SG Morning Highlights | CapitaLand Investment in partnership to set up S$1b logistics fund

Advancers / Decliners is 83 to 67, with 39.42 million securities worth S$71.40 million changing hands.

The shortage of biotech talent in Singapore is set to widen by 29.2 per cent over the next decade as the sector expands, according to a report released by deep tech investor SGInnovate on Monday (Dec 19).

Authored by global strategy firm LEK Consulting, the report forecasts that the number of biotech companies in Singapore will grow by over 61.5 per cent between 2022 and 2032, from 52 to 84.

The number of clinical-phase companies is expected to more than double to 36 in the next 10 years, while those in the commercial phase are expected to grow from three to nine. The number of pre-clinical companies, which has grown rapidly since 2012, is expected to stand at 39 in 2032.

Stronger Asia-Pacific mergers and acquisitions activity next year depends on improving macroeconomic conditions after 2022 deals were held at eight-year lows by financing costs, weak equity markets and China's pandemic controls, dealmakers said.

Deals are set to revive slowly as companies and funds watch out for easier macroeconomic conditions, they said. Hopes that Chinese companies will return to the market have strengthened.

"We expect more certainty around interest rates, inflation, geopolitics and the commodities cycle to emerge from the second quarter onwards," said Raghav Maliah, Hong Kong-based global vice-chairman of Goldman Sachs's investment banking division.

Thailand's economy should continue to recover and its overall financial stability remains sound, while financial tightening globally has had a limited impact on the country's financial conditions, the central bank said on Monday (Dec 19).

A gradual rate increase is still an approach consistent with Thailand's recovery and inflation outlook, but the central bank is ready to adjust the pace if the outlook shifts, it said in a statement issued for an analysts' meeting.

South-east Asia's second-largest economy will continue to be supported by a recovery in private consumption and the vital tourism sector, the central bank said.

The three companies have committed an initial investment of S$270 million to the CapitaLand Sea Logistics Fund (CSLF), with an option to increase their investment up to S$540 million, they said in a joint statement on Monday (Dec 19). They target to achieve assets under management of S$1 billion.

CLI will be the fund's manager, leveraging its well-established global real estate platform, fund management expertise and local operating presence to "provide the fund a competitive advantage in deal sourcing, investment and execution", said the statement.

Shanghai Jindi Jinli Industry Development will be buying the stake, which is held by Gadius, an indirect wholly-owned subsidiary of Keppel Land.

Of the total transaction value of 783 million yuan, Gadius will receive a consideration of 121 million yuan, subject to completion adjustments. This will be payable in full, in cash, upon regulatory approval for remittance of the sum into Gadius' designated offshore bank account.

The net proceeds from the divestment will be deployed to repay outstanding borrowings and/or fund general working capital requirements, said the manager.

The divestment is not expected to have a material impact on ESR-Logos' net asset value and distribution per unit for the financial year ending Dec 31.

These transactions take the Catalist-listed company’s order book to S$113 million as at Dec 16, most of which is expected to be undertaken over the next two years, the company said in a bourse filing.

The board expects the new contracts to contribute positively to both the group's financial results as well as its net tangible assets per share and earnings per share for the duration of the new contracts, subject to any unforeseen circumstances.