Welcome to this week’s edition of Top Stock Highlights.
This week brought positive developments across Singapore’s economy and property market.
Economists sharply upgraded the city-state’s 2025 GDP growth outlook, while Keppel DC REIT moved to consolidate ownership of two data centres.
Meanwhile, a CapitaLand-UOL consortium emerged as the top bidder for a landmark Hougang Central mixed-use site.
MAS December 2025 Economic Survey
Economists have sharply raised Singapore’s 2025 GDP growth forecast to 4.1%, up from 2.4% in September, following a stronger-than-expected third quarter expansion of 4.2% year on year.
The upgraded outlook reflects broad-based improvements across all major sectors.
Manufacturing growth expectations jumped to 5.4% from 0.8%, while finance and insurance, wholesale and retail trade, and construction forecasts were also revised upwards.
Fourth quarter growth is projected at 3.6%, with 2026 growth expected to moderate to 2.3%.
Inflation remains well-contained, with headline and core inflation forecasts steady at 0.9% and 0.7% respectively for 2025.
Both measures are expected to edge higher in 2026 to 1.5% and 1.3%.
On monetary policy, all economists surveyed expect no changes at the January and April 2026 reviews.
Only 11% anticipate potential tightening by July 2026, reflecting confidence that inflation pressures remain subdued.
Keppel DC REIT Acquires Remaining Stakes in Two Singapore Data Centres
Keppel DC REIT (SGX: AJBU) has announced the acquisition of the remaining interests in two Singapore data centres from its sponsor Keppel Ltd (SGX: BN4) for around S$50.5 million.
The REIT is acquiring the remaining 10% stake in Keppel DC Singapore 3 and the remaining 1% stake in Keppel DC Singapore 4, both located in Tampines.
Following completion, Keppel DC REIT will hold 100% ownership of both properties.
The agreed property values are S$434 million for KDC SGP 3 and about S$586 million for KDC SGP 4.
The total acquisition outlay of approximately S$53.9 million includes the purchase consideration, acquisition fees, and related expenses.
The acquisitions are expected to be 0.8% DPU-accretive, increasing FY2024 pro forma DPU from S$0.09451 to S$0.09525.
Aggregate leverage is expected to improve slightly from 29.8% to 29.5%.
Post-acquisition, the REIT’s assets under management will increase by 3.5% to S$5.9 billion, with Singapore assets rising from 57.8% to 58.8% of the portfolio.
Hyperscaler client exposure will also increase to 69.5% of rental income.
The acquisition will be funded from proceeds of the recent S$404.5 million preferential offering, with completion expected by the first quarter of 2026.
CapitaLand-UOL Consortium Submits Top Bid for Hougang Central Site
A consortium comprising CapitaLand Development, CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT and UOL Group (SGX: U14) submitted the top bid of S$1.5 billion for a mixed-use government land sale site in Hougang Central.
The tender closed on 16 December and attracted three bids.
The 99-year leasehold site spans 504,820 square feet (sqft) with a gross floor area of 1.27 million sqft.
If awarded, UOL and CapitaLand Development will jointly develop the residential component on a 50:50 split, while CICT will retain full ownership of the commercial portion.
The development will feature approximately 830 residential units and 300,000 sq ft of retail space, becoming Hougang’s largest mall.
Located above Hougang MRT station, it will connect to the Cross Island Line by 2030.
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