July 18, 2008
Another door closes on Horizon minorities
High Court dismisses appeal, says there's no proof that sale was in
bad faith
By MICHELLE QUAH
(SINGAPORE) Minority owners seeking to stop the en bloc sale of
Horizon Towers have been defeated yet again. Singapore's High Court
yesterday dismissed their appeal, on the grounds that they failed to
prove the sale was done in bad faith and prejudiced their rights.
This decision, coming on the heels of the High Court's dismissal of
an appeal against the sale of Gillman Heights Condominium, marks the
second major defeat for minorities here.
The minority owners of Horizon Towers whom BT spoke to said they were
still considering their options at this time. But they will soon be
meeting to decide if they will take the matter to the Court of
Appeal, or start a civil suit to claim for any financial loss - which
will be their final recourse.
If they decide not to appeal further, the $500 million sale of the
Leonie Hill development to a consortium led by Hotel Properties Ltd
(HPL) will go through. It will also mean that the closely watched
saga - which has been playing out in the public eye for more than a
year - will finally come to a close.
HPL group executive director Chris Lim told BT: 'We are pleased with
the High Court judgment and hope to move forward with the deal as
it's been one-and-a-half years since the sale agreement was inked.'
Justice Choo Han Teck, who presided over the minorities' appeal, said
in his judgment yesterday that the minorities had failed to show that
the Strata Titles Board (STB) erred in law in its decision to approve
the en bloc sale in December.
The High Court only has powers to consider questions of law on appeal.
The minorities had argued that the sale had been conducted in bad
faith. They claimed a better sale price might have been achieved if
the sales committee had pursued a second offer from a party called
Vineyard, which had reportedly offered $510 million. The minorities
claimed the sales committee did not pursue the offer - and even
concealed it - because the development's sales agent, First Tree, was
getting a higher sales commission from the HPL consortium.
But Justice Choo said the minorities failed to prove bad faith, as
their argument was essentially concerned with whether the eventual
sale price was fair - which is 'a question of fact' for the STB to
decide, and not a question of law for the court to deliberate on.
Justice Choo said, if the minorities feel the sales committee had
deliberately or negligently not pursued the Vineyard offer, they can
pursue a civil claim for the purported financial loss.
He also ruled that the minorities had failed to prove there was a
lack of good faith in the way the sales proceeds were to be
distributed amongst the various owners. The minorities argued the
apportionment method used was unfair because it resulted in penthouse
owners getting about 16 per cent less on a per- square-metre basis,
compared to non-penthouse owners.
Justice Choo said there can't be a lack of good faith in the
selection of the apportionment method just because it was the only
one considered or it led to some owners getting more than others. He
noted that the STB had considered the evidence of several experts and
it seemed no one method would satisfy everyone.
He added that, even if the STB had deemed the chosen method
inappropriate, it would be an error of fact and not an error of law.
He also dismissed the minorities' arguments that the en bloc sale was
unconstitutional, and that the sale agreement had lapsed by the time
the STB approved the sale.
Justice Choo also noted the 'intrigue' that has surrounded the en
bloc sale of Horizon Towers. There have been numerous accusations on
the conduct of the various parties involved - ranging from whether
the sales committee should have worked harder to get a better sale
price, to whether the minorities were only against the sale because
the price was too low.
'The STB was not bound to examine the rights and preferences of each
individual subsidiary proprietor and it was not the forum to inquire
into the conduct of individual members of the SC (sales committee),
or even the SC as a whole,' Justice Choo said. 'If the STB were to
embark on the kind of inquiry and make the findings the appellants
say it ought to have done, the STB would never get its job done
within the time limited.'
Friday, July 18, 2008
$1.99b loan for Farrer Rd condo
July 18, 2008
$1.99b loan for Farrer Rd condo
It's S'pore's biggest syndicated loan for a residential project, says
CapitaLand
By LYNETTE KHOO
THE en-bloc purchase of Farrer Court site - which has made many of
the sellers millionaires - has achieved many superlatives, the latest
being the $1.996 billion loan raised by the CapitaLand-led consortium
that is re-developing the land into a high-rise condominium.
The loan involving 10 local and international banks to fund the
acquisition of the Farrer Court site and its redevelopment is the
largest syndicated residential project loan ever arranged in
Singapore, said CapitaLand's president and CEO Liew Mun Leong
yesterday. He was speaking at the loan-signing ceremony at the Four
Seasons Hotel.
This loan comprises a $1.362 billion term loan and a $500 million
revolving credit facility with a tenor of five years, and $133.93
million bank guarantee facilities with a six-year tenor. A joint
statement by the consortium partners said the loan will be used to
partially refinance the acquisition costs and to part-finance the
construction and development.
The consortium, Morganite Pte Ltd - whose partners are CapitaLand
Residential (with a 35 per cent stake), Ong Beng Seng-controlled
Hotel Properties Ltd (22.5 per cent), Morgan Stanley Real Estate
Special Situations Fund III LP (22.5 per cent) and US-based Wachovia
Development Corporation (20 per cent) - bought the site in June last
year for $1.3388 billion, making it the largest collective sale
transaction in Singapore. The transaction was completed in March this
year.
The privatised HUDC estate of area 77,898 sq m (838,488 sq ft) will
be re-developed into 36-storey condominium consisting of 1,500 homes.
This is the only private residential site in the Farrer Road and
Holland Road area to be accorded a high plot ratio of 2.8 and a
maximum height of 36 storeys.
'The project will cost us about $3 billion, including land price,'
said Mr Liew. This $3 billion tag makes it the largest value
residential project in Singapore.
'It's during such difficult times that developers, businesses and
partners can pool together and seek partnership strengths with
healthy financial standing to exploit opportunities,' Mr Liew added.
Despite the weakness seen in new home purchases this year, Mr Liew
believes that the demand here remains strong.
He is hence confident of attracting the right buyers for this project
given its design by renowned architect Zaha Hadid and its good
District 10 location, as well as support from the 'blue chip'
partners.
'The demand is still holding (up) and there are still people buying,'
Mr Liew said. 'If you look at people buying Nassim Park for over
$3,000...and that's exceeding pre-Asian crisis (levels).'
Speaking on the sidelines, Hotel Properties executive director
Christopher Lim concurred that current market weakness points to the
issue of timing rather than a fall in demand.
'The demand is there but people are just waiting,' Mr Lim said. 'If
they believe that price is not going to drop, they will come back to
the market again.'
The 99-year leasehold project is slated to be launched in the first
half of 2009 and its pricing will be determined at that time. Its
breakeven pricing is in the region of $1,350 to $1,450 per square
foot.
Mr Liew added that the group is ready to hold back the launch to
achieve a desirable pricing as profitability remains the key focus
for all its projects. 'We are a company that can hold on,' he
said. 'Our balance sheet is not under pressure.'
The mandated lead arrangers and bookrunners of the loan are DBS Bank,
UOB Asia, Standard Chartered Bank, OCBC and Royal Bank of Scotland
plc.
$1.99b loan for Farrer Rd condo
It's S'pore's biggest syndicated loan for a residential project, says
CapitaLand
By LYNETTE KHOO
THE en-bloc purchase of Farrer Court site - which has made many of
the sellers millionaires - has achieved many superlatives, the latest
being the $1.996 billion loan raised by the CapitaLand-led consortium
that is re-developing the land into a high-rise condominium.
The loan involving 10 local and international banks to fund the
acquisition of the Farrer Court site and its redevelopment is the
largest syndicated residential project loan ever arranged in
Singapore, said CapitaLand's president and CEO Liew Mun Leong
yesterday. He was speaking at the loan-signing ceremony at the Four
Seasons Hotel.
This loan comprises a $1.362 billion term loan and a $500 million
revolving credit facility with a tenor of five years, and $133.93
million bank guarantee facilities with a six-year tenor. A joint
statement by the consortium partners said the loan will be used to
partially refinance the acquisition costs and to part-finance the
construction and development.
The consortium, Morganite Pte Ltd - whose partners are CapitaLand
Residential (with a 35 per cent stake), Ong Beng Seng-controlled
Hotel Properties Ltd (22.5 per cent), Morgan Stanley Real Estate
Special Situations Fund III LP (22.5 per cent) and US-based Wachovia
Development Corporation (20 per cent) - bought the site in June last
year for $1.3388 billion, making it the largest collective sale
transaction in Singapore. The transaction was completed in March this
year.
The privatised HUDC estate of area 77,898 sq m (838,488 sq ft) will
be re-developed into 36-storey condominium consisting of 1,500 homes.
This is the only private residential site in the Farrer Road and
Holland Road area to be accorded a high plot ratio of 2.8 and a
maximum height of 36 storeys.
'The project will cost us about $3 billion, including land price,'
said Mr Liew. This $3 billion tag makes it the largest value
residential project in Singapore.
'It's during such difficult times that developers, businesses and
partners can pool together and seek partnership strengths with
healthy financial standing to exploit opportunities,' Mr Liew added.
Despite the weakness seen in new home purchases this year, Mr Liew
believes that the demand here remains strong.
He is hence confident of attracting the right buyers for this project
given its design by renowned architect Zaha Hadid and its good
District 10 location, as well as support from the 'blue chip'
partners.
'The demand is still holding (up) and there are still people buying,'
Mr Liew said. 'If you look at people buying Nassim Park for over
$3,000...and that's exceeding pre-Asian crisis (levels).'
Speaking on the sidelines, Hotel Properties executive director
Christopher Lim concurred that current market weakness points to the
issue of timing rather than a fall in demand.
'The demand is there but people are just waiting,' Mr Lim said. 'If
they believe that price is not going to drop, they will come back to
the market again.'
The 99-year leasehold project is slated to be launched in the first
half of 2009 and its pricing will be determined at that time. Its
breakeven pricing is in the region of $1,350 to $1,450 per square
foot.
Mr Liew added that the group is ready to hold back the launch to
achieve a desirable pricing as profitability remains the key focus
for all its projects. 'We are a company that can hold on,' he
said. 'Our balance sheet is not under pressure.'
The mandated lead arrangers and bookrunners of the loan are DBS Bank,
UOB Asia, Standard Chartered Bank, OCBC and Royal Bank of Scotland
plc.
CMT still keen to acquire; DPU beats forecast
July 18, 2008
CMT still keen to acquire; DPU beats forecast
By ARTHUR SIM
THE current economic landscape could provide rich pickings for some.
Chief executive of CapitaMall Trust (CMT) management Pua Sek Guan
noted that when the market is 'very good', it is difficult for
acquisitions to be made. 'Today, there are deals to be done,' he said.
While Mr Pua would not say if CMT was looking at any 'deal' in
particular, he did say that single asset owners of retail properties
may want to ask themselves: 'Is this your long-term business?'
He said: 'This business is a skill-set business. You need a platform
to innovate.'
Mr Pua was referring to the CMT's programme of proposed asset
enhancement initiatives (AEI) for assets including the Atrium and
Plaza Singapura, Lot One Shoppers' Mall and Bugis Junction.
CMT expects its AEI capital expenditure outlay for 2008 to be about
$174 million, up from $168.6 million in 2007. But CMT expects
incremental net property income of about $25 million from AEI
completed by end-2009.
Mr Pua was speaking at a press conference to announce CMT's Q2 2008
financial results which saw net property income of $83.6 million, up
24.7 per cent on a year-on-year basis.
Distributable income for the quarter was $58.6 million. This
represents an annualised distribution per unit of 14.16 cents, up
13.2 per cent from the previous corresponding quarter.
Distribution per unit (DPU) for the quarter is 3.52 cents, 1.7 per
cent higher than CMT's forecast.
Gross revenue for Q2 was $125.6 million, an increase of $21.7 million
or 20.9 per cent. This was attributed to an increase in revenue of
$11.1 million from the three malls under CapitaRetail Singapore
(CRS), which contributed three months of revenue in Q2 2008, against
one month in Q2 2007.
CMT's other malls accounted for another $7.6 million increase in
revenue mainly due to new and renewal leases as well as higher
revenue from IMM Building, Plaza Singapura and Bugis Junction. Its
interest in Raffles City accounted for another $3.0 million.
CMT, which tracks gross turnover of tenants, said that tenants' sales
growth outpaced the increases in gross rent. Citing Plaza Singapura
as an example, it said that sales increased by 5.1 per cent in 2008
over 2007 to hit $97 million, based on a sample size of 143 tenants.
Gross rent increased by 2 per cent in the same period.
Still, one casualty appears to be John Little at Plaza Singapura. A
spokesman for John Little confirmed that it will close its Plaza
Singapura outlet. However, it is understood that the company will
take up a smaller space there for a possible new brand.
CMT still keen to acquire; DPU beats forecast
By ARTHUR SIM
THE current economic landscape could provide rich pickings for some.
Chief executive of CapitaMall Trust (CMT) management Pua Sek Guan
noted that when the market is 'very good', it is difficult for
acquisitions to be made. 'Today, there are deals to be done,' he said.
While Mr Pua would not say if CMT was looking at any 'deal' in
particular, he did say that single asset owners of retail properties
may want to ask themselves: 'Is this your long-term business?'
He said: 'This business is a skill-set business. You need a platform
to innovate.'
Mr Pua was referring to the CMT's programme of proposed asset
enhancement initiatives (AEI) for assets including the Atrium and
Plaza Singapura, Lot One Shoppers' Mall and Bugis Junction.
CMT expects its AEI capital expenditure outlay for 2008 to be about
$174 million, up from $168.6 million in 2007. But CMT expects
incremental net property income of about $25 million from AEI
completed by end-2009.
Mr Pua was speaking at a press conference to announce CMT's Q2 2008
financial results which saw net property income of $83.6 million, up
24.7 per cent on a year-on-year basis.
Distributable income for the quarter was $58.6 million. This
represents an annualised distribution per unit of 14.16 cents, up
13.2 per cent from the previous corresponding quarter.
Distribution per unit (DPU) for the quarter is 3.52 cents, 1.7 per
cent higher than CMT's forecast.
Gross revenue for Q2 was $125.6 million, an increase of $21.7 million
or 20.9 per cent. This was attributed to an increase in revenue of
$11.1 million from the three malls under CapitaRetail Singapore
(CRS), which contributed three months of revenue in Q2 2008, against
one month in Q2 2007.
CMT's other malls accounted for another $7.6 million increase in
revenue mainly due to new and renewal leases as well as higher
revenue from IMM Building, Plaza Singapura and Bugis Junction. Its
interest in Raffles City accounted for another $3.0 million.
CMT, which tracks gross turnover of tenants, said that tenants' sales
growth outpaced the increases in gross rent. Citing Plaza Singapura
as an example, it said that sales increased by 5.1 per cent in 2008
over 2007 to hit $97 million, based on a sample size of 143 tenants.
Gross rent increased by 2 per cent in the same period.
Still, one casualty appears to be John Little at Plaza Singapura. A
spokesman for John Little confirmed that it will close its Plaza
Singapura outlet. However, it is understood that the company will
take up a smaller space there for a possible new brand.
Tanglin Road site goes at 124% above guide rent
July 18, 2008
Tanglin Road site goes at 124% above guide rent
By ARTHUR SIM
THE former Ministry of Home Affairs complex at Phoenix Park, off
Tanglin Road, has been awarded to LHN Group for $368,888 a month - a
huge 124 per cent more than the guide rent of $165,000 a month.
The site, with a gross floor area of 143,195.4 sq ft, is managed by
the Singapore Land Authority (SLA). The tender attracted 11 bids - 10
of them at or above the guide rent.
Bidders included United Engineers Developments (UE) which put in the
second-highest offer of $315,033 per month.
Teo Cher Hian, director of land lease (private) with SLA's land
operations group, said LHN offered the 'best value for the state'
based on allowable uses, business concept, track record and corporate
financial health.
LHN plans to configure the site into separate tenant clusters, he
said. The adjacent former Education Ministry headquarters now houses
the Youth Olympic Games headquarters. And with more office set-ups
pending, Phoenix Park 'completes the area as an office hub', said Mr
Teo.
LHN is the master tenant for other state properties, including the
former Gan Eng Seng School and CID Training Centre.
LHN managing director Kelvin Lim said the investment cost at Phoenix
Park is expected to be about $4 million. He estimates that rents
could be around $6 psf per month when it opens at the year-end.
Rising office rents are forcing more businesses to consider
alternative office space like Phoenix Park. UE, for instance, had
intended to use most of the space to house its own engineering
operations, and to lease the rest to other tenants. 'The existing
structures and layout would also allow rather quick occupation with
minimal works,' a UE spokesman said.
Marine engineering firm Allbest Equipments, which was awarded the
former Monk's Hill Secondary School site by SLA, also expects to
relocate its corporate offices there.
Allbest put in the highest bid of $211,328 per month for the site,
which has a GFA of 83,889.5 sq ft.
Seven bids were received, with Allbest's 43 per cent higher than the
guide rent of $147,300.
Allbest general manager Chan Cheong Hoy said it will lease the
remaining space at $7.50-$10 psf a month and expects to complete the
first phase of renovations within four months.
Cushman and Wakefield managing director Donald Han said that as well
as getting such properties ready to let as quickly as possible,
developers have to keep construction costs under tight control to
ensure their projects are feasible.
Mr Han says that in the Newton area transitional office space is
going for $7.50-$8 psf a month, while the former Gan Eng Seng School
could achieve $4.50-$5 psf a month.
