SG Morning Highlights | CapitaLand Investment Sells 50% Stake in Ion Orchard to CapitaLand Integrated Commercial Trust
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Tuesday; STI up 0.39%
●Land Betterment Charge Revisions Indicate Weaknesses in Singapore Property Market
●Good Class Bungalows Dominate Singapore's Luxury Home Market in Early 2024
●Stocks to watch: CapitaLand Investment, Silverlake Axis, Ossia International
●Latest share buy back transactions
- Moomoo News SG
Market Snapshot
Singapore shares opened higher on Tuesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.39 percent to 3476.71 as at 9:15 am.
Advancers / Decliners is 108 to 76, with 112.07 million securities worth S$198.63 million changing hands.
Breaking News
Land Betterment Charge Revisions Indicate Weaknesses in Singapore Property Market
Recent revisions to Singapore's land betterment charges (LBC), particularly a 5.4% average reduction for non-landed properties, signal underlying weaknesses in the property market, according to real estate experts from JLL and Huttons. These adjustments reflect a subdued land sales market, influenced by high interest rates, escalating construction costs, and moderate interest in new property launches. Despite these challenges, experts do not foresee a significant immediate impact on market activities. However, potential rate cuts by the US in September could improve borrowing conditions, potentially invigorating the market with increased buyer loan capacity and a subsequent rise in property demand and prices.
Good Class Bungalows Dominate Singapore's Luxury Home Market in Early 2024
In the first half of 2024, Good Class Bungalows (GCBs) led the charge in Singapore’s luxury real estate market, accounting for 52.9% of the detached house sales quantum. According to Edmund Tie, the overall transaction volume for landed luxury homes remained stable with 43 units sold, though the total transaction value surged by 14.7% to $803.8 million, driven by higher transaction values per unit. The significant activity in the GCB segment underscores the enduring appeal and value of these prestigious properties in Singapore's high-end housing market.
Stocks to Watch
$CapitaLandInvest (9CI.SG)$: CapitaLand Investment (CLI) has entered into an agreement to sell a 50% interest in the prestigious Ion Orchard shopping mall and its connecting underpass, Orchard Link, to CapitaLand Integrated Commercial Trust (CICT) for S$1.1 billion. The transaction will be financed through proceeds from a private placement and a preferential offering, as announced by CICT’s manager on Tuesday. Following the news, shares of CLI saw a slight decrease, closing at S$2.69, down 0.7%, while CICT units rose by 0.5% to S$2.13 before a trading halt was requested on Tuesday morning.
$Silverlake Axis (5CP.SG)$: Silverlake Axis announced the appointment of PrimePartners Corporate Finance as its independent financial adviser (IFA) to guide the company through its proposed privatization offer. Led by Chairman Goh Peng Ooi, the offer aims to privatize the company at S$0.36 per share in cash, with an alternative option for shareholders to receive S$0.30 per share plus a redeemable preference share. The privatization, driven by the controlling shareholder Zezz FundQ, seeks to provide Silverlake Axis with enhanced management flexibility and address the challenge of low trading liquidity for shareholders. The company's shares remained unchanged at S$0.375 following the announcement.
$Ossia Intl (O08.SG)$: The Goh family has successfully increased their shareholding in Ossia International to 85.9% following the closure of their privatization offer on August 30, 2024. This acquisition, led by executive chairman George Goh along with non-executive director Goh Ching Lai and CEO Goh Ching Huat, signals a significant step towards delisting the company. The family cites the benefits of privatization as providing shareholders the chance to realize their investment at a premium without brokerage fees, addressing the low trading liquidity, reducing compliance costs, and enhancing management flexibility, especially as the company does not foresee the need for equity capital markets in the near future. The offer was made at S$0.145 per share, slightly below the closing price of S$0.146 on the announcement day.
Share Buy Back Transactions
Source: Business Times, SGinvestors.io, Business Review
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Ah-Liam : left pocket to right pocket?