August 23, 2008
Financial storm is still blowing: Bernanke
Fed working on three fronts to maintain economic stability, says US
central bank chief
(WASHINGTON) US Federal Reserve chairman Ben Bernanke said yesterday
the financial storm that began last year 'has not yet subsided',
creating 'one of the most challenging' economic environments in
memory.
In comments to the Fed's annual symposium in Jackson Hole, Wyoming,
Mr Bernanke said economic conditions remain soft as unemployment is
rising and inflation pressures remain hot.
The mix has created 'one of the most challenging economic and policy
environments in memory', Mr Bernanke said, according to a text of his
remarks released by the central bank.
Mr Bernanke said the Fed has been working on three fronts in an
effort to maintain economic stability - keeping interest rates low to
prevent a collapse of economic activity, offering extra liquidity to
banks and brokerages facing a credit squeeze, and revamping the
regulatory structure to prevent a recurrence of the housing boom-bust
cycle.
'By cushioning the first- round economic impact of the financial
stress, we hoped also to minimise the risks of a so-called adverse
feedback loop in which economic weakness exacerbates financial
stress, which, in turn, further damages economic prospects,' he said.
Yet Mr Bernanke said the efforts to prop up the economy are
complicated by a commodity-fuelled surge in inflation.
But he said the Fed's strategy 'has been conditioned on our
expectation that the prices of oil and other commodities would
ultimately stabilise, in part as the result of slowing global
growth'.
He said the Fed's extraordinary efforts to pump liquidity into the
financial system were 'intended to mitigate what have been, at times,
very severe strains in short-term funding markets and, by providing
an additional source of financing, to allow banks and other financial
institutions to deleverage in a more orderly manner'.
Mr Bernanke said the Fed and government authorities are looking at
more comprehensive regulatory overhauls to help avert further crises
and stabilise the financial system.
This means moving beyond the banking system that is closely regulated
by the Fed and having tighter rules for investment firms and
brokerages that allows regulators to potentially step in and take
control in a manner similar to that of a failed bank.
He said the rescue of Bear Stearns, in which the Fed and Treasury
helped the failing firm's buyout by JPMorgan Chase, 'was severely
complicated by the lack of a clear statutory framework' and that
Congress should consider such a framework.
'A statutory resolution regime for non-banks, besides reducing
uncertainty, would also limit moral hazard by allowing the government
to resolve failing firms in a way that is orderly but also wipes out
equity holders and haircuts some creditors, analogous to what happens
when a commercial bank fails,' the Fed chief said.
He said another point to consider is 'a more fully integrated
overview of the entire financial system', which he said 'has become
less bank-centred'.
Earlier yesterday, billionaire investor Warren Buffett said the US
economy is unlikely to improve before 2009, and that he expects the
government to take action to support troubled mortgage financiers
Fannie Mae and Freddie Mac.
Speaking on CNBC television, Mr Buffett said retail businesses within
his Berkshire Hathaway Inc, insurance and investment conglomerate
have been struggling and that the economy is now suffering from past
excesses in the availability of credit.
'You always find out who's been swimming naked when the tide goes
out. We found out that Wall Street has been kind of a nudist beach,'
said Mr Buffett, the world's richest person, according to Forbes
magazine.
Saturday, August 23, 2008
CapitaLand to gain $313m from China assets
August 23, 2008
CapitaLand to gain $313m from China assets
It is injecting four assets into its 50% owned Raffles City China Fund
By KALPANA RASHIWALA
PROPERTY giant CapitaLand said yesterday that it will realise a total
portfolio gain of $313 million from injecting four Raffles City
assets in China as seed assets into its 50 per cent owned Raffles
City China Fund.
The gain will comprise a $183 million net gain from the dilution of
CapitaLand's interest in the four Raffles City assets as well as $130
million fair value gain for Raffles City Shanghai.
The US$1 billion (about S$1.4 billion) real estate private equity
fund - the group's largest to date - will buy CapitaLand's effective
55.9 per cent stake in Raffles City Shanghai, and 100 per cent of the
Raffles City projects under development in Beijing, Chengdu and
Hangzhou.
The property group is expected to receive a total consideration of
about US$841 million (about S$1.15 billion) which takes into account
the agreed value of Raffles City Shanghai at 4.51 billion yuan (S$889
million) and the agreed land values of the other three Raffles City
projects.
Net of its 50 per cent stake in the fund, CapitaLand will obtain an
eventual net cash flow of about US$420 milllion (S$574 million).
Besides originating and retaining a sponsor stake in the fund,
CapitaLand is also managing the fund and its properties.
'CapitaLand, through its 50 per cent stake in the fund, will continue
to enjoy sustained rental income as well as appreciation in capital
value of the prime assets,' the group said in a release yesterday
evening.
CapitaLand Group president and CEO Liew Mun Leong said that the total
transaction proceeds of $1.15 billion will strengthen the group's
balance sheet and boost its ability to seize new opportunities in
China.
On the stockmarket yesterday, CapitaLand ended three cents lower at
$4.45. Morgan Stanley last week downgraded the stock to Underweight
from Equal-Weight and revised downwards its price target for the
share to $4.16 (from $5.94), pegged at a 15 per cent discount to its
end-2009 estimated net asset value per share of $4.89 (from a $5.94
estimated NAV per share for end-2008 previously).
CapitaLand to gain $313m from China assets
It is injecting four assets into its 50% owned Raffles City China Fund
By KALPANA RASHIWALA
PROPERTY giant CapitaLand said yesterday that it will realise a total
portfolio gain of $313 million from injecting four Raffles City
assets in China as seed assets into its 50 per cent owned Raffles
City China Fund.
The gain will comprise a $183 million net gain from the dilution of
CapitaLand's interest in the four Raffles City assets as well as $130
million fair value gain for Raffles City Shanghai.
The US$1 billion (about S$1.4 billion) real estate private equity
fund - the group's largest to date - will buy CapitaLand's effective
55.9 per cent stake in Raffles City Shanghai, and 100 per cent of the
Raffles City projects under development in Beijing, Chengdu and
Hangzhou.
The property group is expected to receive a total consideration of
about US$841 million (about S$1.15 billion) which takes into account
the agreed value of Raffles City Shanghai at 4.51 billion yuan (S$889
million) and the agreed land values of the other three Raffles City
projects.
Net of its 50 per cent stake in the fund, CapitaLand will obtain an
eventual net cash flow of about US$420 milllion (S$574 million).
Besides originating and retaining a sponsor stake in the fund,
CapitaLand is also managing the fund and its properties.
'CapitaLand, through its 50 per cent stake in the fund, will continue
to enjoy sustained rental income as well as appreciation in capital
value of the prime assets,' the group said in a release yesterday
evening.
CapitaLand Group president and CEO Liew Mun Leong said that the total
transaction proceeds of $1.15 billion will strengthen the group's
balance sheet and boost its ability to seize new opportunities in
China.
On the stockmarket yesterday, CapitaLand ended three cents lower at
$4.45. Morgan Stanley last week downgraded the stock to Underweight
from Equal-Weight and revised downwards its price target for the
share to $4.16 (from $5.94), pegged at a 15 per cent discount to its
end-2009 estimated net asset value per share of $4.89 (from a $5.94
estimated NAV per share for end-2008 previously).
Hoi Hup-led group wins HDB project
August 23, 2008
Hoi Hup-led group wins HDB project
It will build 1,200 DBSS flats at Lor1A Toa Payoh
By KALPANA RASHIWALA
THE Housing and Development Board yesterday awarded a Design, Build
and Sell Scheme (DBSS) site at Lorong 1A Toa Payoh to a Hoi Hup
Realty-led consortium that emerged as the top bidder when the tender
for the site closed on Tuesday.
The winning bid of about $198.82 million works out to about $160 per
sq ft per plot ratio - the highest of three bids for the 103-year
leasehold plot.
The consortium also includes Sunway Developments and Hoi Hup JV
Development, whose shareholders include Straits Construction and Hoi
Hup Realty.
A Hoi Hup spokeswoman said yesterday the group plans to build about
1,200 HDB flats on the site, of which about a third will be three and
four-room flats and the rest five-room flats. 'We're looking at
launching the project in early second-quarter 2009,' she said.
The average selling price is expected to be around $500 psf and will
depend on whether Hoi Hup succeeds in securing exemption of bay
windows and planter boxes from gross floor area calculations.
This will hinge on whether Hoi Hup can submit its formal application
for the project to the Urban Redevelopment Authority in time to
secure provisional permission before Oct 7.
After that date, bay windows and planter boxes will no longer be
exempt from GFA calculations.
'We're looking at building a total of five blocks, of which two will
be 46 storeys high and with a sky terrace on one of the upper levels
(above the 20th floor). The remaining blocks will be 40 storeys
high,' the spokeswoman said.
'We have to complete the entire project within four years.'
A Hoi Hup-Sunway consortium is also developing another DBSS flat
project, called City View @ Boon Keng. This was launched earlier this
year at an average price of $520 psf.
More than 80 per cent of the 714 units have been sold so far.
Hoi Hup-led group wins HDB project
It will build 1,200 DBSS flats at Lor1A Toa Payoh
By KALPANA RASHIWALA
THE Housing and Development Board yesterday awarded a Design, Build
and Sell Scheme (DBSS) site at Lorong 1A Toa Payoh to a Hoi Hup
Realty-led consortium that emerged as the top bidder when the tender
for the site closed on Tuesday.
The winning bid of about $198.82 million works out to about $160 per
sq ft per plot ratio - the highest of three bids for the 103-year
leasehold plot.
The consortium also includes Sunway Developments and Hoi Hup JV
Development, whose shareholders include Straits Construction and Hoi
Hup Realty.
A Hoi Hup spokeswoman said yesterday the group plans to build about
1,200 HDB flats on the site, of which about a third will be three and
four-room flats and the rest five-room flats. 'We're looking at
launching the project in early second-quarter 2009,' she said.
The average selling price is expected to be around $500 psf and will
depend on whether Hoi Hup succeeds in securing exemption of bay
windows and planter boxes from gross floor area calculations.
This will hinge on whether Hoi Hup can submit its formal application
for the project to the Urban Redevelopment Authority in time to
secure provisional permission before Oct 7.
After that date, bay windows and planter boxes will no longer be
exempt from GFA calculations.
'We're looking at building a total of five blocks, of which two will
be 46 storeys high and with a sky terrace on one of the upper levels
(above the 20th floor). The remaining blocks will be 40 storeys
high,' the spokeswoman said.
'We have to complete the entire project within four years.'
A Hoi Hup-Sunway consortium is also developing another DBSS flat
project, called City View @ Boon Keng. This was launched earlier this
year at an average price of $520 psf.
More than 80 per cent of the 714 units have been sold so far.
GuocoLand FY08 net falls 43% to $162m
August 23, 2008
GuocoLand FY08 net falls 43% to $162m
By UMA SHANKARI
PROPERTY developer GuocoLand's earnings for the full year ended June
30 fell 43 per cent as it saw lower sales from its property
development projects in Singapore and a one-third fall in other
income.
Net profit attributable to equity-holders fell to $161.84 million
from FY2007's $281.89 million. Earnings per share dropped to 20.17
cents from 46.15 cents.
Revenue for the 12 months dipped 4 per cent to $670.9 million, from
$702.5 million a year ago. Gross profit fell 12 per cent to $135.3
million.
The bottom line was also hit by a $63.9 million or 33 per cent fall
in other income to $130.8 million. This came as interest income and
net foreign exchange gains were more than wiped out by lower
revaluation gain from investment properties and lower investment
property provision writeback.
The group was also hit by higher income tax, mainly from its property
development projects in China.
Finance costs also rose 22 per cent to $39.4 million due to higher
bank borrowings and interest rates.
GuocoLand - which has operations in Singapore, China, Malaysia and
Vietnam - did not provide separate numbers for its fourth quarter.
The group acknowledged that the property markets in the countries
where it operates are slowing down as developers and buyers adopt a
more cautious stance. But in the medium term, it expects these
countries' economies to remain resilient and grow.
'Coupled with the implementation of regulatory measures and macro-
economic policies to control inflation and prevent overheating of the
economy and property markets, the attraction of Asia as a growth
region should have positive effects on the demand for quality housing
in these countries,' GuocoLand said in a filing to the Singapore
Exchange.
For Singapore, the cautious sentiment in the property market is
evidenced by a slowdown and delay in property launches and a lower
take-up rate compared to 2007, GuocoLand noted. But the ongoing
development and subsequent completion of the two integrated resorts
and the Marina Bay Financial Centre should help economic growth in
the next few years, the developer added.
GuocoLand also said that it has increased its inventories from $1.6
billion to $4.5 billion over the past year, mainly due to an increase
in its land bank. Among other purchases, the company completed its en
bloc acquisitions of Sophia Court, Palm Beach Garden, Leedon Heights
and Toho Garden condominiums in Singapore.
GuocoLand shares lost six cents to close at a 52-week low of $2.06
yesterday. The stock has shed 63.5 per cent so far this year.
GuocoLand FY08 net falls 43% to $162m
By UMA SHANKARI
PROPERTY developer GuocoLand's earnings for the full year ended June
30 fell 43 per cent as it saw lower sales from its property
development projects in Singapore and a one-third fall in other
income.
Net profit attributable to equity-holders fell to $161.84 million
from FY2007's $281.89 million. Earnings per share dropped to 20.17
cents from 46.15 cents.
Revenue for the 12 months dipped 4 per cent to $670.9 million, from
$702.5 million a year ago. Gross profit fell 12 per cent to $135.3
million.
The bottom line was also hit by a $63.9 million or 33 per cent fall
in other income to $130.8 million. This came as interest income and
net foreign exchange gains were more than wiped out by lower
revaluation gain from investment properties and lower investment
property provision writeback.
The group was also hit by higher income tax, mainly from its property
development projects in China.
Finance costs also rose 22 per cent to $39.4 million due to higher
bank borrowings and interest rates.
GuocoLand - which has operations in Singapore, China, Malaysia and
Vietnam - did not provide separate numbers for its fourth quarter.
The group acknowledged that the property markets in the countries
where it operates are slowing down as developers and buyers adopt a
more cautious stance. But in the medium term, it expects these
countries' economies to remain resilient and grow.
'Coupled with the implementation of regulatory measures and macro-
economic policies to control inflation and prevent overheating of the
economy and property markets, the attraction of Asia as a growth
region should have positive effects on the demand for quality housing
in these countries,' GuocoLand said in a filing to the Singapore
Exchange.
For Singapore, the cautious sentiment in the property market is
evidenced by a slowdown and delay in property launches and a lower
take-up rate compared to 2007, GuocoLand noted. But the ongoing
development and subsequent completion of the two integrated resorts
and the Marina Bay Financial Centre should help economic growth in
the next few years, the developer added.
GuocoLand also said that it has increased its inventories from $1.6
billion to $4.5 billion over the past year, mainly due to an increase
in its land bank. Among other purchases, the company completed its en
bloc acquisitions of Sophia Court, Palm Beach Garden, Leedon Heights
and Toho Garden condominiums in Singapore.
GuocoLand shares lost six cents to close at a 52-week low of $2.06
yesterday. The stock has shed 63.5 per cent so far this year.
MPs: Plug loopholes for rental flats
Aug 23, 2008
MPs: Plug loopholes for rental flats
One idea to reduce non-desperate cases: Make applicants show proof of
their needy status
By Goh Chin Lian
WHEN it comes to nipping the problem of the not-really-needy applying
for rental flats meant for the truly needy, the health sector offers
some answers.
Eye surgeon and MP Lim Wee Kiak (Sembawang GRC) said the crucial
question asked of applicants for Medifund, which helps the needy pay
for medical expenses, was whether their family can support them
financially.
This meant producing documents to prove family members have little or
no money in their Medisave and bank accounts.
Currently, people who apply for subsidised HDB rental flats do not
need to give such details.
They need only show that their household income is not more than
$1,500 and that they had not sold their property within 30 months of
applying for a rental flat, noted Dr Lim.
Five other MPs who spoke to The Straits Times also gave suggestions
on how to deal with this problem.
These include educating applicants on alternatives to rental flats
and giving concessionary loans to those who want to downgrade to a
smaller flat.
The MPs were responding to Prime Minister Lee Hsien Loong's worry
over the tripling in the number of people seeking HDB rental flats
and his call for those who were not really in need to look for
alternatives, such as moving in with their children or renting a room
in the open market.
In his National Day Rally speech on Sunday, Prime Minister Lee cited
the case of three children asking the HDB to give their mother a
rental flat, even though two of them lived in private property and
they had the money to hire a maid to look after her.
MPs who have seen such cases believe the underlying problem is often
that elderly parents cannot get along with their daughters-in-law or
their own children.
Madam Ho Geok Choo (West Coast GRC) believed the solution was to
counsel such families.
She recalled persuading a man to rotate among his siblings the care
of their elderly parents, instead of putting his old folks in the
queue for a rental flat.
She said: 'The family should always be the first line of defence.
People should not take the easy way out.'
Mr Zaqy Mohamad (Hong Kah GRC) wanted more public education, focusing
in particular on middle-aged parents with children and parents who
live with their grown-up children.
'Educate them on the alternatives to rental flats and go on the
positives, that you should be more caring to your parents,' he said.
And when the HDB comes across such cases, it should refer them to the
community development councils which can mediate among the family
members, instead of just rejecting the application.
He added: 'If you give a straight no, you will get more and more re-
appeals.'
Housing policies also need to change to cater to the high demand for
rental flats, said MPs Liang Eng Hwa (Holland-Bukit Timah GRC) and
Charles Chong (Pasir Ris-Punggol GRC).
They noted that those seeking rental flats may genuinely want to
downgrade to smaller, less costly accommodation.
Mr Liang reckoned that these people who earn more than $1,500 a month
may not mind paying a little more than those renting the flat at a
subsidised rate.
To cater to them and others who are needy, more rental flats should
be built, he added. This would be over and above the current plan to
raise the supply by 20 per cent to 50,000 in the next few years.
Mr Chong homed in on the policy of granting HDB concessionary loans
only to people moving to bigger flats.
He argued that the HDB should allow people who cannot afford to live
in four- or five-room flats and who want to downgrade to also qualify
for these loans. That way, they can look for a smaller flat in the
open market and do not need to apply for a rental flat.
While the HDB has approved requests on a case-by-case basis, Mr Chong
believed it should be 'a matter of policy, not exception'.
One sure change is the eligibility criteria for rental flats. They
are under review, with an eye on tightening them and keeping out
people who are not in need.
MPs: Plug loopholes for rental flats
One idea to reduce non-desperate cases: Make applicants show proof of
their needy status
By Goh Chin Lian
WHEN it comes to nipping the problem of the not-really-needy applying
for rental flats meant for the truly needy, the health sector offers
some answers.
Eye surgeon and MP Lim Wee Kiak (Sembawang GRC) said the crucial
question asked of applicants for Medifund, which helps the needy pay
for medical expenses, was whether their family can support them
financially.
