Builder has designs on posh condo market

July 29, 2008
Builder has designs on posh condo market
Heeton recruits style-setting design firm yoo for Grange Road
apartments
By Joyce Teo

A COMPANY once famed for its wet markets is now rubbing shoulders
with one of the world's trendiest firms in a bid to build Singapore's
most chic condos.

Heeton Holdings has roped in yoo - a design-focused property firm co-
founded by French style-setter Philippe Starck and British developer
John Hitchcox - for its 74 Grange Road project.

It has also recruited investment bank JP Morgan, which will take a 45
per cent stake in the 28-unit condo.

But yoo does not come cheap. The 'Prada of the property industry'
designed Hong Kong's JIA hotel and has hooked up with designers like
Jade Jagger, daughter of Rolling Stone Mick.

Heeton is paying a flat fee of around $2 million, well over double
the standard design fee, for the interior design of the units and the
show suite, plus an undisclosed incentive bonus if yoo sells the
units.

In return, yoo is offering a cutting-edge concept intended to draw
buyers worldwide. 'This will undoubtedly set a new standard here. Our
focus is to help developers achieve higher prices,' said yoo's London-
based chief executive Chris Boulton. 'We do add value and ensure they
sell in tough markets.'

Mr Boulton said that the firm's projects had achieved a premium of 10
to 30 per cent above market value by capitalising on innovative
design and the yoo brand to drive more traffic towards the project.

'It's also about making more noise about the project' to raise its
profile, he added.

Heeton's chief operating officer Danny Low said it recruited yoo to
give the freehold condo an edge over others.

'The Singapore market is very competitive and buyers have become
increasingly sophisticated. That is why we have to present a highly
differentiated product for our targeted buyers, who are high-net-
worth individuals and couples.'

These are the buyers who like spacious two-bedroom units of 1,600 to
1,800 sq ft or the two penthouses of 3,600 sq ft and 4,000 sq ft.

Heeton will meet yoo next week to discuss the design for the project.

This is yoo's first residential design job here and its services will
be exclusive to Heeton until the middle of next year. It also has
residential projects in Thailand and Taiwan.

The project will be launched late this year or early next year.
Construction should start by the first quarter of next year.

Heeton declined to give a break-even price as it has yet to appoint a
contractor. It bought Grange Court for $72.8 million or $1,706 psf
per plot ratio, excluding development charge, in a collective sale
last August.

Knight Frank, the sole marketing agent, helped introduce yoo to
Heeton. Yoo's managing director for Asia, Mr Andrew Pang, used to
work for Knight Frank.