August 27, 2008
Wing Tai's Q4 net slumps 60%
Home sellers seen unlikely to resort to fire-sale - at least until
2010
By UMA SHANKARI
PROPERTY group Wing Tai Holdings yesterday said that net profit for
its fourth quarter fell by more than half as it sold fewer homes and
saw lower fair value gains from investment properties.
At the same time, chairman Cheng Wai Keung, known for his often
candid assessments of the property market, said that while home
prices could see some adjustment in 2008 and 2009, sellers are
unlikely to have a 'fire sale' of their properties - at least until
2010.
This is because home prices in Singapore started climbing rapidly
only in 2006 and 2007, and buyers of these newer properties will see
the projects completed only from 2010 onwards. The push to offload
their units will happen only then, he said.
The company's net profit for the three months ended June 30 fell 60
per cent to $96.3 million, from $243.2 million a year ago. Fair value
gains on investment properties dropped to $90.6 million from $189
million.
Revenue for the fourth quarter fell 57 per cent to $107.3 million,
down from $249.1 million in Q4 2007. Among other projects, revenue
was contributed by units sold in The Riverine by the Park in
Singapore.
Earnings per share fell to 12.45 cents, from 33.83 cents a year ago.
Wing Tai has declared a dividend of six cents a share, comprising a
first and final dividend of three cents and a special dividend of
three cents.
For the entire 2008 financial year, Wing Tai reported that net profit
fell some 40 per cent to $229.4 million, from $381.8 million in
FY2007.
Revenue for the 12 months fell 56 per cent to $428.2 million, from
$981.6 million a year ago.
Wing Tai said in a filing to the Singapore Exchange that the
underlying fundamentals of the property market are still sound.
'I have always believed that property is actually a reflection of the
fundamental strength of the economy,' said Mr Cheng. However,
sentiment has a part to play too, he admitted.
Wing Tai sold some 205 units in Singapore during the financial year,
although the majority of units were sold in the last six months of
2007.
The company has some 1.4 million square feet in its residential land
bank, but no new launches are planned for the moment, Mr Cheng said.
Wednesday, August 27, 2008
a-iTrust buys India office space
August 27, 2008
a-iTrust buys India office space
By ARTHUR SIM
ASCENDAS India Trust (a-iTrust) will buy 96,051 square feet of office
space at India's International Tech Park Bangalore (ITPB) for 307.8
million rupees (S$10 million).
The space, now owned by Tata Consultancy Services (TCS), will be
leased back to TCS.
a-iTrust already owns 1.7 million-sq ft of space at ITPB through its
Indian special-purpose vehicle International Technology Park Ltd
(ITPL). Jonathan Yap, chief executive officer of the trustee-manager
of a-iTrust, said: 'As one of the four IT parks we own, ITPB has been
delivering good and steady returns. Current occupancy is 100 per
cent, and we continue to experience demand for space from existing
and new clients.'
a-iTrust said that the office purchase is part of an agreement under
which ITPL would construct and sell TCS a custom-built facility at
ITPB, while TCS would, in return, sell office units at the park to
ITPL.
The 515,000-sq ft custom-built facility has been completed and handed
over to TCS.
The office space will be yield-accretive. The pro forma financial
effect on a-iTrust's distribution per unit (DPU) for the financial
year ended March 31, 2008, is expected to be an additional 0.088
cents.
a-iTrust said the acquisition will be funded by drawing down an
existing loan facility. a-iTrust's gearing will be 5 per cent.
Upon completion of the acquisition, a-iTrust will own $1 billion of
assets, comprising 4.8 million sq ft of income-producing space plus
land for the development of 4.2 million sq ft of space.
Mr Yap said: 'We will continue to focus on enhancing returns to
unitholders through organic growth, developing land owned by a-
iTrust, and acquisitions.'
a-iTrust buys India office space
By ARTHUR SIM
ASCENDAS India Trust (a-iTrust) will buy 96,051 square feet of office
space at India's International Tech Park Bangalore (ITPB) for 307.8
million rupees (S$10 million).