Tanglin Road site goes at 124% above guide rent
By ARTHUR SIM
THE former Ministry of Home Affairs complex at Phoenix Park, off
Tanglin Road, has been awarded to LHN Group for $368,888 a month - a
huge 124 per cent more than the guide rent of $165,000 a month.
The site, with a gross floor area of 143,195.4 sq ft, is managed by
the Singapore Land Authority (SLA). The tender attracted 11 bids - 10
of them at or above the guide rent.
Bidders included United Engineers Developments (UE) which put in the
second-highest offer of $315,033 per month.
Teo Cher Hian, director of land lease (private) with SLA's land
operations group, said LHN offered the 'best value for the state'
based on allowable uses, business concept, track record and corporate
financial health.
LHN plans to configure the site into separate tenant clusters, he
said. The adjacent former Education Ministry headquarters now houses
the Youth Olympic Games headquarters. And with more office set-ups
pending, Phoenix Park 'completes the area as an office hub', said Mr
Teo.
LHN is the master tenant for other state properties, including the
former Gan Eng Seng School and CID Training Centre.
LHN managing director Kelvin Lim said the investment cost at Phoenix
Park is expected to be about $4 million. He estimates that rents
could be around $6 psf per month when it opens at the year-end.
Rising office rents are forcing more businesses to consider
alternative office space like Phoenix Park. UE, for instance, had
intended to use most of the space to house its own engineering
operations, and to lease the rest to other tenants. 'The existing
structures and layout would also allow rather quick occupation with
minimal works,' a UE spokesman said.
Marine engineering firm Allbest Equipments, which was awarded the
former Monk's Hill Secondary School site by SLA, also expects to
relocate its corporate offices there.
Allbest put in the highest bid of $211,328 per month for the site,
which has a GFA of 83,889.5 sq ft.
Seven bids were received, with Allbest's 43 per cent higher than the
guide rent of $147,300.
Allbest general manager Chan Cheong Hoy said it will lease the
remaining space at $7.50-$10 psf a month and expects to complete the
first phase of renovations within four months.
Cushman and Wakefield managing director Donald Han said that as well
as getting such properties ready to let as quickly as possible,
developers have to keep construction costs under tight control to
ensure their projects are feasible.
Mr Han says that in the Newton area transitional office space is
going for $7.50-$8 psf a month, while the former Gan Eng Seng School
could achieve $4.50-$5 psf a month.
Rents, prices in central, prime areas may drop
July 18, 2008
Rents, prices in central, prime areas may drop
JLL predicts up to 4.5% dip in typical prime district rents
By EMILYN YAP
RENTS and resale prices of housing in the central and prime districts
could be hit this year and next depending on the crunch in the US
market, says Jones Lang LaSalle (JLL).
In the worst case scenario, the real estate consultancy firm projects
a 3.5 to 4.5 per cent drop in rents in the typical prime districts by
year-end. 'Compared to recent rental rises, this remains a relatively
small decline,' said JLL's managing director in South-east Asia and
Singapore, Chris Fossick. The central districts could experience a
bigger 5 to 7 per cent drop in rents in 2009.
The anticipated completion of some 15,000 units between 2008 and 2009
is likely to cause rents to ease, as new islandwide supply is likely
to surpass the average 10-year take up of 6,600-6,800 units, JLL said
in a statement yesterday. Most completed supply could appear in the
central districts.
Average resale prices in the central districts could ease about one
per cent by 2009, while prices in the luxury prime districts could
dive 11-13 per cent.
Mr Fossick referred to the forecasts as 'more of a worst-case
scenario' should the US market not pick up soon. He said that
sentiment will improve once US housing shows signs of recovery.
Singapore's fundamentals are attractive to investors and demand will
return when uncertainty clears, he added.
Investors might then realise that 'there is less supply now than we
thought there was' - and prices may rise again.
Taking a medium to longer-term view, Mr Fossick said: 'We are seeing
a dramatic fall in potential future supply in Singapore due to a
stall in collective sales.'
JLL said that there were only two transactions worth $55.3 million in
the first half of this year, compared with 51 deals worth $9.33
billion in the same period last year.
Mr Fossick said that there is also less supply from the confirmed
list of the Government Land Sales Programme for the second half of
the year.
Prime districts are already seeing slightly weaker rents as
expatriates with lower housing budgets move to non-prime areas. JLL
data showed that in the first half of the year, luxury prime rents
fell one per cent and typical prime rents dropped 2 per cent.
Properties in the central districts in turn became more popular for
leasing. Average rents there rose 11 per cent and surpassed those of
typical prime properties for the first time in H1 this year.
JLL data also showed average resale prices softening in some areas.
Luxury prime property prices eased 4.9 per cent to $2,595 per square
foot (psf) in the first half of the year, while central district
prices eased 0.5 per cent to $1,020 psf.
The shift of rental demand from the prime to central districts has
sustained investor interest in central district property, according
to JLL.
The mass market stood out with 3 per cent growth in resale prices to
around $690 psf in H1, and JLL projected that prices could stay at
this level in 2009.
Rents, prices in central, prime areas may drop
JLL predicts up to 4.5% dip in typical prime district rents
By EMILYN YAP
RENTS and resale prices of housing in the central and prime districts
could be hit this year and next depending on the crunch in the US
market, says Jones Lang LaSalle (JLL).
In the worst case scenario, the real estate consultancy firm projects
a 3.5 to 4.5 per cent drop in rents in the typical prime districts by
year-end. 'Compared to recent rental rises, this remains a relatively
small decline,' said JLL's managing director in South-east Asia and
Singapore, Chris Fossick. The central districts could experience a
bigger 5 to 7 per cent drop in rents in 2009.
The anticipated completion of some 15,000 units between 2008 and 2009
is likely to cause rents to ease, as new islandwide supply is likely
to surpass the average 10-year take up of 6,600-6,800 units, JLL said
in a statement yesterday. Most completed supply could appear in the
central districts.
Average resale prices in the central districts could ease about one
per cent by 2009, while prices in the luxury prime districts could
dive 11-13 per cent.
Mr Fossick referred to the forecasts as 'more of a worst-case
scenario' should the US market not pick up soon. He said that
sentiment will improve once US housing shows signs of recovery.
Singapore's fundamentals are attractive to investors and demand will
return when uncertainty clears, he added.
Investors might then realise that 'there is less supply now than we
thought there was' - and prices may rise again.
Taking a medium to longer-term view, Mr Fossick said: 'We are seeing
a dramatic fall in potential future supply in Singapore due to a
stall in collective sales.'
JLL said that there were only two transactions worth $55.3 million in
the first half of this year, compared with 51 deals worth $9.33
billion in the same period last year.
Mr Fossick said that there is also less supply from the confirmed
list of the Government Land Sales Programme for the second half of
the year.
Prime districts are already seeing slightly weaker rents as
expatriates with lower housing budgets move to non-prime areas. JLL
data showed that in the first half of the year, luxury prime rents
fell one per cent and typical prime rents dropped 2 per cent.
Properties in the central districts in turn became more popular for
leasing. Average rents there rose 11 per cent and surpassed those of
typical prime properties for the first time in H1 this year.
JLL data also showed average resale prices softening in some areas.
Luxury prime property prices eased 4.9 per cent to $2,595 per square
foot (psf) in the first half of the year, while central district
prices eased 0.5 per cent to $1,020 psf.
The shift of rental demand from the prime to central districts has
sustained investor interest in central district property, according
to JLL.
The mass market stood out with 3 per cent growth in resale prices to
around $690 psf in H1, and JLL projected that prices could stay at
this level in 2009.
Reliving the kampung spirit in Seletar Hills
July 18, 2008
UPFRONT
Reliving the kampung spirit in Seletar Hills
By April Chong
SELETAR Hills Estate today is that residential pocket comprising rows
of bungalows, terraced or semi-detached houses with gardens,
interspersed with newer condominiums.
The residents' committee there, the Seletar Hills Estate Residents'
Association (Shera), celebrates its 40th anniversary tomorrow.
With anniversaries tending to make people wistful, some of the
estate's old-timers are looking back on the past, hoping to recapture
the old spirit of neighbourliness.
Retired engineer George Pasqual, 79, who sits on the Shera committee,
said: 'We thought nothing of going to each other's houses and
standing by the gates to chat, but now relationships have become more
distant.'
He added that those of the newer generation 'no longer need to depend
on one another'.
But Shera is trying to rebuild that kampung spirit.
It already organises gatherings and excursions and puts out a
quarterly newsletter, Shera-News, which keeps everyone informed of
estate activities, gives news of estate improvements and publishes
snippets of history.
In 2005, Ms Yippy Chew, a retired physiotherapist and residents'
committee member, started a 'greening' movement by going door-to-door
to urge residents to transform the pavement outside their homes into
garden plots.
More then 170 households responded. Today, these plots have not only
brought more nature to the estate, they have also set new friendships
blooming.
Another resident has set up a heritage blog for the estate.
Back in the TV-less, computer-less days, when the rudimentary bus
system made travelling elsewhere inconvenient, and there was no
Central Expressway to the city, neighbours got together more.
For their children, the rubber plantations that used to cover Seletar
Hills for a good 50 years from 1910 were a playground.
As a child, Mr Pasqual visited the area with his friends to net
fighting fish in the ponds in the rubber plantations, play in the
stream along Yio Chu Kang Road or shoot down mangoes and guavas with
home-made catapults.
The rubber plantations, all 3,200ha of them, belonged to the Bukit
Sembawang Rubber Company and stretched from Seletar South to Ang Mo
Kio, and from Serangoon Gardens to Ponggol.
During the Japanese occupation, some plantation houses were used as
barracks; some housed imprisoned British prisoners-of-war.
From 1949, Bukit Sembawang started developing houses in the area, so
the rubber plantations and farms slowly disappeared.
When people started moving into the area, their friends were
incredulous at their choice of these boondocks.
It did not help that the stench from the pig farms across the road -
where Sengkang now is - were a constant.
Around the time when Mr Pasqual moved in, some 40 years ago, the
parish priest of the Catholic Church of St Vincent De Paul in the
area thought it was time to foster neighbourliness.
Under the leadership of Father J. Troquier, Shera was born and its
first committee set up in 1968.
It had its work cut out for it: Safety was a concern, as were better
street lighting, pest control, better roads and a transport system.
Long-time resident and retired principal Eugene Wijeysingha, 74, said
he was nearly a victim of a robbery along the estate's dark streets
in 1959.
Two men pointed a sharp object at his back, but he just swung his bag
at them and they fled.
He signed up as a member of the first Shera committee to do his bit
to improve the estate.
The association has been helmed by ordinary folk and more well-known
persons - including the late Mr Ong Teng Cheong in 1972, the same
year he entered politics. He eventually became Singapore's fifth
president and first popularly elected one.
Among the residents in the estate's estimated 3,000 households,
retired teacher Maureen Lim, 61, lays claim to having lived there the
longest - 48 years.
She remembers the days when the estate was served only by Yio Chu
Kang Road, and one bus service.
Four generations of her family, including her own parents,
are 'Seletarians'. In 1960, they were one of three Chinese families
along her street, with the other 40 houses occupied by Britons
working at the nearby Seletar Airbase.
Most of the pioneering batch of residents have either moved away or
died.
But some shopkeepers are still around after 30 or more years, like
the neighbourhood's grocers, food-stall holders and hairdresser.
Mr Loong Heng Goon, 58, runs a 36-year-old traditional laundry shop,
which he took over from his father. He still uses an old-style 10-
pound iron to make those perfect, knife-like pleats on clothes.
Some of his customers go way back, including those who have moved
away but still go to him.
The 'bread man' is also still around. Known to residents only as Mr
Foo, the now 69-year-old has progressed from selling bread on a
bicycle to doing it in a van. He also peddles snacks, eggs and
drinks.
But even as the residents in Seletar Hills estate go about
reawakening the kampung spirit of old, the outside world is
encroaching.
Neighbouring Sengkang West has been earmarked for a recreation hub,
and an aerospace park looms at the Seletar Airbase.
'I think it may be an uphill task building that kind of close kampung-
like feeling now,' said Mr Wijeysingha.
The anniversary will be marked with a dinner and dance at the Seletar
Country Club for 280 past and current residents tomorrow.
UPFRONT
Reliving the kampung spirit in Seletar Hills
By April Chong
SELETAR Hills Estate today is that residential pocket comprising rows
of bungalows, terraced or semi-detached houses with gardens,
interspersed with newer condominiums.
The residents' committee there, the Seletar Hills Estate Residents'
Association (Shera), celebrates its 40th anniversary tomorrow.
With anniversaries tending to make people wistful, some of the
estate's old-timers are looking back on the past, hoping to recapture
the old spirit of neighbourliness.
Retired engineer George Pasqual, 79, who sits on the Shera committee,
said: 'We thought nothing of going to each other's houses and
standing by the gates to chat, but now relationships have become more
distant.'
He added that those of the newer generation 'no longer need to depend
on one another'.
But Shera is trying to rebuild that kampung spirit.
It already organises gatherings and excursions and puts out a
quarterly newsletter, Shera-News, which keeps everyone informed of
estate activities, gives news of estate improvements and publishes
snippets of history.
In 2005, Ms Yippy Chew, a retired physiotherapist and residents'
committee member, started a 'greening' movement by going door-to-door
to urge residents to transform the pavement outside their homes into
garden plots.
More then 170 households responded. Today, these plots have not only
brought more nature to the estate, they have also set new friendships
blooming.
Another resident has set up a heritage blog for the estate.
Back in the TV-less, computer-less days, when the rudimentary bus
system made travelling elsewhere inconvenient, and there was no
Central Expressway to the city, neighbours got together more.
For their children, the rubber plantations that used to cover Seletar
Hills for a good 50 years from 1910 were a playground.
As a child, Mr Pasqual visited the area with his friends to net
fighting fish in the ponds in the rubber plantations, play in the
stream along Yio Chu Kang Road or shoot down mangoes and guavas with
home-made catapults.
The rubber plantations, all 3,200ha of them, belonged to the Bukit
Sembawang Rubber Company and stretched from Seletar South to Ang Mo
Kio, and from Serangoon Gardens to Ponggol.
During the Japanese occupation, some plantation houses were used as
barracks; some housed imprisoned British prisoners-of-war.
From 1949, Bukit Sembawang started developing houses in the area, so
the rubber plantations and farms slowly disappeared.
When people started moving into the area, their friends were
incredulous at their choice of these boondocks.
It did not help that the stench from the pig farms across the road -
where Sengkang now is - were a constant.
Around the time when Mr Pasqual moved in, some 40 years ago, the
parish priest of the Catholic Church of St Vincent De Paul in the
area thought it was time to foster neighbourliness.
Under the leadership of Father J. Troquier, Shera was born and its
first committee set up in 1968.
It had its work cut out for it: Safety was a concern, as were better
street lighting, pest control, better roads and a transport system.
Long-time resident and retired principal Eugene Wijeysingha, 74, said
he was nearly a victim of a robbery along the estate's dark streets
in 1959.
Two men pointed a sharp object at his back, but he just swung his bag
at them and they fled.
He signed up as a member of the first Shera committee to do his bit
to improve the estate.
The association has been helmed by ordinary folk and more well-known
persons - including the late Mr Ong Teng Cheong in 1972, the same
year he entered politics. He eventually became Singapore's fifth
president and first popularly elected one.
Among the residents in the estate's estimated 3,000 households,
retired teacher Maureen Lim, 61, lays claim to having lived there the
longest - 48 years.
She remembers the days when the estate was served only by Yio Chu
Kang Road, and one bus service.
Four generations of her family, including her own parents,
are 'Seletarians'. In 1960, they were one of three Chinese families
along her street, with the other 40 houses occupied by Britons
working at the nearby Seletar Airbase.
Most of the pioneering batch of residents have either moved away or
died.
But some shopkeepers are still around after 30 or more years, like
the neighbourhood's grocers, food-stall holders and hairdresser.
Mr Loong Heng Goon, 58, runs a 36-year-old traditional laundry shop,
which he took over from his father. He still uses an old-style 10-
pound iron to make those perfect, knife-like pleats on clothes.
Some of his customers go way back, including those who have moved
away but still go to him.
The 'bread man' is also still around. Known to residents only as Mr
Foo, the now 69-year-old has progressed from selling bread on a
bicycle to doing it in a van. He also peddles snacks, eggs and
drinks.
But even as the residents in Seletar Hills estate go about
reawakening the kampung spirit of old, the outside world is
encroaching.
Neighbouring Sengkang West has been earmarked for a recreation hub,
and an aerospace park looms at the Seletar Airbase.
'I think it may be an uphill task building that kind of close kampung-
like feeling now,' said Mr Wijeysingha.
The anniversary will be marked with a dinner and dance at the Seletar
Country Club for 280 past and current residents tomorrow.
$3b Farrer condo boasts sensuous, curvy towers
July 18, 2008
$3b Farrer condo boasts sensuous, curvy towers
Renowned architect Zaha Hadid behind their design; project to be
launched in 2009
By Joyce Teo, Property Correspondent
PROPERTY giant CapitaLand has unveiled the 'branded' upmarket designs
for a $3 billion residential project in Farrer Road that it aims to
launch next year.
The as-yet-unnamed condominium boasts a series of sensuous lines that
are not commonly seen in residential projects in Singapore, while the
curving towers give an ultra-modern feel without the harsh edges
present on many blocks.
It is all very much in the recognised style of architect Zaha Hadid,
the first female recipient of the coveted Pritzker Architecture
Prize.
