Retail sales fall 2.1% in May, sliding for 4th straight month

Takings at the till dropped for the fourth consecutive month in May as wary consumers kept a tight rein on their purse strings. Retail sales slid 2.1 per cent over the same period last year, according to figures released by the Department of Statistics, although that still beat the expectations of analysts in Bloomberg, who tipped a fall of 3 per cent. If motor vehicles are excluded, sales would have dropped 1 per cent year on year against a 2.1 per cent fall in April. May's estimated total retail sales value was about $3.7 billion with online making up about 5.3 per cent of this. Analysts remain cautious regarding the retail outlook for the rest of the year.


Row of six Joo Chiat shophouses up for sale

A row of six three-storey shophouses in Joo Chiat Road has been put for sale via public tender. To be sold as a bundle, the conservation shophouses are located at 454, 456, 458, 460, 462, and 464 Joo Chiat Road. They sit on a freehold site of about 7,400 sq ft and the total existing built-up area is around 13,000 sq ft. The property is zoned for commercial use with a plot ratio of 3.0 and a maximum allowable gross floor area (GFA) of some 22,200 sq ft, under the Urban Redevelopment Authority's Draft Master Plan 2019. The buyer can choose to either immediately receive stable rental income based on the current GFA, or value-add to the property and fully maximise the allowable GFA by building a rear extension, subject to the authorities' approval. Alternatively, the buyer can configure the space to suit his or her own-use requirements or to cater to the needs of the tenants.

Singapore CBD Grade A office rents hit 10-year high

Grade A office rents in Singapore's central business district (CBD) rose for the eighth straight quarter, hitting a 10-year high at S$9.93 per sq ft per month ($ psf pm) in the second quarter. This is up 12.6 per cent from a year ago. Out of the six office micro-markets tracked, rental growth remained the strongest in the Beach Road or Bugis area, rising 18 per cent from a year ago, largely due to tight vacancies in office buildings in the area. Average gross effective rents were at S$9.18 psf pm. The micro-market with the second-highest rise is City Hall, which grew 13.6 per cent year on year with an average gross effective rent price of S$10.14 psf pm. From a cumulative standpoint, Singapore CBD Grade A rents grew 5.4 per cent in the first half of 2019. Office rents are projected to grow by 5 per cent in 2020 and continue to moderate from the 15 per cent year-on-year growth seen in 2018.


Iconic Eu Yan Sang Building up for sale

The Eu Yan Sang Building in Chinatown has been launched for sale with a guide price of $62.5 million. The building was erected in 1910 and housed the first traditional Chinese medicine Eu Yan Sang outlet in Singapore, set up by its founder Eu Tong Sen. It was designed by architect Alfred Bidwell, who also drew up the plans for Raffles Hotel and Victoria Memorial Hall. The building is now a row of four conservation shophouses leased by Eu Yan Sang's flagship store, two hostels and a law firm. The three-storey shophouses at 265 to 271 South Bridge Road are in the Telok Ayer conservation area and owned by EU Realty (Singapore), a unit of Eu Yan Sang International. They sit on a combined land area of 6,262 sq ft and have a gross floor area of 19,885 sq ft. There is also a 2,562 sq ft open terrace on the fourth floor that overlooks Chinatown. The $62.5 million price guide works out to about $3,150 psf based on GFA, and $2,785 psf with the terrace included.


Singapore remains on radar of China tourists

China's economy is slowing down - weighed down by a trade spat with the US with no resolution in sight - but there's no let-up in its consumers' wanderlust. Tourists from the Middle Kingdom continue to stream here in the first half of 2019, with some travel agencies posting double-digit growth in Chinese visitors. Tour operators and hotels are also sanguine about the rest of the year. From January to May this year, Singapore received 1.5 million tourist arrivals from China - the biggest inbound market for the Republic - marking a "good absolute growth'' of 4 per cent over the same period last year, according to Poh Chi Chuan, director of digital transformation at the Singapore Tourism Board (STB). The 4 per cent outperforms the 1.5 per cent year-on-year growth for all tourist arrivals to Singapore for the same period. China accounted for about 19 per cent of the 7.8 million in total arrivals for the January-May period.


HK protests to hit retail, tourism, but limited effect on Singapore: economists

Prolonged protests in Hong Kong are likely to hit the market's retail and tourism sectors in particular, say economists, who see a limited impact on Singapore in the short term. With the protests having lasted two months and an attempted general strike, Hong Kong chief executive Carrie Lam warned that the city was being pushed "to the verge of a very dangerous situation". Preliminary estimates put Hong Kong's second quarter gross domestic product growth at 0.6 per cent year on year, the slowest in a decade. Q2 figures have been attributed as a consequence of the trade war. Apart from demand for trade and financial services weakening, property and equity prices fell in the second half of last year, dragging down consumption.


