (SRPI) released on Monday. The price increase eased from the 1.6 per cent rise seen in November, based on the revised index value for that month.
http://www.businesstimes.com.sg/real-estate/condo-price-increase-eases-to-06-in-dec-nus-index
http://www.straitstimes.com/business/property/completed-condo-prices-06-higher-in-december-than-november-nus-index

Bungalow at Leedon/Belmont road junction fetches S$57.5m
An old bungalow on a sprawling site at the junction of Leedon and Belmont roads has been transacted at S$57.5 million. The price works out to S$1,309 per square foot on the freehold land area of 43,926 sq ft. On site is a two-storey property comprising two buildings and a large swimming pool. The two buildings are understood to have a total of seven bedrooms. Located in the Leedon Park Good Class Bungalow (GCB) Area, the property is being sold by a company the biggest shareholder of which is Chong Swee Hah.
http://www.businesstimes.com.sg/real-estate/bungalow-at-leedonbelmont-road-junction-fetches-s575m

Rajah and Tann set ‘to shift to Marina One by 2020’
Major law firm Rajah and Tann, the anchor tenant of Straits Trading Building, will move to the newly completed Marina One come 2020, BT has learnt. This move comes against a backdrop of increasing relocations, where more companies are moving to newer developments in the Central Business District (CBD) area.
http://www.businesstimes.com.sg/real-estate/rajah-and-tann-set-to-shift-to-marina-one-by-2020

Study awards, diplomas to boost building sector
At just five years old, Mr Ajit Kumar would take apart damaged household appliances, fascinated by the colourful and intricate wiring inside ovens and fans. At seven, during his first experience of a power blackout at home, he was not afraid. Instead, he was curious about how it happened.
http://www.straitstimes.com/singapore/manpower/study-awards-diplomas-to-boost-building-sector

Companies’ Brief

ESR-Reit confirms merger talks with Viva Industrial Trust
ESR-REIT’S proposed merger with Viva Industrial Trust (VIT) through a trust scheme of arrangement, if successful, will be the first merger ever in the 15-year history of Singapore Reits. According to its announcement on Monday, ESR-Reit said it is looking to acquire all of VIT’s stapled securities, and in return issue new ESR-Reit units to the stapled security holders. It did not disclose pricing details.
http://www.businesstimes.com.sg/companies-markets/esr-reit-confirms-merger-talks-with-viva-industrial-trust
http://www.straitstimes.com/business/companies-markets/esr-reit-confirms-merger-talks-with-viva-industrial-trust

Starhill Global Reit posts drop in Q2 DPU
Starhill Global Reit on Monday reported a 7.1 per cent drop in distribution per unit (DPU) for the fiscal second quarter ended Dec 31, 2017 to 1.17 Singapore cents. This was mainly due to lower net property income (NPI), the effects of straight-line rental adjustments, and higher withholding taxes for Malaysia and Australia properties, said its Reit manager YTL Starhill Global Reit Management.
http://www.businesstimes.com.sg/companies-markets/starhill-global-reit-posts-drop-in-q2-dpu
http://www.straitstimes.com/business/starhill-global-reits-dpu-down-in-q2

Bullish investors look past failed bid by CDL to privatise M&C Hotels
Shares of City Developments (CDL) rose 26 Singapore cents or 1.97 per cent to finish at S$13.45 on Monday after an aborted attempt to buy out Millenium & Copthorne Hotels (M&C). But the M&C deal had a slim chance of success from the outset and investors chasing CDL seem more preoccupied with Singapore’s property market recovery than anything else.
http://www.businesstimes.com.sg/companies-markets/bullish-investors-look-past-failed-bid-by-cdl-to-privatise-mc-hotels

CDL appoints new group CIO
City Developments Limited (CDL) has appointed Frank Khoo, 49, as group chief investment officer from Feb 1. As group CIO, he will assist the group CEO in the sourcing and execution of new investment opportunities while also setting up a dedicated fund management platform. Mr Khoo has over 20 years of international experience in fund management, private equity, acquisition of real estate assets and the repositioning and restructuring of real estate businesses.
http://www.businesstimes.com.sg/companies-markets/cdl-appoints-new-group-cio

Ascott wins deals to manage 4 properties totalling 1,200 units
The Ascott has clinched contracts to manage four properties totalling 1,200 units – in Malacca in Malaysia, Davao in the Philippines, Guangzhou in China and Cebu in the Philippines. In Malacca, Somerset Melaka Island – slated to open in 2022 – will be part of a mixed-use development that also includes a shopping mall. It is located near an upcoming free trade zone and free port.
http://www.businesstimes.com.sg/real-estate/ascott-wins-deals-to-manage-4-properties-totalling-1200-units
http://www.straitstimes.com/business/companies-markets/ascott-clinches-deals-to-manage-four-properties?login=true

Fung Group opens Singapore hub in Asia push
Fung Group, whose businesses have been better known for managing brands, selling toys and connecting China’s factories to malls in the West, is looking to South Asia and Southeast Asia for its next phase of growth. Singapore’s educated workforce and status as a regional commercial centre will be essential to those ambitions, group deputy chairman William Fung told BT in an exclusive interview.
http://www.businesstimes.com.sg/companies-markets/fung-group-opens-singapore-hub-in-asia-push
http://www.straitstimes.com/business/companies-markets/spore-key-for-fung-groups-asia-expansion