Biggest Malaysia state fund said to renew exchangeable bond sale plan
State-owned PNB is working with financial advisers on the potential offering of exchangeable bonds, which are notes backed by shares in a listed company, according to the people, who asked not to be identified because the process is private. It would be PNB's first exchangeable bond sale, they said.
PNB is still deliberating and has not decided on the underlying stock or size and timing of a sale, the people said.
In response to a Bloomberg News query on the matter, PNB said it continuously evaluates options as part of an asset diversification strategy aimed at delivering sustainable returns.
PNB had RM347 billion (S$106 billion) assets under management as of Dec 24. Its investments include stakes in Malayan Banking, conglomerate Sime Darby and developer SP Setia. PNB also has holdings in Axiata Group, CIMB Group Holdings and Telekom Malaysia, among others.
PNB explored an exchangeable bond sale in 2019, Bloomberg reported, but a change in leadership and the Covid pandemic put the brakes on that plan. BLOOMBERG
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Business Times
5 hours ago
- Business Times
UOL has enough catalysts to remain a top pick despite the stock's 39% gain year to date
[SINGAPORE] Property developer UOL has been on a bull run recently. And it might be entering a new growth phase. In the year to Tuesday (Aug 19), the stock is up 39 per cent at S$7.19, after hitting a multi-year high of S$7.30 on Aug 14. Already, Singapore's largest developer by market capitalisation has been busy building up its pipeline of prime residential sites, completing major asset enhancement initiatives and redeveloping its Central Business District (CBD) assets. UOL launched Watten House in March last year, Meyer Blue last October, Parktown Residences this February and Upperhouse this July. These projects all sold between 50 and 87 per cent of their units over their launch weekends. The group has a Holland Drive project, Skye at Holland, for which it is planning to start previews in September. UOL will also be redeveloping Thomson View Condominium, which it bought together with CapitaLand Development in October 2024, into a 1,240-unit project at a later date. So far, UOL has spent close to S$4.2 billion together with its joint venture partners to acquire land for these six projects. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The developer had been comparatively subdued in the period from 2020 to 2023, when it launched one residential project a year in Singapore. Even before the Covid-19 pandemic, it was not as active, with only two launches a year between 2018 and 2019. In its latest financial results for the first half of 2025, UOL reported a 58 per cent increase in net profit to S$205.5 million. Revenue from property development increased by 40 per cent to S$210 million compared to the year-ago period, due to progressive revenue recognition from Pinetree Hill, Watten House and Meyer Blue. In the second half of the year, revenue recognition from UOL's four newest condominium launches will likely start trickling in, which should bode well for the developer's full-year results. Parktown Residences will likely deliver a big boost. The integrated development sold more than 87 per cent of its 1,193 units during its launch in February 2025. This remains one of the highest take-up rates for a new launch this year. Upperhouse at Orchard Boulevard, which was launched in July, also did well. It was the best-selling Core Central Region project since Midtown Modern was launched in 2021, moving 162 or more than 53.8 per cent of its 301 units at an average price of S$3,350 per square foot (psf). This record has since been beaten by Wing Tai's River Green, which sold 88 per cent of its units at an average of S$3,130 psf in the same month. UOL's success with its recent projects is testament to how the developer is able to appeal to both the mass market and luxury segments of buyers. Some of these projects, such as Upperhouse and the redevelopment of Thomson View, are also located along the newly opened Thomson-East Coast Line, bringing connectivity which buyers will appreciate. CGS International, Citi and DBS Research all ranked UOL as their top pick among listed Singapore developers in reports published earlier this year. Solid margins DBS analysts Derek Tan and Tabitha Foo rated UOL a 'buy', with a target price of S$8.50 in March. They noted how both Upperhouse and Skye at Holland were sites acquired at significantly lower land costs, which could drive an