The Leading Professional and Representative Body for the Real Estate Industry

The Leading Professional and Representative Body for the Real Estate Industry



Daily News – 3rd October 2017

Singapore Economy

S’pore industrial parks abroad help local SMEs in global drive
Some 240 Singapore companies, 70 per cent of them small and medium enterprises, have invested in Singapore industrial parks set up in emerging growth economies like China, India and Vietnam.  Minister for Trade and Industry (Industry) S Iswaran told Parliament on Monday that such government-to-government projects have played “an enabling” role in pushing Singapore firms to expand overseas.

Factory activity chalks up another high in September
Factory activity continued to expand in September to hit a new high for the 13th straight month on the back of stronger growth from the electronics sector.  The robust performance came on the back of a rise in manufacturing employment after four months of contraction.

Singapore must be place where innovation can thrive: Minister
On a recent visit to a polytechnic, Minister for Education (Higher Education and Skills) Ong Ye Kung was shown a student’s business proposal for shared taxi services.  The project, completed years before ride-hailing app Uber became popular, showed him that Singaporeans were capable of great ideas but also that ideas do not become businesses on their own.

Singapore Real Estate

First price rise in four years backs talk of property rebound
Third quarter flash estimates for private home prices have showed the first uptick after four years – 15 straight quarters – of decline.  The private residential property index of the Urban Redevelopment Authority (URA) rose 0.5 per cent in Q3, compared to a 0.1 per cent dip in Q2. The index had fallen more than 11 per cent since Q3 2013.

0.6% drop in Q3 HDB resale price index surprises analysts
The Housing & Development Board’s (HDB) flash estimates for the third quarter surprised some consultants with a resale price dip of 0.6 per cent over the second quarter.  This follows quarter-on-quarter declines of 0.1 per cent in Q2 this year and 0.5 per cent in Q1.  Since Q4 last year, the HDB resale price index has shed 1.3 per cent. The third quarter’s decline is the biggest since Q1 2015, when the index shed one per cent.

Worst over in Singapore residential market, but too early to call rebound?
Preliminary data suggests that the worst may be over for Singapore’s residential property market, but more data might be needed to forecast a rebound.

Tide has turned for office market, say analysts
The bumper $1.622 billion bid for a Beach Road site last week has sparked renewed interest in a commercial property market already bubbling away after the $2.09 billion Asia Square Tower 2 sale.  The word “bullish” has been on the lips of industry watchers predicting an office rental recovery as the supply of new completions dwindles.

Redevelopment of Lor Buangkok kampong likely ‘several decades later’
The last remaining kampong on mainland Singapore, Kampong Lorong Buangkok, is likely to be redeveloped only “several decades later”, Second Minister for National Development Desmond Lee said on Monday (Oct 2).

New law to shield buildings, key installations from attacks
Owners of strategic buildings will be required to work enhanced security measures, like high-tech video surveillance, into the design of their property, under a new law passed by Parliament yesterday.  The Infrastructure Protection Bill, which establishes a “clear regulatory framework” for shieldingsuch buildings, is part of Singapore’s comprehensive strategy to fight terror.

Property tax law amended to boost Smart Nation move
Parliament yesterday passed changes to the law to allow more people to get property tax notices digitally. This is part of Singapore’s move to becoming a Smart Nation, Senior Minister of State for Finance and Law Indranee Rajah told MPs.  Existing regulations require taxpayers to explicitly consent before the Comptroller of Property Tax can issue them with digital tax notices instead of hardcopy notices.

Companies’ Brief

Koh Brothers Eco unit wins S$225m Circle Line 6 contract
Koh Brothers Eco Engineering, through a subsidiary, has won a S$225.4 million contract relating to the Circle Line 6 (CCL6).  CCL6 is a four-kilometre MRT stretch with three stations that will close the loop for the Circle Line by connecting the Harbourfront and Marina Bay stations.

Roxy-Pacific to scoop up more residential sites in Guillemard Lane for S$33.5m
Roxy-Pacific Holdings is once again muscling up its landbank in Singapore, this time with plans to acquire more freehold residential sites at Guillemard Lane for S$33.5 million.  The company’s associate RH Guillemard has entered into agreements to acquire the plots situated at 2 and 6 Guillemard Lane, which span a total land area of 14,030 sq ft.  Under the 2014 Master Plan, the site is zoned for residential use with an existing gross plot ratio of 2.8, said the company in an announcement.

