BT : CDL generates $1b cash from operating activities in '09

Business Times - 26 Feb 2010

CDL generates $1b cash from operating activities in '09

Srong contribution from property development helps lift Q4 profit 76.7%

By KALPANA RASHIWALA

(SINGAPORE) City Developments Ltd (CDL), which yesterday posted its second-highest full-year net profit, is getting ready for at least five Singapore residential property launches this year.

Fourth-quarter net earnings jumped 76.7 per cent year on year to $176.7 million on the back of strong contribution from property development. Pre-tax profit from this segment rose 107.2 per cent for the fourth quarter and 14.2 per cent for the full year.

As a result, property development accounted for 70.7 per cent of Q409 group pre-tax profit; for full-year 2009, its contribution came to 65.5 per cent.

For Q409, the group booked profits from Cliveden at Grange, The Arte, One Shenton, Shelford Suites, The Solitaire, Tribeca and Wilkie Studio. Profits were also booked from joint venture projects such as Livia and The Oceanfront @ Sentosa Cove.

The group also highlighted that profits from the Volari at Balmoral and Hundred Trees condos, which are nearly completely sold, have yet to be booked as these projects are in the early phase of construction. The same goes for The Gale, a joint venture project.

CDL is targeting to launch The Residences at W Singapore Sentosa Cove next month. In April, it hopes to release a 429-unit condo at Chestnut Avenue and a 158-unit condo on the former Concorde Residences site on Thomson Road, followed by a condo in Pasir Ris (next to Livia) in June. In July or August, the group plans to launch a condo with about 150 units on the Copthorne Orchid Hotel site in the Dunearn Road area, owned by its London-listed hotel arm Millennium & Copthorne Hotels (M&C). The projects will be launched in phases.

CDL executive chairman Kwek Leng Beng highlighted that two overseas hotels in M&C's portfolio - Millennium Seoul Hilton and The Tara in Kensington, London - could also be redeveloped into condos at the right time.

CDL's current landbank can potentially yield about 7.1 million square foot of gross floor area.

For the year ended Dec 31, 2009, group net profit edged up 2.1 per cent to $593.4 million, the second best showing since the group's inception in 1963. Its best bottom line, of about $725 million, was achieved for FY2007. CDL's latest full-year turnover of $3.27 billion (an 11.1 per cent increase from the preceding year) was its highest ever.

The group sold a total of 1,508 residential units with sales revenue of $1.87 billion (including joint venture share) last year - a marked jump from the 368 units sold for a total $348 million in 2008.

CDL generated about $1 billion cash from operating activities before tax last year (2008: $516.6 million) - a feat accomplished without resorting to any equity fund raising.

The group's board is recommending a final ordinary dividend of eight cents per share, up from 7.5 cents per share for 2008.

The group is conserving some of its cash for acquisition possibilities, especially in the West, where attractively priced deals are available.

Looking ahead, CDL expects cashflow this year to be healthy as it has pre-sold residential developments and with quite a number of its projects likely to be completed this year - including The Solitaire (which has already received Temporary Occupation Permit), Tribeca, The Oceanfront @ Sentosa Cove, Wilkie Studio and The Arte.

CDL's gearing ratio, without taking into account fair value gains on investment properties as is the group's accounting practice, dipped from 48 per cent at end-2008 to 40 per cent at end-2009.

It it had taken into account such gains, its gearing ratio would have fallen from 32 per cent to 27 per cent over the same period. The group managed to trim net borrowings by 10 per cent last year to $3.05 billion and achieved lower average interest rate on borrowings of 2.2-2.5 per cent, compared with 2.6-3.7 per cent for 2008.

Its interest cover ratio also increased from 11 times for FY2008 to 14.5 times for FY2009.

Net asset value per share rose from $5.97 at end-2008 to $6.57 at end-2009.

During yesterday's results briefing, Mr Kwek also questioned accounting conventions these days that allow companies to book upward revaluations on investment properties as profits as well as to recognise profit on exceptional items such as one-off divestments.

Core earnings, which are a business' recurring income, should be focused on instead, he argues.

'Why do you want to add in 'exceptional profit', or what we used to term as 'extraordinary profit' to your normal profit and say: 'My goodness, I got very good profit; I should ask my board to give me a big bonus!'?'

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.



Oceanfront asset: The group is targeting to launch The Residences at W Singapore Sentosa Cove next month



Two overseas hotels - one in Seoul, the other in London - could be redeveloped into condos.
- Mr Kwek

BT : Developers put home launches on fast track

Business Times - 26 Feb 2010

Developers put home launches on fast track

Redas looks forward to more sites in confirmed list to replenish land banks

By UMA SHANKARI AND EMILYN YAP

(SINGAPORE) DEVELOPERS will be bringing forward their property launches over the next few months to satisfy strong demand from homebuyers, said Real Estate Developers' Association of Singapore (Redas) president Simon Cheong yesterday.

But Mr Cheong, who was speaking at Redas' spring festival lunch, warned that many developers are now facing depleting land banks following brisk home sales in recent months. Developers, he said, were surprised at the speed of the recovery in the property market.

Property groups including Allgreen Properties, CapitaLand, City Developments, Frasers Centrepoint, MCL Land and UOL Group are all looking to launch projects over the next few months.

'Redas' members are committed to fast track supply to satisfy demand to minimise excessive speculation in the property market,' said Mr Cheong. 'Hopefully when demand is satisfied, there will be less pressure for future anti-speculative measures.'

Property groups here appear to have shrugged off the measures introduced by the government last Friday to cool the market.

The government said that a seller's stamp duty will be levied on those who buy a residential property and sell it within a year. Currently, stamp duty is levied only for the purchase of a property and not its sale. Also, the loan-to-value limit on housing loans will be lowered from 90 per cent to 80 per cent.

Developers said that while volumes might contract in the short term, demand for private homes is expected to hold up well this year. Sales of new private homes by developers rose to 1,476 units in January - three times as high as the previous month and the highest level since August last year.

'Sentiment will initially see a knee-jerk reaction and be affected, but over time, people will realise ... that the interest rate environment is still very low,' said City Developments executive chairman Kwek Leng Beng at the group's results briefing earlier in the day. 'If you don't buy today, by the time you want to buy, the prices could have gone up a lot more.'

City Developments group will roll out five projects with around 1,600 units this year - The Residences at W Singapore Sentosa Cove and one residential project each at Chestnut Avenue, Thomson Road, Pasir Ris and in the Dunearn Road area.

Other market players shared similar sentiments. Frasers Centrepoint CEO Lim Ee Seng believes that the most recent anti-speculation rules are unlikely to disturb the property market much.

Frasers Centrepoint will officially launch its 81-unit Residences Botanique along Sirat Road tomorrow. It also has two launches planned for Q2 - a 393-unit project on the former Flamingo Valley Site along Siglap Road and phase three of its Waterfront Collection along Bedok Reservoir.

The buzz in private home sales continued this week - even after the newest anti-speculation measures were announced.

At MCL Land's preview of its Yishun condo The Estuary yesterday, most of the 200 units launched were snapped up at an average price of $750 per square foot. MCL Land will roll out another 120-150 units in the project over the coming weekend - with selective price increases - said chief executive Koh Teck Chuan.

'So far, the impact (of the government measures) is not noticeable,' said Mr Koh. But units and projects that are more popular with investors could see a drop-off in demand, he added. MCL Land will also preview its 65-unit D'Mira at Boon Teck Road in mid-March.

UOL Group also intends to launch two projects in April or May - a 616-unit development at Dakota Crescent and a 172-unit project on the former Rainbow Gardens site at Toh Tuck Road.

But depleting land banks were a concern, Mr Cheong said. Redas 'is now looking forward to more sites in the confirmed list for developers to replenish their land banks', he said.

'We believe the long-term solution to a sustainable and stable market is still adequate supply,' Mr Cheong noted.

One developer told BT that it is important for his counterparts and himself to have enough in their land banks. But 'at the same time, we don't want the government to flood the market and over-supply,' he said.

He added: 'The best thing for the government to do - which is something very difficult and I don't envy them - is to try to sell just enough so that the market will not catch fire, and not sell too much so that the market will go under.'

