UOB Kayhian Report - 04 Jan 2008

Most US stocks declined, led by retailers and carmakers, after a flagging job market and deteriorating auto sales fuelled concern that consumer spending will slow. The DJIA climbed up 12.76, or 0.10%, to 13056.72. The Nasdaq shed 6.95, or 0.27%, to 2602.68.

• CapitaCommercial Trust has secured Outline Planning Permission to (OPP) for the redevelopment of Market Street Car Park. Currently zoned as “Transport Facilities”, the site will be rezoned for “Commercial Use” conditional upon the following: a) payment of development premium equivalent to 100% of the enhancement in land value (instead of the usual 70%) as assessed by the Chief Valuer, and b) no extension of the existing lease, which expires in Mar 2073. The OPP allows the site to be redeveloped for office use, except the first storey which is likely to be utilised as retail space.
• Australian investment fund Allco Finance Group has raised $518m to create a new wholesale fund to be based in Singapore, ahead of a future initial public offer (IPO). The fund, called Allco SIF, will invest in aviation, rail and shipping assets, and so far has investments worth $700m. The capital raising included $356m in bonds that will convert into equity at the time of the planned IPO.
• Changi Airports International, the overseas investment unit of Singapore's main airport operator, intends to acquire stakes in as many as 15 airfields, with about half in China. It aims to manage US$700m of airport assets in the next three years. Overseas revenue may rise to as much as 20% of sales in five years from less than 5% now.
• Yanlord Land Group is expanding its footprint in Shanghai through the purchase of a residential development site for Rmb600.4m (S$118.7m). Yanlord’s subsidiary Shanghai Renjie Hebin Garden Property Co acquired the site in Qingpu District last month.
• JTC Corporation reportedly has plans to appoint Australian-listed property and wealth management company Goodman Group to manage its upcoming real estate investment trust (REIT). The news follows last month's report in the Australian Financial Review that Goodman Group beat competitors - including Singapore's CapitaLand and Mapletree Investments - to become the manager of JTC Corporation's upcoming trust.
• Sincere Watch will sell 175,000 shares, or 1%, of Chrono Star International Participations Groupe Franck Muller SA for $10.96m to Tay Liam Wee, a director and controlling shareholder of Sincere Watch. Chrono Star is a private limited company incorporated in Luxembourg and the parent company for the Franck Muller Group.
• Enzer has decided not to go ahead with its proposed renounceable rights issue of convertible bonds. This is in view of its plan to raise up to $150m from a proposed bond issue of redeemable zero coupon convertible bonds to DB Zwirn Mauritius Trading No 3.
• Golden Agri-Resources has proposed a stock split. The oil palm grower and processor plans to divide each of its issued shares into two. The move will increase trading liquidity of the shares and broaden the shareholder base of the company.
• Asian Micro Holdings has inked a memorandum of understanding (MOU) with Sombat Lohkitdvanich to acquire 40% of his company Cryothai Co for Bt84m (S$4.09m). Cryothai provides leasing of cryogenic vessels on trailers and also owns a liquid natural gas plant located in Nongtoom in Sukhothai Province, Thailand.