The space, now owned by Tata Consultancy Services (TCS), will be
leased back to TCS.
a-iTrust already owns 1.7 million-sq ft of space at ITPB through its
Indian special-purpose vehicle International Technology Park Ltd
(ITPL). Jonathan Yap, chief executive officer of the trustee-manager
of a-iTrust, said: 'As one of the four IT parks we own, ITPB has been
delivering good and steady returns. Current occupancy is 100 per
cent, and we continue to experience demand for space from existing
and new clients.'
a-iTrust said that the office purchase is part of an agreement under
which ITPL would construct and sell TCS a custom-built facility at
ITPB, while TCS would, in return, sell office units at the park to
ITPL.
The 515,000-sq ft custom-built facility has been completed and handed
over to TCS.
The office space will be yield-accretive. The pro forma financial
effect on a-iTrust's distribution per unit (DPU) for the financial
year ended March 31, 2008, is expected to be an additional 0.088
cents.
a-iTrust said the acquisition will be funded by drawing down an
existing loan facility. a-iTrust's gearing will be 5 per cent.
Upon completion of the acquisition, a-iTrust will own $1 billion of
assets, comprising 4.8 million sq ft of income-producing space plus
land for the development of 4.2 million sq ft of space.
Mr Yap said: 'We will continue to focus on enhancing returns to
unitholders through organic growth, developing land owned by a-
iTrust, and acquisitions.'
US housing upturn unlikely before '09
August 27, 2008
US housing upturn unlikely before '09
Recently-passed law to avert foreclosures a key move: official
(WASHINGTON) A recovery from the worst US housing slump since the
Depression is unlikely until 'well into 2009,' Housing and Urban
Development Secretary Steve Preston said on Monday.
'I think we're right in the middle of it, and I think we have a ways
to go before we start seeing a turnaround,' Mr Preston said in an
interview in Washington. 'We'll be well into 2009 before we see some
real energy in this market.'
A slowdown in home sales and a drop in prices has contributed to
record foreclosures as borrowers struggle to meet their monthly
mortgage payments.
Mr Preston said a foreclosure-prevention law Congress passed last
month will be important in aiding mortgage-finance companies Fannie
Mae and Freddie Mac, which are supporting most new mortgages.
'We have to begin seeing the inventory of new homes begin to reduce
so that we can see the buying activity begin to pull us out of the
situation we're in,' Mr Preston, 48, said.
US banks repossessed almost three times as many US homes in July as a
year earlier, and the number of properties at risk of foreclosure
jumped 55 per cent, California-based RealtyTrac Inc said in an Aug 14
report.
The law enacted last month creates a Federal Housing Administration
programme in HUD to insure as much as US$300 billion in refinanced 30-
year, fixed-rate mortgages for 400,000 struggling homeowners. The law
lets the US inject capital into Fannie and Freddie through stock
purchases or government loans.
Mr Preston deferred to the US Treasury and Federal Housing Finance
Agency, the new regulator of Fannie Mae and Freddie Mac, on whether
the companies should be bailed out or nationalised.
'I don't know what the future holds for them,' he said. Mr Preston
said 'it's possible' he may propose other solutions to the housing
crisis, without being specific.
'Many of the policy solutions are out there and working,' he
said. 'My guess is that you're going to see more fine-tuning of these
programmes to ensure that they're working, rather than large-scale
change.'
Other programmes include an industry-led effort called the Hope Now
Alliance organised last year to help troubled homeowners modify their
mortgages to make monthly payments more affordable.
A programme HUD started a year ago called FHA Secure is also aimed at
averting foreclosures by helping borrowers with adjustable-rate
mortgages refinance into FHA-insured mortgages.
Mr Preston, who was head of the US Small Business Administration, in
June replaced Alphonso Jackson, who quit amid a federal criminal
probe into contracts awarded by the agency.