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

ST : Sentosa gets four new nightspots

Feb 26, 2010

Sentosa gets four new nightspots

Work the tables, shop, dine and then party at Sentosa Resort World's FestiveWalk from April

By cara van miriah



Among the first to open is Big Easy (left), a 185 sq m bar and restaurant. The New Orleans-styled jazz venue is the first of its kind in Singapore. -- PHOTOS: BIG EASY, LIFEBRANDZ

View more photos



You have played the poker machines, gone shopping, had a sumptuous dinner, and now you want to know: Where is the party?

From April, four nightspots will add to the after-hours buzz at Resorts World Sentosa's (RWS's)entertainment strip FestiveWalk.

The 500m stretch is lined with retail shops, food and beverage outlets and restaurants helmed by celebrity chefs.

Partygoers will have a choice of four diverse venues - Hard Rock Cafe, Mulligan's Irish Pub, Big Easy New Orleans Cajun Bar and Restaurant and a yet-to-be-named dance club - to keep them entertained. They will feature live music with genres ranging from jazz and pop to rock and R&B.

Among the first to open in early April is Big Easy, a 185 sq m jazz bar and restaurant.

Set up at a cost of $800,000, the New Orleansstyled jazz venue - the first of its kind in Singapore - will be operated by Britons Adrian Houghton and Colin Chamberlain.

The two also run TurnStyles Sports Bar Cafe in Circular Road and Holland Village. Big Easy will feature local and foreign jazz acts every night.

Mr Houghton, 37, tells Life!: "The resort will attract a cosmopolitan crowd and that was why we came up with an American-themed concept. We want to draw tourists, Singaporeans and the expat community to a venue that features jazz music and serves a wide variety of seafood."

And a $1.5-million nightspot, which will be the resort's only dance club, is coming courtesy of nightlife chain St James Holdings, which runs St James Power Station entertainment complex in HarbourFront.

The 464 sq m dance club will feature an international cast of deejays, dancers and musicians, with 10 different entertainers performing every week.

The venue will also see musicians performing alongside deejays during live music sets.

It is expected to open by the end of May after a 10-week fit-out and it is the group's 17th outlet.

Says St James' chief executive officer Dennis Foo, 57: "Our strategy is to have a presence in all lifestyle destinations such as Resorts World Sentosa. As the resort will draw different profiles of visitors, the dance club will have an international appeal."

Operators are banking on the influx of tourists which RWS hopes to draw - its target is 13 million visitors this year.

Mr Noel Hawkes, RWS's vice-president (resort operations), notes: "Entertainment is a key component of the Resorts World Sentosa experience. At the heart of the hustle and bustle of RWS is Festive-Walk, which will see a variety of bars, clubs, celebrity restaurants and eateries."

Local nightlife chain LifeBrandz will set up its second Mulligan's Irish Pub at the resort. By mid-April, the 100-seater Hard Rock Cafe will welcome guests and it will be the third outlet in Singapore.

Its other outlets are at Cuscaden Road and Changi Airport T3. They are operated by HPL Hotels & Resorts, the main franchise owner of the Hard Rock brand in Asia, excluding Japan and India.

The good news for partygoers: Entry to the upcoming nightspots along FestiveWalk is free.

Ms Clarissa Lim, 30, an executive secretary, says: "It gives people more reason to check out the nightlife and hot spots in FestiveWalk."

caravm@sph.com.sg

ST : After hours at Robertson

Feb 26, 2010

After hours at Robertson

Robertson Quay's quiet, tree-lined stretch is the perfect chill-out haunt

By cheryl wee



-- PHOTOS: EM BY THE RIVER, LAURENT'S CAFE AND CHOCOLATE BAR, CDL, GRAND COPTHORNE HOTEL

Strolling from Clarke Quay to Robertson Quay, the pace of life slows down. It is less crowded along the river at this stretch. Instead of waterside restaurants and pubs, sturdy-looking trees lean out towards the Singapore River while patches of grass replace concrete banks in some parts.

Occasionally the sight of men perched by the river with their fishing rods greets the eye. They lower a hook from a small rod and use bread chunks as bait - reminiscent of fishermen from the past who used to travel down the river.

The greenery extends to the eateries in the area, at places such as eM By The River with its wooden floorboards and trees sprouting up in the middle of the alfresco dining area.

Lamps adorn the tree branches, providing ample light for a quiet after-dinner drink.

Finance executive, 25-year-old Grace Poh, likes the atmosphere of the place. She said: 'We spend most of our time indoors, be it at work, school or at home, we are always in a building. It is a good change to be dining outdoors, to get a breath of fresh air and closer to nature.'

But it is a different story inside Robertson Quay. The restaurants and bars that ring the courtyard attract late-night revellers.

Robertson Quay is also popular with joggers and, on weekday evenings, they can be spotted along the river.

Mr Shuan Sonja and Ms Jacinta Sonja, who are both in their 30s, felt the calming atmosphere was suitable for their store called Workshop, which rents out and sells vintage bicycles as well as design books.

Ms Sonja said: 'You have the waterfront and the wide promenades. It's a very friendly and nice neighbourhood.'

The tranquil area also attracts nature lovers.

Mr Tan Zi Jie, a 21-year-old student, said: 'I am a nature-loving kind of person and it's nice to be around trees when you eat. It calms me down. With trees around, the pace of life seems slower and more relaxed.'

Here are 12 places you can visit by the river.

1 Reed Sculpture



What: Tall grass-like plants can no longer be found along the banks of the Singapore River but Peter Chen's 6.5m sculpture evokes these plants.

The pipes that make up the cast bronze sculpture counterbalance and shift in the wind to produce musical sounds.

The work of art won the inaugural City Developments Limited Singapore Sculpture Award in 2003.

Where: The Pier along Robertson Quay

2 Orihara Liquor Shop

What: A sleek, minimalist interior belies the wide range of sake available at this standing-room-only bar. Choose from hot sakes, aperitif sakes, digestif sakes or sakes to accompany food. Also on offer are various shochus, umeshus, whiskey and imported Japanese beer. You can also buy exquisitely crafted sake cups from Japan.

The store at Robertson Walk is the Orihara company's first overseas branch, and the company can be traced to a specialist supplier of alcoholic beverages established in 1924 in Ikebukuro, Tokyo.

Open: Mon to Wed, 7pm to midnight, Thur to Sat, 7pm to 1am, Closed on Sun

Where: 11 Unity Street, Robertson Walk, 01-02

Info: Call 6836-5710 or 6836-5680

3 Kim Seng Road To East Coast Park bicycle trail (15km)

What: Begin the scenic route at Kim Seng Park and ride along the promenade by the Singapore River, past Robertson Quay, Clarke Quay and the Asian Civilisations Museum.

Cycle down Queen Elizabeth Walk and turn right to follow the Marina Promenade on the bay front until you hit Crawford Street. Cross Rochor River near Block 4 in Crawford Street to reach the Kallang Park Connector at the Kallang Riverside Park and head towards Stadium Road on the opposite bank.

Following that, go past the Singapore Indoor Stadium to the Tanjong Rhu bridge, where you can ride over into Tanjong Rhu Road. This will lead you to Fort Road and the East Coast Park.

4 Cafe Brio's

What: Outdoor tables here are mere metres away from the Singapore River, allowing you to enjoy the tranquillity of its waters while seated snugly in wicker chairs.

The buffet spread boasts a mixture of international and Asian fare from duck confit and braised oxtail stew to mee rebus and lor mee. Its speciality is a dish called Super Laksa ($26.50) which is traditional Singapore laksa served with chunks of lobster, prawns, scallops, slices of fish cake and bean cake and garnished with bean sprouts.

Open: Mon to Sun, 6.30 to 10.30am (breakfast), noon to 2.30pm (lunch), 6.30 to 10.30pm (dinner)

Where: Grand Copthorne Waterfront Hotel Singapore, 392 Havelock Road

Info: Call 6233-1100

5 Re-visiting Chua Ek Kay - Tribute To The Ink Master

What: Elegant brush strokes of traditional Chinese ink painting fuse with contemporary Western art in the works of the late Cultural Medallion recipient.