This is her first condo project in Singapore but she has designed two
bungalows for niche developer Elevation Developments.
Past Pritzker Architecture Prize winners include Mr Frank Gehry, Sir
Norman Foster and Mr Rem Koolhaas.
The seven 36-storey blocks on the sprawling 838,488 sq ft site will
hold about 1,500 homes. There will also be six pairs of unique semi-
detached houses.
CapitaLand is developing the 99-year leasehold plot with three
partners. Hotel Properties and a Morgan Stanley Real Estate fund will
each hold 22.5 per cent, while Wachovia Development will take 20 per
cent.
These parties, which borrowed a whopping $1.996 billion for the
ambitious project, yesterday held a signing ceremony for the loan
with their bankers at the Four Seasons Hotel.
It is the largest syndicated residential property development loan
ever arranged in Singapore and comes amid a slow housing scene and
tight credit markets.
CapitaLand said the deal comprises a $1.362 billion term loan, $500
million of revolving credit and $133.9 million in bank guarantees.
The collective sale deal for the former Farrer Court condo site was
inked in June last year at $1.338 billion, or up to $783 per sq ft
(psf) of potential gross floor area.
Ms Patricia Chia, chief executive of CapitaLand Residential
Singapore, said the project's break- even cost is around $1,350 psf
to $1,450 psf.
The condo will be launched in the first half of next year.
Developers generally see no need to hurry given the slow property
sector, falling share markets and continuing bad news from the United
States.
CapitaLand chief executive Liew Mun Leong said at the signing
ceremony that the past few months have been challenging, but the
business world must go on, notwithstanding the current economic
turbulence in the US.
He said bankers, developers, businesses and potential partners could
come together to exploit opportunities that increase during bad
times.
Mr Liew added later: 'Sentiment has been affected in the US, but I
think the fundamentals in Asia - in terms of economic growth, the
demand, urbanisation - are still very strong.'
$3b Farrer condo boasts sensuous, curvy towers
Renowned architect Zaha Hadid behind their design; project to be
launched in 2009
By Joyce Teo, Property Correspondent
PROPERTY giant CapitaLand has unveiled the 'branded' upmarket designs
for a $3 billion residential project in Farrer Road that it aims to
launch next year.
The as-yet-unnamed condominium boasts a series of sensuous lines that
are not commonly seen in residential projects in Singapore, while the
curving towers give an ultra-modern feel without the harsh edges
present on many blocks.
It is all very much in the recognised style of architect Zaha Hadid,
the first female recipient of the coveted Pritzker Architecture
Prize.
This is her first condo project in Singapore but she has designed two
bungalows for niche developer Elevation Developments.
Past Pritzker Architecture Prize winners include Mr Frank Gehry, Sir
Norman Foster and Mr Rem Koolhaas.
The seven 36-storey blocks on the sprawling 838,488 sq ft site will
hold about 1,500 homes. There will also be six pairs of unique semi-
detached houses.
CapitaLand is developing the 99-year leasehold plot with three
partners. Hotel Properties and a Morgan Stanley Real Estate fund will
each hold 22.5 per cent, while Wachovia Development will take 20 per
cent.
These parties, which borrowed a whopping $1.996 billion for the
ambitious project, yesterday held a signing ceremony for the loan
with their bankers at the Four Seasons Hotel.
It is the largest syndicated residential property development loan
ever arranged in Singapore and comes amid a slow housing scene and
tight credit markets.
CapitaLand said the deal comprises a $1.362 billion term loan, $500
million of revolving credit and $133.9 million in bank guarantees.
The collective sale deal for the former Farrer Court condo site was
inked in June last year at $1.338 billion, or up to $783 per sq ft
(psf) of potential gross floor area.
Ms Patricia Chia, chief executive of CapitaLand Residential
Singapore, said the project's break- even cost is around $1,350 psf
to $1,450 psf.
The condo will be launched in the first half of next year.
Developers generally see no need to hurry given the slow property
sector, falling share markets and continuing bad news from the United
States.
CapitaLand chief executive Liew Mun Leong said at the signing
ceremony that the past few months have been challenging, but the
business world must go on, notwithstanding the current economic
turbulence in the US.
He said bankers, developers, businesses and potential partners could
come together to exploit opportunities that increase during bad
times.
Mr Liew added later: 'Sentiment has been affected in the US, but I
think the fundamentals in Asia - in terms of economic growth, the
demand, urbanisation - are still very strong.'
CapitaMall Trust to offer bumper payout
July 18, 2008
CapitaMall Trust to offer bumper payout
UNITHOLDERS of CapitaMall Trust (CMT) will receive a bumper payout
for the second quarter, with distributable income up 20 per cent to
$58.6 million from last year.
The trust will pay out 3.52 cents per unit for the three months ended
June 30, compared with 3.12 cents per unit last year.
CMT said its portfolio performed better than forecast, mainly due to
stronger rentals achieved on new and renewed leases.
Consultant Jones Lang LaSalle and CapitaLand Research also project
CMT's rental rates to increase between 16.1 and 17.5 per cent by
2012.
This is despite record inflation threatening a further decline in
retail spending and rising operating costs for retailers.
CMT, listed in 2002, is the first real estate investment trust (Reit)
to report its second-quarter results. With a current asset value of
$7.2 billion, it is the largest Reit in both asset size and market
capitalisation in Singapore.
It is also on track to reach its target asset value of $9 billion by
2010 through new acquisitions and enhancements to its current pool of
shopping malls.
'Asset enhancement has grown to become a key contributor to CMT's
distribution per unit and net asset value growth,' Mr Pua Seck Guan,
the chief executive of the Reit's manager, said yesterday.
Upgrades to enhance its retail malls are expected to continue into
2010.
In May, CMT said it would pay the Government $840 million for The
Atrium@Orchard. It said the integration with the adjacent Plaza
Singapura would require an additional $150.1 million in capital
expenditure.
CMT units rose 3 cents to $3.07 yesterday.
CapitaMall Trust to offer bumper payout
UNITHOLDERS of CapitaMall Trust (CMT) will receive a bumper payout
for the second quarter, with distributable income up 20 per cent to
$58.6 million from last year.
The trust will pay out 3.52 cents per unit for the three months ended
June 30, compared with 3.12 cents per unit last year.
CMT said its portfolio performed better than forecast, mainly due to
stronger rentals achieved on new and renewed leases.
Consultant Jones Lang LaSalle and CapitaLand Research also project
CMT's rental rates to increase between 16.1 and 17.5 per cent by
2012.
This is despite record inflation threatening a further decline in
retail spending and rising operating costs for retailers.
CMT, listed in 2002, is the first real estate investment trust (Reit)
to report its second-quarter results. With a current asset value of
$7.2 billion, it is the largest Reit in both asset size and market
capitalisation in Singapore.
It is also on track to reach its target asset value of $9 billion by
2010 through new acquisitions and enhancements to its current pool of
shopping malls.
'Asset enhancement has grown to become a key contributor to CMT's
distribution per unit and net asset value growth,' Mr Pua Seck Guan,
the chief executive of the Reit's manager, said yesterday.
Upgrades to enhance its retail malls are expected to continue into
2010.
In May, CMT said it would pay the Government $840 million for The
Atrium@Orchard. It said the integration with the adjacent Plaza
Singapura would require an additional $150.1 million in capital
expenditure.
CMT units rose 3 cents to $3.07 yesterday.
Prime residential rents could fall 4.5% by year end
July 18, 2008
Prime residential rents could fall 4.5% by year end
By Nicholas Fang
RESIDENTIAL rents in Singapore's prime districts could drop by 4.5
per cent by year end, amid fears of a longer-than-expected downturn
in the United States.
Property consultant Jones Lang LaSalle (JLL) said the high rentals
seen in the Republic's prime districts last year are now facing
downward pressure.
Prime properties are typically located in districts nine to 11 with
units ranging in size from 500 to 2,000 sq ft.
JLL South-east Asia and Singapore managing director Chris Fossick
said in a press conference yesterday: 'Expatriates with lower housing
budgets are moving out to the non-prime market, causing typical prime
rentals to ease marginally in the first half of this year.'
According to JLL, luxury prime property rentals softened by 1 per
cent in the year-to-date while typical prime rents weakened by 2 per
cent.
Said JLL: 'With the US economy facing the potential of a longer
downturn than expected due to the sub-prime woes, credit crunch and
rising inflation, market sentiments continue to weaken in Singapore.
'The level of residential collective sales has dropped to only two
transactions worth $55.3 million in the first half of the year
compared with51 transactions worth some $9.33 billion over the same
period last year.'
JLL forecasts that average resale prices in the central district are
expected to ease about 1 per cent year-on-year by next year while
mass-market resale prices will most likely maintain current levels.
Meanwhile, prices in the luxury prime market are expected to contract
the most, falling some 11 to 13 per cent year-on-year next year.
However, Mr Fossick believes that once the US housing crisis passes,
a recovery in this region will be swift given the sentiment-driven
nature of the industry.
'The uncertainty in the US is unlikely to clear up in the next six
months, but if things begin to look up after that, we could see a
rapid turnaround here as soon as early next year.'
Prime residential rents could fall 4.5% by year end
By Nicholas Fang
RESIDENTIAL rents in Singapore's prime districts could drop by 4.5
per cent by year end, amid fears of a longer-than-expected downturn
in the United States.
Property consultant Jones Lang LaSalle (JLL) said the high rentals
seen in the Republic's prime districts last year are now facing
downward pressure.
Prime properties are typically located in districts nine to 11 with
units ranging in size from 500 to 2,000 sq ft.
JLL South-east Asia and Singapore managing director Chris Fossick
said in a press conference yesterday: 'Expatriates with lower housing
budgets are moving out to the non-prime market, causing typical prime
rentals to ease marginally in the first half of this year.'
According to JLL, luxury prime property rentals softened by 1 per
cent in the year-to-date while typical prime rents weakened by 2 per
cent.
Said JLL: 'With the US economy facing the potential of a longer
downturn than expected due to the sub-prime woes, credit crunch and
rising inflation, market sentiments continue to weaken in Singapore.
'The level of residential collective sales has dropped to only two
transactions worth $55.3 million in the first half of the year
compared with51 transactions worth some $9.33 billion over the same
period last year.'
JLL forecasts that average resale prices in the central district are
expected to ease about 1 per cent year-on-year by next year while
mass-market resale prices will most likely maintain current levels.
Meanwhile, prices in the luxury prime market are expected to contract
the most, falling some 11 to 13 per cent year-on-year next year.
However, Mr Fossick believes that once the US housing crisis passes,
a recovery in this region will be swift given the sentiment-driven
nature of the industry.
'The uncertainty in the US is unlikely to clear up in the next six
months, but if things begin to look up after that, we could see a
rapid turnaround here as soon as early next year.'
Trumping the US real estate slump
July 18, 2008
SPOTLIGHT PEOPLE
Trumping the US real estate slump
THE real estate market in the US might be slumping, but not for Mr
Donald Trump, who has sold a Palm Beach mansion for US$100 million
(S$135 million) to a Russian billionaire.
'In an age of so many people getting hurt in real estate, it shows
you can still do well,' he told The Associated Press in a recent
telephone interview.
His spokesman says US$100 million is the highest sum ever paid for an
estate in the United States, though there is no way to verify that
claim.
Russian fertiliser billionaire Dmitry Rybolovlev's new 60,000-sq ft
oceanfront home, called Maison de L'Amitie, is spread over several
buildings and includes coat closets and bathrooms off the main
entrance for easy entertaining.
Mr Trump had paid about US$41 million for it in 2004. The American
tycoon assigned renovations to Ms Kendra Todd, the winner in 2005 of
the third season of his reality TV show The Apprentice. She dressed
it up with marble and 24K gold fixtures.
Despite his upbeat assessment of the sale, the mansion did not quite
meet Mr Trump's target price. He originally put the pile on the
market in 2006 for US$125 million.
SPOTLIGHT PEOPLE
Trumping the US real estate slump
THE real estate market in the US might be slumping, but not for Mr
Donald Trump, who has sold a Palm Beach mansion for US$100 million
(S$135 million) to a Russian billionaire.
'In an age of so many people getting hurt in real estate, it shows
you can still do well,' he told The Associated Press in a recent
telephone interview.
His spokesman says US$100 million is the highest sum ever paid for an
estate in the United States, though there is no way to verify that
claim.
Russian fertiliser billionaire Dmitry Rybolovlev's new 60,000-sq ft
oceanfront home, called Maison de L'Amitie, is spread over several
buildings and includes coat closets and bathrooms off the main
entrance for easy entertaining.
Mr Trump had paid about US$41 million for it in 2004. The American
tycoon assigned renovations to Ms Kendra Todd, the winner in 2005 of
the third season of his reality TV show The Apprentice. She dressed
it up with marble and 24K gold fixtures.
Despite his upbeat assessment of the sale, the mansion did not quite
meet Mr Trump's target price. He originally put the pile on the
market in 2006 for US$125 million.
Thursday, July 17, 2008
Hiap Hoe-SuperBowl top bid for hotel site below forecast
Business Times - 17 Jul 2008
Hiap Hoe-SuperBowl top bid for hotel site below forecast
Group is aiming to build 3-star hotel that caters to China, India markets
By KALPANARASHIWALA
A JOINT venture between Hiap Hoe Ltd and its sister company SuperBowl Holdings Ltd yesterday placed a lower-than-expected top bid for a hotel site in the Balestier area opposite the Sun Yat Sen Nanyang Memorial Hall.
HH Properties bid $73.3 million or about $172 per square foot of potential gross floor area for the 99-year leasehold plot. This is lower than the $350-470 psf per plot ratio (psf ppr) that analysts had indicated for the site when it was launched by the Urban Redevelopment Authority in late March.
Industry observers noted that yesterday's top bid was also significantly below the $420 to $805 psf ppr at which the government awarded 99-year hotel sites last year.
Still, they were not too disappointed with the outcome of yesterday's tender. Property investment sentiment has worsened significantly in recent months, and especially in the past week following negative newsflow from the US.
So the observers were generally relieved that yesterday's tender attracted three bids - instead of a repeat-show of an earlier state tender for a hotel site at Race Course Road that closed in May without drawing a single bid.
Some analysts also suggested that stringent requirements for the latest plot in Balestier, including having to maintain a park that occupies about a quarter of the 1.77-hectare site, may have tempered bids yesterday.
'It's heartening to see several bids submitted,' CB Richard Ellis executive director Li Hiaw Ho said.
Jones Lang LaSalle executive vice-president Chee Hok Yean said: 'I think the government should consider making an award. Even with the stringent requirements, there were three bids. Awarding the site will help contribute to the supply of budget hotels in Singapore, a segment where more supply is needed to cater to regional travellers.'
The two other bidders at yesterday's tender were Garden City Holdings (S) Pte Ltd (controlled by the Tew family), and Park Hotel Group unit Park Plaza Pte Ltd, with respective bids of $53.13 million and $35 million.
Teo Ho Beng, managing director of both Hiap Hoe and SuperBowl (the two listed companies are part of Hiap Hoe Holdings group) told BT that if the companies are awarded the Balestier site, the plan is to develop 'probably a three-star hotel catering to businessmen as well as tourists, especially from China and India'.
The hotel may have about 500 rooms, and there will also likely be some retail (probably a small shopping centre) and office space.
'We expect to spend another $120 million or so in construction and fitting-out costs, so our all-in investment would be around $200 million,' Mr Teo indicated. At least 60 per cent of the gross floor area has to be for hotel and hotel-related uses.
Hiap Hoe group is no stranger to the Balestier area. Its headquarters are located there and last year, SuperBowl sold two adjoining freehold plots at Balestier Road slated for hotel development for $39.8 million, more than double the $17.8 million it had paid for the property a year earlier.
'That was an attractive offer on the table and we'd found the sites a little too small. So we disposed of them and decided to try bidding for alternative hotel sites,' Mr Teo said yesterday.
The group last year bid unsuccessfully at state tenders for hotel plots located at Tanjong Pagar, Rangoon Road, Upper Pickering Street, and New Market Street/Merchant Road.
Park and hotel: Hiap Hoe expects to spend another $120m in construction cost, if it is awarded the site
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Hiap Hoe-SuperBowl top bid for hotel site below forecast
Group is aiming to build 3-star hotel that caters to China, India markets
By KALPANARASHIWALA
A JOINT venture between Hiap Hoe Ltd and its sister company SuperBowl Holdings Ltd yesterday placed a lower-than-expected top bid for a hotel site in the Balestier area opposite the Sun Yat Sen Nanyang Memorial Hall.
HH Properties bid $73.3 million or about $172 per square foot of potential gross floor area for the 99-year leasehold plot. This is lower than the $350-470 psf per plot ratio (psf ppr) that analysts had indicated for the site when it was launched by the Urban Redevelopment Authority in late March.
Industry observers noted that yesterday's top bid was also significantly below the $420 to $805 psf ppr at which the government awarded 99-year hotel sites last year.
Still, they were not too disappointed with the outcome of yesterday's tender. Property investment sentiment has worsened significantly in recent months, and especially in the past week following negative newsflow from the US.
So the observers were generally relieved that yesterday's tender attracted three bids - instead of a repeat-show of an earlier state tender for a hotel site at Race Course Road that closed in May without drawing a single bid.
Some analysts also suggested that stringent requirements for the latest plot in Balestier, including having to maintain a park that occupies about a quarter of the 1.77-hectare site, may have tempered bids yesterday.
