DAILY NEWS

Daily News – 29th and 30th May 2018

Top Story

Singapore will be told of Malaysia’s wish to scrap high-speed rail: Mahathir
Kuala lumpur – Prime Minister Mahathir Mohamad said on Tuesday (May 29) that Singapore will be informed about Malaysia’s wish to scrap the high-speed rail (HSR) project. He also said that he stood by earlier comments that the project would cost a total of RM110 billion (S$37.2 billion), after a former Malaysian minister who was in charge of the project said on Tuesday that estimates had put the cost at RM50 billion to RM70 billion.
https://www.straitstimes.com/asia/se-asia/mahathir-spore-will-be-told-of-kls-wish-to-scrap-hsr
https://www.straitstimes.com/asia/se-asia/singapore-yet-to-be-told-of-decision-on-hsr-mahathir
https://www.channelnewsasia.com/news/asia/malaysia-pm-mahathir-says-will-inform-singapore-of-intent-to-10286868
https://www.businesstimes.com.sg/government-economy/no-word-yet-from-malaysia-about-hsr-cancellation-spores-transport-ministry
https://www.channelnewsasia.com/news/singapore/singapore-not-received-official-notification-malaysia-hsr-drop-10284740

Malaysia drops high-speed rail project
[Kuala lumpur] Malaysia is dropping a plan for a high-speed rail link between its capital, Kuala Lumpur, and Singapore, and will talk with its southern neighbour about the agreement to build it, Malaysia’s prime minister said in an interview published on Monday. Dr Mahathir Mohamad, the 92-year-old who triumphed over scandal-plagued Najib Razak in a general election this month, has made it a priority to cut the national debt and pledged to review major projects agreed by the previous government.
https://www.businesstimes.com.sg/government-economy/malaysia-drops-high-speed-rail-project
https://www.straitstimes.com/asia/se-asia/high-speed-rail-to-be-dropped-to-cut-debt-says-mahathir
https://www.channelnewsasia.com/news/singapore/mahathir-mohamad-confirms-malaysia-pulls-out-of-kl-singapore-hsr-10284144

High-speed rail loss ‘a setback, not knockout blow to Jurong’
The Ministry of Transport (MOT) issued a statement late on Monday to say that Singapore has yet to receive official word from Malaysia regarding the supposed cancellation of the Kuala Lumpur-Singapore high-speed rail (HSR). The MOT, indicating that it would wait for official word from Malaysia before proceeding, said in its statement: “We had agreed to proceed with the HSR project based on mutual benefits and obligations set out in the HSR bilateral agreement.”
https://www.businesstimes.com.sg/government-economy/high-speed-rail-loss-a-setback-not-knockout-blow-to-jurong

Jurong Lake District may be affected by scrapping of HSR
The development of the Jurong Lake District may be adversely affected, now that the Singapore-Kuala Lumpur High-Speed Rail (HSR) is unlikely to happen, say observers. Malaysia’s Prime Minister Mahathir Mohamad said yesterday that Malaysia is pulling out of the HSR deal with Singapore. He had labelled it an “unnecessary project” which would cost “RM110 billion (S$37 billion) and will not earn us a single cent”.
https://www.straitstimes.com/singapore/jurong-lake-district-may-be-affected-by-scrapping-of-hsr
https://www.todayonline.com/singapore/canning-high-speed-rail-project-could-stunt-jurong-property-prices-business-growth
https://www.todayonline.com/singapore/jurong-east-residents-businesses-concerned-impact-hsr-no-go

KL-Singapore HSR: What you need to know
Singapore: Construction for the Kuala Lumpur-Singapore high-speed rail (HSR) line was due to start this year, but the project is set to be derailed, after Malaysia announced on Monday (May 28) that it will be scrapping it. Here’s what you need to know:
https://www.channelnewsasia.com/news/singapore/kuala-lumpur-singapore-hsr-rail-link-what-to-know-10284406

Singapore Economy

Singapore is 5th on Global Cities Outlook
Singapore has risen six spots to rank fifth in the world on an index that tracks the outlook for global cities. The index, known as the AT Kearney Global Cities Outlook 2018, assesses cities across the world based on a city’s potential. This is judged on four parameters: personal well-being, economics, innovation and governance. All four criteria are given equal weightages of 25 per cent each.
https://www.businesstimes.com.sg/government-economy/singapore-ranks-fifth-on-global-cities-outlook-index

Singapore Real Estate

Completed condo, private apartment prices slip 0.3% in April from March: NUS index
Prices of completed private apartments and condominiums in Singapore dipped 0.3 per cent in April from the previous month. This is according to the National University of Singapore’s (NUS) flash estimates for its Singapore Residential Price Index (SRPI) released on Monday.
https://www.businesstimes.com.sg/real-estate/completed-condo-private-apartment-prices-slip-03-in-april-from-march-nus-index-0
https://www.straitstimes.com/business/property/completed-condo-private-apartment-prices-slip-03

