Singapore Economy Manpower policies 'should not be relaxed' Source: Straits Times / Singapore THE International Monetary Fund's warning last week that Singapore's slower inflow of foreign workers could hurt growth and competitiveness should not prompt Singapore to relax its manpower policies, said deputy labour chief Heng Chee How yesterday. Instead, this danger is precisely why Singapore must press on with restructuring for productivity gains, said Mr Heng, who is also Senior Minister of State in the Prime Minister's Office. He was speaking at the hospitality sector's Excellent Service Award ceremony, organised by the Singapore Hotel Association. The IMF had said Singapore faced external risks such as a slowing global economy, and gains from raising productivity would take time. But a U-turn on foreign manpower policy would "erode the incentive for us to invest in upgrading our economy", said Mr Heng. The excellence award shows upgrading is important to the hospitality sector, he said. Now in its 20th year, it is given to service professionals from seven industries, such as banking, retail and land transport. This year, the hospitality sector awarded a record 3,095 staff from 105 companies. Higher productivity is not just about speed or technology, but also creating value by doing things better, said Mr Heng. "Everyone in the industry knows the tremendous value of the employee who can keep delighting customers, (and by doing so) helps the company produce more and repeated business." He cited award winners such as Mr Kenneth Ng, 32, concierge team leader at the Grand Hyatt. To help an elderly guest who had damaged his tooth late at night and had an early flight the next morning, Mr Ng persuaded his own family dentist to open his clinic and attend to the guest. Mr Ng won the SHA Outstanding Star Award for the hotel sector, the highest accolade. Winning the same award for the non-hotel sector was Mr Mohamed Kaiash Mohamed, 52, senior customer service officer at the Singapore Cruise Centre.
Good service gives a good impression not just of the company, but also the country, said Mr Mohamed: "The brand, at the end of the day, is Singapore." -By Janice Heng Inflation expectations up on domestic price pressures Source: Business Times Domestic pass-through price pressures have pushed up both the headline inflation rate (CPI-All Item) and core inflation rate expectations for the first time since September 2012. The one-year-ahead inflation expectations of Singapore households has inched up to 3.73 per cent, according to the research findings of the latest quarterly survey for Singapore Index of Inflation Expectations (SInDEx), by Singapore Management University (SMU). In June 2014, the one-year-ahead headline inflation was 3.66 per cent.
Carats to perk up a lacklustre market? Developers offering 'novel' incentives to tempt hesitant buyers, investors Source: Straits Times / Money Developers offering 'novel' incentives to tempt hesitant buyers, investors - See more at: http://www.straitstimes.com/premium/money/story/carats-perk-lacklustre-market-20141021#sthash.sgNedSh4.QTbnLF9M.dpuf DEVELOPERS are offering incentives ranging from lucky draws for diamonds to discounts on sports cars in a bid to get reluctant buyers and investors back to the property market. Market experts say these perks are far more enticing than previous "carrots", such as free furniture or rental guarantees. Qingjian Realty is offering 20 one-carat diamonds in a lucky draw for valid e-applicants for its Bellewoods executive condominium (EC) project. The draw will be held on Nov 15. Bellewoods has attracted about 1,000 e-applications for its 561 units, which have an indicative price of about $750 to $820 psf. "The EC market has many first and second timers, and we felt a diamond would be appropriate - for a fiancee, for example," said Mr Donald Ng, head of sales and marketing at Qingjian Realty. Buyers of units at Keppel Land's Highline Residences in Kim Tian Road get a free three-year "lifestyle membership", which includes two single- trip limousine services a year and twice-yearly complimentary golfing at Ria Bintan Golf Club for up to four people on each trip. The developer offered similar membership perks for its other projects such as Caribbean at Keppel Bay and Reflections at Keppel Bay. Experts said perks have become part of the marketing campaign for new units. They also give developers a way to re-ignite interest in completed projects that have lost that "brand new" appeal. "Usually this comes with the view of trying to protect their price line, and not upsetting [those who bought] during the initial launch phases," said Mr Donald Han, managing director of Chestertons. "While earlier buyers might not have benefited from perks, they had the opportunity to handpick units with the best views, or had early bird discounts." UIC and SingLand are offering discounts on Aston Martins for buyers of three-bedders or larger units at Mon Jervois this month. Visitors to the showflat last Saturday had the chance to test-drive models. The partnership with Aston Martin Singapore "is not about driving sales, but about cross- branding and accessing each others' clientele", said Mr Alvin Tan, senior director of residential sales at Savills Singapore, an agency marketing Mon Jervois. The 109-unit project is about 32 per cent sold; its average price is $2,059 psf. About 50 per cent of the unsold units are three-bedders and up. IG Development had announced that it would give away a $200,000 Mercedes car to the first three buyers of one of its Infinium cluster homes at Kovan but it later withdrew this in favour of discounts. The first three buyers can now get a cut on the sale price of around $100 psf, which the firm says is a more attractive deal, given that the saving could be about $500,000 or more. The project, which had its preview last weekend, has three or four interested buyers. The developer is likely to re-introduce the car offer once the first three sales have been completed, said Mr Ujeen Tan, chief executive of marketing agent UPG International. The 14 four-storey cluster homes come with private lifts and ensuite bathrooms for all five bedrooms; the homes range from 4,962 sq ft to 5,716 sq ft.