US housing upturn unlikely before '09
Recently-passed law to avert foreclosures a key move: official
(WASHINGTON) A recovery from the worst US housing slump since the
Depression is unlikely until 'well into 2009,' Housing and Urban
Development Secretary Steve Preston said on Monday.
'I think we're right in the middle of it, and I think we have a ways
to go before we start seeing a turnaround,' Mr Preston said in an
interview in Washington. 'We'll be well into 2009 before we see some
real energy in this market.'
A slowdown in home sales and a drop in prices has contributed to
record foreclosures as borrowers struggle to meet their monthly
mortgage payments.
Mr Preston said a foreclosure-prevention law Congress passed last
month will be important in aiding mortgage-finance companies Fannie
Mae and Freddie Mac, which are supporting most new mortgages.
'We have to begin seeing the inventory of new homes begin to reduce
so that we can see the buying activity begin to pull us out of the
situation we're in,' Mr Preston, 48, said.
US banks repossessed almost three times as many US homes in July as a
year earlier, and the number of properties at risk of foreclosure
jumped 55 per cent, California-based RealtyTrac Inc said in an Aug 14
report.
The law enacted last month creates a Federal Housing Administration
programme in HUD to insure as much as US$300 billion in refinanced 30-
year, fixed-rate mortgages for 400,000 struggling homeowners. The law
lets the US inject capital into Fannie and Freddie through stock
purchases or government loans.
Mr Preston deferred to the US Treasury and Federal Housing Finance
Agency, the new regulator of Fannie Mae and Freddie Mac, on whether
the companies should be bailed out or nationalised.
'I don't know what the future holds for them,' he said. Mr Preston
said 'it's possible' he may propose other solutions to the housing
crisis, without being specific.
'Many of the policy solutions are out there and working,' he
said. 'My guess is that you're going to see more fine-tuning of these
programmes to ensure that they're working, rather than large-scale
change.'
Other programmes include an industry-led effort called the Hope Now
Alliance organised last year to help troubled homeowners modify their
mortgages to make monthly payments more affordable.
A programme HUD started a year ago called FHA Secure is also aimed at
averting foreclosures by helping borrowers with adjustable-rate
mortgages refinance into FHA-insured mortgages.
Mr Preston, who was head of the US Small Business Administration, in
June replaced Alphonso Jackson, who quit amid a federal criminal
probe into contracts awarded by the agency.
Hotel site at Short Street now available
August 27, 2008
Hotel site at Short Street now available
By ARTHUR SIM
DEVELOPERS interested in a hotel site in Short Street can apply for
it to be put up for tender, after the Urban Redevelopment Authority
(URA) released detailed sale conditions.
The 0.12 hectare site is one of two new hotel plots on the reserve
list under the second-half 2008 Government Land Sales (GLS) programme.
The site, in the Bras Basah/Bugis district, has a maximum permissible
gross floor area of 4,077 sq metres (43,884.4 sq ft) - smaller than
others released this year.
Cushman and Wakefield managing director Donald Han believes it will
attract smaller developers and new entrants to the market.
The owner of neighbouring Albert Court Hotel may feel compelled to
bid, he said.
He reckons that if the site goes up for public tender, bids could
range from $350 to $400 psf per plot ratio (psf ppr) - a quantum of
$15.4-$17.6 million.
Knight Frank director (research and consultancy) Nicholas Mak also
sees bids in this range.
'Based on planning details and the neighbourhood, a boutique hotel
development with an ethnically artistic design is deemed suitable,'
he said.
For instance, a developer could put up a Peranakan-style building
similar to Albert Court Hotel.
Earlier this month, URA received a committed bid of $51 million or
$249.6 psf ppr for a reserve list hotel site at Kallang and Jellicoe
roads.
Also this month, URA awarded a hotel site in Balestier Road to HH
Properties, which put in the highest bid of $172 psf ppr.
There are now nine hotel development sites on the GLS reserve list.
According to URA, the reserve list for H2 2008 provides for potential
supply of 5,050 hotel rooms, including a white site at Outram Road.