Featuring 26 art works from the series Singapore Street Scenes, Lotuses, Water Village and Archipelago, the exhibit explores his artistic journey beyond the confines of traditional Chinese ink painting.

When: March 5 to 20, Mon by appointment only, Tue to Sat, 10am to 6pm, closed on Sun

Where: Singapore Tyler Print Institute, STPI Gallery, 41 Robertson Quay

Admission: Free

Info: Call 6336-3663 or go to www.stpi.com.sg

6 Waterfall Lounge at Furama RiverFront

What: Set amid lush greenery, water cascades down from a 6m waterfall while customers munch on light snacks, sip cups of coffee or surf the Web.

Live bands at the lounge provide nightly entertainment.

Open: Sun to Thurs, 11am to 12.30am, Happy Hour, 3 - 8pm daily, Fri, Sat and eve of public holidays 11pm to 1.30am

Where: Furama Riverfront, 405 Havelock Road, Lobby

Info: Call 6739-6538

7 Brussels Sprouts

What: Priding itself on freshness, only live mussels and, depending on the season, imported shellfish feature on the menu.

The place also boasts 25 different flavours of mussels, each served with a free flow of fries. Other favourites include Grey Shrimp Croquette ($14) and Toast Cannibal: Steak Tartare On Toast ($9.50).

To accompany the ample seafood dishes are 120 kinds of Belgian beers ranging from fruit beers, White Beers Blonde Beers and Brune Beers to name a few. All beer are imported and about 70 of them are unique to the restaurant.

Open: Mon to Thur, 5pm to midnight, Fri to Sat, noon to 1am, Sun, noon to midnight

Where: 80 Mohamed Sultan Road, 01-12, The Pier@Robertson

Info: Call 6887-4344

8 Laurent's Cafe And Chocolate bar

What: Outdoor wicker sofas and chairs upholstered in hues of brown that resemble the many different types of chocolate sold here make up the outdoor area and a push cart offers homemade ice cream from Laurent's just beside the cluster of chairs.



It specialises in all things chocolate from fluffy souffles ($16.50) to hot frothy cups of the stuff ($8). Pieces of prettily decorated premium chocolate can also be bought in boxes trimmed with ribbons.

Open: Mon, 6 to 11pm, Tues to Thur, 1pm to midnight, Fri to Sat, 1pm to 1am, Sun, 1 to 11pm

Where: The Pier at Robertson Quay, 80 Mohamed Sultan Road, 01-11

Info: Call 6235-9007

9 The Book Cafe

What: Sink into an overstuffed sofa with a magazine or book picked from well-stocked shelves.

The breakfast menu is served all day - a popular dish is Chipolata And Bacon which comes with sunny-side-up egg, toast and harsh browns ($14.95) - and wireless Internet access is available.

Open: Sun to Thur, 8.30am to 10pm, Fri and Sat, 8.30am to midnight

Where: Seng Kee Building, 20 Martin Road 01-02

Info: Call 6887-5430

10 Kith Cafe

What: Enjoy crisp slices of toast spread with an assortment of toppings from vegemite to avocado, all day.

A fry-up of toastie with bacon, scrambled eggs and cheddar ($5.50) as well as a healthy serving of muesli topped with fresh strawberries and covered with vanilla yogurt ($6) are also offered, allowing customers the comfort of these breakfast food items even in the evenings.

The cafe serves a wide selection of drinks such as milk shakes, tea, coffee and fresh juices, alongside soups and sandwiches that change daily.

Open: 7am to 7pm daily

Where: 7 Rodyk Street, Watermark@Robertson Quay, 01-33

Info: Call 6341-9407

11 Workshop By Angelus Novus Studio

What: Rent restored French vintage bicycles in pretty colours outfitted with a woven white basket in front. Charges range from $10 an hour to $50 for six hours or $70 for a whole day on weekends.

Special Velo snack packs are brown paper bags packed with a regular sandwich and an iced tea from Kith Cafe are available ($11.50) with any bike rental, and allow you to ride away for a picnic down Robertson Quay.

The shop also sells restored vintage steel frame bikes, acquired from private collectors, museums and private auction houses abroad.

The sturdy frames are of British, European and Japanese makes from the 1950s to 1980s.

Adding to the rare finds are vintage stationery and limited-edition design books from abroad.

Open: 1 to 8pm on weekdays and 11am to 9pm on weekends. Bikes are to be returned by 7.30pm daily and 8.30pm on weekends with the exception of overnight rentals

Where: 7 Rodyk Street, 01-30, Watermark Robertson Quay

Info: Call 6835-7228 or go to www.work-shop.com.sg

12 eM By The River



What: Dishing out eggs over-easy and bacon in the morning and hearty meals at lunch, the eatery transforms into a laid-back bar in the evenings, with live music every Friday night.

Set in a little cluster of trees, diners have the luxury of lounging there into the wee hours of the morning, as the place stays opens till late every day.

Open: Mon to Thur, 9 to 2am, Fri & eve of public holidays, 9 to 3am, Sat, 8 to 3am and Sun, 8 to 2am

Where: 1 Nanson Road, Gallery Hotel 01-05

Info: Call 6836-9691



cherylw@sph.com.sg

Next week: Check out the cultural offerings around Empress Place

ST : CDL plans to start $2.5b mega project next year

Feb 26, 2010

CDL plans to start $2.5b mega project next year

By Esther Teo



An artist's impression of CDL's South Beach project which will feature an 'environmental filter' canopy. -- PHOTO: CITY DEVELOPMENTS

CITY Developments (CDL) is aiming to start building its landmark $2.5 billion South Beach project in Beach Road next year, said its boss Kwek Leng Beng yesterday.

Mr Kwek gave an update on the project - shelved in late 2008, owing to high construction costs, then slated for a start this year - as he unveiled a far- better-than-expected 77 per cent surge in fourth quarter net profits for CDL.

He brushed aside financial worries over the mega project, which is set to boast offices, luxury hotels, retail space and residences when completed in 2016.

CDL bought the site in 2007 jointly with Dubai World and El-Ad Group, which have since been hit by debt woes.

Mr Kwek, the executive chairman, said: 'We cannot presume that the two partners have no money. If the two partners have no money, then their share will be diluted,' he said, of the Dubai partners.

Hong Kong's Nan Fung group emerged as a new investor in the project last June under a refinancing exercise.

'The verbal understanding with Nan Fung is that both of us will put in more money if so required,' Mr Kwek said.

CDL's net profit for the three months ended Dec 31 shot up 77 per cent to $176.7 million, as the group booked profits in projects such as Cliveden at Grange, The Arte and One Shenton.

That beat the average estimate of six analysts polled by Dow Jones Newswires of $129 million. Fourth quarter revenue rose 28.6 per cent to $922.4 million.

'The global economic recovery is better than expected,' he said, adding that prospects were good for the residential, hospitality and commercial sectors.

Full-year earnings rose 2.1 per cent to $593.4 million, on the back of better income from strong property prices.

Last year also marked the group's highest ever revenue of $3.27 billion, up 11.1 per cent, and second highest profit since its inception in 1963. It expects to stay profitable over the next 12 months.

Mr Kwek said that the firm will continue to focus on the local market, capitalising on its land bank and experience - but said China is promising.

'That is not to say that we will never go abroad... But why would we want to go in a big way at the moment when I still believe that we can make a lot of money in Singapore. We know Singapore best, can read the trends better and are here most of the time,' he said.

CDL expects sentiment among genuine buyers to remain strong despite recent government measures to cool speculation in the property market.

Full-year earnings per share were 63.8 cents, up from 62.5 cents a year earlier. Net asset value per share rose to $6.57 as at Dec 31, from $5.97.

The group is recommending a dividend of eight cents a share, up from 7.5 cents the previous year. CDL shares rose two cents yesterday to close at $10.34.

OCBC Investment Research analyst Foo Sze Ming said he expects CDL to deliver strong earnings this year, underpinned by its sold residential projects last year - The Gale, Volari and Hundred Trees - that have yet to book in profits.