Retail, industrial property markets set to feel the heat

Trade tensions and a gloomy economic outlook could stifle any near-term recovery for the retail and industrial property markets A prolonged economic downturn, should it happen, will likely crimp consumer confidence, resulting in cutbacks on discretionary spending among households. ​Meanwhile, industrialists may be more cautious and could shelve expansion plans. That said, there are pockets of opportunities for investors in both markets that will likely provide a decent yield. Retail rents remained weak in the first six months this year. One mall slated to open later this year is PLQ - the 340,000 sq ft retail part of Paya Lebar Quarters. Islandwide retail vacancies declined by 0.8 percentage point from the second half of last year to 7.7 per cent in the six months to June 30 this year, likely boosted by the good take-up at Jewel Changi Airport and Funan mall. Separately, the industrial real estate sector seemed to have found its footing, with overall rents bottoming out. However, deteriorating manufacturing and trade statistics could put pressure on industrial rents and occupancy.

River Valley hotel plot offers CapLand-CDL integration potential with Liang Court

The appearance of a site in River Valley Road for a hotel development to be integrated with the Fort Canning MRT Station, in the second-half 2019 Government Land Sales Programme, comes at an oppportune time for CapitaLand and City Developments Ltd (CDL). The pair recently gained full control of the ageing Liang Court complex next door, after an equal joint venture that they had set up completed a S$400 million acquisition of Liang Court mall from an entity linked to PGIM Real Estate.

There are two other components in the Liang Court mixed-development complex: Somerset Liang Court Singapore serviced residence, which is owned by CapitaLand's listed unit Ascott Residence Trust; and the Novotel Singapore Clarke Quay hotel, owned by CDL's indirect subsidiary CDL Hospitality Trusts (CDLHT). While CapitaLand and CDL's immediate priority is the daily operations of the recently-acquired mall, market expectations are that they will also be exploring a redevelopment of the overall Liang Court complex. This would be facilitated by the fact that control of the mixed development has tightened from three parties previously to just two. The Liang Court complex, which was completed in the 1980s, is getting on in years and is ripe for redevelopment. It would not be surprising if the two developers have their eyes on the 1.07-hectare River Valley hotel plot, which was unveiled on the reserve list of the H2 2019 GLS Programme released early last month.


Moving out sale as Times bookstore at Centrepoint prepares to close

Times Bookstores is closing its Centrepoint branch on Sept 23 as part of an "ongoing renewal of store locations from time to time", said a spokesman for the chain. It is the latest in a slew of closures on Singapore's book scene that has included Books Kinokuniya's Liang Court outlet in April, Popular's Thomson Plaza outlet in June and MPH's last two local outlets. MPH's Raffles City store closed on July 28 and its Parkway Parade branch will close on Sept 1. Times Centrepoint opened in 1983 and was, at the time, one of the biggest bookstores in Singapore at 8,000 sq ft. It expanded across three floors in 2002 in an ambitious overhaul that included a Magnolia Snack Bar, but later downsized again.

Times has six remaining outlets in Singapore. It closed its Tampines One branch in August last year but opened its first standalone multi-category concept store for children, Times Junior, in Jewel Changi Airport in April. Times also has outlets at Paragon, Plaza Singapura, Jelita, Marina Square and Waterway Point; and sells online at GoGuru.com.sg


Largest FairPrice store opens in VivoCity

FairPrice's newest store is also its largest, with features such as an in-house vegetable farm, an ice cream truck, a play castle for children and spaces to repair baggage as well as bicycles. The 90,000 sq ft FairPrice Xtra hypermarket and Unity Pharmacy officially opened its doors yesterday. The size of two football fields, it spans two floors of VivoCity mall. Singapore's largest retailer said the store was designed to better meet customers' changing lifestyles and needs, and provide a unique brick-and-mortar shopping experience amid stiff competition from online grocers. Shoppers at the VivoCity outlet can have their food prepared for them - from cut vegetables to marinated meat and grilled seafood - for them to take home and cook without fuss. There are also dining areas for those who want to eat at the store while grocery shopping. In addition, shoppers can buy loose quantities of grain, nuts, spices and pasta - instead of those prepacked in larger amounts.


Yishun integrated transport hub to open on Sept 8

The Yishun integrated transport hub (ITH) - Singapore's 10th - will open on Sept 8. The facility will have an air-conditioned bus interchange, as with all ITHs, and is connected to Yishun MRT station and Northpoint City shopping mall. It will also be fully barrier-free. A Land Transport Authority spokesman said: "It has dedicated boarding points at each berth and graduated kerb edges to facilitate boarding by passengers in wheelchairs. The Yishun ITH has parking for around 600 bicycles, as well as upgraded facilities for bus captains and other staff, including an air-conditioned staff canteen, dedicated staff toilets and a lounge. To improve safety, the bus interchange is equipped with a reverse-warning system to the detect movement of buses from their parking bays into the driveway. With the opening on Sept 8, the stopping points of all the bus services that currently operate from the temporary Yishun bus interchange will be adjusted accordingly. Other ITHs in operation are in Ang Mo Kio, Bedok, Boon Lay, Clementi, Joo Koon, Sengkang, Serangoon, Toa Payoh and Bukit Panjang. Several other ITHs are planned for, including in areas such as Beauty World, Bedok South, Hougang, Jurong East, Marina South, Pasir Ris, Tampines North and Tengah.