St Thomas Walk property in District 9 up for sale for S$68m
A freehold residential redevelopment site at St Thomas Walk has been put up for sale by a single family for S$68 million. The asking price reflects a land rate of S$2,190 per square foot per plot ratio (psf ppr) including an estimated development charge of S$10.56 million to intensify to plot ratio 2.8, said its marketing agent Edmund Tie & Company on Monday.
https://www.businesstimes.com.sg/real-estate/st-thomas-walk-property-in-district-9-up-for-sale-for-s68m
https://www.straitstimes.com/business/property/st-thomas-walk-property-owned-by-one-family-on-sale-for-68m

Kim Keat Beacon top draw in May BTO launch
A Build-To-Order (BTO) project in Toa Payoh drew the most applications in the latest sale of new flats by the Housing Board (HDB), with this month’s launch featuring initiatives to help young couples get their first home quicker. There were almost 2,400 applicants for 542 three-and four-room flats in Kim Keat Beacon as of 5pm yesterday. Applications were due to close at midnight.
https://www.straitstimes.com/singapore/kim-keat-beacon-top-draw-in-may-bto-launch

Commuters hope Singapore-JB MRT link gets go-ahead
Malaysians who commute to Singapore daily hope the plan to build a cross-border MRT line will stay on track under the new government led by Prime Minister Mahathir Mohamad. They say the Rapid Transit System (RTS) Link, a 4km line connecting Bukit Chagar station in Johor Baru to Woodlands North, will make travel more convenient and faster.
https://www.straitstimes.com/singapore/transport/commuters-hope-spore-jb-mrt-link-gets-go-ahead

Companies’ Brief

First Sponsor unit sells part of Chengdu mixed-used project for S$97.5m
Mainboard-listed First Sponsor Group’s unit Chengdu Gaeronic Real Estate Co is selling parts of a mixed-used residential and commercial project, Chengdu Cityspring, for 465.0 million yuan (about S$97.5 million). The buyer is Chengdu-based hotel, real estate and finance company Minyoun Industrial Group Corporation.
https://www.businesstimes.com.sg/companies-markets/first-sponsor-unit-sells-part-of-chengdu-mixed-used-project-for-s975m
https://www.straitstimes.com/business/companies-markets/first-sponsor-unit-sells-part-of-chengdu-mixed-used-project-for-s975m

Manulife US Reit opens 22-for-100 preferential offering until June 11
Manulife US Real Estate Investment Trust (Reit) has opened a preferential offering of 22 new units for every 100 held, and will accept subscriptions until the business close of June 11. Unitholders who subscribe through the acceptance form and application form for excess new units have until 5pm on June 11 to submit their applications. Those who subscribe through ATMs have until 9.30pm the same day. The new units are expected to begin trading on June 20.
https://www.businesstimes.com.sg/companies-markets/manulife-us-reit-opens-22-for-100-preferential-offering-until-june-11
https://www.straitstimes.com/business/companies-markets/manulife-us-reit-opens-22-for-100-preferential-offering-until-june-11

Yoma Strategic Q4 profit slides 85.5% to S$3.5m; brings hot pot chain to Myanmar
Yoma Strategic Holding’s fiscal fourth-quarter profit retreated 85.5 per cent to S$3.5 million, compared to S$24.08 million a year ago. This came on the back of a 48.2 per cent drop in revenue to S$25.1 million from S$48.4 million a year ago, impacted by reduced income generated from the sale of residences and land development rights (LDRs), which fell the most in the company’s breakdown of revenue.
https://www.businesstimes.com.sg/companies-markets/yoma-strategic-q4-profit-slides-855-to-s35m-brings-hot-pot-chain-to-myanmar
https://www.straitstimes.com/business/companies-markets/yoma-strategic-q4-profit-slides-855-to-s35m-brings-hot-pot-chain-to

Pacific Star Development riding on Asean’s growth potential
As it wraps up its current mixed-use projects in Iskandar and Bangkok, Pacific Star Development (PSD) is sparing no effort to make itself known in the Asean market for its upper middle to high-end mixed-use projects. The Catalist-listed developer is currently studying opportunities to partner Singapore developers to bid for sites either through government land sale (GLS) sites or en blocs.
https://www.businesstimes.com.sg/real-estate/pacific-star-development-riding-on-aseans-growth-potential

SLB Development builds on property market upswing
Property and construction specialist Matthew Ong has a penchant for all forms of real estate – be it land, buildings or architecture. The executive director and chief executive officer of SGX-listed SLB Development Ltd flexes his creative muscles by tinkering with colourful, plastic bricks to construct models or recreate iconic landmarks, such as the Sydney Opera House and Shanghai’s Oriental Pearl Tower.
https://www.businesstimes.com.sg/companies-markets/slb-development-builds-on-property-market-upswing
https://www.straitstimes.com/business/companies-markets/slb-development-builds-on-property-market-upswing