ST : $52m cleantech park coming up near Tuas

Feb 26, 2010

$52m cleantech park coming up near Tuas

When ready, it will have one million sq m of business space

By Jessica Cheam



An artist's impression of the proposed Sky Trellis, with interwoven pieces of wood or bamboo constructed between the building tops and covered with plants to lower temperatures, provide shade and encourage walking. -- PHOTO: JTC CORPORATION

SINGAPORE'S burgeoning clean technology industry is to boast a cutting- edge green business park that will help create 20,000 'green-collar' jobs by 2030.

Plans for the 50ha park, to be built in three phases at a cost of $52 million, were unveiled yesterday.

The park in Nanyang Avenue, near Tuas, will feature green technologies such as stormwater recycling, solar power generation and buildings with the highest standards of environmental performance set in a lush green landscape.

The park will also serve as Singapore's first large-scale integrated development, allowing firms to test-bed cleantech products and solutions - especially those catering to the tropics - before they are commercialised for the market.

Industrial landlord JTC Corp and the Economic Development Board (EDB) revealed the masterplan for this CleanTech Park yesterday at the JTC Summit.

It marks the first step towards the fruition of an idea first mooted in 2008 by a high-powered panel of clean energy experts appointed by the EDB.

The panel had recommended that Singapore should cement its position as a global clean energy hub by setting up just such a cleantech park.

JTC said that infrastructure works on the park's first phase, spanning 17ha, will begin in July. Due for completion by 2018, it will offer 425,000 sq m of built-up space.

The park is located next to the Nanyang Technological University (NTU), which will be the park's first tenant.

EDB deputy managing director Tan Choon Shian said NTU will be locating some research activities in the park, and that EDB is also in talks with local and international firms to set up there.

JTC chief executive Manohar Khiatani added: 'We're confident at the level of interest we've received, so we felt that we should start this rolling.'

The global cleantech industry is reported to be worth more than US$700 billion (S$987 billion) and Singapore has identified this as a key pillar of its economy.

EDB expects the sector to contribute $3.4 billion to Singapore's economic output and employ 18,000 people by 2015.

To date, the industry has created about 9,000 jobs, said EDB's Mr Tan.

Mr Khiatani said that he hopes the park will attract not just cleantech companies, but also those with strong green practices which want to align themselves with the park's sustainability theme.

'More companies are looking for eco-friendly environments, so we decided to launch this new park. It will have ecological features that are also economical, and its proximity to NTU will also give it an advantage,' he said.

JTC said the space at the park will be priced competitively to attract tenants.

When completed, it will house 20,000 workers on a site set to offer one million sq m of business space.

JTC will be preserving the site's current biodiversity and natural undulating terrain.

One of the innovative ideas it will test-bed is called Sky Trellis, where trellises are built between the tops of buildings and covered with plants to lower temperatures, provide shade and encourage walking.

The agency will soon launch the park's first building, although details are not available yet.

The next two phases are scheduled to start in 2019 and 2026 respectively although this can be accelerated if needed, JTC added.

EDB managing director Beh Swan Gin said that the park will 'foster the clustering of like-minded companies in one location...thereby promoting the cross-fertilisation of knowledge and ideas' to develop cleantech solutions.

jcheam@sph.com.sg

ST : Bountiful year for two local developers

Feb 26, 2010

Bountiful year for two local developers

By Esther Teo

LOCAL developers SC Global Developments and Allgreen Properties have both posted impressive full-year profits on the back of the rebounding real estate market.

SC Global's net profit last year improved by 28 per cent to $56.9 million - a record for the group since its inception as a developer in 2000.

It said higher profit recognition from its local development projects and the return to profitability of its subsidiary AVJ contributed to its strong performance.

Revenue hit $804.7 million for the 12 months to Dec 31, an impressive 524 per cent increase from $129.1 million the year before.

Full-year earnings per share was 14.39 cents, up from 11.27 cents a year earlier, while net asset value per share rose to $1.21 cents as of Dec 31, from 88 cents.

The group, which develops high-end luxury residences, is recommending a dividend of 1.5 cents a share. There was no dividend in 2008.

SC Global's shares fell three cents yesterday to $1.73.

Chairman and chief executive Simon Cheong is optimistic about prospects.

'The group holds a valuable landbank of over 1.1 million sq ft of developable gross floor area in the prime areas of Orchard Road and Sentosa Cove, which positions the group well as the market continues to improve,' he said.

Allgreen also shone with a 141 per cent increase in full-year profit from $67.4 million in 2008 to $162.7 million last year.

Revenue for the 12 months to Dec 31 increased 75 per cent to $620.8 million, due mainly to higher sales at projects such as One Devonshire in June last year.

Higher occupancies and rental rates in its investment properties like Tanglin Mall also boosted its performance although they were offset by the weaker hotel and serviced apartment sector because of lower occupancy and room rates.

Earnings per share for the year was 10.23 cents, up from 4.24 cents a year earlier, while net asset value per share rose to $1.48 as of Dec 31, from $1.41.

The group is recommending a dividend of four cents a share, from two cents the previous year.

Allgreen's shares remained unchanged yesterday at $1.12.

ST : Developers 'limited by land bank'

Feb 26, 2010

Developers 'limited by land bank'

They say it is holding them back from launching projects to ride buoyant market

By Joyce Teo



Redas chairman Simon Cheong with Finance Minister Tharman Shanmugaratnam at the Redas Chinese New Year lunch at Capella Singapore yesterday. -- ST PHOTO: AIDAH RAUF

PROPERTY developers say they are eager to bring forward project launches to ride the buoyant market but are being held back by their limited land bank.

They were caught by surprise at the rapid market recovery, they say.

'Many of us are now caught with a depleting land bank,' the Real Estate Developers' Association of Singapore (Redas) president Simon Cheong said.

'We believe the long-term solution to a sustainable and stable market is still adequate supply,' he added.

Credo Real Estate's deputy managing director Tan Hong Boon summed up the mood: 'You never know what will happen. While the going is still good, developers will want to launch quickly. This is particularly so for mass market projects.

The Government recently stepped up the supply of development sites after a lull, and believes supply is adequate.

Yesterday, a 3.02ha site at Hougang Avenue 2 was offered to developers. If interest is adequate, a tender will proceed.

Another reserve list site will be offered by May, on top of confirmed list sites, which are tendered without precondition.

The comments by Mr Cheong and Mr Tan at the Redas Chinese New Year lunch at Capella Singapore yesterday came a week after market cooling measures.

The Government imposed a duty sellers must pay if they sell within a year of purchase. It also capped bank loans at 80 per cent of a sale price, from 90 per cent.

Mr Cheong said developers want land supply fast-tracked to satisfy buyer demand to minimise speculation to ease the pressure for more anti-speculative steps.

'Given the unexpected return of an active property market, developers over the next few months would also be actively bidding for more land,' he said.

Redas members look forward to more confirmed list sites to replenish land banks, he said. They are looking to Government land, given limited sources of private land. A developer who declined to be named said private land owners were asking for the sky 'so we can't buy'.

Mr Cheong said developers would rather have this problem than the bleak effects of last year's meltdown in the banking system. 'Managing upside is always easier than managing downside.'

The anti-speculative steps were a timely reminder, said Frasers Centrepoint chief executive Lim Ee Seng at the lunch. 'Exceptional jumps in prices are not good for us.' Still, he said: 'No matter how high it gets, it will still obey the law of gravity.'

An anonymous developer said the measures had hurt sentiment a little. 'If there are 100 buyers, maybe 10 will change their minds. I expect volume to moderate a bit.'

Still, so far the measures appear to have had little or no impact on recent sales. 'The market is still hot,' said an industry observer. The 608-unit The Estuary in Yishun, whose preview opened on Wednesday, has sold over 200 units.

The average price for the 99-year leasehold condo is $750 per sq ft, with units facing the Lower Seletar reservoir costing around $800 psf on average.

Separately, City Developments boss Kwek Leng Beng said at a results briefing for CDL yesterday that sentiment would remain strong among genuine buyers, despite the government measures.

Mr Cheong addressed guest of honour Finance Minister Tharman Shanmugaratnam, saying developers were disappointed at being left out of the Budget.

But they were happy at the productivity push given the long-term gains. Redas called this 'a deferred payment hongbao'.

