30th Jan (Thu) Real Estate Daily News 2015 Daily News & Views Singapore Economy S'pore No. 2 on Safe Cities Index Singapore is the world's second safest city, after Tokyo and ahead of Osaka, according to a report by the Economist Intelligence Unit that looks at urban security. The Safe Cities Index, with a focus on 50 cities worldwide, looked at more than 40 qualitative and quantitative indicators spread across four categories: digital security, health security, infrastructure safety and personal safety. http://www.straitstimes.com/premium/asia/story/spore-no-2-safe-cities-index20150129#sthash.zsCkIYef.dpuf MAS move timely to tackle threat of 'hot money' A move by the Monetary Authority of Singapore (MAS) yesterday to ease its monetary policy came as a considerable surprise. However, the unscheduled intervention is actually well- timed as it puts Singapore in a better position to deal with the threat of speculative "hot money" inflows from abroad and low inflation at home, economists said. http://www.straitstimes.com/premium/money/story/mas-move-timely-tackle-threat-hot-money20150130#sthash.v3hBK18f.dpuf Singapore Real Estate Sengkang plot not for commercial columbarium: Khaw No commercially-driven columbarium will be built on land set aside for a Chinese temple, National Development Minister Khaw Boon Wan told Parliament yesterday. He explained that the project in Sengkang was awarded to funeral services firm Eternal Pure Land (EPL) because Housing Board officers assumed that the company was acting for a religious group. http://www.straitstimes.com/premium/top-the-news/story/sengkang-plot-not-commercial-columbariumkhaw-20150130#sthash.gouIzk1f.dpuf Relief over no-go for Fernvale commercial columbarium Future residents of Fernvale Lea were mostly relieved after being told that the building of a commercially run columbarium close to their new homes will not be happening now. But some were still uncomfortable with the idea that the eventual Chinese temple in the estate might still include a resting place for the dead, if its trustees decide to include niches for ashes. http://www.straitstimes.com/premium/top-the-news/story/relief-over-no-go-fernvale-commercialcolumbarium-20150130#sthash.EW4Kw2WI.dpuf Rents rise in trendy districts Hipster cafes, ice cream parlours and quirky retail shops have found their way into the Republic's heartlands. According to analysts, their rising popularity over the years has pushed up - and in some cases even doubled - shop rental rates in neighbourhoods like Haji Lane and Tiong Bahru. Looking ahead, they said this trend of rising rents could replicate itself in new up-and-coming "hip" districts. http://www.channelnewsasia.com/news/business/singapore/rents-rise-in-trendy/1625012.html Mosquitoes mushroom at building sites http://www.straitstimes.com/premium/singapore/story/mosquitoes-mushroom-building-sites-20150130 1 Daily News & Views Companies’ Brief CapitaRetail China Trust ready for asset growth; Q4 DPU up 12.7% Capitaretail China Trust (CRCT) is now "geared for growth" where acquisitions are concerned, after reporting a 12.7 per cent year-on-year rise in distribution per unit (DPU) to 2.48 Singapore cents in the fourth quarter on the back of an overall strong portfolio income. Tony Tan, chief executive officer of the Reit manager, said on Thursday that there are already some potential targets on the table, as owners become increasingly willing to sell their assets. http://www.businesstimes.com.sg/companies-markets/capitaretail-china-trust-ready-for-asset-growth-q4dpu-up-127 Higher Optus Centre valuation boosts AA Reit's Q3 DPU AIMS AMP Capital Industrial Reit (AA Reit) on Thursday posted a distribution per unit (DPU) of 2.83 Singapore cents for its third quarter ended December 2014. This was an increase of 2.2 per cent from the 2.77 cents it paid out a year ago. http://www.businesstimes.com.sg/companies-markets/higher-optus-centre-valuation-boosts-aa-reits-q3dpu Tuan Sing's Q4 profit dips 4% to S$24.3m Tuan Sing's net profit for the fourth quarter ended Dec 31, 2014 dipped 4 per cent from a year ago to S$24.34 million, as other operating expenses and finance costs offset a surge in revenue. Revenue for the quarter rose 72 per cent year on year to S$112.1 million, attributable to higher revenue from the property segment and maiden contribution from Grand Hotel Group (GHG) between Dec 2 and Dec 31, 2014, after the group completed its acquisition of the remaining 50 per cent stake in GHG. http://www.businesstimes.com.sg/companies-markets/tuan-sings-q4-profit-dips-4-to-s243m Frasers Hospitality beats forecasts in maiden results Frasers Hospitality Trust announced a distribution income of S$35.7 million for the period July 14 (its listing date) to Dec 31, 2014, and an illustrative distribution per unit of 2.97 cents, both of which are 5.3 per cent above forecast. http://www.businesstimes.com.sg/companies-markets/frasers-hospitality-beats-forecasts-in-maidenresults CDL Hospitality Trusts In FY2015, we expect a recovery in CDL Hospitality Trusts' earnings due to an improvement in overall/Chinese tourist arrivals into Singapore and contribution from the recently acquired Japanese hotels. However, Q1 2015 may see some softness, due to a combination of cautiousness on the part of corporates ahead of the Chinese New Year and the lack of the airshow this year. http://www.businesstimes.com.sg/companies-markets/brokers-take-51 Starhill Global Reit Starhill Global Reit (SGReit) reported its Q4 2014 results which met our