This meant producing documents to prove family members have little or
no money in their Medisave and bank accounts.
Currently, people who apply for subsidised HDB rental flats do not
need to give such details.
They need only show that their household income is not more than
$1,500 and that they had not sold their property within 30 months of
applying for a rental flat, noted Dr Lim.
Five other MPs who spoke to The Straits Times also gave suggestions
on how to deal with this problem.
These include educating applicants on alternatives to rental flats
and giving concessionary loans to those who want to downgrade to a
smaller flat.
The MPs were responding to Prime Minister Lee Hsien Loong's worry
over the tripling in the number of people seeking HDB rental flats
and his call for those who were not really in need to look for
alternatives, such as moving in with their children or renting a room
in the open market.
In his National Day Rally speech on Sunday, Prime Minister Lee cited
the case of three children asking the HDB to give their mother a
rental flat, even though two of them lived in private property and
they had the money to hire a maid to look after her.
MPs who have seen such cases believe the underlying problem is often
that elderly parents cannot get along with their daughters-in-law or
their own children.
Madam Ho Geok Choo (West Coast GRC) believed the solution was to
counsel such families.
She recalled persuading a man to rotate among his siblings the care
of their elderly parents, instead of putting his old folks in the
queue for a rental flat.
She said: 'The family should always be the first line of defence.
People should not take the easy way out.'
Mr Zaqy Mohamad (Hong Kah GRC) wanted more public education, focusing
in particular on middle-aged parents with children and parents who
live with their grown-up children.
'Educate them on the alternatives to rental flats and go on the
positives, that you should be more caring to your parents,' he said.
And when the HDB comes across such cases, it should refer them to the
community development councils which can mediate among the family
members, instead of just rejecting the application.
He added: 'If you give a straight no, you will get more and more re-
appeals.'
Housing policies also need to change to cater to the high demand for
rental flats, said MPs Liang Eng Hwa (Holland-Bukit Timah GRC) and
Charles Chong (Pasir Ris-Punggol GRC).
They noted that those seeking rental flats may genuinely want to
downgrade to smaller, less costly accommodation.
Mr Liang reckoned that these people who earn more than $1,500 a month
may not mind paying a little more than those renting the flat at a
subsidised rate.
To cater to them and others who are needy, more rental flats should
be built, he added. This would be over and above the current plan to
raise the supply by 20 per cent to 50,000 in the next few years.
Mr Chong homed in on the policy of granting HDB concessionary loans
only to people moving to bigger flats.
He argued that the HDB should allow people who cannot afford to live
in four- or five-room flats and who want to downgrade to also qualify
for these loans. That way, they can look for a smaller flat in the
open market and do not need to apply for a rental flat.
While the HDB has approved requests on a case-by-case basis, Mr Chong
believed it should be 'a matter of policy, not exception'.
One sure change is the eligibility criteria for rental flats. They
are under review, with an eye on tightening them and keeping out
people who are not in need.
Retailers hit by soaring rentals
Aug 23, 2008
Retailers hit by soaring rentals
Many are struggling to maintain bottom line, but no relief in sight
yet
By Michelle Tay
FOR a retailer, it is a nightmare scenario - getting stuck in a shop
with expensive rent that attracts no shoppers.
Yet retail rental levels, especially in prime areas, are still
skyrocketing despite the slower economy.
That has left industry players wondering if retailers who committed
to lease shop spaces at very pricey levels have over-extended
themselves.
'The top retail rents of about $80 per sq ft (psf), which were
announced recently by Ion Orchard, are a cause for concern,' said Mr
Colin Tan, head of research and consultancy at Chesterton
International. 'How do you ensure a reasonable profit?'
Said Mr Nash Benjamin, chief executive of fashion retailer FJ
Benjamin: 'Very, very few people can pay that rate. It's a top-end
rate which everyone's making big noise about, but it's neither a
realistic nor sustainable rate.'
'A lot of retailers are struggling,' noted Ms Lau Chuen Wei,
executive director of the Singapore Retailers' Association.
She said: '(It's getting) more difficult for retailers to maintain
top line sales. And what's hitting them quite hard is sustaining the
bottom line.'
According to Jones Lang Lasalle, average retail rents are about 27
per cent higher than they were 10 years ago.
They stood at an average of $41.25 psf a month in the first quarter
of this year, compared to about $32.50 psf a month in the first
quarter of 1998.
They have risen about 57 per cent since the rock-bottom days of the
Asian financial crisis, when they hit $26.25 psf in the first quarter
of 1999.
CB Richard Ellis said 'super-prime space along Orchard Road saw the
highest quarterly increase of 5.3 per cent, hitting an average of
$54.40 psf a month'.
'If the shop size is very small and the shop is situated in a very
busy place, the rentals can be as high as $60 psf or more. (But) the
majority will be between $10 and $50 psf,' said Mr Nicholas Mak,
Knight Frank's director of research and consultancy.
Retailers interviewed by The Straits Times all sigh with despair at
the rising rentals, which property consultants say show no sign of
abating yet.
'Quite a good number of retailers are getting worried about whether
they can sustain present sales volumes in the current economic
slowdown,' said Mr Danny Yeo, Knight Frank's director of retail.
'But have they been complaining that sales have dropped by a very
substantial amount? I don't think so.'
Other industry experts agree, saying that demand for prime retail
spaces remains high.
Rising demand is reflected in the rising occupancy rate, said Mr Mak,
who added that the average occupancy rate for retail space in Orchard
Road rose from 95.4 per cent in the middle of last year to 96.7 per
cent in the middle of this year.
Knight Frank said in a recent research brief that the projected
supply of five million sq ft of retail space expected to be completed
next year will 'serve to relieve the supply crunch seen over the past
couple of years'.
It added that 'retailers can look forward to higher retail sales psf'
as the nominal retail sales figure is expected to rise from $650.60
psf last year to almost $700 psf in 2010.
And it seems the so-called retail hot spots have remained roughly the
same through the years.
Property consultants are unanimous that Orchard Road remains
Singapore's primary and premier shopping belt, mainly because of its
central location and the large density of malls on the strip.
Said Chesterton's Mr Tan: 'Orchard Road has been Singapore's only
major shopping belt. Other shopping areas just cannot match up to
Orchard Road in terms of size, quality and variety.'
'If we classify retail hot spots according to the level of shopper
traffic, the malls nearer to Orchard MRT Station would still be
considered the hottest,' said Ms Daisy Loo, head of leasing and
consulting at Sandalwood Retail.
By these experts' definition, malls such as the upcoming Ion Orchard
and Orchard Central would certainly make it to the 'Singapore's
hottest retail spaces' list and continue commanding premium rental
rates from retailers.
So would the Orchard Road-facing double-storey stores in existing
malls Ngee Ann City, Wisma Atria, Paragon and Mandarin Gallery.
'At the end of the day, it's who wants who more,' said Ms Lau.
'We've heard of times when the mall can bend backwards to accommodate
what the tenant wants.'
Said Mr Yeo: 'I think, going forward, retailers contracting for
renewal will just be more careful about committing to a $60 or $80
psf kind of rent.'
Mr Benjamin said: 'I always tell our landlords to please remember one
thing - You own the property but we are your customers. If we can't
afford to rent your premises, you have a problem. So be nice to your
customers.'
** Singapore's hottest retail spots
* 1: Ion Orchard
Location: Being built at the corner of Orchard Road and Orchard Turn
Top rental range: $60 to $80 per sq foot (psf) per month
Star tenants: Six double-storey stores totalling 50,000 sq ft,
including luxury fashion brands Prada, Louis Vuitton and Cartier
* 2: Wisma Atria
Location: On Orchard Road between Ion and Ngee Ann City
Top rental range: $55 to $70 psf
Star tenants: Double-storey Nike concept store, totalling 8,000 sq
ft, which has taken over the former Topshop space.
* 3: Mandarin Gallery
Location: At the corner of Orchard and Bideford Roads
Top rental range: $50 to $60 psf
Star tenants: Double-storey stores, ranging from 2,700 sq ft to 6,800
sq ft, for Emporio Armani, Marc by Marc Jacobs and D&G.
* 4: Ngee Ann City
Location: At the corner of Orchard and Bideford Roads
Top rental range: $40 to $60 psf
Star tenants: Luxury giants Chanel and Louis Vuitton on the first
floor. They are due to expand into double-storey spaces, or duplexes,
over the next two years - Chanel into a 7,000 sq ft store and Louis
Vuitton into a 10,500 sq ft one.
* 5: Paragon
Location: At the corner of Orchard and Bideford Roads
Top rental range: $40 to $60 psf
Star tenants: Four duplexes facing Orchard Road, ranging in size from
3,600 sq ft to more than 10,000 sq ft, to be occupied by luxe labels
Gucci, Salvatore Ferragamo, Prada and Tod's.
Note: Rental figures provided by Mr Danny Yeo, director of retail at
Knight Frank
Retailers hit by soaring rentals
Many are struggling to maintain bottom line, but no relief in sight
yet
By Michelle Tay
FOR a retailer, it is a nightmare scenario - getting stuck in a shop
with expensive rent that attracts no shoppers.
Yet retail rental levels, especially in prime areas, are still
skyrocketing despite the slower economy.
That has left industry players wondering if retailers who committed
to lease shop spaces at very pricey levels have over-extended
themselves.
'The top retail rents of about $80 per sq ft (psf), which were
announced recently by Ion Orchard, are a cause for concern,' said Mr
Colin Tan, head of research and consultancy at Chesterton
International. 'How do you ensure a reasonable profit?'
Said Mr Nash Benjamin, chief executive of fashion retailer FJ
Benjamin: 'Very, very few people can pay that rate. It's a top-end
rate which everyone's making big noise about, but it's neither a
realistic nor sustainable rate.'
'A lot of retailers are struggling,' noted Ms Lau Chuen Wei,
executive director of the Singapore Retailers' Association.
She said: '(It's getting) more difficult for retailers to maintain
top line sales. And what's hitting them quite hard is sustaining the
bottom line.'
According to Jones Lang Lasalle, average retail rents are about 27
per cent higher than they were 10 years ago.
They stood at an average of $41.25 psf a month in the first quarter
of this year, compared to about $32.50 psf a month in the first
quarter of 1998.
They have risen about 57 per cent since the rock-bottom days of the
Asian financial crisis, when they hit $26.25 psf in the first quarter
of 1999.
CB Richard Ellis said 'super-prime space along Orchard Road saw the
highest quarterly increase of 5.3 per cent, hitting an average of
$54.40 psf a month'.
'If the shop size is very small and the shop is situated in a very
busy place, the rentals can be as high as $60 psf or more. (But) the
majority will be between $10 and $50 psf,' said Mr Nicholas Mak,
Knight Frank's director of research and consultancy.
Retailers interviewed by The Straits Times all sigh with despair at
the rising rentals, which property consultants say show no sign of
abating yet.
'Quite a good number of retailers are getting worried about whether
they can sustain present sales volumes in the current economic
slowdown,' said Mr Danny Yeo, Knight Frank's director of retail.
'But have they been complaining that sales have dropped by a very
substantial amount? I don't think so.'
Other industry experts agree, saying that demand for prime retail
spaces remains high.
Rising demand is reflected in the rising occupancy rate, said Mr Mak,
who added that the average occupancy rate for retail space in Orchard
Road rose from 95.4 per cent in the middle of last year to 96.7 per
cent in the middle of this year.
Knight Frank said in a recent research brief that the projected
supply of five million sq ft of retail space expected to be completed
next year will 'serve to relieve the supply crunch seen over the past
couple of years'.
It added that 'retailers can look forward to higher retail sales psf'
as the nominal retail sales figure is expected to rise from $650.60
psf last year to almost $700 psf in 2010.
And it seems the so-called retail hot spots have remained roughly the
same through the years.
Property consultants are unanimous that Orchard Road remains
Singapore's primary and premier shopping belt, mainly because of its
central location and the large density of malls on the strip.
Said Chesterton's Mr Tan: 'Orchard Road has been Singapore's only
major shopping belt. Other shopping areas just cannot match up to
Orchard Road in terms of size, quality and variety.'
'If we classify retail hot spots according to the level of shopper
traffic, the malls nearer to Orchard MRT Station would still be
considered the hottest,' said Ms Daisy Loo, head of leasing and
consulting at Sandalwood Retail.
By these experts' definition, malls such as the upcoming Ion Orchard
and Orchard Central would certainly make it to the 'Singapore's
hottest retail spaces' list and continue commanding premium rental
rates from retailers.
So would the Orchard Road-facing double-storey stores in existing
malls Ngee Ann City, Wisma Atria, Paragon and Mandarin Gallery.
'At the end of the day, it's who wants who more,' said Ms Lau.
'We've heard of times when the mall can bend backwards to accommodate
what the tenant wants.'
Said Mr Yeo: 'I think, going forward, retailers contracting for
renewal will just be more careful about committing to a $60 or $80
psf kind of rent.'
Mr Benjamin said: 'I always tell our landlords to please remember one
thing - You own the property but we are your customers. If we can't
afford to rent your premises, you have a problem. So be nice to your
customers.'
** Singapore's hottest retail spots
* 1: Ion Orchard
Location: Being built at the corner of Orchard Road and Orchard Turn
Top rental range: $60 to $80 per sq foot (psf) per month
Star tenants: Six double-storey stores totalling 50,000 sq ft,
including luxury fashion brands Prada, Louis Vuitton and Cartier
* 2: Wisma Atria
Location: On Orchard Road between Ion and Ngee Ann City
Top rental range: $55 to $70 psf
Star tenants: Double-storey Nike concept store, totalling 8,000 sq
ft, which has taken over the former Topshop space.
* 3: Mandarin Gallery
Location: At the corner of Orchard and Bideford Roads
Top rental range: $50 to $60 psf
Star tenants: Double-storey stores, ranging from 2,700 sq ft to 6,800
sq ft, for Emporio Armani, Marc by Marc Jacobs and D&G.
* 4: Ngee Ann City
Location: At the corner of Orchard and Bideford Roads
Top rental range: $40 to $60 psf
Star tenants: Luxury giants Chanel and Louis Vuitton on the first
floor. They are due to expand into double-storey spaces, or duplexes,
over the next two years - Chanel into a 7,000 sq ft store and Louis
Vuitton into a 10,500 sq ft one.
* 5: Paragon
Location: At the corner of Orchard and Bideford Roads
Top rental range: $40 to $60 psf
Star tenants: Four duplexes facing Orchard Road, ranging in size from
3,600 sq ft to more than 10,000 sq ft, to be occupied by luxe labels
Gucci, Salvatore Ferragamo, Prada and Tod's.
Note: Rental figures provided by Mr Danny Yeo, director of retail at
Knight Frank
CapitaLand's 4 new properties in China fund
Aug 23, 2008
CapitaLand's 4 new properties in China fund
SOUTH-EAST Asia's biggest real-estate player, CapitaLand, is
injecting four properties into the recently launched US$1 billion
($1.41 billion) Raffles City China Fund.
The Raffles City-branded properties, three of which are under
construction, are in the Chinese cities of Shanghai, Beijing, Chengdu
and Hangzhou.
All four properties are mixed developments.
Raffles City Shanghai, which was completed in 2003, has both office
and retail space. Raffles City Beijing, which will be finished next
year, will also have serviced residences.
Raffles City Chengdu and Raffles City Hangzhou, which are expected to
be completed in 2011 and 2012 respectively, will also have a five-
star hotel and serviced residences, in addition to office and retail
space.
CapitaLand has a 50 per cent stake in the fund, which it manages.
In return for injecting the four properties, it will receive
approximately US$841 million, the company said yesterday.
CapitaLand's 4 new properties in China fund
SOUTH-EAST Asia's biggest real-estate player, CapitaLand, is
injecting four properties into the recently launched US$1 billion
($1.41 billion) Raffles City China Fund.
The Raffles City-branded properties, three of which are under
construction, are in the Chinese cities of Shanghai, Beijing, Chengdu
and Hangzhou.
All four properties are mixed developments.
Raffles City Shanghai, which was completed in 2003, has both office
and retail space. Raffles City Beijing, which will be finished next
year, will also have serviced residences.
Raffles City Chengdu and Raffles City Hangzhou, which are expected to
be completed in 2011 and 2012 respectively, will also have a five-
star hotel and serviced residences, in addition to office and retail
space.
CapitaLand has a 50 per cent stake in the fund, which it manages.
In return for injecting the four properties, it will receive
approximately US$841 million, the company said yesterday.
GuocoLand's gains fall 43% on lower property sales
Aug 23, 2008
GuocoLand's gains fall 43% on lower property sales
By Chua Hian Hou
COOLING regional property markets have taken a hefty chunk out of
GuocoLand's bottom line.
The property developer's full-year net profits plunged 43 per cent to
$161.8 million on the back of a 4 per cent dip in revenue to $670.9
million.
Besides lower contribution from property sales, GuocoLand enjoyed
significant one-off contributions for the 2007 financial year. These
included a $19.3 million contribution from the sale of a long-term
investment, $16.9 million from the sale of a hotel in Hanoi, and
$10.3 million from an equity swap.
Its finance costs had also risen by 22 per cent to $39.4 million, due
to higher interest rates and higher bank borrowings.
Earnings per share was 20.17 cents, down from 46.15 cents last year,
while net asset value rose from $2.30 last June to $2.41 this year.
Despite the poorer showing in the 12 months ended June 30 this year,
GuocoLand is paying out a dividend of eight cents per share, the same
as last year.
It warned that this financial year is likely to be challenging due to
slowing economic growth in Singapore and in the region.
This is already showing up in more 'cautious sentiment in the
property market...evidenced by a slowdown and delay in property
launches and a lower take-up rate' in Singapore, it said.
GuocoLand is hopeful that the upcoming integrated resorts will boost
economic growth and, accordingly, its own fortunes. It added that the
medium-term demand for residential property should remain stable.
Its other markets are also under pressure. China, despite higher
growth compared with Singapore, is also facing a cooling property
market due to 'credit squeeze, slower sales and lower prices'. While
it will continue to grow in the long term, medium-term demand will
only be 'stable' in the light of these problems.
And while Vietnam's long-term prospects 'remain bright', it is
currently beset by high inflation, which has prompted the government
to tighten credit and reduce loans.
One bright spark is Malaysia. GuocoLand said government policies to
make home ownership more attractive meant 'property sentiment will
remain positive in the medium term'.
GuocoLand's gains fall 43% on lower property sales
By Chua Hian Hou
COOLING regional property markets have taken a hefty chunk out of
GuocoLand's bottom line.
The property developer's full-year net profits plunged 43 per cent to
$161.8 million on the back of a 4 per cent dip in revenue to $670.9
million.
Besides lower contribution from property sales, GuocoLand enjoyed
significant one-off contributions for the 2007 financial year. These
included a $19.3 million contribution from the sale of a long-term
investment, $16.9 million from the sale of a hotel in Hanoi, and
$10.3 million from an equity swap.
