Let property assessment be more transparent
THE system of property taxation in Singapore, apart from hotels, relies on an assessment of the 'market rent' of a property called the annual value (AV). A rate (currently 10 per cent) is then fixed to the AV to arrive at the annual tax payable.
While this system has an obvious benefit of giving the taxman the upper hand to fix the level of property tax, despite market movements, it lacks transparency. The law stipulates that the property owner must pay the tax first, regardless of whether the AV was fixed correctly or not. If he disagrees with the assessment, he can object to it, and eventually go to the Valuation Review Board (VRB) for arbitration.
The channel for objection and appeal seems to provide a fair means to examine the assessment by the authorities, but it suffers two deficiencies.
First, it is time-consuming and an objection can stretch for years and still not be attended to.
Second, it is costly to start an appeal to the VRB because each case costs $200. So if a building has 100 units for appeal, it will cost $20,000.
As a start, perhaps the authorities can publish on their website the level of assessment of each year's review so property owners can know how these assessments compare with market rents.
In the long run, the Government should look into taxing property owners for the actual rents they fetch, with a right to review them if they should appear low compared with market rents.
Tuesday, December 8, 2009
CNA : HDB receives top bid of S$38.5m for Westwood Ave residential site
HDB receives top bid of S$38.5m for Westwood Ave residential site
By Channelnewsasia.com | Posted: 08 December 2009 1916 hrs
SINGAPORE: Chappelis Pte Ltd has submitted a top bid of S$38.5 million for a residential site at Westwood Avenue.
The Housing and Development Board (HDB) said it received a total 32 bids, with the lowest one at S$16.8 million from Boon Keng Development.
Other bidders of the site included Soilbuild Group, Sing Holdings, Frasers Centrepoint and Sim Lian Land.
The land parcel located in Jurong West has an area of 14,098.9 square metres and is proposed for landed housing development with a 99-year lease.
Based on the top bid of S$38.5 million, this works out to about S$254 per square foot.
CB Richard Ellis (CBRE) said it expects terrace houses that are put up for sale there to be priced around S$1.25 million to S$1.30 million each.
"The alternative is cluster housing that can appeal to home buyers who are attracted by the facilities offered," said Li Hiaw Ho, executive director, CBRE Research.
"Currently, houses in Westville and Westwood landed estates are sold in the resale market at S$850,000 to S$1.1 million each. Potential buyers could comprise locals working in the manufacturing firms in Jurong and Tuas, as well as academics at the nearby Nanyang Technological University," Li added.
HDB said it will award the tender within the next two weeks after the bids have been evaluated.
- CNA/al
By Channelnewsasia.com | Posted: 08 December 2009 1916 hrs
SINGAPORE: Chappelis Pte Ltd has submitted a top bid of S$38.5 million for a residential site at Westwood Avenue.
The Housing and Development Board (HDB) said it received a total 32 bids, with the lowest one at S$16.8 million from Boon Keng Development.
Other bidders of the site included Soilbuild Group, Sing Holdings, Frasers Centrepoint and Sim Lian Land.
The land parcel located in Jurong West has an area of 14,098.9 square metres and is proposed for landed housing development with a 99-year lease.
Based on the top bid of S$38.5 million, this works out to about S$254 per square foot.
CB Richard Ellis (CBRE) said it expects terrace houses that are put up for sale there to be priced around S$1.25 million to S$1.30 million each.
"The alternative is cluster housing that can appeal to home buyers who are attracted by the facilities offered," said Li Hiaw Ho, executive director, CBRE Research.
"Currently, houses in Westville and Westwood landed estates are sold in the resale market at S$850,000 to S$1.1 million each. Potential buyers could comprise locals working in the manufacturing firms in Jurong and Tuas, as well as academics at the nearby Nanyang Technological University," Li added.
HDB said it will award the tender within the next two weeks after the bids have been evaluated.
- CNA/al
CNA : URA releases site at Woodlands for industrial development
URA releases site at Woodlands for industrial development
By Jonathan Peeris, Channel NewsAsia | Posted: 08 December 2009 1635 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) has released a site at Woodlands Avenue 12 for sale from the Reserve List.
The plot of land, which is meant for industrial development, will have a site area of about 3.2 hectares.
It can generate a maximum gross floor area of 32,279 square metres and has a 60-year-lease period.
URA said the site can be developed for a variety of uses under "Business 1" zoning. Sites that are zoned Business 1 can be used for shops, restaurants, residences and association uses.
Under the system, a site is released for sale only if a bid with an acceptable minimum price is received.
- CNA/sc
By Jonathan Peeris, Channel NewsAsia | Posted: 08 December 2009 1635 hrs
SINGAPORE: The Urban Redevelopment Authority (URA) has released a site at Woodlands Avenue 12 for sale from the Reserve List.
The plot of land, which is meant for industrial development, will have a site area of about 3.2 hectares.
It can generate a maximum gross floor area of 32,279 square metres and has a 60-year-lease period.
URA said the site can be developed for a variety of uses under "Business 1" zoning. Sites that are zoned Business 1 can be used for shops, restaurants, residences and association uses.
Under the system, a site is released for sale only if a bid with an acceptable minimum price is received.
- CNA/sc
BT : Marina Bay Sands expects 150,000 Mice participants
Published December 8, 2009
Marina Bay Sands expects 150,000 Mice participants
By UMA SHANKARI
MARINA Bay Sands (MBS) said yesterday that it has signed up events for its Sands Expo and Convention Centre that will bring over 150,000 attendees to the integrated resort (IR).
The events cover a range of industries including engineering, legal, property, lifestyle, textiles, life sciences, machinery, manufacturing and renewable energy.
Each event, by established organisers and new players, will bring between 3,000 and 25,000 attendees to MBS.
'We are proud that Marina Bay Sands is the premium venue for meetings, incentives, conferences and exhibitions (Mice) in Asia,' said MBS chief executive Thomas Arasi. 'Marina Bay Sands has unique appeal, and the wide variety of different events is a strong sign of support for us and for Singapore.'
Next May, top lawyers will congregate at MBS for an annual conference organised by the Inter-Pacific Bar Association (IPBA). As climate change is the theme, former US vice-president Al Gore and climate change proponent will be the keynote speaker. The conference was last held here in 1994.
Other returning events that have chosen MBS include the 2010 UFI Congress, which is returning to Singapore after a 15-year absence. UFI is the global union of trade show organisers and fairground owners, as well as the major associations of the exhibition industry.
New shows that will debut at MBS include the Industrial Fabrics Association International Expo Asia 2011 trade show, the first major textile event tailored for the Asian audience.
The team behind the Sands Expo and Convention Centre is also expanding and working on more than 100 additional prospects for Mice events over the next four years, MBS said.
Michael Leven, president and chief operating officer of MBS's developer Las Vegas Sands, said in August that revenue from gaming operations is likely to make up about 75 per cent of MBS's earnings before interest, taxes, depreciation and amortisation (EBITDA) in the 'early days'.
But ultimately the plan is for gaming to contribute only about 50 per cent of EBITDA, with non-gaming components such as the Mice facilities pulling more weight down the track.
Marina Bay Sands expects 150,000 Mice participants
By UMA SHANKARI
MARINA Bay Sands (MBS) said yesterday that it has signed up events for its Sands Expo and Convention Centre that will bring over 150,000 attendees to the integrated resort (IR).
The events cover a range of industries including engineering, legal, property, lifestyle, textiles, life sciences, machinery, manufacturing and renewable energy.
Each event, by established organisers and new players, will bring between 3,000 and 25,000 attendees to MBS.
'We are proud that Marina Bay Sands is the premium venue for meetings, incentives, conferences and exhibitions (Mice) in Asia,' said MBS chief executive Thomas Arasi. 'Marina Bay Sands has unique appeal, and the wide variety of different events is a strong sign of support for us and for Singapore.'
