DAILY NEWS

Daily News – 3th, 4th and 5th Aug 2019

Singapore Real Estate

US fund manager in exclusive due diligence for Bugis Junction Towers
A sale may be in the works for Bugis Junction Towers. The Business Times understands that Angelo Gordon, a US-headquartered global alternative investment manager, is doing exclusive due diligence with a view to buy the 15-storey office block above the Bugis MRT Station.
https://www.businesstimes.com.sg/companies-markets/us-fund-manager-in-exclusive-due-diligence-for-bugis-junction-towers

Belmont Road GCB relaunched for sale at lower guide price
The sprawling Good Class Bungalow (GCB) at 80 Belmont Road owned by The Stratech Group’s Chew family has been relaunched for sale by private treaty after it failed to sell at an auction. It now has a lower asking price of S$40.8 million. The freehold property was first put up for sale during an auction held on July 23 at Amara Singapore hotel, with a S$42 million guide price.
https://www.businesstimes.com.sg/real-estate/belmont-road-gcb-relaunched-for-sale-at-lower-guide-price
https://www.straitstimes.com/business/property/belmont-road-good-class-bungalow-up-for-sale-again-with-lower-408m-asking-price

Nouvel 18’s like exclusive honey to China bees
Mainland Chinese buyers continue to mop up luxe condo units in Singapore. At the completed freehold Nouvel 18 project in the posh Ardmore Park area, they are the predominant nationality among the foreign buyers who have picked up about 90 per cent of the 17 units that have been sold since sales began on July 18.
https://www.businesstimes.com.sg/real-estate/nouvel-18s-like-exclusive-honey-to-china-bees

Singapore Reits could see more growth on likely change to debt limit
Investors in Singapore’s much-loved real estate investment trusts (Reits) may soon have another reason to cheer, as the central bank considers looser debt rules that could spur more acquisitions by property managers. The Monetary Authority of Singapore (MAS) ended a one-month consultation period on Thursday that looked into increasing the amount of debt that Reits can take on to 50 per cent from 45 per…
https://www.businesstimes.com.sg/real-estate/singapore-reits-could-see-more-growth-on-likely-change-to-debt-limit

Singapore Economy

Singapore PMI contracts for third month in a row
Manufacturing sentiment remained gloomy in July, with concerns like the escalating US-China trade war weighing on the sector. The Purchasing Managers’ Index (PMI) – a key barometer of activity among manufacturers – came in at 49.8 last month, the third straight month of contraction, though it was up 0.2 point from June.
https://www.straitstimes.com/business/economy/spore-pmi-contracts-for-third-month-in-a-row
https://www.businesstimes.com.sg/infographics/singapore-factory-output-in-contraction-mode-for-3rd-month

Take long-term view in economic strategies: Chan Chun Sing
Singapore has to adopt a targeted and long-term perspective in its economic strategies, even as it tackles short-term headwinds posed by the challenging global environment, said Trade and Industry Minister Chan Chun Sing. The Government is monitoring developments closely as Singapore’s economic growth slows, and stands ready to support Singaporeans – particularly the most vulnerable – should conditions worsen…
https://www.straitstimes.com/business/economy/take-long-term-view-in-economic-strategies-chan
https://www.straitstimes.com/business/spore-has-to-renew-economy-train-people-to-stay-ahead-chan
https://www.todayonline.com/singapore/singapore-strategy-economic-challenges-help-firms-workers-adjust-chan-chun-sing

Odds of more severe regional downturn raised significantly
United States President Donald Trump’s surprise decision to escalate the ongoing trade war with tariffs on another US$300 billion (S$413 billion) of Chinese goods sent stock markets from Asia to Europe into a tailspin, and raised significantly the odds of a more severe downturn for the region. Asian markets, which have yet to recover from Thursday’s sell-off due to the US central bank shunning a lengthy easing cycle…
https://www.straitstimes.com/business/economy/odds-of-more-severe-regional-downturn-raised-significantly

Companies’ Brief

Keppel expands data centre footprint in Sydney
The Alpha Data Centre Fund, managed by Keppel Capital’s wholly owned unit Alpha Investment Partners, has acquired a 3,840 square metre plot of freehold land in Gore Hill Technology Park to develop a data centre in Sydney, Australia. Keppel Capital is the asset management arm of the Keppel group.
https://www.businesstimes.com.sg/companies-markets/keppel-expands-data-centre-footprint-in-sydney
https://www.straitstimes.com/business/companies-markets/keppel-expands-data-centre-footprint-in-sydney

Chip Eng Seng to develop latest Adelaide site as Hyatt Regency hotel
Mainboard-listed developer Chip Eng Seng Corp, which last year bought a site in Adelaide from an associate of its chief executive, said on Friday that it will build a Hyatt Regency hotel on the plot. The 1,283 sq m freehold parcel at 51, Pirie Street – in the central business district – will be turned into a 295-room hotel spanning 27 storeys. It is expected to open in early 2023.
https://www.businesstimes.com.sg/companies-markets/chip-eng-seng-to-develop-latest-adelaide-site-as-hyatt-regency-hotel

M&C posts 5% rise in Q2 net profit to £21m
Millennium & Copthorne Hotels (M&C) saw its net profit rise 5 per cent year-on-year to £21 million (S$35 million) for the second quarter ended June 30. Revenue dipped 1.2 per cent to £257 million, while earnings per share worked out to 6.4 pence, up from 6.2 pence a year ago.
https://www.businesstimes.com.sg/companies-markets/mc-posts-5-rise-in-q2-net-profit-to-%C2%A321m

Genting Singapore net profit falls 5% in Q2
Genting Singapore, which owns Resorts World Sentosa (RWS), has posted a net profit of S$168.4 million for the second quarter, down 5 per cent from the same period a year earlier. The decline might have been sharper, if not for the high rolling win percentage in the VIP rolling business that provided some buffer against the slowing economy.
https://www.businesstimes.com.sg/companies-markets/genting-singapore-net-profit-falls-5-in-q2

Views, Reviews, Forum & Others

Fault lines: A look at defect resolution in condos
Cracks and leaks, rotting timber, foul smells, flooding in public areas – these are a few of the reported defects that have surfaced at private condos over the decades. With the allegations come accusations, which inevitably put developers, main contractors and homeowners at loggerheads. Most recently, authorities blocked Chinese developer Kingsford Huray Development from selling its Normanton Park…
https://www.businesstimes.com.sg/brunch/fault-lines-a-look-at-defect-resolution-in-condos

South-east Asia: A beacon of opportunity
Global market volatility is set to rise in the months ahead. For investors concerned about market uncertainty, South-east Asia could provide a beacon of opportunity, given its domestic orientation and long-term growth potential. The region has been fairly resilient in recent years. Domestic consumption has been the main driver of growth for some of the bigger economies.
https://www.straitstimes.com/business/invest/south-east-asia-a-beacon-of-opportunity