Singapore drawing more high-mix, low-volume investments

More investment involving small-batch production is coming to Singapore in the wake of escalating trade tensions between the United States and China, said Trade and Industry Minister Chan Chun Sing. Mr Chan told Parliament that such investment - known as "high-mix, low-volume" with plants producing small numbers of varied items - is the kind of manufacturing that can relocate to Singapore. He noted that these kinds of processes gravitate to countries like Singapore that have a strong intellectual property regime, agile regulatory frameworks and robust distribution networks.


Singapore is top maritime centre for 6th straight year

For the sixth year running, Singapore has clinched the top spot among the world's maritime centres in the Xinhua-Baltic International Shipping Centre Development Index. The Republic beat 42 other cities such as Hong Kong, which ranked second, as well as London, which was third. Rounding out the top five maritime centres in the rankings were Shanghai (fourth) and Dubai (fifth). The index is an independent ranking of the performance of the world's largest cities offering port and shipping business services. It is a collaboration between Chinese state news agency Xinhua and international freight benchmark provider Baltic Exchange, a wholly owned subsidiary of the Singapore Exchange. Rankings were based on factors such as port throughput and facilities, the depth and breadth of professional maritime support services, as well as the general business environment.


Pharma giant GSK opens $130m manufacturing facility in Singapore

Building collaboration between companies and the Government and engaging workers are vital steps in ensuring Singapore stays a global biomedical hub, Trade and Industry Minister Chan Chun Sing said. Mr Chan told a gathering to mark the opening of a new manufacturing facility: "Today, Singapore is one of the global biomedical hubs where high-quality medical products are produced. And today, even though we are at the forefront of this industry, we never forget our fundamentals that have brought us here." These include developing trusted partnerships with industry players, protecting intellectual property and training workers. But he noted that the nature of medicine has changed and demand now is for precision drugs, which calls for products that are custom-made for individuals.

Mapletree Industrial Trust to redevelop flatted-factory cluster at Kallang Way

Mapletree Industrial Trust (MIT) plans to redevelop a flatted-factory cluster at Kallang Way into a high-tech industrial precinct at a total project cost of about S$263 million, in its largest redevelopment project to date. The proposed redevelopment of the Kolam Ayer 2 Cluster includes a build-to-suit (BTS) facility for a medical device company headquartered in Germany, customised to the firm's specifications and plans, the manager of the mainboard-listed real estate industrial trust (Reit) said. The German firm will be the anchor tenant and has committed to lease the BTS facility for an initial term of 15 years, with annual rental escalations and an option to renew for two more fiveyear terms.
​

Dyson's Singapore electric dream is all about personal cars

Home appliance maker Dyson's bid for the electric vehicle market involves a bet on personal cars, chief executive James "Jim" Rowan has said. Calling that market "the biggest segment, certainly" in the electric landscape, he added that it will likely see the fastest adoption on consumer-driven uptake and industry trends such as sustainable transport. He said that Dyson's headcount here is set to grow, with a focus on software engineering and digital marketing. Also, Dyson will raise production at its Jurong motor plant, and take up more space at Science Park, where it now has a technology hub.

Scale-up SG to groom promising local firms to be world powerhouses

A new initiative to turbo-charge the growth of promising local enterprises to become international names was launched, as part of the government's efforts to grow more companies that can compete on the world stage. Known as Scale-up SG, the 2½ years invitation-only programme - first announced in Budget 2019 - aims to groom high-growth companies with a proven track record and the aspiration to scale rapidly. This is a marked move by the government towards more targeted support for companies ready for their next phase of expansion, even as broad-based measures remain in place for fledgling firms to get off the ground. Minister for Trade and Industry Chan Chun Sing said that Scale-up SG aims to strengthen companies at the "core" of Singapore's business landscape, which he describes as those in the middle tier. Participating companies stand to gain from peer learning, the development of their leadership team and succession planning, as well as access to networks of Enterprise Singapore and partners.


Way forward is to grow external wing to beat constraints

In the next lap of Singapore's economic development, local companies will see the world as their hinterland, instead of being constrained by geographical size or location, said Minister for Trade and Industry (MTI) Chan Chun Sing in Parliament. Having this perspective would be one way for Singapore to break the "conventional paradigm" of the gross domestic product (GDP) equation, which comprises only the value of goods and services produced within its borders, he added. To grow Singapore's economy henceforth, the city-state will also need to focus on gross national product (GNP), he said. GNP refers to the value of goods and services produced by Singapore residents around the world. For that to happen, Singapore must have a sizeable base of companies that operate beyond Singapore, but which still contribute back to the local economy, said Mr Chan.