Next May, top lawyers will congregate at MBS for an annual conference organised by the Inter-Pacific Bar Association (IPBA). As climate change is the theme, former US vice-president Al Gore and climate change proponent will be the keynote speaker. The conference was last held here in 1994.
Other returning events that have chosen MBS include the 2010 UFI Congress, which is returning to Singapore after a 15-year absence. UFI is the global union of trade show organisers and fairground owners, as well as the major associations of the exhibition industry.
New shows that will debut at MBS include the Industrial Fabrics Association International Expo Asia 2011 trade show, the first major textile event tailored for the Asian audience.
The team behind the Sands Expo and Convention Centre is also expanding and working on more than 100 additional prospects for Mice events over the next four years, MBS said.
Michael Leven, president and chief operating officer of MBS's developer Las Vegas Sands, said in August that revenue from gaming operations is likely to make up about 75 per cent of MBS's earnings before interest, taxes, depreciation and amortisation (EBITDA) in the 'early days'.
But ultimately the plan is for gaming to contribute only about 50 per cent of EBITDA, with non-gaming components such as the Mice facilities pulling more weight down the track.
BT : No asset bubble yet but HK govt is concerned
Published December 8, 2009
No asset bubble yet but HK govt is concerned
Govt says financial system sound and monitoring situation
(HONG KONG) Hong Kong's government is 'very concerned' about the risk of an asset bubble developing although a bubble is not apparent yet, Financial Secretary John Tsang told legislators yesterday, referring to a surge in the city's property prices this year.
Residential property prices have jumped 30 per cent this year, and price gains for luxury property have topped 40 per cent, as the city has drawn massive capital inflows - amounting to a record US$73 billion between October last year and Nov 13 this year - with foreign investors attracted by its low interest rates.
Wealthy mainland Chinese have also been snapping up luxury Hong Kong apartments.
Mr Tsang said that the financial system was sound and the city could cope with capital inflows and outflows but echoed Chief Executive Donald Tsang and central bank chief Norman Chan, who have also warned recently about the risk of an asset bubble developing.
'We are very concerned about the risk of an asset bubble,' the financial secretary said. 'The risk is there but it is not very apparent.'
The Hong Kong Monetary Authority recently reduced the mortgage limit for luxury property to 60 per cent from 70 per cent to try and cool the market, and mortgage demand has eased from a few months ago.
A government economist told legislators that speculation in the property market was not too heated and demand mainly user-oriented, with 90 per cent of transactions for mass-market property. Housing affordability meanwhile was above a 20-year average.
Mr Tsang said that the government would monitor the situation but did not comment on the possibility of further measures to reduce the risk of an asset bubble. -- Reuters
No asset bubble yet but HK govt is concerned
Govt says financial system sound and monitoring situation
(HONG KONG) Hong Kong's government is 'very concerned' about the risk of an asset bubble developing although a bubble is not apparent yet, Financial Secretary John Tsang told legislators yesterday, referring to a surge in the city's property prices this year.
Residential property prices have jumped 30 per cent this year, and price gains for luxury property have topped 40 per cent, as the city has drawn massive capital inflows - amounting to a record US$73 billion between October last year and Nov 13 this year - with foreign investors attracted by its low interest rates.
Wealthy mainland Chinese have also been snapping up luxury Hong Kong apartments.
Mr Tsang said that the financial system was sound and the city could cope with capital inflows and outflows but echoed Chief Executive Donald Tsang and central bank chief Norman Chan, who have also warned recently about the risk of an asset bubble developing.
'We are very concerned about the risk of an asset bubble,' the financial secretary said. 'The risk is there but it is not very apparent.'
The Hong Kong Monetary Authority recently reduced the mortgage limit for luxury property to 60 per cent from 70 per cent to try and cool the market, and mortgage demand has eased from a few months ago.
A government economist told legislators that speculation in the property market was not too heated and demand mainly user-oriented, with 90 per cent of transactions for mass-market property. Housing affordability meanwhile was above a 20-year average.
Mr Tsang said that the government would monitor the situation but did not comment on the possibility of further measures to reduce the risk of an asset bubble. -- Reuters
BT : Dubai waterfront land may be seized
Published December 8, 2009
Dubai waterfront land may be seized
(LONDON) Nakheel PJSC creditors may win the right to seize a strip of barren waterfront land the size of Manhattan if the company defaults on the US$3.5 billion bond backing the development.
Investors will be able to seek foreclosure on the property's mortgages should the Dubai World unit fail to repay the loan, according to the bond's prospectus.
The debt is due next Monday, after which Nakheel has two weeks to remedy a default. The property forms part of the Dubai Waterfront project, where Nakheel plans to build a city twice the size of Hong Kong.
Dubai World is trying to restructure US$26 billion of debt after seeking a 'standstill' agreement on liabilities, including Nakheel's sukuk bond on the waterfront parcel.
The bond is secured against a 50-year lease on 63 million square metres of land on which Nakheel plans to build the southern part of Dubai Waterfront, and a series of manmade islands in the shape of a crescent.
'The project isn't likely to happen,' said Saud Masud, a Dubai-based property analyst at UBS AG. 'I'd be very surprised if anything is built in the next five years.'
The land was valued at US$4.2 billion by Jones Lang LaSalle Inc three years ago, based on the entire project being ready by 2018, when it would be worth US$11.8 billion, the prospectus said.
Sukuk are securities that comply with Islamic law, which forbids interest-bearing bonds. The leases on the two Nakheel properties were sold to a special-purpose vehicle that issued the sukuk. They were then leased back to Nakheel, which made rental payments to stay within the law.
The sukuk's trustee, acting on behalf of noteholders, can 'take any action to enforce any of the security documents', if Nakheel doesn't redeem the bond, said the 2006 prospectus, which classifies the mortgages as security documents.
'The outcome of Nakheel will set the tone of how people will approach the question of access to assets, what a security package is really worth, and legal rights with a jurisdiction,' said Brinda Kirpalani, head of credit and convertible research at ADI Alternative Investments SA in Paris.
The waterfront project was among Dubai World's most ambitious. Dubai Waterfront posters had lined a wall of billboards about 10 metres high and stretched for at least a kilometre along Sheikh Zayed Road, which surrounds part of the land. The posters were removed in the last month. Smaller billboards with Nakheel's corporate logo remain.
Now the area is bare, except for a cluster of partly finished low-rise buildings and idle cranes for hundreds of metres. Yesterday, camels roamed part of the land. . -- Bloomberg
Dubai waterfront land may be seized
(LONDON) Nakheel PJSC creditors may win the right to seize a strip of barren waterfront land the size of Manhattan if the company defaults on the US$3.5 billion bond backing the development.
Investors will be able to seek foreclosure on the property's mortgages should the Dubai World unit fail to repay the loan, according to the bond's prospectus.
The debt is due next Monday, after which Nakheel has two weeks to remedy a default. The property forms part of the Dubai Waterfront project, where Nakheel plans to build a city twice the size of Hong Kong.
Dubai World is trying to restructure US$26 billion of debt after seeking a 'standstill' agreement on liabilities, including Nakheel's sukuk bond on the waterfront parcel.
The bond is secured against a 50-year lease on 63 million square metres of land on which Nakheel plans to build the southern part of Dubai Waterfront, and a series of manmade islands in the shape of a crescent.
'The project isn't likely to happen,' said Saud Masud, a Dubai-based property analyst at UBS AG. 'I'd be very surprised if anything is built in the next five years.'
The land was valued at US$4.2 billion by Jones Lang LaSalle Inc three years ago, based on the entire project being ready by 2018, when it would be worth US$11.8 billion, the prospectus said.