expansion in UOL's development margins and support higher profitability in the medium term. The site on which Upperhouse sits was acquired for S$1,616 psf per plot ratio (ppr) in February 2024. This is 32 per cent lower than the S$2,377 psf ppr that SC Global and Hong Kong-listed FEC Properties and New World Development paid in May 2018 for a nearby site, which is now Cuscaden Reserve. UOL bought the site on which Skye at Holland will be built at S$1,285 psf ppr in May 2024. This was 32 per cent lower than the S$1,888 psf ppr paid by a consortium led by Far East Organization for the site next to it – which has since been developed into One Holland Village. For Skye at Holland, as long as UOL is able to move its units at S$2,700 psf, it should be able to achieve a comfortable 20 per cent margin, DBS Research estimated. Recurring income, diversified streams UOL's diversified portfolio and its strong presence in the commercial and hotel industries allow the group to generate recurring income streams, OCBC Investment Research said in August after the group reported earnings for H1. Besides its property development business, UOL also has its hospitality business, which it controls through its subsidiary Pan Pacific. Its other subsidiary Singapore Land Group (SingLand) owns an extensive portfolio of prime office and retail assets in Singapore, Australia, China and the UK. In H1, UOL's Singapore office portfolio had a committed occupancy of 96.6 per cent, while its retail portfolio had a committed occupancy of 97.3 per cent. Hotel occupancy edged up to 77 per cent in H1. Now that the developer has mostly completed its asset enhancement initiatives for Singapore Land Tower, this should lead to positive rental reversions as the supply of Grade A office space remains tight in the CBD. Piling works also began last year for SingLand's redevelopment of its iconic Clifford Centre. When completed in 2028, the premium Grade A asset will have more than 52,000 square metres of office and retail space and will be directly connected to the Raffles Place MRT station. And if UOL and SingLand proceed with the proposed redevelopment of Marina Square, DBS Research believes the gross development value of the asset could increase to 4.5 times its existing value of S$1.05 billion upon completion. 'This key value-unlocking activity is expected to drive the share prices of both groups higher,' DBS said. As for its hotel segment, UOL recently completed asset enhancement initiatives for Parkroyal Parramatta in Sydney and Pan Pacific Perth in May 2025. Both hotels are expected to benefit from the Australian Trade and Investment Commission's projected 41 per cent increase in tourism arrivals in Australia between 2024 and 2028, which makes UOL's strategic expansion into the Australia hospitality market timely. Will UOL maintain its lead? UOL's latest financial results have been strong, but chief executive Liam Wee Sin said the group will remain disciplined in its approach to portfolio management, project execution and capital deployment in a world adjusting to a new trade order. In May, Citi analyst Brandon Lee flagged several downside risks for UOL, such as cap rates expanding should interest rates rise, an economic slowdown, fall in tourism arrivals and the continuation of cooling measures for a prolonged period. For H1, Singapore's gross domestic product growth averaged 4.2 per cent year on year, but the Ministry of Trade and Industry foresees 'significant uncertainty and downside risks' in H2, given the lack of clarity over the US' tariff policies. There is, however, a silver lining in sight, as interest rates have been falling since the start of the year. In January, the three-month compounded Singapore Overnight Rate Average was around 3.02 per cent. As at Tuesday, it was around 1.7 per cent. The rate may moderate further, as the US Federal Reserve is expected to cut interest rates in September. Lower interest expenses could drive UOL's return on equity (ROE) higher. DBS Research estimates that a decline of 100 basis points in floating debt could lead to a 13 percentage point increase in ROE for UOL based on a sensitivity analysis. Given the low interest rate environment and the value that can be unleashed, perhaps it is a good time for UOL to redevelop Marina Square, should it obtain written permission from the Urban Redevelopment Authority to do so. While its net gearing ratio has inched up slightly in H1 to 0.25 from 0.23, the group's balance sheet still remains healthy, which should allow it to maintain its strong momentum for the rest of the year.
