Apr 21, 2010
Punggol gets two new HDB projects
Build-to-order developments, with eco-friendly features, will add 1,429 flats to the market
By Esther Teo
ANOTHER 1,429 flats will be up for grabs in fast-developing Punggol after the HDB launched two new build-to-order (BTO) projects yesterday.
The developments - Punggol Emerald and Punggol Waves - will deliver 188 studio apartments, 201 three-room units, 609 four-room units and 431 five-room units to eager home buyers.
Yesterday's launches are part of a broader HDB plan to launch 12,000 flats in the first three quarters of this year amid strong buyer demand. In the first four months of the year, 5,082 flats have been offered. A further 1,100 BTO units will be launched in Yishun and Jurong West next month.
More future launches have been earmarked for estates such as Bukit Panjang, Sengkang and Woodlands. Construction of BTO projects is triggered once a certain level of sales has been achieved.
Punggol Emerald - located at the junction of Punggol Way and Punggol Central - will boast 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
Punggol Waves, located in Punggol Walk and south of the future Punggol Town Centre, will consist of 105 three-room flats, 259 four-room flats and 209 five-room flats.
Three-roomers of 65 sq m area at Punggol Emerald are priced at $166,000 to $200,000 while those at Punggol Waves will go for $150,000 to $186,000.
Four-room flats of 90 sq m area in Punggol Emerald are going for $262,000 to $323,000 while those at Punggol Waves will cost $243,000 to $301,000.
Five-roomers of 110 sq m area will cost between $333,000 and $403,000 at Punggol Emerald and between $330,000 and $385,000 at Punggol Waves.
Studio apartments at Punggol Emerald ranging from 35 to 45 sq m will cost $73,000 to $102,000.
Both developments will incorporate eco-friendly features to achieve energy efficiency, environmental protection and other green features, such as a secondary roof system to reduce heat, as part of plans to develop Punggol as an eco-town, HDB said.
It added that the BTO supply will also be supplemented by flats under the Design, Build and Sell Scheme, with the tender of a Yishun site closing on May 18 expected to yield about 700 units.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said both projects will probably be oversubscribed, with demand among home buyers still strong.
'Although it is not as popular as the mature estates, Punggol as a new town is growing in popularity.' He added, however, that Punggol Waves was next to the Tampines Expressway and might therefore attract a lower subscription rate than Punggol Emerald.
Applications for the new BTO flats can be made online at www.hdb.gov.sg until May 3.
esthert@sph.com.sg
Wednesday, April 21, 2010
BT Letters : Residents have power to deal with MC members
Business Times - 21 Apr 2010
LETTER TO THE EDITOR
Residents have power to deal with MC members
MS Florence Tan ('Keep members of MC, sales committee distinct', BT, April 15) suggests that members of management committees (MC) be distinct from members of en bloc sale committees (SC).
Ms Tan is of the view that there will be a conflict of interest when members of the MC, whose main role is to oversee maintenance of the estate, are also tasked with the responsibility for an en bloc sale.
Separating the members of an MC and SC may not be very practical for smaller estates if insufficient persons come forward to form two separate committees. The Land Titles (Strata) Act allows owners to elect who they feel are best suited to represent their interests into the SC. The Act also allows owners to remove any SC member or even the entire SC if they are of the opinion that they are not discharging their duties in a fitting manner.
Under the Building Maintenance and Strata Management Act, the MC is duty-bound to ensure the estate is well maintained and kept in a state of good and serviceable repair. Should the MC fail to perform its duties as imposed by law, residents can seek redress through the Strata Titles Board or the Court to compel the MC to perform its duties. If residents are unhappy with the performance of council members, they can consider removing the council members concerned by way of an ordinary resolution at a general meeting on grounds of neglect of duty.
Thus, it is entirely within the powers of the majority of the residents to deal with errant MC members.
Chong Wan Yieng (Ms)
Head, corporate communications Ministry of Law
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
LETTER TO THE EDITOR
Residents have power to deal with MC members
MS Florence Tan ('Keep members of MC, sales committee distinct', BT, April 15) suggests that members of management committees (MC) be distinct from members of en bloc sale committees (SC).
Ms Tan is of the view that there will be a conflict of interest when members of the MC, whose main role is to oversee maintenance of the estate, are also tasked with the responsibility for an en bloc sale.
Separating the members of an MC and SC may not be very practical for smaller estates if insufficient persons come forward to form two separate committees. The Land Titles (Strata) Act allows owners to elect who they feel are best suited to represent their interests into the SC. The Act also allows owners to remove any SC member or even the entire SC if they are of the opinion that they are not discharging their duties in a fitting manner.
Under the Building Maintenance and Strata Management Act, the MC is duty-bound to ensure the estate is well maintained and kept in a state of good and serviceable repair. Should the MC fail to perform its duties as imposed by law, residents can seek redress through the Strata Titles Board or the Court to compel the MC to perform its duties. If residents are unhappy with the performance of council members, they can consider removing the council members concerned by way of an ordinary resolution at a general meeting on grounds of neglect of duty.
Thus, it is entirely within the powers of the majority of the residents to deal with errant MC members.
Chong Wan Yieng (Ms)
Head, corporate communications Ministry of Law
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Circle Line spells boom for property owners
Apr 21, 2010
Circle Line spells boom for property owners
Values of homes near new stations fare better than overall market: Report
By Jessica Cheam
PROPERTY owners big and small are on track to reap big benefits, thanks to the opening of 11 new stations on the Circle Line, according to a report.
Industrial landlords such as Ascendas Reit (A-Reit), Mapletree Logistics Trust (MapletreeLog) and Suntec Reit own large properties around these stations and will see gains from the new transport route, said Credit Suisse.
Its report also showed that property values of homes near these MRT stations - which opened last Saturday - have fared better than the overall real estate market.
The proximity of such homes to the MRT stations - the locations were announced back in 2003 - have been gradually factored in over recent years.
Private home prices at projects such as Chiltern Park and Springbloom around Lorong Chuan station, which opened last May, have risen 27 to 40 per cent since June 2008.
They outperformed the overall market during the period in anticipation of the Circle Line opening, said Credit Suisse.
Report authors Tricia Song and Sean Quek estimate that property near MRT stations fetch a 15 to 20 per cent premium to similar properties that are not close to them.
When the opening of the North-East Line coincided with the Sars-related economic downturn in June 2003, projects such as Compass Heights at Sengkang MRT station and Sunglade near the Serangoon station managed to hold up.
This was despite a 12 per cent dip in the property price index between 2001 and 2004, noted the report.
It also said property firms A-Reit and MapletreeLog, which have industrial assets near the new Tai Seng and MacPherson stations, will benefit from the Circle Line opening.
Credit Suisse is positive on both A-Reit and MapletreeLog shares. It has a target price of $2.24 on A-Reit, which closed at $1.98 yesterday.
It tips 98 cents for MapletreeLog, which ended at 85.5 cents yesterday.
Suntec Reit and its manager ARA were singled out for Suntec City's offices and mall, which will enjoy a greater footfall due to its location near the Esplanade and Promenade stations.
Property developer Hongkong Land's One Raffles Link and CityLink Mall, and the mega City Developments South Beach mixed project could enjoy similar increases in traffic thanks to the Esplanade station.
The new Nicoll Highway station will benefit office workers and patrons at The Concourse, Keypoint, The Furniture Mall and The Plaza, added the report.
But Chesterton Suntec International's research and consultancy director, Mr Colin Tan, said that as traffic patterns change due to the new line, 'shops lining the different routes will swop fortunes - more pedestrian traffic for some and less for others'.
'For malls, the competition level is raised. If you're better, you will grab a large market share, but if your mall is not as appealing, you will lose more traffic from your own surrounding catchment than you gain from others,' he said.
The report also noted that new residential developments such as Waterbank @Dakota by UOL and Dakota Residences by Ho Bee near the new Dakota station, with a range of $900 to $1,400 per sq ft, have been well received by buyers.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that although properties near stations tend to be more resilient, they are not immune to economic downturns and rental pressures.
Developers and sellers of homes near such stations can ask for a 10 to 20 per cent premium, but might not necessarily get it, depending on the property's other attributes, he said.
The 11 new stations extend the reach of the first five Circle Line stations, which opened last May.
These 16 stations are expected to serve some 200,000 people daily, with that number rising once the last group of stations opens next year, including one at Holland Village.
The entire Circle Line project will cost $6.7 billion to develop.
jcheam@sph.com.sg
Circle Line spells boom for property owners
Values of homes near new stations fare better than overall market: Report
By Jessica Cheam
PROPERTY owners big and small are on track to reap big benefits, thanks to the opening of 11 new stations on the Circle Line, according to a report.
