Tag Archives: Singapore

GLP to raise S$567 million

Posted on 26 Apr 2011 | Comments Off on GLP to raise S$567 million

Mainboard-listed Global Logistic Properties (GLP) is offering 3 billion yuan (S$567 million) in fixed rate notes under its newly established medium-term note programme, a move that boosts Singapore’s role as an offshore centre for the Chinese currency.

GLP said yesterday its first yuan-denominated note is an integral part of its plan to diversify its sources of funding. The company, which has logistics facilities in China and Japan, added that net proceeds from the yuan notes would be used for general corporate purposes.

Mr Jeffrey Schwartz, GLP’s deputy chairman, said: “The exponential growth in the offshore yuan market has provided us with an opportunity to tap an additional capital pool with growing significance in the region to enhance our financial flexibility.”

GLP chief executive officer Ming Z Mei, said that, as the company expands its China portfolio, income received in yuan will be better aligned with the company’s issuance of yuan-denominated notes.

“In addition, we believe the approval by People’s Bank of China (PBOC) in issuing such offshore debt is an endorsement of our effort in improving the overall logistics infrastructure of China, further expanding our network to support the growth of domestic consumption in China.”

Beijing’s desire to redenominate more of its trade in yuan is giving rise to a new offshore centre in Singapore. Singapore now has a 150 billion yuan swap line with the PBOC, while its trade with China is about 2 per cent of China’s total.

The yuan products market has been taking off in earnest in Singapore. The city-state’s big lenders, including DBS and OCBC, already offer such products to customers, forming a launching pad for an offshore market.

Barclays Capital and UOB Asset Management were the first to issue yuan bond funds in Singapore for retail investors. China’s biggest bank, ICBC, opened its first branch in Singapore in March, to promote the use of yuan in bilateral trade and investment between the two countries.

And last week, Monetary Authority of Singapore chairman Goh Chok Tong said that the PBOC would soon appoint a Chinese bank to clear yuan trades in Singapore.

The move would enable banks here to directly access onshore yuan, rather than having to route transactions via Hong Kong or banks on the mainland.

Source : Today – 26 Apr 2011

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Resale flat prices increase, but COV premiums drop 9% in Q1

Posted on 25 Apr 2011 | Comments Off on Resale flat prices increase, but COV premiums drop 9% in Q1

The price of resale flats went up in the first quarter of 2011, but Cash-Over-Valuation premiums fell to S$21,000 – a 9 per cent drop from the previous quarter, according to data from the HDB.

Observers attribute the lower COV premiums to the government’s cooling measures which took effect in the first quarter of this year.

Going forward, analysts have mixed views on the outlook for COV premiums.

“Currently the COVs have come to a point where it is not going any much lower. Based on our PropNex data, the COV for the month of April has already gone up to a median at S$23,000, which is where we were starting prior to the first quarter,” said PropNex CEO Mohamed Ismail.

For the first quarter of 2011, the price of resale flats rose 1.6 per cent.

This is higher than the 2.5 per cent increase in the previous quarter.

Meanwhile, median sublet rents in Q1 remained relatively stable with increases from 1-room and 5-room flats and decreases from 2-room flats.

Subletting transactions rose by 8 per cent to 6,365 cases.

Some analysts believe COV premiums will likely continue to fall as a result of new supply coming on stream.

Separately, HDB said it will launch another 3,185 flats in Hougang, Sembawang, Sengkang and Punggol for sale under the April 2011 Build-to-Order BTO exercise.

This will bring the total supply of new BTO flats this year to 22,000, compared to the 16,000 BTO flats that were offered last year.

“I think the fact that there’s going to be 22,000 new HDB dwellings up in the marketplace, and the government’s ramping up in terms of its development missionary to develop more HDB properties…will mean vendors cannot hold on to their COV asking prices,” said Mr Donald Han, vice chairman of Cushman and Wakefield.

Despite the supply of new flats, Mr Han believes there could be a one to two per cent uptake in HDB resale prices in the next one or two quarters.

Mr Ismail also thinks the resale prices will trend up, as new supply of BTO flats are not a perfect substitute for the resale units.

Source : CNA – 25 Apr 2011

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Posted in HDB

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