Its finance costs had also risen by 22 per cent to $39.4 million, due
to higher interest rates and higher bank borrowings.
Earnings per share was 20.17 cents, down from 46.15 cents last year,
while net asset value rose from $2.30 last June to $2.41 this year.
Despite the poorer showing in the 12 months ended June 30 this year,
GuocoLand is paying out a dividend of eight cents per share, the same
as last year.
It warned that this financial year is likely to be challenging due to
slowing economic growth in Singapore and in the region.
This is already showing up in more 'cautious sentiment in the
property market...evidenced by a slowdown and delay in property
launches and a lower take-up rate' in Singapore, it said.
GuocoLand is hopeful that the upcoming integrated resorts will boost
economic growth and, accordingly, its own fortunes. It added that the
medium-term demand for residential property should remain stable.
Its other markets are also under pressure. China, despite higher
growth compared with Singapore, is also facing a cooling property
market due to 'credit squeeze, slower sales and lower prices'. While
it will continue to grow in the long term, medium-term demand will
only be 'stable' in the light of these problems.
And while Vietnam's long-term prospects 'remain bright', it is
currently beset by high inflation, which has prompted the government
to tighten credit and reduce loans.
One bright spark is Malaysia. GuocoLand said government policies to
make home ownership more attractive meant 'property sentiment will
remain positive in the medium term'.
Fannie, Freddie rescue plan could be costly for many
August 23, 2008
Fannie, Freddie rescue plan could be costly for many
It may affect scores of companies with preferred shares
(WASHINGTON) A government rescue of Fannie Mae and Freddie Mac could
be costly for scores of investment, banking and insurance companies
that hold billions of dollars in preferred shares in the mortgage
finance giants.
Speculation has been building on Wall Street that a government
investment to rescue Fannie and Freddie would come in the form of a
cash infusion through the acquisition of preferred shares in the
companies.
Preferred shares usually pay a fixed dividend and have priority over
common stock when it comes to dividends and bankruptcy liquidation.
While slightly riskier than bonds, which have the highest priority in
times of trouble, companies often invest in preferred shares for
certain tax advantages.
Investors appear to believe existing common stockholders could be
wiped out if there is a government bailout.
Fannie and Freddie's shares have lost more than 90 per cent of their
value this year.
But what happens to preferred stockholders is less certain.
'That depends on how big Fannie and Freddie blow up,' said Michael
Shedlock, an investment adviser for SitkaPacific Capital Management.
On Wall Street, investors think it could be big. Fannie and Freddie's
existing preferred shares are trading like junk bonds: yielding
around 17 per cent to 19 per cent instead around their 6 per cent
dividend levels. The higher yield is an inducement to investors to
accept the higher level of risk that the companies won't be able to
pay their dividends.
'There's enormous investor concern,' said Bert Ely, a banking
industry consultant.
Fannie Mae has 17 classes of preferred stock, with more than 600
million shares outstanding. Freddie Mac has 24 classes of preferred
stock, with about 460 million shares outstanding.
Congressional analysts estimate a government rescue of the mortgage
giants could cost taxpayers US$25 billion, with the exact amount
based on how far the US housing market falls and how severe their
financial situation turns out to be in the long run.
Another uncertainty is political: The final resolution of Fannie and
Freddie's future is likely to be determined after the Bush
administration leaves office in January. It remains unclear how much
in taxpayer resources the next administration and Congress would be
willing to commit.
Fannie, Freddie rescue plan could be costly for many
It may affect scores of companies with preferred shares
(WASHINGTON) A government rescue of Fannie Mae and Freddie Mac could
be costly for scores of investment, banking and insurance companies
that hold billions of dollars in preferred shares in the mortgage
finance giants.
Speculation has been building on Wall Street that a government
investment to rescue Fannie and Freddie would come in the form of a
cash infusion through the acquisition of preferred shares in the
companies.
Preferred shares usually pay a fixed dividend and have priority over
common stock when it comes to dividends and bankruptcy liquidation.
While slightly riskier than bonds, which have the highest priority in
times of trouble, companies often invest in preferred shares for
certain tax advantages.
Investors appear to believe existing common stockholders could be
wiped out if there is a government bailout.
Fannie and Freddie's shares have lost more than 90 per cent of their
value this year.
But what happens to preferred stockholders is less certain.
'That depends on how big Fannie and Freddie blow up,' said Michael
Shedlock, an investment adviser for SitkaPacific Capital Management.
On Wall Street, investors think it could be big. Fannie and Freddie's
existing preferred shares are trading like junk bonds: yielding
around 17 per cent to 19 per cent instead around their 6 per cent
dividend levels. The higher yield is an inducement to investors to
accept the higher level of risk that the companies won't be able to
pay their dividends.
'There's enormous investor concern,' said Bert Ely, a banking
industry consultant.
Fannie Mae has 17 classes of preferred stock, with more than 600
million shares outstanding. Freddie Mac has 24 classes of preferred
stock, with about 460 million shares outstanding.
Congressional analysts estimate a government rescue of the mortgage
giants could cost taxpayers US$25 billion, with the exact amount
based on how far the US housing market falls and how severe their
financial situation turns out to be in the long run.
Another uncertainty is political: The final resolution of Fannie and
Freddie's future is likely to be determined after the Bush
administration leaves office in January. It remains unclear how much
in taxpayer resources the next administration and Congress would be
willing to commit.
Friday, August 22, 2008
Second UK university to set up here
Second UK university to set up here
Campus which will take 3,000 to kick off next year
IT'S slated to start operations by the start of next year.
By Karen Wong
22 August 2008
IT'S slated to start operations by the start of next year.
On offer will be programmes in the business and management disciplines, like undergraduate and postgraduate degrees in accountancy, banking and finance and business information systems.
The University of Wales Institute, Cardiff's (UWIC) Asia campus will also run electives in casino management and events management.
The new campus, located at Henderson, will be able to accommodate up to 3,000 students, it said in a press statement.
UWIC is the second UK institution set to open its campus here in the space of a year.
In April, Queen Margaret University (QMU) Edinburgh became the first UK university to set up a campus in Singapore.
Its focus is on hospitality and tourism-related programmes.
Both the UWIC and QMU's Asian campuses are tie-ups with East Asia Institute of Management (EASB).
So far, the universities, under the private education organisations (PEOs) umbrella, that have set up campuses here, are from Australia.
Why two in a year?
EASB's chairman and chief executive, Mr Andrew Chua, told The New Paper that it just happened that the processes culminated around the same time.
'The idea of a branch campus for the two UK institutions had actually been mooted more than a year ago,' he explained.
'We have been talking to our university partners and we had to go through a lot of processes.'
Asked if there are more such tie-ups in the pipeline, Mr Chua, who heads the PEO, replied: 'Maybe not in the next year.'
UWIC, which is Cardiff's Metropolitan University, is known for its career-oriented degree courses, with 95 per cent of its graduates gaining employment, or going on to further studies, within six months of graduating.
Mr Chua indicated that about 50 per cent of lecturers who teach the UWIC programme here will come from the university itself.
The other half, mostly made up of local lecturers, will be assimilated by the universities as adjunct lecturers, he said.
He added: 'We believe that having a campus is the way to go for private education at a tertiary level.'
--------------------------------------------------------------------------------
Copyright © 2005 Singapore Press Holdings Ltd. Co. Regn. No. 198402868E. All rights reserved.
Privacy Statement and Conditions of Access
Campus which will take 3,000 to kick off next year
IT'S slated to start operations by the start of next year.
By Karen Wong
22 August 2008
IT'S slated to start operations by the start of next year.
On offer will be programmes in the business and management disciplines, like undergraduate and postgraduate degrees in accountancy, banking and finance and business information systems.
The University of Wales Institute, Cardiff's (UWIC) Asia campus will also run electives in casino management and events management.
The new campus, located at Henderson, will be able to accommodate up to 3,000 students, it said in a press statement.
UWIC is the second UK institution set to open its campus here in the space of a year.
In April, Queen Margaret University (QMU) Edinburgh became the first UK university to set up a campus in Singapore.
Its focus is on hospitality and tourism-related programmes.
Both the UWIC and QMU's Asian campuses are tie-ups with East Asia Institute of Management (EASB).
So far, the universities, under the private education organisations (PEOs) umbrella, that have set up campuses here, are from Australia.
Why two in a year?
EASB's chairman and chief executive, Mr Andrew Chua, told The New Paper that it just happened that the processes culminated around the same time.
'The idea of a branch campus for the two UK institutions had actually been mooted more than a year ago,' he explained.
'We have been talking to our university partners and we had to go through a lot of processes.'
Asked if there are more such tie-ups in the pipeline, Mr Chua, who heads the PEO, replied: 'Maybe not in the next year.'
UWIC, which is Cardiff's Metropolitan University, is known for its career-oriented degree courses, with 95 per cent of its graduates gaining employment, or going on to further studies, within six months of graduating.
Mr Chua indicated that about 50 per cent of lecturers who teach the UWIC programme here will come from the university itself.
The other half, mostly made up of local lecturers, will be assimilated by the universities as adjunct lecturers, he said.
He added: 'We believe that having a campus is the way to go for private education at a tertiary level.'
--------------------------------------------------------------------------------
Copyright © 2005 Singapore Press Holdings Ltd. Co. Regn. No. 198402868E. All rights reserved.
Privacy Statement and Conditions of Access
Cooling property market takes a seat at SLA auction
August 22, 2008
Cooling property market takes a seat at SLA auction
Only four of eight in-fill sites launched for residential use were
eventually sold
By EMILYN YAP
(SINGAPORE) The wait-and-see attitude that buyers have adopted in the
cooling property market was evident at a Singapore Land Authority
(SLA) auction yesterday.
Some 200 individuals and small developers packed a room at M Hotel,
but there were only a handful of bidders. Only four of eight in-fill
sites launched for residential use were eventually sold, for a total
of $13.81 million.
In-fill sites are pockets of state land in established landed housing
estates that have been left untouched by nearby development or were
once used for public purposes. All eight sites came with fresh 99-
year leases.
'The response today was very cautious,' said auctioneer and executive
director (auctions) at Knight Frank, Mary Sai. SLA conducted a
similar auction for six sites last November but sold all the plots
then.
Those at yesterday's auction told BT that opening prices were higher
than expected. 'I think a lot of people were surprised - that's why
there was not much bidding,' said retiree Anthony Tan Ho Peng.
Mr Tan won the bidding for a 4,720 sq ft three-storey bungalow plot
in Glasgow Road for $710,000 or $150.40 per sq ft. Bidding started at
$680,000, whereas Mr Tan had expected an opening price of $550,000.
According to SLA, the Chief Valuer decides reserve prices for sites,
which cannot be awarded if bids are too low.
The timing of the auction - coinciding with the Hungry Ghost Festival
or the seventh month of the lunar calendar - could have affected
interest. But Ms Sai reckons this was not the main reason. 'Market
sentiment is still weak,' she said. And high construction costs could
be another concern.
While the auction did not generate heated competition throughout, one
parcel received considerable attention. A 15,461 sq ft good class
bungalow plot in Ridout Road attracted 34 bids, which drove the
opening price of $7.31 million up steadily.
BreadTalk chairman George Quek eventually won the site for $8.96
million or $579.50 psf - the highest psf price of the four sites
sold. Mr Quek told reporters that the land will be for his own use.
A three-storey bungalow parcel in Namly Avenue went for $2.63 million
or $338.40 psf to Martha Lim. The 31-year-old CEO of Lim Seng Kok
Contractor may also keep the 7,771 sq ft site for her own use.
A plot in Tanah Merah Kechil Road was sold for $1.51 million or
$346.60 psf.
As for the unsold sites, SLA will work with the Chief Valuer to re-
assess their prices. 'If we lower the reserve price, we could release
(the site) subsequently,' said SLA's deputy director of land sales,
Teo Jing Kok. Alternatively, 'if the feedback is that maybe the site
is not popular and there are other in-fill sites, then we will
release other sites'.
According to Mr Teo, SLA could hold one or two land auctions a year
if market conditions remain steady.
Cooling property market takes a seat at SLA auction
Only four of eight in-fill sites launched for residential use were
eventually sold
By EMILYN YAP
(SINGAPORE) The wait-and-see attitude that buyers have adopted in the
cooling property market was evident at a Singapore Land Authority
(SLA) auction yesterday.
Some 200 individuals and small developers packed a room at M Hotel,
but there were only a handful of bidders. Only four of eight in-fill
sites launched for residential use were eventually sold, for a total
of $13.81 million.
In-fill sites are pockets of state land in established landed housing
estates that have been left untouched by nearby development or were
once used for public purposes. All eight sites came with fresh 99-
year leases.
'The response today was very cautious,' said auctioneer and executive
director (auctions) at Knight Frank, Mary Sai. SLA conducted a
similar auction for six sites last November but sold all the plots
then.
Those at yesterday's auction told BT that opening prices were higher
than expected. 'I think a lot of people were surprised - that's why
there was not much bidding,' said retiree Anthony Tan Ho Peng.
Mr Tan won the bidding for a 4,720 sq ft three-storey bungalow plot
in Glasgow Road for $710,000 or $150.40 per sq ft. Bidding started at
$680,000, whereas Mr Tan had expected an opening price of $550,000.
According to SLA, the Chief Valuer decides reserve prices for sites,
which cannot be awarded if bids are too low.
The timing of the auction - coinciding with the Hungry Ghost Festival
or the seventh month of the lunar calendar - could have affected
interest. But Ms Sai reckons this was not the main reason. 'Market
sentiment is still weak,' she said. And high construction costs could
be another concern.
While the auction did not generate heated competition throughout, one
parcel received considerable attention. A 15,461 sq ft good class
bungalow plot in Ridout Road attracted 34 bids, which drove the
opening price of $7.31 million up steadily.
BreadTalk chairman George Quek eventually won the site for $8.96
million or $579.50 psf - the highest psf price of the four sites
sold. Mr Quek told reporters that the land will be for his own use.
A three-storey bungalow parcel in Namly Avenue went for $2.63 million
or $338.40 psf to Martha Lim. The 31-year-old CEO of Lim Seng Kok
Contractor may also keep the 7,771 sq ft site for her own use.
A plot in Tanah Merah Kechil Road was sold for $1.51 million or
$346.60 psf.
As for the unsold sites, SLA will work with the Chief Valuer to re-
assess their prices. 'If we lower the reserve price, we could release
(the site) subsequently,' said SLA's deputy director of land sales,
Teo Jing Kok. Alternatively, 'if the feedback is that maybe the site
is not popular and there are other in-fill sites, then we will
release other sites'.
According to Mr Teo, SLA could hold one or two land auctions a year
if market conditions remain steady.
Lum Chang wins $76.5m contract from A-Reit
August 22, 2008
Lum Chang wins $76.5m contract from A-Reit
By UMA SHANKARI
ASCENDAS Real Estate Investment Trust (A-Reit) has awarded a $76.5
million design-and-build contract to a unit of Lum Chang Holdings for
the construction of a new eight-storey tower and a three-storey
ancilliary podium in Changi Business Park.
The building will be on land with an area of over 28,000 square
metres - one of the biggest developments there, Lum Chang said. The
project is due to be completed by October 2009.
The contract marks the second time that A-Reit has appointed
homegrown construction company Lum Chang for a Changi Business Park
development.
In 2007, Lum Chang was awarded a $71.8 million tender to build an
eight-storey office building - the first of three towers in the
Changi Business Park commercial development.
Construction of this building as well as the basement carpark is
currently underway, and progress is well on track for completion in
the first quarter of 2009.
The building has been leased to Citigroup to house up to 4,000
operational and backroom staff.
The latest contract brings the total value of contracts Lum Chang
still has in progress to over $456 million, the company said.
The newest project is expected to be 60 per cent completed by the end
of the financial year ending June 30, 2009.
The earnings from this contract will be recognised progressively
according to the stage of completion, Lum Chang said.
Lum Chang's shares lost two cents to close at a 52-week low of 19
cents yesterday. A-Reit's stock similarly shed two cents to end the
day at $2.30.
Lum Chang wins $76.5m contract from A-Reit
By UMA SHANKARI
ASCENDAS Real Estate Investment Trust (A-Reit) has awarded a $76.5
million design-and-build contract to a unit of Lum Chang Holdings for
the construction of a new eight-storey tower and a three-storey
ancilliary podium in Changi Business Park.
The building will be on land with an area of over 28,000 square
metres - one of the biggest developments there, Lum Chang said. The
project is due to be completed by October 2009.
The contract marks the second time that A-Reit has appointed
homegrown construction company Lum Chang for a Changi Business Park
development.
In 2007, Lum Chang was awarded a $71.8 million tender to build an
eight-storey office building - the first of three towers in the
Changi Business Park commercial development.
Construction of this building as well as the basement carpark is
currently underway, and progress is well on track for completion in
the first quarter of 2009.
The building has been leased to Citigroup to house up to 4,000
operational and backroom staff.
The latest contract brings the total value of contracts Lum Chang
still has in progress to over $456 million, the company said.
The newest project is expected to be 60 per cent completed by the end
of the financial year ending June 30, 2009.
The earnings from this contract will be recognised progressively
according to the stage of completion, Lum Chang said.
Lum Chang's shares lost two cents to close at a 52-week low of 19
cents yesterday. A-Reit's stock similarly shed two cents to end the
day at $2.30.
Market could do with Wing Tai plainspeak
August 22, 2008
Market could do with Wing Tai plainspeak
By KALPANA RASHIWALA
WHEN Wing Tai Holdings holds its fourth-quarter and full-year results
briefing next Tuesday, it will be the last of the major Singapore-
listed property groups to announce results for the period ended June
30, 2008. Net earnings are expected to be lower than the $382 million
record performance for the preceding year. But the wait may still be
worth it, if the Cheng brothers who helm the group once again give a
candid assessment of the state of the Singapore property market.
The duo has made some of the frankest pronouncements on market
prospects. Last August, during the early days of the US sub-prime
mortgage crisis, Wing Tai chairman Cheng Wai Keung was probably the
first major developer to say publicly that sub-prime woes had slowed
property transactions across the entire market in Singapore.
He said: 'Yes, temporarily, it has affected some of the take-up
rates. But it is actually not a bad thing. The market needs a bit of
consolidation. High-end home prices have gone up 100 per cent within
the last 6-9 months. It's just not sustainable. But if sub-prime
settles within a reasonable period, I believe there is still room to
grow in the property market. We're not at the end of the property
cycle.
'On the other hand, if sub-prime or the credit market continues to be
in turmoil and it affects confidence in general, then, of course, it
will be a completely different scenario,' he had added.
That was in August last year. By February this year, when the sub-
prime crisis and its bite on the local property market had worsened,
some developers here were still singing a positive tune, hoping the
sub-prime gloom would blow away after mid-year.