Keppel eyes S$114m gain from sale of 51% stake in Beijing prime commercial site
Keppel Corp could book a S$114 million gain after it sells a 51 per cent stake in a prime commercial site in the Chaoyang district of Beijing for US$297.9 million, the conglomerate announced on Monday. Keppel Land China, through a subsidiary, has granted CBD Aether Center an option to buy its 51 per cent stake in the holding company of Beijing Aether Property Development, which owns and is developing the site. Details about the identity of the buyer were not disclosed because of confidentiality reasons.
https://www.businesstimes.com.sg/companies-markets/keppel-eyes-s114m-gain-from-sale-of-51-stake-in-beijing-prime-commercial-site
https://www.straitstimes.com/business/companies-markets/keppel-corp-eyes-114m-gain-in-sale-of-beijing-site-stake

Far East Hospitality to get first hotel in Japan
Hotel operator Far East Hospitality Holdings will get its first company-branded hotel in Japan with a joint venture to purchase a hotel project in Tokyo. It is teaming up with a Far East Organisation unit Boo Han Holdings to buy a 2,542 sq m plot of land and a yet-unconstructed hotel in Tokyo, Far East Orchard – which owns 70 per cent of Far East Hospitality – announced on Monday.
https://www.businesstimes.com.sg/companies-markets/far-east-hospitality-to-get-first-hotel-in-japan

CDL announces two new senior appointments
City Developments Limited (CDL) announced two new senior appointments on Monday as part of a new organisational structure for the property giant. Leading the asset management division will be Yvonne Ong, who will begin her role as chief executive officer for commercial with effect from June 6. This division will comprise departments involved in investment properties, namely leasing, property and facilities management and customer service.
https://www.businesstimes.com.sg/real-estate/cdl-announces-two-new-senior-appointments
https://www.straitstimes.com/business/companies-markets/cdl-makes-two-senior-appointments-as-part-of-organisation-revamp-0

Accordia Golf Trust’s Q4 DPU plunges by 62%, with manager blaming bad weather
Accordia Golf Trust’s fourth-quarter distribution per unit (DPU) has slumped on wider losses and weaker income, according to unaudited financial statements on Monday evening. DPU tumbled to 0.45 yen (0.56 Singapore cent) in the three months to March 31, down by 62 per cent from 1.18 yen in the same period the year before. Distributable income for the period was slashed from 1.3 billion yen to just 493 million yen.
https://www.businesstimes.com.sg/companies-markets/accordia-golf-trusts-q4-dpu-plunges-by-62-with-manager-blaming-bad-weather

Blackstone bids US$2.38b for office tower fund Investa
[Sydney] Blackstone Group LP offered A$3.14 billion (S$3.19 billion) for Investa Office Fund in an attempt to land one of Australia’s most pursued property companies and dozens of office buildings across the country. The New York-based buyout company offered A$5.25 in cash for each share of the real estate investment trust, 13 per cent more than Friday’s closing price, Investa said in a statement Monday. Investa’s directors plan to unanimously recommend investors vote for the deal unless there’s a better offer.
https://www.businesstimes.com.sg/real-estate/blackstone-bids-us238b-for-office-tower-fund-investa

Views, Reviews, Forum & Others

No new entrant has disrupted real estate industry
Real estate crowdfunding came into existence after the Global Financial Crisis. Several high-profile startups got started around 2010-2012, spurred in part by the Jobs Act which streamlined the process of raising capital from individual investors. As the Internet transformed one industry after another, the real estate investment space appeared stodgy and overdue for disruption. This article outlines some lessons we have learnt from the successes and failures in this space so far, and a few predictions for the future.
https://www.businesstimes.com.sg/opinion/no-new-entrant-has-disrupted-real-estate-industry

Driving the future of Singapore’s urban mobility with open data
Self-driving vehicles may become a norm sooner than expected. This is especially so as Singapore identified the development and deployment of autonomous vehicles as one of its key focus areas for the recently launched Asean Smart Cities Network at the Asean Summit 2018.
https://www.businesstimes.com.sg/transport/driving-the-future-of-singapores-urban-mobility-with-open-data

An opportune time for a PropNex listing
Probably in a few months’ time, equity investors will have more options to ride the upswing in Singapore’s residential market besides developer stocks and APAC Realty, which owns Singapore’s second-largest property agency ERA Realty. PropNex Realty, Singapore’s largest homegrown property agency, is preparing for a public listing on Singapore’s mainboard in the third quarter of this year. It is already talking to potential cornerstone investors, but has not obtained eligibility-to-list from the Singapore Exchange yet.
https://www.businesstimes.com.sg/companies-markets/an-opportune-time-for-a-propnex-listing