Condo owners want action from developer
Country Grandeur residents want encroachment onto State land fixed
05:55 AM May 12, 2010
by Ansley Ng
SINGAPORE - A tiny piece of a condominium development encroaching onto State land is making some residents see red, and they now want the developer to tear down and rebuild the affected wall, or buy over the 15 sq m plot of land from the Government.
The infringement occurred when the development was being built in the 1990s. Great Victoria Development (GVD), through its interim management council, had negotiated with the authorities for a temporary occupation licence (TOL) for the encroaching portion of land.
But the residents of Country Grandeur in Lorong Puntong allegedly only discovered there was a TOL during the annual general meeting last December, when someone questioned the $120 payment to the authorities for the licence - an entry which cropped up in the accounts of the estate's management corporation.
The plot in question is a strip of land, about the size of a small room, by the wall in the swimming pool area.
Residents said they were unhappy that they were not informed that GVD had negotiated with the authorities for a TOL.
The developer had run the interim management council for two terms until 1999, when it turned the management of the new estate over to residents.
Some in the 66-unit estate, which is located off Sin Ming Avenue, felt that the developer should have solved the problem instead of passing it on to them.
In a letter to GVD this January, the management council, writing on behalf of residents, gave the developer two alternatives.
One, that it tear down the wall and rebuild it and any facilities affected by the demolition work. Or, two, that it buy over the strip of land with all costs to be borne by GVD.
In the letter, a copy of which was obtained by MediaCorp, residents also demand the developer return all the money tapped from the management corporation's funds to pay the TOL fee over the years.
Some residents see it as a matter of principle, while others want the issue settled so that they can have peace of mind.
"The amount ($120) is not important but the ramifications are," said one.
"What would happen if, one day, the Government decides to develop the State land or stop the TOL?"
When contacted, Mr David Hwang, who runs GVD with his father Hwang Sin Jen, declined comment.
GVD owns several units in Country Grandeur and the younger Mr Hwang, who previously served on the management council, is living there with his family.
MediaCorp understands the management council is seeking legal advice.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Wednesday, May 12, 2010
ASIAONE : Beware this fake-landlord scam
Beware this fake-landlord scam
Police say around one person falls victim to such rental scams every day. -myp
Wed, May 12, 2010
my paper
By Joy Fang
BE CAREFUL if you are looking to rent a home here, or you could fall prey to a rental scam.
This is how it works: A conman, using a fake name, poses as a landlord with rooms for rent at low prices.
He gives fake addresses of apartments in areas like Orchard and Chinatown.
He refuses to arrange for a viewing of the apartments, claiming that he is in Britain on internship and will be back here only by the end of next month.
He asks potential tenants to e-mail him a scan of their passport, and sign a contract e-mailed to them.
He asks them to wire a month's rent and a security deposit to a Western Union account, and says he will post the keys to them. To reassure them, he sends images of the apartments and a scan of what he claims to be his passport.
A check with a thread on rental scams in Singapore on online forum scamwarners.com showed that at least 14 people have received such messages.
The scammer uses different pseudonyms, like Richard Willem Tibor, Jane Louise Millar and Tan Nee, and asks for sums of between $1,100 and $2,500.
Figures from the police show that, on average, one person falls victim to such rental scams every day. Last year, police received 324 reports of rental scams, down from 355 reports in 2008.
Mr Manuel Nacionales, 44, a Filipino systems analyst who has been working here for four years, almost became a victim.
He posted a request to rent a room on share-accommodation. sg, a website that links potential house- or flat-mates, in February this year.
Within a day, he got an offer of an apartment at 14 Scotts Road ? the address of shopping mall Far East Plaza.
In an e-mail sent from tantongnee@hotmail.com, the sender said he was a Singaporean named Tan Nee and could be called on +44-701-115-1047.
He asked Mr Nacionales to send a month's rent of $700 and a security deposit of $400 to a Western Union account.
Mr Nacionales did receive a scan of the passport of a man called Tan Tong Nee, but did not wire any money after his colleagues advised him against it.
When my paper called the number posing as a potential tenant, the man identified himself as Tan Nee Long in a pseudo- British accent.
Pressed for the address of the rental apartment, he said that it was 202 Far East Apartment.
But a check with Far East Plaza's residence showed that all its unit numbers are in four digits.
He could not arrange for a viewing of the apartment as he is doing a master's programme in computer programming in London and has no friends in Singapore, he said.
He would send the keys only after the lease contract was signed and payment made.
"You have nothing to worry about, I'll be sending you the contract and scanned passport of myself," he said repeatedly.
When my paper asked him about forum postings about him being a scammer, he said: "No, I don't do such things... People keep saying rubbish on the Internet.
It's because I'm not gonna lease the room to them, that's why they say I'm a scammer."
He said that he was renting out the apartment on behalf of his mother, who owns it.
When told that he was speaking to my paper, he said "no problem", but then hung up.
Scamwarners.com's adviser, Mr David Jenson, 40, said one should never pay or send personal details to a stranger online.
Insist on seeing the title deeds, said Consumers Association of Singapore executive director Seah Seng Choon.
