SG Morning Call | Singapore Stocks Open Lower; ESR-Reit Sells Eight Non-Core Singapore Assets for S$338.1 Million

Market Snapshot

Singapore stocks opened lower on Monday. STI fell 3%; HPL and HPH Trust rose 2%; Sembcorp rose 0.5%; DBS rose 0.2%; OUE Healthcare fell 4%; NIO and Keppel fell 1%; Singtel fell 0.9%; OCBC fell 0.4%.

Stocks in Focus

$ST Engineering(S63.SI)$: Its United States subsidiary, VT San Antonio Aerospace, was one of several companies named in a wrongful death lawsuit on Dec 3. Filed in Kentucky, the lawsuit alleged the maintenance, repair and operations unit’s negligence when maintaining the aircraft. It had performed maintenance on the aircraft from Sep 3 to Oct 18. The company will not comment on pending litigation or legal proceedings and will fully cooperate with authorities in the investigation. Shares of ST Engineering closed 1.6 per cent or S$0.13 higher at S$8.34 on Friday.

$ESR-Reit(9A4U.SI)$: The Reit’s manager on Monday announced a proposal to divest eight non-core Singapore assets for S$338.1 million as part of its ongoing portfolio rejuvenation and capital recycling efforts. The S$338.1 million price tag represents a 2 per cent premium to the independent valuation of the properties as at Nov 30. The divestment is a part of the Reit’s strategy to divest non-core assets in its portfolio, particularly those with short land lease tenures. Units of ESR-Reit rose 0.7 per cent to close S$0.02 up at S$2.74 on Friday.

$OUE Real Estate Investment Trust(5WA.SI)$ (Reit): The manager announced on Friday that it has entered into a S$100 million unsecured loan facility agreement. The loan will be used to finance capital expenditure, working capital needs, and general corporate funding purposes. It may also be used to refinance the Reit’s other existing unsecured loan facilities, and cover the fees and expenses associated with obtaining the facility. The manager did not elaborate on the maturity date or other details of the facility. Units of OUE Reit closed flat at S$0.35 on Friday, before the news.

$Hutchison Port Holdings Trust(P7VU.SI)$ (HPH): Its trustee-manager said that land currently held by one of its subsidiaries will be acquired by the Chinese government for 15.6 million yuan (S$2.9 million). Around 7,775 square metres of land in Shenzhen owned by Yantian International Container Terminals (YICT) will be expropriated by the municipal government. YICT is 56.4 per cent owned by HPH. Units of HPH Trust closed up 2.4 per cent or US$0.005 at US$0.21 on Friday, before the announcement.

SG Local News

ESR-Reit Sells Eight Non-Core Singapore Assets for S$338.1 Million in Distribution Dilutive Divestment

The manager of ESR-Reit on Monday (Dec 15) has signed a deal to divest eight non-core Singapore assets for S$338.1 million as part of its ongoing portfolio rejuvenation and capital recycling efforts.

The sale to unrelated third parties represents a 2 per cent premium to the independent valuation of the properties as at Nov 30, and is expected to lower distribution. The buyers are managed by affiliates of Brookfield Asset Management.

“By realising value from non-core assets, we continue to reduce the impact of land lease decay on our net asset value,” said Adrian Chui, CEO and executive director of the manager.

Hongkong Land to Launch $6.2 Billion Singapore Private Real Estate Fund

Property group $Hongkong Land(H78.SI)$ said on Friday it will launch a Singapore private real estate fund with more than S$8 billion ($6.19 billion) in assets under management at inception.

The fund, named Singapore Central Private Real Estate Fund (“SCPREF”) will focus on managing commercial properties in the city state, and is expected to be the largest private real estate fund in Singapore, the company said.

The company did not specify the time of launch for the fund, but said it expects to make an announcement in the first quarter of 2026 on the fund establishment.

Singapore Signs US-Led Pax Silica Declaration on AI, Global Tech Supply Chain

Singapore and six other countries have signed an agreement to collaborate on artificial intelligence (AI), tech supply chains and infrastructure at the conclusion of the first Pax Silica Summit convened by the United States.

The non-binding Pax Silica Declaration’s other signatories are Australia, Israel, Japan, South Korea, Britain and the US.

The declaration “reflects a shared commitment to advance prosperity, technological progress and economic security”, the Ministry of Digital Development and Information (MDDI) said in a statement on Sunday (Dec 14).

Grab, Scatech, Wee Hur Among Those Enabling Legacy Giving Through Donor-Advised Funds

What do ride-hailing company Grab, construction firm Scatech Engineering and property developer Wee Hur have in common?

The families behind these companies have turned to donor-advised funds (DAFs), set up through government-affiliated non-profit Community Foundation of Singapore (CFS), to engage in structured legacy giving for generations to come.

DAFs allow donors to commit a minimum amount of S$200,000, and select causes to support. CFS helps them identify beneficiaries and programmes to support via its more than 400 charity partners – all of which have Institution of a Public Character status.