Industrial landlords such as Ascendas Reit (A-Reit), Mapletree Logistics Trust (MapletreeLog) and Suntec Reit own large properties around these stations and will see gains from the new transport route, said Credit Suisse.
Its report also showed that property values of homes near these MRT stations - which opened last Saturday - have fared better than the overall real estate market.
The proximity of such homes to the MRT stations - the locations were announced back in 2003 - have been gradually factored in over recent years.
Private home prices at projects such as Chiltern Park and Springbloom around Lorong Chuan station, which opened last May, have risen 27 to 40 per cent since June 2008.
They outperformed the overall market during the period in anticipation of the Circle Line opening, said Credit Suisse.
Report authors Tricia Song and Sean Quek estimate that property near MRT stations fetch a 15 to 20 per cent premium to similar properties that are not close to them.
When the opening of the North-East Line coincided with the Sars-related economic downturn in June 2003, projects such as Compass Heights at Sengkang MRT station and Sunglade near the Serangoon station managed to hold up.
This was despite a 12 per cent dip in the property price index between 2001 and 2004, noted the report.
It also said property firms A-Reit and MapletreeLog, which have industrial assets near the new Tai Seng and MacPherson stations, will benefit from the Circle Line opening.
Credit Suisse is positive on both A-Reit and MapletreeLog shares. It has a target price of $2.24 on A-Reit, which closed at $1.98 yesterday.
It tips 98 cents for MapletreeLog, which ended at 85.5 cents yesterday.
Suntec Reit and its manager ARA were singled out for Suntec City's offices and mall, which will enjoy a greater footfall due to its location near the Esplanade and Promenade stations.
Property developer Hongkong Land's One Raffles Link and CityLink Mall, and the mega City Developments South Beach mixed project could enjoy similar increases in traffic thanks to the Esplanade station.
The new Nicoll Highway station will benefit office workers and patrons at The Concourse, Keypoint, The Furniture Mall and The Plaza, added the report.
But Chesterton Suntec International's research and consultancy director, Mr Colin Tan, said that as traffic patterns change due to the new line, 'shops lining the different routes will swop fortunes - more pedestrian traffic for some and less for others'.
'For malls, the competition level is raised. If you're better, you will grab a large market share, but if your mall is not as appealing, you will lose more traffic from your own surrounding catchment than you gain from others,' he said.
The report also noted that new residential developments such as Waterbank @Dakota by UOL and Dakota Residences by Ho Bee near the new Dakota station, with a range of $900 to $1,400 per sq ft, have been well received by buyers.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said that although properties near stations tend to be more resilient, they are not immune to economic downturns and rental pressures.
Developers and sellers of homes near such stations can ask for a 10 to 20 per cent premium, but might not necessarily get it, depending on the property's other attributes, he said.
The 11 new stations extend the reach of the first five Circle Line stations, which opened last May.
These 16 stations are expected to serve some 200,000 people daily, with that number rising once the last group of stations opens next year, including one at Holland Village.
The entire Circle Line project will cost $6.7 billion to develop.
jcheam@sph.com.sg
BT : China tightens rules to prevent property bubble
Business Times - 21 Apr 2010
China tightens rules to prevent property bubble
It vows to punish developers that create artificial supply shortages
(BEIJING) China has ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging 'abnormally high' prices, stepping up efforts to prevent a property bubble.
Developers must disclose to the public all apartments available and prices, and start selling within 10 days of getting pre-sale approval, the Ministry of Housing and Urban-Rural Development said on its website yesterday. It vowed to punish developers that 'artificially' created supply shortages.
The focus on developers' sales tactics adds to curbs on loans for third- home purchases, increased downpayment requirements and higher mortgage rates announced in the past week. China's Cabinet has said that stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.
'It will have some impact curbing prices if implemented effectively,' said Li Shaoming, a Beijing-based analyst at China Jianyin Investment Securities Co. 'Tax policies may follow if those measure fail to produce evident effects.'
Developers who fail to start selling within the required time, price homes at 'abnormally high' levels, or 'artificially' create supply shortages by faking sale contracts, will be 'severely' punished, according to the statement. The government has repeatedly said that developers can't hoard land or intentionally delay sales to speculate on further price gains.
Agents are banned from practices including spreading false information and hyping up sales by hiring people to pretend they are buyers, the statement said. Such practices 'pushed the waves' in the rapid property price gains, Ms Li said.
The requirement that developers must disclose prices of all apartments and start to sell in 10 days of obtaining pre-sale approval is likely to cool prices should it be implemented properly, she said.
Developers tend to control the pace of supply and reserve some apartments, possibly in better locations, to sell at higher prices later, she added.
Local regulators must grant pre-sale approval to at least one entire building rather than some units or floors, according to the statement. Buyers' names can't be changed after the subscriptions, the statement said.
Chinese banks should stop loans for third-home purchases and suspend lending to buyers who can't provide tax returns or provide proof of social security contributions, the State Council, the nation's Cabinet, said in an April 17 statement. Local governments can limit the number of units that can be bought, while senior officials will be held responsible for failing to stabilise property prices, the statement said.
Two days earlier, the government raised mortgage rates and downpayment ratios for second home purchases after the record jump in home prices in March. Buyers purchasing their second homes must pay at least a 50 per cent deposit, up from 40 per cent, and interest rates should be at least 1.1 times benchmark rates, the State Council said in an April 15 statement.
Jun Ma, Deutsche Bank AG's Greater China chief economist, branded the moves the 'the most draconian measures on the property market in history'.
Haikou, Sanya Haikou and Sanya, cities on the southern island of Hainan, led the 70 cities that posted the biggest jumps in property prices in March. Overall real estate prices in Haikou, Hainan's capital city, jumped 53.9 per cent, while Sanya, which has hosted the Miss World beauty pageant, followed with a 52.1 per cent increase, the National Bureau of Statistics said on April 14.
Hedge fund manager James Chanos warned in an interview this month that China's property market is in a bubble that may burst as early as this year.
The country is 'on a treadmill to hell', according to Mr Chanos, who said in January that the nation is Dubai times a thousand. 'They can't afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Seeing red: Agents are banned from practices including spreading false information and hyping up sales
China tightens rules to prevent property bubble
It vows to punish developers that create artificial supply shortages
(BEIJING) China has ordered developers not to take deposits for sales of uncompleted apartments without proper approval and barred them from charging 'abnormally high' prices, stepping up efforts to prevent a property bubble.
Developers must disclose to the public all apartments available and prices, and start selling within 10 days of getting pre-sale approval, the Ministry of Housing and Urban-Rural Development said on its website yesterday. It vowed to punish developers that 'artificially' created supply shortages.
The focus on developers' sales tactics adds to curbs on loans for third- home purchases, increased downpayment requirements and higher mortgage rates announced in the past week. China's Cabinet has said that stricter measures to control speculation are needed after property prices in 70 cities jumped a record 11.7 per cent in March.
'It will have some impact curbing prices if implemented effectively,' said Li Shaoming, a Beijing-based analyst at China Jianyin Investment Securities Co. 'Tax policies may follow if those measure fail to produce evident effects.'
Developers who fail to start selling within the required time, price homes at 'abnormally high' levels, or 'artificially' create supply shortages by faking sale contracts, will be 'severely' punished, according to the statement. The government has repeatedly said that developers can't hoard land or intentionally delay sales to speculate on further price gains.
Agents are banned from practices including spreading false information and hyping up sales by hiring people to pretend they are buyers, the statement said. Such practices 'pushed the waves' in the rapid property price gains, Ms Li said.
The requirement that developers must disclose prices of all apartments and start to sell in 10 days of obtaining pre-sale approval is likely to cool prices should it be implemented properly, she said.
Developers tend to control the pace of supply and reserve some apartments, possibly in better locations, to sell at higher prices later, she added.
Local regulators must grant pre-sale approval to at least one entire building rather than some units or floors, according to the statement. Buyers' names can't be changed after the subscriptions, the statement said.
Chinese banks should stop loans for third-home purchases and suspend lending to buyers who can't provide tax returns or provide proof of social security contributions, the State Council, the nation's Cabinet, said in an April 17 statement. Local governments can limit the number of units that can be bought, while senior officials will be held responsible for failing to stabilise property prices, the statement said.
Two days earlier, the government raised mortgage rates and downpayment ratios for second home purchases after the record jump in home prices in March. Buyers purchasing their second homes must pay at least a 50 per cent deposit, up from 40 per cent, and interest rates should be at least 1.1 times benchmark rates, the State Council said in an April 15 statement.