Linking up with car dealers is not a new idea. Similar deals were offered for V on Shenton and Eight Riversuites. There were also offers made with car firms back in the 2004-06 period but the booming property market in subsequent years meant such promotions were unnecessary, The Straits Times understands. -By Rennie Whang Lower supply of public, private homes next year Source: Today Online / Business SINGAPORE — To prevent a glut in the public and private housing markets, the Government will further reduce the supply of Build-to-Order (BTO) flats and land sales for private properties. Minister for National Development Khaw Boon Wan announced the reduction in BTO supply during his appearance on Channel 8’s Hello Singapore programme yesterday. The supply of BTO flats for this year was reduced to 22,400 units, from 25,000 per year in the previous three years. Mr Khaw said the number of new BTO flats launched next year would be cut by another 25 per cent to about 16,000 flats, with the number of BTO exercises reduced from the current six a year to four. There will be a BTO exercise once every quarter instead of once every other month. The number of flats per exercise will hold steady at 4,000. Speaking to reporters after the programme, Mr Khaw said: “As you know, because of the great shortage, we had to ramp up (supply) very rapidly … But obviously, we cannot carry on like this, it may cause a big problem. So this year, we have started to taper … Then next year, we have decided to further reduce by another 25 per cent.” He added that the amount of land offered under the Government Land Sales (GLS) programme would also see further cuts. Details were not provided, but the minister said the Government would “have to be careful not to overdo it”. “The (HDB and private property) markets are linked. So, just as we need to reduce BTO, we have also been progressively bringing down the Urban Redevelopment Authority land sales for executive condominiums, for private condos. So this year, we made a small adjustment of reduction. Next year, we will go a bit further,” he said. The Government announces the amount of land for sale under the GLS twice a year. In the latest launch in June, the sites on offer could yield an estimated 3,915 private homes, down from the estimated 4,630 units previously. Despite the recent decline in private property prices, the figures are still around 50 per cent above the lows in 2009. Hence, it is still not the right time to wind down cooling measures, said Mr Khaw, adding that there is still room for prices to moderate, given that income levels had grown only 30 per cent during the same period. “Cooling measures are something we will have to relook sooner or later, but I think now is not the time yet … Prices have come down, the market is turning into a buyer’s market and sellers now have to be more realistic,” he said. Analysts whom TODAY spoke to said the move by the Government is timely, as pent-up demand for HDB flats would have been met by the more than 77,000 flats that came into the market between 2011 and last year. Associate Professor Sing Tien Foo, deputy head (administration and finance) at the National University of Singapore’s Department of Real Estate, said: “It is time to adjust the stock. The Government has been pumping up the supply of new flats for the past three years, so this is timely. Looking at the last BTO launch, the (application rates) look quite comfortable so, moving forward, it’s good to supply at a more moderate pace.” “If we look at the number of marriages per year, it’s about 15,000 to 16,000, so I think the 25 per cent reduction is still quite comfortable,” he added. On the private-property front, Century 21 chief executive Ku Swee Yong cautioned that with developers still hungry for land, a decrease in supply might instead drive up prices.
“The GLS programme is actually a good tool to keep prices in check for the long-term stability of the market. If developers know there won’t be as many sites on offer, that may push up land prices and this cost will be passed on to consumers,” he said. -By Lee Yen Nee http://www.todayonline.com/singapore/lower-supply-public-private-homes-next-year 25% fewer BTO flats to be launched in 2015 Source: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/25-fewer-bto-flats-to-be-launched-in-2015 Govt to continue easing up on housing supply next year Source: Straits Times / Top of The News BOTH public housing supply and land sales for private property will continue to slow next year, National Development Minister Khaw Boon Wan said yesterday. However, married couples and their parents will get more help to live close together when buying new Housing Board flats. As for calls to re-examine property cooling measures, he reiterated that this was not the time. Mr Khaw addressed these topics in a blog post and on Mandarin television news programme Hello Singapore last night. There will be 25 per cent fewer Build-To-Order (BTO) flats next year. After BTO supply was ramped up between 2011 and last year, the pace slowed by 10 per cent this year to 22,400 units. The HDB has decided to slow things down further after studying recent BTO application rates. In recent years, there have been six launches a year of an average of 4,000 units. From next year, there will be four a year, with a total of about 16,000 new units. "This should be sufficient to meet demand, without causing a glut in the public housing market," said Mr Khaw. On the cut, R'ST Research director Ong Kah Seng said: "I don't think it is too drastic." But chief executive of real estate firm Century21 Ku Swee Yong thinks slowing down to 18,000 units first may be better. As for private property, Mr Khaw noted that the Government has been reducing land sales for executive condominiums and private condominiums. "This year, we made a small adjustment of reduction. Next year, we will go a bit further," said Mr Khaw, adding that exact figures have yet to be finalised. He also announced that couples and their parents will get more help to live near each other. From next month's BTO onwards, "a certain proportion" of the flat supply will be set aside just for them. In addition, priority will be given to couples applying to live with their parents. Priority will also be given to parents who own a flat in a mature estate, but apply for a flat in a non-mature estate to live near their married child. Asked to evaluate his three years as housing minister, Mr Khaw said they have been "quite satisfying", adding: "We are now seeing results."