Sukuk are securities that comply with Islamic law, which forbids interest-bearing bonds. The leases on the two Nakheel properties were sold to a special-purpose vehicle that issued the sukuk. They were then leased back to Nakheel, which made rental payments to stay within the law.
The sukuk's trustee, acting on behalf of noteholders, can 'take any action to enforce any of the security documents', if Nakheel doesn't redeem the bond, said the 2006 prospectus, which classifies the mortgages as security documents.
'The outcome of Nakheel will set the tone of how people will approach the question of access to assets, what a security package is really worth, and legal rights with a jurisdiction,' said Brinda Kirpalani, head of credit and convertible research at ADI Alternative Investments SA in Paris.
The waterfront project was among Dubai World's most ambitious. Dubai Waterfront posters had lined a wall of billboards about 10 metres high and stretched for at least a kilometre along Sheikh Zayed Road, which surrounds part of the land. The posters were removed in the last month. Smaller billboards with Nakheel's corporate logo remain.
Now the area is bare, except for a cluster of partly finished low-rise buildings and idle cranes for hundreds of metres. Yesterday, camels roamed part of the land. . -- Bloomberg
ST : 32 bids for Jurong plot
Dec 8, 2009
32 bids for Jurong plot
By Joyce Teo, Property Correspondent
A 99-YEAR leasehold landed plot in Jurong West attracted a whopping 32 bids.
Chappelis put in a higher-than-expected top bid of $38.5 million or $254 per sq ft.
This was followed closely by Hoi Hup Realty and Sunway Developments' bid of $38 million or $250 psf.
Other bidders include EL Development, Soilbuild Group and Frasers Centrepoint.
The top bid for the 14,098.9 sq m site in Westwood Avenue came in higher than expected.
The site was offered for tender last year. But the government did not award it as the bids it attracted were considered too low.
32 bids for Jurong plot
By Joyce Teo, Property Correspondent
A 99-YEAR leasehold landed plot in Jurong West attracted a whopping 32 bids.
Chappelis put in a higher-than-expected top bid of $38.5 million or $254 per sq ft.
This was followed closely by Hoi Hup Realty and Sunway Developments' bid of $38 million or $250 psf.
Other bidders include EL Development, Soilbuild Group and Frasers Centrepoint.
The top bid for the 14,098.9 sq m site in Westwood Avenue came in higher than expected.
The site was offered for tender last year. But the government did not award it as the bids it attracted were considered too low.
ST : US recovery fragile
Dec 8, 2009
US recovery fragile
Federal Reserve chairman Ben Bernanke (above) on Monday tamped down speculation that essentially zero interest rates were set to rise, saying the US recovery from recession remains fragile. --PHOTO: AP
WASHINGTON - FEDERAL Reserve chairman Ben Bernanke on Monday tamped down speculation that essentially zero interest rates were set to rise, saying the US recovery from recession remains fragile.
'Though we have begun to see some improvement in economic activity, we still have some way to go before we can be assured that the recovery will be self-sustaining,' he said in a speech to the Economic Club of Washington.
Mr Bernanke said the recovery faces 'some formidable headwinds,' particularly the weak jobs market and tight credit conditions. 'My best guess at this point is that we will continue to see modest economic growth next year - sufficient to bring down the unemployment rate, but at a pace slower than we would like,' he said.
As the economy crawls out of the deep recession that began in December 2007, a stronger-than-expected November jobs report on Friday set markets abuzz with speculation that the Fed would order a rate hike sooner than previously anticipated.
Mr Bernanke concentrated on the 'headwinds' to growth in his comments, said Ian Shepherdson, chief US economist at High Frequency Economics.
'He does not sound to us like a man with his finger on the trigger, or indeed anywhere near it,' Mr Shepherdson said. -- AFP
US recovery fragile
Federal Reserve chairman Ben Bernanke (above) on Monday tamped down speculation that essentially zero interest rates were set to rise, saying the US recovery from recession remains fragile. --PHOTO: AP
WASHINGTON - FEDERAL Reserve chairman Ben Bernanke on Monday tamped down speculation that essentially zero interest rates were set to rise, saying the US recovery from recession remains fragile.
'Though we have begun to see some improvement in economic activity, we still have some way to go before we can be assured that the recovery will be self-sustaining,' he said in a speech to the Economic Club of Washington.
Mr Bernanke said the recovery faces 'some formidable headwinds,' particularly the weak jobs market and tight credit conditions. 'My best guess at this point is that we will continue to see modest economic growth next year - sufficient to bring down the unemployment rate, but at a pace slower than we would like,' he said.
As the economy crawls out of the deep recession that began in December 2007, a stronger-than-expected November jobs report on Friday set markets abuzz with speculation that the Fed would order a rate hike sooner than previously anticipated.
Mr Bernanke concentrated on the 'headwinds' to growth in his comments, said Ian Shepherdson, chief US economist at High Frequency Economics.
'He does not sound to us like a man with his finger on the trigger, or indeed anywhere near it,' Mr Shepherdson said. -- AFP
ST : Dubai World may sell assets
Dec 8, 2009
Dubai World may sell assets
DUBAI - DUBAI World, the cash-strapped conglomerate at the center of Dubai's debt crisis, appears set for an unaccustomed period of retrenchment after the emirate's top finance official said Monday the company may need to change course and unload assets as it struggles to pay back lenders.
What eventually gets sold remains uncertain. Clearer is the city-state's position that the government itself won't be responsible for Dubai World's debts, renewing questions about its backing of other state-run companies.
'Like any company that has commitments, part of getting liquidity is selling some assets. Of course local or foreign assets,' Dubai Finance Department Director-General Abdul Rahman al-Saleh said in an interview aired by Arab satellite channel Al-Jazeera on Monday.
'These are assets of a company, not assets of a government,' he said, adding later that the restructuring was aimed at keeping Dubai World viable going forward.
The comments appeared to cement concerns that Dubai was washing its hands of debts racked up by companies it created and backed during the city-state's frenetic boom years earlier this decade.
Easy money and unbridled ambition transformed the tiny sheikdom from desert hamlet to pulsing Arab boomtown. Dubai's main bourse fell 5.8 per cent by close of trading on Monday, with stocks sinking to their lowest level in more than four months. -- AP
Dubai World may sell assets
DUBAI - DUBAI World, the cash-strapped conglomerate at the center of Dubai's debt crisis, appears set for an unaccustomed period of retrenchment after the emirate's top finance official said Monday the company may need to change course and unload assets as it struggles to pay back lenders.
What eventually gets sold remains uncertain. Clearer is the city-state's position that the government itself won't be responsible for Dubai World's debts, renewing questions about its backing of other state-run companies.
'Like any company that has commitments, part of getting liquidity is selling some assets. Of course local or foreign assets,' Dubai Finance Department Director-General Abdul Rahman al-Saleh said in an interview aired by Arab satellite channel Al-Jazeera on Monday.
'These are assets of a company, not assets of a government,' he said, adding later that the restructuring was aimed at keeping Dubai World viable going forward.
The comments appeared to cement concerns that Dubai was washing its hands of debts racked up by companies it created and backed during the city-state's frenetic boom years earlier this decade.
Easy money and unbridled ambition transformed the tiny sheikdom from desert hamlet to pulsing Arab boomtown. Dubai's main bourse fell 5.8 per cent by close of trading on Monday, with stocks sinking to their lowest level in more than four months. -- AP
ST : Too soon to declare lasting recovery
Dec 8, 2009
Too soon to declare lasting recovery
WASHINGTON - FEDERAL Reserve Chairman Ben Bernanke warned Monday that it is too soon to know whether the economic recovery will last and again pledged to hold rates at record-low levels for an 'extended period.'