Jun Ma, Deutsche Bank AG's Greater China chief economist, branded the moves the 'the most draconian measures on the property market in history'.
Haikou, Sanya Haikou and Sanya, cities on the southern island of Hainan, led the 70 cities that posted the biggest jumps in property prices in March. Overall real estate prices in Haikou, Hainan's capital city, jumped 53.9 per cent, while Sanya, which has hosted the Miss World beauty pageant, followed with a 52.1 per cent increase, the National Bureau of Statistics said on April 14.
Hedge fund manager James Chanos warned in an interview this month that China's property market is in a bubble that may burst as early as this year.
The country is 'on a treadmill to hell', according to Mr Chanos, who said in January that the nation is Dubai times a thousand. 'They can't afford to get off this heroin of property development. It is the only thing keeping the economic growth numbers growing.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Seeing red: Agents are banned from practices including spreading false information and hyping up sales
ST : Two more residential sites open for tender
Apr 21, 2010
Two more residential sites open for tender
By Esther Teo
THE roll-out of land in response to high demand for homes has continued, with the Government launching public tenders for two more sites yesterday.
Both residential development sites - in Hougang Avenue 2 and Upper Serangoon Road - are 99-year leasehold plots.
The Upper Serangoon site, in Pheng Geck Avenue, is on the Government's confirmed list. These sites are scheduled for tender without developers having to first indicate interest.
The Hougang site, however, is on the reserve list but is up for sale after a developer lodged an acceptable offer of $109.9 million. It is suitable for a low-density condominium, flats or landed housing.
Reserve list sites are offered on top of those on the confirmed list and are triggered for tender if at least one developer lodges an initial bid that meets a minimum threshold.
The Government has sold four residential sites with the potential to yield 1,710 units under the confirmed list since the start of the year.
Tenders are ongoing for another four sites on the confirmed list, including the Upper Serangoon site, which will close in the next two months. In total, these could yield another 1,215 units, the Urban Redevelopment Authority said.
Another 10 sites with the potential to yield 4,280 units are still available for sale on the reserve list of the first half of this year's government land sales programme, it added.
Real estate consultancy CBRE Research executive director Li Hiaw Ho said that with the Upper Serangoon site just a stone's throw away from the Potong Pasir MRT station and the Central Business District just a 10-minute drive away, it would be popular with both home buyers and developers.
He expects the site to attract about 10 bids with a land price of around $84 million to $94 million, equating to $450 to $500 per sq ft (psf) per plot ratio.
'Based on caveats lodged in the last six months, units in Woodsville 28 and 8@Woodleigh, which are new condominium developments in its immediate neighbourhood with 99-year leasehold tenure, were sold at between $885 psf and $1,130 psf in the sub-sale markets.
'Therefore, units in the subject site may be able to fetch $950 psf to $1,000 psf on the average by the time they are launched,' Mr Li said.
The tenders for the Hougang and Upper Serangoon sites close on May 20 and June 2 respectively.
Two more residential sites open for tender
By Esther Teo
THE roll-out of land in response to high demand for homes has continued, with the Government launching public tenders for two more sites yesterday.
Both residential development sites - in Hougang Avenue 2 and Upper Serangoon Road - are 99-year leasehold plots.
The Upper Serangoon site, in Pheng Geck Avenue, is on the Government's confirmed list. These sites are scheduled for tender without developers having to first indicate interest.
The Hougang site, however, is on the reserve list but is up for sale after a developer lodged an acceptable offer of $109.9 million. It is suitable for a low-density condominium, flats or landed housing.
Reserve list sites are offered on top of those on the confirmed list and are triggered for tender if at least one developer lodges an initial bid that meets a minimum threshold.
The Government has sold four residential sites with the potential to yield 1,710 units under the confirmed list since the start of the year.
Tenders are ongoing for another four sites on the confirmed list, including the Upper Serangoon site, which will close in the next two months. In total, these could yield another 1,215 units, the Urban Redevelopment Authority said.
Another 10 sites with the potential to yield 4,280 units are still available for sale on the reserve list of the first half of this year's government land sales programme, it added.
Real estate consultancy CBRE Research executive director Li Hiaw Ho said that with the Upper Serangoon site just a stone's throw away from the Potong Pasir MRT station and the Central Business District just a 10-minute drive away, it would be popular with both home buyers and developers.
He expects the site to attract about 10 bids with a land price of around $84 million to $94 million, equating to $450 to $500 per sq ft (psf) per plot ratio.
'Based on caveats lodged in the last six months, units in Woodsville 28 and 8@Woodleigh, which are new condominium developments in its immediate neighbourhood with 99-year leasehold tenure, were sold at between $885 psf and $1,130 psf in the sub-sale markets.
'Therefore, units in the subject site may be able to fetch $950 psf to $1,000 psf on the average by the time they are launched,' Mr Li said.
The tenders for the Hougang and Upper Serangoon sites close on May 20 and June 2 respectively.
ST : New Marina Bay link road to open
Apr 21, 2010
New Marina Bay link road to open
It will pass through Marina Bay Sands; opens on Sunday
MOTORISTS will have a another route to the Marina Bay area when a new link road opens at the weekend.
The 1.3km-long, two-way road, between Marina Boulevard and Raffles Avenue, opens on Sunday at 3pm.
Comprising a vehicular bridge and the newly constructed Bayfront Avenue, it will also pass through the upcoming Marina Bay Sands (MBS) integrated resort.
An Electronic Road Pricing gantry on the road will start operating from Monday and bus services 97, 97E, 106, 133, 502, 518, NR1 and NR6 will be rerouted to ply the new road network.
The road is an additional transportation link to the MBS, scheduled to open its first phase on Tuesday.
Separately, the integrated resort announced yesterday several transport options for its visitors.
Commuters can reach the resort by taking the MRT to the Marina Bay station on the North-South Line, and then take buses 133, 97, 97E or 106 to the resort.
Alternatively, visitors can stop at the Promenade MRT station on the Circle Line and take a 10-minute walk to Bayfront Avenue.
A 'double helix' pedestrian bridge running parallel to the Marina Bay vehicular bridge will open to pedestrians on Sunday, completing a 3.5km pedestrian loop around the bay.
The resort's carpark will have 800 parking spaces, and will charge $8 an hour.
There are no parking spaces for motorcycles or bicycles.
A satellite carpark with an additional 800 spaces has also been set up in Marina South, where drivers can park and board a shuttle bus to the resort for $10.
Motorcyclists will be allowed to park there.
In addition, the resort is providing a complimentary 24-hour airport shuttle service for its hotel guests.
TESSA WONG
New Marina Bay link road to open
It will pass through Marina Bay Sands; opens on Sunday
MOTORISTS will have a another route to the Marina Bay area when a new link road opens at the weekend.
The 1.3km-long, two-way road, between Marina Boulevard and Raffles Avenue, opens on Sunday at 3pm.
Comprising a vehicular bridge and the newly constructed Bayfront Avenue, it will also pass through the upcoming Marina Bay Sands (MBS) integrated resort.
An Electronic Road Pricing gantry on the road will start operating from Monday and bus services 97, 97E, 106, 133, 502, 518, NR1 and NR6 will be rerouted to ply the new road network.
The road is an additional transportation link to the MBS, scheduled to open its first phase on Tuesday.
Separately, the integrated resort announced yesterday several transport options for its visitors.
Commuters can reach the resort by taking the MRT to the Marina Bay station on the North-South Line, and then take buses 133, 97, 97E or 106 to the resort.
Alternatively, visitors can stop at the Promenade MRT station on the Circle Line and take a 10-minute walk to Bayfront Avenue.
A 'double helix' pedestrian bridge running parallel to the Marina Bay vehicular bridge will open to pedestrians on Sunday, completing a 3.5km pedestrian loop around the bay.
The resort's carpark will have 800 parking spaces, and will charge $8 an hour.
There are no parking spaces for motorcycles or bicycles.
A satellite carpark with an additional 800 spaces has also been set up in Marina South, where drivers can park and board a shuttle bus to the resort for $10.
Motorcyclists will be allowed to park there.
In addition, the resort is providing a complimentary 24-hour airport shuttle service for its hotel guests.
TESSA WONG
ST : Keppel Land profits jump 75% to $65m
Apr 21, 2010
Keppel Land profits jump 75% to $65m
Stellar performance by property trading arm
By Esther Teo
ROBUST residential sales in markets across Asia, in the wake of the economic recovery, sent first quarter net profits rocketing by 75.3 per cent at Keppel Land.
The developer reported earnings of $64.7 million for the three months to March 31, while revenue rose a more modest 9 per cent to $158.8 million, compared with $145.7 million in the same period last year.