He added it was "particularly satisfying" to help newlyweds get flats quickly, but added: "Now that I've delivered my side of the bargain, I hope they'll deliver their side - which is move in quickly and have children." -By Janice Heng BTO flats launched next year to be reduced by 25%: Khaw National Development Minister Khaw Boon Wan said the Government's effort has been effective in clearing the waiting queue for BTO flats and that it was time to change gear with the market stabilising.Source: Channel News Asia / Singapore SINGAPORE: The Government will be reducing the housing supply next year, to prevent a glut in the market. On Monday (Oct 20), National Development Minister Khaw Boon Wan said the number of Build-to-Order (BTO) flats to be launched next year will be reduced by 25 per cent. This means a BTO programme of about 16,000 units next year, a drop from this year's 22,400 units. The number of sites released under the Government Land Sales Programme will also be reduced. Mr Khaw shared this at a live interview on the first episode of news and current affairs programme Hello Singapore, a one-hour show that airs on weekdays at 6.30pm on MediaCorp's Channel 8. The 22,400 BTO flats launched this year was a reduction of 10 per cent from last year's numbers. During the record construction programme from 2011 to 2013, more than 25,000 BTO flats were launched per year, totalling 77,000 units, to meet pent-up demand. Mr Khaw added that the Government's effort has been effective in clearing the waiting queue for BTO flats and that it was time to change gears with the market stabilising. "Because of the great shortage, we had to ramp up very rapidly, so each year (we launched) 25,000 units, (for) successively three years from 2011 to 2013," he noted. "Obviously we cannot carry on like this, it may cause a big problem. This year, we have already started to taper down." In line with the decrease, the number of BTO sales launches next year will be reduced from six to four a year. Each quarterly launch will offer around 4,000 units. Currently, sales launches of BTO flats are held once every two months. From next year, they will be held once every three months. Mr Eugene Lim, key executive officer at ERA Realty, was surprised by the significant cut. He said: "The impact on the resale market would be quite good. Currently, the resale market has taken a beating because of the ramped-up new supply. "The reduced supply is also happening at a time when the resale prices are stabilising. We can expect more buyers to possibly come back to the resale market next year." HELPING THOSE WHO WANT TO LIVE NEAR EXTENDED FAMILY The Government will also take steps to help families who want to live near one another. Currently, such applicants get extra ballot chances. From the next BTO exercise, a proportion of flat supply will be set aside for them. Priority will also be given to those applying to live under one roof, and to parents who own a flat in mature estates and apply for a flat in non-mature estates to live near their married children. Mr Khaw said that these suggestions came up during the recent Housing Conversations. He added that property cooling measures will remain, and gave the assurance that as the country progresses, Singaporeans will not be left behind. For example, construction works have started for a new rental block in the Bishan area, near the Kong Meng San Phor Kark See Monastery. It is located opposite the Bishan-Ang Mo Kio Park, and will be near the MRT station from the future Thomson Line. Mr Khaw said that this is the Government's way of helping low-income families improve their living conditions and share the fruits of Singapore's economic success. - CNA/xy http://www.channelnewsasia.com/news/singapore/bto-flats-launched-next/1425858.html https://mndsingapore.wordpress.com/ Location 'elevates Mount Sophia's cachet' Area's character continues to evolve, with art schools adding zest Source: Straits Times / Money THE Mount Sophia area has been changing for years now, and the newest kid on the block is the 493-unit Sophia Hills. The condo is expected to be ready for preview next month, said developer Hoi Hup Sunway, although pricing is not yet available. The units will range from 463 sq ft one-bedders to 1,539 sq ft four-bedders. Dual-key apartments will also be on offer. Completion is expected to be in 2018. The condo will be one more addition to an area used to seeing the new displacing the old. After all, the slopes above the Selegie area once housed Eu Tong Sen's Eu Villa, the Methodist and Nan Hua girls' schools and Trinity Theological College. The schools have moved on to new pastures while Eu Villa was torn down in the 1980s to make way for Sophia Court. There has been transformation at the foot of Mount Sophia as well, the site of The Cathay, Plaza Singapura and Dhoby Ghaut MRT station. The Selegie area is home to a lively blend of art schools, niche retail shops as well as food and beverage outlets. The School of the Arts, LaSalle College of the Arts and Nanyang Fine Arts Academy have all helped inject a healthy dose of youthful vigour. Older shopping centres, including Parklane Shopping Mall and Peace Centre, stand beside newer developments like Wilkie Edge and the refurbished PoMo. Earlier this month, Kian Ho Bearings said it would acquire 10 shops at Peace Centre for $15.27 million in a bid to diversify from its business in core bearings, seals and power transmission belts. The shops have a remaining tenure of 55 years. And Hiap Hoe is selling 33 of its shops at Parklane for about $55.6 million. The units have 59 years left on their leases. Parklane tried unsuccessfully for a collective sale in 2007. The area's mid- to long- term outlook "is