2016 investment commitments slip to S$9.4b but still on target
Investment commitments in Singapore last year were on target – though they fell from 2015 and were the lowest in recent years, said the Economic Development Board (EDB) on Thursday. And despite economic uncertainties, the investment-promotion agency expects to draw a “comparable” S$8 billion to S$10 billion in fixed-asset investments (FAI) again this year. It said in a statement that the outlook predicts “steady growth in Asia and Singapore’s resilience as a strategic location to drive growth and innovation”. EDB chairman Beh Swan Gin, speaking at the agency’s annual “Year in Review” press conference, said: “We will continue to seize economic opportunities brought about by growth sectors, including advanced manufacturing, hub services and digitalisation and help Singaporeans take up new jobs with skills upgrading programmes.”
Observers expect CFE report to be ‘big picture’ of economy’s revamp
A forthcoming high-level report on how Singapore can restructure its economy will be the fourth such document in three decades – but economists say that this time, it will be different. In fact, they expect the Committee on the Future Economy (CFE) report, due in the coming days, to be somewhat of a paradigm shift – easy on the details, but big on ideas on how everyone can work together to take part in Singapore’s future growth. This different approach is needed because, unlike the previous reports that were drafted in response to economic recessions, the CFE report will come at a time when things are still chugging along – just not as fast as before.
Factory activity up for 5th straight month in January
Factory activity rose for the fifth straight month in January, stoking hopes that the manufacturing rebound is gaining momentum after being stuck in a slump for more than a year. The Purchasing Managers’ Index (PMI), an early indicator of manufacturing activity, posted a reading of 51 last month, up from December’s 50.6 reading. A reading below 50 indicates contraction, while one above 50 points to growth.
Singapore Real Estate
Reits must be consistent in how they compute rental reversions
The recent disclosures by Keppel Reit revealing inconsistencies in how it computed rental reversions last year have raised the question of whether there is a need for a prescribed standard for the industry. Currently, there is no uniform way of calculating rental reversions – an industry jargon for change in rents upon lease renewal – among real estate investment trusts (Reits). It is not a mandatory disclosure requirement to begin with. But with rental reversion being one of the key indicators that investors look at to assess the health of leasing activities of Reits, being consistent and transparent in the calculations is necessary, if this information is to be presented at all.
$63m a year in new grants to improve HDB lifts
Town councils will get an extra $600 a year for each lift they own to “help them cope with higher lift-related servicing and maintenance costs”, the National Development Ministry said yesterday. They will also receive half the amount they put into the Lift Replacement Fund for lifts around 28 years and older. The two new grants will cost the ministry at least $63 million a year and come amid safety worries after a spate of breakdowns.
CityDev buys south London site for £58m
A unit of property developer City Developments Limited (CDL) has signed an agreement to buy a freehold site in south London for £58 million or about S$103.2 million, the group said in a press statement on Thursday. It said its wholly owned subsidiary Trentworth Properties is buying the 0.65 hectare Ransomes Wharf site, in Battersea, from Curatus Trust, and plans to turn the land into a luxury residential project with an estimated gross development value of £222 million. The site is west of Albert Bridge in Battersea’s creative quarter, on the south bank othe River Thames, and occupiers include Foster + Partners Architects, Royal College of Art and Vivienne Westwood, CDL said.
Sabana Reit to undergo strategic review by sponsor, manager
The sponsor and manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust will undertake a strategic review of the Reit, days after angry investors said that they are looking to throw out the manager over its lacklustre performance. In a release late on Thursday night, Reit sponsor Vibrant Group Limited and manager Sabana Real Estate Investment Management Pte Ltd said in a joint statement that the review includes the current shareholding structure and management of the manager. It will also look at Sabana Reit’s strategic direction and business.
Oxley acquires 25.5% interest in Pindan Capital Berry for A$3.8m
Oxley Holdings Limited has entered into a project development investment agreement to acquire a 25.5 per cent direct interest in Australian funds manager Pindan Capital Berry for A$3.825 million (S$4.136 million), the Singapore developer said in a release after market close on Thursday. This is 25.5 per cent of the total issued capital of PC Berry of A$15 million. The investment in PC Berry will be funded by internal resources, said Oxley. PC Berry had also secured a land sub-division development known as Huntingdale Park located on Hitchcock’s Lane in Berry, New South Wales, Australia, Oxley added.
King Wan wins S$18.3m worth of new M&E contracts
Mainboard-listed King Wan Corporation Limited, or King Wan, announced on Thursday that it has secured new mechanical and electrical (M&E) projects worth S$18.3 million in Singapore. Major projects secured include the supply of plumbing systems for condominium development GEM Residences, gas and temporary water supply systems for an eight-storey warehouse building with temporary workers’ dormitory at Buroh Lane in Jurong East and sanitary installation works at three runway operations at Singapore Changi Airport.
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