Keppel Land's property trading segment was its star performer, with a 53.6 per cent increase in profits to $48.7 million.
This was thanks to increased contributions from the posh residential developments of Reflections and Caribbean, both at Keppel Bay, and the Marina Bay Suites.
Increased profit contributions from China also boosted overseas first quarter profits to $20.5 million - 31.7 per cent of total earnings, and up from a share of 25.5 per cent in the same period last year.
Residential projects such as The Arcadia in Tianjin and Villa Riviera in Shanghai did well, contributing profits of $10.2 million. Sales in Vietnam, Indonesia and India were also buoyant.
Property investment also performed well, as the office market took a positive turn. Profits from the segment increased 29.2 per cent year on year to $12.4 million, due mainly to the improved earnings of K-Reit Asia.
Grade A office occupancy had increased to 94.5 per cent from 93.8 per cent the previous quarter.
Higher fee income from the group's fund management vehicles - K-Reit Asia Management and Alpha Investment Partners - also bolstered net profit at its fund management segment to $7.4 million. This was up 60.9 per cent from the same period last year.
Earnings per share for the first quarter rose to 4.5 cents from 3.6 cents for the previous year, while net asset value per share was $2.43 as of March 31, up from $2.36 as at Dec 31 last year.
The company said it plans to launch another 100 to 200 units at Reflections at Keppel Bay in phases to capitalise on the continuing demand for premium residences near Resorts World Sentosa.
Marina Bay Suites will also be launched this year to capitalise on the opening of Marina Bay Sands.
Keppel Land said that besides Singapore, it will also focus on markets in China, India and the Middle East where there is a shortage of good-quality housing to satisfy the needs of their growing middle-class population.
However, the group acknowledges possible challenges such as political uncertainty. It also mentioned in its financial statement the economic uncertainties it would face if the rebound from the slowdown is not sustained.
Keppel Land's shares fell by seven cents yesterday to $3.66.
esthert@sph.com.sg
Reflections at Keppel Bay is one of the projects that contributed to a 53.6 per cent profit rise for Keppel Land's property trading arm. -- PHOTO: KEPPEL CORP
Keppel Land profits jump 75% to $65m
Stellar performance by property trading arm
By Esther Teo
ROBUST residential sales in markets across Asia, in the wake of the economic recovery, sent first quarter net profits rocketing by 75.3 per cent at Keppel Land.
The developer reported earnings of $64.7 million for the three months to March 31, while revenue rose a more modest 9 per cent to $158.8 million, compared with $145.7 million in the same period last year.
Keppel Land's property trading segment was its star performer, with a 53.6 per cent increase in profits to $48.7 million.
This was thanks to increased contributions from the posh residential developments of Reflections and Caribbean, both at Keppel Bay, and the Marina Bay Suites.
Increased profit contributions from China also boosted overseas first quarter profits to $20.5 million - 31.7 per cent of total earnings, and up from a share of 25.5 per cent in the same period last year.
Residential projects such as The Arcadia in Tianjin and Villa Riviera in Shanghai did well, contributing profits of $10.2 million. Sales in Vietnam, Indonesia and India were also buoyant.
Property investment also performed well, as the office market took a positive turn. Profits from the segment increased 29.2 per cent year on year to $12.4 million, due mainly to the improved earnings of K-Reit Asia.
Grade A office occupancy had increased to 94.5 per cent from 93.8 per cent the previous quarter.
Higher fee income from the group's fund management vehicles - K-Reit Asia Management and Alpha Investment Partners - also bolstered net profit at its fund management segment to $7.4 million. This was up 60.9 per cent from the same period last year.
Earnings per share for the first quarter rose to 4.5 cents from 3.6 cents for the previous year, while net asset value per share was $2.43 as of March 31, up from $2.36 as at Dec 31 last year.
The company said it plans to launch another 100 to 200 units at Reflections at Keppel Bay in phases to capitalise on the continuing demand for premium residences near Resorts World Sentosa.
Marina Bay Suites will also be launched this year to capitalise on the opening of Marina Bay Sands.
Keppel Land said that besides Singapore, it will also focus on markets in China, India and the Middle East where there is a shortage of good-quality housing to satisfy the needs of their growing middle-class population.
However, the group acknowledges possible challenges such as political uncertainty. It also mentioned in its financial statement the economic uncertainties it would face if the rebound from the slowdown is not sustained.
Keppel Land's shares fell by seven cents yesterday to $3.66.
esthert@sph.com.sg
Reflections at Keppel Bay is one of the projects that contributed to a 53.6 per cent profit rise for Keppel Land's property trading arm. -- PHOTO: KEPPEL CORP
BT : S-Reit sector bounces back from global crisis
Business Times - 21 Apr 2010
S-Reit sector bounces back from global crisis
With the completion of recapitalisation exercises and major refinancing S-Reits are poised for acquisitive growth, writes INDRAN THANA
IN LATE 2008, the effects of the global financial crisis had come to a head.
What started as a spike in real estate prices in the United States gradually spread to other jurisdictions and when the bubble eventually burst, the fallout brought global credit markets to their collective knees. Real estate companies, having witnessed their stock prices plummet, were forced to watch as credit liquidity dried up.
The negative investor sentiment did not spare Singapore real estate investment trusts (S-Reits). The market capitalisation of S-Reits declined by more than 50 per cent in the second half of 2008, and continued their slide into the first quarter of 2009. The impact was widespread, with little distinction being made for the individual qualities of particular Reits.
Credit/refinancing risk (in view of the requirement to distribute in excess of 90 per cent of taxable income in order to enjoy tax transparency) was cited as one of the primary reasons for the unit price declines and S-Reits sought to address this concern. However, this was no easy task for Reit managers, as banks, constrained by their own credit considerations and with no clear idea of the extent and duration of market uncertainties, were less than eager to put their balance sheets in jeopardy.
With the completion of recapitalisation exercises and major refinancing, the S-Reit sector has re-rated and prices have rebounded strongly. By the end of 2009, S-Reit prices were up approximately 60 per cent from the start of the year.
Over the last eight years, S-Reits have grown not only in scale, but also in complexity and depth. S-Reits now own assets in retail, commercial, industrial, healthcare, hospitality and residential sectors, located in numerous jurisdictions around the region.
Structures have changed too, with the constraints posed by the traditional Reit regulatory regime being overcome by the use of alternative structures. For example, selected property trusts have utilised the business trust structure to overcome development constraints, whilst incorporating a majority of traditional Reit structure elements to leverage on the relatively wider Reit investor base. Investors too have matured, with many now largely able to differentiate the quality of individual property trusts.
2010 began on a positive note, with the $182 million placement exercise undertaken by Frasers Centrepoint Trust executed at a tight discount of 3.7 per cent to adjusted volume weighted average price. This was followed by the IPO of Cache Logistics Trust (CLT), the first property trust IPO in almost two years. Cache's IPO attracted a subscription rate of approximately 7.8 times, demonstrating the market's strong appetite for new Reit products.
It would be safe to assume that issuers will aim to repeat the success of CLT's; seeking to raise capital and kick-start growth plans which may have been largely set aside in the preceding years. Listed Reits, free from refinancing concerns (only approximately 17 per cent of S-Reit debt matures in 2010) retain the option to revisit the capital markets this year, and to undertake equity fund raising to fund acquisitive growth.
Reit managers, with the events of 2009 still fresh in their minds, are unlikely to be keen to gear up too excessively to fund acquisitions, despite liquidity having largely returned to the credit markets. In this regard, listed Reits that are trading at premiums to net asset value, are well positioned to deliver accretive acquisitive growth to unitholders.
As the S-Reit market continues to mature, investors should not lose sight of the fundamentals that led to the sector's success in the first place. Investors seeking to invest in a particular Reit should begin by analysing its property portfolio.
Areas for consideration include property type, geographical location, occupancy rates, demographics, lease terms, tenant quality and diversity. These, in turn, would impact the portfolio's aggregate rental income and ultimately, the sustainability and stability of the Reit's distributable income.
Investors should also consider the Reit manager, a critical component of a high quality Reit. The principal responsibilities of the Reit manager include the development and implementation of the Reit's investment strategy as well as the management of its portfolio and capital structure to ensure the long term success of the Reit. A strong Reit manager is made up of a team of experienced individuals, with expertise specific to the asset portfolio and the Reit structure.
Besides the Reit manager, investors should also look to the quality and commitment of the Reit sponsor. A Reit sponsor would typically hold a meaningful stake in the Reit, hold a stake (part or whole) in the Reit manager, provide an acquisition pipeline by means of a right of first refusal and make available a business network to facilitate the Reit's growth plans. On occasion, the sponsor shares its name with the Reit to provide familiarity to investors based on its own track record of performance.
