News Highlights Thursday 8 May 2008

HSBC extends lease of HQ for $143m
HSBC Bank is extending the lease of its headquarters at Collyer Quay for another seven years after it expires in April 2012. It will pay $143.1 million to rent HSBC Building until April 2019, said the building's owner, CapitaCommercial Trust (CCT). CCT will spend up to $7 million on improvement works at HSBC Building. CBRE said that the rent is at market level. The deal will ensure that HSBC Building continues to enjoy 100% occupancy over the long term. About 1.11 million sq m of office space is expected to be completed between 2010 and 2012, according to the URA. Until then, the shortage of office space is likely to remain.

- The Straits Times, H22




The first home loan with a 7-day return policy
POSB Home Ideal First is the first home loan in the market created for first-time home owners in mind. Exclusive benefits include:
- 7-day return policy – a ‘first’ in the market
- Flexible monthly instalment payments
- Loyalty rewards
- CPF-pegged interest rates
- The Straits Times, P9 - advertisement
US$10b Dubai venture in search of acquisitions
Dubai Holding, the investment group owned by Dubai's ruler, merged its Dubai Bank and Dubai Islamic Investment Group units to create a US$10 billion venture that will buy companies overseas. The venture, Dubai Banking Group, will be managed by Dubai Group and will focus on buying banks, insurers and other assets in the Middle East, Africa and Asia that comply with the Syariah law. Dubai Banking Group will target direct investments and acquisitions across the world's biggest Islamic markets. Demand for banking products, insurance policies and investments that comply with the Syariah's ban on interest has increased.

- The Business Times, P20




UEM Land eyes new projects
UEM Land Sdn, developer of Malaysia's biggest commercial and housing project, plans to start real estate investment trusts (Reits) and new property developments as it prepares for a listing this year. State-controlled UEM Land may also invest overseas from 2010.

- The Business Times, P33




Asian Finance Bank plans Islamic property fund
Asian Finance Bank, one of three foreign Islamic lenders in Malaysia, plans to set up an Islamic property fund of up to US$500 million next year to tap what it considers to be an undervalued market in Malaysia. The bank also plans to set up a fully fledged Islamic bank in Indonesia by 2010. Chief executive of Asian Finance Bank said that there is more that can be done on the retail and wealth management side in Indonesia. Indonesia's Islamic finance market lags those of Malaysia and Singapore because of tax and accounting framework issues.

- The Business Times, P33




Worst is likely behind us: Paulson
US Treasury Secretary said the US financial markets are emerging from the credit crunch. The Wall Street Journal said the comments appear to be the Bush administration's most optimistic assessment about the financial turmoil. However, the treasury secretary predicted there would be further 'bumps along the road', and that it would take 'some months longer' for the market distress to fully dissipate.

- The Business Times, P21




Fee dispute: PropNex drops lawsuit against couple
PropNex is dropping its lawsuit against a couple who refused to pay the seller's agent the 1% commission after buying a home. The issue of commissions payable by buyers who deal without agents has been hotly debated. Many agents marketing HDB flats charge independent buyers a 1% fee, but this is not practised for transactions involving private property. Disputes arise when sellers' agents tell independent buyers about the commission just before sale papers are signed. Agents say independent buyers often leave the sellers' agents to handle the paperwork but refuse to pay a service fee.

- The Straits Times, H6




Singapore aims to be arbitration hub for India
Singapore’s history of cooperation with India puts the country in an ideal position to be an arbitration hub for Indian firms doing business with global partners. Deputy Prime Minister S. Jayakumar said that both countries share a common law heritage. As Indian businesses find non-Indian partners who require a neutral law, this is where Singapore courts or arbitration centres offer a reliable option. The Singapore International Arbitration Centre handled 46 arbitration cases involving Indian parties between 2000 and last year. Several key Indian corporations have endorsed the use of Singapore law and the Republic itself as a dispute resolution location.

- The Straits Times, H20




S'pore-Peru trade, investment to pick up as FTA talks end
Trade and investment flow - will pick up between Singapore and Peru. The two countries have wrapped up talks on the Peru-Singapore Free Trade Agreement (FTA). The free-trade pact covers trade in goods, trade remedies, trade in services, investment, government procurement, Customs procedures, temporary entry of persons, and dispute settlement, among other things. IE Singapore organises various outreach programmes both locally and overseas to raise awareness of the business opportunities in both countries.

- The Business Times, P13