positive as the completion of Rochor and Bencoolen Downtown Line MRT stations will... improve connectivity with the rest of the island", said Ms Chia Siew Chuin, director of research and advisory at Colliers International. She estimated that 1,150 apartments have been completed in the area since 2005 as part of 13 projects, including 8@Mount Sophia, Parc Emily, Parc Sophia and Mount Sophia Suites. Projects under development include 1919, Liv on Sophia and Liv on Wilkie, which will together add a further 220 units over the next few years. Home prices in the area have been flat this year - about $2,300 to $2,400 per sq ft (psf) for new sales and $1,600 to $1,800 psf for resales, noted Ms Chia. "Prices of private residences here are not expected to see significant corrections despite the foreseeable weak market conditions," she said, citing the central location and broad range of amenities as plus points. "Given its location up on a hill, there is a measure of exclusivity, distancing these homes from the crowd." -By Rennie Whang Property agent fined S$27,000 for breaching DNC Registry rules TODAY reports: Huttons Asia agent Kuan Chow Sheng pleaded guilty to nine of 27 charges for breaching DNC Registry rules that came into effect on Jan 2.Source: Channel News Asia / Singapore SINGAPORE: A property agent with Huttons Asia on Monday (Oct 20) became the second person to be convicted for offences related to the Do Not Call (DNC) Registry under the Personal Data Protection Act (PDPA). Kuan Chow Sheng, 32, was fined S$27,000 after he pleaded guilty to nine of 27 charges for breaching DNC Registry rules that came into effect on Jan 2. Between February and March, Kuan sent unsolicited SMSes to advertise property developments, two in Singapore and one in London, via nine telephone numbers using a bulk SMS-broadcasting software. The PDPA bans firms from sending marketing messages to any number listed on the DNC Registry without first getting the owner’s consent. The Personal Data Protection Commission said it had received 235 complaints of unsolicited telemarketing messages sent by Kuan. Court documents stated that Kuan had continued to send telemarketing “SMS blasts”, even after the Act had come into force, because he had not attended a compliance course on the Act for real estate salespeople yet. Deputy Public Prosecutor Jane Lim argued yesterday that a low fine for Kuan would undermine the effectiveness of the DNC Registry. The seriousness of not checking the register and not obtaining consent before sending unsolicited telemarketing messages should not be downplayed, as they infringe upon an individual’s fundamental right to privacy, she said. A deterrent sentence was needed as the real estate industry had the highest number of complaints pertaining to DNC-related offences, she added. However, Kuan’s lawyer Lee Heng Eam appealed for a low fine, saying his client had acted in a moment of folly. He had also been tied up caring for his children and wife, who had pre-natal depression at the time, said Mr Lee. The property agent, who is still with Huttons Asia, was a first-time offender, added the lawyer. Kuan could have been fined up to S$10,000 for each text message sent. In August, Star Zest Home Tuition and its director Law Han Wei became the first to be convicted for violating DNC Registry rules. The tuition agency and Law were each fined S$39,000, after pleading guilty to 13 charges. -TODAY/av http://www.channelnewsasia.com/news/singapore/property-agent-fined-s-27/1426394.html Property agent fined S$27,000 for breaching DNC Registry rules Huttons Asia agent sent unsolicited messages to advertise developments using a bulk SMS-broadcasting software Source: Today Online / Singapore Huttons Asia agent sent unsolicited messages to advertise developments using a bulk SMS-broadcasting software
SINGAPORE — A property agent with Huttons Asia yesterday became the second person to be convicted for offences related to the Do Not Call (DNC) Registry under the Personal Data Protection Act (PDPA). Kuan Chow Sheng, 32, was fined S$27,000 after he pleaded guilty to nine of 27 charges for breaching DNC Registry rules that came into effect on Jan 2. Between February and March, Kuan sent unsolicited SMSes to advertise property developments, two in Singapore and one in London, via nine telephone numbers using a bulk SMS-broadcasting software. The PDPA bans firms from sending marketing messages to any number listed on the DNC Registry without first getting the owner’s consent. The Personal Data Protection Commission said it had received 235 complaints of unsolicited telemarketing messages sent by Kuan. Court documents stated that Kuan had continued to send telemarketing “SMS blasts”, even after the Act had come into force, because he had not attended a compliance course on the Act for real estate salespeople yet. Deputy Public Prosecutor Jane Lim argued yesterday that a low fine for Kuan would undermine the effectiveness of the DNC Registry. The seriousness of not checking the register and not obtaining consent before sending unsolicited telemarketing messages should not be downplayed, as they infringe upon an individual’s fundamental right to privacy, she said. A deterrent sentence was needed as the real estate industry had the highest number of complaints pertaining to DNC-related offences, she added. However, Kuan’s lawyer Lee Heng Eam appealed for a low fine, saying his client had acted in a moment of folly. He had also been tied up caring for his children and wife, who had pre-natal depression at the time, said Mr Lee. The property agent, who is still with Huttons Asia, was a first-time offender, added the lawyer. Kuan could have been fined up to S$10,000 for each text message sent.