As global equity and credit markets continue to recover, potential Reit sponsors from around the region will continue to look to Singapore as a premier listing destination.
This is given the critical mass of listed Reits trading on the Singapore Exchange, its vibrancy and strong track record of market performance, conducive regulatory and tax framework as well as investor familiarity and confidence in standards of governance. The manner in which regulators and market participants have worked together, to enable the Reit sector to weather and emerge stronger after an unprecedented financial crisis, has not gone unnoticed.
At the end of the day, in a world of increasing complexity, the simplicity of the Reit model, its strong underlying fundamentals, and relatively risk averse nature, make it an attractive option for investors to consider.
The writer is assistant vice president, DBS Capital Markets
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Good start: 2010 began on a positive note, with the $182 million placement exercise undertaken by Frasers Centrepoint Trust executed at a tight discount of 3.7 per cent to adjusted volume weighted average price (above). This was followed by the IPO of Cache Logistics Trust (CLT), the first property trust IPO in almost two years (next)
S-Reit sector bounces back from global crisis
With the completion of recapitalisation exercises and major refinancing S-Reits are poised for acquisitive growth, writes INDRAN THANA
IN LATE 2008, the effects of the global financial crisis had come to a head.
What started as a spike in real estate prices in the United States gradually spread to other jurisdictions and when the bubble eventually burst, the fallout brought global credit markets to their collective knees. Real estate companies, having witnessed their stock prices plummet, were forced to watch as credit liquidity dried up.
The negative investor sentiment did not spare Singapore real estate investment trusts (S-Reits). The market capitalisation of S-Reits declined by more than 50 per cent in the second half of 2008, and continued their slide into the first quarter of 2009. The impact was widespread, with little distinction being made for the individual qualities of particular Reits.
Credit/refinancing risk (in view of the requirement to distribute in excess of 90 per cent of taxable income in order to enjoy tax transparency) was cited as one of the primary reasons for the unit price declines and S-Reits sought to address this concern. However, this was no easy task for Reit managers, as banks, constrained by their own credit considerations and with no clear idea of the extent and duration of market uncertainties, were less than eager to put their balance sheets in jeopardy.
With the completion of recapitalisation exercises and major refinancing, the S-Reit sector has re-rated and prices have rebounded strongly. By the end of 2009, S-Reit prices were up approximately 60 per cent from the start of the year.
Over the last eight years, S-Reits have grown not only in scale, but also in complexity and depth. S-Reits now own assets in retail, commercial, industrial, healthcare, hospitality and residential sectors, located in numerous jurisdictions around the region.
Structures have changed too, with the constraints posed by the traditional Reit regulatory regime being overcome by the use of alternative structures. For example, selected property trusts have utilised the business trust structure to overcome development constraints, whilst incorporating a majority of traditional Reit structure elements to leverage on the relatively wider Reit investor base. Investors too have matured, with many now largely able to differentiate the quality of individual property trusts.
2010 began on a positive note, with the $182 million placement exercise undertaken by Frasers Centrepoint Trust executed at a tight discount of 3.7 per cent to adjusted volume weighted average price. This was followed by the IPO of Cache Logistics Trust (CLT), the first property trust IPO in almost two years. Cache's IPO attracted a subscription rate of approximately 7.8 times, demonstrating the market's strong appetite for new Reit products.
It would be safe to assume that issuers will aim to repeat the success of CLT's; seeking to raise capital and kick-start growth plans which may have been largely set aside in the preceding years. Listed Reits, free from refinancing concerns (only approximately 17 per cent of S-Reit debt matures in 2010) retain the option to revisit the capital markets this year, and to undertake equity fund raising to fund acquisitive growth.
Reit managers, with the events of 2009 still fresh in their minds, are unlikely to be keen to gear up too excessively to fund acquisitions, despite liquidity having largely returned to the credit markets. In this regard, listed Reits that are trading at premiums to net asset value, are well positioned to deliver accretive acquisitive growth to unitholders.
As the S-Reit market continues to mature, investors should not lose sight of the fundamentals that led to the sector's success in the first place. Investors seeking to invest in a particular Reit should begin by analysing its property portfolio.
Areas for consideration include property type, geographical location, occupancy rates, demographics, lease terms, tenant quality and diversity. These, in turn, would impact the portfolio's aggregate rental income and ultimately, the sustainability and stability of the Reit's distributable income.
Investors should also consider the Reit manager, a critical component of a high quality Reit. The principal responsibilities of the Reit manager include the development and implementation of the Reit's investment strategy as well as the management of its portfolio and capital structure to ensure the long term success of the Reit. A strong Reit manager is made up of a team of experienced individuals, with expertise specific to the asset portfolio and the Reit structure.
Besides the Reit manager, investors should also look to the quality and commitment of the Reit sponsor. A Reit sponsor would typically hold a meaningful stake in the Reit, hold a stake (part or whole) in the Reit manager, provide an acquisition pipeline by means of a right of first refusal and make available a business network to facilitate the Reit's growth plans. On occasion, the sponsor shares its name with the Reit to provide familiarity to investors based on its own track record of performance.
As global equity and credit markets continue to recover, potential Reit sponsors from around the region will continue to look to Singapore as a premier listing destination.
This is given the critical mass of listed Reits trading on the Singapore Exchange, its vibrancy and strong track record of market performance, conducive regulatory and tax framework as well as investor familiarity and confidence in standards of governance. The manner in which regulators and market participants have worked together, to enable the Reit sector to weather and emerge stronger after an unprecedented financial crisis, has not gone unnoticed.
At the end of the day, in a world of increasing complexity, the simplicity of the Reit model, its strong underlying fundamentals, and relatively risk averse nature, make it an attractive option for investors to consider.
The writer is assistant vice president, DBS Capital Markets
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Good start: 2010 began on a positive note, with the $182 million placement exercise undertaken by Frasers Centrepoint Trust executed at a tight discount of 3.7 per cent to adjusted volume weighted average price (above). This was followed by the IPO of Cache Logistics Trust (CLT), the first property trust IPO in almost two years (next)
BT : CalPERS revises policy on real estate investment
Business Times - 21 Apr 2010
CalPERS revises policy on real estate investment
It will not invest in strategies that hit low-income homes
(SACRAMENTO, California) America's largest pension fund has changed its policy on investing in real estate to balance its socially responsible investment philosophy with its quest for profits.
The revised policy, adopted at a CalPERS board meeting on Monday, says the fund will not participate in investment strategies that rely on eliminating rent-regulated housing or raising rents above regulated levels.
CalPERS has had a practice of trying to invest in projects that will help low-income tenants. But critics say the funds cannot make money off such investments unless tenants enjoying regulated rental rates are pushed out of their homes to make room for people who will pay more.
The decision came after the California Public Employees Retirement System, which manages about US$210 billion in assets, saw its real estate portfolio lose nearly half of its value from September 2008 to September 2009.
As of Friday, CalPERS' total real estate portfolio was worth about US$14.8 billion.
Some of the biggest losses came from investments in real estate ventures whose financial success depended on pushing low-income residents out of rent-controlled housing.
CalPERS is known for its influence on socially responsible investing. Earlier this year, it voted to remove the limit on the number of shareholder proposals it can issue to companies in its portfolio, a change that could boost its influence among publicly traded companies.
Monday's action by America's largest pension fund could encourage other large investors to adopt similar policies.
CalPERS wants to balance a socially responsible investment philosophy with the need to ensure adequate long-term returns for its pensioners.
'The intent is to prevent us from investing in those strategies that are not well intended and had tenant impacts that were unacceptable to staff,' Laurie Weir, CalPERS' real estate portfolio manager, told the board.
'We really are trying to prevent those tenant impacts that we have seen over the past year.' A real estate investment that went bust in New York last year prompted CalPERS to re-evaluate its approach to that aspect of its portfolio.
CalPERS lost US$500 million in a failed investment in Stuyvesant Town and Peter Cooper Village in New York that displaced low-income residents. The California State Teachers' Retirement System lost US$100 million in the same deal.
The policy change was prompted by both those real estate losses and the risk to CalPERS' reputation, said spokesman Brad Pacheco.
CalSTRS (The California State Teachers' Retirement System) is also considering a policy that would ban investments in strategies that are intended to capitalise on displacement of low-income households, spokesman Ricardo Duran said in an interview.
'Public pension funds should not be used to evict working people from their housing,' said Dean Preston, an advocate for the group Tenants Together\. \-- AP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CalPERS revises policy on real estate investment
It will not invest in strategies that hit low-income homes
(SACRAMENTO, California) America's largest pension fund has changed its policy on investing in real estate to balance its socially responsible investment philosophy with its quest for profits.