* Upfront
But Wing Tai deputy chairman Edmund Cheng told BT at the time that it
may not be realistic to expect sub-prime problems to fade away by mid-
year. 'They are likely to linger beyond this year, as the exposure
has extended to many other areas, and it may still take some time for
the full extent of exposure to be discovered,' he said.
Now, with the official forecast for Singapore's GDP growth this year
trimmed and all-round warnings for tougher times ahead, the market
will hopefully once again be able to count on the Cheng brothers to
deliver an honest verdict for the property market - and perhaps even
offer some advice for property investors caught in the turbulence.
After all, Wing Tai itself has been through tough times. It was one
of the worst-hit developers during the Asian financial crisis. It
chalked up huge losses and was strained by a pile of debt.
It had bought some high-priced residential plots in Singapore in June
1997, on the eve of the Asian crisis. These included a 99-year
leasehold residential site at Draycott Park that it purchased at
$1,103.60 per square foot per plot ratio (psf ppr) and another plot
in the Newton Road area for $611.91 psf ppr. The price of the
Draycott plot remained a record for 99-year leasehold prime district
residential land for about a decade.
* Better shape
Wing Tai had high net gearing ratios (over 1) during the Asian crisis
years and again during the more recent property slowdown in 2000-
2004. Today, the group is in much better financial shape. As at March
31, 2008, its net gearing ratio was 0.5.
Like all developers, Wing Tai will try to hold off launches given the
current weak market sentiment, especially since it has strengthened
its financial position from the recent Singapore residential market
boom between 2005 and 2007.
But, as Morgan Stanley Research said in a recent report: 'Should the
residential market remain subdued for a prolonged period, Wing Tai
may have no choice but to stomach lower selling prices to entice
buying activity, particularly if the other developers have cut
selling prices in their projects.'
The group's existing Singapore residential land bank was by and large
acquired at more attractive prices, except for a 40 per cent stake in
a 99-year leasehold plot at Alexandra Road bought for $639 psf ppr
late last year.
Fortunately for Wing Tai, its other prime district freehold sites
like Anderson 18, Ardmore Point, Belle Vue and Newton Meadows were
acquired between 2005 and May 2007 at relatively attractive prices of
$1,650 psf ppr and $1,369 psf ppr for Anderson 18 and Ardmore Point
respectively and about $660 psf ppr for both Belle Vue and Newton
Meadows.
If necessary, Wing Tai could take a hit on selling prices for new
condos on these sites and should still be able to make a decent
profit. Wing Tai seems to have learnt its lessons from the past and,
hopefully, history will not repeat itself. As a bonus, the Cheng
brothers may again offer probing insights into the local property
market next week.
Market could do with Wing Tai plainspeak
By KALPANA RASHIWALA
WHEN Wing Tai Holdings holds its fourth-quarter and full-year results
briefing next Tuesday, it will be the last of the major Singapore-
listed property groups to announce results for the period ended June
30, 2008. Net earnings are expected to be lower than the $382 million
record performance for the preceding year. But the wait may still be
worth it, if the Cheng brothers who helm the group once again give a
candid assessment of the state of the Singapore property market.
The duo has made some of the frankest pronouncements on market
prospects. Last August, during the early days of the US sub-prime
mortgage crisis, Wing Tai chairman Cheng Wai Keung was probably the
first major developer to say publicly that sub-prime woes had slowed
property transactions across the entire market in Singapore.
He said: 'Yes, temporarily, it has affected some of the take-up
rates. But it is actually not a bad thing. The market needs a bit of
consolidation. High-end home prices have gone up 100 per cent within
the last 6-9 months. It's just not sustainable. But if sub-prime
settles within a reasonable period, I believe there is still room to
grow in the property market. We're not at the end of the property
cycle.
'On the other hand, if sub-prime or the credit market continues to be
in turmoil and it affects confidence in general, then, of course, it
will be a completely different scenario,' he had added.
That was in August last year. By February this year, when the sub-
prime crisis and its bite on the local property market had worsened,
some developers here were still singing a positive tune, hoping the
sub-prime gloom would blow away after mid-year.
* Upfront
But Wing Tai deputy chairman Edmund Cheng told BT at the time that it
may not be realistic to expect sub-prime problems to fade away by mid-
year. 'They are likely to linger beyond this year, as the exposure
has extended to many other areas, and it may still take some time for
the full extent of exposure to be discovered,' he said.
Now, with the official forecast for Singapore's GDP growth this year
trimmed and all-round warnings for tougher times ahead, the market
will hopefully once again be able to count on the Cheng brothers to
deliver an honest verdict for the property market - and perhaps even
offer some advice for property investors caught in the turbulence.
After all, Wing Tai itself has been through tough times. It was one
of the worst-hit developers during the Asian financial crisis. It
chalked up huge losses and was strained by a pile of debt.
It had bought some high-priced residential plots in Singapore in June
1997, on the eve of the Asian crisis. These included a 99-year
leasehold residential site at Draycott Park that it purchased at
$1,103.60 per square foot per plot ratio (psf ppr) and another plot
in the Newton Road area for $611.91 psf ppr. The price of the
Draycott plot remained a record for 99-year leasehold prime district
residential land for about a decade.
* Better shape
Wing Tai had high net gearing ratios (over 1) during the Asian crisis
years and again during the more recent property slowdown in 2000-
2004. Today, the group is in much better financial shape. As at March
31, 2008, its net gearing ratio was 0.5.
Like all developers, Wing Tai will try to hold off launches given the
current weak market sentiment, especially since it has strengthened
its financial position from the recent Singapore residential market
boom between 2005 and 2007.
But, as Morgan Stanley Research said in a recent report: 'Should the
residential market remain subdued for a prolonged period, Wing Tai
may have no choice but to stomach lower selling prices to entice
buying activity, particularly if the other developers have cut
selling prices in their projects.'
The group's existing Singapore residential land bank was by and large
acquired at more attractive prices, except for a 40 per cent stake in
a 99-year leasehold plot at Alexandra Road bought for $639 psf ppr
late last year.
Fortunately for Wing Tai, its other prime district freehold sites
like Anderson 18, Ardmore Point, Belle Vue and Newton Meadows were
acquired between 2005 and May 2007 at relatively attractive prices of
$1,650 psf ppr and $1,369 psf ppr for Anderson 18 and Ardmore Point
respectively and about $660 psf ppr for both Belle Vue and Newton
Meadows.
If necessary, Wing Tai could take a hit on selling prices for new
condos on these sites and should still be able to make a decent
profit. Wing Tai seems to have learnt its lessons from the past and,
hopefully, history will not repeat itself. As a bonus, the Cheng
brothers may again offer probing insights into the local property
market next week.
More flexible guidelines for M'sian reits
August 22, 2008
More flexible guidelines for M'sian reits
More leeway for expansion, but withholding taxes not addressed
By PAULINE NG IN KUALA LUMPUR
MALAYSIA has announced new real estate investment trust (Reit)
guidelines that would give Reit management companies greater
flexibility to manage and expand their portfolios, but left the issue
of its uncompetitive withholding taxes untouched.
The new measures - a follow-on to earlier ones announced in the last
national budget where foreign shareholders were allowed to hold up to
70 per cent of Reit management companies, from 49 per cent
previously - make it easier for Malaysian Reits in terms of
acquisitions and fund-raising.
Reit managers would be given more leeway to invest in foreign real
estate and a portion of their portfolio can consist of real estate
that it does not wholly own or claim a majority stake in.
The Securities Commission's (SC) revised guidelines also allow Reit
managers to seek a general mandate from unit-holders for issuing
units up to 20 per cent of its fund size, where previously the
issuance of any number of new units required the specific approval of
unit holders.
Although Reits are still not permitted to acquire non-income
generating real estate such as vacant land, they can now buy property
that is under construction or uncompleted real estate up to 10 per
cent of their total asset value.
Trustees would also have a bigger role to play in related party
transactions, with new rules introduced to regulate such
transactions.
But the new rules designed to give more management flexibility and to
augment investor protection aside, there was disappointment in that
the main drag on the industry was not addressed.
Reit managers and analysts have repeatedly stressed the country's
high withholding taxes on Reit income make it an unattractive
proposition for investors, particularly foreign ones, and have
stymied the sector's growth with potential Reit owners preferring to
look elsewhere.
While the SC has done a good job trying to relax the sector yet
protecting the interest of investors, Quill Capita Trust chief
executive Chan Say Yeong said the measures would not boost the
industry unless the tax issue was addressed. 'What is more important
right now is the withholding tax,' he observed, the lack of attention
to the matter in the past three years being a sore point with
investors. 'Investors tell us on our roadshows that the government is
not serious in promoting the industry.'
Malaysia's withholding tax on Reit dividends received by foreign
institutions is 20 per cent or twice the amount Singapore imposes.
Individuals are also taxed at 15 per cent.
At 7 per cent, Malaysian Reits might offer higher yields, but after
deducting the tax, it is not significantly more attractive than the 5-
6 per cent yield offered by Singapore Reits - a reason why they did
not perform as well even when the stock market was roaring last year.
Despite these disadvantages, CapitaLand has committed to the listing
of a RM2 billion (S$844 million) asset-sized retail Reit on Bursa
Malaysia, likely to be the largest Reit in the country.
However, the Finance Ministry's reluctance to lower the taxes has
been a source of frustration for players who continue to clamour for
a reduction ahead of every national budget - 2009's to be tabled next
Friday. At the same time, a number of local owners with large
property assets have said they do not discount listing their Reits
overseas in more favourable markets.
Why the ministry continues to maintain the rate is unclear as
analysts said the funds earned are not huge given Malaysia only has
some 11 Reits at present, the average asset size less than RM500
million.
In its statement, the SC also said its prior approval on real estate
valuation was now only required where the purchase of a real estate
is financed, or re-financed within one year, through the issuance of
new units. In all other circumstances, it would conduct a post-review
of the valuations to ensure they are reasonable and well-supported.
More flexible guidelines for M'sian reits
More leeway for expansion, but withholding taxes not addressed
By PAULINE NG IN KUALA LUMPUR
MALAYSIA has announced new real estate investment trust (Reit)
guidelines that would give Reit management companies greater
flexibility to manage and expand their portfolios, but left the issue
of its uncompetitive withholding taxes untouched.
The new measures - a follow-on to earlier ones announced in the last
national budget where foreign shareholders were allowed to hold up to
70 per cent of Reit management companies, from 49 per cent
previously - make it easier for Malaysian Reits in terms of
acquisitions and fund-raising.
Reit managers would be given more leeway to invest in foreign real
estate and a portion of their portfolio can consist of real estate
that it does not wholly own or claim a majority stake in.
The Securities Commission's (SC) revised guidelines also allow Reit
managers to seek a general mandate from unit-holders for issuing
units up to 20 per cent of its fund size, where previously the
issuance of any number of new units required the specific approval of
unit holders.
Although Reits are still not permitted to acquire non-income
generating real estate such as vacant land, they can now buy property
that is under construction or uncompleted real estate up to 10 per
cent of their total asset value.
Trustees would also have a bigger role to play in related party
transactions, with new rules introduced to regulate such
transactions.
But the new rules designed to give more management flexibility and to
augment investor protection aside, there was disappointment in that
the main drag on the industry was not addressed.
Reit managers and analysts have repeatedly stressed the country's
high withholding taxes on Reit income make it an unattractive
proposition for investors, particularly foreign ones, and have
stymied the sector's growth with potential Reit owners preferring to
look elsewhere.
While the SC has done a good job trying to relax the sector yet
protecting the interest of investors, Quill Capita Trust chief
executive Chan Say Yeong said the measures would not boost the
industry unless the tax issue was addressed. 'What is more important
right now is the withholding tax,' he observed, the lack of attention
to the matter in the past three years being a sore point with
investors. 'Investors tell us on our roadshows that the government is
not serious in promoting the industry.'
Malaysia's withholding tax on Reit dividends received by foreign
institutions is 20 per cent or twice the amount Singapore imposes.
Individuals are also taxed at 15 per cent.
At 7 per cent, Malaysian Reits might offer higher yields, but after
deducting the tax, it is not significantly more attractive than the 5-
6 per cent yield offered by Singapore Reits - a reason why they did
not perform as well even when the stock market was roaring last year.
Despite these disadvantages, CapitaLand has committed to the listing
of a RM2 billion (S$844 million) asset-sized retail Reit on Bursa
Malaysia, likely to be the largest Reit in the country.
However, the Finance Ministry's reluctance to lower the taxes has
been a source of frustration for players who continue to clamour for
a reduction ahead of every national budget - 2009's to be tabled next
Friday. At the same time, a number of local owners with large
property assets have said they do not discount listing their Reits
overseas in more favourable markets.
Why the ministry continues to maintain the rate is unclear as
analysts said the funds earned are not huge given Malaysia only has
some 11 Reits at present, the average asset size less than RM500
million.
In its statement, the SC also said its prior approval on real estate
valuation was now only required where the purchase of a real estate
is financed, or re-financed within one year, through the issuance of
new units. In all other circumstances, it would conduct a post-review
of the valuations to ensure they are reasonable and well-supported.
Bidders subdued at auction of 8 plots
Aug 22, 2008
Bidders subdued at auction of 8 plots
Only four residential 'infill' sites sold in auction held by SLA
By Joyce Teo, Property Correspondent
AN AUCTION of eight small plots of state land yesterday attracted 50
registered bidders and many more onlookers but only half the sites
were sold.
The subdued response reflects the mood in the property market, said
observers, and is in contrast to a similar auction last November when
all six plots offered were sold after brisk bidding.
Yesterday's sale was the second held so far by the Singapore Land
Authority (SLA), which is offloading residential 'infill' sites with
fresh 99-year leases.
These are vacant pockets of state land located in the midst of
established landed housing estates. They were either left untouched
by nearby developments or were once used for public purposes.
Knight Frank auctioneer Mary Sai, who conducted the auction, said
potential bidders were very cautious: 'We heard the interest there
but when they heard the starting bid, they refrained from bidding.'
Ms Sai said the bidders likely did not expect the opening price to be
so high while site constraints and high construction costs might be
dampening interest.
Take a site in Upper East Coast Road. It opened with a bid of $2.47
million or $334 per sq ft (psf) but there were no takers. It was
reintroduced later at a starting bid of $2.1 million and attracted
some bids but they failed to meet the reserve price and it was
passed.
SLA's reserve price, which is set by the chief valuer and not
revealed to bidders, is slightly below the opening bid.
But there were some bright spots. The biggest plot on the list - a
15,461 sq ft good-class bungalow site in Ridout Road - was the most
hotly contested property with 34 bids lodged by three hopefuls.
BreadTalk founder and chairman George Quek and his wife clinched the
site with a bid of $8.96 million or $579.55 psf. This was 22.6 per
cent above the opening bid of $7.31 million or $473 psf.
This site is right next to Mr Quek's home and the family had been
renting a portion of it for use as a garden for over two years.
Mr Quek said he will combine the land with his own.
The lowest-priced lot sold was a 4,720 sq ft site in Glasgow Road,
near Rosyth Road, which is suitable for a three-storey bungalow. Mr
Anthony Tan, 62, bought it for $710,000 or $150.40 psf - close to the
starting bid of $680,000 or $144 psf.
'It's where my wife used to live and my daughter was born,' said the
retiree. He will build a single- storey house on the site but will
continue to stay in his Serangoon Gardens house.
A 4,357 sq ft corner plot in Tanah Merah Kechil Road began with a bid
of $1.36 million or $312 psf before going to Mr Ng Kim Hoe for $1.51
million or $347 psf. He had only one competitor.
Ms Martha Lim, 31, who runs her family business Lim Seng Kok
Contractor, bought a 7,771 sq ft Namly Avenue plot for $2.63 million
or $338 psf.
The bidding opened at $2.55 million. Ms Lim said she may keep the
site for her own use or redevelop it for sale.
Yesterday, there were some bargain hunters among the crowd of about
200 at M Hotel. Others such as a resident in Ridout Road were there
to see if the plot in the street sold.
SLA may release the unsold sites again after researching price
levels.
Its deputy director of land sales, Mr Teo Jing Kok, said yesterday
that the agency would work with the chief valuer to see if the prices
are too high.
And there will be more of such auctions to come, he said. 'We are
looking at one or two land sale auctions a year, assuming there's no
downturn.'
Bidders subdued at auction of 8 plots
Only four residential 'infill' sites sold in auction held by SLA
By Joyce Teo, Property Correspondent
AN AUCTION of eight small plots of state land yesterday attracted 50
registered bidders and many more onlookers but only half the sites
were sold.
The subdued response reflects the mood in the property market, said
observers, and is in contrast to a similar auction last November when
all six plots offered were sold after brisk bidding.
Yesterday's sale was the second held so far by the Singapore Land
Authority (SLA), which is offloading residential 'infill' sites with
fresh 99-year leases.
These are vacant pockets of state land located in the midst of
established landed housing estates. They were either left untouched
by nearby developments or were once used for public purposes.
Knight Frank auctioneer Mary Sai, who conducted the auction, said
potential bidders were very cautious: 'We heard the interest there
but when they heard the starting bid, they refrained from bidding.'
Ms Sai said the bidders likely did not expect the opening price to be
so high while site constraints and high construction costs might be
dampening interest.
Take a site in Upper East Coast Road. It opened with a bid of $2.47
million or $334 per sq ft (psf) but there were no takers. It was
reintroduced later at a starting bid of $2.1 million and attracted
some bids but they failed to meet the reserve price and it was
passed.
SLA's reserve price, which is set by the chief valuer and not
revealed to bidders, is slightly below the opening bid.
But there were some bright spots. The biggest plot on the list - a
15,461 sq ft good-class bungalow site in Ridout Road - was the most
hotly contested property with 34 bids lodged by three hopefuls.
BreadTalk founder and chairman George Quek and his wife clinched the
site with a bid of $8.96 million or $579.55 psf. This was 22.6 per
cent above the opening bid of $7.31 million or $473 psf.
This site is right next to Mr Quek's home and the family had been
renting a portion of it for use as a garden for over two years.
Mr Quek said he will combine the land with his own.
The lowest-priced lot sold was a 4,720 sq ft site in Glasgow Road,
near Rosyth Road, which is suitable for a three-storey bungalow. Mr
Anthony Tan, 62, bought it for $710,000 or $150.40 psf - close to the
starting bid of $680,000 or $144 psf.
'It's where my wife used to live and my daughter was born,' said the
retiree. He will build a single- storey house on the site but will
continue to stay in his Serangoon Gardens house.
A 4,357 sq ft corner plot in Tanah Merah Kechil Road began with a bid
of $1.36 million or $312 psf before going to Mr Ng Kim Hoe for $1.51
million or $347 psf. He had only one competitor.
Ms Martha Lim, 31, who runs her family business Lim Seng Kok
Contractor, bought a 7,771 sq ft Namly Avenue plot for $2.63 million
or $338 psf.
The bidding opened at $2.55 million. Ms Lim said she may keep the
site for her own use or redevelop it for sale.
