Singapore property players spared from crisis so far

Singapore

AUSTRALIA'S metropolitan areas have so far been spared the brunt of raging bushfires, offering respite to a number of Singapore real estate players with a slate of assets Down Under.

"To date, the bushfires have only impacted rural and regional Australia," noted a spokesman for Ascendas Reit (A-Reit), which has logistics and office properties in and around the urban centres of Sydney, Melbourne and Brisbane, plus Perth in the west.

Nevertheless, these companies told The Business Times on Monday that they are closely watching the fire situation and have contingency plans in place, despite distance from the blaze.

Should unpredictable fire fronts turn, mitigation measures and insurance are other precautions on hand.

"We are actively monitoring the situation and would take direction from the local fire authority and provide regular communications with the relevant tenant companies in occupation," the A-Reit spokesman said.

A spokesman for Frasers Property also affirmed that the group's assets and operations in Australia "are in no immediate danger" from the fires.

"We have proactively taken steps at our construction sites as well as fixed assets to reduce the effects of the bushfire smoke for both indoor and outdoor works," he said, adding that it will take the steps needed "to ensure the safety and well-being of customers, tenants and staff".

Similarly, Cache Logistics Trust said it does not expect any impact to its portfolio, which are largely in suburban industrial districts.

Daniel Cerf, chief executive of the manager, told BT that the properties have "essential fire safety measures" such as sprinklers, hose reels and evacuation plans.

"Comprehensive insurance coverage for the properties has also been procured for these assets to mitigate any financial exposure," he added.

For agri-business Olam International, its interests even in the more rural parts of Australia have not been affected. It told BT last week that it has not seen impact to its operations - which include almond orchards and cotton processing - as they are not near fire-stricken areas.

Mainboard-listed QAF - the owner of pork producer Rivalea, which has farms in New South Wales and Victoria - has also not seen fire impact.

A spokesman for Keppel Infrastructure Trust told BT that neither its Ixom chemicals unit nor the Basslink electricity link, which connects Victoria and Tasmania, have been affected. He added: "We have business continuity plans as well as insurance in place should any sites get affected."

Meanwhile, Australian carrier Qantas suspended flights in and out of Canberra last weekend, as the national capital was engulfed in smoke.

But a spokesman for Singapore Airlines, which has not pulled the plug on Canberra flights, said: "At this stage, the bushfires do not have any direct impact on our flight operations."

Additional reporting by Anita Gabriel.

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