Singapore, Armenia sign pacts to strengthen economic, bilateral ties

Singapore and Armenia sealed four memoranda of understanding (MOUs) and one agreement building on their friendly relations and common interests. In a statement issued last night, the Ministry of Foreign Affairs said the pacts will help strengthen economic ties and enhance bilateral ties. The exchange of documents was witnessed by Prime Minister Lee Hsien Loong and Armenian Prime Minister Nikol Pashinyan, who is on his first official visit to Singapore. An agreement for the avoidance of double taxation was inked, which will boost cross-border trade and investment between the Republic and Armenia.

GuocoLand to redefine office leasing at Guoco Midtown

More companies, finding that they may need to scale up and down following business imperatives, are realising that the traditional long-term lease for their office space may hamper this. Or they may want a long-term lease on the space for most of their core operations, but also the flexibility of taking on more space to start a new project.

GuocoLand, taking this into consideration, wants to be more flexible with its office tenants at its S$2.4 billion, mixed-use Guoco Midtown in Beach Road. In this development to be completed in 2022, GuocoLand will set aside 15 per cent of the 650,000 sq ft of net lettable area (NLA) of office space as flexible, adaptable space. This will include two floors for tenants to use to establish "innovation labs" or start-ups. GuocoLand has not decided whether it will run this space or team up with flexible working operators. The developer said the floor plates of the offices are built to be flexible and can be sub-divided, and that it will work with tenants to design and sub-divide the floor space according to their needs. The squarish floor plates range from 27,000 sq ft to 30,000 sq ft in size. The office block has 30 storeys, and a total gross floor area of 770,000 sq ft.


Metro JV acquires Grade-A Tampines office building

Metro Holdings unit Metrobilt Construction has entered a 50:50 joint venture to acquire 7 and 9 Tampines Grande, a premium Grade-A office property. While the purchase price was not disclosed, sources put the figure to be S$395 million. Metro's 50 per cent capital commitment for the investment is about S$45.6 million. Situated in Tampines Regional Centre, the property comprises two blocks of eight-storey office towers linked by an entrance lobby with retail, as well as food and beverage outlets on the ground floor. It has a site area and gross floor area of approximately 86,110 sq ft and 361,660 sq ft respectively. It has a total net lettable area of approximately 288,000 sq ft and has achieved a committed occupancy rate of about 91 per cent. Tenants include conglomerates and firms from the technology, financial services and insurance industries, including Hitachi Asia, Aldwych International, NCR Asia-Pacific, AIA Singapore and Sysmex Asia-Pacific. 


Realty Centre in Tanjong Pagar sold for S$148m, below reserve price

Realty Centre, an office building in Tanjong Pagar, has been sold for S$148 million in the year's first commercial en bloc sale, although the figure falls short of the reserve price. The freehold 12-storey office building up for collective sale with a reserve price of S$165 million in January. The buyer is Singapore-listed The Place Holdings, which intends to redevelop the property into a mixed-use commercial and residential tower subject to regulatory approvals. Realty Centre has a land area of about 11,000 sq feet and is zoned for commercial use under the Urban Redevelopment Authority's 2014 Master Plan. It has a plot ratio of 5.6 and a maximum storey height of 35 storeys.

​Under the recently announced CBD Incentive Scheme, Realty Centre falls under the Anson precinct. This means that the property is expected to enjoy bonus plot ratios of between 25 per cent and 30 per cent if there is a change of use to either residential and commercial (+25 per cent) or residential with commercial on first storey (+30 per cent). 

Three adjoining office units at Peninsula Plaza up for sale

Three adjoining office units at Peninsula Plaza will be put up for sale in an expression of interest exercise, at a guide price of S$9.29 million. The exercise closes at 3 pm on May 29. The units are located on the 12th storey, with areas of each unit ranging from 1,001 sq ft to 1,776 sq ft. The 999-year tenure units have a combined area of 4,262 sq ft. The indicative price of S$9.29 million works out to S$2,180 psf based on the strata area. Peninsula Plaza is a mixed-use development comprising a six-storey retail podium and a 24-storey office block. It is also a short walk from City Hall MRT interchange station, which serves the EastWest and North-South lines. Prominent landmarks nearby include the National Gallery, St Andrew's Cathedral and the Supreme Court.


Bayer moving to Paya Lebar Quarter; taking up 31,000 sq ft

Pharmaceutical firm Bayer will shift its main office to Paya Lebar Quarter (PLQ) at the end of the year, joining other companies which have taken up space in the mixed-use development such as SMRT. The Business Times understands that Bayer - which is moving from OCBC Centre - is taking up 31,000 sq ft at PLQ. Bayer did not respond to queries from BT by press time. Already at PLQ is SMRT, which has shifted its headquarters from North Bridge Road to PLQ's Tower 3 where it has taken up 97,000 sq ft. BT has also reported previously that IWG's Spaces will have a 52,000 sq ft co-working space at PLQ, while Great Eastern has leased 125,000 sq ft in Tower 3 and NTUC Income, 55,000 sq ft in Tower 2, respectively. Decentralisation activity may increase owing to high rents in the CBD, as this enables costconscious occupiers to reap substantial savings by shifting their non-client facing functions to the city fringe or suburbs.