Yesterday, there were some bargain hunters among the crowd of about
200 at M Hotel. Others such as a resident in Ridout Road were there
to see if the plot in the street sold.
SLA may release the unsold sites again after researching price
levels.
Its deputy director of land sales, Mr Teo Jing Kok, said yesterday
that the agency would work with the chief valuer to see if the prices
are too high.
And there will be more of such auctions to come, he said. 'We are
looking at one or two land sale auctions a year, assuming there's no
downturn.'
Fannie, Freddie crisis deepens
Aug 22, 2008
Fannie, Freddie crisis deepens
With shares slumping, US govt stops insisting no rescue is needed
WASHINGTON: The United States Treasury has backed away from
assurances that there is no need to rescue Fannie Mae and Freddie
Mac, as the crisis surrounding the American mortgage finance giants
deepens, with their shares falling for a third day, the Financial
Times (FT) has reported.
Although it was granted new powers last month to prop the companies
up with a cash infusion, either through loans or by buying stock, the
Treasury had been adamant that it did not expect to use the new
authority.
On Wednesday, however, a Treasury spokesman declined to repeat that
assurance, FT reported yesterday on its website. Instead, she said
the Treasury was 'vigilantly' monitoring market developments and
was 'focused on efforts that will encourage market stability,
mortgage availability and protecting the taxpayer'.
While the companies continue to insist that their fundamental
finances are sound, investor confidence in Fannie Mae and Freddie Mac
has taken a pounding this week as speculation about a federal
government bailout gains pace in the news media and among market
analysts.
Shares of Fannie Mae and Freddie Mac tumbled more than 20 per cent on
Wednesday, hitting their lowest levels in nearly two decades, as
investors fled out of fear that a government initiative to save the
ailing mortgage giants could render their stock worthless.
The stock sell-off came a day after Freddie Mac was forced to pay an
unusually high interest rate on five-year notes to entice investors
to purchase its debt.
This week alone, both companies' shares have dropped by 44 per cent
in very heavy trading. In the past 12 months, Fannie Mae's market
value has plummeted 88 per cent, or US$34 billion (S$47.98 billion),
to US$4.73 billion. Freddie Mac's value has dropped by US$20 billion,
or 90 per cent, to $2.1 billion.
The companies have reported a combined US$14.9 billion in net losses
over the past year.
A growing chorus of industry analysts are predicting that the
government will have to intervene to prevent a further deterioration
of the firms, which own or guarantee half of the US' mortgage debt.
The two firms have been reeling as concerns mount that they may not
have enough capital to cover losses because of the rising number of
bad home loans. If Fannie Mae or Freddie Mac collapses, it may
cripple the US housing market, dealing a staggering blow to the wider
economy, and will saddle the federal government with massive debts if
it chooses to seize control of either firm.
Both companies say they have enough capital to weather the severe
downturn in the housing market.
Fannie, Freddie crisis deepens
With shares slumping, US govt stops insisting no rescue is needed
WASHINGTON: The United States Treasury has backed away from
assurances that there is no need to rescue Fannie Mae and Freddie
Mac, as the crisis surrounding the American mortgage finance giants
deepens, with their shares falling for a third day, the Financial
Times (FT) has reported.
Although it was granted new powers last month to prop the companies
up with a cash infusion, either through loans or by buying stock, the
Treasury had been adamant that it did not expect to use the new
authority.
On Wednesday, however, a Treasury spokesman declined to repeat that
assurance, FT reported yesterday on its website. Instead, she said
the Treasury was 'vigilantly' monitoring market developments and
was 'focused on efforts that will encourage market stability,
mortgage availability and protecting the taxpayer'.
While the companies continue to insist that their fundamental
finances are sound, investor confidence in Fannie Mae and Freddie Mac
has taken a pounding this week as speculation about a federal
government bailout gains pace in the news media and among market
analysts.
Shares of Fannie Mae and Freddie Mac tumbled more than 20 per cent on
Wednesday, hitting their lowest levels in nearly two decades, as
investors fled out of fear that a government initiative to save the
ailing mortgage giants could render their stock worthless.
The stock sell-off came a day after Freddie Mac was forced to pay an
unusually high interest rate on five-year notes to entice investors
to purchase its debt.
This week alone, both companies' shares have dropped by 44 per cent
in very heavy trading. In the past 12 months, Fannie Mae's market
value has plummeted 88 per cent, or US$34 billion (S$47.98 billion),
to US$4.73 billion. Freddie Mac's value has dropped by US$20 billion,
or 90 per cent, to $2.1 billion.
The companies have reported a combined US$14.9 billion in net losses
over the past year.
A growing chorus of industry analysts are predicting that the
government will have to intervene to prevent a further deterioration
of the firms, which own or guarantee half of the US' mortgage debt.
The two firms have been reeling as concerns mount that they may not
have enough capital to cover losses because of the rising number of
bad home loans. If Fannie Mae or Freddie Mac collapses, it may
cripple the US housing market, dealing a staggering blow to the wider
economy, and will saddle the federal government with massive debts if
it chooses to seize control of either firm.
Both companies say they have enough capital to weather the severe
downturn in the housing market.
Hersing, global property fund ink storage MOU
August 22, 2008
Hersing, global property fund ink storage MOU
It plans to expand self-storage business in region and S'pore
HERSING Corporation said yesterday that it has signed a non-binding
memorandum of understanding with a leading global real estate fund
for a proposed joint venture relating to Hersing's self-storage
business.
Hersing, through wholly owned subsidiary Storhub Self Storage,
manages and operates self-storage centres in five locations across
Singapore.
The company intends to expand the business throughout the island and
into regional countries.
'The proposed joint venture will allow the company to leverage on the
financial expertise, network and other resources of the real estate
fund for this intended expansion,' Hersing said in a statement.
It did not name the real estate fund.
Under the terms of the MOU, Storhub will transfer four properties -
25A Changi South Street 1, 743 Lorong 5 Toa Payoh, 615 Lorong 4 Toa
Payoh, and 15 Changi South Street 1 - to four Singapore-incorporated
asset-holding companies, which in turn will be beneficially owned by
an entity 80 per cent held by the global real estate fund and 20 per
cent by Hersing.
The real estate fund will also buy from Hersing a 20 per cent stake
in a company that will be set up to provide property management and
asset management services for the asset-holding companies.
Hersing said the deal will allow it to realise capital gains that
will enhance shareholder value.
Hersing, global property fund ink storage MOU
It plans to expand self-storage business in region and S'pore
HERSING Corporation said yesterday that it has signed a non-binding
memorandum of understanding with a leading global real estate fund
for a proposed joint venture relating to Hersing's self-storage
business.
Hersing, through wholly owned subsidiary Storhub Self Storage,
manages and operates self-storage centres in five locations across
Singapore.
The company intends to expand the business throughout the island and
into regional countries.
'The proposed joint venture will allow the company to leverage on the
financial expertise, network and other resources of the real estate
fund for this intended expansion,' Hersing said in a statement.
It did not name the real estate fund.
Under the terms of the MOU, Storhub will transfer four properties -
25A Changi South Street 1, 743 Lorong 5 Toa Payoh, 615 Lorong 4 Toa
Payoh, and 15 Changi South Street 1 - to four Singapore-incorporated
asset-holding companies, which in turn will be beneficially owned by
an entity 80 per cent held by the global real estate fund and 20 per
cent by Hersing.
The real estate fund will also buy from Hersing a 20 per cent stake
in a company that will be set up to provide property management and
asset management services for the asset-holding companies.
Hersing said the deal will allow it to realise capital gains that
will enhance shareholder value.
Budget hotel boss makes rich list
Aug 22, 2008
Budget hotel boss makes rich list
Chief of Fragrance chain debuts on Forbes' S'pore list at No.24
By Fiona Chan
BUDGET hotels and mid-range condominiums are hardly what one
associates with the rich and famous.
But they proved the key to wealth for Mr Koh Wee Meng, the chief of
Fragrance Group, which owns the chain of tourist-class Fragrance
hotels, as well as boutique property developer Fragrance Land.
Mr Koh debuted on Forbes magazine's list of Singapore's richest
people at No.24, propelled by a string of well-sold boutique condos
and revenue from Fragrance's 18 hotels islandwide. But Fragrance -
one of the few property companies that did better this year than last
year - was an exception to the real estate riches rule.
Some other property bigwigs found their fortunes halved as the market
slowed and stock prices tumbled. Upmarket developers such as SC
Global's Simon Cheong and Ho Bee Group's Chua Thian Poh suffered
especially from the downturn in the luxury homes segment.
Mr Cheong, who made his debut on the list last year, fell from 15th
place to 22nd as his net worth fell from US$480 million (S$680
million) to US$245 million. Mr Chua slipped from 13th position last
year to 20th this year after his fortune fell from US$500 million to
US$260 million.
Mr Cheng Wai Keung, chairman of property and retail group Wing Tai
Holdings, saw his wealth plunge to US$255 million from US$475 million
last year after the company's stock fell 50 per cent.
Generally, the rankings released yesterday remained much the same as
last year, particularly in the top spots.
Property magnate Ng Teng Fong, who heads Far East Organization, was
named Singapore's richest man for the second year in a row. His
fortune rose from US$6.7 billion last year to US$7 billion.
Mr Ng was again followed by the family of the late banker Khoo Teck
Puat, who are worth US$6.1 billion, up from US$5.7billion last year.
United Overseas Bank chairman Wee Cho Yaw also kept his third spot
with a family fortune valued at US$3.6 billion, from US$3.3 billion
last year.
In fifth and seventh places are Singapore's newest billionaires: Mr
Kuok Khoon Hong of Wilmar International and remisier-turned-investor
Peter Lim.
Mr Kuok, who founded Wilmar as a tiny palm oil outfit and turned it
into one of Asia's largest agribusinesses, saw his stock surge nearly
a third in the last year due, in part, to soaring palm oil prices.
Mr Lim, coincidentally, also got rich off Wilmar. He bet on Mr Kuok's
success with an early investment in the palm oil producer and is now
reaping the benefits.
Commodities also launched Mr Sunny Verghese, the chief of cashew and
cocoa trader Olam International, into the rich list for the first
time. He debuted in 39th place with a fortune of US$125 million.
Another new entry was Mr Wong Fong Fui, the chief executive of
Boustead Singapore, whose successful turnaround of one of Singapore's
oldest companies echoes his own classic rags-to-riches story.
Forbes said Mr Wong was born into a poor family and worked as a tree
tapper on a Malaysian rubber plantation when he was seven. He was
accepted into a secondary school after he wrote an essay, with the
following lines: 'I tap rubber trees. I see rubber trees in the
morning. I see rubber trees in the evening. I see rubber trees every
day, day in, day out. Rubber trees, rubber trees. I hate rubber
trees.'
As always, shipping magnates sailed smoothly into the wealth
rankings. In the top 20 alone were Labroy Marine's Tan Boy Tee,
Yantai Raffles' Brian Chang, Pacific International Lines' Chang Yun
Chung, Singapore Shipping Corp's Ow Chio Kiat and Ezra Holdings' Lee
Kian Soo.
Notable dropouts this year include fashion entrepreneur-turned-high-
end hotelier Christina Ong, wife of tycoon Ong Beng Seng. Her fortune
was dragged down by the falling stock price of bag maker Mulberry, in
which she has a stake.
After her removal, only three women remain on the list: Ms Olivia
Lum, founder of water treatment firm Hyflux; Ms Vivian Chandran, the
widow of energy firm Chemoil founder Robert Chandran; and Mrs
Margaret Lien, the widow of banker Lien Ying Chow. The total net
worth of the richest 40 remained at US$32 billion.
Budget hotel boss makes rich list
Chief of Fragrance chain debuts on Forbes' S'pore list at No.24
By Fiona Chan
BUDGET hotels and mid-range condominiums are hardly what one
associates with the rich and famous.
But they proved the key to wealth for Mr Koh Wee Meng, the chief of
Fragrance Group, which owns the chain of tourist-class Fragrance
hotels, as well as boutique property developer Fragrance Land.
Mr Koh debuted on Forbes magazine's list of Singapore's richest
people at No.24, propelled by a string of well-sold boutique condos
and revenue from Fragrance's 18 hotels islandwide. But Fragrance -
one of the few property companies that did better this year than last
year - was an exception to the real estate riches rule.
Some other property bigwigs found their fortunes halved as the market
slowed and stock prices tumbled. Upmarket developers such as SC
Global's Simon Cheong and Ho Bee Group's Chua Thian Poh suffered
especially from the downturn in the luxury homes segment.
Mr Cheong, who made his debut on the list last year, fell from 15th
place to 22nd as his net worth fell from US$480 million (S$680
million) to US$245 million. Mr Chua slipped from 13th position last
year to 20th this year after his fortune fell from US$500 million to
US$260 million.
Mr Cheng Wai Keung, chairman of property and retail group Wing Tai
Holdings, saw his wealth plunge to US$255 million from US$475 million
last year after the company's stock fell 50 per cent.
Generally, the rankings released yesterday remained much the same as
last year, particularly in the top spots.
Property magnate Ng Teng Fong, who heads Far East Organization, was
named Singapore's richest man for the second year in a row. His
fortune rose from US$6.7 billion last year to US$7 billion.
Mr Ng was again followed by the family of the late banker Khoo Teck
Puat, who are worth US$6.1 billion, up from US$5.7billion last year.
United Overseas Bank chairman Wee Cho Yaw also kept his third spot
with a family fortune valued at US$3.6 billion, from US$3.3 billion
last year.
In fifth and seventh places are Singapore's newest billionaires: Mr
Kuok Khoon Hong of Wilmar International and remisier-turned-investor
Peter Lim.
Mr Kuok, who founded Wilmar as a tiny palm oil outfit and turned it
into one of Asia's largest agribusinesses, saw his stock surge nearly
a third in the last year due, in part, to soaring palm oil prices.
Mr Lim, coincidentally, also got rich off Wilmar. He bet on Mr Kuok's
success with an early investment in the palm oil producer and is now
reaping the benefits.
Commodities also launched Mr Sunny Verghese, the chief of cashew and
cocoa trader Olam International, into the rich list for the first
time. He debuted in 39th place with a fortune of US$125 million.
Another new entry was Mr Wong Fong Fui, the chief executive of
Boustead Singapore, whose successful turnaround of one of Singapore's
oldest companies echoes his own classic rags-to-riches story.
Forbes said Mr Wong was born into a poor family and worked as a tree
tapper on a Malaysian rubber plantation when he was seven. He was
accepted into a secondary school after he wrote an essay, with the
following lines: 'I tap rubber trees. I see rubber trees in the
morning. I see rubber trees in the evening. I see rubber trees every
day, day in, day out. Rubber trees, rubber trees. I hate rubber
trees.'
As always, shipping magnates sailed smoothly into the wealth
rankings. In the top 20 alone were Labroy Marine's Tan Boy Tee,
Yantai Raffles' Brian Chang, Pacific International Lines' Chang Yun
Chung, Singapore Shipping Corp's Ow Chio Kiat and Ezra Holdings' Lee
Kian Soo.
Notable dropouts this year include fashion entrepreneur-turned-high-
end hotelier Christina Ong, wife of tycoon Ong Beng Seng. Her fortune
was dragged down by the falling stock price of bag maker Mulberry, in
which she has a stake.
After her removal, only three women remain on the list: Ms Olivia
Lum, founder of water treatment firm Hyflux; Ms Vivian Chandran, the
widow of energy firm Chemoil founder Robert Chandran; and Mrs
Margaret Lien, the widow of banker Lien Ying Chow. The total net
worth of the richest 40 remained at US$32 billion.
CityDev issuing 1st tranche of Islamic bonds by year end
August 22, 2008
CityDev issuing 1st tranche of Islamic bonds by year end
By UMA SHANKARI
CITY Developments said yesterday that it will issue the first tranche
of Islamic bonds by the end of the year, as it looks to build up its
war chest.
Singapore's second-largest developer announced last week that it
plans to sell $1 billion of Islamic multi-currency medium-term notes,
arranged by Malaysian bank CIMB. The deal will be Singapore's first
Islamic unsecured financing arrangement.
CIMB Group is listed on the Malaysian stock exchange through
Bumiputra-Commerce Holdings.
'We hope to do the first tranche before year-end, subject to market
conditions,' CityDev's chief financial officer Goh Ann Nee said at a
briefing yesterday.
CityDev said that it has not decided on the size or the coupon rate
of the first tranche of notes. But management has indicated that the
rates will be competitive and that it expects to see good
institutional demand.
CityDev will use the funds to buy land or buildings, and has said
that it will inject its own properties, freeing funds for new
investments.
Islamic financing will allow CityDev to tap a broader base of
investors, says managing director Kwek Leng Joo.
'Many are curious why City Developments is enhancing its war chest,'
Mr Kwek said. 'We always believe that in the midst of any economic
slowdown there are tremendous opportunities.'
CityDev did not say which markets it is interested in. But management
has guided that it will look at distressed assets in the region,
including Vietnam, China, the Middle-East and Russia, CIMB analyst
Donald Chua said in a note yesterday.
'Given restrictions on the use of syariah/Islamic products, we
believe proceeds will be used for investments primarily in
residential property and commercial (office) investments,' he added.
CIMB Investment Bank head of debt capital markets Thomas Meow said
that the bank has been in discussions with other Singapore firms to
set up syariah-compliant financing.
Vince Cook, chief executive of DBS unit Islamic Bank of Asia, told
Reuters: 'Given the ongoing difficult conventional market conditions,
it is not surprising that issuers are looking at ways to open up new
pools of investors.'
CityDev shares gained six cents to close at $10.20 yesterday.
CityDev issuing 1st tranche of Islamic bonds by year end
By UMA SHANKARI
CITY Developments said yesterday that it will issue the first tranche
of Islamic bonds by the end of the year, as it looks to build up its
war chest.
Singapore's second-largest developer announced last week that it
plans to sell $1 billion of Islamic multi-currency medium-term notes,
arranged by Malaysian bank CIMB. The deal will be Singapore's first
Islamic unsecured financing arrangement.
CIMB Group is listed on the Malaysian stock exchange through
Bumiputra-Commerce Holdings.
'We hope to do the first tranche before year-end, subject to market
conditions,' CityDev's chief financial officer Goh Ann Nee said at a
briefing yesterday.
CityDev said that it has not decided on the size or the coupon rate
of the first tranche of notes. But management has indicated that the
rates will be competitive and that it expects to see good
institutional demand.
CityDev will use the funds to buy land or buildings, and has said
that it will inject its own properties, freeing funds for new
investments.
Islamic financing will allow CityDev to tap a broader base of
investors, says managing director Kwek Leng Joo.
'Many are curious why City Developments is enhancing its war chest,'
Mr Kwek said. 'We always believe that in the midst of any economic
slowdown there are tremendous opportunities.'