Looming launches include the 151-unit Seascape in Sentosa Cove and Cheung Kong Holdings' 295-unit The Vision. Far East Organization and Frasers Centrepoint plan to release Waterfront Gold in Bedok Reservoir soon. Allgreen may launch RV Residences in River Valley and unsold units at Cascadia in Bukit Timah.

joyceteo@sph.com.sg

ST : In firefighters we trust (but not property agents)

Feb 26, 2010

In firefighters we trust (but not property agents)

People whose jobs entail saving lives are most trusted, poll shows

By Tessa Wong

WHO would you trust more? A fireman, or a real estate agent?

Thought so.

So did 760 Singapore residents who took part in an online poll conducted by Reader's Digest magazine on the most trusted professionals in the country.

Conducted last October, the poll gave them two lists of 55 individuals and 40 professions and asked them to rate their trustworthiness on a scale of one to 10.

The results show that the people who are trusted most tend to have the most vital job of all - saving lives. Hence, besides firefighters, jobs in the medical industry dominate the top 10 places.

Doctors are second, surgeons fifth, paramedics seventh, followed by nurses, pharmacists and dentists. Judges, teachers and pilots round out the top 10. Not far behind are police officers in 11th place.

At the other end of the scale are those who deal with money, or wield influence.

Real estate agents brought up the rear. Just ahead of them, at 39th, were politicians. Financial planners were only slightly more to be trusted, at 38th.

But Mr Jeff Foo, president of the Institute of Estate Agents, was stoic about the results: 'I'm not surprised. It's partly due to our poor reputation and also because we are not regulated, with no entry requirements.'

That does not explain the politicians. With Singaporeans reputed to have so much faith in the Government, why the poor showing?

Mr Michael Palmer, MP for Pasir Ris-Punggol GRC, said: 'From what I see on the ground, I don't get a sense that people distrust us. Perhaps it's because those surveyed responded not on trust but with their disagreement with the Government and its policies.'

But perhaps there is no need for any chest-beating. In any survey of this type, people tend to trust those they have to rely on most, said Ms Dora Cheok, editor of Reader's Digest Asia.

Agreeing, organisational behaviour expert Donald Ferrin, an associate professor at the Singapore Management University, said: 'Research has shown that when you are dependent on someone, you have a defence mechanism to want to trust someone, or it can make your life difficult.'

So it is only human, and probably why Singapore's top 10 is almost identical to those from Malaysia and the Philippines.

Still, it does not take anything away from the quality of Singapore's civil defence force and health-care professions, said Ms Cheok.

The three countries are among seven that participated in the first such poll done by the magazine in Asia. In Singapore, those surveyed were at least 20 years old, had at least secondary school education, and a minimum annual household income of $49,500.

As for lawyers who are ranked 32nd, Mr Palmer - who is also a lawyer - said the media could be to blame. 'The only time you see us mentioned in the media is when a lawyer has been dishonest. Which is why we try to stay out of the papers!'

And what of those whom he blamed for lawyers' poor showing? Journalists were placed 30th in the list, ahead of hawkers, taxi-drivers and bankers, but behind farmers, musicians and hairdressers.

twong@sph.com.sg

BT : Property tax boon may be short-lived

Business Times - 26 Feb 2010

LETTER FROM THE EDITOR
Property tax boon may be short-lived

I REFER to the revision of the property tax rate on owner occupied properties which has the effect of reducing by $240 the property tax currently paid by the majority of homeowners, based on exemption of tax on the first $6,000 of annual value (AV) which at present attracts tax at 4 per cent.

The benefit of the rate change, alas, may not last long if the IRAS starts revaluing the AV on the grounds that the property market has been unusually strong of late and likewise for rentals. If AV increases by $6,000, there goes the $240.

In revising AV, it should be borne in mind that to the owner occupant, even a doubling of notional rental makes no difference in terms of income.

Denis Distant

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Eco-park to be a hotbed of ideas, jobs, business

Business Times - 26 Feb 2010

Eco-park to be a hotbed of ideas, jobs, business

Infrastructure works for 50ha project to kick off in July

By TEH SHI NING

(SINGAPORE) Singapore's first eco-business park is expected to create 20,000 jobs and draw some $2.5 billion worth of investments in buildings by its 2030 completion.

CleanTech Park (CTP) will be an 'epi-centre' for research, innovation and commercialisation of clean technology from both the public and private sectors, JTC Corporation and the Economic Development Board (EDB) said yesterday as they unveiled the masterplan for the 50-hectare Nanyang Avenue site.

A key initiative of the $1 billion Singapore Sustainable Blueprint announced last year, CleanTech Park is to be 'emblematic of how businesses can achieve both economic vibrancy and environmental sustainability; function in harmony and nature,' JTC chief executive Manohar Khiatani said.

At a macro level, CleanTech Park fleshes out the Economic Strategies Committee's vision of Singapore as a 'living lab' for global companies to test-bed and commercialise green solutions, especially for urban and tropical settings. It will also be a significant leg-up for the cleantech industry which EDB sees as a key growth cluster and expects to contribute $3.4 billion to GDP and employ 18,000 people by 2015.

EDB deputy managing director Tan Choon Sian said: 'We do believe that there will be strong interest from companies, with increased interest in eco- friendly spaces and environmental sustainability.'

CTP broadens the range of options that EDB can offer to the investors it seeks to bring into Singapore too, he said.

While it is a first for Asia, CTP offers a unique proposition even when compared to global parks of similar orientation, EDB director for cleantech Goh Chee Kiong said. 'First, we have the full continuum of cleantech activities from upstream R&D to commercialisation and test-bedding. Second, we can develop and test-bed solutions for the tropical climate while most innovations are now developed in and for temperate climates,' he said.

The first of CTP's three phases of development over the next 20 years kicks off with infrastructural works in July. The park's total infrastructure investment will be $52 million.

JTC intends to develop the site in an environmentally sustainable manner. Green strategies such as stormwater management, green walkways and sky trellises between buildings, solar panels, conservation zones and green construction methods will thus feature strongly.

By the end of Phase 1 in 2018, about 250 local and foreign SMEs and MNCs are expected to be housed on an initial 17 hectares of land within the park.

Other than pure-play cleantech firms, JTC also hopes to draw eco-friendly product and service sellers, or businesses with a strong green identity. Its first anchor tenant will be neighbouring Nanyang Technological University, which will help seed R&D activities at the park and is expected to catalyse collaborations between industry and academia. NTU already has tie-ups with companies such as Japanese water technology firm Toray.

Mr Khiatani stressed that while ecology and environmental sustainability is the park's distinguishing mark, commercial viability remains key. The park's one million square metres of space will thus be 'priced competitively', he said.

Colliers International industrial director Tan Boon Leong suggested that government agencies could lead the way to 'show that there are substantial benefits and savings to be had', while CB Richard Ellis director of industrial and logistics services Bernard Goh thinks a premium of 10 to 20 per cent will be attractive though tax incentives may be needed if costs range 40-50 per cent above other business parks.

Industry players were excited about CTP's potential to transform the young cleantech sector here.

Edwin Khew, chairman of the Sustainable Energy Association of Singapore which represents 140 companies, said: 'This creates a centre of excellence, a very attractive place to generate business. Investors can meet tech providers, carbon management companies, project managers - all in a single place. 'On top of that, our technologies can be test-bedded, showcased and demonstrated as entire systems in the park itself.'

Member companies are being encouraged to take out small offices in CTP.

Ron Mahabir, managing director of Asia Cleantech Capital, a private equity firm focused on cleantech, said that he would consider CTP for several companies in his firms' portfolio such as Zeco Systems and Annex Power.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : SC Global gets boost from AVJ consolidation

Business Times - 26 Feb 2010

SC Global gets boost from AVJ consolidation

By UMA SHANKARI

SC Global Developments saw a near eight-fold jump in fourth-quarter net profit to $33.2 million - from just $4.2 million a year ago - as it consolidated the results of new subsidiary AV Jennings Ltd (AVJ).

Group revenue for the quarter ended Dec 31, 2009, rose almost ten-fold to $274.5 million from $28 million in Q4 2008.