Check out the rightful owners of a property on the Inland Revenue Authority of Singapore's website, and look for properties via reputable websites like www.iproperty.com and www.propertyguru.com, said Mr Nelson Tan, a council member of the Institute of Estate Agents.
A police spokesman said tenants should request all parties to be present when signing tenancy documents, and should not pay large sums in cash.
joyfang@sph.com.sg
Police say around one person falls victim to such rental scams every day. -myp
Wed, May 12, 2010
my paper
By Joy Fang
BE CAREFUL if you are looking to rent a home here, or you could fall prey to a rental scam.
This is how it works: A conman, using a fake name, poses as a landlord with rooms for rent at low prices.
He gives fake addresses of apartments in areas like Orchard and Chinatown.
He refuses to arrange for a viewing of the apartments, claiming that he is in Britain on internship and will be back here only by the end of next month.
He asks potential tenants to e-mail him a scan of their passport, and sign a contract e-mailed to them.
He asks them to wire a month's rent and a security deposit to a Western Union account, and says he will post the keys to them. To reassure them, he sends images of the apartments and a scan of what he claims to be his passport.
A check with a thread on rental scams in Singapore on online forum scamwarners.com showed that at least 14 people have received such messages.
The scammer uses different pseudonyms, like Richard Willem Tibor, Jane Louise Millar and Tan Nee, and asks for sums of between $1,100 and $2,500.
Figures from the police show that, on average, one person falls victim to such rental scams every day. Last year, police received 324 reports of rental scams, down from 355 reports in 2008.
Mr Manuel Nacionales, 44, a Filipino systems analyst who has been working here for four years, almost became a victim.
He posted a request to rent a room on share-accommodation. sg, a website that links potential house- or flat-mates, in February this year.
Within a day, he got an offer of an apartment at 14 Scotts Road ? the address of shopping mall Far East Plaza.
In an e-mail sent from tantongnee@hotmail.com, the sender said he was a Singaporean named Tan Nee and could be called on +44-701-115-1047.
He asked Mr Nacionales to send a month's rent of $700 and a security deposit of $400 to a Western Union account.
Mr Nacionales did receive a scan of the passport of a man called Tan Tong Nee, but did not wire any money after his colleagues advised him against it.
When my paper called the number posing as a potential tenant, the man identified himself as Tan Nee Long in a pseudo- British accent.
Pressed for the address of the rental apartment, he said that it was 202 Far East Apartment.
But a check with Far East Plaza's residence showed that all its unit numbers are in four digits.
He could not arrange for a viewing of the apartment as he is doing a master's programme in computer programming in London and has no friends in Singapore, he said.
He would send the keys only after the lease contract was signed and payment made.
"You have nothing to worry about, I'll be sending you the contract and scanned passport of myself," he said repeatedly.
When my paper asked him about forum postings about him being a scammer, he said: "No, I don't do such things... People keep saying rubbish on the Internet.
It's because I'm not gonna lease the room to them, that's why they say I'm a scammer."
He said that he was renting out the apartment on behalf of his mother, who owns it.
When told that he was speaking to my paper, he said "no problem", but then hung up.
Scamwarners.com's adviser, Mr David Jenson, 40, said one should never pay or send personal details to a stranger online.
Insist on seeing the title deeds, said Consumers Association of Singapore executive director Seah Seng Choon.
Check out the rightful owners of a property on the Inland Revenue Authority of Singapore's website, and look for properties via reputable websites like www.iproperty.com and www.propertyguru.com, said Mr Nelson Tan, a council member of the Institute of Estate Agents.
A police spokesman said tenants should request all parties to be present when signing tenancy documents, and should not pay large sums in cash.
joyfang@sph.com.sg
ST : China's inflation, home prices up
May 12, 2010
China's inflation, home prices up
Official data comes amid warning about rich-poor gap
BEIJING: China's inflation accelerated last month and housing prices rose at a record pace despite recent government measures to prevent a dangerous property bubble, official data shows.
The fresh figures yesterday came as a government-linked research institute warned that the gap between the rich and poor in China is escalating and the Gini index of the country now exceeds the 'red line'.
The data spooked investors and China's main stock index tumbled 1.9 per cent to close at its lowest level in 11 months.
April consumer prices rose 2.8 per cent from a year earlier, below the full-year target of 3 per cent but up 0.4 percentage point from March, the National Bureau of Statistics said.
Food prices jumped 5.9 per cent, up from the 5.2 per cent rate in March.
'Growth in the consumer price index is still mild compared with our economic recovery and inflation in other countries,' said a bureau spokesman, Mr Sheng Laiyun. 'But we are facing big inflation pressures in the short term.'
Foreign companies and investors are watching Chinese inflation because moves to cool prices might slow stimulus-fuelled economic growth that surged to 11.9 per cent in the first quarter. That could hurt the global recovery if it weakens demand for foreign iron ore and other imports.
Economists say inflation is still relatively low and Beijing was unlikely to react with an immediate rate hike at a time when the global outlook still is uncertain amid the European debt crisis.
'Overall, we don't see this as threatening yet for the economy,' said Standard Chartered economist Jinny Yan.