expectations. The brightest development during Q4 2014 came from the 17 per cent positive rental reversions accomplished for leases committed at Wisma Atria (retail). We continue to like SGReit for its healthy financial position (gearing of 28.6 per cent as at Dec 31, 2014) and attractive valuations and distribution yields vis-à-vis its peers. The stock is trading at FY2015F price-to-book and yield of 0.88 times and 6.3 per cent, respectively. http://www.businesstimes.com.sg/companies-markets/brokers-take-51 2 Daily News & Views Thakral subsidiary to acquire property investment unit Mainboard-listed Thakral Corporation and its wholly-owned subsidiary, Thakral Capital Holdings (TCH), on Thursday entered into a share sale agreement to acquire 49 per cent of Thakral Capital Australia (TCAP)'s share capital from four vendors. TCAP is Thakral's real estate investment subsidiary. Currently, TCH owns 51 per cent of TCAP's share capital. http://www.businesstimes.com.sg/companies-markets/thakral-subsidiary-to-acquire-property-investmentunit Far East Orchard Far East Orchard (FEO) is selling its share in two parcels of land at Bassein Road to its joint venture partner and controlling shareholder Far East Organization. FEO teamed up with Far East Organization in 2010 to acquire Pastoral View and the next door plot for a total of $122 million. http://www.straitstimes.com/premium/money/story/company-briefs-20150130#sthash.UQdXpTWb.dpuf Hiap Hoe Hiap Hoe has proposed to spin off its Australian property business held under Meteorite (Australia) on the Catalist board. Its portfolio of investment properties in Australia are in Melbourne and Perth. Hiap Hoe noted that the restructuring for the spin-off is in its preliminary stages. http://www.straitstimes.com/premium/money/story/company-briefs-20150130#sthash.UQdXpTWb.dpuf Views, Reviews & Forum Safety features in place at condo Often, on a controversial issue, there is more to it than meets the eye. Unfortunately, when emotions get in the way of facts, opinions tend to take on an uncalled-for character, such as when Mr Rajasegaran Ramasamy deemed the attitude of the management corporation of One North Residences "callous" ("Board's ruling on safety grille in condo laudable"; Monday). http://www.straitstimes.com/premium/forum-letters/story/safety-features-place-condo20150130#sthash.Lc2624hn.dpuf 'Never thought a for-profit firm would vie for non-profit venture' http://www.straitstimes.com/premium/top-the-news/story/never-thought-profit-firm-would-vie-nonprofit-venture-20150130#sthash.UA94oei7.dpuf Global Economy & Global Real Estate Forest City: Healthy foreign investment or blight on Iskandar? http://www.businesstimes.com.sg/government-economy/forest-city-healthy-foreign-investment-or-blighton-iskandar UK home prices rise at slowest annual pace in 14 months http://www.businesstimes.com.sg/real-estate/uk-home-prices-rise-at-slowest-annual-pace-in-14-months Incentives galore for new US homebuyers http://www.businesstimes.com.sg/real-estate/incentives-galore-for-new-us-homebuyers 3 Daily News & Views Push for greater govt role in home finance http://www.businesstimes.com.sg/real-estate/push-for-greater-govt-role-in-home-finance America's home-improvement industry gets a major boost http://www.businesstimes.com.sg/real-estate/americas-home-improvement-industry-gets-a-major-boost Kaisa woes: junk-rated China developers face crisis http://www.businesstimes.com.sg/real-estate/kaisa-woes-junk-rated-china-developers-face-crisis Luxury Montage Resort Sells for $360 Million to Strategic http://www.bloomberg.com/news/articles/2015-01-29/luxury-montage-resort-sells-for-360-million-tostrategic Renters Gain as Kids in U.S. Move Out of Parents’ Houses http://www.bloomberg.com/news/articles/2015-01-29/renters-gain-as-kids-in-u-s-move-out-of-parentshouses General Growth Emphasizes Urban Growth With NYC Purchase http://www.bloomberg.com/news/articles/2015-01-29/general-growth-emphasizes-urban-growth-withnyc-purchase Additional Articles of Interests – Local & Overseas Real Estate Local & Overseas Real Estate - Full Article http://www.stproperty.sg/articles-property/singapore-property-news/c/11 http://business.asiaone.com/property/news http://www.propertyguru.com.sg/market-news http://www.btinvest.com.sg/property _______________________________________________________________________________________ Note: The Daily News & Views is issued as news gathering for the convenience and benefits of REDAS’ members only and not for mass circulation. 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Every effort is taken to ensure that all information extracted is correct at the time of dissemination 30th Jan 2015. 4 Daily News & Views Real Estate Daily News A Daily Publication From REDAS Research & Education _______________________________________________________________________________________________________________________ About REDAS The Real Estate Developers' Association of Singapore (REDAS), established in 1959, is Singapore’s premier business association in the real estate and development industry. REDAS represents some 300 members comprising developers, builders, real estate consultancies and allied professionals, bankers, REITs and fund managers. The Association actively engages regulators, policy makers and private sector partners to promote best practices and to support the growth of a vibrant and progressive industry for the creation of quality real estate in Singapore. 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