Office and retail rentals reverse direction, head south in Q1

Rentals of office and retail space reversed direction to dip in the first three months of 2019, owing to uncertainties in the business outlook and continued woes in the retail sector. Going by official figures from the Urban Redevelopment Authority (URA) on Friday, rentals in the central region of Singapore slipped by 0.6 per cent in the first quarter of 2019, in contrast with the increase of 0.5 per cent in the fourth quarter of 2018. This was the first quarterly drop since Q2 2017. Island-wide vacancy fell to 11.8 per cent, from 12.1 per cent at the end of the previous quarter, supported by net absorption of 19,000 sq m mainly taken up by technology firms and co-working operators.

​The office outlook remains fairly positive for now. With very decent pre-lease commitments already in place and a tapering supply pipeline, landlords' strong leverage is likely to be maintained. Retail rentals in the central region, on the other hand, weakened by 0.2 per cent in the first quarter of this year, against the growth of 1.2 per cent in the previous quarter. The absorption of the island-wide retail space continues to lag supply. In Q1 2019, the amount of occupied retail space decreased by 14,000 sq m, although more space was also taken off the market with net supply reducing by 2,000 sq m during the quarter

Commercial real estate deals roaring back to life

A series of commercial real estate deals amounting to $1.06 billion was inked in the past week, surpassing the total investment volume for the commercial sector in the first quarter of this year. Evia Real Estate and Metro Holdings bought 7 and 9 Tampines Grande, a pair of premium Grade A office blocks from City Developments Limited (CDL) and Alpha Investment Partners for $395 million. Mitsubishi Estate and CLSA entered into a share purchase agreement with a Perennial-led consortium to buy Chinatown Point mall for $520 million, while Realty Centre, an office building in Tanjong Pagar, has sold for $148 million in the year's first commercial collective sale deal. The investment sales market took a breather in the first three months of this year, with total sales staying muted at $4.6 billion, a 21 per cent decline quarter on quarter, and only about 13 per cent of the total annual investment volume last year.


Oxley confirms S$1.025b sale of Chevron House

Property developer Oxley Holdings announced on Tuesday that it had signed a deal to sell Chevron House for up to S$1.025 billion, just 16 months after acquiring the prime office building in Raffles Place for S$660 million. Oxley said that on April 29, it entered into a sale-and-purchase agreement (SPA) with Golden Compass (BVI) for the latter to buy the entire interest in its wholly-owned subsidiary Oxley Beryl, and take over the existing bank loans for an aggregate value of up to S$1.025 billion. Oxley Beryl owns Chevron House, a 32-storey commercial development comprising 27 levels of office space and a five-storey retail podium; the building's existing net lettable floor area (NLA) is about 261,280 sq ft. Oxley's corporate presentation in February revealed that the plan is to increase the building's NLA by 43 per cent to about 374,165 sq ft, subject to approval from the authorities. The S$1.025 billion sale price works out to about S$2,739.43 psf on the increased NLA. The property sits on a site with a 99-year leasehold tenure from December 1989, leaving nearly 70 years on the lease. In Singapore, aside from Chevron House, it is also looking to sell its Novotel and Mercure hotels on Stevens Road. 

6 strata offices for sale at International Plaza

A batch of six adjoining and refurbished strata offices at International Plaza in Tanjong Pagar is up for sale with a guide price of $11.97 million. The offices are available on a sale and leaseback scheme with immediate annual gross rental yield of 4.2 per cent for at least five years. The guide price works out to $1,850 psf based on floor area. This "compares favourably" with the average price of $1,895 psf achieved for 13 office transactions at International Plaza over the past six months. The six offices have a combined floor area of about 6,469 sq ft and a 99-year leasehold tenure in effect since 1970. The commercial use zoning means foreigners are eligible to buy. Additional buyer's stamp duty and seller's stamp duty are also not applicable.


Debt-laden Newstead calls in liquidators amid debts of more than $60 million

Homegrown electronics retailer Newstead Technologies is winding up its business amid accumulated debts of more than $60 million, The Straits Times has learnt. Its debt mountain includes about $4.7 million owed to Apple South Asia, while Newstead employees have around $1.6 million outstanding owed to them, according to a preliminary list of 170 creditors seen by The Straits Times. Newstead sold off its 10 Nubox outlets to local Apple reseller Elush, which operates the iStudio and Epicentre stores, last November. Sources said the sale might help to reduce the amount owed to Apple, which declined to comment when contacted. Newstead now operates two outlets - at Nex @ Serangoon and Jurong Point - after a restructuring. It will cease all retail operations by the end of the month. It had more than 40 outlets at the peak of its business. Its troubles mean that Funan DigitalLife Mall will not have Newstead as an anchor IT tenant when the refurbished centre re-opens in the next few months, said a spokesman for CapitaLand, which manages Funan.

