MARKET UPDATES :
- YONGNAM Engineering will sell a Malaysia plant in Nusajaya, Johor, to Axis Real Estate Investment Trust for RM153.5 million (S$60.1 million).Based on a valuation report issued by CCO & Associates on March 19 this year, the market value of the property is RM167.5 million.Upon the sale transaction, Yongnam Malaysia will remain the tenant of the property for a period of 15 years. This will follow the concurrent execution of the lease agreement entered between Yongnam Malaysia and the real estate investment trust, which is being held in escrow.The two parties will endeavour to complete the sale transaction before Dec 31. The lease agreement becomes effective as of the completion date.
- MORE than 1,200 e-applications have been received for Lake Life, a 546-unit executive condominium housing project near Jurong Lake.The e-applications were received from Saturday October 4 to Monday. E-applications will close on Oct 12. The current indicative average pricing is around S$880-890 psf. Firm pricing will be released on Nov 5.
- DBS Bank has completed its purchase of the Asian private banking business of Societe Generale in Singapore and Hong Kong, as well as selected parts of its trust businessThe group noted that DBS Private Bank and Societe Generale Private Banking Asia (SGPB Asia) are highly complementary in terms of clients, geographical coverage as well as product and service offerings. The completion of the acquisition significantly increases the scale of DBS’ wealth management business and strengthens the bank’s position as a leading wealth manager in Asia, DBS said in a news release on Monday. With the successful acquisition of SGPB Asia’s business, DBS’ high net worth assets under management – those of high net worth individuals with more than S$1.5 million each in investible assets – now amount to S$88 billion. Assets under management for all wealth customers – including customers from DBS Treasures, DBS Treasures Private Client and DBS Private Bank – are now S$129 billion.
- RATINGS agency Moody’s said on Monday that the gradual decline in Singapore’s private home price index for the third quarter is credit positive for Singapore banks as it relieves pressure on bank asset quality. “Further price increases would have increased the risk of a real estate price bubble bursting,” Moody’s said in its credit outlook noted on Monday, commenting on the Urban Redevelopment Authority’s flash estimate released last week “Despite a few isolated cases driving a small increase in problem home loans in second-quarter 2014, we expect the asset quality of housing loans to only deteriorate mildly but still remain robust this year and next owing to stable economic growth, low unemployment and a small increase in interest rates,” it added.
STOCK RECOMMENDATION :
- BUY CITY DEVELOPMENT LTD ABOVE 9.470 TG 9.530, 9.600, 9.700 SL 9.390