'It's heartening to see several bids submitted,' CB Richard Ellis executive director Li Hiaw Ho said.
Jones Lang LaSalle executive vice-president Chee Hok Yean said: 'I think the government should consider making an award. Even with the stringent requirements, there were three bids. Awarding the site will help contribute to the supply of budget hotels in Singapore, a segment where more supply is needed to cater to regional travellers.'
The two other bidders at yesterday's tender were Garden City Holdings (S) Pte Ltd (controlled by the Tew family), and Park Hotel Group unit Park Plaza Pte Ltd, with respective bids of $53.13 million and $35 million.
Teo Ho Beng, managing director of both Hiap Hoe and SuperBowl (the two listed companies are part of Hiap Hoe Holdings group) told BT that if the companies are awarded the Balestier site, the plan is to develop 'probably a three-star hotel catering to businessmen as well as tourists, especially from China and India'.
The hotel may have about 500 rooms, and there will also likely be some retail (probably a small shopping centre) and office space.
'We expect to spend another $120 million or so in construction and fitting-out costs, so our all-in investment would be around $200 million,' Mr Teo indicated. At least 60 per cent of the gross floor area has to be for hotel and hotel-related uses.
Hiap Hoe group is no stranger to the Balestier area. Its headquarters are located there and last year, SuperBowl sold two adjoining freehold plots at Balestier Road slated for hotel development for $39.8 million, more than double the $17.8 million it had paid for the property a year earlier.
'That was an attractive offer on the table and we'd found the sites a little too small. So we disposed of them and decided to try bidding for alternative hotel sites,' Mr Teo said yesterday.
The group last year bid unsuccessfully at state tenders for hotel plots located at Tanjong Pagar, Rangoon Road, Upper Pickering Street, and New Market Street/Merchant Road.
Park and hotel: Hiap Hoe expects to spend another $120m in construction cost, if it is awarded the site
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Good Class Bungalow land prices peaked in July 2007
Business Times - 17 Jul 2008
LETTER TO THE EDITOR
Good Class Bungalow land prices peaked in July 2007
I REFER to the report, 'Prices of Good Class Bungalows still going up, but volume falls' (BT, July 14) by Arthur Sim.
I am not alone in having received numerous calls from owners who own Good Class Bungalows (GCBs), as well as architects.
The article is misleading and flawed.
GCB land prices peaked in July 2007. If one were to take the average, one would be looking at the top end of $1,100 psf. 11 Queen Astrid Park was offered $35 million for 31,806 sq ft which equals to $1,100 psf. GCB land prices have been declining since the onset of the sub-prime crisis at the beginning of August 2007.
16 Leedon Park was contracted for $823 psf, almost 25 per cent off the peak of $1,100 psf. The property was bought for speculative purposes as it was immediately put up for sale at $1,000 psf. It remains unsold as of today. 11 Ford Avenue was sold for $782 psf, reinforcing the view that GCB land prices are declining. 2 Swettenham Road was transacted for $810 psf, further indicating the weakness of GCB land prices. 39 Leedon Park which was launched with much fanfare for $35 million was subsequently sold for $27.5 million.
The current market for GCB land prices would find buying support at around $800 psf. This is clearly a drop of almost 30 per cent. I foresee in the next six months that the support level could test $700-750 psf.
One reason why GCB land prices are declining could also be the high cost of reconstruction. At current levels of around $600 psf for a relatively good quality development, costs of building are weighing down on GCB Land prices. In fact, I foresee construction cost rising as high as $1,000 psf in the next one to two years. This would add further pressure on GCB land prices.
The bright side, however, are GCBs with existing buildings would be more resistant to price pressures. Buyers could reduce costs significantly by retrofitting the existing structures. The current level of new bungalows would find buying support at around $1,100 psf.
On a closing note, I find that it is absurd to justify price increases by taking into account the dollar value divided by the number of bungalows sold.
Michael French
Managing director
Asia Premier Property Consultants Pte Ltd
Arthur Sim replies: The report clearly states that the GCB peak in 2006 refers to the volume of transactions and not the highest prices achieved. Anyone looking to buy a GCB will know that the price for a newly constructed GCB and an old GCB can vary tremendously, even if these are on the same street. The price for the a new GCB will reflect construction costs while the price for the old GCB will more likely only reflect land cost. As such, using an average land price for GCBs to calculate price movements of GCBs (as the letter writer does) is not accurate. The price increases referred to in the report come from examples of transacted prices of the same property over 2007/2008. In the examples provided, prices increased.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
LETTER TO THE EDITOR
Good Class Bungalow land prices peaked in July 2007
I REFER to the report, 'Prices of Good Class Bungalows still going up, but volume falls' (BT, July 14) by Arthur Sim.
I am not alone in having received numerous calls from owners who own Good Class Bungalows (GCBs), as well as architects.
The article is misleading and flawed.
GCB land prices peaked in July 2007. If one were to take the average, one would be looking at the top end of $1,100 psf. 11 Queen Astrid Park was offered $35 million for 31,806 sq ft which equals to $1,100 psf. GCB land prices have been declining since the onset of the sub-prime crisis at the beginning of August 2007.
16 Leedon Park was contracted for $823 psf, almost 25 per cent off the peak of $1,100 psf. The property was bought for speculative purposes as it was immediately put up for sale at $1,000 psf. It remains unsold as of today. 11 Ford Avenue was sold for $782 psf, reinforcing the view that GCB land prices are declining. 2 Swettenham Road was transacted for $810 psf, further indicating the weakness of GCB land prices. 39 Leedon Park which was launched with much fanfare for $35 million was subsequently sold for $27.5 million.
The current market for GCB land prices would find buying support at around $800 psf. This is clearly a drop of almost 30 per cent. I foresee in the next six months that the support level could test $700-750 psf.
One reason why GCB land prices are declining could also be the high cost of reconstruction. At current levels of around $600 psf for a relatively good quality development, costs of building are weighing down on GCB Land prices. In fact, I foresee construction cost rising as high as $1,000 psf in the next one to two years. This would add further pressure on GCB land prices.
The bright side, however, are GCBs with existing buildings would be more resistant to price pressures. Buyers could reduce costs significantly by retrofitting the existing structures. The current level of new bungalows would find buying support at around $1,100 psf.
On a closing note, I find that it is absurd to justify price increases by taking into account the dollar value divided by the number of bungalows sold.
Michael French
Managing director
Asia Premier Property Consultants Pte Ltd
Arthur Sim replies: The report clearly states that the GCB peak in 2006 refers to the volume of transactions and not the highest prices achieved. Anyone looking to buy a GCB will know that the price for a newly constructed GCB and an old GCB can vary tremendously, even if these are on the same street. The price for the a new GCB will reflect construction costs while the price for the old GCB will more likely only reflect land cost. As such, using an average land price for GCBs to calculate price movements of GCBs (as the letter writer does) is not accurate. The price increases referred to in the report come from examples of transacted prices of the same property over 2007/2008. In the examples provided, prices increased.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Up to 75,000 new jobs could help to prop up market
The IR effect on housing demand
Up to 75,000 new jobs could help to prop up market
Thursday • July 17, 2008
Ku Swee Yong and Jane Kwa
HOMES for the masses have always been the backbone of Singapore’s residential market. And, with the two integrated resorts (IRs) expected to employ some 75,000 people, demand for such housing is likely to go up.
Both IRs are expected to draw a significant influx of “foreign talent”, simply because Singapore does not have enough people with the right skills for the various jobs that will be created.
When the IRs were first announced in 2005, the Government said that the IRs were expected to bring in about$5 billion of total investment and create35,000 new jobs. Today, the impact is likely to be much larger, after the consortiums behind Marina Bay Sands and Genting Resorts World increased their investments to over $6 billion each.
Up to 75,000 new jobs are expected to be created, of which 30,000 will be from Marina Bay Sands and 45,000 from Genting Resorts World. This figure is more than half of the 140,000 people currently employed in the industry.
Over the past 12 to 18 months, the labour market saw record employment creation on the back of strong economic growth. With the unemployment standing at a low of 2 per cent (54,400 people), the need to attract foreign talent with the right set of skills has become a priority.
As few Singaporeans are trained in this area, it is likely that many of the vacancies would have to be filled by foreigners.Assuming 30 per cent of the jobs (some 23,000 of them) are taken up by locals and the remaining 70 per cent (52,000 jobs) by foreigners, this would generate a substantial demand for housing, especially in the rental market, and to a certain extent, the primary and secondary sales market.
It is estimated that around 44,000 resort workers will most likely reside in the lower tier of the housing market. Hence, it is clear that most of the demand would enter both the HDB, as well as the lower end of the mass private residential housing rental market, as these are more affordable.
According to the 2005 General Household Survey, the average household size is expected to be 3.7 persons. Assuming that five foreigners share one house, the minimum requirement would translate to 8,800 home between 2009 and 2010. The entrance of these foreigners would definitely have a very positive effect in all layers of the housing market.
Although the Urban Redevelopment Authority’s first quarter figures show that there were 14,862 vacant private residential units available in the market, we at Savills Singapore believe that they could include units from condominiums that had been sold en bloc and old apartments in unliveable conditions.
Hence, the current available private units could be as few as 7,500 units.
Moreover, the mass segment will see a moderate supply of only 8,400 units to be completed between 2008 and 2010. This modest supply, coupled with the strong demand in the rental market, is likely to boost homebuyers’ as well as investors’ confidence in the residential mass-market.
More jobs will be created not just from the effects of IRs, but also other ongoing mega-projects from Exxon Mobil and the soon-to-be-completed shopping malls, like ION Orchard, Orchard Central and Somerset Central. This, together with the Government’s efforts to attract foreign investment, will ensure the continued influx of foreigners, which will, :in turn, help sustain rental demand, especially at lower tier of the housing market.
With so much potential, we believe that the demand for mass-market homes will remain strong in the coming months, barring any unforeseen circumstances that could rock the global economy.
Ku Swee Yong is director of marketing and business development at Savills Singapore.
Jane Kwa is a senior research andconsultancy analyst at Savills Singapore.
Copyright MediaCorp Press Ltd. All rights reserved.
Up to 75,000 new jobs could help to prop up market
Thursday • July 17, 2008
Ku Swee Yong and Jane Kwa
HOMES for the masses have always been the backbone of Singapore’s residential market. And, with the two integrated resorts (IRs) expected to employ some 75,000 people, demand for such housing is likely to go up.
Both IRs are expected to draw a significant influx of “foreign talent”, simply because Singapore does not have enough people with the right skills for the various jobs that will be created.
When the IRs were first announced in 2005, the Government said that the IRs were expected to bring in about$5 billion of total investment and create35,000 new jobs. Today, the impact is likely to be much larger, after the consortiums behind Marina Bay Sands and Genting Resorts World increased their investments to over $6 billion each.
Up to 75,000 new jobs are expected to be created, of which 30,000 will be from Marina Bay Sands and 45,000 from Genting Resorts World. This figure is more than half of the 140,000 people currently employed in the industry.
Over the past 12 to 18 months, the labour market saw record employment creation on the back of strong economic growth. With the unemployment standing at a low of 2 per cent (54,400 people), the need to attract foreign talent with the right set of skills has become a priority.
As few Singaporeans are trained in this area, it is likely that many of the vacancies would have to be filled by foreigners.Assuming 30 per cent of the jobs (some 23,000 of them) are taken up by locals and the remaining 70 per cent (52,000 jobs) by foreigners, this would generate a substantial demand for housing, especially in the rental market, and to a certain extent, the primary and secondary sales market.
It is estimated that around 44,000 resort workers will most likely reside in the lower tier of the housing market. Hence, it is clear that most of the demand would enter both the HDB, as well as the lower end of the mass private residential housing rental market, as these are more affordable.
According to the 2005 General Household Survey, the average household size is expected to be 3.7 persons. Assuming that five foreigners share one house, the minimum requirement would translate to 8,800 home between 2009 and 2010. The entrance of these foreigners would definitely have a very positive effect in all layers of the housing market.
Although the Urban Redevelopment Authority’s first quarter figures show that there were 14,862 vacant private residential units available in the market, we at Savills Singapore believe that they could include units from condominiums that had been sold en bloc and old apartments in unliveable conditions.
Hence, the current available private units could be as few as 7,500 units.
Moreover, the mass segment will see a moderate supply of only 8,400 units to be completed between 2008 and 2010. This modest supply, coupled with the strong demand in the rental market, is likely to boost homebuyers’ as well as investors’ confidence in the residential mass-market.
More jobs will be created not just from the effects of IRs, but also other ongoing mega-projects from Exxon Mobil and the soon-to-be-completed shopping malls, like ION Orchard, Orchard Central and Somerset Central. This, together with the Government’s efforts to attract foreign investment, will ensure the continued influx of foreigners, which will, :in turn, help sustain rental demand, especially at lower tier of the housing market.
With so much potential, we believe that the demand for mass-market homes will remain strong in the coming months, barring any unforeseen circumstances that could rock the global economy.
Ku Swee Yong is director of marketing and business development at Savills Singapore.
Jane Kwa is a senior research andconsultancy analyst at Savills Singapore.
Copyright MediaCorp Press Ltd. All rights reserved.
Developer wants to build luxury homes and hotels across Asia and Europe
‘We want to be a niche player’?
Developer wants to build luxury homes and hotels across Asia and Europe
Thursday • July 17, 2008
CONRAD RAJ
editor-at-large conrad@mediacorp.com.sg
FOLLOWING the launch of The Hamilton Scotts on Scotts Road, its developer Hayden Properties is now setting its sights on the region and beyond to develop and build similar ultra-luxurious homes.
Hayden has an interesting mix of owners. It is 50-per-cent owned by KOP Capital, founded by 39-year-old lawyer Ong Chih Ching and Leny Suparman, 33, who came from property consultancy CB Richard Ellis (Singapore). The other half is owned by Emirates Tarian Capital (ETC) of the United Arab Emirates.
Together, they plan to go overseas to develop hotels and resorts in Europe and Asia, according to KOP.
Both companies are already talking to potential investors and parties on acquiring land and developing properties overseas. Their interest lies in places such as Bali, Bangkok, Kuala Lumpur, Hong Kong, Japan, Vietnam, India and China.
KOP Capital, previously known as KOP Management Services and which sprung from the law firm of Koh Ong and Partners (KOP, get it?), is already familiar with overseas projects. The firm has been involved with the development of several luxury hotels and resorts in China.
And the two companies have got ultra-rich partners to support their expensive projects, both here and overseas. Its partner in Hayden, ETC, is a subsidiary boutique investment company of the Emirates Investment Group, whose real estate investments include Emirates International Holdings, Palazzo Versace Gold Coast in Australia, Palazzo Versace Dubai, D1 Residential Tower, Emirates Financial Towers, Karachi Financial Towers and White Bay.
In April, KOP sold a 51-per-cent stake in the company to the Dubai Investment Group, which is part of the business empire of Dubai’s ruler, Sheikh Mohammed Rashid Al Maktoum, whose diversified portfolio is valued at over US$7 billion ($9.45 billion).
“Hayden will concentrate on high end luxury properties, while KOP will go into opportunistic investments,” said Ms Ong, who has had 12 years of practice in corporate and property law, and who was a founder of the Singapore Investors Association of Singapore (Sias).
“We want to be a niche player in the high end lifestyle sector where there’s a lacuna (gap) in the market. There are lots of products created without much understanding of the life-style buyers want,” she said.
For instance when Hayden bought the Hamilton site, it did not at first think of putting up a luxury apartment block, instead it was looking at various other things like a serviced apartment which previous owner CapitaLand had planned for, or a hotel.
“But after talking to some people, we decided that what was needed was something iconic.
“The architects Eco-id came up with an innovative and daring design by giving apartment owners the comfort of parking their marques right by their residences, regardless of which level they are in,”Ms Ong said adding that they had to overcome various issues, including fire-safety compliance, et cetera.
Response to the launch of the 30-storey block scheduled for completion in 2011 was “very encouraging” the two said. “Although our launch party was scheduled for 8pm, people were already streaming in at 4pm, and we had more than 400 people turning up with all 500 kits that we had printed snapped up,” Ms Suparman said.
The two partners also disclosed that they received “no less than three offers” to purchase the entire project from parties from Russia, the Middle East and China.
“These people were looking for iconic developments and saw the Hamilton as an entry into the region’s property market. We didn’t mind selling them a chunk of the project but parting with the entire building would have made us appear desperate and looking like we were just in it for the punt,” she added.
Hayden has so far sold about a half dozen of the 56 units at an average price of $3,800 per sq ft or over $10 millionfor a 2,700 sq ft apartment, which doesnot include the 600 sq ft allotted for two cars.
The company has also tied up with the Ritz Carlton on a $300-million project in Cairnhill Road which will feature a 24-hour concierge service, housekeeping, sommelier service, and three sky terraces where residents can entertain, exercise or just lounge around.
The cheapest 2,800 sq ft apartment is expected to fetch at least $11.5 million while a junior penthouse of about 3,500 sq ft will cost about $18 million. Monthly maintenance will come to at least $2,500, the most expensive in Singapore.
Copyright MediaCorp Press Ltd. All rights reserved.
Developer wants to build luxury homes and hotels across Asia and Europe
Thursday • July 17, 2008
CONRAD RAJ
editor-at-large conrad@mediacorp.com.sg
FOLLOWING the launch of The Hamilton Scotts on Scotts Road, its developer Hayden Properties is now setting its sights on the region and beyond to develop and build similar ultra-luxurious homes.
