DAILY NEWS

Daily News – 3 Oct 2019

Singapore Real Estate

Still room for co-working spaces even as WeWork IPO hits the skids, say analysts
WeWork’s stalled initial public offering (IPO) has flagged risks in the co-working sector, though market watchers say there is still room for co-working spaces in Singapore. Hefty losses at the co-working giant, which failed to impress investors as it sought a listing, could prompt investors and landlords to be more cautious about the co-working segment from hereon.
https://www.businesstimes.com.sg/companies-markets/still-room-for-co-working-spaces-even-as-wework-ipo-hits-the-skids-say-analysts

WeWork concerns seeping into Singapore office Reits: Credit Suisse
[Singapore] Concerns about co-working giant WeWork may amplify the negative impact of a weakening economy on Singapore’s commercial real estate investment trusts (Reits), according to Credit Suisse Group. Poor sentiment on the company could further damp demand for co-working spaces amid slowing gross domestic product growth, hurting office Reits, analysts led by Nicholas Teh wrote in a report.
https://www.businesstimes.com.sg/companies-markets/wework-concerns-seeping-into-singapore-office-reits-credit-suisse
https://www.straitstimes.com/business/companies-markets/wework-concerns-seeping-into-singapores-office-reits

Allgreen to start preview for Royalgreen on Oct 5
Allgreen Properties Limited – the real estate arm of the Kuok Group in Singapore – will start its preview for Royalgreen condominium on Saturday. The 285-unit Royalgreen – a five-storey development over eight blocks – is a freehold development in the Bukit Timah residential enclave.
https://www.businesstimes.com.sg/real-estate/allgreen-to-start-preview-for-royalgreen-on-oct-5

Companies’ Brief

Lendlease Global Reit achieves 4.5% premium on trading debut
Lendlease Global Commercial Reit (real estate investment trust) on Wednesday ended its first day of trading on the mainboard at S$0.92, 4.5 per cent above its initial public offering (IPO) price of S$0.88. From the start of trading at 2pm till market close, the units traded within a band of S$0.915 to S$0.945.
https://www.businesstimes.com.sg/companies-markets/lendlease-global-reit-achieves-45-premium-on-trading-debut
https://www.straitstimes.com/business/companies-markets/lendlease-global-reit-up-45-on-ipo-price-in-debut

Views, Reviews, Forum & Others

A recession is never a necessity for economies
I recently received an email from my friend Mark Thoma of the University of Oregon, asking if I had noticed an increase in commentaries suggesting that a recession would be a good and healthy purge for the economy (or something along those lines). In fact, I, too, have noticed more commentators expressing the view that “recessions, painful as they are, are a necessary growth input”. I am rather surprised by it.
https://www.businesstimes.com.sg/opinion/a-recession-is-never-a-necessity-for-economies

Home Front: Since GE2011, have HDB issues been resolved?
It is a rite of passage for most Singaporeans. No, not getting married, though that is closely tied to it – but owning their first HDB home. And that has just become easier because of measures announced by National Development Minister Lawrence Wong on Sept 10.
https://www.straitstimes.com/singapore/have-hdb-problems-been-resolved

Explainer: WeWork — the rise and fall of another tech darling
Singapore — Once valued at US$47 billion (S$65 billion), co-working space operator WeWork is now in the doldrums. Its parent We Company lost US$1.9 billion last year. Founder and chief executive officer Adam Neumann has been ousted and the firm has also shelved its Initial Public Offering (IPO) plans.
https://www.todayonline.com/singapore/explainer-how-did-wework-end-not-working