Market Snapshot
Singapore stocks opened lower on Wednesday. NIO Inc., SGX and Keppel fell 1%; Wilmar Intl rose 1%.
Stocks in Focus
ESR REIT: The real estate investment trust (Reit) is set to buy five freehold logistics properties in Melbourne, Australia, for A$276.8 million (US$192.4 million). The acquisition will increase its distribution per unit by 4.3 per cent on a pro forma basis, the Reit’s manager said on Tuesday. The properties will be acquired from Frasers Property. The manager noted that the Australian logistics sector continues to benefit from favourable long-term structural tailwinds. Units of ESR-Reit ended 1.3 per cent or S$0.03 higher at S$2.34 before the announcement.
Frasers Property: The divestment of the five properties to ESR-Reit is part of its ongoing active portfolio management initiatives, said Frasers Property on Tuesday. The divestments are not expected to have a material effect on its net asset value per share and earnings per share for the current financial year, it added. Its Australian unit also is set to sell a retail centre for A$248 million (US$172.2 million) to PGIM’s Real Estate Investment Group and Assembly Funds Management. Shares of Frasers Property fell 0.9 per cent to close S$0.01 lower at S$1.09 before the announcements.
Foundation Healthcare: Shares of Foundation Healthcare will debut on the Singapore Exchange’s (SGX) mainboard on Wednesday. The initial public offering of Foundation Healthcare was 3.8 times subscribed, the company said on Tuesday. The Temasek-backed company said on Jul 1 that it was seeking to raise S$242 million on SGX, with an offer of 162.6 million shares at S$0.76 apiece.
SG Local News
Singapore Central Bank Looking to Introduce Protected Cell Company Corporate Structure
The Monetary Authority of Singapore has unveiled proposals for a protected cell company (PCC) framework designed to lower the cost and complexity of establishing captive insurance, insurance-linked securities and sovereign risk pool structures.
The proposals aim to support the growth of alternative risk transfer solutions and enhance Singapore's role as a risk management hub, MAS said in a press release on Tuesday.
Singapore Tells Developers to Keep Checks to High-Risk Buyers
Singapore’s housing regulator told property developers they should reserve enhanced anti-money laundering checks for higher-risk home buyers, clarifying that most purchasers don’t require additional scrutiny such as source-of-wealth and source-of-funds checks.
Real estate firms should take a “risk-proportionate” approach to customer due diligence, the Urban Redevelopment Authority said in a circular issued Tuesday. Standard measures like identity verification and screening are fine for most buyers, while enhanced checks are required only for those purchasers assessed to pose a higher risk of money laundering, terrorism financing or proliferation financing.
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