The Fed chief's speech to the Economic Club of Washington made clear he thinks the economy will struggle even as it recovers from the recession. He said the economy confronts 'formidable headwinds' - including a weak job market, cautious consumers and tight credit. Those forces 'seem likely to keep the pace of expansion moderate,' he said.
The central bank has leeway to keep rates low because inflation is under control and is expected to stay tame because of the economy's weakness. Some private forecasters even fear that the recovery could fizzle late next year as government stimulus fades.
Asked about prospects for such a 'double dip' recession, Mr Bernanke said he could not guarantee it won't happen. He stuck with his forecast for a moderate recovery but said a 'vigorous snapback' is less likely.
Mr Bernanke said he expects 'modest' economic growth next year. That should help push down the nation's unemployment rate - now at 10 per cent - 'but at a pace slower than we would like,' he acknowledged.
Under one Fed forecast released last month, the jobless rate would remain high next year - ranging from 9.3 to 9.7 per cent. The Fed has warned that it could take five or six years for the job market to return to normal. -- AP
Too soon to declare lasting recovery
WASHINGTON - FEDERAL Reserve Chairman Ben Bernanke warned Monday that it is too soon to know whether the economic recovery will last and again pledged to hold rates at record-low levels for an 'extended period.'
The Fed chief's speech to the Economic Club of Washington made clear he thinks the economy will struggle even as it recovers from the recession. He said the economy confronts 'formidable headwinds' - including a weak job market, cautious consumers and tight credit. Those forces 'seem likely to keep the pace of expansion moderate,' he said.
The central bank has leeway to keep rates low because inflation is under control and is expected to stay tame because of the economy's weakness. Some private forecasters even fear that the recovery could fizzle late next year as government stimulus fades.
Asked about prospects for such a 'double dip' recession, Mr Bernanke said he could not guarantee it won't happen. He stuck with his forecast for a moderate recovery but said a 'vigorous snapback' is less likely.
Mr Bernanke said he expects 'modest' economic growth next year. That should help push down the nation's unemployment rate - now at 10 per cent - 'but at a pace slower than we would like,' he acknowledged.
Under one Fed forecast released last month, the jobless rate would remain high next year - ranging from 9.3 to 9.7 per cent. The Fed has warned that it could take five or six years for the job market to return to normal. -- AP
ST : Asset bubble concerns HK
Dec 7, 2009
Asset bubble concerns HK
HONG KONG - HONG Kong's government is 'very concerned' about the risk of an asset bubble developing although a bubble is not apparent yet, Financial Secretary John Tsang told legislators on Monday.
Property prices in the city have surged 30 per cent this year, and price gains for luxury property have topped 40 percent, as the city has attracted excess global liquidity and wealthy mainland Chinese have been snapping up luxury apartments.
Mr Tsang said the financial system was sound and the city could cope with capital inflows and outflows but echoed other city officials who have warned about the risk of an asset bubble developing.
'We are very concerned about the risk of an asset bubble,' Mr Tsang said. 'The risk is there but it is not very apparent.' -- REUTERS
Asset bubble concerns HK
HONG KONG - HONG Kong's government is 'very concerned' about the risk of an asset bubble developing although a bubble is not apparent yet, Financial Secretary John Tsang told legislators on Monday.
Property prices in the city have surged 30 per cent this year, and price gains for luxury property have topped 40 percent, as the city has attracted excess global liquidity and wealthy mainland Chinese have been snapping up luxury apartments.
Mr Tsang said the financial system was sound and the city could cope with capital inflows and outflows but echoed other city officials who have warned about the risk of an asset bubble developing.
'We are very concerned about the risk of an asset bubble,' Mr Tsang said. 'The risk is there but it is not very apparent.' -- REUTERS
BT : It's getting hotter at Sentosa Cove
Published December 7, 2009
It's getting hotter at Sentosa Cove
More over-$10m home sales in Jan-Oct than in previous four years
By KALPANA RASHIWALA
(SINGAPORE) Homes in Sentosa Cove drew strong interest from high-net- worth investors in the first 10 months of this year - more properties costing $10 million and above were transacted during this period than in the preceding four years.
Property consultancy Savills Singapore said that its analysis of URA Realis data as at Dec 1, also shows that September and October this year were particularly active months.
In fact, the three biggest ever residential transactions in Sentosa Cove - at $20.18 million, $22 million and $30 million respectively - took place during this period. The largest involved a completed bungalow at Ocean Drive which changed hands in the secondary market in October. The $30 million sale price works out to $1,753 per square foot, based on a land area of 17,115 square feet.
BT understands that the bungalow was purchased by two Chinese citizens who are also Singapore permanent residents. The seller is a locally incorporated company.
The second and third largest deals involved subsales of two villas at Paradise Island for $22 million and $20.18 million in September.
Overall, Savills' analysis shows that the number of caveats lodged for homes in Sentosa Cove costing $10 million and above shot up to 24 in the first 10 months of 2009 - from just 17 between Q4 2004 and Q4 2008.
Over half or 14 of the 24 deals were sealed in September and October. The firm said that a more positive global economic outlook at the time, before the recent news of Dubai World's debt problems, gave confidence to investors to make big-ticket purchases such as super-luxury homes.
Other above-$10 million homes sold in the two months include four condo units at SC Global's Seven Palms Sentosa Cove; a villa at Sandy Island that fetched $16.57 million or $1,950 psf of land area in the resale market; and a bungalow at Treasure Island which sold for $14.25 million or $1,662 psf, also in the resale market.
Savills said that the steady recovery of the Singapore economy in the past few months and the Republic's renewed prominence on the global financial map have helped fuel optimism among investors to park monies here.
Singapore is also a 'relatively cheaper' destination to buy luxury properties compared with, say, Hong Kong. Luxury property prices here are still below their peak levels.
Savills director of investment sales & prestige homes Steven Ming offered another reason for the surge in transactions in October: according to anecdotal evidence, some high-networth mainland Chinese were in Singapore shopping for properties during their National Day Golden Week holiday.
Across all price bands, the total number of caveats lodged for private homes in Sentosa Cove shot up from 72 in the whole of last year to 133 in the first 10 months of 2009. Even so, the latest figure is just 26 per cent of the peak 516 transactions in 2006.
Savills said that the bulk of the 2009 transactions were in the subsale and resale markets. Primary market deals involving developer sales accounted for just 9 per cent of caveats, reflecting the limited release of new projects this year.
A breakdown of 2009 transactions shows that the number of caveats (both primary and secondary markets) lodged rose from nine in Q1, to 49 in Q2, and 51 in Q3. In October, there were 24 deals - the highest monthly figure for 2009 - bucking the trend of slowing property sales seen generally in Singapore.
Savills credits the approaching opening of the integrated resorts (IRs) with helping to generate a renewal of interest in the super-luxury residential market.
Prices also appreciated with the increase in transactions - the average unit price for landed homes rose from the recent low of $1,150 psf of land area in Q1 this year, to $1,533 psf in Q3 - up 33 per cent. It was up 12.2 per cent from September to $1,647 psf in October. But this figure was still about 38 per cent below the peak figure of $2,643 psf in Q1 2008.
Condominium prices in Sentosa Cove have also firmed. The average price climbed from a low of $1,200 psf in Q4 2008, to $1,804 psf in Q3 this year and $2,117 psf in September before easing to $2,030 psf in October.
The latest figure is 16.5 per cent shy of the $2,431 psf high seen in Q1 last year. Savills said that the October figure was shored up by four caveats lodged for units at Seven Palms Sentosa Cove with prices ranging from $3,091 to $3,353 psf.
Excluding these transactions, the average price for the month would have slipped to $1,658 psf.