Hotel site at Short Street now available
By ARTHUR SIM
DEVELOPERS interested in a hotel site in Short Street can apply for
it to be put up for tender, after the Urban Redevelopment Authority
(URA) released detailed sale conditions.
The 0.12 hectare site is one of two new hotel plots on the reserve
list under the second-half 2008 Government Land Sales (GLS) programme.
The site, in the Bras Basah/Bugis district, has a maximum permissible
gross floor area of 4,077 sq metres (43,884.4 sq ft) - smaller than
others released this year.
Cushman and Wakefield managing director Donald Han believes it will
attract smaller developers and new entrants to the market.
The owner of neighbouring Albert Court Hotel may feel compelled to
bid, he said.
He reckons that if the site goes up for public tender, bids could
range from $350 to $400 psf per plot ratio (psf ppr) - a quantum of
$15.4-$17.6 million.
Knight Frank director (research and consultancy) Nicholas Mak also
sees bids in this range.
'Based on planning details and the neighbourhood, a boutique hotel
development with an ethnically artistic design is deemed suitable,'
he said.
For instance, a developer could put up a Peranakan-style building
similar to Albert Court Hotel.
Earlier this month, URA received a committed bid of $51 million or
$249.6 psf ppr for a reserve list hotel site at Kallang and Jellicoe
roads.
Also this month, URA awarded a hotel site in Balestier Road to HH
Properties, which put in the highest bid of $172 psf ppr.
There are now nine hotel development sites on the GLS reserve list.
According to URA, the reserve list for H2 2008 provides for potential
supply of 5,050 hotel rooms, including a white site at Outram Road.
HDB launches latest BTO project in Bukit Panjang
August 27, 2008
HDB launches latest BTO project in Bukit Panjang
By UMA SHANKARI
THE Housing and Development Board (HDB) yesterday launched its 474-
unit Senja Green project in Bukit Panjang.
The flats, offered under HDB's build-to-order (BTO) scheme, are among
8,400 BTO units planned for 2008, HDB said.
Senja Green comprises 96 two-room, 94 three- room and 284 four-room
apartments.
Two-room flats cost $82,000-$106,000, three- room flats $138,000-
$170,000 and four-room flats $211,000-$270,000.
Senja Green is bounded by Woodlands and Senja roads and Senja Way.
Come 2015, residents will also be near the upcoming Downtown Line 2
at Bukit Panjang.
Amid rising HDB prices, the BTO scheme offers first- time buyers one
of the cheapest options, market watchers say.
The flats are priced a shade lower than nearby resale flats, says
Eugene Lim, assistant vice-president of property agency ERA Asia-
Pacific.
A four-room resale flat in the area costs about $280,000, he said.
'The new flats offer buyers a variation from previous BTO projects,
which have mostly been in areas such as Sengkang and Punggol,' he
noted.
HDB launches latest BTO project in Bukit Panjang
By UMA SHANKARI
THE Housing and Development Board (HDB) yesterday launched its 474-
unit Senja Green project in Bukit Panjang.
The flats, offered under HDB's build-to-order (BTO) scheme, are among
8,400 BTO units planned for 2008, HDB said.
Senja Green comprises 96 two-room, 94 three- room and 284 four-room
apartments.
Two-room flats cost $82,000-$106,000, three- room flats $138,000-
$170,000 and four-room flats $211,000-$270,000.
Senja Green is bounded by Woodlands and Senja roads and Senja Way.
Come 2015, residents will also be near the upcoming Downtown Line 2
at Bukit Panjang.
Amid rising HDB prices, the BTO scheme offers first- time buyers one
of the cheapest options, market watchers say.
The flats are priced a shade lower than nearby resale flats, says
Eugene Lim, assistant vice-president of property agency ERA Asia-
Pacific.
A four-room resale flat in the area costs about $280,000, he said.
'The new flats offer buyers a variation from previous BTO projects,
which have mostly been in areas such as Sengkang and Punggol,' he
noted.
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