In December 2008, SC Global increased its stake in AVJ to 50.03 per cent and, as a result, AVJ became a subsidiary. The inclusion of revenue from AVJ pushed up the developer's topline for Q4.

Turnover also included progressive revenue recognition of the group's Singapore development projects - including The Marq on Paterson Hill, Hilltops and Martin No. 38 - based on progress of construction. In addition, revenue was also recognised from its development project in China, Kairong International Gardens in Shenyang.

Earnings per share for Q4 2009 rose to 8.36 cents from 1.07 cents a year ago.

For the full 2009 financial year, SC Global's net profit rose by 28 per cent to $56.9 million from $44.5 million in 2008. This was mainly due to higher profit recognition from the group's Singapore development projects and the return to profitability for AVJ.

Revenue for 2009 hit a record $804.7 million, a significant 524 per cent increase from $129.1 million in 2008. The group's net debt to equity ratio fell to 2.18 times at end-2009 from 2.84 times at end-2008. It proposed a final dividend of 1.5 cents per ordinary share.

'Despite the challenging conditions in 2009 brought by the global financial crisis, the group posted its highest year of revenue and net profit since its inception as a real estate developer in 2000,' said chief executive Simon Cheong.

SC Global will continue to sell units in projects it has already launched over the year, Mr Cheong said. 'We are very positive about the high-end market in Singapore given the forecasted growth of 4.5-6.5 per cent in the economy.' SC Global, which holds a land bank of over 1.1 million square feet of developable gross floor area in the prime areas of Orchard Road and Sentosa Cove in Singapore, is well-positioned as the market continues to improve, Mr Cheong added.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Hougang reserve list site open for application

Business Times - 26 Feb 2010

Hougang reserve list site open for application

It is slated for low density condo or landed housing

By EMILYN YAP

PROPERTY developers looking to boost their residential landbanks can get their cheques ready for a new piece of state land.

The Urban Redevelopment Authority (URA) said yesterday that a 99-year leasehold site at Hougang Ave 2 is open for applications from interested developers.

URA had introduced six new residential sites to the reserve list under the H1 2010 government land sales programme. This 3.02 ha plot at Hougang is the first of them to be released.

The site can house a low density condominium or landed housing development. For condominium units or flats, the maximum gross floor area is 455,152 sq ft.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that the site could yield 380-400 units in a non-landed project, or 140-150 houses in a landed development.

The plot is located within a private residential estate and is near Hougang HDB town. It is also near the Hougang and Kovan MRT stations.

Property consultants expect developers to show keen interest in the land parcel. DTZ executive director Ong Choon Fah observed that it sits within an established landed housing estate, and residents there could form a pool of potential buyers.

For instance, young people may be interested in condominium units there so that they can live near their parents, she said.

Mr Mak believes that a developer who plans for a non-landed project on the site could have a higher chance of winning the tender. This is because non-landed projects can be sold for a higher price on a per sq ft (psf) basis, and the developer would be able to bid more aggressively.

He expects the site to attract some four to eight bids if it is triggered for sale, and the higher bids could range from $159-$193 million, which works out to $350-$425 psf per plot ratio.

Nearby, two units at Kovan Residences were sold at $754-$890 psf last month, going by caveats lodged.

URA will make the remaining five new residential sites on the reserve list available soon. It will release one at Stirling Road and another at Hougang Avenue 7 next month. One site in April and two in May will also be available.

In addition, the government will be releasing another four sites on the confirmed list - two in March and two in April.

Together, sites on the reserve and confirmed lists can supply 10,550 units - the highest number in the history of the government land sales programme.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : South Beach to start building by 2011

Business Times - 26 Feb 2010

South Beach to start building by 2011

Owners eye lower costs, with mega projects completed

By KALPANA RASHIWALA

(SINGAPORE) The consortium that owns the South Beach site now plans to begin construction 'by next year' - since most of the mega projects including the two integrated resorts are nearing completion and 'contractors will be hungry' for business by then.

This will enable the consortium to award construction contracts at lower cost, reckons Kwek Leng Beng, executive chairman of City Developments Ltd (CDL), a member of the consortium.

In August last year, he had indicated that construction was likely to begin around the third quarter of this year. CDL teamed up with Dubai World and El-Ad Group to buy the 99-year leasehold site for $1.69 billion at a Singapore government tender in 2007.

In June last year, a new party entered the picture when Hong Kong developer Nan Fung, along with CDL, subscribed for five-year secured convertible notes under a refinancing exercise for the site's land loan.

CDL also announced yesterday that South Beach Consortium Pte Ltd has appointed a new CEO, Aloysius Lee, to replace Paul Gately, who has left.

Mr Lee, who came on board late last year, was formerly managing director (commercial) of Shui On Development Limited and executive director of Shui On Land, where his duties included overseeing the branding and operations of Shanghai Xintiandi.

The South Beach consortium has also hired special structural engineering consultants from the UK to assist in lowering costs by 'value engineering' to maximise the asset's value. The plan is to develop South Beach into a retail, office, hotel and residential project. Mr Kwek also reiterated that the consortium is studying how to tap synergies between South Beach and next door Suntec City convention centre as well as Marina Bay Sands and Resorts World Sentosa.

Last year, Mr Kwek indicated that Nan Fung and CDL would probably be the ones to pump in further money. El-Ad and Dubai World are likely to be passive investors who may then see their share in the project diluted.

Yesterday, he said that a meeting will be held among South Beach investors sometime next week to discuss contribution for the project's further development.

'In terms of financing, we have not discussed and we cannot presume the two partners have no money, their shares will be diluted. Our verbal understanding with Nan Fung is that both of us will put in more money . . .

'I am not concerned whether there's shortage of money to build. I'm more concerned (whether we) can we build something that can be very exciting, everyone falls in love with, (and comes) knocking at my door: 'Can I buy this?'

Based on a recent external valuation for the year ended Dec 31, 2009, no impairment charge is required for the South Beach development.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

ST Forum : Don't micro-manage property market

Feb 25, 2010

Don't micro-manage property market

I REFER to Mr David Goh's letter on Tuesday ('They don't go far enough in curbing excess') about the new measures to curb property speculation. While the causes of the property price spike mentioned are valid, the proposed solutions may not be in Singapore's best interests.

Raising the interbank interest rate too quickly could put the Singapore economy out of sync with the rest of the world. Our competitiveness may be hampered.

In addition, it must be noted that raising interbank interest rates has widespread ramifications. It should be undertaken only if it is deemed beneficial for the economy at large, and not just to curb speculation in a specific market.

There were also suggestions to ban collective sales of properties that are less than 30 years old, and requiring developers to redevelop en bloc properties within three years of acquisition. These measures would be detrimental to the free market principles that Singapore has thrived on.

I agree that the authorities should intervene in the property market as justified by the exuberance shown.

However, the two proposed solutions seem like an attempt to micro-manage the industry, which could hurt our free-market, business-friendly image.

Business activities, including property development, and prices should largely be established by free market participants.

The Government should not be deciding optimal property prices or which properties to acquire and when to develop them. Its role is to act in a counter-cyclical manner in terms of broad policy direction, so as to guide the market away from extreme booms and busts.

The latest steps by the Government seem moderate and considered. If the property market heats up further, an escalation of macro measures can be introduced subsequently. Drastic measures must be avoided as they can plunge the market into disarray.

Loke Hon Yiong

TODAY Online : Strong demand for latest BTO projects

Strong demand for latest BTO projects

05:55 AM Feb 25, 2010

SINGAPORE - There has been strong demand for the two latest Housing and Development Board Build-to-Order (BTO) projects at Punggol Crest and Treegrove@Woodlands. At 5pm yesterday, the developments were four-times oversubscribed, with 6,375 applications for the 1,534 units on offer.

The bigger flats were more popular with 2,613 applicants vying for 270 four-room units at Punggol Crest. The 372 four-room units on offer at Treegrove had 2,426 applications.

By contrast, only 76 people applied for the 240 two-room units at Punggol Crest.

The prices for Punggol Crest range from $90,000 for a two-room flat to $301,000 for a four-room flat. At Treegrove, prices ranged from $64,000 for a studio apartment to $288,000 for a four-room flat.

