Singapore stocks to watch Monday: Property plays, SembMarine, Ascendas India, Hyflux

Singapore’s Marina Bay SandsSingapore’s Marina Bay Sands

These are the Singapore stocks to watch on Monday, 21 May 2018:

Property developers

Property stocks may be in focus after yet another collective sale was announced on Friday.

Chinatown Plaza on Craig Road was sold to a property unit of Singapore-based RGE for S$260 million, the Straits Times reported.

The deal marks another in a string of en bloc transactions over a period of months, suggesting a stronger pickup in the property market is afoot. Analysts have noted that when a building is sold en bloc, not only are those units taken out of the residential market, every unit owner is likely to buy at least one additional home and every tenant will need to find a new unit to rent, generating significant demand.

Sembcorp Marine

Sembcorp Marine said its subsidiary Sembcorp Marine Rigs & Floaters won a contract from Shell Offshore to build and integrate the hull, topsides and living quarters of the Vito semi-submersible floating production unit (FPU). The value of the contract wasn’t provided.

The contract wasn’t expected to materially impact earnings for the current financial year, the company said in a filing to SGX before the market open on Monday.

Frasers Logistics & Industrial Trust

Frasers Logistics & Industrial Trust said that the 333.2 million new units will be issued and begin trading on Monday at S$0.987 per unit as part of its private placement. That brings the total number of units in issue to 1.85 billion, the REIT manager said in a filing to SGX before the market open on Monday.

The units last traded at S$1.04.

Ascendas India Trust

Ascendas India Trust entered a forward purchase agreement with Phoenix Infocity to acquire two buildings, aVance 5 and 6, in aVance Business Hub in HITEC City, Hyderabad, the REIT manager said in a filing to SGX before the market open on Monday.

The aVance 5 is under construction and expected to be completed by 2019’s second half, while aVance 6 is completed and 98 percent leased to Amazon, the filing said. The buildings will be acquired together after the completion of aVance 5 and after required leasing levels of 90 percent are met, the filing said.

The REIT will provide construction funding of 8.874 billion rupees, or S$177.3 million, with the total purchase consideration including the construction financing not expected to exceed 13.5 billion rupees, or S$270 million.

The aVance Business Hub comprises 10 buildings, with nine completed; Ascendas India Trust has acquired four of them and has the right of first refusal on another four, in addition to the two buildings it now has a forward purchase agreement for, the filing said.

The REIT also entered a separate deal with Phoenix Infocity to acquire five additional buildings, individually as they are completed, in aVance Business Hub 2, a special economic zone next to aVance Business Hub, the filing said. The aVance Business Hub 2 will have seven buildings, to be developed over five to nine years, it said.

Hyflux

Hyflux requested a trading halt before the market open on Monday. No other information was provided.

In February, Olivia Lum Ooi Lin made a voluntary unconditional cash offer of S$0.1783 each for the shares of Hyfluxshop Holdings; at the time, she and parties acting with her controlled or owned 54.2 percent of the shares, the company said in a filing to SGX in February. Hyfluxshop shares were not quoted on any securities exchange and the offer would provide holders an opportunity to sell, the February filing said.

Frasers Hospitality

Frasers Hospitality, part of the Frasers Property Group, announced on Friday that it opened the Fraser Suites Dalian, as part of its plan to expand to 30 properties in China.

“Given the fact that 75 percent of China’s business travel spend is domestic, we will continue to grow our footprint in first- and second-tier cities,” said Choe Peng Sum, CEO of Frasers Hospitality, said in the statement on Friday.

Frasers Hospitality currently has a presence in 11 cities in China, and has 14 properties in the pipeline, the statement said.

Hyphens Pharma

Hyphens Pharma said it made a strong debut on Friday on the Catalist board. It opened at S$0.30 and closed at S$0.275, above the invitation price of S$0.26, the company said in a filing to SGX after the market close on Friday.

The public offer shares were around 152 times subscribed and the company raised net proceeds of around S$13.5 million from the invitation and the issuance of cornerstone shares to Nikko Asset Management, Qilin Asset Management and Maxi-Harvest Group, the statement said.