Oasis Terraces mall opens in Punggol

Oasis Terraces, a seven-storey mall built along the waterfront in Punggol, is integrated with transportation nodes and also boasts a 24-hour fitness centre and a supermarket which opens till 11pm. Residents had a say in what they wanted included in the early planning stages of the Housing and Development Board (HDB) development in 2014. In officially opening the mall, National Development Minister Lawrence Wong said Oasis Terraces is the first of six new-generation neighbourhood centres, which are developed with residents' feedback and HDB as the landlord. Unlike a private developer, he said the HDB is not out to maximise commercial returns and is able to ensure the centres are well integrated with transportation nodes and the overall plans for the towns. Oasis Terraces, for instance, has community gardens, an outdoor playground and a fitness corner on the rooftop, besides its 106 shops. Shops are allocated to tenants through a tender process, but the decisions are based not just on highest price but also on qualitative factors such as the proposed business concept and operating model, said Mr Wong. "This allows us to better manage the tenant mix to address the needs of residents," he said.


Frasers Property buying 17.8% stake in S'pore retail mall fund for $356m

Frasers Property has inked a conditional agreement to acquire a 17.8 per cent stake in Singapore's largest non-listed retail mall fund for about $356.4 million. The fund, PGIM Real Estate Asia Retail Fund (PGIM Real Estate), owns and manages six retail malls in Singapore - namely Tiong Bahru Plaza, White Sands, Liang Court, Hougang Mall, Century Square and Tampines 1 - as well as office property Central Plaza. The fund is the property investment vehicle of PGIM, the global investment management arm of New York Stock Exchange-listed Prudential Financial. 


Pair of Club Street shophouses up for sale at S$25m 

A pair of adjoining three-storey conservation commercial shophouses at 44 and 46 Club Street have been put on sale. The properties will be sold with existing tenancy at a price of S$25 million for both shophouses. The 999-year shophouses have a combined land area of 221.8 sqm (about 2,387 sq ft) and their total floor area is estimated to be about 6,208 sq ft. Under the Urban Redevelopment Authority's Master Plan 2014, the shophouses are sited on "commercial" land within the historic district of Chinatown-Telok Ayer in the Central Business District (CBD). Foreigners are eligible to purchase the properties and additional buyer's stamp duty is not required. The sale will be conducted through an expression of interest exercise which closes on March 19, 2019, at 3pm.

The biggest of the four deals, at S$80 million, is for a row of six shophouses - Nos 33, 35, 37, 39, 41 and 43 Tanjong Pagar Road - which have four floors and a mezzanine level. The ground-floor space of two of the shophouses is leased to a bridal boutique; that for another two shophouses leased to Five Oars Coffee Roasters, and that for the last two shophouses to The Proof Collective, which uses the space as its offices and also operates a cocktail bar at the back. The S$80 million being paid for the six shophouses works out to around S$2,600 per square foot based on a built-up area of about 30,800 sq ft. The shophouses stand on land with a 99-year leasehold tenure that started in December 1994, which leaves nearly 75 years on the lease. 

Genting Road industrial building for sale at S$15.9m

A freehold industrial development located at 14 Genting Road has been launched for sale at an indicative asking price of S$15.9 million. This works out to a land rate of S$938.44 psf. The five-storey building houses production areas on the first to third levels, and secondary workers' dormitories on the fourth and fifth floors, which comprise a total of 68 beds. The property sits on a site area of 5,758 sq ft, with a gross floor area of 16,943 sq ft. Under the 2014 Master Plan, the site is zoned "Industrial (B1)", for clean and light industrial usage, with a permissible gross plot ratio of 2.5. It is currently approved for use as a secondary workers' dormitory and may also be used by end users from clean and light industries requiring production, storage and/or ancillary office spaces. The building is an exclusive B1 site located near several matured industrial estates areas, including MacPherson, Aljunied, Kallang, Tai Seng, Kim Chuan and Ubi. The expression of interest closes on March 13 at 3 pm. 


Cisco invests S$25m in cybersecurity centre and first S-E Asian co-innovation hub in S'pore

Cisco launched its first South-east Asian co-innovation centre in Singapore, focused on cybersecurity and the Internet of Things, alongside a new cybersecurity centre of excellence here. The US-based tech firm has invested S$25 million in both centres, its chief of operations Irving Tan told The Business Times. The move was supported by Singapore's Economic Development Board (EDB). Cisco's Singapore office has grown from a regional business headquarters into a hub to address growing cyber threats in Asia, said Mr Tan. "As you create more smart cities and smart factories... there are economic and social benefits. But we have to recognise that there are more cybersecurity threats we have to deal with," he noted. Cisco's new cybersecurity centre of excellence will host a threat intelligence headquarters and Security Operations Centre (SOC) which will partner the government, industry players and universities.