The revised policy, adopted at a CalPERS board meeting on Monday, says the fund will not participate in investment strategies that rely on eliminating rent-regulated housing or raising rents above regulated levels.
CalPERS has had a practice of trying to invest in projects that will help low-income tenants. But critics say the funds cannot make money off such investments unless tenants enjoying regulated rental rates are pushed out of their homes to make room for people who will pay more.
The decision came after the California Public Employees Retirement System, which manages about US$210 billion in assets, saw its real estate portfolio lose nearly half of its value from September 2008 to September 2009.
As of Friday, CalPERS' total real estate portfolio was worth about US$14.8 billion.
Some of the biggest losses came from investments in real estate ventures whose financial success depended on pushing low-income residents out of rent-controlled housing.
CalPERS is known for its influence on socially responsible investing. Earlier this year, it voted to remove the limit on the number of shareholder proposals it can issue to companies in its portfolio, a change that could boost its influence among publicly traded companies.
Monday's action by America's largest pension fund could encourage other large investors to adopt similar policies.
CalPERS wants to balance a socially responsible investment philosophy with the need to ensure adequate long-term returns for its pensioners.
'The intent is to prevent us from investing in those strategies that are not well intended and had tenant impacts that were unacceptable to staff,' Laurie Weir, CalPERS' real estate portfolio manager, told the board.
'We really are trying to prevent those tenant impacts that we have seen over the past year.' A real estate investment that went bust in New York last year prompted CalPERS to re-evaluate its approach to that aspect of its portfolio.
CalPERS lost US$500 million in a failed investment in Stuyvesant Town and Peter Cooper Village in New York that displaced low-income residents. The California State Teachers' Retirement System lost US$100 million in the same deal.
The policy change was prompted by both those real estate losses and the risk to CalPERS' reputation, said spokesman Brad Pacheco.
CalSTRS (The California State Teachers' Retirement System) is also considering a policy that would ban investments in strategies that are intended to capitalise on displacement of low-income households, spokesman Ricardo Duran said in an interview.
'Public pension funds should not be used to evict working people from their housing,' said Dean Preston, an advocate for the group Tenants Together\. \-- AP
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Offices of PetroChina and SPC to be merged soon
Business Times - 21 Apr 2010
Offices of PetroChina and SPC to be merged soon
By RONNIE LIM
(SINGAPORE) Chinese oil giant PetroChina which acquired Singapore Petroleum Company for $3.2 billion last October intends to merge their two Singapore offices, bringing a total of an estimated 300-plus employees 'under one roof'.
Disclosing this in SPC's latest first-quarter newsletter, Xia Hongwei, managing director of PetroChina Singapore, who is now also SPC chairman, said the move will come 'very soon'.
It follows the merger of the two companies' Singapore trading operations over the past few months - which was the first step by PetroChina to integrate their operations, he added.
Currently SPC's office is located at Harbourfront Centre, while PetroChina Singapore's is at Raffles City Tower, where the duo's 20-30 oil traders are all centralised.
BT understands that PetroChina is now looking at various venues in the city area, near Raffles City, for the new office, with the move likely to take place next year - suggesting that present leases need to run out first.
Mr Xia in his message to SPC staffers had indicated that '2010 will be a breakout year for both SPC and PetroChina International Singapore', adding that its new Singapore asset will help PetroChina to broaden its international platform to achieve further growth.
The joint PetroChina/SPC trading team, for starters, is a formidable force.
Latest available figures show that PetroChina Singapore traded over 12 million tons of oil, worth over US$6.9 billion, in 2007. SPC, according to its 2008 annual report, imported 48 million barrels of crude for processing at its Singapore refinery, and traded about 33 million barrels of distillates, including naphtha, gasoline, diesel and jet fuel. This doesn't include its marines business.
SPC has a half share, with Chevron, in the 290,000 barrels per day Singapore Refining Company, 'and going forward, the plans are to increase the depth and complexity of the refinery', sources said, with new projects aimed at meeting environmental and certain other needs.
'At the same time, there could also be some accompanying increase in the refinery's capacity,' they add.
Currently, front-end engineering design is going on for two planned projects - a 'green' or ultra-low sulphur gasoline (ULSG) plant and an in-house cogeneration facility to help provide utilities, like power and steam.
The ULSG plant was earlier estimated to cost US$200-300 million, while the 60-70 megawatt cogen plant costs over US$100 million. A final investment decision on the projects is expected before the year-end.
The sources said that Singapore refiners, including SRC, saw a better-than-expected first quarter, with throughput back up to 90 per cent, recovering from last year's lows. This was partly due to maintenance shutdowns by some regional plants.
'But the industry is still evaluating the strength of the economic recovery and remains cautious about committing to capital expenditure,' one source added.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Big player: SPC imported 48 million barrels of crude and traded 33 million barrels of distillates, including gasoline, diesel and jet fuel, says its 2008 annual report
Offices of PetroChina and SPC to be merged soon
By RONNIE LIM
(SINGAPORE) Chinese oil giant PetroChina which acquired Singapore Petroleum Company for $3.2 billion last October intends to merge their two Singapore offices, bringing a total of an estimated 300-plus employees 'under one roof'.
Disclosing this in SPC's latest first-quarter newsletter, Xia Hongwei, managing director of PetroChina Singapore, who is now also SPC chairman, said the move will come 'very soon'.
It follows the merger of the two companies' Singapore trading operations over the past few months - which was the first step by PetroChina to integrate their operations, he added.
Currently SPC's office is located at Harbourfront Centre, while PetroChina Singapore's is at Raffles City Tower, where the duo's 20-30 oil traders are all centralised.
BT understands that PetroChina is now looking at various venues in the city area, near Raffles City, for the new office, with the move likely to take place next year - suggesting that present leases need to run out first.
Mr Xia in his message to SPC staffers had indicated that '2010 will be a breakout year for both SPC and PetroChina International Singapore', adding that its new Singapore asset will help PetroChina to broaden its international platform to achieve further growth.
The joint PetroChina/SPC trading team, for starters, is a formidable force.
Latest available figures show that PetroChina Singapore traded over 12 million tons of oil, worth over US$6.9 billion, in 2007. SPC, according to its 2008 annual report, imported 48 million barrels of crude for processing at its Singapore refinery, and traded about 33 million barrels of distillates, including naphtha, gasoline, diesel and jet fuel. This doesn't include its marines business.
SPC has a half share, with Chevron, in the 290,000 barrels per day Singapore Refining Company, 'and going forward, the plans are to increase the depth and complexity of the refinery', sources said, with new projects aimed at meeting environmental and certain other needs.
'At the same time, there could also be some accompanying increase in the refinery's capacity,' they add.
Currently, front-end engineering design is going on for two planned projects - a 'green' or ultra-low sulphur gasoline (ULSG) plant and an in-house cogeneration facility to help provide utilities, like power and steam.
The ULSG plant was earlier estimated to cost US$200-300 million, while the 60-70 megawatt cogen plant costs over US$100 million. A final investment decision on the projects is expected before the year-end.
The sources said that Singapore refiners, including SRC, saw a better-than-expected first quarter, with throughput back up to 90 per cent, recovering from last year's lows. This was partly due to maintenance shutdowns by some regional plants.
'But the industry is still evaluating the strength of the economic recovery and remains cautious about committing to capital expenditure,' one source added.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Big player: SPC imported 48 million barrels of crude and traded 33 million barrels of distillates, including gasoline, diesel and jet fuel, says its 2008 annual report
BT : Keppel Land's Q1 net profit jumps 75%
Business Times - 21 Apr 2010
Keppel Land's Q1 net profit jumps 75%
Boost from strong residential sales, property investment and fund mgt units
By UMA SHANKARI
KEPPEL Land yesterday reported a 75 per cent climb in Q1 2010 net profit to $64.7 million - from $36.9 million a year ago - on the back of robust residential sales and better contributions from its property investment and fund management units.
Revenue for the three months ended March 31, 2010, was $158.8 million, up 9 per cent from $145.7 million for Q1 2009, as the developer recognised progressive revenue contributions from its residential projects in Singapore.
Net profit from the property trading division rose 54 per cent year-on-year to $48.7 million. Contributions came mainly from Reflections and Caribbean at Keppel Bay, Marina Bay Suites and Marina Bay Residences in Singapore, as well as The Arcadia and Villa Riviera in China.
The developer plans to launch another 100-200 units at Reflections at Keppel Bay in phases during the year to capitalise on demand for premium residences with close proximity to the Resorts World Sentosa integrated resort, it said. Marina Bay Suites will also be officially launched to capitalise on the opening of Marina Bay Sands.
