Keppel DC REit’s new data centre in Sydney; St Thomas ville up for en-bloc; FLT divests Australian property

St thomas ville

Keppel DC REIT (KDCREIT) has announced a new shell and core (S&C) data centre in Sydney, Australia, which will be constructed on the vacant land within the Macquarie Business Park precinct. The development will be undertaken by Macquarie Telecom, which is the current master lessee of KDCREIT’s S&C data centre – Intellicentre 2 Data Centre (IC2). Macquarie Telecom will also be the master lessee with a 20-year triple-net lease (with built-in annual rental escalations) in this new S&C data centre upon its completion between 2019 and 2020. KDCREIT’s attributable construction costs work out to between A$26m to A$36m, with an estimated NPI yield of over 7%. (Source: Keppel DC REIT)

St. Thomas Ville, a freehold 23-unit 18-year-old high-end condominium along St. Thomas Walk (River Valley area), has been launched in a collective en-bloc sale for S$58m or S$1,816 psf on GFA of 31,940 sqf, which implies average selling price of S$2,560-2,700 psf to achieve PBT margin of 5-10% on breakeven of S$2,430 psf. The site is within walking distance of Great World City and Orchard Road shopping district, with the upcoming Great World MRT station some 600m away. Robertson Quay, Boat Quay, Liang Court and Chinatown are a short drive away. Separately, OCBC will reprice its Singapore mortgages where the all-in rate is below SIBOR from now to the end of the year and added that it did not push “abrupt” repricing on its customers. On the bright side, OCBC noted that there is no complete collapse of the market following the recent property cooling measures, with sales being dampened a bit and activities slowing by 10% in Jul-18 but demand from first-timers remain fairly resilient. Separately, the Ministry of Finance (MOF) has introduced the Stamp Duties (Amendment) Bill 2018, which will result in stamp duty being levied on electronic records enabling a transfer of interest in properties/shares. Currently, transfers of immovable properties/shares are done through physical records and stamp duty is levied. (Source: The Business Times and URA)

Also read: Keppel Corp tie up with Vicinity Centres

Frasers Logistics & Industrial Trust (FLT) has divested Lot 102 Coghlan Road in Outer Harbor, Adelaide, South Australia State to Qube Logistics (an existing tenant) for A$8.75m, which represents respective premiums of 36.7% and 26.8% to its Jun-18 book value and original purchase price. Impact to earnings and AUM is limited as the property contributes only 0.2% of total portfolio value and is considered a non-core asset with limited future income growth. Estimated net proceeds of A$8.3m may be used for funding potential acquisitions, reducing existing debt and/or finance general working corporate purposes. (Source: Frasers Logistics & Industrial Trust)

ESR-REIT (EREIT) will hold its EGM on 31-Aug-18 to consider and pass five resolutions, namely: (1) Merger of EREIT and Viva Industrial Trust. (2) Proposed issue of 1.56b new EREIT units to VIT’s unitholders as part of the merger consideration. (3) Proposed whitewash resolution for the waiver by the independent EREIT unitholders of their rights to receive a mandatory general offer from The Tong Group. (4) Proposed EREIT unit issue supplement to the EREIT Trust Deed. (5) Proposed EREIT electronic communications supplement to the EREIT Trust Deed. (Source: ESR-REIT)

Lippo Malls Indonesia Retail Trust (LMRT) updated that there is no major impact to Lippo Mall Kuta in Bali, following local media reports that several buildings in Bali were damaged from a 6.9 magnitude earthquake which struck Lombok Island. Only minor crack lines were found in the basement and parking areas, though they do not affect the integrity of the mall’s structure. Repair works have commenced and the mall is covered by appropriate insurance against earthquake damage. It is currently business as usual. (Source: Lippo Malls Indonesia Retail Trust)

Frasers Property Limited (FPL) has completed the acquisition of Maxis Business Park for £67.7m. (Source: Frasers Property Limited)

Hong Lai Huat’s (HLHG) 1HFY18 net profit up 19% to S$6.5m as revenues quadrupled to S$28.4m from S$7.2m in 1HFY17 on the back .stronger property sales at the D’Seaview project in Sihanoukville, Cambodia, which accounted for 87% of revenues. HLHG expects to complete the commercial segment of the project in Sep-2018 and the residential segment by 1H19. (Source: Hong Lai Huat Group)

World Class Global (WCG) books 1HFY18 net profit of S$1.6m, reversing from a loss of S$2.9m in 1HFY17 with revenue of S$160.8m from settlement by purchasers of AVANT and Australia 108. 195 (96% of completed units) units of AVANT and 108 units (38%) of Australia 108 have been successfully settled by purchasers. WCG has yet to recognize S$1.0b of locked-in sales revenue. WCG expects to complete 2 of the 5 balance stages for Australia 108 in 2H18, with an estimated S$430m of development units expected to be settled. (Source: World Class Global)

Also read: Sales of 140+ units at Tre Ver over the launch weekend

OKP Holdings’ (OKP) 2Q18 net profit falls 98% to S$0.1m from S$5.0m in 2Q17. 1H18 revenues fell 21.5% to S$50.4m due to a fall in revenue from the construction segment. OKP expects the construction operating environment to remain challenging despite improving sector prospects in the near to medium term. (Source: OKP Holdings)

Sing Holdings’ (SING) 2Q18 net profit up 30% to S$3.7m, helped by improved contributions from property development and investment properties. Its condominium project, Parc Botannia, is 60% sold (S$389m sales value) while its hospitality asset in Australia, Travelodge Docklands, continues to see occupancies at above 90%, although RevPAR is expected to decline on competition and rising supply. (Source: Sing Holdings)

CSC Holdings’ (CSC) enters into JV for landed residential development in Cambridge, UK. The development is situated on a 36,591 sqf freehold site with planning permission for 14 landed residential units (19,300 sqf of GFA). The JV has acquired a 50% stake in the development for GBP 1.1m (S$2.0m), based on the valuation of GBP 2.6m (S$4.8m) for the land, and has extended a shareholders loan of GBP 0.3m for the development. CSC will hold an effective 47.5% stake in the JV, with CSC contributing via a shareholders’ loan of GBP 0.77m (S$1.4m) and a subscription of shares amounting to S$0.03m. (Source: CSC Holdings)

SingHaiyi Group (SHG) has bought back 348,000 shares for S$34,510 or at average price of S$0.099/share, which brings its cumulative shares purchased to date at 0.565m shares (0.013% of share base). (Source: SingHaiyi Group)

Stamford Land (STL) has paid S$24,613 (S$0.48/sh) to buy back 51,200 shares, which brings its cumulative shares purchased to date to 1.19m shares (0.138% of share base). (Source: Stamford Land)

An official meeting between Singapore and Malaysia to discuss the Singapore-Kuala Lumpur High Speed Rail (HSR) Link will only occur sometime this month, despite a positive meeting between Malaysia’s Economic Affairs Minister, Mr. Mohamed Azmin Ali, and Singapore officials when the former visited Singapore over the weekend. (Source: The Straits Times)

Also read: Mayfair Gardens new condo by Oxley at Rifle Range Road

Singapore economy and exports expected to rise by 0.2% more by 2035, as a result of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTPP) trade deal, according to Minister for Trade and Industry Chan Chun Sing. The deal is expected to come into force by 1Q19 once six of the 11 countries have ratified the agreement. So far, Mexico, Japan and Singapore have done so. The multilateral agreement will allow Singapore companies better opportunities to access markets such as Mexico and Canada, with which Singapore currently has no free trade agreements. (Source: The Straits Times)