DTZ executive director (consulting) Ong Choon Fah reckons that Sentosa Cove prices will continue to appreciate next year, although a lot will depend on the wider property market. 'Prices in Sentosa Cove could be more volatile than in the prime districts on the mainland because Sentosa Cove buyers are relatively more investment driven than motivated by owner occupation, compared to the prime districts. When markets go up or down markedly, investors may be more inclined to sell than owner-occupiers, whether it is to cut loss or realise a gain,' she added.
It's getting hotter at Sentosa Cove
More over-$10m home sales in Jan-Oct than in previous four years
By KALPANA RASHIWALA
(SINGAPORE) Homes in Sentosa Cove drew strong interest from high-net- worth investors in the first 10 months of this year - more properties costing $10 million and above were transacted during this period than in the preceding four years.
Property consultancy Savills Singapore said that its analysis of URA Realis data as at Dec 1, also shows that September and October this year were particularly active months.
In fact, the three biggest ever residential transactions in Sentosa Cove - at $20.18 million, $22 million and $30 million respectively - took place during this period. The largest involved a completed bungalow at Ocean Drive which changed hands in the secondary market in October. The $30 million sale price works out to $1,753 per square foot, based on a land area of 17,115 square feet.
BT understands that the bungalow was purchased by two Chinese citizens who are also Singapore permanent residents. The seller is a locally incorporated company.
The second and third largest deals involved subsales of two villas at Paradise Island for $22 million and $20.18 million in September.
Overall, Savills' analysis shows that the number of caveats lodged for homes in Sentosa Cove costing $10 million and above shot up to 24 in the first 10 months of 2009 - from just 17 between Q4 2004 and Q4 2008.
Over half or 14 of the 24 deals were sealed in September and October. The firm said that a more positive global economic outlook at the time, before the recent news of Dubai World's debt problems, gave confidence to investors to make big-ticket purchases such as super-luxury homes.
Other above-$10 million homes sold in the two months include four condo units at SC Global's Seven Palms Sentosa Cove; a villa at Sandy Island that fetched $16.57 million or $1,950 psf of land area in the resale market; and a bungalow at Treasure Island which sold for $14.25 million or $1,662 psf, also in the resale market.
Savills said that the steady recovery of the Singapore economy in the past few months and the Republic's renewed prominence on the global financial map have helped fuel optimism among investors to park monies here.
Singapore is also a 'relatively cheaper' destination to buy luxury properties compared with, say, Hong Kong. Luxury property prices here are still below their peak levels.
Savills director of investment sales & prestige homes Steven Ming offered another reason for the surge in transactions in October: according to anecdotal evidence, some high-networth mainland Chinese were in Singapore shopping for properties during their National Day Golden Week holiday.
Across all price bands, the total number of caveats lodged for private homes in Sentosa Cove shot up from 72 in the whole of last year to 133 in the first 10 months of 2009. Even so, the latest figure is just 26 per cent of the peak 516 transactions in 2006.
Savills said that the bulk of the 2009 transactions were in the subsale and resale markets. Primary market deals involving developer sales accounted for just 9 per cent of caveats, reflecting the limited release of new projects this year.
A breakdown of 2009 transactions shows that the number of caveats (both primary and secondary markets) lodged rose from nine in Q1, to 49 in Q2, and 51 in Q3. In October, there were 24 deals - the highest monthly figure for 2009 - bucking the trend of slowing property sales seen generally in Singapore.
Savills credits the approaching opening of the integrated resorts (IRs) with helping to generate a renewal of interest in the super-luxury residential market.
Prices also appreciated with the increase in transactions - the average unit price for landed homes rose from the recent low of $1,150 psf of land area in Q1 this year, to $1,533 psf in Q3 - up 33 per cent. It was up 12.2 per cent from September to $1,647 psf in October. But this figure was still about 38 per cent below the peak figure of $2,643 psf in Q1 2008.
Condominium prices in Sentosa Cove have also firmed. The average price climbed from a low of $1,200 psf in Q4 2008, to $1,804 psf in Q3 this year and $2,117 psf in September before easing to $2,030 psf in October.
The latest figure is 16.5 per cent shy of the $2,431 psf high seen in Q1 last year. Savills said that the October figure was shored up by four caveats lodged for units at Seven Palms Sentosa Cove with prices ranging from $3,091 to $3,353 psf.
Excluding these transactions, the average price for the month would have slipped to $1,658 psf.
DTZ executive director (consulting) Ong Choon Fah reckons that Sentosa Cove prices will continue to appreciate next year, although a lot will depend on the wider property market. 'Prices in Sentosa Cove could be more volatile than in the prime districts on the mainland because Sentosa Cove buyers are relatively more investment driven than motivated by owner occupation, compared to the prime districts. When markets go up or down markedly, investors may be more inclined to sell than owner-occupiers, whether it is to cut loss or realise a gain,' she added.
BT : Foreign fund flows into Asia equities back to 2007 levels
Published December 7, 2009
Foreign fund flows into Asia equities back to 2007 levels
China is biggest magnet, followed by Hong Kong and India
By NEIL BEHRMANN
IN LONDON
FOREIGN flows into Asian equities are back to 2007 boom levels, albeit in recent weeks they have begun to abate.
Market interest: According to MSCI indices, emerging Asian markets have soared by a whopping 93 per cent in the past 12 months
The Dubai crisis, growing market volatility, exceptional gains and consequently unexceptional value, have made foreign investors wary. China has been the inflow leader by far, but Japan is still experiencing large net outflows from its equity market, although the size of the sales is declining.
Data from EPFR Global shows that net global fund inflows into China equities reached US$11.9 billion, year to date to Dec 2.
This exceeds net inflows of US$2.7 billion in 2007 and is a massive reversal of the US$3.6 billion net outflows in 2008. The equity holdings of global funds in China have soared to US$134.7 billion at the beginning of December, beating the October 2007 heights of US$130 billion and treble the levels of China's bear market lows a year ago. Similar flow trends are apparent with Hong Kong and India.
In comparison, flows to Singapore have been more conservative. After net inflows of US$2.3 billion in 2007, there were net outflows of US$2.5 billion in 2008, but net inflows of only US$820 million so far this year.
Following steep net outflows in 2008, the reversal of increasingly bullish foreign fund managers has played a significant role in boosting equity prices in the region.
Therein lies the danger of a market setback, as any foreign withdrawal from markets, has in the past caused sharp share price declines. Experienced analysts note that in emerging markets, it has been proven time and time again that the safest strategy is to 'sell too soon', in other words, curb greed and take profits while the markets are still rising. Emerging markets do not have the liquidity and trading depth of Wall Street, London and Tokyo, so it is difficult to exit after they peak.
Emerging market, mutual, pension and hedge funds that poured money into Asia, Eastern Europe, Latin America and Africa, caused share and bond prices to soar to unexpected heights in previous bull markets. But they soon found that it was far easier to enter an emerging market in an upturn than to sell in weak markets after they peaked.
According to MSCI indices, emerging Asian markets have soared by a whopping 93 per cent in the past 12 months ie from levels around the region's bear market nadir.
China is up by 82 per cent. Following such a surge, foreign fund managers who tend to buy the larger well known companies, are now finding it difficult to pick bargain stocks. China's price earnings ratio is 19, according to Thomson Reuters, Hong Kong's Hang Seng index is 21; Singapore, 19; South Korea, 18; Taiwan, 28; and India, 22. Smaller markets such as Malaysia, Indonesia and the Philippines are also trading on PEs of near 20.
Japan has appreciated from its low point, but the total net outflows since the beginning of 2007 have been a staggering US$35 billion, according to EPFR Global data. Foreign investors are concerned about deflation and the high yen, but contrarians are beginning to seek value in Japan which has experienced good rallies in the past.
