DAILY NEWS

Daily News – 7th May 2019

Singapore Real Estate

Laurel Tree, Sycamore Tree dispute with buyers a private matter: URA
The ongoing negotiations between the receivers and the buyers of the unfinished Laurel Tree and Sycamore Tree residential projects is a “private matter”, the Urban Redevelopment Authority (URA) said. URA said it was informed by the receivers – three partners of KPMG led by Bob Yap – in Feb 2019 that they had been appointed to take over management of the projects from the developers.
https://www.businesstimes.com.sg/real-estate/laurel-tree-sycamore-tree-dispute-with-buyers-a-private-matter-ura

Options for buyers when developers go bust and projects are unfinished
It is a rare case of a Singapore developer going bust, leaving the residential projects unfinished. But for some 183 people, their worst nightmare came true when developers of the 70-unit freehold condominium at Laurel Tree along Hillview Terrace and the 96 residential units and 17 shops in the Sycamore Tree project in Joo Chiat went belly up, leaving the projects uncompleted.
https://www.businesstimes.com.sg/real-estate/options-for-buyers-when-developers-go-bust-and-projects-are-unfinished

Land costs to expand IRs: S$1.3b for MBS, S$1b for RWS
Land to expand Singapore’s two integrated resorts (IRs) will cost S$1.3 billion for the 3.3 hectare site for Marina Bay Sands (MBS), while Resorts World Sentosa (RWS) has set aside S$1 billion to intensify the use of its existing land and to buy around one hectare of new land. Senior Minister of State for Trade and Industry Chee Hong Tat told Parliament on Monday: “The IRs will pay fair market value for their land, as determined by the chief valuer in accordance with market conditions and established valuation principles.”
https://www.businesstimes.com.sg/government-economy/land-costs-to-expand-irs-s13b-for-mbs-s1b-for-rws
https://www.straitstimes.com/politics/irs-to-pay-fair-market-value-for-land-allotted-to-them
https://www.channelnewsasia.com/news/singapore/integrated-resorts-to-pay-fair-market-value-for-land-when-11507122

Companies’ Brief

Property, finance veteran Lim Hua Tiong is first CEO of Frasers Property Vietnam
Frasers Property on Monday appointed Lim Hua Tiong as its first chief executive officer of Frasers Property Vietnam. He will be based in Ho Chi Minh City, and will report to Panote Sirivadhanabhakdi, group chief executive officer of Frasers Property.
https://www.businesstimes.com.sg/real-estate/property-finance-veteran-lim-hua-tiong-is-first-ceo-of-frasers-property-vietnam
https://www.straitstimes.com/business/companies-markets/property-and-finance-veteran-lim-hua-tiong-named-frasers-property-vietnam

Chip Eng Seng Corp cautious despite Q1 profit almost doubling
Caution will be Chip Eng Seng Corp’s middle name, the mainboard-listed real estate player said as it delivered first-quarter results on Monday. It said that it “will exercise caution” in bids for new projects in Australia and Singapore, after contributions from property development and hospitality lifted its latest quarter.
https://www.businesstimes.com.sg/companies-markets/chip-eng-seng-corp-cautious-despite-q1-profit-almost-doubling

United Engineers converts S$333m debt to green loan for private property development
United Engineers has converted a S$333 million loan into a green loan for residential property development, the company said in a media statement on Monday. The company secured the original loan from DBS, OCBC and UOB in November 2018. The green loan will be used to develop a land parcel along Dairy Farm Road into a green residential property comprising about 450 residential units.
https://www.businesstimes.com.sg/real-estate/united-engineers-converts-s333m-debt-to-green-loan-for-private-property-development

Property development a drag on OKP as Q1 earnings plunge 62.4%
Mainboard-listed construction player OKP Holdings’ earnings have been dragged down by its property development ventures, even as the core construction business cooled. Net profit plunged by 62.4 per cent for the three months to March 31, to S$1.07 million, according to results released on Monday.
https://www.businesstimes.com.sg/companies-markets/property-development-a-drag-on-okp-as-q1-earnings-plunge-624
https://www.straitstimes.com/business/companies-markets/q1-profit-at-okp-dragged-down-by-property-ventures

Vibrant’s S$227.5 million Jurong Island deal to be completed on May 10
Mainboard-listed logistics player Vibrant Group’s sale-and-leaseback deal for a Jurong Island warehouse facility has kicked in, and is expected to go through on May 10. The board confirmed that buyer SGRE Banyan exercised its call option with Vibrant’s 51 per cent-owned LTH Logistics (Singapore) subsidiary on Monday.
https://www.businesstimes.com.sg/companies-markets/vibrants-s2275-million-jurong-island-deal-to-be-completed-on-may-10

Views, Reviews, Forum & Others

Investors still love Singapore’s struggling malls
[Hong Kong] Singaporeans aren’t spending like they used to, at least not in shopping malls. There are too many already and more are being built. But investors still have good reasons to back mall owners. The city-state has 6.1 million square metres of retail space, of which 8.7 per cent is vacant. Yet companies are forecast to add a further 364,000 sq m, with the…
https://www.businesstimes.com.sg/companies-markets/investors-still-love-singapore%E2%80%99s-struggling-malls
https://www.straitstimes.com/business/property/why-investors-love-singapores-struggling-malls

Over 60: Why own when you can rent?
[New York] Does New York City have a bigger booster than Marcelle Shaoul? This is an easy question: It does not. She loves listening to the garbage trucks as they make their early morning rounds. She is equally charmed by the other street sounds (horns, car alarms) that serenade her for the rest of the day. She is even delighted — so she says — by the sight of trash piling up curbside. It is just so very New York.
https://www.businesstimes.com.sg/real-estate/over-60-why-own-when-you-can-rent

Marriott’s home-sharing lacks a disruptive edge
Marriott International’s home-sharing venture lacks a disruptive edge. The US$46 billion hotelier is borrowing Airbnb’s model of renting out high-end homes. Potentially, it expands the business without heavy investment. But the upside is probably limited.
https://www.businesstimes.com.sg/real-estate/marriotts-home-sharing-lacks-a-disruptive-edge

Latest worry: Inflation not rising fast enough
There are times when it seems we’re worrying about things that aren’t worth worrying about. A good example these days is inflation. Amazingly, the complaint is that it’s not rising fast enough. In March, the consumer price index, or CPI, had increased 1.9 per cent over the past year. The gain of another inflation indicator, the “deflator” of the personal consumption expenditures, or PCE, was 1.5 per cent. What’s not to like?
https://www.businesstimes.com.sg/opinion/latest-worry-inflation-not-rising-fast-enough