Other business divisions also reported better year-on-year earnings. Net profit for the property investment segment rose 29 per cent to $12.4 million as the Singapore office market recovered somewhat. Fund management profit also climbed, by 61 per cent to $7.4 million, on higher fee income from office trust K-Reit Asia's manager as well as Alpha Investment Partners.
Earnings per share for the quarter rose 25 per cent to 4.5 cents from a restated 3.6 cents a year ago to take into account a rights issue.
The company's net debt-to-equity ratio climbed slightly to 0.24 at end-March 2010, from 0.22 at end-December 2009, mainly due to the use of its rights proceeds for capital injection into Keppel Tianjin Eco-City and a residential project in Hunnan District in Shenyang, as well as for funding its Marina Bay projects.
Keppel Land shares lost seven cents, or 1.9 per cent, to close at $3.66 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reflections at Keppel Bay: Keppel Land plans to launch another 100-200 units there in phases during the year
Keppel Land's Q1 net profit jumps 75%
Boost from strong residential sales, property investment and fund mgt units
By UMA SHANKARI
KEPPEL Land yesterday reported a 75 per cent climb in Q1 2010 net profit to $64.7 million - from $36.9 million a year ago - on the back of robust residential sales and better contributions from its property investment and fund management units.
Revenue for the three months ended March 31, 2010, was $158.8 million, up 9 per cent from $145.7 million for Q1 2009, as the developer recognised progressive revenue contributions from its residential projects in Singapore.
Net profit from the property trading division rose 54 per cent year-on-year to $48.7 million. Contributions came mainly from Reflections and Caribbean at Keppel Bay, Marina Bay Suites and Marina Bay Residences in Singapore, as well as The Arcadia and Villa Riviera in China.
The developer plans to launch another 100-200 units at Reflections at Keppel Bay in phases during the year to capitalise on demand for premium residences with close proximity to the Resorts World Sentosa integrated resort, it said. Marina Bay Suites will also be officially launched to capitalise on the opening of Marina Bay Sands.
Other business divisions also reported better year-on-year earnings. Net profit for the property investment segment rose 29 per cent to $12.4 million as the Singapore office market recovered somewhat. Fund management profit also climbed, by 61 per cent to $7.4 million, on higher fee income from office trust K-Reit Asia's manager as well as Alpha Investment Partners.
Earnings per share for the quarter rose 25 per cent to 4.5 cents from a restated 3.6 cents a year ago to take into account a rights issue.
The company's net debt-to-equity ratio climbed slightly to 0.24 at end-March 2010, from 0.22 at end-December 2009, mainly due to the use of its rights proceeds for capital injection into Keppel Tianjin Eco-City and a residential project in Hunnan District in Shenyang, as well as for funding its Marina Bay projects.
Keppel Land shares lost seven cents, or 1.9 per cent, to close at $3.66 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reflections at Keppel Bay: Keppel Land plans to launch another 100-200 units there in phases during the year
BT : Developers unfazed by China property curbs
Business Times - 21 Apr 2010
Developers unfazed by China property curbs
Home sales may be hit in the short term, but they are upbeat on the long term
By EMILYN YAP
CHINA'S moves to cool home sales may have spooked some investors into selling property stocks, but developers with projects on the mainland remain unruffled by the changes.
A few property groups acknowledged that the measures might impact residential sales in the short term.
But most remained confident of China's long-term prospects and backed the government for bringing more stability to the market.
'We see the recent measures as timely and positive to calm the surging property market in China,' said Keppel Land International executive director and CEO Ang Wee Gee. The group has a pipeline of over 30,000 homes in 10 Chinese cities.
'In the short term, we can expect home buying volume to taper down. However, as housing aspirations remain strong riding on economic growth, rising affluence and urbanisation, the outlook remains healthy and positive for the longer term.'
The Chinese authorities have introduced a series of anti-speculation measures since last week to curb fast-rising home prices. These include higher mortgage rates and downpayment ratios, a ban on loans for third homes, and greater disclosure from developers on home supply and prices.
Some property companies with mainland exposure have seen their share prices fall in the last few days. Pure China play Yanlord lost 9.9 per cent from last Thursday - when China raised mortgage rates and downpayment ratios - to close at $1.73 yesterday.
Over the same period, Keppel Land dropped 4.4 per cent to $3.66 and CapitaLand slipped 4.8 per cent to $3.96. In a report on Monday, DMG & Partners analyst Brandon Lee downgraded his call on CapitaLand to 'neutral', expecting slower take-up at its residential projects in China.
CapitaLand plans to launch some 2,400 homes in six Chinese cities this year but it is not unduly worried. 'Our portfolio is not only in residential development, but also in office buildings, shopping malls, serviced residences and mixed developments,' said CEO of CapitaLand China Holdings Jason Leow. Because of this, 'we are not overly impacted by any volatility in the residential market in China'. The group welcomed policies aimed at restraining speculative developers and home buyers.
Another developer Yanlord is optimistic that its customers - who tend to have high net worth - will be relatively shielded from the changes. 'With significant disposable incomes, these individuals tend to be less sensitive to credit policy variations and are generally deemed to be of lower credit risk by banks,' it told BT.
The anti-speculation moves may reduce new home sales and create pressure for smaller developers, but established players will benefit from greater clarity and better regulations, Yanlord added. It is confident about the potential of its landbank - which measured 4.23 million sq metres as at end-December - and will keep to its development schedule.
Fellow Chinese developer Pan Hong sees little speculation in its markets to begin with. Its executive chairman Wong Lam Ping said that the group is largely in second and third-tier cities and more than 90 per cent of buyers at its projects have been owner-occupiers. The cooling measures may have an impact on home sales but it will not be significant, he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Calming the market: The China measures are seen as timely by some developers
Developers unfazed by China property curbs
Home sales may be hit in the short term, but they are upbeat on the long term
By EMILYN YAP
CHINA'S moves to cool home sales may have spooked some investors into selling property stocks, but developers with projects on the mainland remain unruffled by the changes.
A few property groups acknowledged that the measures might impact residential sales in the short term.
But most remained confident of China's long-term prospects and backed the government for bringing more stability to the market.
'We see the recent measures as timely and positive to calm the surging property market in China,' said Keppel Land International executive director and CEO Ang Wee Gee. The group has a pipeline of over 30,000 homes in 10 Chinese cities.
'In the short term, we can expect home buying volume to taper down. However, as housing aspirations remain strong riding on economic growth, rising affluence and urbanisation, the outlook remains healthy and positive for the longer term.'
The Chinese authorities have introduced a series of anti-speculation measures since last week to curb fast-rising home prices. These include higher mortgage rates and downpayment ratios, a ban on loans for third homes, and greater disclosure from developers on home supply and prices.
Some property companies with mainland exposure have seen their share prices fall in the last few days. Pure China play Yanlord lost 9.9 per cent from last Thursday - when China raised mortgage rates and downpayment ratios - to close at $1.73 yesterday.
Over the same period, Keppel Land dropped 4.4 per cent to $3.66 and CapitaLand slipped 4.8 per cent to $3.96. In a report on Monday, DMG & Partners analyst Brandon Lee downgraded his call on CapitaLand to 'neutral', expecting slower take-up at its residential projects in China.
CapitaLand plans to launch some 2,400 homes in six Chinese cities this year but it is not unduly worried. 'Our portfolio is not only in residential development, but also in office buildings, shopping malls, serviced residences and mixed developments,' said CEO of CapitaLand China Holdings Jason Leow. Because of this, 'we are not overly impacted by any volatility in the residential market in China'. The group welcomed policies aimed at restraining speculative developers and home buyers.
Another developer Yanlord is optimistic that its customers - who tend to have high net worth - will be relatively shielded from the changes. 'With significant disposable incomes, these individuals tend to be less sensitive to credit policy variations and are generally deemed to be of lower credit risk by banks,' it told BT.
The anti-speculation moves may reduce new home sales and create pressure for smaller developers, but established players will benefit from greater clarity and better regulations, Yanlord added. It is confident about the potential of its landbank - which measured 4.23 million sq metres as at end-December - and will keep to its development schedule.
Fellow Chinese developer Pan Hong sees little speculation in its markets to begin with. Its executive chairman Wong Lam Ping said that the group is largely in second and third-tier cities and more than 90 per cent of buyers at its projects have been owner-occupiers. The cooling measures may have an impact on home sales but it will not be significant, he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Calming the market: The China measures are seen as timely by some developers
BT : HDB launches over 1,400 new BTO flats
Business Times - 21 Apr 2010
HDB launches over 1,400 new BTO flats
By EMILYN YAP
THE Housing and Development Board (HDB) yesterday launched two new build-to-order (BTO) projects in Punggol, offering a total of 1,429 flats.