Global fund holdings have shrunk to US$92 billion at the beginning of December compared with US$155 billion in January 2007. A deterrent, given the uncertain earnings prospects, however, is the historic PE of 33.
Despite the above concerns, the majority of investment bank strategists favour Asia in 2010 on the grounds that interest rates will remain low and profits will head northwards.
Bears such as Templeton Asset Management chairman Mark Mobius warn that Asia and other emerging markets are overbought and are due for a setback. Dubai is a warning signal, he believes.
Besides Dubai, Dr Mobius expects a wave of initial public offerings that will add to the supply of shares and cause a downturn in the markets.
Another crucial factor is the outlook for the US dollar. The vast majority of dealers and currency analysts are expecting a further decline in the US unit. As a result, hedge funds and other players have borrowed the greenback to place money in emerging markets and risky assets such as commodities.
A sharp rise in the dollar last Friday, following better than expected US employment figures, was a warning signal that an oversold dollar could easily rally, forcing the currency speculators to reverse their positions. The fallout could hit emerging markets, some analysts warn.
Foreign fund flows into Asia equities back to 2007 levels
China is biggest magnet, followed by Hong Kong and India
By NEIL BEHRMANN
IN LONDON
FOREIGN flows into Asian equities are back to 2007 boom levels, albeit in recent weeks they have begun to abate.
Market interest: According to MSCI indices, emerging Asian markets have soared by a whopping 93 per cent in the past 12 months
The Dubai crisis, growing market volatility, exceptional gains and consequently unexceptional value, have made foreign investors wary. China has been the inflow leader by far, but Japan is still experiencing large net outflows from its equity market, although the size of the sales is declining.
Data from EPFR Global shows that net global fund inflows into China equities reached US$11.9 billion, year to date to Dec 2.
This exceeds net inflows of US$2.7 billion in 2007 and is a massive reversal of the US$3.6 billion net outflows in 2008. The equity holdings of global funds in China have soared to US$134.7 billion at the beginning of December, beating the October 2007 heights of US$130 billion and treble the levels of China's bear market lows a year ago. Similar flow trends are apparent with Hong Kong and India.
In comparison, flows to Singapore have been more conservative. After net inflows of US$2.3 billion in 2007, there were net outflows of US$2.5 billion in 2008, but net inflows of only US$820 million so far this year.
Following steep net outflows in 2008, the reversal of increasingly bullish foreign fund managers has played a significant role in boosting equity prices in the region.
Therein lies the danger of a market setback, as any foreign withdrawal from markets, has in the past caused sharp share price declines. Experienced analysts note that in emerging markets, it has been proven time and time again that the safest strategy is to 'sell too soon', in other words, curb greed and take profits while the markets are still rising. Emerging markets do not have the liquidity and trading depth of Wall Street, London and Tokyo, so it is difficult to exit after they peak.
Emerging market, mutual, pension and hedge funds that poured money into Asia, Eastern Europe, Latin America and Africa, caused share and bond prices to soar to unexpected heights in previous bull markets. But they soon found that it was far easier to enter an emerging market in an upturn than to sell in weak markets after they peaked.
According to MSCI indices, emerging Asian markets have soared by a whopping 93 per cent in the past 12 months ie from levels around the region's bear market nadir.
China is up by 82 per cent. Following such a surge, foreign fund managers who tend to buy the larger well known companies, are now finding it difficult to pick bargain stocks. China's price earnings ratio is 19, according to Thomson Reuters, Hong Kong's Hang Seng index is 21; Singapore, 19; South Korea, 18; Taiwan, 28; and India, 22. Smaller markets such as Malaysia, Indonesia and the Philippines are also trading on PEs of near 20.
Japan has appreciated from its low point, but the total net outflows since the beginning of 2007 have been a staggering US$35 billion, according to EPFR Global data. Foreign investors are concerned about deflation and the high yen, but contrarians are beginning to seek value in Japan which has experienced good rallies in the past.
Global fund holdings have shrunk to US$92 billion at the beginning of December compared with US$155 billion in January 2007. A deterrent, given the uncertain earnings prospects, however, is the historic PE of 33.
Despite the above concerns, the majority of investment bank strategists favour Asia in 2010 on the grounds that interest rates will remain low and profits will head northwards.
Bears such as Templeton Asset Management chairman Mark Mobius warn that Asia and other emerging markets are overbought and are due for a setback. Dubai is a warning signal, he believes.
Besides Dubai, Dr Mobius expects a wave of initial public offerings that will add to the supply of shares and cause a downturn in the markets.
Another crucial factor is the outlook for the US dollar. The vast majority of dealers and currency analysts are expecting a further decline in the US unit. As a result, hedge funds and other players have borrowed the greenback to place money in emerging markets and risky assets such as commodities.
A sharp rise in the dollar last Friday, following better than expected US employment figures, was a warning signal that an oversold dollar could easily rally, forcing the currency speculators to reverse their positions. The fallout could hit emerging markets, some analysts warn.
BT : Foreign buyers' share of Sentosa Cove homes on the rise
Published December 7, 2009
Foreign buyers' share of Sentosa Cove homes on the rise
Proportion hits 43% in first 10 months, from 39% in '07-'08
By KALPANA RASHIWALA
(SINGAPORE) Foreigners, including permanent residents, picked up nearly 43 per cent of the homes transacted in Sentosa Cove in the first 10 months of this year, up from about 38-39 per cent in 2007 and 2008.
A Savills analysis of caveats data captured by URA's Realis system also showed that buyers from 'Western' countries - which it defined as those from Europe, North America, South America, Australia and New Zealand - made up four out of every 10 foreign buyers in Sentosa Cove between the fourth quarter of 2004 and Q4 2009.
In that period, such buyers were more active in Sentosa Cove than in the other sought-after districts of 1, 9, 10 and 11.
DTZ executive director (consulting) Ong Choon Fah observes: 'Buyers from Western countries appreciate the lifestyle elements in residential developments a lot more. In their home markets, units in a project that face the water or bay can sometimes be priced double that of units that don't have such a view.'
Savills found a total of 1,297 caveats lodged for purchases of private homes in Sentosa Cove over the five-year period, of which 487 (or 37.5 per cent) were from foreigners (including permanent residents). Singaporeans bought 705 units, giving them a 54 per cent share.
In the first 10 months of 2009, 133 caveats were lodged for homes in Sentosa Cove. Of these, 57 were bought by foreign buyers, with Malaysians having the largest share of 25 per cent or 14 caveats, followed by Indonesians, UK citizens, mainland Chinese and Hongkongers.
DTZ's Mrs Ong said: 'What Sentosa Cove offers is very unique. It's as close to waterfront housing as you'll get in Singapore, plus it's a gated community, with limited car access to outsiders. Sentosa Cove used to be like a construction yard. Now, however, most of the homes have been developed, and foreigners may be even more inclined to buy.'
The additional draw to Sentosa Cove among foreign buyers is that it is the only location in Singapore where foreigners who are not Singapore permanent residents are allowed to purchase landed property.
However, they must still seek permission from the Land Dealings (Approval) Unit under the Singapore Land Authority.
The approval time for Sentosa Cove has been specially fast-tracked to 48 hours - compared with about four weeks for applications by PRs seeking approval to buy landed homes on mainland Singapore.
Mrs Ong reckons that there is scope for the share of foreign buying to increase further next year, with the opening of the two IRs.
Also, the completion of Phase One of Marina Bay Financial Centre will strengthen Singapore's positioning as a global business centre.
'When high networths buy, they talk about their investments to their clique of people. That can generate further interest in Sentosa Cove,' she says.
Steven Ming, Savills director of investment sales & prestige homes, says that foreign buyers' presence is a critical factor for prices of luxury homes in Singapore, including at Sentosa Cove.