Hayden has an interesting mix of owners. It is 50-per-cent owned by KOP Capital, founded by 39-year-old lawyer Ong Chih Ching and Leny Suparman, 33, who came from property consultancy CB Richard Ellis (Singapore). The other half is owned by Emirates Tarian Capital (ETC) of the United Arab Emirates.
Together, they plan to go overseas to develop hotels and resorts in Europe and Asia, according to KOP.
Both companies are already talking to potential investors and parties on acquiring land and developing properties overseas. Their interest lies in places such as Bali, Bangkok, Kuala Lumpur, Hong Kong, Japan, Vietnam, India and China.
KOP Capital, previously known as KOP Management Services and which sprung from the law firm of Koh Ong and Partners (KOP, get it?), is already familiar with overseas projects. The firm has been involved with the development of several luxury hotels and resorts in China.
And the two companies have got ultra-rich partners to support their expensive projects, both here and overseas. Its partner in Hayden, ETC, is a subsidiary boutique investment company of the Emirates Investment Group, whose real estate investments include Emirates International Holdings, Palazzo Versace Gold Coast in Australia, Palazzo Versace Dubai, D1 Residential Tower, Emirates Financial Towers, Karachi Financial Towers and White Bay.
In April, KOP sold a 51-per-cent stake in the company to the Dubai Investment Group, which is part of the business empire of Dubai’s ruler, Sheikh Mohammed Rashid Al Maktoum, whose diversified portfolio is valued at over US$7 billion ($9.45 billion).
“Hayden will concentrate on high end luxury properties, while KOP will go into opportunistic investments,” said Ms Ong, who has had 12 years of practice in corporate and property law, and who was a founder of the Singapore Investors Association of Singapore (Sias).
“We want to be a niche player in the high end lifestyle sector where there’s a lacuna (gap) in the market. There are lots of products created without much understanding of the life-style buyers want,” she said.
For instance when Hayden bought the Hamilton site, it did not at first think of putting up a luxury apartment block, instead it was looking at various other things like a serviced apartment which previous owner CapitaLand had planned for, or a hotel.
“But after talking to some people, we decided that what was needed was something iconic.
“The architects Eco-id came up with an innovative and daring design by giving apartment owners the comfort of parking their marques right by their residences, regardless of which level they are in,”Ms Ong said adding that they had to overcome various issues, including fire-safety compliance, et cetera.
Response to the launch of the 30-storey block scheduled for completion in 2011 was “very encouraging” the two said. “Although our launch party was scheduled for 8pm, people were already streaming in at 4pm, and we had more than 400 people turning up with all 500 kits that we had printed snapped up,” Ms Suparman said.
The two partners also disclosed that they received “no less than three offers” to purchase the entire project from parties from Russia, the Middle East and China.
“These people were looking for iconic developments and saw the Hamilton as an entry into the region’s property market. We didn’t mind selling them a chunk of the project but parting with the entire building would have made us appear desperate and looking like we were just in it for the punt,” she added.
Hayden has so far sold about a half dozen of the 56 units at an average price of $3,800 per sq ft or over $10 millionfor a 2,700 sq ft apartment, which doesnot include the 600 sq ft allotted for two cars.
The company has also tied up with the Ritz Carlton on a $300-million project in Cairnhill Road which will feature a 24-hour concierge service, housekeeping, sommelier service, and three sky terraces where residents can entertain, exercise or just lounge around.
The cheapest 2,800 sq ft apartment is expected to fetch at least $11.5 million while a junior penthouse of about 3,500 sq ft will cost about $18 million. Monthly maintenance will come to at least $2,500, the most expensive in Singapore.
Copyright MediaCorp Press Ltd. All rights reserved.
Old schoolhouse to become hip hotel
July 17, 2008
Old schoolhouse to become hip hotel
By Tessa Wong
ITS rooms once housed students thumbing through textbooks and reciting Chinese poetry.
But next year, a pre-war building in Little India will start hosting well-heeled travellers keen on spending a night or two in hip luxury.
A hotelier known for his unconventional tastes is giving the Dickson Road building, famous for its facade of ornate tiles, a facelift.
The four-storey conservation building, the former premises of the Hong Wen School - one of Singapore's oldest Chinese schools - was bought by Mr Loh Lik Peng this year.
He was behind boutique hotels New Majestic and 1929, both in Chinatown, which have been lauded in the international media for their fashionable interior designs. They, too, are in conservation buildings.
In the same vein, the as-yet-unnamed hotel will be pitched at young, trendy, high-spending travellers. Mr Loh has given three local design studios free rein to craft one floor each.
The building is expected to open as a 29-room hotel by the end of next year.
Guests, who will pay between $250 and $400 a night for a room, can expect eclectic graphics featuring spaceships, monsters and local retro imagery.
'It's not something that everyone will like, but that's radical design for you,' said Mr Loh.
He estimated the building was built in the 1920s or 1930s, going by its architectural style. It features European art nouveau-inspired tiles used on a scale that is unique to Singapore, said the Urban Redevelopment Authority, which gave the building conservation status in 1989.
It served as a residential complex until 1945, when Hong Wen School moved in, according to former student Lim Kim Yiang.
When the school moved to its current premises at Victoria Street in 1981, the Singapore Buddhist Federation took over the building.
The building joins a number of old schools that have recently been converted for commercial use. They include the former Methodist Girls' School premises and the former Trinity Theological College campus.
Both are situated on Mount Sophia and have been turned into art complexes.
The new hotel joins a growing number of low- to mid-range places that have sprouted up in the area recently.
NEW LEASE OF LIFE: Mr Loh is targeting the 29-room Dickson Road hotel - due to open by the end of next year - at young, trendy high-spending travellers. The building used to house Hong Wen School, one of the oldest Chinese schools in Singapore. -- ST PHOTO: LIM WUI LIANG
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Old schoolhouse to become hip hotel
By Tessa Wong
ITS rooms once housed students thumbing through textbooks and reciting Chinese poetry.
But next year, a pre-war building in Little India will start hosting well-heeled travellers keen on spending a night or two in hip luxury.
A hotelier known for his unconventional tastes is giving the Dickson Road building, famous for its facade of ornate tiles, a facelift.
The four-storey conservation building, the former premises of the Hong Wen School - one of Singapore's oldest Chinese schools - was bought by Mr Loh Lik Peng this year.
He was behind boutique hotels New Majestic and 1929, both in Chinatown, which have been lauded in the international media for their fashionable interior designs. They, too, are in conservation buildings.
In the same vein, the as-yet-unnamed hotel will be pitched at young, trendy, high-spending travellers. Mr Loh has given three local design studios free rein to craft one floor each.
The building is expected to open as a 29-room hotel by the end of next year.
Guests, who will pay between $250 and $400 a night for a room, can expect eclectic graphics featuring spaceships, monsters and local retro imagery.
'It's not something that everyone will like, but that's radical design for you,' said Mr Loh.
He estimated the building was built in the 1920s or 1930s, going by its architectural style. It features European art nouveau-inspired tiles used on a scale that is unique to Singapore, said the Urban Redevelopment Authority, which gave the building conservation status in 1989.
It served as a residential complex until 1945, when Hong Wen School moved in, according to former student Lim Kim Yiang.
When the school moved to its current premises at Victoria Street in 1981, the Singapore Buddhist Federation took over the building.
The building joins a number of old schools that have recently been converted for commercial use. They include the former Methodist Girls' School premises and the former Trinity Theological College campus.
Both are situated on Mount Sophia and have been turned into art complexes.
The new hotel joins a growing number of low- to mid-range places that have sprouted up in the area recently.
NEW LEASE OF LIFE: Mr Loh is targeting the 29-room Dickson Road hotel - due to open by the end of next year - at young, trendy high-spending travellers. The building used to house Hong Wen School, one of the oldest Chinese schools in Singapore. -- ST PHOTO: LIM WUI LIANG
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
25-year-old Joo Chiat Complex gets a makeover
July 17, 2008
25-year-old Joo Chiat Complex gets a makeover
Shop owners hope business will improve after upgrading is completed next month
By Arlina Arshad
IN AN attempt to compete with Singapore's shiny new mega malls, the 25-year-old Joo Chiat Complex in Geylang Serai is getting a makeover.
Shop owners in the centre, which specialises in Malay baju, textiles and crafts, are eager to see the dim atrium, worn washrooms and old floors spruced up.
The sterile grey walls and monotone tiles are on their way out. As are the old awnings, which are making way for fire-resistant canopies.
The building is also getting neon signs, a CCTV security system and a better air-conditioning system, a Housing Board spokesman said in an e-mail message to The Straits Times on Monday. The HDB owns the centre.
The upgrades, which started in March and are expected to be completed next month, were welcomed by most shop owners.
'The complex is so old that people would rather shop at VivoCity. The interior is dark, the lights are dim, everything is rusty,' said curtain seller Jimmy Saw, 50, who has been running the family business there for 25 years.
'I hope more young people will come and business will improve.'
With the fasting month of Ramadan starting in September, shop owners hope sales will pick up. Malay-Muslim crowds traditionally throng the complex to stock up on food, festive cookies and traditional baju kurung to celebrate Hari Raya, which falls on Oct 1 this year.
Renovations to the Joo Chiat Complex were the result of an appeal by shop vendors, said the HDB spokesman. HDB and Marine Parade Town Council will foot all costs.
The HDB hopes the complex, with its 200 shops and offices, will remain attractive to shoppers, the spokesman said.
Shop owners still have one main grouse though. They say the walls in the toilet are not full-length, causing water from one cubicle to flood others. The HDB has said it would look into the matter.
Joo Chiat Complex Traders Association secretary David Ang, 50, hopes the HDB will also cut rent by 10 to 20 per cent. He said the vendors have to close early at night because of the upgrading works, costing them money.
Another vendor, Mr Osman Al-Khatib, 55, who sells religious books, hopes rent will not be raised with better facilities.
On the wish list of Madam Mahani Ramadan, 45, are cleaners to help keep the complex spick and span.
'We have to walk out of the complex to throw our own rubbish in the bins. The bins are always overflowing with leftover food which smells bad,' she said.
DRAWING MORE SHOPPERS: An artist's impression of how Joo Chiat Complex in Geylang Serai will look after the renovations. -- PHOTO: HDB
arlina@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
25-year-old Joo Chiat Complex gets a makeover
Shop owners hope business will improve after upgrading is completed next month
By Arlina Arshad
IN AN attempt to compete with Singapore's shiny new mega malls, the 25-year-old Joo Chiat Complex in Geylang Serai is getting a makeover.
Shop owners in the centre, which specialises in Malay baju, textiles and crafts, are eager to see the dim atrium, worn washrooms and old floors spruced up.
The sterile grey walls and monotone tiles are on their way out. As are the old awnings, which are making way for fire-resistant canopies.
The building is also getting neon signs, a CCTV security system and a better air-conditioning system, a Housing Board spokesman said in an e-mail message to The Straits Times on Monday. The HDB owns the centre.
The upgrades, which started in March and are expected to be completed next month, were welcomed by most shop owners.
'The complex is so old that people would rather shop at VivoCity. The interior is dark, the lights are dim, everything is rusty,' said curtain seller Jimmy Saw, 50, who has been running the family business there for 25 years.
'I hope more young people will come and business will improve.'
With the fasting month of Ramadan starting in September, shop owners hope sales will pick up. Malay-Muslim crowds traditionally throng the complex to stock up on food, festive cookies and traditional baju kurung to celebrate Hari Raya, which falls on Oct 1 this year.
Renovations to the Joo Chiat Complex were the result of an appeal by shop vendors, said the HDB spokesman. HDB and Marine Parade Town Council will foot all costs.
The HDB hopes the complex, with its 200 shops and offices, will remain attractive to shoppers, the spokesman said.
Shop owners still have one main grouse though. They say the walls in the toilet are not full-length, causing water from one cubicle to flood others. The HDB has said it would look into the matter.
Joo Chiat Complex Traders Association secretary David Ang, 50, hopes the HDB will also cut rent by 10 to 20 per cent. He said the vendors have to close early at night because of the upgrading works, costing them money.
Another vendor, Mr Osman Al-Khatib, 55, who sells religious books, hopes rent will not be raised with better facilities.
On the wish list of Madam Mahani Ramadan, 45, are cleaners to help keep the complex spick and span.
'We have to walk out of the complex to throw our own rubbish in the bins. The bins are always overflowing with leftover food which smells bad,' she said.
DRAWING MORE SHOPPERS: An artist's impression of how Joo Chiat Complex in Geylang Serai will look after the renovations. -- PHOTO: HDB
arlina@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Foreign lawyers flock to Singapore
July 17, 2008
Foreign lawyers flock to Singapore
One QC who set up office here is now arbitrating a $34m dispute
By K.C. Vijayan
BANGLADESH-BORN lawyer Ajmalul Hossain came to Singapore last year to set up an office, spurred on by the business boom in the region.
The 57-year-old Queen's Counsel, one of a select group of senior London-trained barristers, is now arbitrating a US$25 million (S$34 million) dispute between two foreign companies.
'This is a growth area, the demand for legal services means there is plenty of work, and I like your nice and safe environment,' he said.
Mr Hossain is part of a growing contingent of foreign lawyers who are setting up shop in Singapore. According to the Attorney- General's Chambers (AGC), their numbers have nearly doubled to 900 in the last five years.
They are drawn to the rising demand for legal services, such as advice on mergers, help with business expansions and the arbitration of cross-border trade disputes.
An AGC spokesman said that the increase in foreign lawyers followed strong economic growth in the region.
'Whether such increase will continue in the future will depend on economic prospects in Singapore and the region,' she said.
For now, foreign lawyers are not allowed to appear in court here. They also cannot practise Singapore law except in the area of arbitration, which is an out-of-court arrangement.
That could soon change, though. Last December, the Law Ministry announced that up to five foreign firms would be allowed to practise in areas such as banking, corporate finance and maritime law.
The move is expected to take effect next year.
Mr Stuart Isaacs, a Queen's Counsel who started a firm here this week, said he would welcome the chance to argue in court.
'I do think there is a lot of merit in...being outward-looking, not inward-looking,' he said. 'If you let people in, it can only do good in the long run.'
Queen's Counsel like Mr Isaacs have been long sought after here for their expertise in banking, civil fraud and insurance.
He has spent 20 years commuting from England to advise and arbitrate in civil cases, among other things.
Mr Isaacs said that there is more than enough work here to go around and he is here to 'value-add', not compete.
'You've got very able lawyers here. The problem is, there is a shortage of them because of the legal work there is,' the 56-year-old father of three said.
'People are very often conflicted out and therefore you have clients who are left without good legal representation.'
Like him, Mr Hossain, who set up his office here last November, prefers Singapore over Asia's other aspiring legal hub, Hong Kong.
'Singapore has a less rigid system in place and the practice regime is much more open for foreign lawyers,' he said.
vijayan@sph.com.sg
--------------------------------------------------------------------------------
Some restrictions
FOREIGN lawyers can register with the Attorney-General's Chambers in order to practise here, subject to conditions.
The scheme allows lawyers to set up firms to arbitrate commercial disputes and do legal work from other countries.
But they cannot appear in court.
Foreign lawyers can be part of a Singapore law firm. However, they cannot deal with a client directly unless it involves work in the laws of the country in which they are qualified.
Any paperwork involving Singapore law has to go through a Singapore lawyer.
There are plans to allow foreign law firms to participate in high-end work such as mergers and acquisitions as well as commercial cases that fall under Singapore's laws.
K.C. VIJAYAN
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Foreign lawyers flock to Singapore
One QC who set up office here is now arbitrating a $34m dispute
By K.C. Vijayan
BANGLADESH-BORN lawyer Ajmalul Hossain came to Singapore last year to set up an office, spurred on by the business boom in the region.
The 57-year-old Queen's Counsel, one of a select group of senior London-trained barristers, is now arbitrating a US$25 million (S$34 million) dispute between two foreign companies.
'This is a growth area, the demand for legal services means there is plenty of work, and I like your nice and safe environment,' he said.
Mr Hossain is part of a growing contingent of foreign lawyers who are setting up shop in Singapore. According to the Attorney- General's Chambers (AGC), their numbers have nearly doubled to 900 in the last five years.
They are drawn to the rising demand for legal services, such as advice on mergers, help with business expansions and the arbitration of cross-border trade disputes.
An AGC spokesman said that the increase in foreign lawyers followed strong economic growth in the region.
'Whether such increase will continue in the future will depend on economic prospects in Singapore and the region,' she said.
For now, foreign lawyers are not allowed to appear in court here. They also cannot practise Singapore law except in the area of arbitration, which is an out-of-court arrangement.
That could soon change, though. Last December, the Law Ministry announced that up to five foreign firms would be allowed to practise in areas such as banking, corporate finance and maritime law.
The move is expected to take effect next year.
Mr Stuart Isaacs, a Queen's Counsel who started a firm here this week, said he would welcome the chance to argue in court.
'I do think there is a lot of merit in...being outward-looking, not inward-looking,' he said. 'If you let people in, it can only do good in the long run.'
Queen's Counsel like Mr Isaacs have been long sought after here for their expertise in banking, civil fraud and insurance.
He has spent 20 years commuting from England to advise and arbitrate in civil cases, among other things.
Mr Isaacs said that there is more than enough work here to go around and he is here to 'value-add', not compete.
'You've got very able lawyers here. The problem is, there is a shortage of them because of the legal work there is,' the 56-year-old father of three said.
