SG Morning Call｜Sembcorp Wins Solar Energy Storage Hybrid Project in India; Cromwell European REIT Secures Five New Leases

Market Snapshot

Singapore stocks opened lower on Wednesday. STI fell 0.2%, Cosco rose 0.7%, Sembcorp rose 0.2%.

Stocks to Watch

Cosco Shipping : The logistics management service provider began work on Phase Two of its logistics hub on Jurong Island on Tuesday. Upon completion, the hub’s capacity will be nearly double of what it is at present, with an additional 2.5 hectares of land and approximately 62,500 square metres of built-up area. The expanded portion of the facility aims to address the growing demand for specialised logistics services serving the petrochemical and chemical sectors on the island, which houses Singapore’s major petrochemical hub. Shares of Cosco Shipping closed 0.8 per cent or S$0.001 higher at S$0.135, before the announcement.

Keppel DC Real Estate Investment Trust (Reit) : Its manager announced on Wednesday that 148.4 million new preferential offering units have been issued at S$2.03 apiece, bringing the total number of units in issue to 2.2 billion. The new units will begin trading on the mainboard of the Singapore Exchange at 9 am on Wednesday. Units of Keppel DC Reit ended on Tuesday 0.5 per cent or S$0.01 higher at S$2.15.

Sembcorp Industries : The company’s renewables subsidiary Sembcorp Green Infra was awarded a build-own-operate project comprising a 150 megawatt (MW) solar photovoltaic project and a 300 MW-hour battery energy storage system (Bess). This represents Sembcorp’s first solar and Bess hybrid project in India, said the group on Wednesday. Shares of the group closed on Tuesday S$0.09 or 1.6 per cent down at S$5.40.

Cromwell European Reit (Cromwell E-Reit) : The Reit’s manager said it signed or renewed five leases in the fourth quarter of this year, spanning more than 78,000 square meters. On Wednesday, it said the signings mean the Reit is on track in keeping its portfolio occupancy rate at above 93 per cent for fiscal 2024. The leases are with new and existing tenants across its logistics and office portfolio in the Netherlands, United Kingdom, Germany and Denmark. Its units closed on Tuesday 0.01 euro or 0.6 per cent lower at 1.58 euros.

SG Local News

Singapore investors flock to Bali’s new green SEZ, plan to build luxury resort and school

Singaporean investors are eyeing opportunities in Kura Kura Bali’s newly established eco-focused special economic zone (SEZ), with plans to develop key projects such as a luxury resort and an international school.

Among the interested parties is the family-owned Tsao Pao Chee Group, led by its chairman Chavalit Frederick Tsao. The group recently signed a memorandum of understanding with Bali Turtle Island Development, the private developer of Kura Kura SEZ, with Tsao attending the signing ceremony in Bali last weekend.

DBS names CapitaLand Integrated Commercial Trust and Frasers Centrepoint Trust as top retail REITs going into 2025

Going into 2025, DBS Group Research analysts Geraldine Wong and Derek Tan say that they continue to prefer suburban retail REITs given clearer organic growth visibility. They have named CapitaLand Integrated Commercial Trust C38U(CICT) and Frasers Centrepoint Trust J69U(FCT) as their top sector picks.

Singapore’s retail scene has “beaten all odds” since the pandemic and in 2024, they say. Suburban retail sales stayed resilient above 15% to 20% even though there was lower traffic to malls, while centrally located malls enjoyed higher footfall and sales on the rebound of tourists.