Global Premium Hotels puts 23 hotels on market at S$1.4b

A portfolio of 23 hotels, mostly under the Fragrance brand, is up for sale by Global Premium Hotels (GPH) at an indicative price of S$1.4 billion. They have been on the market since the second half of last year. Although there have been no takers so far it is not for the lack of interest, said GPH chairman James Koh. In an interview with The Business Times, Mr Koh, who is also founder, chairman and CEO of Fragrance Group, said GPH had received "a couple of offers". The indicative price is based on a valuation done by an international valuer whose identity Mr Koh declined to name. At S$1.4 billion, the indicative price translates to about S$720,000 per key. "I have my way of doing business. It is not you come and offer me a big discount and want me to take a haircut. I won't entertain." He said depending on negotiations with buyers, the sale could go also include the company and management team, for ease of keeping the hotels in operation.


Singapore woos India's millennial travellers

Singapore wants to attract Indian millennial tourists. And it is hoping a three-day festival will showcase to young Indians all that Singapore has to offer - from art and entertainment to a bustling nightlife. The Singapore Tourism Board (STB) has partnered with the St+art India Foundation, a non-profit group, for the experiential festival, called Singapore Weekender, that started in New Delhi. The festival includes works by a dozen Singaporean artists such as Samantha Lo and Daniel Yu, a pop-up cocktail bar by Jigger and Pony, and a performance by Singaporean rapper Yung Raja. A road in central Delhi's Lodhi art district has been converted into "Singapore Lane" featuring street art by Singaporean artists like Eugene Soh and Yip Yew Chong. According to STB, 1.45 million Indian tourists visited Singapore in 2018, a 13 per cent increase over the previous year, making India the third largest source of tourists after China and Indonesia. Last year, Singapore saw 3.4 million visitors from China and three million from Indonesia.

Razer plans new S-E Asia HQ at one-north in S'pore Gaming company

Razer will be getting a new South-east Asia headquarters at Singapore's onenorth, a business park that is home to a variety of technology firms and start-ups. The seven-storey building, which will feature design elements by Razer designers and external architects, has an estimated gross floor area of 19,300 sq m. The company, which is known for being a world leader in high-performance gaming hardware, software and services, expects to move to the new facility in 2020. It currently has an office in Chai Chee industrial estate. Razer co-founder and chief executive Tan Min-Liang said the move represents the company's support for the Singapore Government's efforts in developing technological innovation and a strong technology talent pool.


WeWork keeps pushing, landlords and rivals push back

WeWork is increasingly stepping on the turf of landlords and real estate brokers - and the industry is starting to push back. The office-sharing giant, valued at as much as US$42 billion, is getting a greater portion of its business from the large companies that property owners usually court. It is also building an investment division to buy its own sites, according to people with knowledge of the matter. At the same time, big real estate names such as Blackstone Group and Tishman Speyer are venturing into flexible-space offerings of their own. Brokers, meantime, are growing wary that WeWork is cutting them out of deals. WeWork's widening ambitions threaten to further upend the industry that it has already reshaped in its eight-year existence. The question is whether WeWork can keep up its breakneck expansion - and its lofty valuation - if friction grows. 


Gaw Capital Partners said to be buying Robinson 77 for about S$710m

An entity controlled by Hong Kong private equity property group Gaw Capital Partners is understood to be buying Robinson 77 for about S$710 million from a fund managed by CLSA Real Estate. The price works out to about S$2,300 psf on net lettable area (NLA) of 307,585 sq ft. The NLA comprises 301,567 sq ft of offices and 6,018 sq ft of retail space. Once known as SIA Building, the property is on a site with a balance lease of about 74 years. The CLSA-managed fund completed a major refurbishment of the 35-storey building in 2017, after paying S$530.8 million for the property in a deal entered into in late-2016. Analysts have estimated the refurbishment cost at S$30 million-plus.

Singaporeans spend more on food than presents

Singaporeans' love of food borders on obsession, so it will come as no surprise that Christmas here is more an excuse for extravagant feasting than gift-giving. They usually spend more on food, rather than presents or outfits, over the festive period, a survey by e-commerce firm Picodi showed. It found that, on average, a person here spends US$334 (S$457) during Christmas, with US$142 splashed out on food, compared with US$114 on gifts and US$78 on outfits. Singaporeans ranked 18th in terms of Christmas spending in the poll of 34 countries, below nations such as the Czech Republic, Britain and Finland. The study was conducted earlier this month among more than 13,000 people around the world in countries where Christmas or its equivalent is celebrated during this period. In Singapore, 414 people took part in the poll. Food businesses agreed they usually see a surge in sales during the festive season.