CityDev did not say which markets it is interested in. But management
has guided that it will look at distressed assets in the region,
including Vietnam, China, the Middle-East and Russia, CIMB analyst
Donald Chua said in a note yesterday.
'Given restrictions on the use of syariah/Islamic products, we
believe proceeds will be used for investments primarily in
residential property and commercial (office) investments,' he added.
CIMB Investment Bank head of debt capital markets Thomas Meow said
that the bank has been in discussions with other Singapore firms to
set up syariah-compliant financing.
Vince Cook, chief executive of DBS unit Islamic Bank of Asia, told
Reuters: 'Given the ongoing difficult conventional market conditions,
it is not surprising that issuers are looking at ways to open up new
pools of investors.'
CityDev shares gained six cents to close at $10.20 yesterday.
Stanchart launches transparent home loan pegged to Sibor
August 22, 2008
Stanchart launches transparent home loan pegged to Sibor
Package has offset feature - interest earned on deposit can cut loan
interest
By LYNETTE KHOO
STANDARD Chartered Bank has upped the ante in the mortgage market
here with a new transparent home loan pegged to the Singapore
interbank offered rate (Sibor). The loan comes with an offset feature
where customers can use the interest earned on their deposits to
reduce the interest payable on their home loan.
MortgageOne Sibor loans will be priced at 0.8 per cent a year above
the three-month Sibor for the first three years.
Customers enjoy the same interest rates as their mortgage loan on two-
thirds of the deposits linked to MortgageOne Sibor, subject to a
maximum of their loan principal outstanding.
The remainder of the deposits will enjoy an interest rate of 0.5 per
cent a year.
By paying less interest every month, customers can repay their
mortgage loan faster compared with a traditional mortgage loan.
Under this loan package, customers can put any surplus funds in their
current account to reduce interest costs.
They also have the flexibility to withdraw these funds at any time
and capitalise on investment opportunities.
'MortgageOne Sibor is designed for all customers,' said Dennis Khoo,
general manager of lending at Standard Chartered Bank Singapore.
'For example, for a $500,000 mortgage loan with a 25-year tenure, a
customer can reduce interest payments by 20 per cent, just by saving
$500 every month.'
DBS Bank said it was the first to offer Sibor- pegged interest rates
early last year, after it launched the CPF ordinary account pegged
rates under its flagship POSB Home Ideal product in November 2006.
Under the DBS Managed Mortgage, customers can choose between the
three-month and 12-month Sibor benchmark and the loans are priced
between 0.8 and 1.25 per cent a year above the benchmark, depending
on the period of commitment.
Other big players in the home loan market here, however, do not seem
to be pressured to launch Sibor- linked loan packages as yet.
'There are many different housing loan packages in the market today.
Ultimately, what matters to the home loan borrower is that he is
given a choice of which home loan package best suits his needs and
his reading of the interest rates trend,' said Gregory Chan, head of
secured lending at OCBC Bank.
The bank currently offers fixed and variable packages as well as the
swap offer rate package, which is a customised home loan with
interest rates that are pegged to the three-month Singapore dollar
swap offered rates (SOR), starting from one per cent above SOR for
the first two years and 1.25 per cent above SOR thereafter.
Maybank told BT yesterday it does not have any immediate plans for
Sibor- pegged home loans at the moment.
Its home loan single board rate stands at 3.75 per cent a year
currently and is benchmarked against interbank rates, market
conditions, as well as business costs.
Stanchart launches transparent home loan pegged to Sibor
Package has offset feature - interest earned on deposit can cut loan
interest
By LYNETTE KHOO
STANDARD Chartered Bank has upped the ante in the mortgage market
here with a new transparent home loan pegged to the Singapore
interbank offered rate (Sibor). The loan comes with an offset feature
where customers can use the interest earned on their deposits to
reduce the interest payable on their home loan.
MortgageOne Sibor loans will be priced at 0.8 per cent a year above
the three-month Sibor for the first three years.
Customers enjoy the same interest rates as their mortgage loan on two-
thirds of the deposits linked to MortgageOne Sibor, subject to a
maximum of their loan principal outstanding.
The remainder of the deposits will enjoy an interest rate of 0.5 per
cent a year.
By paying less interest every month, customers can repay their
mortgage loan faster compared with a traditional mortgage loan.
Under this loan package, customers can put any surplus funds in their
current account to reduce interest costs.
They also have the flexibility to withdraw these funds at any time
and capitalise on investment opportunities.
'MortgageOne Sibor is designed for all customers,' said Dennis Khoo,
general manager of lending at Standard Chartered Bank Singapore.
'For example, for a $500,000 mortgage loan with a 25-year tenure, a
customer can reduce interest payments by 20 per cent, just by saving
$500 every month.'
DBS Bank said it was the first to offer Sibor- pegged interest rates
early last year, after it launched the CPF ordinary account pegged
rates under its flagship POSB Home Ideal product in November 2006.
Under the DBS Managed Mortgage, customers can choose between the
three-month and 12-month Sibor benchmark and the loans are priced
between 0.8 and 1.25 per cent a year above the benchmark, depending
on the period of commitment.
Other big players in the home loan market here, however, do not seem
to be pressured to launch Sibor- linked loan packages as yet.
'There are many different housing loan packages in the market today.
Ultimately, what matters to the home loan borrower is that he is
given a choice of which home loan package best suits his needs and
his reading of the interest rates trend,' said Gregory Chan, head of
secured lending at OCBC Bank.
The bank currently offers fixed and variable packages as well as the
swap offer rate package, which is a customised home loan with
interest rates that are pegged to the three-month Singapore dollar
swap offered rates (SOR), starting from one per cent above SOR for
the first two years and 1.25 per cent above SOR thereafter.
Maybank told BT yesterday it does not have any immediate plans for
Sibor- pegged home loans at the moment.
Its home loan single board rate stands at 3.75 per cent a year
currently and is benchmarked against interbank rates, market
conditions, as well as business costs.
Two-tier test system raises standards of estate agency industry
Aug 22, 2008
Two-tier test system raises standards of estate agency industry
WE REFER to the letter 'HDB resale net services open to abuse' by Mr
Steven Lau last Saturday. We would like to take this opportunity to
clarify the misconceptions about the SAEA (Singapore Accredited
Estate Agencies) accreditation schemes.
The SAEA scheme was launched in November 2005 with the objective of
raising the level of professionalism in the estate agency industry by
getting agencies and agents to be accredited.
A time frame of three years was proposed so that agents would have
the opportunity to upgrade themselves during that period. The
accreditation requires agencies to have a certain percentage of their
agents pass the Common Examination for House Agents (Ceha), starting
with 40 per cent in 2006, 60 per cent last year, 80 per cent this
year and 100 per cent next year.
To support the SAEA accreditation scheme, the HDB has kindly provided
the use of the HDB resale net services to accredited agencies,
bearing in mind that there are agents with the accredited agencies
who do not possess the Ceha.
During the implementation of the scheme, feedback from the industry
and agency bosses was obtained. One of the feedback given was to
introduce a two-tiered accreditation scheme, one for agents who
intend to practise as a principal licensee, and another for
salespersons on the ground, who deal with the buyer and seller.
This two-tiered scheme is not uncommon in other countries. Hence, the
SAEA salespersons accreditation was announced in April this year.
Under the two-tiered scheme, agents can either take the Ceha or the
CES (Common Examination for Salespersons) to be accredited as an
accredited agent or salesperson.
The syllabi for the CES examination are as extensive as the Ceha
except topics like those that deal with the management of the agency,
such as business operations and human resources management, are
excluded. Those taking the CES, for instance, are required to
understand the procedures to carry out HDB resale transactions, to be
aware of the HDB policies and familiar with the resale checklist,
various upgrading programmes and so on in order to pass.
The possession of Ceha or CES is only one of the requirements for
accreditation. All accredited agents or salespersons are required to
comply with a code of ethics and conduct, and will be subject to
disciplinary action if they misconduct themselves.
We urge Mr Lau or the public who is aware of any abuse of the HDB
resale net services to inform us so that appropriate disciplinary
action can be taken against our accredited agencies.
The two-tier system is a good system to exercise control on the
estate agency industry where there are close to 20,000 agents who do
not even have a basic qualification and understanding of real estate
and property transactions.
We urge the general public to deal with accredited agents or
salespersons in order to protect their own interests.
Wilson Lim
Executive Director
Singapore Accredited Estate Agencies (SAEA)
Two-tier test system raises standards of estate agency industry
WE REFER to the letter 'HDB resale net services open to abuse' by Mr
Steven Lau last Saturday. We would like to take this opportunity to
clarify the misconceptions about the SAEA (Singapore Accredited
Estate Agencies) accreditation schemes.
The SAEA scheme was launched in November 2005 with the objective of
raising the level of professionalism in the estate agency industry by
getting agencies and agents to be accredited.
A time frame of three years was proposed so that agents would have
the opportunity to upgrade themselves during that period. The
accreditation requires agencies to have a certain percentage of their
agents pass the Common Examination for House Agents (Ceha), starting
with 40 per cent in 2006, 60 per cent last year, 80 per cent this
year and 100 per cent next year.
To support the SAEA accreditation scheme, the HDB has kindly provided
the use of the HDB resale net services to accredited agencies,
bearing in mind that there are agents with the accredited agencies
who do not possess the Ceha.
During the implementation of the scheme, feedback from the industry
and agency bosses was obtained. One of the feedback given was to
introduce a two-tiered accreditation scheme, one for agents who
intend to practise as a principal licensee, and another for
salespersons on the ground, who deal with the buyer and seller.
This two-tiered scheme is not uncommon in other countries. Hence, the
SAEA salespersons accreditation was announced in April this year.
Under the two-tiered scheme, agents can either take the Ceha or the
CES (Common Examination for Salespersons) to be accredited as an
accredited agent or salesperson.
The syllabi for the CES examination are as extensive as the Ceha
except topics like those that deal with the management of the agency,
such as business operations and human resources management, are
excluded. Those taking the CES, for instance, are required to
understand the procedures to carry out HDB resale transactions, to be
aware of the HDB policies and familiar with the resale checklist,
various upgrading programmes and so on in order to pass.
The possession of Ceha or CES is only one of the requirements for
accreditation. All accredited agents or salespersons are required to
comply with a code of ethics and conduct, and will be subject to
disciplinary action if they misconduct themselves.
We urge Mr Lau or the public who is aware of any abuse of the HDB
resale net services to inform us so that appropriate disciplinary
action can be taken against our accredited agencies.
The two-tier system is a good system to exercise control on the
estate agency industry where there are close to 20,000 agents who do
not even have a basic qualification and understanding of real estate
and property transactions.
We urge the general public to deal with accredited agents or
salespersons in order to protect their own interests.
Wilson Lim
Executive Director
Singapore Accredited Estate Agencies (SAEA)
Test ensures housing agents are more qualified
Aug 22, 2008
Test ensures housing agents are more qualified
WE REFER to the letter by Mr Steven Lau last Saturday on the SAEA salesperson accreditation.
The SAEA scheme was introduced to accredit both agencies and agents. The original scheme requires agents who wish to practise as principal licence holders and bosses of agencies to pass the Common Examination for House Agents (Ceha).
The recent salesperson accreditation provides for a two-tiered accreditation for other agents - basically salespersons who do not wish to become agency bosses, but would like to continue working as agents. They are those that deal with the buyers and sellers on the ground. Currently not many of these salespersons have basic qualifications.
The Association of Singapore Estate Agencies is one of the bodies that advocates the introduction of the salespersons accreditation for all practising salespersons to pass the Common Examination for Salesperson (CES) as an entry point.
This move will help to ensure that henceforth, anyone claiming to practise house agency is suitably qualified. With the accreditation, recalcitrant salespersons will be hauled up and reprimanded under the scheme.
The CES will, therefore, not only raise the level of professionalism in the real estate agency industry, but will also provide protection for consumers.
David Ong
President
Association of Singapore Estate Agencies
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Test ensures housing agents are more qualified
WE REFER to the letter by Mr Steven Lau last Saturday on the SAEA salesperson accreditation.
The SAEA scheme was introduced to accredit both agencies and agents. The original scheme requires agents who wish to practise as principal licence holders and bosses of agencies to pass the Common Examination for House Agents (Ceha).
The recent salesperson accreditation provides for a two-tiered accreditation for other agents - basically salespersons who do not wish to become agency bosses, but would like to continue working as agents. They are those that deal with the buyers and sellers on the ground. Currently not many of these salespersons have basic qualifications.
The Association of Singapore Estate Agencies is one of the bodies that advocates the introduction of the salespersons accreditation for all practising salespersons to pass the Common Examination for Salesperson (CES) as an entry point.
This move will help to ensure that henceforth, anyone claiming to practise house agency is suitably qualified. With the accreditation, recalcitrant salespersons will be hauled up and reprimanded under the scheme.
The CES will, therefore, not only raise the level of professionalism in the real estate agency industry, but will also provide protection for consumers.
David Ong
President
Association of Singapore Estate Agencies
Copyright © 2007 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access
Thursday, August 21, 2008
CapitaLand going ahead with 2nd Malaysian Reit
August 21, 2008
CapitaLand going ahead with 2nd Malaysian Reit
Latest offering will comprise 3 malls worth RM2b: chief investment
officer
By PAULINE NG IN KUALA LUMPUR
CAPITALAND will list its second Malaysian real estate investment
trust (Reit) this year, barring unfavourable market conditions, the
company's chief investment officer Kee Teck Koon said yesterday.
The Reit will initially comprise three shopping malls worth RM2
billion (S$849 million), he said. CapitaLand will gauge market
sentiment to ensure the launch is timed 'so it can capture the
imagination of investors'.
At a news briefing after the topping-out ceremony for Kuala Lumpur's
Tower D, which is owned jointly by CapitaLand and Malaysia's Quill
Group, Mr Kee said that the listing plan for the second Reit has not
changed. 'The intention is very clear,' he said.
Penang's Gurney Plaza and two malls in the Klang Valley - Mines
Shopping Fair and Sungei Wang Plaza - will form the Reit's initial
core assets. Mr Kee would not say who CapitaLand's local partner in
the Reit would be.
The company's reservations about market sentiment are warranted. The
last three listings on Bursa Malaysia have debuted below their offer
price. In the latest, shares of Perwaja Steel yesterday opened 10 sen
short of the RM2.90 offer price before closing at RM2.48.
Although Malaysian Reits are seen as defensive, interest among
foreign investors has been dampened by relatively high withholding
tax.
Still, some investors continue to be attracted to local real estate
because its comparative pricing ought to allow for greater capital
appreciation down the road.
For example, the Malaysia Commercial Development Fund (MCDF) - a
US$270 million closed-end private equity investment fund launched
jointly by CapitaLand and Maybank in March 2007 with a gross
development value of US$1 billion - is fully invested, CapitaLand
Commercial chief executive Wen Khai Meng said yesterday.
CapitaLand 'may consider subsequent funds' focused on residential,
commercial and retail segments, he said.
MCDF provides a pipeline of projects to be injected into Quill Capita
Trust - a commercial Reit jointly listed by Quill and CapitaLand in
January 2007 with an initial fund size of RM276 million, which has
grown to over RM800 million.
Tower D in the KL Sentral area will allow them to further leverage on
strong demand for commercial property and is likely to be injected
into the Reit.
To be completed by January, the Grade A building, which has a net
lettable area of 355,000 square feet, has a confirmed tenancy rate of
65 per cent and is expected to be fully tenanted by March.
The 29-storey office block with a six-storey retail podium has
attracted several multinational and big local companies as tenants,
said Quill director Michael Ong.
Rental rates are around RM6 to RM7 per square foot and a number of
tenants have signed three-plus-three-year leases, he said.
CapitaLand, through MCDF, owns 40 per cent of Tower D developer Quill
Realty.
CapitaLand going ahead with 2nd Malaysian Reit
Latest offering will comprise 3 malls worth RM2b: chief investment
officer
By PAULINE NG IN KUALA LUMPUR
CAPITALAND will list its second Malaysian real estate investment
trust (Reit) this year, barring unfavourable market conditions, the
company's chief investment officer Kee Teck Koon said yesterday.
The Reit will initially comprise three shopping malls worth RM2
billion (S$849 million), he said. CapitaLand will gauge market
sentiment to ensure the launch is timed 'so it can capture the
imagination of investors'.
At a news briefing after the topping-out ceremony for Kuala Lumpur's
Tower D, which is owned jointly by CapitaLand and Malaysia's Quill
Group, Mr Kee said that the listing plan for the second Reit has not
changed. 'The intention is very clear,' he said.
Penang's Gurney Plaza and two malls in the Klang Valley - Mines
Shopping Fair and Sungei Wang Plaza - will form the Reit's initial
core assets. Mr Kee would not say who CapitaLand's local partner in
the Reit would be.
The company's reservations about market sentiment are warranted. The
last three listings on Bursa Malaysia have debuted below their offer
price. In the latest, shares of Perwaja Steel yesterday opened 10 sen
short of the RM2.90 offer price before closing at RM2.48.
Although Malaysian Reits are seen as defensive, interest among
foreign investors has been dampened by relatively high withholding
tax.
Still, some investors continue to be attracted to local real estate
because its comparative pricing ought to allow for greater capital
appreciation down the road.
For example, the Malaysia Commercial Development Fund (MCDF) - a
US$270 million closed-end private equity investment fund launched
jointly by CapitaLand and Maybank in March 2007 with a gross
development value of US$1 billion - is fully invested, CapitaLand
Commercial chief executive Wen Khai Meng said yesterday.
CapitaLand 'may consider subsequent funds' focused on residential,
commercial and retail segments, he said.
MCDF provides a pipeline of projects to be injected into Quill Capita
Trust - a commercial Reit jointly listed by Quill and CapitaLand in
January 2007 with an initial fund size of RM276 million, which has
grown to over RM800 million.
Tower D in the KL Sentral area will allow them to further leverage on
strong demand for commercial property and is likely to be injected
into the Reit.
To be completed by January, the Grade A building, which has a net
lettable area of 355,000 square feet, has a confirmed tenancy rate of
65 per cent and is expected to be fully tenanted by March.
The 29-storey office block with a six-storey retail podium has
attracted several multinational and big local companies as tenants,
said Quill director Michael Ong.
Rental rates are around RM6 to RM7 per square foot and a number of
tenants have signed three-plus-three-year leases, he said.
CapitaLand, through MCDF, owns 40 per cent of Tower D developer Quill
Realty.
CIMB bags job for CDL sukuk issue
August 21, 2008
CIMB bags job for CDL sukuk issue
(KUALA LUMPUR) CIMB Group has won the mandate to arrange a $1 billion
Islamic bond issue for Singapore-listed property developer City
Developments Ltd (CDL), according to a report in Malaysia's Business
Times.
It will be Singapore's first sukuk-Ijarah unsecured financing
arrangement by a company, the paper pointed out.
A signing ceremony between CIMB Group unit CIMB-GK Securities Pte Ltd
and CDL is expected to be held this week in Singapore.
