Market Snapshot

Singapore stocks opened higher on Tuesday. STI up 0.5%; OCBC up 0.9%; DBS up 0.8%; SIA up 0.6%.

Stocks to Watch

DFI Retail Group : The supermarket and retail store operator on Monday announced the divestment of its Singapore food business to South-east Asian retail conglomerate Macrovalue (Malaysia). Macrovalue will fully acquire Cold Storage Singapore, which comprises 48 Cold Storage stores, 41 Giant stores, as well as two distribution centres. The initial purchase price is S$125 million – subject to adjustments, with the transaction expected to complete in the second half of 2025, said DFI. Following the divestment, DFI will pivot its focus and resources in Singapore towards the Guardian and 7-Eleven businesses. Shares of DFI closed 4 per cent or US$0.09 higher at US$2.34 on Monday.

Frasers Centrepoint Trust : The manager on Tuesday announced it has entered into unit purchase agreements with FCL Amber and Bright Bloom Capital respectively, to acquire the South Wing of Northpoint City in Yishun for S$1.17 billion. The manager intends to finance the acquisition by utilising the net proceeds raised from the issuance of new equity launched on Tuesday. This comprises a private placement offering to raise approximately S$200 million, and a preferential offering to raise about S$200 million; debt financing; as well as the potential issuance of subordinated perpetual securities of approximately S$200 million. Units of FCT closed 0.5 per cent or S$0.01 higher at S$2.21 on Monday. The trust called for a trading halt on Tuesday morning

ESR Real Estate Investment Trust (ESR Reit) : The trust’s manager has completed the divestment of a logistics property in Singapore for S$6.8 million. This represents a 3.5 per cent premium above their valuation of S$6.6 million as at Dec 31, 2024. The property – 1 Third Lok Yang Road and 4 Fourth Lok Yang Road in Pioneer – has a 30-year lease that expires in December 2031. Net proceeds will be used to repay outstanding borrowings, finance potential acquisitions, asset enhancement initiatives and redevelopments, as well as fund general working capital requirements, the manager said earlier this year. Units of ESR Reit closed at S$0.245, down 2 per cent or S$0.005 before the news.

GuocoLand : The property developer has appointed Kevin Zhou as the new managing director of its wholly owned subsidiary GuocoLand China, effective today. He takes over from Peter Lee, who has been in the role since April 2022. Zhou was previously Keppel’s executive vice-president of business development in the real estate division. He will oversee GuocoLand’s business in China, including its portfolio of development and investment assets in the country. Shares of GuocoLand closed down 0.7 per cent or S$0.01 at S$1.47 on Monday, before the announcement.

Yeo Hiap Seng : The company announced on Tuesday (Mar 25) that its board chairman Daryl Ng will step down from his role after its upcoming annual general meeting on April 23. Ng will concurrently step down from his role as non-independent, non-executive director after the AGM, the company said. He has helmed the board as chairman since 2020 and will be succeeded by Na Wu Beng, who has served as deputy chairman and independent director since 2023. The counter ended Monday 1.7 per cent or S$0.01 lower at S$0.57.

SG Local News

More potential acquisitions, exclusive deals for Keppel DC Reit

The manager of Keppel DC Real Estate Investment Trust (Keppel DC Reit) plans to capitalise on sponsor Keppel’s intended expansion of its portfolio of data centres to a gross power capacity of 1.2 gigawatts (GW) in the near term, it said in the annual report released on Monday (March 24).

“(That) will form a pipeline of assets that Keppel DC Reit may potentially acquire. Moreover, Keppel’s established track record and the extensive network with industry players provide us with access to exclusive, off-market deals from third parties,” said Christina Tan, chairman of Keppel DC Reit’s manager.

“We will continue to optimise our capital structure to support our growth ambitions,” she added.

Yangzijiang Shipbuilding completes acquisition of 34% equity stake in Tsuneishi Group’s shipbuilding unit

Yangzijiang Shipbuilding has completed the capital injection for a 34% equity stake in Tsuneishi Group (Zhoushan) Shipbuilding (TZS), making the company a 34% owned associate.

Prior to the acquisition, TZS was a wholly owned subsidiary of Tsuneishi Holdings. 

The acquisition was first announced on Sept 12, 2024, for a purchase consideration of RMB833.1 million ($153.62 million), based on a willing-seller, willing-buyer agreement.