He says: 'If we look back, in 2006-2007 when foreigners were buying in Singapore, luxury prices ran up quite a bit.
'At the start of this year, there was very little foreign interest in the Singapore property market and it was mostly the mass and mid-segments that were doing well.
'In the past few months, however, foreign interest has returned and we're seeing a pick-up in prices on Sentosa Cove.'
Foreign buyers' share of Sentosa Cove homes on the rise
Proportion hits 43% in first 10 months, from 39% in '07-'08
By KALPANA RASHIWALA
(SINGAPORE) Foreigners, including permanent residents, picked up nearly 43 per cent of the homes transacted in Sentosa Cove in the first 10 months of this year, up from about 38-39 per cent in 2007 and 2008.
A Savills analysis of caveats data captured by URA's Realis system also showed that buyers from 'Western' countries - which it defined as those from Europe, North America, South America, Australia and New Zealand - made up four out of every 10 foreign buyers in Sentosa Cove between the fourth quarter of 2004 and Q4 2009.
In that period, such buyers were more active in Sentosa Cove than in the other sought-after districts of 1, 9, 10 and 11.
DTZ executive director (consulting) Ong Choon Fah observes: 'Buyers from Western countries appreciate the lifestyle elements in residential developments a lot more. In their home markets, units in a project that face the water or bay can sometimes be priced double that of units that don't have such a view.'
Savills found a total of 1,297 caveats lodged for purchases of private homes in Sentosa Cove over the five-year period, of which 487 (or 37.5 per cent) were from foreigners (including permanent residents). Singaporeans bought 705 units, giving them a 54 per cent share.
In the first 10 months of 2009, 133 caveats were lodged for homes in Sentosa Cove. Of these, 57 were bought by foreign buyers, with Malaysians having the largest share of 25 per cent or 14 caveats, followed by Indonesians, UK citizens, mainland Chinese and Hongkongers.
DTZ's Mrs Ong said: 'What Sentosa Cove offers is very unique. It's as close to waterfront housing as you'll get in Singapore, plus it's a gated community, with limited car access to outsiders. Sentosa Cove used to be like a construction yard. Now, however, most of the homes have been developed, and foreigners may be even more inclined to buy.'
The additional draw to Sentosa Cove among foreign buyers is that it is the only location in Singapore where foreigners who are not Singapore permanent residents are allowed to purchase landed property.
However, they must still seek permission from the Land Dealings (Approval) Unit under the Singapore Land Authority.
The approval time for Sentosa Cove has been specially fast-tracked to 48 hours - compared with about four weeks for applications by PRs seeking approval to buy landed homes on mainland Singapore.
Mrs Ong reckons that there is scope for the share of foreign buying to increase further next year, with the opening of the two IRs.
Also, the completion of Phase One of Marina Bay Financial Centre will strengthen Singapore's positioning as a global business centre.
'When high networths buy, they talk about their investments to their clique of people. That can generate further interest in Sentosa Cove,' she says.
Steven Ming, Savills director of investment sales & prestige homes, says that foreign buyers' presence is a critical factor for prices of luxury homes in Singapore, including at Sentosa Cove.
He says: 'If we look back, in 2006-2007 when foreigners were buying in Singapore, luxury prices ran up quite a bit.
'At the start of this year, there was very little foreign interest in the Singapore property market and it was mostly the mass and mid-segments that were doing well.
'In the past few months, however, foreign interest has returned and we're seeing a pick-up in prices on Sentosa Cove.'
BT : Marina Bay gaining popularity
Published December 7, 2009
Marina Bay gaining popularity
WMRT organisers in talks for event here; Extreme Sailing Series kicks off soon
By VINCENT WEE
THE Marina Bay area could soon be on its way to fulfilling some of its sporting and glamour potential with at least one high-profile international standard sailing event organiser holding an event there and another 'in discussions' to do so.
Water fun: Six teams will be showcasing their cutting edge Extreme 40 boats in the bay between the Flyer and the Marina Barrage from Dec 11-15
This past weekend, the RM1.57 million (S$645,000) Monsoon Cup in Terengganu closes out the nine-leg World Match Racing Tour (WMRT) - which Malaysian tycoon Patrick Lim recently bought into - and the organisers are setting their sights firmly on a similar or bigger event in Singapore.
Mr Lim and other investors have acquired the rights holder ProMatch Tour Ltd from F10 Holdings Ltd through Hong Kong-based consortium Regal Faith Ltd. The WMRT features a boat-against-boat match racing format similar to the America's Cup except that it is part of a circuit that currently has nine venues including France, Germany, Korea, Portugal, Sweden, Switzerland, Denmark, Bermuda and Malaysia.
'We are currently in early stage discussion with the Singapore Tourism Board and Singapore Sports Council for a WMRT event at the Marina Bay,' said Monsoon Cup adviser Peter Gilmour. Speaking optimistically about the potential race venue as a prime example of a plug-and-play site, Mr Gilmour, who is also acting president of WMRT organisers Promatch Tour said: 'In fact, the Marina Bay seems to be a natural venue, it could be a case of 'just add the boats'.'
'Talks are going well and we plan to be in Singapore in January/ February next year to test the wind conditions,' he added.
'We are confident of selecting one more new venue to the WMRT in 2010, bringing the total number of Tour stages to 10 from the current nine,' said tour director Craig Mitchell. Organisers hope to add two significant venues per year, for an ideal target of 16 worldwide within the next few years. Promatch is in advanced stages of talks with seven new venues, including three in Asia, Mr Gilmour said.
Selection of the venues is relatively straightforward, Mr Mitchell explained. It should have a 500 metre diameter circle of water in order to create a race track and a good shore side vantage point for spectators, conditions Marina Bay easily meets. Technical and communications support to promoters to cater to the media such as live broadcast and providing daily news updates on the race progress are also important elements.
There is also the financial element involved as the tour works on a franchise model quite similar to F1 car racing and each commitment is currently for a period of eight years. 'The cost to operate a new WMRT event is approximately US$5-8 million, depending on requirements of individual venue. The cost includes prize money, television coverage, local event set-up costs,' said Mr Gilmour. 'There are many Asian countries with beautiful coastlines but they might not know how to promote it to the world. Naturally one advantage of having an Asian owner (of the WMRT) is the increased potential for expansion within the Asian region, particularly at this time when we are seeing an awakening by Asian countries to the pleasures and beauty of competitive sailing and waterfront lifestyles,' he noted. 'Our focus for the long term is to develop world-class venues around the world including Asia.'
Balancing off against this is the corporate sponsorship model of the Extreme Sailing Series where this week, six teams including two Oman teams and a China team featuring local hotshot sailor Tan Wearn Haw, will be showcasing their cutting edge Extreme 40 boats in the bay at the area between the Flyer and the Marina Barrage from Dec 11-15.
The Extreme Sailing Series Asia, the new Asian leg of the OC Events-organised Extreme Sailing Series which has been an outstanding success in Europe since starting out there in 2005, comes to Singapore as the second stop of its three-stop tour after blowing away the corporate crowd in the middle of Hong Kong's busy Victoria Harbour. After Singapore, the inaugural Asian series continues in Oman in February.
The series' popularity is rapidly evolving as corporates warm to the concept and the possibility of a fourth venue is being explored, with a plan to grow the series to a six-event series by 2011/12.
Marina Bay gaining popularity
WMRT organisers in talks for event here; Extreme Sailing Series kicks off soon
By VINCENT WEE
THE Marina Bay area could soon be on its way to fulfilling some of its sporting and glamour potential with at least one high-profile international standard sailing event organiser holding an event there and another 'in discussions' to do so.