'People are very often conflicted out and therefore you have clients who are left without good legal representation.'
Like him, Mr Hossain, who set up his office here last November, prefers Singapore over Asia's other aspiring legal hub, Hong Kong.
'Singapore has a less rigid system in place and the practice regime is much more open for foreign lawyers,' he said.
vijayan@sph.com.sg
--------------------------------------------------------------------------------
Some restrictions
FOREIGN lawyers can register with the Attorney-General's Chambers in order to practise here, subject to conditions.
The scheme allows lawyers to set up firms to arbitrate commercial disputes and do legal work from other countries.
But they cannot appear in court.
Foreign lawyers can be part of a Singapore law firm. However, they cannot deal with a client directly unless it involves work in the laws of the country in which they are qualified.
Any paperwork involving Singapore law has to go through a Singapore lawyer.
There are plans to allow foreign law firms to participate in high-end work such as mergers and acquisitions as well as commercial cases that fall under Singapore's laws.
K.C. VIJAYAN
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Just three lacklustre bids for Balestier hotel site
July 17, 2008
Just three lacklustre bids for Balestier hotel site
Financial climate and site's high development requirements may be behind poor showing
By Joyce Teo
A SPRAWLING Balestier Road hotel site integrated with a park attracted just three bids, all well under expectations.
A market expert had tipped a price of about $150 million to $200 million, or $350 to $470 per sq ft (psf) of gross floor area, but the top bidder could not even manage half that.
Niche developer Hiap Hoe Group offered $73.3 million or $172 psf when the tender closed yesterday.
Garden City Hotel Holdings, owned by Mr Tew Boon Kui, lodged $125 psf, while Park Hotel's unit Park Plaza would stump up only $82 psf.
Knight Frank's director of research and consultancy Nicholas Mak, who had tipped bids of $350 to $470 psf at the end of March, said market conditions had changed.
Developers were cooling off largely because of the financial turmoil, a slowdown in the growth of visitor arrivals here and high construction costs, said Mr Mak.
Other experts felt that the 99-year leasehold site in front of the Sun Yat Sen Nanyang Memorial Hall was not that compelling.
Although Balestier Road has a bright mix of conserved shophouses and modern commercial and residential buildings, it also accommodates budget hotels, cheap and cheerful eateries and karaoke bars.
Another key reason for the low bids could have been the development demands placed on the 1.77ha site, the biggest hotel plot the Urban Redevelopment Authority (URA) has released since 2001.
The developer must build and manage a 0.46ha park in the middle of the plot as well as a public event space within the park.
Savills Singapore's director of marketing and business development Ku Swee Yong said a developer's returns would be hit by the need to build and manage the park.
Sixty per cent of the hotel site's gross floor area must be used for a hotel, which could yield about 675 rooms. The rest of the space can be used for homes, shops and offices.
If Hiap Hoe, which submitted its bid through HH Properties, gets the site, it is expected to use it for hotel and commercial space. It will be Hiap Hoe's first hotel project.
CBRE Research executive director Li Hiaw Ho did see a glimpse of silver lining in the three bargain-basement offers for the site.
'It is heartening to see several bids submitted for the site in view of the fact that no bids were received for a hotel site in Race Course Road/Bukit Timah Road that closed in May,' said Mr Li.
The URA will award the tender once the bids are evaluated.
joyceteo@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Just three lacklustre bids for Balestier hotel site
Financial climate and site's high development requirements may be behind poor showing
By Joyce Teo
A SPRAWLING Balestier Road hotel site integrated with a park attracted just three bids, all well under expectations.
A market expert had tipped a price of about $150 million to $200 million, or $350 to $470 per sq ft (psf) of gross floor area, but the top bidder could not even manage half that.
Niche developer Hiap Hoe Group offered $73.3 million or $172 psf when the tender closed yesterday.
Garden City Hotel Holdings, owned by Mr Tew Boon Kui, lodged $125 psf, while Park Hotel's unit Park Plaza would stump up only $82 psf.
Knight Frank's director of research and consultancy Nicholas Mak, who had tipped bids of $350 to $470 psf at the end of March, said market conditions had changed.
Developers were cooling off largely because of the financial turmoil, a slowdown in the growth of visitor arrivals here and high construction costs, said Mr Mak.
Other experts felt that the 99-year leasehold site in front of the Sun Yat Sen Nanyang Memorial Hall was not that compelling.
Although Balestier Road has a bright mix of conserved shophouses and modern commercial and residential buildings, it also accommodates budget hotels, cheap and cheerful eateries and karaoke bars.
Another key reason for the low bids could have been the development demands placed on the 1.77ha site, the biggest hotel plot the Urban Redevelopment Authority (URA) has released since 2001.
The developer must build and manage a 0.46ha park in the middle of the plot as well as a public event space within the park.
Savills Singapore's director of marketing and business development Ku Swee Yong said a developer's returns would be hit by the need to build and manage the park.
Sixty per cent of the hotel site's gross floor area must be used for a hotel, which could yield about 675 rooms. The rest of the space can be used for homes, shops and offices.
If Hiap Hoe, which submitted its bid through HH Properties, gets the site, it is expected to use it for hotel and commercial space. It will be Hiap Hoe's first hotel project.
CBRE Research executive director Li Hiaw Ho did see a glimpse of silver lining in the three bargain-basement offers for the site.
'It is heartening to see several bids submitted for the site in view of the fact that no bids were received for a hotel site in Race Course Road/Bukit Timah Road that closed in May,' said Mr Li.
The URA will award the tender once the bids are evaluated.
joyceteo@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Up 77%: New private home sales
July 16, 2008
Up 77%: New private home sales
Best showing since last Sept following US sub-prime woes, but market still cautious
By Joyce Teo
SALES of new private homes shot up 77 per cent to 801 units last month, from just 453 in May, on the back of more project launches.
That was the best showing since September last year when the property market slowed in the wake of the United States' sub-prime woes and stock market jitters.
But these numbers do not necessarily signal the return of the good times. The mood in the property market remains cautious, particularly as more bad news emerges from the US, market watchers say.
Last month, the total number of units launched by developers - mostly in the mass to mid-end segment - registered a dramatic jump of 124 per cent to 1,069 units, according to monthly figures released by the Urban Redevelopment Authority (URA) yesterday.
Developers are stepping up launches despite the weak sentiment as they want to launch ahead of the Hungry Ghost month starting on Aug 1, said Colliers International director for research and advisory Tay Huey Ying. Some home-hunters believe it is unlucky to buy at this time.
Some developers hope to clear stocks of 99-year leasehold properties which will become less attractive as the leases run down, she said.
Last month's healthy sales figures were propped up, to a large extent, by the volume done at two large 99-year leasehold projects.
The 616-unit Clover by the Park in Bishan, alone accounted for 197 units sold - out of 308 units launched for sale - at a median price of $765 per sq ft (psf). The 348-unit Dakota Residences in Dakota Crescent sold 144 of 210 launched units at $978 psf.
Most of the properties sold last month were under $1,000 psf, indicating demand from upgraders, said the director of Savills Residential, Mr Ku Swee Yong. Only projects which were priced realistically sold fairly well, he said.
June sales show there is latent demand but buyers are price-sensitive, said DTZ executive director and regional head for consulting and research Ong Choon Fah.
Knight Frank director of research and consultancy Nicholas Mak said the number of launches has risen faster than sales figures, which could result in a gradual rise in the number of unsold housing stock.
If this stock builds up, it will be one of the factors that could weigh on prices.
But for now, this month's sales figures are expected to be even stronger owing to more new launches, consultants said.
However, there should be a drop in next month's home sales due to the Hungry Ghost month coupled with continuing fallout from the US housing crisis, said Mr Mak.
Price weakness, if any, will register only in the third or fourth quarter, he said.
The turnout at new showflats remains strong but potential buyers are very cautious when it comes to committing to a purchase, market watchers say.
'There's no push factor to buy now,' said Mrs Ong. 'Sentiment has been affected over the weekend by the US news. But affordability is still there.'
As developers are increasingly forgoing aggressive pricing strategies in favour of competitive pricing, cumulatively, the general market will see softer prices, said Ms Tay.
Colliers International's research shows that luxury apartment prices already fell 3.9 per cent from the first quarter to an average of $3,049 psf in the second quarter, she said.
Meanwhile, the URA yesterday put up for sale a condominium site that is just next to the Tanah Merah MRT station.
Consultants expect a new 99-year leasehold project on the site to fetch average prices of between $700 psf and $800 psf.
CLOVER BY THE PARK: The 616-unit Bishan development saw 197 units sold. -- PHOTO: SIM LIAN
DAKOTA RESIDENCES: The 348-unit project in Dakota Crescent sold 144 units. -- PHOTO: HO BEE INVESTMENT
joyceteo@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Up 77%: New private home sales
Best showing since last Sept following US sub-prime woes, but market still cautious
By Joyce Teo
SALES of new private homes shot up 77 per cent to 801 units last month, from just 453 in May, on the back of more project launches.
That was the best showing since September last year when the property market slowed in the wake of the United States' sub-prime woes and stock market jitters.
But these numbers do not necessarily signal the return of the good times. The mood in the property market remains cautious, particularly as more bad news emerges from the US, market watchers say.
Last month, the total number of units launched by developers - mostly in the mass to mid-end segment - registered a dramatic jump of 124 per cent to 1,069 units, according to monthly figures released by the Urban Redevelopment Authority (URA) yesterday.
Developers are stepping up launches despite the weak sentiment as they want to launch ahead of the Hungry Ghost month starting on Aug 1, said Colliers International director for research and advisory Tay Huey Ying. Some home-hunters believe it is unlucky to buy at this time.
Some developers hope to clear stocks of 99-year leasehold properties which will become less attractive as the leases run down, she said.
Last month's healthy sales figures were propped up, to a large extent, by the volume done at two large 99-year leasehold projects.
The 616-unit Clover by the Park in Bishan, alone accounted for 197 units sold - out of 308 units launched for sale - at a median price of $765 per sq ft (psf). The 348-unit Dakota Residences in Dakota Crescent sold 144 of 210 launched units at $978 psf.
Most of the properties sold last month were under $1,000 psf, indicating demand from upgraders, said the director of Savills Residential, Mr Ku Swee Yong. Only projects which were priced realistically sold fairly well, he said.
June sales show there is latent demand but buyers are price-sensitive, said DTZ executive director and regional head for consulting and research Ong Choon Fah.
Knight Frank director of research and consultancy Nicholas Mak said the number of launches has risen faster than sales figures, which could result in a gradual rise in the number of unsold housing stock.
If this stock builds up, it will be one of the factors that could weigh on prices.
But for now, this month's sales figures are expected to be even stronger owing to more new launches, consultants said.
However, there should be a drop in next month's home sales due to the Hungry Ghost month coupled with continuing fallout from the US housing crisis, said Mr Mak.
Price weakness, if any, will register only in the third or fourth quarter, he said.
The turnout at new showflats remains strong but potential buyers are very cautious when it comes to committing to a purchase, market watchers say.
'There's no push factor to buy now,' said Mrs Ong. 'Sentiment has been affected over the weekend by the US news. But affordability is still there.'
As developers are increasingly forgoing aggressive pricing strategies in favour of competitive pricing, cumulatively, the general market will see softer prices, said Ms Tay.
Colliers International's research shows that luxury apartment prices already fell 3.9 per cent from the first quarter to an average of $3,049 psf in the second quarter, she said.
Meanwhile, the URA yesterday put up for sale a condominium site that is just next to the Tanah Merah MRT station.
Consultants expect a new 99-year leasehold project on the site to fetch average prices of between $700 psf and $800 psf.
CLOVER BY THE PARK: The 616-unit Bishan development saw 197 units sold. -- PHOTO: SIM LIAN
DAKOTA RESIDENCES: The 348-unit project in Dakota Crescent sold 144 units. -- PHOTO: HO BEE INVESTMENT
joyceteo@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Tampines Court owners file appeal
July 16, 2008
Tampines Court owners file appeal
They are seeking to convince STB to bring forward a key hearing date on collective sale
By Jessica Cheam
ANGRY owners at Tampines Court have opened up two fronts in their battle to save their estate's $405 million collective sale.
One bid saw the sales committee lodge a High Court appeal to overturn a ruling by the Strata Titles Board (STB), while some owners made a direct plea to National Development Minister Mah Bow Tan.
The 10 or so owners went to a weekly Meet-The-People session on Monday night to voice their concerns to Mr Mah, the MP for the Tampines ward.
The Straits Times understands that Mr Mah, in his capacity as a local MP, has agreed to appeal to the STB on the owners' behalf to bring forward a crucial hearing date.
The timing of that hearing - scheduled to let some sale objectors have a say - is also at the centre of the sales committee's legal appeal.
The committee wants the High Court to overturn an STB ruling on when the hearing should be held.
The board said on Friday the hearing should go ahead as planned on Aug 7.
The date, however, comes after the sales agreement legally expires on July 25. If the hearing is held on Aug 7, the sale cannot be done as scheduled on July 25, effectively killing it.
Two sales committee members said in an affidavit filed on Monday that the STB failed to take into account that any hearing after July 25 'will be academic', as the sales agreement would expire and the buyers were unlikely to extend the deadline.
The buyers - Far East Organization and Frasers Centrepoint - have already said they 'are ready to complete the deal', but 'the onus was upon the vendors to secure the STB order within the agreed timeframe'.
The estate's tight deadline stemmed from a sales committee decision to delay lodging its application for STB approval of the sale until Jan 7 this year although all the necessary conditions had already been met as early as July 25 last year.
It told the board that it wanted to await the outcome of legal challenges over the contentious Gillman Heights sale, as this could have a bearing on the fate of the Tampines Court deal.
As it turned out, the High Court last month cleared the way for the Gillman Heights deal and, in so doing, removed any potential obstacle to the Tampines Court sale as well.
Some owners told The Straits Times that they felt this deadline mess was the STB's fault.
Madam Irene Cheang said it was the board's duty to see the sale through within the six-month guideline, and that it had been inefficient in processing the sale.
STB registrar Bryan Chew stood by the board's decision on the date of the hearing.
The time needed to get a sale approved depends on a variety of factors, including the number of objectors, the size of the estate and the complexity of the case, he said.
'This is not the first time that we've taken more than six months,' he added.
The STB said it had pencilled in the Aug 7 date after listening to sale objectors from June 16 to 18 and 'taking into account the availability of all parties and the board'.
It has become a nerve-wracking time for the owners, as many have committed themselves to other properties.
Owner K. Balasubramaniam, 55, said residents could lose about $200,000 should the sale fail. He said the average open market value of a typical unit was $500,000 - while each owner would get about $700,000 should the sale go through.
Lawyers for the majority and minority owners declined to comment.
The Straits Times understands that there will be a High Court hearing this afternoon. It will be closed to the public.
AIRING THEIR VIEWS: Majority owners at Tampines Court emerging from a Meet-The-People session where they sought the help of National Development Minister Mah Bow Tan on Monday. They need a crucial STB hearing on their estate's $405 million collective sale to be held before July 25. -- ST PHOTO: MUGILAN RAJASEGERAN
jcheam@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Tampines Court owners file appeal
They are seeking to convince STB to bring forward a key hearing date on collective sale
By Jessica Cheam
ANGRY owners at Tampines Court have opened up two fronts in their battle to save their estate's $405 million collective sale.
One bid saw the sales committee lodge a High Court appeal to overturn a ruling by the Strata Titles Board (STB), while some owners made a direct plea to National Development Minister Mah Bow Tan.
The 10 or so owners went to a weekly Meet-The-People session on Monday night to voice their concerns to Mr Mah, the MP for the Tampines ward.
The Straits Times understands that Mr Mah, in his capacity as a local MP, has agreed to appeal to the STB on the owners' behalf to bring forward a crucial hearing date.
The timing of that hearing - scheduled to let some sale objectors have a say - is also at the centre of the sales committee's legal appeal.
The committee wants the High Court to overturn an STB ruling on when the hearing should be held.
The board said on Friday the hearing should go ahead as planned on Aug 7.
The date, however, comes after the sales agreement legally expires on July 25. If the hearing is held on Aug 7, the sale cannot be done as scheduled on July 25, effectively killing it.
Two sales committee members said in an affidavit filed on Monday that the STB failed to take into account that any hearing after July 25 'will be academic', as the sales agreement would expire and the buyers were unlikely to extend the deadline.
The buyers - Far East Organization and Frasers Centrepoint - have already said they 'are ready to complete the deal', but 'the onus was upon the vendors to secure the STB order within the agreed timeframe'.
The estate's tight deadline stemmed from a sales committee decision to delay lodging its application for STB approval of the sale until Jan 7 this year although all the necessary conditions had already been met as early as July 25 last year.
It told the board that it wanted to await the outcome of legal challenges over the contentious Gillman Heights sale, as this could have a bearing on the fate of the Tampines Court deal.
As it turned out, the High Court last month cleared the way for the Gillman Heights deal and, in so doing, removed any potential obstacle to the Tampines Court sale as well.
Some owners told The Straits Times that they felt this deadline mess was the STB's fault.
Madam Irene Cheang said it was the board's duty to see the sale through within the six-month guideline, and that it had been inefficient in processing the sale.
STB registrar Bryan Chew stood by the board's decision on the date of the hearing.
The time needed to get a sale approved depends on a variety of factors, including the number of objectors, the size of the estate and the complexity of the case, he said.
'This is not the first time that we've taken more than six months,' he added.