Business Times
7 hours ago
- Business Times
Historic Moulmein Road site draws 13 bidders for master tenancy of cluster, with bids for monthly rent of up to S$388,800
[SINGAPORE] A state tender for a cluster of heritage properties in Moulmein Road drew a strong turnout when it closed on Aug 6, attracting 13 bids vying for master tenancy of the 44 buildings on the site. The state-managed buildings stand in a park-like compound on a 985,350 sq ft site with an estimated gross floor area (GFA) of 139,705 sq ft. Of the 44 buildings, 23 are subject to addition and alteration guidelines to retain the character of the site. The other 21 buildings cannot be demolished, but will be exempted from these guidelines. The cluster was home to the National Centre for Infectious Diseases up to 2018, and supported Covid operations until it was returned to the state in 2023. It was put up for tender by the Singapore Land Authority (SLA) in May. A compound has been envisioned as a 'dynamic lifestyle hub' catering to families and multi-generational communities. Permitted uses include serviced apartments such as co-living spaces; wellness and fitness facilities such as outdoor pickleball or tennis courts; pet-friendly services; urban farms; an art gallery; and education programmes. About a third of space is to be set aside for food and beverage (F&B) and retail outlets. The 13 bids received exceeded expectations. Savills Singapore's executive director of research and consultancy Alan Cheong said: 'In view of the size of the land and a limited GFA, we were expecting about five bids.' A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The highest offer of S$388,800 a month came from Country City Investment, a property investment company which has, since 2007, managed parts of the SLA's Dempsey Hill cluster, which has been branded as a lifestyle enclave. The lowest bid of S$18,889 a month came from S1F, an entity linked to contractor Sunray Woodcraft Construction. Other bidders included Cherrylofts Resorts and Hotels (S$382,000), which had also bid in an earlier SLA tender for a holiday chalet site in in Pasir Ris, and SA31 (S$290,000), an entity linked to IndoChine Group's chief executive officer Michael Ma. Developer TS Group offered S$168,000, and marina developer SUTL Enterprise bid S$160,661. The tender evaluation will give 40 per cent weightage to the bid price, and 60 per cent to the concept quality. SLA said this is to encourage 'compelling concepts and forward-looking proposals' from prospective tenderers. Huttons Asia senior director of data analytics Lee Sze Teck said the site's central Novena location likely fuelled the strong turnout. Savills' Cheong noted that the top bid of S$388,800 translates to about S$0.39 per square foot (psf) on land, and S$2.78 psf a month on GFA. In comparison, median retail rents in District 11 in Q2 were over S$8 to S$9 psf. Cheong said: 'Although the successful bidder will have to fork out capital expenditures and very likely have to reinstate the property to its original condition at the end of the lease, the base rent is still low enough to make it feasible.' Overall, he predicts that the site could yield 'something positive' for the occupier if the average passing rent is set at S$8 psf or more a month. Noting that the cost of maintaining the grounds would be high, and that the tenancy was on a '5+4 tenure scheme', that is, for a five-year term, renewable for another four, he added: 'It is the additional four years that may form the bonus pool for the winner, because the time taken to renovate the project would eat up a significant chunk of the first five years of the lease.' Over the last few years, the SLA has offered more heritage properties for private management, in a move to foster adaptive reuse and bring fresh commercial potential to Singapore's older buildings. Recent master tenancy tenders for SLA properties have attracted a wide range of investors and operators, drawn to the unique attributes of the state properties. A co-living concept at 26 Evans Road pulled in a staggering 25 bids – an SLA record – in October 2023. It was eventually awarded to turnkey solutions provider Cover Projects, which submitted the second-highest bid of S$265,000 in a field that ranged from S$63,000 to S$319,000 a month. Another state property in Kim Yam Road drew 11 bids when its tender closed in June 2022. The Lo & Behold Group, a hospitality F&B business founded by UOB's Wee family scion Wee Teng Wen, won the tender despite its bid of S$400,000 a month being the second-lowest. The highest bid came from ACL Construction, at S$806,722. Today, the site is home to New Bahru, a creative lifestyle hub that showcases homegrown brands in food, retail, art, wellness, and design. In the north A cluster of 20 