In August, Star Zest Home Tuition and its director Law Han Wei became the first to be convicted for violating DNC Registry rules. The tuition agency and Law were each fined S$39,000, after pleading guilty to 13 charges. -By Neo Chai Chin http://www.todayonline.com/singapore/no-title-31 Singapore Sustainability Awards 2014 Source: Business Times http://www.businesstimes.com.sg/todays-paper (Pg 14 - 25) Companies' Brief Singapore real estate firms name their new heads Source: Business Times / Real Estate There have been several new appointments at Singapore's property firms. Frasers Hospitality Group on Mondaynamed Dennis Wong as director of portfolio and asset management - in charge of the group's asset management plans and enhancement initiatives to maximise investment potential and growth. -By Lee Meixian http://www.businesstimes.com.sg/real-estate/singapore-real-estate-firms-name-their-new-heads Keppel Land Q3 profit slides 10.6% on lower sales Divestment gains help absorb impact of revenue fall; drag comes from property trading segmentSource: Business Times / Companies & Markets Keppel Land's net profit for the third quarter ended Sept 30 slipped 10.6 per cent to S$113 million as divestment gains helped absorb the impact of lower sales. Group revenue for the third quarter dived 59.6 per cent from a year ago to S$168.7 million, with the main drag coming from the property trading segment where there was an absence of revenue from The Lakefront Residences in Singapore as the project had obtained temporary occupation permit in May. -By Lynettet Khoo http://www.businesstimes.com.sg/companies-markets/keppel-land-q3-profit-slides-106-on-lower-sales KepLand's Q3 profit falls 10.6% to $113m Source: Straits Times / Money KEPPEL Land's third-quarter net profit dropped 10.6 per cent to $113 million from a year earlier, owing to lower revenue. Revenue for the three months ended Sept 30, meanwhile, fell 59.6 per cent to $168.7 million. This was due primarily to lower revenue from the property trading business, Keppel Land said. "The lower revenue from the property trading segment was due largely to the absence of revenue from The Lakefront Residences in Singapore as this project obtained temporary occupation permit in May," the company said. "There were also lower revenues from phase four and phase five of 8 Park Avenue in Shanghai, both of which were launched in June last year, and Plot 2-1 of The Springdale in Shanghai, which was completed in September last year." Despite the much lower revenue, the group's pre-tax profit rose by 4.1 per cent, compared with the same quarter last year. This was due to a gain of $92 million from the divestment of Equity Plaza, as well as a share of Keppel Reit's gain, amounting to $7.2 million, from the divestment of its stake in Prudential Tower. This was partly offset by a loss of $20.3 million arising from the dilution of interest in Keppel Reit. Quarterly earnings per share fell to 7.3 cents, from 8.2 cents in the same period last year. Net asset value per share stood at $4.59 at the end of last month, up from $4.52 at the end of December last year. For the first nine months of the year, Keppel Land's net profit dropped 3.3 per cent from a year earlier to $308 million. Revenue fell 20.6 per cent to $758 million. This was also mainly as a result of its weaker property trading segment. The slowdown in the property market has hit Keppel Land's home sales. In Singapore, the firm sold about 280 residential units in the first nine months of this year, fewer than the 310 units sold over the same period last year. Overseas, it sold about 1,600 residential units in the first nine months, of which about 1,420 were from China. In line with its strategy to scale up its commercial presence overseas, Keppel Land said it has recently announced several new office and retail developments in Asia's growth cities. These include redeveloping the International Financial Centre Jakarta Tower 1 into a 49-storey office tower, and developing a 37-storey office tower under Saigon Centre Phase 2 in Ho Chi Minh City, Vietnam.
Keppel Land added that it will further develop its fund management business for recurring income. -By Yasmine Yahya http://www.straitstimes.com/premium/money/story/keplands-q3-profit-falls-106-113m-20141021 MapletreeLog expects tougher year ahead Source: Business Times / Companies & Markets Mapletree Logistics Trust, which on Monday released its fiscal second-quarter results, said it expects to face some headwinds in its Singapore portfolio over the next 12 months amid a more challenging leasing environment with tighter regulatory restrictions on the use of industrial space. These restrictions include the ruling that the main occupier of a JTC site can only lease out at most 30 per cent of the building space to non-anchor subtenants, up from 50 per cent previously. -By Lee Meixian http://www.businesstimes.com.sg/companies-markets/mapletreelog-expects-tougher-year-ahead MLT's distributable income up 4% in Q2 Source: Straits Times / Money MAPLETREE Logistics Trust (MLT) posted a 4 per cent rise in distributable income in the second quarter, thanks to good performances across the group. Higher revenue from existing assets, contributions from Mapletree Benoi Logistics Hub and two recent acquisitions in Malaysia and South Korea boosted the numbers. Distributable income came in at $46.3 million for the three months to Sept 30, up from $44.5 million a year ago, giving a distribution per unit of 1.88 cents from 1.82 cents a year earlier. Gross revenue rose 5.8 per cent to $81.5 million, while net property income was up 3.1 per cent to $68.7 million. The higher figures were achieved despite lower occupancy in Singapore, due to the conversion of some single-tenant leases to multi-tenanted ones on expiry. Leasing activity in most of MLT's markets has held steady despite renewed concerns about the weakness in the euro zone and Japan economies, said the firm in a statement yesterday. "This has been a busy period for MLT as we forged ahead in our expansion plans to deepen presence in our target growth markets such as China, South Korea and Malaysia," said Ms Ng Kiat, chief executive of the real estate investment trust's manager. "We expect to face some headwinds in our Singapore portfolio over the next 12 months as more properties are expected to be converted from single-tenanted to multi-tenanted buildings." Earnings per unit was 2.08 cents, up from 2.01 cents as at Sept 30 last year. Half-year distributable income rose 5 per cent from a year ago to $92.9 million as gross revenue climbed 6.6 per cent to $162.5 million. Net property income rose 4.3 per cent to $137.6 million. Half-year distribution per unit was 3.78 cents, up from 3.62 cents a year ago.
