DAILY NEWS

Daily News – 6th July 2017

Singapore Economy

Cash is king for fund managers wary of valuations, global recovery
Ask Vinay Agarwal about valuations, and his brows furrow. “I’ve never held so much cash before, at 13 per cent,” said the Indian equities fund manager with First State Stewart Asia, who has US$650 million under his charge. Companies he likes are expensive. And while earnings have perked up, sales volumes for many companies have not, he said.
http://www.businesstimes.com.sg/government-economy/cash-is-king-for-fund-managers-wary-of-valuations-global-recovery

Singapore Real Estate

Good class bungalow market tepid
The market for good class bungalows (GCBs), the most prestigious segment of landed property in Singapore, is lukewarm although smaller bungalows in these GCB areas are catching on. The tepid market contrasts with another upmarket landed segment, Sentosa Cove. Sales at the exclusive waterfront precinct have jumped to seven this year, compared with just four for the same period last year. On the GCB front, a caveat was lodged on June 12 for the most expensive one sold this year.
http://www.straitstimes.com/business/property/good-class-bungalow-market-tepid?login=true

Private-sector building still facing rough times
The construction sector has been stuck in the doldrums amid mounting competition and a lacklustre property market – and company bosses here do not expect the gloom to lift any time soon. Major government projects, including new MRT lines and the expansion of Changi Airport, have helped bolster activity but private-sector building is likely to stay sluggish in the second half-year. The weak conditions will persist as contractors continue to grapple with restructuring and labour shortages, they told The Straits Times.
http://www.straitstimes.com/business/economy/private-sector-building-still-facing-rough-times

Century Square mall set for major facelift
Century Square, the oldest of three malls in the heart of Tampines, will shut in September for about a year for a major facelift. This will be its first big makeover since it opened in 1995, having undergone smaller-scale renovations in 2008. The works are set to be completed in the second quarter of next year.
http://www.todayonline.com/singapore/century-square-mall-set-major-facelift

Companies’ Brief

Singtel gets URA nod for hotel project on Hill Street site
Singtel has received provisional permission to redevelop its Hill Street property into a hotel, setting the stage for the sale of the asset. The property comprises three buildings – a black tower block that houses Singtel’s Central Exchange and two lower-rise buildings that are used as offices. It is made up of two adjacent rectangular land parcels – a 25,021 square foot site with 999-year leasehold tenure and a 14,717 sq ft plot with 99-year leasehold tenure starting from Jan 1, 1955, translating to a balance lease term of about 36 years.
http://www.businesstimes.com.sg/real-estate/singtel-gets-ura-nod-for-hotel-project-on-hill-street-site

Ascott quadrupling Quest stake to 80%
CapitaLand’s wholly owned serviced residence subsidiary, The Ascott, is acquiring an additional 60 per cent stake in Quest Apartment Hotels for A$180 million (S$191 million). Ascott said on Wednesday that this will increase its stake in Quest from 20 per cent to 80 per cent, making it the largest serviced residence provider in Australasia. The acquisition, which is expected to be completed in the third quarter of 2017, will boost Ascott’s portfolio by over 11,000 units to more than 67,000 units across 507 properties and 124 cities globally, Ascott added.
http://www.businesstimes.com.sg/companies-markets/ascott-quadrupling-quest-stake-to-80
http://www.straitstimes.com/business/property/ascott-buys-60-more-of-quest-for-191m

Frasers Logistics & Industrial Trust’s 78m new units commence trading; existing units to get early payouts
Seventy-eight million new units in Frasers Logistics and Industrial Trust (FLT) will start trading at 9 am on Thursday, and existing units are expected to get an early payout, said the trust manager on Thursday in a filing to Singapore Exchange. At S$1.01 apiece, the new units, issued in a private placement, will be used to partially fund the proposed acquisition of seven properties.
http://www.businesstimes.com.sg/companies-markets/frasers-logistics-industrial-trusts-78m-new-units-commence-trading-existing-units

Bukit Sembawang’s seafront project enjoys uptick in sales
Developer Bukit Sembawang Estates has sold at least 18 units at its Watercove development amid an uptick in landed property sales driven by falling prices. The positive level of transactions at the project, which comprises 80 freehold strata terrace units in Kampong Wak Hassan, Sembawang, comes ahead of the official launch on Saturday.
http://www.straitstimes.com/business/property/bukit-sembawangs-seafront-project-enjoys-uptick-in-sales
http://www.straitstimes.com/business/property/bukit-sembawang-estates-sells-at-least-18-units-of-watercove-sea-facing-terrace