CDL is the property arm of Hong Leong Group Singapore.
The deal is significant for CIMB as it comes at a time when capital
market activities at home and in the region are slowing.
'This (new mandate) certainly helps it cushion some of the downside
arising in the debt market. It also highlights the competitive edge
that CIMB has over some global investment banks,' said an analyst
from a foreign research house in Kuala Lumpur.
CIMB is part of Malaysia's second largest banking group, Bumiputra-
Commerce Holdings Bhd, which last week reported a 7 per cent decline
in half-year net profit because of weaker capital markets.
CIMB group chief executive Nazir Razak had said at a results briefing
that he expects the weak markets to persist in the second half of the
year.
CDL, which is Singapore's second largest developer, said in a
statement last Thursday that it plans to make use of the $1 billion
Islamic multi-currency medium-term notes programme to tap new markets
and investors.
'This programme will provide the group with a diversified,
alternative and non-traditional financing stream to further enhance
its war chest,' executive chairman Kwek Leng Beng said.
It is understood that CDL's sukuk-Ijarah is expected to be listed on
the Singapore stock exchange sometime in the fourth quarter.
CIMB bags job for CDL sukuk issue
(KUALA LUMPUR) CIMB Group has won the mandate to arrange a $1 billion
Islamic bond issue for Singapore-listed property developer City
Developments Ltd (CDL), according to a report in Malaysia's Business
Times.
It will be Singapore's first sukuk-Ijarah unsecured financing
arrangement by a company, the paper pointed out.
A signing ceremony between CIMB Group unit CIMB-GK Securities Pte Ltd
and CDL is expected to be held this week in Singapore.
CDL is the property arm of Hong Leong Group Singapore.
The deal is significant for CIMB as it comes at a time when capital
market activities at home and in the region are slowing.
'This (new mandate) certainly helps it cushion some of the downside
arising in the debt market. It also highlights the competitive edge
that CIMB has over some global investment banks,' said an analyst
from a foreign research house in Kuala Lumpur.
CIMB is part of Malaysia's second largest banking group, Bumiputra-
Commerce Holdings Bhd, which last week reported a 7 per cent decline
in half-year net profit because of weaker capital markets.
CIMB group chief executive Nazir Razak had said at a results briefing
that he expects the weak markets to persist in the second half of the
year.
CDL, which is Singapore's second largest developer, said in a
statement last Thursday that it plans to make use of the $1 billion
Islamic multi-currency medium-term notes programme to tap new markets
and investors.
'This programme will provide the group with a diversified,
alternative and non-traditional financing stream to further enhance
its war chest,' executive chairman Kwek Leng Beng said.
It is understood that CDL's sukuk-Ijarah is expected to be listed on
the Singapore stock exchange sometime in the fourth quarter.
Key Japan real estate sector seen tripling
August 21, 2008
Key Japan real estate sector seen tripling
Logistics property market investments may grow 3-fold in a few years:
LaSalle
(TOKYO) Japan's market for investment in logistics real estate - such
as warehouses, distribution centres and ports - is seen growing
threefold within a few years as more players enter a sector
considered stable even in an economic slowdown, an executive of
LaSalle Investment Management said.
The real estate securitisation investment market was about 320
billion yen (S$4 billion) in 2007, accounting for only 3.8 per cent
of Japan's total Reit (real estate investment trust) investment.
But LaSalle, which manages US$54 billion assets in global real estate
markets, sees such logistics-area investment accounting for more than
10 per cent of total J-Reit investment in the near future, executive
officer Yosuke Yoshikawa told a Tokyo seminar.
'Logistics property investment is still immature here for reasons
such as a dearth of investment opportunities and limited information
disclosure . . . maybe that's why only one J-Reit is solely focusing
on the logistics field,' Mr Yoshikawa said.
'But considering its big and established presence in Europe,
especially in Britain, and the relative strength of the economic
slowdown, logistics real estate investment has a big growth
potential,' he said.
After raising 360 billion yen, the Tokyo-based investor
launched 'LaSalle Japan Logistics Fund Two' last year.
LaSalle still has some 280 billion yen left to invest until 2010
after spending 80 billion yen since the fund's launch, another
executive told Reuters after the seminar.
A planned investment would include development of multi-purpose
logistics centres and 'off-balance- sheet' support for logistics
companies.
LaSalle is a unit of Chicago-based property services company Jones
Lang LaSalle Group which manages property investments of
institutional investors such as pension funds and companies.
Tokyo-based LaSalle bought out an asset management company in 2007
and injected fresh capital into a Reit that has since been renamed
LaSalle Japan Reit Inc.
LaSalle Japan Reit closed down 12.3 per cent at 191,200 yen
yesterday, while the Tokyo Stock Exchange's Reit index shed 0.3 per
cent to 1,269.54.
Key Japan real estate sector seen tripling
Logistics property market investments may grow 3-fold in a few years:
LaSalle
(TOKYO) Japan's market for investment in logistics real estate - such
as warehouses, distribution centres and ports - is seen growing
threefold within a few years as more players enter a sector
considered stable even in an economic slowdown, an executive of
LaSalle Investment Management said.
The real estate securitisation investment market was about 320
billion yen (S$4 billion) in 2007, accounting for only 3.8 per cent
of Japan's total Reit (real estate investment trust) investment.
But LaSalle, which manages US$54 billion assets in global real estate
markets, sees such logistics-area investment accounting for more than
10 per cent of total J-Reit investment in the near future, executive
officer Yosuke Yoshikawa told a Tokyo seminar.
'Logistics property investment is still immature here for reasons
such as a dearth of investment opportunities and limited information
disclosure . . . maybe that's why only one J-Reit is solely focusing
on the logistics field,' Mr Yoshikawa said.
'But considering its big and established presence in Europe,
especially in Britain, and the relative strength of the economic
slowdown, logistics real estate investment has a big growth
potential,' he said.
After raising 360 billion yen, the Tokyo-based investor
launched 'LaSalle Japan Logistics Fund Two' last year.
LaSalle still has some 280 billion yen left to invest until 2010
after spending 80 billion yen since the fund's launch, another
executive told Reuters after the seminar.
A planned investment would include development of multi-purpose
logistics centres and 'off-balance- sheet' support for logistics
companies.
LaSalle is a unit of Chicago-based property services company Jones
Lang LaSalle Group which manages property investments of
institutional investors such as pension funds and companies.
Tokyo-based LaSalle bought out an asset management company in 2007
and injected fresh capital into a Reit that has since been renamed
LaSalle Japan Reit Inc.
LaSalle Japan Reit closed down 12.3 per cent at 191,200 yen
yesterday, while the Tokyo Stock Exchange's Reit index shed 0.3 per
cent to 1,269.54.
Lobbies in New York shedding their greenery
August 21, 2008
Lobbies in New York shedding their greenery
(NEW YORK) For decades, it has been practically an unwritten rule of
office building design that a high-end building should have lushly
landscaped lobbies or atriums. The forest's worth of magnolia, pear
and eucalyptus placed inside the Ford Foundation building in 1967
perhaps kicked off the trend, which culminated in the late 1980s when
the World Financial Center decorated its Winter Garden with rows of
soaring palms.
Today, though, tastes seem to be undergoing a change, with owners
seeking a leaner less-is-more look for their lobbies where the only
touches of greenery are often a few cut flowers in a security desk
vase.
Plants are also less common now in upstairs hallways and offices,
according to landlords, property managers, brokers and landscapers,
as tenants take less space than in decades past. With the smaller
footprints, they tend to use flora sparingly.
While more buildings are planting their roofs with grass, trees or
shrubs, the interior landscaping industry finds itself in a difficult
place, professionals say.
'We were very lucky before, because everybody wanted plants, and lots
of them,' said John Mini, a landscaper in Rockland County since 1973.
His work included rebuilding the Winter Garden, where 16 palms had to
be replaced after the Sept 11 attacks. Twenty years ago, he
estimates, 80 per cent of all New York City office building lobbies
were landscaped; today, he says, only about half are. 'It's all
changing, and unless we keep up, we will be in trouble,' he said.
Some notable new high-rises have opted for plantless lobbies. These
include the IAC Building, designed by Frank Gehry in West Chelsea;
and One Bryant Park, the Bank of America tower in Midtown developed
by the Durst Organization, where tenants already occupy the lower
half of the building.
Next year, One Bryant Park will add an urban garden room at the south-
west corner of the Avenue of the Americas and 43rd Street, which will
feature an enclosed public space with plantings and benches
accessible from the sidewalk, but separated from the lobby by a wall,
according to the Durst Organization.
Retrofitted buildings also often tend to be less leafy, like 1330
Avenue of the Americas, a 40-storey glass-and-steel high-rise at West
54th Street owned by the Macklowe Organization that is opening this
week after a US$30 million nine-month renovation.
Within the lobby, gone are the '80s-style planters with funky
curves', the focal point has become blue chairs and a glass table
atop a new terrazzo floor, said Paul Amrich, the CB Richard Ellis
broker who is marketing the property.
'Cluttering a lobby with plants doesn't work well from a leasing
standpoint,' Mr Amrich said. He said the building, which has a
cleaner entry and a new facade, had been able to raise annual rents
to as much as US$130 a square foot, from US$80 before the
renovations. The building is 80 per cent leased.
Elaborate landscaping can require a lot of water and maintenance.
Since this is potentially costly, it can make a big impact on a
building's operating budget, a heightened concern at a time of rising
inflation, said Thomas R Krizmanic, a principal of Studios
Architecture in the firm's New York office.
'Indoor landscaping isn't a priority on the minds of my clients,' he
said, citing the building at 731 Lexington Avenue, whose office
segment is known as the Bloomberg Tower and whose residential segment
is called One Beacon Court. Mr Krizmanic helped design the building,
which was developed in 2005 by Vornado Realty Trust.
The bulk of plants in the office part of the complex are 40 ficus
trees lining a sixth-floor connecting walkway, though a lack of
natural light on the ground floor also made plants impractical for
the lobby, Mr Krizmanic said.
That owners and tenants are installing fewer plants while generally
supporting trends for more environmentally friendly buildings seems
like a contradiction to MJ Gilhooley, the programme coordinator for
the Green Plants for Green Buildings, an advocacy group based in
Loveland, Ohio.
Mr Gilhooley, whose group was initially financed by the landscaping
industry, acknowledged that the most salable aspect of indoor plants
was their ability to beautify spaces. But, she said, referencing a
range of scientific studies, they can also make workers more
attentive, absent less and more productive. Spiky-leafed bamboo
palms, for one, are known to absorb potentially harmful formaldehyde
emitted by certain woods and insulations, she said.
Yet, the US Green Building Council, which promotes eco-friendly
construction through its Leadership in Energy and Environmental
Design benchmarks, or LEED, which developers must meet to be
certified, does not award points for indoor plants.
'The meat and potatoes of green buildings are usually what you can't
see,' said Russell Unger, the executive director of the council's New
York chapter.
Still, the council does encourage planted roofs, and landscapers are
responding, said Teresa Carleo, the founder of Plant Fantasies, a 21-
year-old company in Manhattan that has one completed commercial
project to its credit and five planned.
For instance, on the 7,000-square-foot roof at 250 Hudson Street, a
former printing plant in Hudson Square being converted to offices by
Jack Resnick & Sons, Ms Carleo will install crab apple trees and
prairie grasses in stark contrast to the lobby, which will be
essentially bare, she said.
Residential roofs are being similarly dressed up, said Howard
Freilich, the founder of Blondies Treehouse, a 29-year-old
landscaping business in Westchester County.
While office building lobbies once clearly made up most New York
projects for the company, he said condos do now.
An example is the Caledonia, a Related Cos, complex on West 17th
Street where Mr Freilich recently planted three roof gardens that
totalled 20,000 square feet and included 100 trees and 1,000 cubic
yards of soil.
'We really have to adapt and mould to the changing business to stay
alive,' he said.
Lobbies in New York shedding their greenery
(NEW YORK) For decades, it has been practically an unwritten rule of
office building design that a high-end building should have lushly
landscaped lobbies or atriums. The forest's worth of magnolia, pear
and eucalyptus placed inside the Ford Foundation building in 1967
perhaps kicked off the trend, which culminated in the late 1980s when
the World Financial Center decorated its Winter Garden with rows of
soaring palms.
Today, though, tastes seem to be undergoing a change, with owners
seeking a leaner less-is-more look for their lobbies where the only
touches of greenery are often a few cut flowers in a security desk
vase.
Plants are also less common now in upstairs hallways and offices,
according to landlords, property managers, brokers and landscapers,
as tenants take less space than in decades past. With the smaller
footprints, they tend to use flora sparingly.
While more buildings are planting their roofs with grass, trees or
shrubs, the interior landscaping industry finds itself in a difficult
place, professionals say.
'We were very lucky before, because everybody wanted plants, and lots
of them,' said John Mini, a landscaper in Rockland County since 1973.
His work included rebuilding the Winter Garden, where 16 palms had to
be replaced after the Sept 11 attacks. Twenty years ago, he
estimates, 80 per cent of all New York City office building lobbies
were landscaped; today, he says, only about half are. 'It's all
changing, and unless we keep up, we will be in trouble,' he said.
Some notable new high-rises have opted for plantless lobbies. These
include the IAC Building, designed by Frank Gehry in West Chelsea;
and One Bryant Park, the Bank of America tower in Midtown developed
by the Durst Organization, where tenants already occupy the lower
half of the building.
Next year, One Bryant Park will add an urban garden room at the south-
west corner of the Avenue of the Americas and 43rd Street, which will
feature an enclosed public space with plantings and benches
accessible from the sidewalk, but separated from the lobby by a wall,
according to the Durst Organization.
Retrofitted buildings also often tend to be less leafy, like 1330
Avenue of the Americas, a 40-storey glass-and-steel high-rise at West
54th Street owned by the Macklowe Organization that is opening this
week after a US$30 million nine-month renovation.
Within the lobby, gone are the '80s-style planters with funky
curves', the focal point has become blue chairs and a glass table
atop a new terrazzo floor, said Paul Amrich, the CB Richard Ellis
broker who is marketing the property.
'Cluttering a lobby with plants doesn't work well from a leasing
standpoint,' Mr Amrich said. He said the building, which has a
cleaner entry and a new facade, had been able to raise annual rents
to as much as US$130 a square foot, from US$80 before the
renovations. The building is 80 per cent leased.
Elaborate landscaping can require a lot of water and maintenance.
Since this is potentially costly, it can make a big impact on a
building's operating budget, a heightened concern at a time of rising
inflation, said Thomas R Krizmanic, a principal of Studios
Architecture in the firm's New York office.
'Indoor landscaping isn't a priority on the minds of my clients,' he
said, citing the building at 731 Lexington Avenue, whose office
segment is known as the Bloomberg Tower and whose residential segment
is called One Beacon Court. Mr Krizmanic helped design the building,
which was developed in 2005 by Vornado Realty Trust.
The bulk of plants in the office part of the complex are 40 ficus
trees lining a sixth-floor connecting walkway, though a lack of
natural light on the ground floor also made plants impractical for
the lobby, Mr Krizmanic said.
That owners and tenants are installing fewer plants while generally
supporting trends for more environmentally friendly buildings seems
like a contradiction to MJ Gilhooley, the programme coordinator for
the Green Plants for Green Buildings, an advocacy group based in
Loveland, Ohio.
Mr Gilhooley, whose group was initially financed by the landscaping
industry, acknowledged that the most salable aspect of indoor plants
was their ability to beautify spaces. But, she said, referencing a
range of scientific studies, they can also make workers more
attentive, absent less and more productive. Spiky-leafed bamboo
palms, for one, are known to absorb potentially harmful formaldehyde
emitted by certain woods and insulations, she said.
Yet, the US Green Building Council, which promotes eco-friendly
construction through its Leadership in Energy and Environmental
Design benchmarks, or LEED, which developers must meet to be
certified, does not award points for indoor plants.
'The meat and potatoes of green buildings are usually what you can't
see,' said Russell Unger, the executive director of the council's New
York chapter.
Still, the council does encourage planted roofs, and landscapers are
responding, said Teresa Carleo, the founder of Plant Fantasies, a 21-
year-old company in Manhattan that has one completed commercial
project to its credit and five planned.
For instance, on the 7,000-square-foot roof at 250 Hudson Street, a
former printing plant in Hudson Square being converted to offices by
Jack Resnick & Sons, Ms Carleo will install crab apple trees and
prairie grasses in stark contrast to the lobby, which will be
essentially bare, she said.
Residential roofs are being similarly dressed up, said Howard
Freilich, the founder of Blondies Treehouse, a 29-year-old
landscaping business in Westchester County.
While office building lobbies once clearly made up most New York
projects for the company, he said condos do now.
An example is the Caledonia, a Related Cos, complex on West 17th
Street where Mr Freilich recently planted three roof gardens that
totalled 20,000 square feet and included 100 trees and 1,000 cubic
yards of soil.
'We really have to adapt and mould to the changing business to stay
alive,' he said.
San Francisco Bay Area home sales up
August 21, 2008
San Francisco Bay Area home sales up
7,586, or 2% more, units sold in July, recording first sales gain
since Jan 2005
(SAN FRANCISCO) San Francisco Bay Area home sales rose in July for
the first time since 2005 and the median price fell to the lowest in
more than three years as buyers bought discounted properties in
foreclosure.
Sales increased 2.2 per cent last month from a year earlier, San
Diego-based MDA DataQuick, a property research firm, said in a report
on Monday. A total of 7,586 houses and condominiums sold in July in
nine Bay Area counties.
The median fell a record 29.3 per cent to US$470,000, the lowest
since March 2005.
'We know one-third of the Bay Area's resales in July were homes fresh
off foreclosure,' said John Walsh, MDA DataQuick president. 'Who
knows how many more involved a desperate seller and a lender who
accepted a short sale?'
Foreclosure sales are attracting buyers to inland areas where home
prices declined after rapid appreciation during the five year housing
boom. Those transactions accounted for 33 per cent of total Bay Area
sales last month, up from 29.9 per cent in June and from 4.2 per cent
a year earlier.
Eleven ZIP codes in Solano and Contra Costa counties had foreclosure
sales at least double the amount in July 2007, according to MDA
DataQuick.
Falling prices enabled 48 per cent of households to afford an entry-
level home in the state in the second quarter, compared with 24 per
cent a year earlier, the California Association of Realtors said in a
separate report on Monday. The minimum qualifying income was
US$62,870, compared with US$101,440 a year earlier, the Realtors
said.
The year-over-year sales gain was the first since January 2005, MDA
DataQuick said. Transactions increased 5.7 per cent in July from
June. Southern California home sales rose 14 per cent to the highest
level since March 2007.
Sales are slower in more expensive coastal areas such as San
Francisco, Marin and San Mateo counties, MDA DataQuick said.
Potential buyers are waiting for mortgage terms to become less strict
and sellers are reluctant to put their homes on the market as prices
fall, Mr Walsh said.