MLT announced its results after markets closed. Its units were 0.5 cent up at $1.195 yesterday. -By Marissa Lee http://www.straitstimes.com/premium/money/story/mlts-distributable-income-4-q2-20141021 CapitaMall Trust Source: Business Times / Stocks CapitaMall Trust's (CMT) Q3 2014 distribution per unit (DPU) was in line with expectations and made up 73 per cent of our full-year estimate. While organic growth is likely to remain anaemic in the near term, tenant sales and shopper traffic are seeing some traction, with lower year-on-year declines. Post the recent market weakness, CMT offers an attractive 16 per cent total return, based on our target price of S$2.11. We upgrade our rating to "add" from "hold" on valuation.
http://www..businesstimes.com.sg/stocks/brokers-take-8 Strong rents, occupancies lift FCOT Q4 DPU by 6% Source: Business Times / Companies & Markets Frasers Commercial Trust (FCOT) achieved a 6.2 per cent rise in distribution per unit (DPU) to 2.21 Singapore cents for the fourth quarter ended Sept 30, thanks to strong rents and occupancies as well as lower interest costs. This brought the fiscal full year DPU to a record 8.51 Singapore cents, up 8.7 per cent from fiscal 2013. -By Lynette Khoo http://www.businesstimes.com.sg/companies-markets/strong-rents-occupancies-lift-fcot-q4-dpu-by-6 Global Economy & Global Real Estate GIC sinks US$1.7b into Tokyo space Source: Business Times / Real Estate SINGAPORE sovereign wealth fund GIC is sinking what some have estimated to be in the region of US$1.7 billion (S$2.2 billion) into one of Tokyo's most prime office spaces. The investment firm said it is taking up the entire office component of Pacific Century Place Marunouchi, located next to Tokyo Station and a stone's throw from the Ginza shopping district. The office portion consists of the 8th to 31st floors of the building, and has a gross floor area of 38,840 sqm of net lettable area. The lower floors - not part of the transaction - are taken up by Four Seasons Hotel Tokyo and retail space. GIC did not reveal how much it paid for the office block; but Reuters reported on Aug 25 that Secured Capital Investment Management Co, which GIC said it bought the property from, was putting it up for sale at more than US$1.7 billion. Secured Capital - part of Asian private equity firm PAG - bought the property in 2009 for about 144 billion yen (US$1.4 billion). Reuters quoted unnamed sources close to the deal saying that Secured Capital was seeking more than 180 billion yen (US$1.7 billion) in its sale of the property. At that price, Reuters' sources said, the expected annual return for GIC from the Grade A office space would be about 3 per cent. "As a long-term value investor, GIC believes Pacific Century Place Marunouchi gives us a combination of stable income and the potential for capital appreciation over the long term," said Lee Kok Sun, co-head of Asia, GIC Real Estate. Pacific Century Place Marunouchi is located in Tokyo's Chiyoda ward, which has some of the country's highest rents and lowest vacancy rates. Most of the other properties in the area are owned by Mitsubishi Estate Co, Japan's leading developer. Property analysts have a positive view of the Tokyo office market in the near term. JLL (Jones Lang Lasalle) said in its second quarter 2014 Asia Pacific Property Digest that it expects rents in Tokyo "to rise gradually over the remainder of (2014)". It also said that strong interest from investors and expectations for further rental increases should drive capital values higher. Meanwhile, CBRE Research said in its Q2 2104 global office rent cycle report that rents in Tokyo are on an uptrend. Mr Lee added: "The attractions of the property are its prime location, superior building quality, and quality tenants. This investment demonstrates our confidence in Japan and, specifically, the Tokyo office market over the long run." Pacific Century Place Marunouchi counts among its tenants Shell Japan, BHP Billiton Japan, Deloitte Touche Tohmatsu and Verizon Japan. The Business Times understands that the current vacancy rate for the building is in the low single-digit range. JLL's report said that the overall vacancy rate for Tokyo's office space was "stable at 3.7 per cent" in Q2 2014. Pacific Century Place Marunouchi was built by Hong Kong tycoon Richard Li's Pacific Century Group and completed in 2001. The group then sold it for 200 billion yen in 2006 to KK daVinci Holdings, a Japan-based company primarily engaged in the property investment advisory business. KK daVinci then sold it to Secured Capital. Reuters had also reported in August that Goldman Sachs Asset Management was a final bidder for Pacific Century Place Marunouchi, with a possible offer of some 165 billion yen, competing against at least two other unnamed investors.
GIC's first investment in Japan dates back to 1997. Earlier this year, it was looking to buy Meguro Gajoen, a complex of office properties and retail facilities in Tokyo, but backed off from the deal due to a legal dispute. -By Michelle Quah http://www.businesstimes.com.sg/real-estate/gic-sinks-us17b-into-tokyo-space GIC acquires prime office space in Tokyo Deal for property in heart of business district said to be worth $2.2b Source: Straits Times / Money SOVEREIGN wealth fund GIC has acquired a prime office property in the heart of Tokyo's business district. The 32-storey mixed-use Pacific Century Place Marunouchi is close to the Tokyo Imperial Palace and has direct sheltered access to the city's main train station. GIC declined to disclose the size of the deal, though a report by Reuters said it came up to US$1.7 billion (S$2.2 billion). The fund bought the office portion of the building, which spans levels eight to 31, from Japan-based real estate investment management company Secured Capital. The Four Seasons Hotel manages a hotel on the third to seventh floors of the building, while the lower floors are occupied by retail and food and beverage outlets. The property, which was completed in 2001, was developed by Pacific Century Group - a firm chaired by Mr Richard Li, the younger son of Hong Kong tycoon Li Ka-shing. Tenants include energy giant Royal Dutch Shell, global resources company BHP Billiton and accounting firm Deloitte Touche Tohmatsu. "As a long-term value investor, GIC believes Pacific Century Place Marunouchi gives us a combination of stable income and the potential for capital appreciation over the long term," said Mr Lee Kok Sun, the co-head of Asia at GIC Real Estate. "The investment demonstrates our confidence in Japan and, specifically, the Tokyo office market over the long run." The deal is believed to be one of Japan's biggest property transactions since the financial crisis. While Japanese Prime Minister Shinzo Abe's efforts to revive the nation's economy and end more than a decade of deflation have led to a recovery in the property market, prices in Tokyo are still below pre-financial crisis peaks. GIC has had a presence in Japan since 1997, when it acquired land for an office complex in Tokyo called the Shiodome City Centre.