Both projects will be near the Punggol MRT Station, bus interchange and the future Punggol town centre.
Punggol Emerald, at the junction of Punggol Way and Punggol Central, will have 856 standard flats. These consist of 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
A five-room flat in this estate will sell for $333,000 to $403,000. According to HDB, the price of a comparable five-room resale flat in the vicinity is $412,000 to $471,000.
The other project, Punggol Waves, will be at Punggol Walk. It will offer 573 flats comprising 105 three- roomers, 259 four-roomers and 209 five-roomers.
A five-room flat here will cost $330,000 to $385,000, slightly less than one at Punggol Emerald. HDB notes that a comparable five-room resale flat in the vicinity would go for $415,000 to $471,000.
Both Punggol Emerald and Punggol Waves will have eco-friendly features, allowing them to qualify for Green Mark certification. This is part of HDB's plans to develop Punggol as an eco-town.
These features will boost energy efficiency and indoor environment quality. The estates will also be built using precast construction methods to reduce wastage.
Applications for flats at Punggol Emerald and Punggol Waves will close on May 3.
Including units from the latest two projects in Punggol, HDB would have offered 5,082 new BTO flats in the first four months of this year. Home seekers can look forward to another 1,100 BTO flats in Yishun and Jurong West next month.
From May to September, HDB will launch 7,400 BTO flats, bringing the total number of flats introduced in the first three quarters of the year to about 12,000.
More flats are in the pipeline through the Design, Build and Sell scheme - a site in Yishun which can yield around 700 units is currently up for tender.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Punggol Waves: Part of HDB's plans to develop Punggol as an eco-town, it will have eco-friendly features boosting energy efficiency and indoor environment quality
HDB launches over 1,400 new BTO flats
By EMILYN YAP
THE Housing and Development Board (HDB) yesterday launched two new build-to-order (BTO) projects in Punggol, offering a total of 1,429 flats.
Both projects will be near the Punggol MRT Station, bus interchange and the future Punggol town centre.
Punggol Emerald, at the junction of Punggol Way and Punggol Central, will have 856 standard flats. These consist of 188 studio apartments, 96 three-roomers, 350 four-roomers and 222 five-roomers.
A five-room flat in this estate will sell for $333,000 to $403,000. According to HDB, the price of a comparable five-room resale flat in the vicinity is $412,000 to $471,000.
The other project, Punggol Waves, will be at Punggol Walk. It will offer 573 flats comprising 105 three- roomers, 259 four-roomers and 209 five-roomers.
A five-room flat here will cost $330,000 to $385,000, slightly less than one at Punggol Emerald. HDB notes that a comparable five-room resale flat in the vicinity would go for $415,000 to $471,000.
Both Punggol Emerald and Punggol Waves will have eco-friendly features, allowing them to qualify for Green Mark certification. This is part of HDB's plans to develop Punggol as an eco-town.
These features will boost energy efficiency and indoor environment quality. The estates will also be built using precast construction methods to reduce wastage.
Applications for flats at Punggol Emerald and Punggol Waves will close on May 3.
Including units from the latest two projects in Punggol, HDB would have offered 5,082 new BTO flats in the first four months of this year. Home seekers can look forward to another 1,100 BTO flats in Yishun and Jurong West next month.
From May to September, HDB will launch 7,400 BTO flats, bringing the total number of flats introduced in the first three quarters of the year to about 12,000.
More flats are in the pipeline through the Design, Build and Sell scheme - a site in Yishun which can yield around 700 units is currently up for tender.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Punggol Waves: Part of HDB's plans to develop Punggol as an eco-town, it will have eco-friendly features boosting energy efficiency and indoor environment quality
BT : Upper Serangoon, Hougang sites up for public tender
Business Times - 21 Apr 2010
Upper Serangoon, Hougang sites up for public tender
Bids seen coming in at up to $560 psf ppr and $350 psf ppr respectively
By UMA SHANKARI
TWO more 99-year leasehold residential plots were launched for sale by the government yesterday - one at Upper Serangoon Road from the confirmed list and the other at Hougang Avenue 2 from the reserve list.
The Hougang Avenue 2 site was triggered by a developer who agreed to bid at least $109.9 million for it, which works out to $241 per square foot per plot ratio (psf ppr), the Urban Redevelopment Authority said on April 7.
Analysts said then that the top bid for the site could come in at $310-350 psf ppr once the tender is launched.
The second site, between Upper Serangoon Road and Pheng Geck Avenue, is being launched in line with the schedule announced for the first-half 2010 government land sales (GLS) programme.
The site has a maximum gross floor area of 187,313 sq ft. Analysts say that it could fetch $450-560 psf ppr, which works out to a land cost of $84-105 million.
The site can be developed into a part low-rise (up to five-storeys) and part mid-rise (around 18 storeys) condominium comprising at least 150 units, said Li Hiaw Ho, executive director of CBRE Research.
'It will be popular with home buyers and developers because of its location and proximity to an MRT station,' Mr Li said. 'As developers are still interested in acquiring sites, we expect it to be able to attract about 10 bids.'
Chua Chor Hoon, head of DTZ's South-east Asia research team, said: 'The successful tenderer is likely to build mainly small units on the site to capitalise on its proximity to the MRT. Investors would be attracted to buy them for leasing.'
Recent sub-sales at 28 Woodsville and 8@Woodleigh ranged from $884 psf to $905 psf, she said.
Eight major GLS residential sites, including an executive condominium site, will be sold between now and June 2010. In addition, two tenders set to be launched soon could close by end-June.
Analysts say that this is the highest concentration of GLS development land parcels in different locations offered for sale within a four-month period since the reserve list system was introduced in 2001.
'The jury is still out on whether these 10 land tenders can continue to attract bullish bids or whether developers experience fatigue,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. 'If the highest bids in subsequent tenders display a declining pattern, the government may have achieved the first step towards moderating private home prices by using supply-side measures.'
The tender for the Hougang Avenue 2 site closes on May 20, while that for the Upper Serangoon Road/Pheng Geck Avenue plot closes on June 2.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Upper Serangoon, Hougang sites up for public tender
Bids seen coming in at up to $560 psf ppr and $350 psf ppr respectively
By UMA SHANKARI
TWO more 99-year leasehold residential plots were launched for sale by the government yesterday - one at Upper Serangoon Road from the confirmed list and the other at Hougang Avenue 2 from the reserve list.
The Hougang Avenue 2 site was triggered by a developer who agreed to bid at least $109.9 million for it, which works out to $241 per square foot per plot ratio (psf ppr), the Urban Redevelopment Authority said on April 7.
Analysts said then that the top bid for the site could come in at $310-350 psf ppr once the tender is launched.
The second site, between Upper Serangoon Road and Pheng Geck Avenue, is being launched in line with the schedule announced for the first-half 2010 government land sales (GLS) programme.
The site has a maximum gross floor area of 187,313 sq ft. Analysts say that it could fetch $450-560 psf ppr, which works out to a land cost of $84-105 million.
The site can be developed into a part low-rise (up to five-storeys) and part mid-rise (around 18 storeys) condominium comprising at least 150 units, said Li Hiaw Ho, executive director of CBRE Research.
'It will be popular with home buyers and developers because of its location and proximity to an MRT station,' Mr Li said. 'As developers are still interested in acquiring sites, we expect it to be able to attract about 10 bids.'
Chua Chor Hoon, head of DTZ's South-east Asia research team, said: 'The successful tenderer is likely to build mainly small units on the site to capitalise on its proximity to the MRT. Investors would be attracted to buy them for leasing.'
Recent sub-sales at 28 Woodsville and 8@Woodleigh ranged from $884 psf to $905 psf, she said.
Eight major GLS residential sites, including an executive condominium site, will be sold between now and June 2010. In addition, two tenders set to be launched soon could close by end-June.
Analysts say that this is the highest concentration of GLS development land parcels in different locations offered for sale within a four-month period since the reserve list system was introduced in 2001.
'The jury is still out on whether these 10 land tenders can continue to attract bullish bids or whether developers experience fatigue,' said Ngee Ann Polytechnic real estate lecturer Nicholas Mak. 'If the highest bids in subsequent tenders display a declining pattern, the government may have achieved the first step towards moderating private home prices by using supply-side measures.'
The tender for the Hougang Avenue 2 site closes on May 20, while that for the Upper Serangoon Road/Pheng Geck Avenue plot closes on June 2.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
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