Snap and sip as your hair gets snipped

Chez Vous: HideAway, which opened early Dec 2018 after a two-month renovation costing $350,000, has positioned itself as a spa-meets-hair salon, in a bid to move away from the typical transaction-based experience in the hairdressing industry. Its brand director Eugene Teo, 32, says: "Usually, when you go to a hair salon, you sit for a few hours, get your hair done, pay and leave. It's efficient, but not very fun. The door, brightly lit in neon yellow, opens into a dimly lit Renaissance-themed reception area. There are other themed areas, including a millennial pink private room for VIP guests and a retail section in blue and yellow, where customers can pose with their new hairdo for photos. The 1,800 sq ft Chez Vous: HideAway sits in the office section of the building and fits 15 chairs. The older outlet occupies a slightly bigger space at 2,000 sq ft with 30 chairs and looks like a runof-the-mill salon offering typical hair services. The salon has also upped its service game. Customers are served butterfly pea tea upon arrival and can choose from among four scalp-friendly essential oils to be used in the products during their appointment. 

​Surprise 7.6% climb in November 2018 factory output 

Singapore's factory output surged by 7.6 per cent year on year last month, continuing its rise despite talk of a slowdown in the manufacturing sector as the global electronics market quietens. Analysts doubt that the trend can continue, with some predicting a worse 2019 for the manufacturing sector.  November 2018's performance surprised economists, who had expected output to grow by 4.2 per cent, a Bloomberg consensus poll showed. It also surpassed October 2018's 5.5 per cent growth, which was revised up from an earlier estimated 4.3 per cent rise. Excluding the more volatile biomedical manufacturing sector, industry output expanded by 5.3 per cent year on year in Nov 2018, according to data from the Singapore Economic Development Board (EDB). Manufacturing grew by 2.8 per cent on a month-on-month basis in November 2018. The biomedical cluster remains the biggest growth driver, expanding by 18.5 per cent year on year, higher than October 2018's 13.1 per cent rise. 


JTC launches last 4 industrial sites under confirmed and reserved lists for H2 2018 

JTC has launched the last four industrial sites under the confirmed and reserved lists for the second half of the 2018 Industrial Government Land Sales (IGLS) Programme. Two sites are available for tender and two sites for application, meaning their tender will be triggered if a developer's indicated minimum price in its application is acceptable to the state. This is as opposed to confirmed list sites which are launched according to schedule, regardless of demand. The sites for tender comprise a 20-year leasehold, 1.23 hectare parcel at Jalan Papan (Plot 1), which is the last of six confirmed list sites for the second half of 2018 IGLS Programme, and a 30- year, 2.09 ha reserve list plot at Woodlands Avenue 12 whose tender was triggered by a committed bid price of not less than S$36 million. 

New food, retail options as part of Great World City revamp

Japanese supermarket Meidi-Ya and renowned ramen restaurant Hototogisu Ramen are among the new additions to Great World City that will open in the coming months with the completion of the mall's first phase of refurbishment. The $50 million facelift, which began in April, will see the mixed-use development in River Valley add 50 new tenants and three main access points to the upcoming Great World MRT Station on the Thomson-East Coast line. Hototogisu Ramen, popular for its clam and pork broth, will open its second outlet in Singapore at the mall this month. Other new eateries include Mavrx Coffee Bar, Din Tai Fung, Tim Ho Wan, Ho Fook Hei Soy Sauce Chicken, Imperial Treasure Steamboat, Ya Kun Kaya Toast and Four Seas Fish Grill.

​Meidi-Ya supermarket will open in June next year, complementing anchor tenant Cold Storage. Several existing tenants including Toys 'R' Us, Food Junction and Amazonia have been relocated within the mall. Family entertainment centre Amazonia, located on level three, will reopen this month with a new Northern Lights concept, indoor trampoline and virtual reality zones, the statement said. Japanese apparel retailer Uniqlo and pet care retail chain Pet Lovers Centre also opened in September. The mall's food and beverage offerings will increase from 20 per cent to 30 per cent of net lettable space when works are completed by the third quarter of 2020.

Sheng Siong sets up cash recycling machines

Supermarket operator Sheng Siong has set up cash machines at two of its stores to help customers withdraw money from their bank accounts and to "recycle" its earnings. Called $tm, they are the first cash recycling machines in Singapore that do not belong to a financial institution, and allow users to only withdraw funds from their bank accounts. Unlike regular automated teller machines (ATMs), $tm cannot be used for other purposes such as fund transfers. The operator tops up the green $tm machines, which are smaller than bank ATMs, with cash from the supermarket's sales, and the cash is "recycled" when customers withdraw money. The supermarket operator plans to set up $tm machines at all its Singapore outlets by next June. It has 54 supermarkets now. 


More using QR code for making payments, study shows

Paying for purchases via a QR code has quickly gained traction among consumers in Singapore, and this has largely benefited small merchants, a new study showed. The study by the National University of Singapore found that the amount and number of PayLah transactions jumped after DBS Bank added this mode of cashless transaction in April last year. The monthly transacted amount rose from some $600,000 in April last year to more than $1.6 million in December last year. In the same period, the number of transactions tripled from about 6,000 to some 18,000. When QR code payment technology was introduced, "the monthly transaction amount and count start to trend up almost immediately", said researchers involved in the study. "In contrast, the (automated teller machine) withdrawals stay flat all over the year, which suggests the rise of mobile wallet transactions is not simply driven by a reduction in cash usage," they added.