Purchases made with jumbo loans, those over US$417,000, fell by half
in July from a year earlier and help explain why the region's median
price declined the most since MDA DataQuick, a unit of Vancouver-
based MacDonald Dettwiler and Associates, began statistics in 1988,
the company said.
The Bay Area median hasn't been lower since March 2005, when it was
US$469,500.
Prices dropped in all nine counties, led by a 42 per cent decline in
Contra Costa. Prices decreased 34 per cent in Solano, 30 per cent in
Sonoma, 28 per cent in Napa, 27 per cent in Alameda, 16 per cent in
Santa Clara, 16 per cent in San Mateo, 13 per cent in Marin and 6 per
cent in San Francisco, according to MDA DataQuick.
Sales increased 47 per cent in Napa, 45 per cent in Solano, 30 per
cent in Contra Costa and 8 per cent in San Francisco. They fell 13
per cent in Santa Clara, 11 per cent in San Mateo, 10 per cent in
Marin and 9 per cent in Alameda. Sales were unchanged in Sonoma, MDA
DataQuick said.
The typical monthly mortgage payment was US$2,218 in July, down from
US$2,282 in June and US$3,222 a year earlier.
Adjusted for inflation, current payments are 15.1 per cent below
payments in the spring of 1989, the peak of the prior real estate
cycle, and 36.1 per cent below payments in June 2006, the current
cycle's peak, MDA DataQuick said.
San Francisco Bay Area home sales up
7,586, or 2% more, units sold in July, recording first sales gain
since Jan 2005
(SAN FRANCISCO) San Francisco Bay Area home sales rose in July for
the first time since 2005 and the median price fell to the lowest in
more than three years as buyers bought discounted properties in
foreclosure.
Sales increased 2.2 per cent last month from a year earlier, San
Diego-based MDA DataQuick, a property research firm, said in a report
on Monday. A total of 7,586 houses and condominiums sold in July in
nine Bay Area counties.
The median fell a record 29.3 per cent to US$470,000, the lowest
since March 2005.
'We know one-third of the Bay Area's resales in July were homes fresh
off foreclosure,' said John Walsh, MDA DataQuick president. 'Who
knows how many more involved a desperate seller and a lender who
accepted a short sale?'
Foreclosure sales are attracting buyers to inland areas where home
prices declined after rapid appreciation during the five year housing
boom. Those transactions accounted for 33 per cent of total Bay Area
sales last month, up from 29.9 per cent in June and from 4.2 per cent
a year earlier.
Eleven ZIP codes in Solano and Contra Costa counties had foreclosure
sales at least double the amount in July 2007, according to MDA
DataQuick.
Falling prices enabled 48 per cent of households to afford an entry-
level home in the state in the second quarter, compared with 24 per
cent a year earlier, the California Association of Realtors said in a
separate report on Monday. The minimum qualifying income was
US$62,870, compared with US$101,440 a year earlier, the Realtors
said.
The year-over-year sales gain was the first since January 2005, MDA
DataQuick said. Transactions increased 5.7 per cent in July from
June. Southern California home sales rose 14 per cent to the highest
level since March 2007.
Sales are slower in more expensive coastal areas such as San
Francisco, Marin and San Mateo counties, MDA DataQuick said.
Potential buyers are waiting for mortgage terms to become less strict
and sellers are reluctant to put their homes on the market as prices
fall, Mr Walsh said.
Purchases made with jumbo loans, those over US$417,000, fell by half
in July from a year earlier and help explain why the region's median
price declined the most since MDA DataQuick, a unit of Vancouver-
based MacDonald Dettwiler and Associates, began statistics in 1988,
the company said.
The Bay Area median hasn't been lower since March 2005, when it was
US$469,500.
Prices dropped in all nine counties, led by a 42 per cent decline in
Contra Costa. Prices decreased 34 per cent in Solano, 30 per cent in
Sonoma, 28 per cent in Napa, 27 per cent in Alameda, 16 per cent in
Santa Clara, 16 per cent in San Mateo, 13 per cent in Marin and 6 per
cent in San Francisco, according to MDA DataQuick.
Sales increased 47 per cent in Napa, 45 per cent in Solano, 30 per
cent in Contra Costa and 8 per cent in San Francisco. They fell 13
per cent in Santa Clara, 11 per cent in San Mateo, 10 per cent in
Marin and 9 per cent in Alameda. Sales were unchanged in Sonoma, MDA
DataQuick said.
The typical monthly mortgage payment was US$2,218 in July, down from
US$2,282 in June and US$3,222 a year earlier.
Adjusted for inflation, current payments are 15.1 per cent below
payments in the spring of 1989, the peak of the prior real estate
cycle, and 36.1 per cent below payments in June 2006, the current
cycle's peak, MDA DataQuick said.
Dubai's new law on mortgage
August 21, 2008
Dubai's new law on mortgage
(DUBAI) Dubai newspapers are reporting that the local government has
issued a mortgage law aimed at regulating the city-state's booming
property market.
Yesterday's reports in the Khaleej Times and the Gulf News say that the
law requires that mortgages be insured, sold by approved banks,
registered with local authorities and that they specify the property
value and terms of the loan.
They say the ruler of Dubai, Sheik Mohammed bin Rashid al-Maktoum,
issued the decree on the new law. It will take effect 60 days from
publication.
Dubai's new law on mortgage
(DUBAI) Dubai newspapers are reporting that the local government has
issued a mortgage law aimed at regulating the city-state's booming
property market.
Yesterday's reports in the Khaleej Times and the Gulf News say that the
law requires that mortgages be insured, sold by approved banks,
registered with local authorities and that they specify the property
value and terms of the loan.
They say the ruler of Dubai, Sheik Mohammed bin Rashid al-Maktoum,
issued the decree on the new law. It will take effect 60 days from
publication.
Centro's US mall manager posts US$299m loss
August 21, 2008
Centro's US mall manager posts US$299m loss
Writedown in value of business behind Centro NP's net loss in Q2
(MELBOURNE) Centro Properties Group, the Australian owner of more
than 650 US malls, said the unit that manages US assets acquired last
year for US$5.2 billion chalked up a second-quarter loss after
writing down the value of the business.
Centro NP had a net loss of US$299 million for the three months ended
June 30, the Melbourne-based parent said yesterday in a statement to
the Australian stock exchange. The unit booked a US$95 million charge
for writing down properties and a US$173.5 million impairment in the
company's goodwill and the value of its property management business.
'There is substantial doubt about the company's ability to continue
as a going concern given that the company's liquidity is subject to,
among other things, its ability to negotiate extensions of credit
facilities,' Centro NP said in a statement filed on Tuesday with the
US Securities and Exchange Commission.
Centro Properties' market value plunged in December when the seizure
in global credit market shut funding avenues for the company and it
was unable to repay borrowing used to buy New Plan. It has since won
five reprieves from lenders on repayments for as much as A$6.6
billion (S$8 billion) in debt.
Centro's US properties lost 8.8 per cent of their value amid slowing
retail sales and a potential recession, according to the parent
company's first-half earnings report. It also has 129 shopping
centres in Australia and New Zealand and is trying to sell stakes in
its funds to repay debt.
Centro NP generated net income of US$4 million in the period from
April 5 to June 30, 2007, according to its statement. April 5 was the
date the US unit was created out of Centro's acquisition of New Plan
Excel Realty, the biggest US acquisition by an Australian real estate
investment trust.
Centro NP has US$4.5 billion of real estate assets, according to its
second-quarter earnings.
Centro's US mall manager posts US$299m loss
Writedown in value of business behind Centro NP's net loss in Q2
(MELBOURNE) Centro Properties Group, the Australian owner of more
than 650 US malls, said the unit that manages US assets acquired last
year for US$5.2 billion chalked up a second-quarter loss after
writing down the value of the business.
Centro NP had a net loss of US$299 million for the three months ended
June 30, the Melbourne-based parent said yesterday in a statement to
the Australian stock exchange. The unit booked a US$95 million charge
for writing down properties and a US$173.5 million impairment in the
company's goodwill and the value of its property management business.
'There is substantial doubt about the company's ability to continue
as a going concern given that the company's liquidity is subject to,
among other things, its ability to negotiate extensions of credit
facilities,' Centro NP said in a statement filed on Tuesday with the
US Securities and Exchange Commission.
Centro Properties' market value plunged in December when the seizure
in global credit market shut funding avenues for the company and it
was unable to repay borrowing used to buy New Plan. It has since won
five reprieves from lenders on repayments for as much as A$6.6
billion (S$8 billion) in debt.
Centro's US properties lost 8.8 per cent of their value amid slowing
retail sales and a potential recession, according to the parent
company's first-half earnings report. It also has 129 shopping
centres in Australia and New Zealand and is trying to sell stakes in
its funds to repay debt.
Centro NP generated net income of US$4 million in the period from
April 5 to June 30, 2007, according to its statement. April 5 was the
date the US unit was created out of Centro's acquisition of New Plan
Excel Realty, the biggest US acquisition by an Australian real estate
investment trust.
Centro NP has US$4.5 billion of real estate assets, according to its
second-quarter earnings.
Economic tough times divide Sydney
August 21, 2008
Economic tough times divide Sydney
(SYDNEY) This is a tale of two cities.
There's the beachside Sydney, washed by white foamy waves, dotted by
cafes and high class restaurants and multi-million dollar houses and
apartments - it's boomtown Sydney.
Then there's the other Sydney. The one not in the tourist brochures,
that stretches west and is home to the bulk of the city's six million
residents, many struggling to survive the global credit squeeze, a 12-
year high interest rate of 7.25 per cent, rising food and fuel costs
and falling house prices.
Sydney, like the rest of Australia which has enjoyed 17 straight
years of economic growth and a housing boom in recent years, now has
a two-speed economy and the divide between winners and losers seems
to be widening.
By the end of 2008, an estimated one million Australian households
will be suffering mortgage stress, which means they pay 30 per cent
or more of their household income on mortgage repayments, says a
recent Fujitsu Consulting/ Wizard Home Loans survey. Hundreds of
thousands of homeowners are in severe mortgage stress and are unable
to make repayments on time.
'The sad fact is that come Christmas time, we estimate that one
million Australians will suffer mortgage stress. That's a huge number
of people that are potentially going to face losing their property
unless drastic action is taken,' said Mark Bouris, chairman of Wizard
Home Loans.
And the country's biggest city Sydney has some of the biggest
mortgages. The average monthly mortgage repayment in the city has
risen more than 40 per cent in the past five years, says a study of
the city by the University of New South Wales (NSW).
The study said homeowners in western suburbs such as Canterbury,
Bankstown and Auburn, were paying over 40 per cent of their income on
mortgage repayments. Meanwhile, wealthier eastern and northern
suburbs have seen incomes rise to accommodate higher mortgages.
'Sydney got richer in the first five years of the new century, but
that new wealth was very unevenly spread about,' said the report
titled 'Our Changing City' by The City Futures Research Centre at the
University of NSW.
Home repossessions and personal bankruptcies in Sydney's west are
rising and while some homeowners are selling up, sliding house prices
are leaving them with large debts to banks.
There were 1,077 court-ordered home repossessions in NSW in the first
quarter of 2008, compared with 921 in the same period in 2007. Of the
top 10 worst areas for delinquency, late mortgage payments, six were
in Sydney. And its Sydney's western suburbs where most homes were
lost.
While residents in the city's affluent east, north and inner west may
have large, often multi-million dollar mortgages, their properties
are holding their value. In contrast, housing prices in some western
suburbs have fallen 20 to 50 per cent.
Sydney house prices have fallen 2.1 per cent in the quarter to June,
the largest fall since 2004, and will experience an annual fall of
8.4 per cent, says Australian Property Monitors (APM).
The median price for a Sydney house in June was officially A$542,000
(S$667,000), but that will not buy you a house anywhere near Bondi in
the east, where the starting price for a house is well above A$1
million, nor anywhere north of Sydney Harbour.
Housing affordability is declining in Sydney, especially in outer
suburbs, said The City Futures Research Centre report.
'This is consistent with an analysis of the changing income growth
across the city, with stagnant household incomes in many middle and
outer west suburbs contrasting to strong income growth in the inner,
eastern and northern suburbs,' said the report.
Not only has 12 interest rate rises since 2002 divided Sydney, but so
has the rising cost of living, with inflation forecast by the central
bank to reach 5 per cent by year end.
Australia's economic boom has seen credit card debt soar to around
A$44 billion, with the average card carrying a 19.5 per cent interest
charge on a monthly balance of A$3,100.
'Household indebtedness is around historical highs,' says the Reserve
Bank of Australia (RBA). Welfare groups say financial crisis services
are swamped by people, many from western Sydney, struggling with
mortgages and sometimes up to 12 credit cards.
'It's not unusual to see a person come with a large mortgage debt but
also a string of credit cards as well, which they have often maxed
out to maintain the mortgage for as long as they can. They use credit
cards to buy food, pay utilities,' said The Salvation Army's Tony
Devlin.
'There's definitely an economic divide (in Sydney). There's two
economies operating, the one our clients operate in and the other
that you see on the front page of the Australian Financial
Review,'said Devlin.
Economic tough times divide Sydney
(SYDNEY) This is a tale of two cities.
There's the beachside Sydney, washed by white foamy waves, dotted by
cafes and high class restaurants and multi-million dollar houses and
apartments - it's boomtown Sydney.
Then there's the other Sydney. The one not in the tourist brochures,
that stretches west and is home to the bulk of the city's six million
residents, many struggling to survive the global credit squeeze, a 12-
year high interest rate of 7.25 per cent, rising food and fuel costs
and falling house prices.
Sydney, like the rest of Australia which has enjoyed 17 straight
years of economic growth and a housing boom in recent years, now has
a two-speed economy and the divide between winners and losers seems
to be widening.
By the end of 2008, an estimated one million Australian households
will be suffering mortgage stress, which means they pay 30 per cent
or more of their household income on mortgage repayments, says a
recent Fujitsu Consulting/ Wizard Home Loans survey. Hundreds of
thousands of homeowners are in severe mortgage stress and are unable
to make repayments on time.
'The sad fact is that come Christmas time, we estimate that one
million Australians will suffer mortgage stress. That's a huge number
of people that are potentially going to face losing their property
unless drastic action is taken,' said Mark Bouris, chairman of Wizard
Home Loans.
And the country's biggest city Sydney has some of the biggest
mortgages. The average monthly mortgage repayment in the city has
risen more than 40 per cent in the past five years, says a study of
the city by the University of New South Wales (NSW).
The study said homeowners in western suburbs such as Canterbury,
Bankstown and Auburn, were paying over 40 per cent of their income on
mortgage repayments. Meanwhile, wealthier eastern and northern
suburbs have seen incomes rise to accommodate higher mortgages.
'Sydney got richer in the first five years of the new century, but
that new wealth was very unevenly spread about,' said the report
titled 'Our Changing City' by The City Futures Research Centre at the
University of NSW.
Home repossessions and personal bankruptcies in Sydney's west are
rising and while some homeowners are selling up, sliding house prices
are leaving them with large debts to banks.
There were 1,077 court-ordered home repossessions in NSW in the first
quarter of 2008, compared with 921 in the same period in 2007. Of the
top 10 worst areas for delinquency, late mortgage payments, six were
in Sydney. And its Sydney's western suburbs where most homes were
lost.
While residents in the city's affluent east, north and inner west may
have large, often multi-million dollar mortgages, their properties
are holding their value. In contrast, housing prices in some western
suburbs have fallen 20 to 50 per cent.
Sydney house prices have fallen 2.1 per cent in the quarter to June,
the largest fall since 2004, and will experience an annual fall of
8.4 per cent, says Australian Property Monitors (APM).
The median price for a Sydney house in June was officially A$542,000
(S$667,000), but that will not buy you a house anywhere near Bondi in
the east, where the starting price for a house is well above A$1
million, nor anywhere north of Sydney Harbour.
Housing affordability is declining in Sydney, especially in outer
suburbs, said The City Futures Research Centre report.
'This is consistent with an analysis of the changing income growth
across the city, with stagnant household incomes in many middle and
outer west suburbs contrasting to strong income growth in the inner,
eastern and northern suburbs,' said the report.
Not only has 12 interest rate rises since 2002 divided Sydney, but so
has the rising cost of living, with inflation forecast by the central
bank to reach 5 per cent by year end.
Australia's economic boom has seen credit card debt soar to around
A$44 billion, with the average card carrying a 19.5 per cent interest
charge on a monthly balance of A$3,100.
'Household indebtedness is around historical highs,' says the Reserve
Bank of Australia (RBA). Welfare groups say financial crisis services
are swamped by people, many from western Sydney, struggling with
mortgages and sometimes up to 12 credit cards.
'It's not unusual to see a person come with a large mortgage debt but
also a string of credit cards as well, which they have often maxed
out to maintain the mortgage for as long as they can. They use credit
cards to buy food, pay utilities,' said The Salvation Army's Tony
Devlin.
'There's definitely an economic divide (in Sydney). There's two
economies operating, the one our clients operate in and the other
that you see on the front page of the Australian Financial
Review,'said Devlin.
En bloc spat: Mailboxes hit
Aug 21, 2008
En bloc spat: Mailboxes hit
FIRST cars, now letter boxes.
Several residents of the Laguna Park condominium in Marine Parade
Road had their mailboxes vandalised last night.
In the third such attack this month, vandals used glue to seal the
keyholes of eight letter boxes - all belonging to residents who had
not signed the condominium's en bloc sales agreement.
For some victims, last night's attack was the second time they had
been hit.
Several had their cars damaged last month when vandals threw a
corrosive liquid, possibly paint thinner, on them.
The residents have appealed to their management committee for help,
and have suggested that closed-circuit television cameras be set up
to prevent future attacks.
This is being studied.
One victim of last night's mailbox attack, who wanted to be known
only as Mr Chan, 50, said: 'I'm disappointed that it has come to
this. The kampung spirit we had here has gone...all over an en bloc
sale.'
He added: 'I fear that this is not the end.'
Police are investigating.
En bloc spat: Mailboxes hit
FIRST cars, now letter boxes.
Several residents of the Laguna Park condominium in Marine Parade
Road had their mailboxes vandalised last night.
In the third such attack this month, vandals used glue to seal the
keyholes of eight letter boxes - all belonging to residents who had
not signed the condominium's en bloc sales agreement.
For some victims, last night's attack was the second time they had
been hit.
Several had their cars damaged last month when vandals threw a
corrosive liquid, possibly paint thinner, on them.
The residents have appealed to their management committee for help,
and have suggested that closed-circuit television cameras be set up
to prevent future attacks.
This is being studied.
One victim of last night's mailbox attack, who wanted to be known
only as Mr Chan, 50, said: 'I'm disappointed that it has come to
this. The kampung spirit we had here has gone...all over an en bloc
sale.'
He added: 'I fear that this is not the end.'
Police are investigating.
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