heritage 'black-and-white' bungalows in Sembawang was also offered earlier this year, in a tender that closed in June with five bids. The top bid of S$56,000 a month came from construction company Eco Energy. The group won another state tender for a two-storey heritage shophouse on Hindoo Road – the first state-owned building to be repurposed for co-living – with a top bid of S$68,000 a month in August 2023. Other bidders included TS Group (S$37,600), logistics and leasing company Peck Tiong Choon (S$31,500), and real estate group Top Global (S$8,008). Rounding up the bids was A & C Consultancy with a bid of S$20 a month. The two-storey black-and-white bungalows are in Admiralty Road, Falkland Road, Auckland Road West and Fiji Road. They collectively span around 245,300 sq ft of land, with an estimated GFA of 94,945 sq ft. The tenancy is also on a 5+4 tenure scheme, similar to the Moulmein Road parcel. Unlike Moulmein Road, however, the Sembawang properties are limited mainly to serviced apartment use, although up to 9,580 sq ft of GFA can be given over to F&B and retail use. Huttons' Lee said this could explain the more moderate level of interest in the site. The minimum stay for a serviced apartment is a week, and a hotel licence is not required. SLA has also suggested multi-generational and senior co-living concepts for this site, to promote 'senior living, active ageing and interaction and activities across generations'. Wong Xian Yang, Cushman & Wakefield's research head for Singapore and South-east Asia, said the majority of co-living developments are in the central region, not in suburbs such as Sembawang. The central location means operators can tap into a diverse tenant pool comprising professionals seeking proximity to the central business district and international students attending nearby universities. 'Given the lease tenure, the eventual winner is unlikely to embark on extensive capex works, and would likely prioritise bringing the site to be operationally ready,' he said. The proposals for the two sites are being evaluated. The Moulmein Road tender is expected to be awarded on Nov 30, and the Sembawang site, on Oct 31.
Asia News Network
8 hours ago
- Asia News Network
Vietnam emerges as Asia's rising economy, warning signs it may overtake Thailand on all fronts
August 19, 2025 BANGKOK – Vietnam has unveiled an ambitious national development plan to invest the equivalent of 10% of GDP — around 1.5 trillion baht — in infrastructure projects. The programme, comprising 250 infrastructure and housing developments nationwide worth 1.28 quadrillion dong (1.5 trillion baht), aims to achieve 8% GDP growth in 2025 and sustain double-digit growth in subsequent years. The ultimate target is to transform Vietnam into Asia's next 'tiger economy' and reach high-income status by 2045. Vietnam's economy has long relied on exports and foreign direct investment (FDI), leaving it vulnerable to external shocks such as the recently imposed retaliatory tariffs by US President Donald Trump. To reduce this risk, Hanoi is now stimulating domestic demand through massive infrastructure spending. At the end of 2024, new Communist Party Secretary-General To Lam announced the start of a 'new era of development', signalling Vietnam's most sweeping economic reform in decades. The government's strategic vision is to emulate South Korea and Taiwan by lifting millions out of poverty and joining the ranks of Asia's most advanced economies. Vietnam's rapid rise is underscored by its income growth: per capita annual income in Hanoi has jumped from US$1,200 in 1990 to US$16,385 today, fuelled by the country's transformation into a global manufacturing hub. However, challenges remain. Vietnam's traditional low-cost, export-driven growth model is slowing, forcing a shift towards high-tech industries, green energy, and private sector expansion. TDRI warns of negative implications for Thailand Nonarit Bisonyabut, Senior Research Fellow at the Thailand Development Research Institute (TDRI), warned that Vietnam's progress should concern Thailand. Thailand once had its own national strategy to achieve high-income status by 2036 under Prime Minister Gen Prayut Chan-o-cha, but this ambition has faded amid COVID-19 and other crises. He explained that prior to COVID-19, Thailand's potential growth rate was 3.6% annually. Post-pandemic, this has slowed to 2.7–3.0%, delaying high-income status until 2088–2093, around 7–12 years later than previously planned. 