Its other properties in Japan include the Westin Tokyo Hotel, which it purchased in 2008, and a shopping mall called Terrace Mall Shonan located in the coastal region of Shonan, which it owns through a joint venture with Japanese firm Sumitomo Corp. -By Chai Yan Min http://www.straitstimes.com/premium/money/story/gic-acquires-prime-office-space-tokyo-20141021 GIC Buys Tokyo Building in Bet on Rising Property Prices Source: Bloomberg / News GIC Pte, Singapore’s sovereign wealth fund, bought a building next to Tokyo Station in a bet that the city’s real estate values will continue to rise. GIC paid $1.7 billion for the property, according to a person familiar with the purchase who asked not be named because the information isn’t public. The fund, which declined to comment on the price, said it acquired the office component of the Pacific Century Place Marunouchi. The building was sold by Secured Capital Japan Co., a real estate arm of Hong Kong-based alternative-asset manager PAG, according to statements by the buyer and seller. Real estate prices in Tokyo have risen about 20 percent since Prime Minister Shinzo Abe took office almost two years ago, Deutsche Asset & Wealth Management estimated, with property investment in the country rising 70 percent to 4.6 trillion yen ($43 billion), the highest in six years. “GIC believes Pacific Century Place Marunouchi gives us a combination of stable income and the potential for capital appreciation over the long term,” Lee Kok Sun, co-head of Asia at GIC Real Estate, said in the statement today. “This investment demonstrates our confidence in Japan and specifically the Tokyo office market over the long run.” Falling VacancyThe 24-story office component of the Tokyo property has 38,840 square meters (418,070 square feet) of net rentable area, according to the statements. Completed in 2001, the development also houses shops and the Four Seasons Hotel Tokyo at Marunouchi. The building, in the Marunouchi business district, is connected to Tokyo Station, the capital’s main railway station. The vacancy rate for office space in Tokyo fell to 5.65 percent in September, the lowest since February 2009, according to real estate services firm Miki Shoji Co. Tokyo is drawing foreign investors. City Developments Ltd. (CIT), Singapore’s second-largest developer, said last month it acquired a plot of land in Tokyo’s Shirokane area valued at S$356 million ($280 million) together with a U.S.-based investment company. A unit of China’s Fosun Group (2196) acquired the Citigroup Center building in the Japanese capital in August. “Today’s transaction shows how keen some foreign investors are about Tokyo’s office market,” said Hideyuki Shinkai, who helps oversee about 58 trillion yen in assets at Norinchukin Trust & Banking Co. in Tokyo. “It may encourage other foreign buyers to invest as well.” Today’s purchase came after GIC backed out of acquiring Meguro Gajoen in July, according to people familiar with the transaction at the time. Mori Trust Co., Japan’s second-biggest closely held developer by sales, bought the Tokyo office and banquet hall complex a month later for $1.25 billion. More PropertiesGIC is adding to its real estate holdings, which accounted for 7 percent of assets in the year ended March 31. Last fiscal year, the sovereign fund bought Blackstone Group LP (BX)’s 50 percent stake in London’s Broadgate office complex. It also teamed up with U.S. property developer Related Cos. and the Abu Dhabi Investment Authority to purchase the headquarters space of Time Warner Inc. (TWX) in New York City’s Columbus Circle for $1.3 billion. The Singapore state fund is the world’s sixth biggest, with estimated assets under management of $315 billion, according to the website of London-based Institutional Investor’s Sovereign Wealth Center. Secured Capital was advised by Jones Lang LaSalle Inc. -By Klaus Wille and Kathleen Chu Rising Barcelona rents eroding historic districts Traditional stores are being squeezed out by big international brandsSource: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/rising-barcelona-rents-eroding-historic-districts Expand megacities to spur economy Failing to expand, improve these urban areas could be disastrous, warn analystsSource: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/expand-megacities-to-spur-economy Govt to relax sales tax on homes: report Source: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/govt-to-relax-sales-tax-on-homes-report Sears Will Lease Retail Space in Northeast to U.K.’s Primark Source: Bloomberg / News Sears Holding Corp. (SHLD), the unprofitable department-store chain seeking fresh ways to raise money, will lease space to Primark Stores Ltd., a British budget-clothing retailer that’s expanding in the U.S. Primark will set up shop in seven Sears stores in the Northeast, according to a statement today. Separately, Hoffman Estates, Illinois-based Sears announced a rights offering that could generate as much as $625 million for general corporate purposes. “Sears Holdings is strategically transforming one of the largest retail real estate portfolios in the United States over time while continuing to operate its existing stores in large, but rationalized selling space,” Jeff Stollenwerck, president of real estate for Sears, said in the statement. Edward Lampert, Sears’s chief executive officer and its biggest investor, is squeezing more cash out of the company following nine straight quarters of losses. His recent transactions include a $500 million dividend from the spinoff of the Lands’ End clothing unit and a rights offering for most of the stake in Sears’s Canadian division. The offering announced today consists of 8 percent senior unsecured notes due 2019 and warrants to purchase shares of common stock. Sears