Applications closed at midnight yesterday.

Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved

CNA : Real estate developers to bring forward property launches

Real estate developers to bring forward property launches
By S Ramesh, Channel NewsAsia | Posted: 25 February 2010 1714 hrs

SINGAPORE : Singaporeans can look forward to more property launches. The Real Estate Developers' Association of Singapore (REDAS) on Thursday announced that its members will be bringing forward property launches.

REDAS added that its efforts are only limited by the land available and hence the long-term solution to a stable market is still adequate supply.

The association celebrated the Lunar New Year, riding on an upbeat mood.

Joining in its Spring Festival was Finance Minister Tharman Shanmugaratnam, and the association shared with him its views on his recent Budget Statement.

Simon Cheong, president, Real Estate Developers' Association of Singapore, said: "REDAS was hoping for more cash in our ang pows (red packets) from you, Minister. But when we opened the ang pow, we were disappointed there was not much inside for developers.

"Nonetheless, we are happy with your long-term productivity ang pow, as what is good for Singapore's economy in the long run must also be good for the Singapore property market. It is what REDAS calls a deferred payment ang pow."

REDAS said that its members are surprised with the speed with which Singapore's property market has recovered. But they added that they are prepared to live with the current problems rather than the problems faced by the property market last year.

However, in the interest of a stable property market, REDAS said its members are committed to a fast-track supply to satisfy demand. This would also minimise excessive speculation in the property market.

Mr Cheong said: "Given the unexpected return of an active property market, developers over the next few months would also be actively bidding for more land to position for the future supply.

"As such, REDAS, unlike the situation in the preceding 12 months, is now looking forward to more sites in the confirmed list for developers to replenish their land bank."

Just last week, the government introduced two more measures to cool the property market and pre-empt a bubble from forming in the private homes sector. - CNA/ms

ST : High Court okays Horizon Towers lawsuit

Feb 25, 2010

High Court okays Horizon Towers lawsuit

By K.C. Vijayan

MINORITY owners have had a key victory in yet another court fight over the failed $500 million Horizon Towers en-bloc deal.

An assistant registrar in the High Court yesterday threw out a bid by two former members of the sales committee to halt an action against them by the owners.

The three sets of minority owners are suing the two - ex-committee chairman Arjun Samtani and ex-member Tan Kah Gee - over costs incurred when they tried to block the collective sale.

They want to be reimbursed for more than $800,000 in costs. This includes the cost of hiring lawyers to advise them and other administrative costs.

The sum is expected to be partially offset when the costs awarded to the owners by the Court of Appeal last year, after the en-bloc deal was quashed, are assessed.

The owners argue that both committee members were 'key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process', according to court documents.

Lawyers for the committee members countered that the minority owners' suit should be struck off as the action was 'scandalous, frivolous (and) vexatious'. They also pointed out that the Court of Appeal awarded costs last April in a case that dealt with all outstanding issues of reimbursement.

But the minority owners argued that the new case is different from the one settled last year.

In that case last year, costs were awarded for the minority owners' conduct in opposing the proposed sale by the consenting majority owners.

The present action is different as it is based on what they claim is the lack of good faith in the collective sale deal struck by Mr Arjun and Mr Tan as members of the sales committee.

They allege that this 'lack of good faith' resulted in minority owners having to put in a great deal of effort and spend a lot of money to oppose the sale.

In effect, they claim there was a breach of fiduciary duties and they want to be compensated for the costs from the resulting damages.

Mr Kannan Ramesh, who is acting for the owners, said in his submissions: 'The causes of action in both cases are appreciably different.'

At a closed-door hearing yesterday, assistant registrar Leong Weng Tat ruled in a reserved judgement that the suit by the minority owners should proceed.

Mr Arjun and Mr Tan, represented by Mr N. Sreenivasan and senior counsel Tan Cheng Han respectively, can appeal to the High Court against the decision, otherwise the case will advance to a full hearing. Lawyers say either way, the case may eventually go to the Court of Appeal.

The Horizon Towers collective sale spanned more than two years and involved two Strata Titles Board hearings and two High Court hearings before being thrown out by the Court of Appeal last year.

BT : Horizon Towers lawsuits headed for trial

Business Times - 25 Feb 2010

Horizon Towers lawsuits headed for trial

High Court dismisses striking out action by 2 former sales committee members

By MICHELLE QUAH

(SINGAPORE) The latest legal tussle involving Horizon Towers looks set to go into full swing, with the High Court having dismissed the action by the two defendants to strike out the lawsuits filed against them.

This means the court will hear the claims brought by three sets of minority owners against the two former sales committee members - unless the defendants succeed in appealing against yesterday's decision.

BT understands that the first defendant - former sales committee chairman, Arjun Samtani - will appeal the High Court decision, while the second defendant, Tan Kah Gee, is still deliberating if he should appeal.

The High Court yesterday also ordered both Mr Samtani and Mr Tan to jointly bear the costs of the striking-out application and the court hearing - amounting to a total of $6,000.

The minority owners are suing the two former sales committee members to reclaim close to $1 million in legal and administrative costs which they say they incurred during the lengthy fight to keep their homes.

The en bloc sale of Horizon Towers was a saga that dragged out for more than two years, and involved several High Court and Strata Titles Board hearings. The Court of Appeal eventually decided in April last year that the deal could not go through because the development's sales committee had failed in its duty.

The Court of Appeal had ordered the bulk of costs to be borne by the development's potential buyer, Hotel Properties Ltd (HPL), and its majority owners.

But three sets of minority owners, represented by Kannan Ramesh of Tan Kok Quan Partnership, are now seeking compensation for the sums not covered by the Court of Appeal judgment. The three sets of owners are seeking between $117,000 and $370,000 in costs - making for a total claim of more than $800,000.

The minorities say they were made to defend their homes against an en bloc process actuated by a lack of good faith on the part of the sales committee, and had to spend much for their effort.

They said Mr Samtani and Mr Tan were 'key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process'.

In his defence, Mr Samtani - represented by N Sreenivasan of Straits Law Practice \-- said he was not alone in driving the sale process. He said 'each and every member of the SC (sales committee) played an equally important role' and that he 'did not have any special powers' that could influence the committee's decisions.

Mr Samtani also claimed that the committee 'followed up on all expressions of offer' for Horizon Towers and that it received no offer better than HPL's at the relevant time. He said the committee was advised by its lawyers to proceed with the HPL offer.

Mr Tan, represented by Senior Counsel Tan Cheng Han and Ian Lim of TSMP Law Corporation, said he was 'not a key player' and cited various correspondence and minutes of sales committee meetings which he said showed that he did not play a major role in the various aspects of the collective sale.

Mr Tan also said that the sales committee did not seriously consider an alternative offer made at the time by a Vineyard Holdings, as it had 'questioned the credibility of the expression of interest from Vineyard and their level of seriousness given that Vineyard was a Hong Kong company that was not well known and its lawyers were not from a Singaporean firm, but from a small Malaysian law firm'.

He claims he suggested waiting for a higher offer, but that the majority of the sales committee did not agree. He said the sales committee genuinely felt they would not get a better offer than the one by HPL, and that they had been advised by their lawyers to accept the offer.

Mr Tan had also sought to strike out the minorities' suits against him and Mr Samtani, saying that the entire remedy sought by the minorities was already dealt with by the Court of Appeal last April, when it decided on how it would award costs to the various parties. But the High Court chose to dismiss this application yesterday.

The defendants have 14 days to submit their appeal.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Game on as MBS gears for April 27 opening

Business Times - 25 Feb 2010

Game on as MBS gears for April 27 opening

Second casino will split punters, show real size of market

By ARTHUR SIM

(SINGAPORE) With Singapore's first casino hogging the headlines and the clientele so far, the second one has edged its way into the picture by announcing that it will open for business on April 27.

Las Vegas Sands (LVS) made the surprise announcement yesterday that its Marina Bay Sands (MBS) casino will get rolling in about two months, leaving market watchers speculating on the timing of the news so far in advance of the opening.

Some believe that LVS may be under pressure from its bankers to give some indication on when MBS can start generating cash flow.