'Thailand had once tried to keep pace with rapidly developing countries such as China and Malaysia, which are on track to achieve high-income status by 2025 and 2030 respectively. Now, Thailand risks achieving the milestone only around the same time as Vietnam — in 2088–2093 — despite having set the target decades earlier,' Nonarit said. He argued that Vietnam is implementing evidence-based reforms, such as bureaucratic restructuring to improve efficiency, enabling rapid economic advancement. In contrast, Thailand is slow to act despite being aware of its problems. Most of Thailand's current projects focus on short-term populist measures or unsustainable ventures, such as cannabis liberalisation, casinos, and alcohol deregulation, as well as the Land Bridge project, which several studies have deemed unviable. 'Looking ahead, China and South Korea are prioritising Vietnam over Thailand. Both nations are winners in the digital age — with China rising alongside the US as an AI leader. If Thailand fails to reform seriously, it risks losing competitiveness and may eventually fall behind Vietnam,' Nonarit concluded. FTI urges Thailand to act before being overtaken on all fronts Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), told Krungthep Turakij that Vietnam is undergoing a major adjustment, taking advantage of changes in US tariffs and global trade rules. Vietnam is far more dependent on the US export market than Thailand, with over 30% of its exports going to the US compared to Thailand's 18%. At the same time, Vietnam has had to contend with transshipment tariffs rising as high as 40%. 'Vietnam knows the world has changed, so it must rely more on itself and push through structural reforms,' Kriengkrai said. 'They've started with bureaucratic reforms, cutting ministries and expenses to reduce redundancy. They know if they don't restructure, they'll lose out in global competition. This is a good example Thailand should follow.' He warned that if Vietnam succeeds first, Thailand will inevitably be affected. 'Vietnam already has stronger competitiveness, better skills, higher GDP growth and export figures. That's why they're moving urgently. If we only talk but don't act, or move too slowly, Thailand will lose ground and find it harder to compete.' Still, Kriengkrai stressed it is not too late for Thailand, provided it learns from Vietnam and acts decisively. 'This crisis could be a turning point, an opportunity to reform ourselves, just as Vietnam has. Thailand still has strengths and advantages, but if we fail to act, we will keep falling behind. We must cut obstructive laws and all sectors must cooperate, with the government leading reforms for sustainable progress.' Thai Chamber of Commerce calls for urgent infrastructure drive Poj Aramwattananont, Chairman of the Thai Chamber of Commerce, noted Vietnam's heavy investment in infrastructure as a strategy to sustain growth and counter Trump-era tariffs. 'It's a significant move. The Thai government must also act quickly on economic restructuring and infrastructure projects, like high-speed rail, which has been delayed and still lacks airport connections. Economic stimulus measures must also be accelerated.' He acknowledged Vietnam's effort to attract investment through infrastructure, but maintained Thailand still holds appeal, with strengths such as its location at the centre of CLMV, its role as a link between two oceans, robust manufacturing and exports with strong upstream, midstream and downstream industries, as well as its push into new sectors. 'But investors are hesitant because they don't see clear government policies. The private sector is ready to cooperate with the government, but we need stability and confidence,' Poj said. He cautioned that Thailand's GDP has slowed after years of strong growth, much like China, which once grew at double digits but is now decelerating. 'Vietnam is growing from exports and rolling out major infrastructure projects. We are too slow. We need faster execution, clear policies, and political stability.' NESDC: Thailand's infrastructure is more advanced than Vietnam's Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council (NESDC), said Thailand already has a long-term infrastructure plan in place, covering transport, water management and energy, with investments steadily rolled out for decades. 'This makes Thailand better prepared compared to Vietnam, which is rushing to catch up now because many of its infrastructure systems were still problematic,' Danucha explained. Thailand's infrastructure remains a strength, though investors are increasingly demanding expansion in clean energy (RE100). Investors, especially in the Eastern Economic Corridor (EEC), are seeking more renewable energy options. 'Thailand has sufficient overall power reserves, but the private sector's demand for clean electricity is still growing.' He stressed that Thailand's infrastructure investment plans are already established, but must be implemented in line with budget availability, the public debt-to-GDP ratio, and remaining fiscal space.