Water fun: Six teams will be showcasing their cutting edge Extreme 40 boats in the bay between the Flyer and the Marina Barrage from Dec 11-15
This past weekend, the RM1.57 million (S$645,000) Monsoon Cup in Terengganu closes out the nine-leg World Match Racing Tour (WMRT) - which Malaysian tycoon Patrick Lim recently bought into - and the organisers are setting their sights firmly on a similar or bigger event in Singapore.
Mr Lim and other investors have acquired the rights holder ProMatch Tour Ltd from F10 Holdings Ltd through Hong Kong-based consortium Regal Faith Ltd. The WMRT features a boat-against-boat match racing format similar to the America's Cup except that it is part of a circuit that currently has nine venues including France, Germany, Korea, Portugal, Sweden, Switzerland, Denmark, Bermuda and Malaysia.
'We are currently in early stage discussion with the Singapore Tourism Board and Singapore Sports Council for a WMRT event at the Marina Bay,' said Monsoon Cup adviser Peter Gilmour. Speaking optimistically about the potential race venue as a prime example of a plug-and-play site, Mr Gilmour, who is also acting president of WMRT organisers Promatch Tour said: 'In fact, the Marina Bay seems to be a natural venue, it could be a case of 'just add the boats'.'
'Talks are going well and we plan to be in Singapore in January/ February next year to test the wind conditions,' he added.
'We are confident of selecting one more new venue to the WMRT in 2010, bringing the total number of Tour stages to 10 from the current nine,' said tour director Craig Mitchell. Organisers hope to add two significant venues per year, for an ideal target of 16 worldwide within the next few years. Promatch is in advanced stages of talks with seven new venues, including three in Asia, Mr Gilmour said.
Selection of the venues is relatively straightforward, Mr Mitchell explained. It should have a 500 metre diameter circle of water in order to create a race track and a good shore side vantage point for spectators, conditions Marina Bay easily meets. Technical and communications support to promoters to cater to the media such as live broadcast and providing daily news updates on the race progress are also important elements.
There is also the financial element involved as the tour works on a franchise model quite similar to F1 car racing and each commitment is currently for a period of eight years. 'The cost to operate a new WMRT event is approximately US$5-8 million, depending on requirements of individual venue. The cost includes prize money, television coverage, local event set-up costs,' said Mr Gilmour. 'There are many Asian countries with beautiful coastlines but they might not know how to promote it to the world. Naturally one advantage of having an Asian owner (of the WMRT) is the increased potential for expansion within the Asian region, particularly at this time when we are seeing an awakening by Asian countries to the pleasures and beauty of competitive sailing and waterfront lifestyles,' he noted. 'Our focus for the long term is to develop world-class venues around the world including Asia.'
Balancing off against this is the corporate sponsorship model of the Extreme Sailing Series where this week, six teams including two Oman teams and a China team featuring local hotshot sailor Tan Wearn Haw, will be showcasing their cutting edge Extreme 40 boats in the bay at the area between the Flyer and the Marina Barrage from Dec 11-15.
The Extreme Sailing Series Asia, the new Asian leg of the OC Events-organised Extreme Sailing Series which has been an outstanding success in Europe since starting out there in 2005, comes to Singapore as the second stop of its three-stop tour after blowing away the corporate crowd in the middle of Hong Kong's busy Victoria Harbour. After Singapore, the inaugural Asian series continues in Oman in February.
The series' popularity is rapidly evolving as corporates warm to the concept and the possibility of a fourth venue is being explored, with a plan to grow the series to a six-event series by 2011/12.
BT : Mapletree strengthens ties with Itochu
Published December 7, 2009
Mapletree strengthens ties with Itochu
The partnership aims to develop logistics properties
By VINCENT WEE
MAPLETREE Investments has strengthened its partnership with Itochu Corporation by teaming up to develop logistics properties in Japan.
It has signed a memorandum of understanding (MOU) to form a joint venture to undertake primarily build-to-suit development projects for logistics tenants in Japan, Mapletree said yesterday.
The partnership aims to develop US$300 million to US$500 million worth of logistics properties over the next 24 months.
The two companies also cemented their strategic alliance by extending for a further two years through another MOU to collaborate on investment and development of logistics, retail, industrial and commercial real estate projects in Japan, Singapore and the rest of Asia.
This marked the second extension of the strategic alliance MOU between Mapletree and Itochu, which was first signed in October 2005 and which was extended in November 2007 through a supplemental MOU (SMOU) to expand the scope of collaboration.
'We are delighted to continue our mutually successful and enriching partnership with Itochu,' said Mapletree CEO Hiew Yoon Khong. 'The October 2005 MOU and November 2007 SMOU facilitated Mapletree's entry into the logistics real estate market in Japan. Through our collaboration with Itochu, Mapletree has been able to establish our footprint in the logistics real estate market in Japan with the acquisition of seven logistics assets in Japan worth a total of $571 million,' Mr Hiew said.
He noted that Itochu is also now an investor in the Mapletree Industrial Trust, which holds the $1.7 billion industrial assets privatised by JTC Corporation.
'This new JV and extension of the MOU affirm both parties' intent to further strengthen and deepen the strategic partnership and leverage on each others' strengths and capabilities to harness the opportunities in the real estate market in Asia, particularly where windows of opportunity exist in this economic environment,' said Mr Hiew.
There is a growing demand by logistics operators in Japan for new and well- built logistics and distribution facilities but with current economic conditions, not many players are able to fulfil the needs of these operators, according to Mr Hiew.
'Mapletree intends to step up and provide this solution together with our partner, Itochu,' he said.
The completed assets will be offered to Mapletree's logistics real estate investment trust, Mapletree Logistics Trust, on a right of first refusal basis.
Mapletree strengthens ties with Itochu
The partnership aims to develop logistics properties
By VINCENT WEE
MAPLETREE Investments has strengthened its partnership with Itochu Corporation by teaming up to develop logistics properties in Japan.
It has signed a memorandum of understanding (MOU) to form a joint venture to undertake primarily build-to-suit development projects for logistics tenants in Japan, Mapletree said yesterday.
The partnership aims to develop US$300 million to US$500 million worth of logistics properties over the next 24 months.
The two companies also cemented their strategic alliance by extending for a further two years through another MOU to collaborate on investment and development of logistics, retail, industrial and commercial real estate projects in Japan, Singapore and the rest of Asia.
This marked the second extension of the strategic alliance MOU between Mapletree and Itochu, which was first signed in October 2005 and which was extended in November 2007 through a supplemental MOU (SMOU) to expand the scope of collaboration.
'We are delighted to continue our mutually successful and enriching partnership with Itochu,' said Mapletree CEO Hiew Yoon Khong. 'The October 2005 MOU and November 2007 SMOU facilitated Mapletree's entry into the logistics real estate market in Japan. Through our collaboration with Itochu, Mapletree has been able to establish our footprint in the logistics real estate market in Japan with the acquisition of seven logistics assets in Japan worth a total of $571 million,' Mr Hiew said.
He noted that Itochu is also now an investor in the Mapletree Industrial Trust, which holds the $1.7 billion industrial assets privatised by JTC Corporation.
'This new JV and extension of the MOU affirm both parties' intent to further strengthen and deepen the strategic partnership and leverage on each others' strengths and capabilities to harness the opportunities in the real estate market in Asia, particularly where windows of opportunity exist in this economic environment,' said Mr Hiew.
There is a growing demand by logistics operators in Japan for new and well- built logistics and distribution facilities but with current economic conditions, not many players are able to fulfil the needs of these operators, according to Mr Hiew.
'Mapletree intends to step up and provide this solution together with our partner, Itochu,' he said.
The completed assets will be offered to Mapletree's logistics real estate investment trust, Mapletree Logistics Trust, on a right of first refusal basis.
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