LVS, which has operations in the US and Macau has total debt of about US$11 billion and approximately US$5.85 billion of cash, cash equivalents and available sources of liquidity.

If LVS's bankers are nervous, it is likely due to the turnout at rival the Resorts World Sentosa casino which has been seeing about 21,000 punters a day - relatively low, compared to new casino openings in Macau.

Analysts at Nomura expect this number to fall further with MBS claiming its market share. 'With hardcore gamblers increasingly being deterred from entering the casino, we see significant downside risks to the unrealistically high expectations on the potential size of the casino gaming market by consensus,' it added.

Earlier earnings projections by LVS may now be unrealistically high. In December 2009, LVS chairman Sheldon Adelson had said that MBS could rake in about US$1 billion annually before deducting interest, taxes, depreciation and amortisation expenses.

While some market estimates range between US$400 million and US$800 million, Citigroup has projected a 2010 Ebitda of as low as US$248.8 million in a recent report.

Citigroup also visited the MBS site recently and said: 'Post our recent site visit in January, we remain sceptical that MBS will be ready to open by April.'

Bank of America Merrill Lynch analyst Melvyn Boey noted that LVS estimates have been 'fairly bullish' so numbers will have to pick up to achieve earlier forecasts.

Market watchers believe another reason for LVS's announcement is try to expedite the award of the casino licence in the light of Resorts World Sentosa casino opening with less than 50 per cent of the integrated resort operational.

The MBS casino will open together with about 40 per cent of its hotel rooms, part of the retail mall and convention centre, as well as some F&B outlets, 'subject to construction proceeding as scheduled and being able to attain the necessary regulatory approvals'.

LVS said that the Sands SkyPark, the Event Plaza, the remaining hotel rooms, more shops and F&B outlets will open on June 23.

This will be followed by the two theatres in October and the Marina Bay Sands museum in December.

Giving some clarity on requirements for the casino licence, a spokesman for Singapore Tourism Board said: 'One of the requirements for issuing the casino licence is that at least half of the integrated resorts' gross floor area has been completed and at least half of the committed investment has been expended.'

Vivian Heng, spokeswoman for the Casino Regulatory Authority (CRA) added: 'CRA issued the casino licence to Resorts World Sentosa on 6 February 2010, after Resorts World Sentosa fulfilled the requirements for casino licence issuance.'

CRA added that MBS needs to obtain other regulatory approvals (eg surveillance plan, internal controls systems) before the casino licence is issued. 'Marina Bay Sands is in the process of clearing the required steps for casino licence issuance,' it added.

Regardless of whether LVS gets its casino licence in time, MBS will have to open if only because it is committed to welcoming delegates of the Inter-Pacific Bar Association's annual conference within days of the April 27 deadline, with Al Gore said to be one of the speakers.

Apart from competing for casino business, RWS has also emerged as a rival for some of MBS's meetings, incentives, conventions and exhibitions (Mice) business too.

Still, Jonathan Galaviz, an independent travel and leisure sector strategist believes MBS has a clear advantage here. 'I would expect that both RWS and MBS will compete for smaller scale Mice events with MBS of course having the stronger competitive advantage for the larger ones,' he added.

Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

BT : Buzz in private housing sales continues

Business Times - 25 Feb 2010

Buzz in private housing sales continues

Weekend sales of about 45 units at Waterscape at Cavenagh and over a dozen units at L'VIV

By KALPANA RASHIWALA

THE buzz in private home sales appears to be continuing even after last Friday evening's government announcement of new measures to cool the property market.

About 45 units at Hiap Hoe's Waterscape at Cavenagh are said to have been sold since Saturday - the bulk of them one bedders although some two and three-bedroom units were also sold. Hiap Hoe is understood to have offloaded 61 units so far in the 200-unit project, which will be officially launched soon. The majority of buyers are understood to be Singaporeans; foreigners made up about 15-20 per cent of purchasers.

The freehold project is five to seven storeys high. The average price achieved is understood to be about $1,873 per square foot, with prices ranging from $1,738 to $2,010 psf. The lowest-priced unit sold was a one-bedder of 581 square feet on the second level that fetched $1.03 million or $1,778 psf.

Wing Tai is also understood to have sold slightly more than a dozen units over the weekend at L'VIV at Newton Road. This takes total sales to about 35 units.

The 147-unit freehold project comprises almost entirely of one and two-bedroom units (both with study). The average price is said to be about $2,000 psf and buyers have to purchase on the old deferred payment scheme (DPS). They pay 20 per cent of the purchase price initially with the rest deferred till the 32-storey project receives Temporary Occupation Permit, which is expected around 2013.

Developers that had obtained approval from the authorities to sell projects on DPS prior to the scheme being scrapped in October 2007 are still allowed to offer DPS.

Last Friday, just hours before the government's announcement, a joint venture between Sing Holdings and Forum Partners is said to have sold more than 40 units at The Laurels on Cairnhill Road, which is being developed on the former Hillcourt Apartments site.

The units were sold at a one-day private preview held for former owners of Hillcourt Apartments as well as the developers' staff and business associates. Those who turned up for the preview were quoted a price range of $2,500 to $2,900 psf, although a one-bedder on the 18th floor is said to have sold at just a shade below $3,000 psf. In absolute quantum, the highest-priced unit transacted was a penthouse with four bedrooms and a garden that fetched almost $9.9 million or about $2,040 psf, BT understands.


'Buyers are quite confident prices won't fall; in fact, they're likely to rise because of the improving economy and the completion of the IRs.'

- a seasoned property consultant


The buyers were mostly Singaporeans, although some Indonesians who had formerly lived in Hillcourt are also said to have bought. The Laurels will be next previewed in a fortnight, on March 13.

The project is near Capitaland's Urban Suites, where 88 units were sold last month at prices ranging from $2,213 psf to $2,921 psf.

The landed housing market also continues to teem with activity. RealStar Premier Property Consultant managing director William Wong says that his firm has brokered or co-brokered four bungalow deals in the past few days. These include a two-and-a-half-storey property at Berrima Road off Dunearn Road that sold for $8.75 million or $1,944 psf, based on its land area of about 4,500 sq ft. The bungalow was completed a few months ago.

At Kheam Hock Road nearby, a brand new bungalow sold for $8.5 million or $1,577 psf. The other two transactions were at Namly Grove ($10.8 million or $1,125 psf) and Coronation Road West ($10.4 million or $906 psf).

Mr Wong does not expect the measures announced by the government last Friday - which include a seller's stamp duty for those who sell a residential property within a year of purchase - to affect landed property buyers. Those who buy bungalows often renovate them and this could take six months to a year; so they're unlikely to have been planning to resell within a year, according to Mr Wong. Besides, bungalow buyers usually have more holding power, he added.

Mr Wong forecasts a 5-10 per cent rise in landed home prices this year, citing limited supply; the stock of landed homes on the island is much smaller than condos/apartments.

Singaporeans make up about 60 per cent of Mr Wong's bungalow buyers these days; the other 40 per cent are permanent residents, who are allowed to buy bungalows with land areas up to around 15,000 sq ft.

Meanwhile, at West Coast Crescent, agents marketing The Vision are said to be collecting cheques ahead of the 99-year leasehold project's preview planned in the second week of March.

Those issuing cheques are said to have been told prices could be in the $1,000 to $1,200 psf range, although there will be an early bird discount.

The Vision, being developed by a Singapore unit of Cheung Kong Holdings, comprises 281 apartments housed in two 33-storey towers and 14 strata houses. The development will not have any one-bedroom apartments, which typically are the first to be snapped up these days because of the lower entry barrier in terms of a smaller lumpsum investment.

Instead, The Vision's apartments will be two, three, and four bedders as well as penthouses. The majority of units are three-bedroom apartments - mostly ranging from 1,259 to 1,313 sq ft, with three ground floor units (inclusive of private enclosed space) of 1,776 sq ft to over 2,000 sq ft.

Summing up the continued enthusiasm of home buyers, a seasoned property consultant said: 'Buyers are quite confident prices won't fall; in fact, they're likely to rise because of the improving economy and the completion of the IRs.'

Agreeing, an agent says: 'There's still a lot of money; if you can't put it in property, where else can you put it?'



Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.