Lion Global, Phillip Capital offer first S-Reit ETF
As passive investing gains traction among investors, the first exchange traded fund (ETF) dedicated to Singapore Real Estate Investment Trusts (S-Reits) is making its market debut, formed via a surprising partnership that seems like a romance building up between two business rivals.  The Lion-Phillip S-Reit ETF, which will be listed on the Singapore Exchange at the end of October, was launched on Monday by asset management company and member of OCBC Bank, Lion Global Investors Limited, and homegrown Asian fund management company Phillip Capital Management (S) Ltd.

Frasers Centrepoint has enough acceptances to redeem S$125 million of bonds
Frasers Centrepoint Ltd (FCL) has received enough acceptances from holders of S$125 million worth of bonds to carry out an early redemption exercise following a bondholders’ meeting, the property developer announced on Monday.  FCL offered to redeem its S$75 million of 3.7 per cent notes due 2019 at 102.85 per cent of the principal amount, and to redeem its S$50 million of 3.8 per cent notes due 2022 at 104.6 per cent of the principal amount.

Frasers Centrepoint takes over all of UK unit for £5.6m and debt
Property developer Frasers Centrepoint Ltd (FCL) is taking full ownership of 75 per cent subsidiary Frasers (UK) for £5.6 million (S$9.9 million) in cash and assumption of debt.  The existing joint venture agreement with partner SQ International will be terminated following completion.

GLP to buy European logistics facilities firm Gazeley for $3.8b
Global Logistic Properties (GLP) has entered into an agreement to acquire Gazeley for approximately €2.4 billion (S$3.84 billion).  Gazeley develops and operates logistics facilities in Europe.  GLP co-founder and chief executive Ming Z. Mei said: “We have been looking to expand to Europe and this portfolio presents an attractive entry point, given the quality and location of the assets.

HK company buys remaining 50% Golden Village cinema stake
Hong Kong’s Orange Sky Golden Harvest Entertainment (Holdings) (OSGH) will buy the remaining 50 per cent of the Golden Village cinema business from Australia’s Village Roadshow.  The Australian company will net A$165 million (S$175 million) off the deal, Village Roadshow said yesterday, realising a net profit after tax of about A$150 million, Reuters said.

KLW’s S$7m claim survives legal appeal
KLW Holdings’ awarded claim of S$7 million plus fees and interest against an investor and his company has survived an appeal in the Singapore courts, KLW announced on Monday.  A summary judgment in October 2016 ordered investor Michael Chan Ewe Teik and his company, Straitsworld Advisory, to pay KLW S$7 million, interest at 5.33 per cent as of Nov 21, 2015, and costs of S$10,000 excluding disbursements. As a result of the latest dismissal by the Court of Appeal, Mr Chan and Straitsworld now owe KLW an additional S$20,000 in costs.

HNA’s offer for CWT ‘fair and reasonable
Chinese conglomerate HNA Holding Group’s S$2.33-a-share offer for logistics firm CWT Limited is fair and reasonable, said Ernst & Young Corporate Finance Pte Ltd, the independent financial adviser to the deal.  This is considering the premiums implied by the offer price, share liquidity, price performance against the Singapore market, and valuation measures of the company among other things.

Views, Reviews & Forum

Proptech’ takes buildings beyond bricks and mortar
Even the building and construction sector – as bricks-and-mortar as you can get – has not been immune to the forces of digital transformation, with more industry players taking advantage of technology to improve how things are done.

China likely to transit to consumption-led economy: Experts
Long-term drivers of growth in Asia remain favourable while China will likely transit from an investment-led to a consumption-led economy, a change necessary for sustainable growth.  These are some experts’ views that emerged from GIC Insights, an annual conference attended by more than 110 prominent global business leaders to deliberate long-term issues relevant to the international business and investment community.

Global Economy & Global Real Estate

US factory growth fastest in 13 years; slowdown in UK manufacturing

Australia home prices see slower rise as Sydney suffers rare fall

Australia new home sales rebound in August

Curvy building revitalises downtown Sao Paulo

China property stocks dive as housing curbs kick in

Japan manufacturers’ confidence soars

Is there a Toys ‘R’ Us lurking in Asia?

Additional Articles of Interest – Local & Overseas Real Estate

Local & Overseas Real Estate – Full Article

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