DAILY NEWS

Daily News – 03th July 2019

Singapore Real Estate

MAS seeks views on raising 45% leverage limits for S-Reits
In a move to enable Singapore real estate investment trusts (S-Reits) to better compete against private capital and foreign Reits when making real estate acquisitions, the Monetary Authority of Singapore (MAS) is considering raising their current leverage limit of 45 per cent. Leverage, defined as the debt-to-asset ratio, measures how well-capitalised a company is.
https://www.businesstimes.com.sg/companies-markets/mas-seeks-views-on-raising-45-leverage-limits-for-s-reits
https://www.straitstimes.com/business/mas-proposes-higher-leverage-limit-for-s-reits

Singapore Economy

Slow payments worsen for manufacturing sector in Q2
The manufacturing sector had the worst slow payments deterioration in the second quarter, suggesting that the manufacturing recession is starting to hurt local firms’ cash flow and profitability, economists said. The new findings come from a Singapore Commercial Credit Bureau (SCCB) report released on Tuesday. Among the five sectors, the manufacturing sector saw the largest increase in slow payments…
https://www.businesstimes.com.sg/government-economy/slow-payments-worsen-for-manufacturing-sector-in-q2

Companies’ Brief

CapitaLand to merge Ascott Reit, Ascendas unit to form Asia-Pac’s largest hospitality trust
CapitaLand will combine Ascott Residence Trust (Ascott Reit) and Ascendas Hospitality Trust (A-H Trust) to make the largest hospitality trust in the Asia Pacific and the eighth biggest globally, with a total asset value of S$7.6 billion. The combined entity will also be the seventh largest trust listed on the Singapore Exchange by asset value, both Reits said in a bourse filing on Wednesday.
https://www.businesstimes.com.sg/companies-markets/capitaland-to-merge-ascott-reit-ascendas-unit-to-form-asia-pacs-largest
https://www.straitstimes.com/business/companies-markets/capitaland-to-merge-ascott-reit-ascendas-unit-to-form-asia-pacifics

Frasers Logistics & Industrial Trust to buy 12 properties for A$644.7m from Frasers Property
Frasers Logistics & Industrial Trust (FLT) is planning to acquire interests in 12 freehold logistics properties – nine in Germany and three in Australia – from its sponsor Frasers Property for A$644.7 million (S$612.5 million). FLT, a real estate investment trust (Reit), entered into sale and purchase agreements with subsidiaries of Frasers Property for the proposed acquisition, FLT’s manager said on Wednesday morning.
https://www.businesstimes.com.sg/companies-markets/frasers-logistics-industrial-trust-to-buy-12-properties-for-a6447m-from-frasers
https://www.straitstimes.com/business/companies-markets/frasers-logistics-industrial-trust-to-buy-over-12-properties-for-6125m

Top 3 Singapore office Reits returned average 28% in H1: SGX
The top three performing Singapore real estate investment trusts (S-Reits) that own office assets here averaged a total return of 27.6 per cent in the first half of the year, bourse operator Singapore Exchange (SGX) said on Tuesday. Of the 34 Reits listed on the SGX, 10 are engaged in the acquisition, development, ownership, leasing, management and operation of office properties located in Asia-Pacific, Europe and the US.
https://www.businesstimes.com.sg/companies-markets/top-3-singapore-office-reits-returned-average-28-in-h1-sgx
https://www.straitstimes.com/business/companies-markets/top-3-performing-office-s-reits-average-276-return-in-1st-half

Ong Choon Fah is new chair of ULI Singapore
Ong Choon Fah, CEO and head of research & consulting at Edmund Tie & Company, has been appointed chair of Singapore for the Urban Land Institute (ULI). She will succeed Khoo Teng Chye, who held the position of ULI Singapore chairman for two years.
https://www.businesstimes.com.sg/real-estate/ong-choon-fah-is-new-chair-of-uli-singapore

Yanlord nets 1.43b yuan in pre-sales at launch of Yanlord Gardens
Real estate developer Yanlord Land Group has garnered around 1.43 billion yuan (S$0.28 billion) in pre-sales at the inaugural launch of its Yanlord Gardens development in Nantong. In a filing to the Singapore Exchange on Tuesday, Yanlord said it sold all 357 apartment units that were available for sale within the first day at an average selling price of approximately 28,570 yuan per square metre…
https://www.businesstimes.com.sg/companies-markets/yanlord-nets-143b-yuan-in-pre-sales-at-launch-of-yanlord-gardens

Views, Reviews, Forum & Others

Explainer: What could be driving private home prices to an estimated five-year high?
Singapore — Despite talk of a possible recession and the global economic uncertainty, private property prices in Singapore have hit a five-year high. This is based on second quarter flash estimates published on Monday (July 1) by the Urban Redevelopment Authority (URA).
https://www.todayonline.com/singapore/explainer-what-could-be-driving-private-home-prices-to-an-estimated-five-year-high