lost $975 million in the first half of its fiscal year. That follows a combined $2.3 billion in losses in the past two fiscal years. Sears shares jumped 23 percent to $34.96 at the close in New York. The stock has dropped 11 percent this year. Primark’s LeasesAt six of the seven locations in today’s real estate deal, Sears will continue to operate alongside Primark. At the seventh site -- located at the King of Prussia Mall in Pennsylvania -- Sears will close down. Primark will then share that space with another Sears subtenant, Dick’s Sporting Goods (DKS) Inc., which signed an agreement for part of the second floor in January. Primark, owned by Associated British Foods Plc (ABF), will lease a total of about 520,000 square feet (48,310 square meters) from Sears. The British retailer will take over the space in the next 12 to 18 months as it continues to push beyond its home market. Primark, one of Europe’s fastest-growing clothing chains, has said it was planning to add stores in the Northeastern U.S., the first of which is slated to open at the end of next year. Primark stores are known as traffic drivers, said Matt McGinley, managing director at New York-based International Strategy & Investment Group, which has a sell rating on Sears’s stock “That could help the Sears stores,” McGinley said. -By Celeste Perri and Lauren Coleman-Lochner London homes' asking prices rise most in year Capital's property values gain 7% in October on seasonal demand: websiteSource: Business Times / Real Estate http://www.businesstimes.com.sg/real-estate/london-homes-asking-prices-rise-most-in-year Balls Says Mansion-Tax Threshold to Rise With Home Values Source: Bloomberg / Luxury U.K. opposition Labour finance spokesman Ed Balls said the threshold for his party’s planned mansion tax would rise in line with house prices for properties valued at more than 2 million pounds ($3.2 million). The move would ensure that more homes don’t fall into the tax bracket as values increase, Balls wrote in an article for the London Evening Standard newspaper today. The tax would be levied through a banded system, meaning that those owning properties valued at between 2 million pounds and 3 million pounds would only pay an additional 250 pounds a month, Balls said. A property’s value would be determined through self-valuation, Balls said. Labour leader Ed Miliband last month rejected the idea that homes would be revalued “across the board,” saying existing mechanisms to stop people holding property in companies to avoid tax would be used to assess which homes are liable for the levy. “Ordinary Londoners should be protected and wealthy foreign investors must finally make a proper tax contribution in this country,” Balls wrote. “If prime property prices continue rising, then by the time the tax is introduced the starting point will be higher than 2 million pounds.” The tax, which Labour says it will introduce to help fund the National Health Service if it wins elections in May, is estimated to raise 1.2 billion pounds a year. Labour has also pledged to protect long-standing owners of high-value homes, with those earning less than 42,000 pounds a year guaranteed the right to defer the charge until the property changes hands. -By Svenja O’Donnell Pennsylvania REIT Urged to Weigh Sale by Land & Buildings Source: Bloomberg / News Jonathan Litt, the hedge fund manager who runs Land & Buildings Investment Management LLC, wants shopping-mall owner Pennsylvania Real Estate investment Trust (PEI) to consider selling itself if it can’t turn things around by unloading lackluster properties. Pennsylvania REIT should “explore strategic alternatives, including a sale” if it is unable to improve the net asset value of its holdings via divestitures, Litt wrote in a letter to the Philadelphia-based company’s chief executive, Joseph Coradino. Land & Buildings owns less than 1 percent of Penn REIT, according to data compiled by Bloomberg. Washington Prime Group Inc.’s agreement in September to pay $4.3 billion for rival Glimcher Realty Trust including debt could spur more consolidation among owners of shopping malls in small cities, such as Pennsylvania REIT, according to industry analysts. Getting larger enables mall landlords in low-growth areas to cut costs and strike better deals with tenants. Pennsylvania REIT, which controls 43 properties on the East Coast, has been seeking to improve the value of its holdings by selling off poor-performing malls in Florida, New Jersey and Pennsylvania, according to company presentations. The company, which has had “numerous discussions” with Land & Buildings, has determined that the hedge fund’s suggestion that it immediately sell 17 properties is “flawed,” according to statement today. Selling that many assets at once wouldn’t “result in a valuation uplift,” but would create “problematic leverage, liquidity and operating” issues as well as “considerable transaction costs,” the company said in the release. Pennsylvania REIT has also rejected Land and Buildings’ suggestion that it sell a pool of assets into a trust, citing similar concerns. The company’s shares rose 3.4 percent to $20.07 at 11:08 a.m. in New York, giving it a market value of almost $1.4 billion. The stock was almost unchanged in the 12 months through Oct. 17. Land & Buildings said its suggestions could drive up Pennsylvania REIT’s share price to $30 -- more than 50 percent higher than where shares closed last week. Litt, who urged apartment-building manager Associated Estates Realty Corp. to consider selling in June, says Pennsylvania should step up the asset sales to improve its financial performances. If that doesn’t work “within a finite timeframe” the company should put itself on the block, according to the letter to the board. -By Matthew Monks |