Ascott Residence Trust Posts S$45.1m Distributable Income For 2007

Source : Channel NewsAsia, 23 January 2008

Mainboard-listed Ascott Residence Trust has posted better-than-expected full year earnings with distributable income for 2007 came in at S$45.1 million, an 83 per cent jump year-on-year and 12 per cent higher than its own forecast.

Key drivers for Ascott Residence Trust's good results were its strong overall operating performance and the acquisition of properties in Ho Chi Minh City, Manila, Melbourne and Tokyo.

Distribution per unit (DPU) for the year ended in December is 7.7 cents, a 47 per cent rise over the previous year.

For the fourth quarter, DPU is 2.12 cents, an increase of 28 per cent year-on-year.

And the property trust is confident that it will see strong growth this year despite the credit crunch.

Its CEO Chong Kee Hiong said, "I think the challenge is actually the equity market, so fund raising through equity will be a challenge. However, we are well positioned. Our gearing is only about less than 34 per cent, way below the 60 per cent limit we can gear up to."

The trust will continue to source for yield-accretive acquisitions in countries such as India and Thailand. Its portfolio is expected to grow to S$1.53 billion upon completion of its latest acquisition in Perth.

Mr Chong said, "Perth is a very good market, the growth last year has been 6.3 per cent versus the national Australian average of about 3.2 per cent. And this mainly comes from mining business. And mining business, as you know, is very long term in nature, so the growth will not be just for a year. So we think now is the right time to go into the Perth market."

The acquisition is expected to be completed in the second quarter of this year. - CNA/ac

Bankrupts To Be Barred From Casinos In Singapore

Source : Channel NewsAsia, 23 January 2008

People who are bankrupt will not be allowed to enter the future casinos in Singapore.

Recipients of Public Assistance or Special Grant are also barred from the casinos.

These two groups are excluded under the "Third Party Exclusion" in the Casino Control Act (2006).

This means that about 28,000 people are expected to be excluded from the casinos under the "Third Party Exclusion".

This was announced by the Ministry of Community Development, Youth and Sports (MCYS) on Tuesday.

MCYS is currently working with the National Council on Problem Gambling on the regulations and procedures to administer the "Third Party Exclusion".

There are altogether three types of exclusion orders.

Besides the "Third Party Exclusion", the other two types of exclusions from the casinos are Self-Exclusion and Family Exclusion. - CNA/ms

MM Lee Uncertain How A Possible US Recession Might Affect S'pore

Source : Channel NewsAsia, 23 January 2008

SAUDI ARABIA: Singapore's Minister Mentor Lee Kuan Yew said he is not certain what impact a possible US recession will have on Singapore.

Although it is not clear whether financial markets will take up to two years to recover from the ordeal, Mr Lee said he feels that China and India may provide some cushion for the slowdown in the US.

Asian stock markets took a beating early this week amid mounting concerns of a possible US recession.

As fund managers adjust their portfolios, the minister mentor said the real strategy is to look beyond the actions of investors and study how each economy performs amid a drop in American demand.

"I do not believe the Chinese economy is immune to a US slowdown, nor is the Indian economy. But I believe they are now much less... influenced by US recession because they've got enough going in their own internal economy. They can increase investments in infrastructure; they can increase consumption; they can increase all their projects and keep the economy buoyant," he said.

Wrapping up his five-day visit to Saudi Arabia, Mr Lee said if China can maintain economic growth at around eight to nine per cent a year, then it could weather the economic storm well.

How well Singapore does, he said, will depend on how other economies fare, though he feels Singapore should be able to ride on the healthy performance of China and India.

"Our total trade is 300 per cent of our GDP (gross domestic product). So when the external trade goes down, you tell me how we buffer ourselves. But the external trade may not go down so dramatically because of India and China," he said.

Mr Lee said the current situation is unlike the Asian financial crisis in 1997, when China and India were almost immediately affected. - CNA/ac

PM Lee Confident About Singapore's Economy

Source : Channel NewsAsia, 23 January 2008

PARIS: Singapore's Prime Minister Lee Hsien Loong said Singapore and Asia can weather the storm, should the US go into a recession.

He made the comment at a breakfast meeting with 40 businessmen from the French Business Confederation as he wrapped up his three-day official visit to Paris.

Related Video Link - http://tinyurl.com/2reee7

The financial markets in the West have been hit by the US sub-prime problems, and that in turn has affected Asia, including Singapore.

Although a few Asian banks have some exposure to bad loans in the US, Mr Lee said most had only limited direct exposure.

"This is positive for Asia because if the Asian banks have also been deeply engaged, then we would have the problem, not only imported to us, but on our door-step. But fortunately, it does not appear to have happened," he said.

Giving his assessment, Mr Lee said the economies of China and India will continue to grow despite what happens in the US, and will help give a boost to the Asian region.

For Singapore, an open economy, Mr Lee said it will feel the impact of what's happening in the US, but there are several positive trends to help the country ride through the storm, such as having new investments and major construction projects that are currently underway.

On how Singapore's growth would be affected, he noted the country's economy grew 7.5 per cent last year, and Singapore is maintaining its official forecast of 4.5 to 6.5 per cent growth for now.

Mr Lee said, "We'll watch the situation closely and will update the forecast if necessary. We should not have a knee jerk reaction and lose our bearings in the middle of dramatic market volatility. We've had four years of strong and above-strength growth in Singapore."

He also said Singapore and Asian countries can weather this financial storm, unlike the 1997 Asian financial crisis. "We got through that. That was all around us, right in Asia, we were at ground zero. And this is something which is broader. But in Asia, I think we are stronger and better prepared and we will weather it."

Mr Lee reassured French businessmen that despite current financial volatility, Asia is a growing market with ample opportunities. - CNA/ac

Public Tender Of Site At West Coast Crescent May Fetch Up To S$112m

Source : Channel NewsAsia, 23 January 2008

A 1.2-hectare residential site at West Coast Crescent is up for sale by public tender.

Property consultants Knight Frank expects the 99-year leasehold parcel to fetch up to S$112 million.

This will work out to S$310 per square foot per plot ratio.

The site opposite West Coast Park has a maximum permissible gross floor area of 33,600 square metres.

There is a height limit of 36 storeys.

According to Knight Frank, up to 300 units can be developed on the site.

It expects the units to be sold at up to S$780 per square foot. - CNA /ls