The STB said it had pencilled in the Aug 7 date after listening to sale objectors from June 16 to 18 and 'taking into account the availability of all parties and the board'.
It has become a nerve-wracking time for the owners, as many have committed themselves to other properties.
Owner K. Balasubramaniam, 55, said residents could lose about $200,000 should the sale fail. He said the average open market value of a typical unit was $500,000 - while each owner would get about $700,000 should the sale go through.
Lawyers for the majority and minority owners declined to comment.
The Straits Times understands that there will be a High Court hearing this afternoon. It will be closed to the public.
AIRING THEIR VIEWS: Majority owners at Tampines Court emerging from a Meet-The-People session where they sought the help of National Development Minister Mah Bow Tan on Monday. They need a crucial STB hearing on their estate's $405 million collective sale to be held before July 25. -- ST PHOTO: MUGILAN RAJASEGERAN
jcheam@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
12 MRT stations for Bukit Timah by 2015
July 16, 2008
12 MRT stations for Bukit Timah by 2015
180,000 rides expected on the underground line
By Christopher Tan
A DOZEN new MRT stations will come up in the Bukit Timah area as part of Stage 2 of the Downtown Line.
They will serve several schools such as Singapore Chinese Girls' School, National Junior College, Hwa Chong Institution, Nanyang Girls' High, Raffles Girls' Primary, and Assumption English School.
This phase, to be completed by 2015, will give Bukit Timah residents access to trains for the first time. They are now served only by buses.
The stations will also serve the Toh Yi and Bukit Panjang Housing Board estates, and take commuters to shopping malls such as Serene Centre, Beauty World and Ten Mile Junction.
The Downtown Line is being built in three stages and will have 40 stations, with trains running from the north-
western and eastern areas of Singapore to the Central Business District and Marina Bay.
Stage 2 will intersect other MRT lines at Little India, Newton and the Botanic Gardens.
Details of this phase were announced yesterday. This section spans 16.6km, from Rochor in the south to Bukit Panjang in the north.
Taking the train is expected to shave travelling time from Bukit Panjang to Marina Bay by almost half an hour.
Major construction on the line is expected to start in the middle of next year, and the Land Transport Authority (LTA) said very little land acquisition will be needed.
LTA deputy chief executive Lim Bok Ngam said builders will face new challenges.
For one thing, the area's rocky soil, unlike the marine clay encountered in most previous lines, is hard, so tunnel boring will be slower.
The all-underground line will also go under the Rochor Canal, which will have to be diverted during construction.
The line is expected to be well used, said LTA chief executive Yam Ah Mee. He expects it to account for 180,000 rides a day - more than a third of the $12billion Downtown Line's anticipated total ridership of 500,000.
Besides giving Bukit Timah residents quicker access to the city, the line will bring another benefit: The values of their properties are expected to rise.
Jones Lang LaSalle's head of research (South-east Asia) Chua Yang Liang said: 'Typically, properties within walking distance of MRT stations would see an enhancement in value.'
But Mr Nicholas Mak, director of research and consultancy at Knight Frank, said the completion date is a long way off. In that time, 'the economy and financial market will have a stronger effect on property prices'.
Stage 1 of the Downtown Line is a 4.3km stretch with six stations. It will be completed in 2013. Stage 3, spanning 19.1km with 15 stops, will be ready by 2016.
When the line is completed, a commuter can travel from Bukit Panjang to Tampines in 65 minutes.
ADDITIONAL REPORTING BY JOYCE TEO
christan@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
12 MRT stations for Bukit Timah by 2015
180,000 rides expected on the underground line
By Christopher Tan
A DOZEN new MRT stations will come up in the Bukit Timah area as part of Stage 2 of the Downtown Line.
They will serve several schools such as Singapore Chinese Girls' School, National Junior College, Hwa Chong Institution, Nanyang Girls' High, Raffles Girls' Primary, and Assumption English School.
This phase, to be completed by 2015, will give Bukit Timah residents access to trains for the first time. They are now served only by buses.
The stations will also serve the Toh Yi and Bukit Panjang Housing Board estates, and take commuters to shopping malls such as Serene Centre, Beauty World and Ten Mile Junction.
The Downtown Line is being built in three stages and will have 40 stations, with trains running from the north-
western and eastern areas of Singapore to the Central Business District and Marina Bay.
Stage 2 will intersect other MRT lines at Little India, Newton and the Botanic Gardens.
Details of this phase were announced yesterday. This section spans 16.6km, from Rochor in the south to Bukit Panjang in the north.
Taking the train is expected to shave travelling time from Bukit Panjang to Marina Bay by almost half an hour.
Major construction on the line is expected to start in the middle of next year, and the Land Transport Authority (LTA) said very little land acquisition will be needed.
LTA deputy chief executive Lim Bok Ngam said builders will face new challenges.
For one thing, the area's rocky soil, unlike the marine clay encountered in most previous lines, is hard, so tunnel boring will be slower.
The all-underground line will also go under the Rochor Canal, which will have to be diverted during construction.
The line is expected to be well used, said LTA chief executive Yam Ah Mee. He expects it to account for 180,000 rides a day - more than a third of the $12billion Downtown Line's anticipated total ridership of 500,000.
Besides giving Bukit Timah residents quicker access to the city, the line will bring another benefit: The values of their properties are expected to rise.
Jones Lang LaSalle's head of research (South-east Asia) Chua Yang Liang said: 'Typically, properties within walking distance of MRT stations would see an enhancement in value.'
But Mr Nicholas Mak, director of research and consultancy at Knight Frank, said the completion date is a long way off. In that time, 'the economy and financial market will have a stronger effect on property prices'.
Stage 1 of the Downtown Line is a 4.3km stretch with six stations. It will be completed in 2013. Stage 3, spanning 19.1km with 15 stops, will be ready by 2016.
When the line is completed, a commuter can travel from Bukit Panjang to Tampines in 65 minutes.
ADDITIONAL REPORTING BY JOYCE TEO
christan@sph.com.sg
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
BCA will act on illegal renovations
July 16, 2008
BCA will act on illegal renovations
I REFER to the letter, 'Step up scrutiny to curb illegal renovations' (July 3). We acknowledge Mr Ng Wai Hong's concerns about illegal renovations and appreciate this opportunity to address them.
We assure readers the Building and Construction Authority (BCA) places great emphasis on structural safety of all building works.
Before construction can begin, owners or developers are required to engage qualified professionals, such as a professional engineer or registered architect, to submit building plans for approval by the Commissioner of Building Control (CBC).
These qualified professionals are well versed with the requirements of building regulations, as well as Urban Redevelopment Authority (URA) development control parameters such as building setbacks, building coverage, intensity and height.
With the building owner/developer and builder, the qualified professionals have statutory responsibilities to ensure building works are in compliance with the Acts & Regulations.
In addition to certification and supervision by the qualified professionals, BCA carries out random and spot inspections at construction sites to ensure works are carried out according to approved plans and meet regulatory requirements. On completion, BCA will check all new buildings before issuing the Temporary Occupation Permit (TOP).
Notwithstanding the above, there are some minor renovation works which building owners can carry out without approval of plans or a permit from the CBC, as they do not affect the structural integrity of the building. These are illustrated in our Build It Right guide which is available at the BCA website (www.bca.gov.sg).
BCA takes a serious view of any non-compliance with its building regulations, whether during construction or after issue of the Certificate of Statutory Completion. We will not hesitate to take appropriate enforcement action against parties responsible if investigation reveals non-compliance such as unauthorised building works at any point in time.
We would like to remind readers it is prudent for potential buyers of an existing property to check it is free from unauthorised structures. Legal searches are some checks done routinely during conveyancing to surface any unauthorised structures that are investigated by BCA and URA. Potential buyers may, with the consent of the owner, buy a copy of the approved plans from BCA.
Ong Chan Leng
Director (Special Functions Division)
Building and Construction Authority
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
BCA will act on illegal renovations
I REFER to the letter, 'Step up scrutiny to curb illegal renovations' (July 3). We acknowledge Mr Ng Wai Hong's concerns about illegal renovations and appreciate this opportunity to address them.
We assure readers the Building and Construction Authority (BCA) places great emphasis on structural safety of all building works.
Before construction can begin, owners or developers are required to engage qualified professionals, such as a professional engineer or registered architect, to submit building plans for approval by the Commissioner of Building Control (CBC).
These qualified professionals are well versed with the requirements of building regulations, as well as Urban Redevelopment Authority (URA) development control parameters such as building setbacks, building coverage, intensity and height.
With the building owner/developer and builder, the qualified professionals have statutory responsibilities to ensure building works are in compliance with the Acts & Regulations.
In addition to certification and supervision by the qualified professionals, BCA carries out random and spot inspections at construction sites to ensure works are carried out according to approved plans and meet regulatory requirements. On completion, BCA will check all new buildings before issuing the Temporary Occupation Permit (TOP).
Notwithstanding the above, there are some minor renovation works which building owners can carry out without approval of plans or a permit from the CBC, as they do not affect the structural integrity of the building. These are illustrated in our Build It Right guide which is available at the BCA website (www.bca.gov.sg).
BCA takes a serious view of any non-compliance with its building regulations, whether during construction or after issue of the Certificate of Statutory Completion. We will not hesitate to take appropriate enforcement action against parties responsible if investigation reveals non-compliance such as unauthorised building works at any point in time.
We would like to remind readers it is prudent for potential buyers of an existing property to check it is free from unauthorised structures. Legal searches are some checks done routinely during conveyancing to surface any unauthorised structures that are investigated by BCA and URA. Potential buyers may, with the consent of the owner, buy a copy of the approved plans from BCA.
Ong Chan Leng
Director (Special Functions Division)
Building and Construction Authority
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
How HDB flats are priced affordably
July 16, 2008
How HDB flats are priced affordably
I REFER to the letter from Mr See Leong Kit, 'Market-based pricing has cost buyers dearly' (July 7).
HDB adopts a market-based pricing approach so as to reflect the true subsidy that buyers enjoy. Under this approach, HDB determines the market value of the flat, based on its location, finish and other attributes. Then, it sells the flat at a discount to the market value. HDB buyers understand this, and appreciate that new HDB flats are priced lower than resale flats. Similarly, when they want to sell their flat in the open market, they do so at the prevailing market value, not at their cost of purchase of the flat.
We also wish to highlight that this approach has enabled HDB to continue to price its flats affordably despite the current sharp escalation in construction costs. Currently, a new four-room flat can cost close to $300,000 to develop, taking into account land, building and other costs. This is significantly higher than the subsidised price of a four-room flat in Punggol/Sengkang sold by HDB at about $200,000 to $260,000.
Through the market-subsidy approach to pricing, HDB has been able to keep its flats affordable for Singaporeans. On average, first-time flat buyers need to pay only about 20 per cent of their monthly household income to service their housing loan. This is well within the 25 to 30 per cent that is commonly cited internationally as the benchmark for affordable housing. Lower-income households can enjoy additional help in the form of the Additional CPF Housing Grant.
Mr See commented that young couples have to wait as long as six years for new flats. This is incorrect. New Build-To-Order flats take about three years to complete from time of registration. Those with urgent housing needs can consider the resale market where there is a wide range of resale flats to match the preference and budget of buyers. Eligible first-time buyers can also enjoy a CPF Housing Grant of $30,000/$40,000.
Kee Lay Cheng (Ms)
Deputy Director (Marketing & Projects)
for Director (Estate Administration & Property)
Housing & Development Board
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
How HDB flats are priced affordably
I REFER to the letter from Mr See Leong Kit, 'Market-based pricing has cost buyers dearly' (July 7).
HDB adopts a market-based pricing approach so as to reflect the true subsidy that buyers enjoy. Under this approach, HDB determines the market value of the flat, based on its location, finish and other attributes. Then, it sells the flat at a discount to the market value. HDB buyers understand this, and appreciate that new HDB flats are priced lower than resale flats. Similarly, when they want to sell their flat in the open market, they do so at the prevailing market value, not at their cost of purchase of the flat.
We also wish to highlight that this approach has enabled HDB to continue to price its flats affordably despite the current sharp escalation in construction costs. Currently, a new four-room flat can cost close to $300,000 to develop, taking into account land, building and other costs. This is significantly higher than the subsidised price of a four-room flat in Punggol/Sengkang sold by HDB at about $200,000 to $260,000.
Through the market-subsidy approach to pricing, HDB has been able to keep its flats affordable for Singaporeans. On average, first-time flat buyers need to pay only about 20 per cent of their monthly household income to service their housing loan. This is well within the 25 to 30 per cent that is commonly cited internationally as the benchmark for affordable housing. Lower-income households can enjoy additional help in the form of the Additional CPF Housing Grant.
Mr See commented that young couples have to wait as long as six years for new flats. This is incorrect. New Build-To-Order flats take about three years to complete from time of registration. Those with urgent housing needs can consider the resale market where there is a wide range of resale flats to match the preference and budget of buyers. Eligible first-time buyers can also enjoy a CPF Housing Grant of $30,000/$40,000.
Kee Lay Cheng (Ms)
Deputy Director (Marketing & Projects)
for Director (Estate Administration & Property)
Housing & Development Board
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
‘Realistic’ prices drive home sales
‘Realistic’ prices drive home sales
Wednesday • July 16, 2008
Christie Loh
christie@mediacorp.com.sg
FOR nine months over an unfolding global credit crunch, developers here held back from pushing out condominiums and houses into the market. Homebuyers found little variety in the showrooms.
But when the supply gate was unlatched in June, interest poured back in — especially into the mass-market segment — resulting in a bumper month for sales despite the recent stock market and economic gloom.
In June, 801 private residential units were sold out of 1,069 launched, according to monthly data released yesterday by the Urban Redevelopment Authority (URA).
The two figures are the highest since August 2007. They also represent a surge from May, when only 476 units were launched and 453 sold.
“Developers are trying to launch their projects before the lunar seventh month. That is traditionally a very slow period for the whole market,” explained Colliers International’s research director Tay Huey Ying.
Superstitious buyers generally stay away during what is known as the Hungry Ghost Month, which starts on Aug 1.
Ms Tay said the dearth of launches before Jube had led to “pent-up demand”, which was boosted further by “realistic” prices. As the United States subprime mortgage woes weighed on buying sentiment, developers have had to ditch their “aggressive pricing strategy”, she said.
For instance, the recently-launched Dakota Residences along Geylang River reportedly drew an average price of $970 per square foot (psf), which is below the range of $1,000-$1,100 that co-developer Ho Bee Investment had expected mid-last year (2007).
Such suburban projects accounted for the bulk of launches in June. About 44 per cent of the new launches came from the Rest of Central Region, followed by 33 per cent in the Outside Central Region.
The luxury sector is seeing fewer launches, said Knight Frank’s consultancy and research director Nicholas Mak, because most of these high-end buyers are investors, not owner-occupiers. And investor sentiment is weak right now, he explained. In contrast, mass-market homebuyers are in the market for a live-in place.
June did not clock any transactions above $4,000 psf, the level generally viewed by analysts as indicative of exuberant demand. The highest price last month was $3,653 psf for a unit in Nassim Park Residences.
Asked if the fresh worries in the US financial industry would hurt property demand here in the weeks ahead, Mr Mak said July’s data should still be healthy.
August, however, may see sales volumes dip – if the worries persisted -- followed by slight price contractions in the second half of the year.
“I think homebuyers will find economic problems scarier than the Ghost Month,” said Mr Mak.
Copyright MediaCorp Press Ltd. All rights reserved.
Wednesday • July 16, 2008
Christie Loh
christie@mediacorp.com.sg
FOR nine months over an unfolding global credit crunch, developers here held back from pushing out condominiums and houses into the market. Homebuyers found little variety in the showrooms.
But when the supply gate was unlatched in June, interest poured back in — especially into the mass-market segment — resulting in a bumper month for sales despite the recent stock market and economic gloom.
In June, 801 private residential units were sold out of 1,069 launched, according to monthly data released yesterday by the Urban Redevelopment Authority (URA).
The two figures are the highest since August 2007. They also represent a surge from May, when only 476 units were launched and 453 sold.
“Developers are trying to launch their projects before the lunar seventh month. That is traditionally a very slow period for the whole market,” explained Colliers International’s research director Tay Huey Ying.
Superstitious buyers generally stay away during what is known as the Hungry Ghost Month, which starts on Aug 1.
Ms Tay said the dearth of launches before Jube had led to “pent-up demand”, which was boosted further by “realistic” prices. As the United States subprime mortgage woes weighed on buying sentiment, developers have had to ditch their “aggressive pricing strategy”, she said.
For instance, the recently-launched Dakota Residences along Geylang River reportedly drew an average price of $970 per square foot (psf), which is below the range of $1,000-$1,100 that co-developer Ho Bee Investment had expected mid-last year (2007).
Such suburban projects accounted for the bulk of launches in June. About 44 per cent of the new launches came from the Rest of Central Region, followed by 33 per cent in the Outside Central Region.
The luxury sector is seeing fewer launches, said Knight Frank’s consultancy and research director Nicholas Mak, because most of these high-end buyers are investors, not owner-occupiers. And investor sentiment is weak right now, he explained. In contrast, mass-market homebuyers are in the market for a live-in place.
June did not clock any transactions above $4,000 psf, the level generally viewed by analysts as indicative of exuberant demand. The highest price last month was $3,653 psf for a unit in Nassim Park Residences.
Asked if the fresh worries in the US financial industry would hurt property demand here in the weeks ahead, Mr Mak said July’s data should still be healthy.
