DAILY NEWS

Daily News – 5th October 2018

Singapore Economy

Singapore companies are on a global acquisition spree, Bloomberg data show
Singapore Inc is stirring, with companies from real estate to engineering becoming bolder in their hunt for acquisitions abroad. Companies in the city-state announced around US$91 billion of overseas deals this year through September, more than double the US$41.9 billion of transactions for the same period of 2017, data compiled by Bloomberg show. Temasek Holdings and GIC still loom large, but increasingly others are inking their biggest-ever transactions to put Singapore on the world stage.
https://www.businesstimes.com.sg/government-economy/singapore-companies-are-on-a-global-acquisition-spree-bloomberg-data-show
https://www.straitstimes.com/business/economy/singapore-companies-on-global-acquisition-spree-value-of-overseas-deals-more-than
https://www.todayonline.com/singapore/spore-companies-are-major-push-global-acquisitions-bloomberg-data

Singapore Real Estate

Big-ticket property deals fall 42% in Q3 after cooling measures
The tally of big-ticket property transactions of S$10 million and above across all sectors tumbled 42 per cent to S$6.5 billion in the third quarter from S$11.2 billion in Q2 – after the July property curbs put the brakes on residential collective sales. However, a pick-up in activity for the commercial and industrial property segments helped to mitigate the drop in the residential sector, said Cushman & Wakefield Singapore senior director of research Christine Li.
https://www.businesstimes.com.sg/real-estate/big-ticket-property-deals-fall-42-in-q3-after-cooling-measures

Cairnhill Mansions en bloc: It’s a ‘go’
The S$362 million collective sale of Cairnhill Mansions will proceed at that price, thanks to a settlement that gives the penthouse owner who objected to the sale an extra S$867,004.79. This sum is to be equally borne by the owners of the other units in the development, the High Court ordered on Thursday afternoon.
https://www.businesstimes.com.sg/real-estate/cairnhill-mansions-en-bloc-its-a-go

Amara to launch Newton boutique project at upwards of S$2,400 psf
Amara Holdings will launch its 10 Evelyn boutique development next weekend at upwards of S$2,400 psf, chief executive Albert Teo told The Business Times on Thursday. Located off Newton Road, the 56-unit freehold development will comprise mainly one bedders (46 sq m to 57 sq m) and two-bedroom units (68 sq m to 77 sq m), with four three-bedroom penthouses (114 sq m to 116 sq m). Pricing will start from S$1.2 million for the one-bedrooms.
https://www.businesstimes.com.sg/real-estate/amara-to-launch-newton-boutique-project-at-upwards-of-s2400-psf

HDB resale prices drop 0.7% in Sept; volume falls 3.9%
Housing Board resale prices dropped 0.7 per cent in September from August, and by 2.1 per cent compared to a year ago according to flash figures released by SRX Property on Thursday morning. August’s slight 0.1 per cent month-on-month gain in HDB resale prices was revised down to unchanged by the real estate portal.
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-drop-07-in-sept-volume-falls-39
https://www.businesstimes.com.sg/real-estate/hdb-resale-prices-drop-07-in-september-from-august-volume-falls-39-srx

Thomson View fails in fourth bid to sell en bloc
Thomson View condo has failed in its fourth attempt to launch a collective sale – just the latest in a growing list of projects that have been unable to secure the requisite 80 per cent approval rate to kick-start a sale. The 255-unit estate in Upper Thomson Road had raised the reserve price three times in the past year to $938 million, but still garnered backing from only 76 per cent of owners.
https://www.straitstimes.com/business/property/thomson-view-fails-in-fourth-bid-to-sell-en-bloc

Companies’ Brief

CapitaLand’s joint venture acquires co-working business
A joint venture between CapitaLand and The Work Project, known as The Work Project Kingdom (TWPK), has acquired Collective Works’ co-working business for an undisclosed amount. Co-working operator Collective Works was founded in 2012 and presently occupies 30,000 square feet across two locations at Capital Tower and 100 Cecil Street, with over 90 per cent occupancy across both centres. In March 2016, CapitaLand and Collective Works entered into a joint venture to set up Collective Works Capital Tower.
https://www.businesstimes.com.sg/companies-markets/capitalands-joint-venture-acquires-co-working-business
https://www.straitstimes.com/business/companies-markets/capitaland-joint-venture-acquires-collective-works
https://www.straitstimes.com/business/companies-markets/capitaland-joint-venture-buys-collective-works-co-working-business

Ascendas Reit completes £253.25m acquisition of 26 logistics properties in the UK
Ascendas Reit said on Thursday evening that it has completed its £253.25 million (S$451.67 million) acquisition of 26 logistics properties in the UK. Following the acquisition, each seller has entered into an asset and lease management agreement with Ascendas Management (UK), a wholly owned subsidiary of Ascendas Investment, to appoint Ascendas Management (UK) as the asset manager for a term of about four years till Sept 30, 2022.
https://www.businesstimes.com.sg/companies-markets/ascendas-reit-completes-%C2%A325325m-acquisition-of-26-logistics-properties-in-the-uk

Pacific Star Development’s liabilities rise S$S11.5m after audit of financial statements
Property group Pacific Star Development’s total liabilities have risen by S$11.5 million to S$146.2 million after an audit of its financial results for the 18-month period from Jan 1, 2017 to June 30, 2018, in relation to a purchase consideration for the completion of a reverse takeover exercise.
https://www.businesstimes.com.sg/companies-markets/pacific-star-developments-liabilities-rise-ss115m-after-audit-of-financial

OCBC aiming for encore performance by gem of a PE fund
A little-known, OCBC bank-backed private equity fund is on course to achieve its targeted internal rate of return (IRR) of 20 per cent – and the bank is aiming to start a second fund next year. The Lion-OCBC Capital Asia Fund I (LOCAF I) is a S$550-million fund launched in 2015. Targeted at high-growth small and medium enterprises in Asia, it has made some 10 investments to-date and is expected to be fully deployed by end of this year.
https://www.businesstimes.com.sg/startups/ocbc-aiming-for-encore-performance-by-gem-of-a-pe-fund

VIEWS, REVIEWS, FORUM & Others

Transition to cloud will improve govt service delivery
Slowly but surely, the contours of Singapore’s Smart Nation have emerged in recent years and given shape to what is undoubtedly a grand vision to turn the republic into a showcase for the smart use of technology to better the lives of citizens.
https://www.businesstimes.com.sg/opinion/transition-to-cloud-will-improve-govt-service-delivery

IT infrastructure is key to successful adoption of AI
Data is the building block that drives Artificial Intelligence (AI). Thus, the heart of AI’s success would be a solid data storage strategy commensurate with the burgeoning data growth. Yet, one in five IT decision-makers across Asia-Pacific are not currently ready to handle the volume and velocity of data that is coming their way. This finding is based on a study by Seagate, Data Pulse: Maximising the Potential of Artificial Intelligence, which surveyed 600 senior IT professionals in Australia, China, India, Singapore, South Korea and Taiwan.
https://www.businesstimes.com.sg/opinion/it-infrastructure-is-key-to-successful-adoption-of-ai

Digital technologies finally making possible financial inclusion in India
India has long pursued financial inclusion as a policy goal in the hope and expectation that it will open up opportunities to the poor to improve their livelihoods. In practice, this proved to be an uphill task because of a mismatch of incentives.
https://www.businesstimes.com.sg/opinion/digital-technologies-finally-making-possible-financial-inclusion-in-india