August, however, may see sales volumes dip – if the worries persisted -- followed by slight price contractions in the second half of the year.
“I think homebuyers will find economic problems scarier than the Ghost Month,” said Mr Mak.
Copyright MediaCorp Press Ltd. All rights reserved.
Tuesday, July 15, 2008
Giant property IPO if Mapletree decides to list
July 14, 2008
Giant property IPO if Mapletree decides to list
Temasek unit ramping up property funds to lay base for consistently
high ROE model
By KALPANA RASHIWALA
(SINGAPORE) An initial public offering for Mapletree Investments Pte
Ltd, a fully-owned subsidiary of Temasek Holdings, could take place
in the near future, The Business Times understands.
Based on recent valuations, the entity could have a market cap of
over $5 billion.
When contacted, a Mapletree spokeswoman said: 'We are ready for an
IPO in terms of our business profile and track record. However, the
decision to IPO the company will rest with our board and
shareholders.'
'Over the last few years, we have put in place processes and
governance similar to that of a listed company, to ready ourselves
for an eventual IPO. What will drive the IPO decision, however, will
be the readiness and attractiveness of our business model and
strategy as a real estate capital management company.'
A key internal threshold the group has to cross to be IPO-ready is
that the ratio of assets under management (AUM) to assets owned by
Mapletree must exceed 1.0. 'As at March 31, 2008, our AUM to owned
assets was 0.5 and the ratio currently is about 0.8, including the
recently completed acquisition of the $1.7 billion JTC portfolio by a
private trust led and sponsored by Mapletree. We expect the ratio to
exceed 1.0 by March 2009,' the spokeswoman added. The next target
will be to grow this ratio to 3.0 within three to five years.
AUM refers to assets held in Mapletree-managed private and listed
funds with third-party investors.
Growing the AUM business will enable Mapletree to earn more fee
income from managing property funds as well as managing the
properties owned by these funds.
'Strong recurring fee income will be the bedrock of our strategy for
delivering consistently high returns on equity (ROE) of above 10 per
cent to shareholders,' Mapletree's spokeswoman added.
Fees collected from managing funds and the properties held by these
funds generally tend to be more stable than the property development
and ownership business, which is more cyclical and considered more
risky from an investment point of view.
'Our fee income made up about 10 per cent of total revenue for
financial year ended March 2008 and we hope to grow this to 50 per
cent in three to five years.'
One event that could help Mapletree reach the target of a 3.0 ratio
for AUM to owned assets sooner is the much-anticipated flotation of
Mapletree Commercial Trust, which will hold about $3 billion of
assets including Vivocity, St James Power Station, Harbourfront
Centre and some nearby office blocks.
This trust was to have been floated by April this year but has been
held back because of adverse stockmarket conditions.
The investment proposition of a potential IPO for Mapletree
Investment would be that 'we offer a strong real estate capital
management platform with an Asian focus for investors', Mapletree's
spokeswoman said.
'However, investors who want a more targeted approach, for example,
India or China, can invest directly in our funds. So we offer a whole
suite of investment opportunities,' she added.
For the year ended March 31, 2008, Mapletree posted a 3 per cent dip
in net earnings to $1.04 billion due to a lower net revaluation gain
and higher net finance cost. Operating profit, however, rose 35 per
cent to $146.9 million, on the back of first full-year contributions
from VivoCity and St James Power Station and maiden contribution from
The Beacon, a residential project at Cantonment Road.
Mapletree's revenue jumped 69 per cent to $365.6 million.
Shareholder funds increased 28 per cent year-on-year to $4.4 billion
as at March 31, 2008.
That could potentially translate to a market cap of more than $5
billion, assuming that Mapletree shares hypothetically trade at a 23
per cent premium to its net asset value. The 23 per cent premium was
the peer mean based on the July 11 closing share prices of
CapitaLand, City Developments (after taking into account investment
properties at valuation), Keppel Land and Singapore Land.
Mapletree Investments manages six property funds, including the
listed Mapletree Logistics Trust. The group had $3.1 billion of AUM
as at end-March 2008, a 94 per cent jump year on year, while
Mapletree's owned assets rose at a slower pace of 45 per cent to $5.7
billion.
Recently, the group formed a joint-venture private fund with Arcapita
Bank to hold the $1.7 billion portfolio of properties acquired from
JTC Corp. In April, Mapletree launched an India-China fund that has
so far bought $600 million of assets. These initiatives will drive
fee income revenue, which increased nearly 50 per cent to $29 million
in the latest financial year.
Giant property IPO if Mapletree decides to list
Temasek unit ramping up property funds to lay base for consistently
high ROE model
By KALPANA RASHIWALA
(SINGAPORE) An initial public offering for Mapletree Investments Pte
Ltd, a fully-owned subsidiary of Temasek Holdings, could take place
in the near future, The Business Times understands.
Based on recent valuations, the entity could have a market cap of
over $5 billion.
When contacted, a Mapletree spokeswoman said: 'We are ready for an
IPO in terms of our business profile and track record. However, the
decision to IPO the company will rest with our board and
shareholders.'
'Over the last few years, we have put in place processes and
governance similar to that of a listed company, to ready ourselves
for an eventual IPO. What will drive the IPO decision, however, will
be the readiness and attractiveness of our business model and
strategy as a real estate capital management company.'
A key internal threshold the group has to cross to be IPO-ready is
that the ratio of assets under management (AUM) to assets owned by
Mapletree must exceed 1.0. 'As at March 31, 2008, our AUM to owned
assets was 0.5 and the ratio currently is about 0.8, including the
recently completed acquisition of the $1.7 billion JTC portfolio by a
private trust led and sponsored by Mapletree. We expect the ratio to
exceed 1.0 by March 2009,' the spokeswoman added. The next target
will be to grow this ratio to 3.0 within three to five years.
AUM refers to assets held in Mapletree-managed private and listed
funds with third-party investors.
Growing the AUM business will enable Mapletree to earn more fee
income from managing property funds as well as managing the
properties owned by these funds.
'Strong recurring fee income will be the bedrock of our strategy for
delivering consistently high returns on equity (ROE) of above 10 per
cent to shareholders,' Mapletree's spokeswoman added.
Fees collected from managing funds and the properties held by these
funds generally tend to be more stable than the property development
and ownership business, which is more cyclical and considered more
risky from an investment point of view.
'Our fee income made up about 10 per cent of total revenue for
financial year ended March 2008 and we hope to grow this to 50 per
cent in three to five years.'
One event that could help Mapletree reach the target of a 3.0 ratio
for AUM to owned assets sooner is the much-anticipated flotation of
Mapletree Commercial Trust, which will hold about $3 billion of
assets including Vivocity, St James Power Station, Harbourfront
Centre and some nearby office blocks.
This trust was to have been floated by April this year but has been
held back because of adverse stockmarket conditions.
The investment proposition of a potential IPO for Mapletree
Investment would be that 'we offer a strong real estate capital
management platform with an Asian focus for investors', Mapletree's
spokeswoman said.
'However, investors who want a more targeted approach, for example,
India or China, can invest directly in our funds. So we offer a whole
suite of investment opportunities,' she added.
For the year ended March 31, 2008, Mapletree posted a 3 per cent dip
in net earnings to $1.04 billion due to a lower net revaluation gain
and higher net finance cost. Operating profit, however, rose 35 per
cent to $146.9 million, on the back of first full-year contributions
from VivoCity and St James Power Station and maiden contribution from
The Beacon, a residential project at Cantonment Road.
Mapletree's revenue jumped 69 per cent to $365.6 million.
Shareholder funds increased 28 per cent year-on-year to $4.4 billion
as at March 31, 2008.
That could potentially translate to a market cap of more than $5
billion, assuming that Mapletree shares hypothetically trade at a 23
per cent premium to its net asset value. The 23 per cent premium was
the peer mean based on the July 11 closing share prices of
CapitaLand, City Developments (after taking into account investment
properties at valuation), Keppel Land and Singapore Land.
Mapletree Investments manages six property funds, including the
listed Mapletree Logistics Trust. The group had $3.1 billion of AUM
as at end-March 2008, a 94 per cent jump year on year, while
Mapletree's owned assets rose at a slower pace of 45 per cent to $5.7
billion.
Recently, the group formed a joint-venture private fund with Arcapita
Bank to hold the $1.7 billion portfolio of properties acquired from
JTC Corp. In April, Mapletree launched an India-China fund that has
so far bought $600 million of assets. These initiatives will drive
fee income revenue, which increased nearly 50 per cent to $29 million
in the latest financial year.
Prices of good class bungalows still going up, but volume falls
July 14, 2008
Prices of good class bungalows still going up, but volume falls
25 deals done in H1 worth $440.65m, against 87 deals for 2007 worth
$1.15b
By ARTHUR SIM
THE volume of transactions of good class bungalows (GCBs) may have
fallen along with other property sectors but values have not.
A GCB is one that sits on designated land no smaller than 15,000 sq
ft. And according to an analysis by CB Richard Ellis (CBRE), there
were 25 GCB transaction in the first half of 2008.
While this may be a fraction of the 87 transactions in 2007, the
total value for H1 2008 is already $440.65 million, almost 40 per
cent of the total value for the whole of 2007 which saw $1.15 billion
worth of deals.
There are several explanations for this, including the possibility
that bigger GCBs were sold this year, but it also seems clear that
prices have risen.
Upon closer analysis, CBRE found that some of the GCBs sold in 2008
had already changed hands once before in 2007. For instance, a house
at Fifth Avenue was sold for $17.4 million in June 2007 and then sold
again for $19.7 million in March this year - representing a gain of
about 13 per cent.
Another house in Cluny Hill was sold in January 2007 for $15 million,
re-sold six months later for $20.2 million and then sold again in May
this year for $21.5 million.
CBRE director (luxury homes) Douglas Wong says: 'There is still
buying interest in the GCB market as it is always regarded as an
attractive investment in the long term and/or for owner-occupation.'
This certainly seems to be supported by the fact that CBRE and Mr
Wong handled possibly the biggest GCB deal ever done here - a house
in Leedon Park which sold for $43.2 million in May, bought by a
Singaporean.
That locals make up the bulk of GCB buyers is interesting as
foreigners have been very much credited with bolstering the luxury
non-landed sector. Mr Wong also believes that of the estimated 2,400
GCBs in Singapore, these are owned by a small pool of about 1,000
wealthy individuals, suggesting that many own more than one GCB.
In tracking GCB transactions, CBRE found that there were two
recent 'peaks' in the sector. (CBRE defines 'peak' in terms of volume
rather than price).
The first peak occurred in 1999, when 77 transactions were recorded
after the property market bottomed out during the Asian financial
crisis.
The second peak occurred in 2006 with 119 deals done following a
protracted period of market stagnation from 2000 to 2004.
In 2006, the 119 GCBs were sold with transacted value totalling
$1.225 billion, double the value in 1999.
On average, each GCB cost $9 million to $10 million. In comparison,
at the bottom of the market in 2002, the average price of a GCB was
$6 million to $7 million.
Of the 25 GCBs sold in H1 2008, about half were sold for over $15
million. Of these, six were sold for more than $20 million.
And as CBRE notes, luxury properties are often seen as a barometer of
the health of the overall market. When there are signs of the market
turning, GCBs and luxury apartments will reflect this first and post
bigger gains ahead of the broader residential market.
So it is good news then that for the rest of the year, CBRE expects
GCB prices to remain firm or even see a marginal upside.
Prices of good class bungalows still going up, but volume falls
25 deals done in H1 worth $440.65m, against 87 deals for 2007 worth
$1.15b
By ARTHUR SIM
THE volume of transactions of good class bungalows (GCBs) may have
fallen along with other property sectors but values have not.
A GCB is one that sits on designated land no smaller than 15,000 sq
ft. And according to an analysis by CB Richard Ellis (CBRE), there
were 25 GCB transaction in the first half of 2008.
While this may be a fraction of the 87 transactions in 2007, the
total value for H1 2008 is already $440.65 million, almost 40 per
cent of the total value for the whole of 2007 which saw $1.15 billion
worth of deals.
There are several explanations for this, including the possibility
that bigger GCBs were sold this year, but it also seems clear that
prices have risen.
Upon closer analysis, CBRE found that some of the GCBs sold in 2008
had already changed hands once before in 2007. For instance, a house
at Fifth Avenue was sold for $17.4 million in June 2007 and then sold
again for $19.7 million in March this year - representing a gain of
about 13 per cent.
Another house in Cluny Hill was sold in January 2007 for $15 million,
re-sold six months later for $20.2 million and then sold again in May
this year for $21.5 million.
CBRE director (luxury homes) Douglas Wong says: 'There is still
buying interest in the GCB market as it is always regarded as an
attractive investment in the long term and/or for owner-occupation.'
This certainly seems to be supported by the fact that CBRE and Mr
Wong handled possibly the biggest GCB deal ever done here - a house
in Leedon Park which sold for $43.2 million in May, bought by a
Singaporean.
That locals make up the bulk of GCB buyers is interesting as
foreigners have been very much credited with bolstering the luxury
non-landed sector. Mr Wong also believes that of the estimated 2,400
GCBs in Singapore, these are owned by a small pool of about 1,000
wealthy individuals, suggesting that many own more than one GCB.
In tracking GCB transactions, CBRE found that there were two
recent 'peaks' in the sector. (CBRE defines 'peak' in terms of volume
rather than price).
The first peak occurred in 1999, when 77 transactions were recorded
after the property market bottomed out during the Asian financial
crisis.
The second peak occurred in 2006 with 119 deals done following a
protracted period of market stagnation from 2000 to 2004.
In 2006, the 119 GCBs were sold with transacted value totalling
$1.225 billion, double the value in 1999.
On average, each GCB cost $9 million to $10 million. In comparison,
at the bottom of the market in 2002, the average price of a GCB was
$6 million to $7 million.
Of the 25 GCBs sold in H1 2008, about half were sold for over $15
million. Of these, six were sold for more than $20 million.
And as CBRE notes, luxury properties are often seen as a barometer of
the health of the overall market. When there are signs of the market
turning, GCBs and luxury apartments will reflect this first and post
bigger gains ahead of the broader residential market.
So it is good news then that for the rest of the year, CBRE expects
GCB prices to remain firm or even see a marginal upside.
IndyMac fails as 'problem' US banks multiply
July 14, 2008
IndyMac fails as 'problem' US banks multiply
THE collapse of IndyMac Bank, which could add up to be the most
expensive bank failure ever in the United States, comes as the number
of 'problem' institutions is on the rise.
The Federal Deposit Insurance Corp (FDIC) disclosed last month that
it was closely watching 90 financial institutions on its 'problem
list', up from 76 in the first quarter of the year, CNN reported
yesterday.
The total assets of these institutions rose from US$22.2 billion to
US$26.3 billion (S$30.2 billion to S$35.8 billion), the FDIC said.
The number of troubled institutions monitored by the FDIC had grown
in each of the last six quarters, starting in the autumn of 2006,
when there were just 47 on the list, CNN said. The last time it
approached this level was in the autumn of 2004, when the number was
95.
The FDIC does not publish a list of troubled banks out of concern
that it could spur a bank run, which is what happened to IndyMac,
according to CNN.
The Office of Thrift Supervision, which oversaw IndyMac, criticised
US Senator Charles Schumer. It said a June 26 letter that he had
written to regulators questioning IndyMac's viability prompted the
run on the bank, during which customers withdrew more than US$1.3
billion, prompting a liquidity crisis.
IndyMac, which was closed last Friday by US federal regulators, will
re-open today with a new charter and a new name - IndyMac Federal
Bank.
But analysts feared thousands of IndyMac customers could lose as much
as US$500 million, CNN said.
Customers who found locked doors and armed guards last Friday
afternoon could use ATM cards over the weekend to get to their money.
An estimated 5 per cent of the US$19 billion deposited in the bank,
however, was not insured, CNN said.
IndyMac fails as 'problem' US banks multiply
THE collapse of IndyMac Bank, which could add up to be the most
expensive bank failure ever in the United States, comes as the number
of 'problem' institutions is on the rise.
The Federal Deposit Insurance Corp (FDIC) disclosed last month that
it was closely watching 90 financial institutions on its 'problem
list', up from 76 in the first quarter of the year, CNN reported
yesterday.
The total assets of these institutions rose from US$22.2 billion to
US$26.3 billion (S$30.2 billion to S$35.8 billion), the FDIC said.
The number of troubled institutions monitored by the FDIC had grown
in each of the last six quarters, starting in the autumn of 2006,
when there were just 47 on the list, CNN said. The last time it
approached this level was in the autumn of 2004, when the number was
95.
The FDIC does not publish a list of troubled banks out of concern
that it could spur a bank run, which is what happened to IndyMac,
according to CNN.
The Office of Thrift Supervision, which oversaw IndyMac, criticised
US Senator Charles Schumer. It said a June 26 letter that he had
written to regulators questioning IndyMac's viability prompted the
run on the bank, during which customers withdrew more than US$1.3
billion, prompting a liquidity crisis.
IndyMac, which was closed last Friday by US federal regulators, will
re-open today with a new charter and a new name - IndyMac Federal
Bank.
But analysts feared thousands of IndyMac customers could lose as much
as US$500 million, CNN said.
Customers who found locked doors and armed guards last Friday
afternoon could use ATM cards over the weekend to get to their money.
An estimated 5 per cent of the US$19 billion deposited in the bank,
however, was not insured, CNN said.
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