The government worries about a surge in housing and other asset prices and is trying to use lending curbs to discourage speculation.
Despite the controls, property prices in 70 cities rose last month by an average 12.8 per cent from a year earlier, higher than the annual 11.7 per cent increase in March and the fastest pace since the statistics bureau began to put out monthly figures in July 2005.
But analysts said property inflation will likely ease over the summer as steps introduced last month, including raising down payments and mortgage rates for second homes, would have a bigger impact in the coming months.
'From what we've seen, the number of transactions is already plummeting,' said Mr K.K. Lai, southern China chief executive of property services firm Centaline. 'At the rate we're going, we're likely to see the rise in urban property prices easing to the single digits in the next few months on a year-on-year basis.'
Separately, an analyst has warned about the country's growing income gap, China's Global Times reported.
China's Gini Index has reached 0.47, according to World Bank figures, said Mr Chang Xiuze from the Academy of Macroeconomic Research of the National Development and Reform Commission.
'China's Gini index has seen consecutive rises after it exceeded the international warning line of 0.4 10 years ago, and the country's poverty gap has broken the limit line,' he said.
The wealth gap between the top and bottom 10 per cent of the population has risen to 23 times in 2007 from 7.3 times in 1988, said Mr Li Shi, director of the Income Distribution and Poverty Research Centre at Beijing Normal University.
The urban-rural income disparity is also a major concern.
China saw its widest rural-urban income gap last year since its reform and opening-up policy was launched in 1978. The urban-to-rural income ratio was 3.33:1, according to official figures released in March. The urban per capita net income stood at 17,175 yuan (S$3,480) last year, against 5,153 yuan in the countryside.
The ratio is higher than the global average of at most two times, Global Times reported, quoting Mr Su Hainan, director of the Institute for Labour and Wages Studies at the Ministry of Human Resources and Social Security.
ASSOCIATED PRESS, REUTERS
China's inflation, home prices up
Official data comes amid warning about rich-poor gap
BEIJING: China's inflation accelerated last month and housing prices rose at a record pace despite recent government measures to prevent a dangerous property bubble, official data shows.
The fresh figures yesterday came as a government-linked research institute warned that the gap between the rich and poor in China is escalating and the Gini index of the country now exceeds the 'red line'.
The data spooked investors and China's main stock index tumbled 1.9 per cent to close at its lowest level in 11 months.
April consumer prices rose 2.8 per cent from a year earlier, below the full-year target of 3 per cent but up 0.4 percentage point from March, the National Bureau of Statistics said.
Food prices jumped 5.9 per cent, up from the 5.2 per cent rate in March.
'Growth in the consumer price index is still mild compared with our economic recovery and inflation in other countries,' said a bureau spokesman, Mr Sheng Laiyun. 'But we are facing big inflation pressures in the short term.'
Foreign companies and investors are watching Chinese inflation because moves to cool prices might slow stimulus-fuelled economic growth that surged to 11.9 per cent in the first quarter. That could hurt the global recovery if it weakens demand for foreign iron ore and other imports.
Economists say inflation is still relatively low and Beijing was unlikely to react with an immediate rate hike at a time when the global outlook still is uncertain amid the European debt crisis.
'Overall, we don't see this as threatening yet for the economy,' said Standard Chartered economist Jinny Yan.
The government worries about a surge in housing and other asset prices and is trying to use lending curbs to discourage speculation.
Despite the controls, property prices in 70 cities rose last month by an average 12.8 per cent from a year earlier, higher than the annual 11.7 per cent increase in March and the fastest pace since the statistics bureau began to put out monthly figures in July 2005.
But analysts said property inflation will likely ease over the summer as steps introduced last month, including raising down payments and mortgage rates for second homes, would have a bigger impact in the coming months.
'From what we've seen, the number of transactions is already plummeting,' said Mr K.K. Lai, southern China chief executive of property services firm Centaline. 'At the rate we're going, we're likely to see the rise in urban property prices easing to the single digits in the next few months on a year-on-year basis.'
Separately, an analyst has warned about the country's growing income gap, China's Global Times reported.
China's Gini Index has reached 0.47, according to World Bank figures, said Mr Chang Xiuze from the Academy of Macroeconomic Research of the National Development and Reform Commission.
'China's Gini index has seen consecutive rises after it exceeded the international warning line of 0.4 10 years ago, and the country's poverty gap has broken the limit line,' he said.
The wealth gap between the top and bottom 10 per cent of the population has risen to 23 times in 2007 from 7.3 times in 1988, said Mr Li Shi, director of the Income Distribution and Poverty Research Centre at Beijing Normal University.
The urban-rural income disparity is also a major concern.
China saw its widest rural-urban income gap last year since its reform and opening-up policy was launched in 1978. The urban-to-rural income ratio was 3.33:1, according to official figures released in March. The urban per capita net income stood at 17,175 yuan (S$3,480) last year, against 5,153 yuan in the countryside.
The ratio is higher than the global average of at most two times, Global Times reported, quoting Mr Su Hainan, director of the Institute for Labour and Wages Studies at the Ministry of Human Resources and Social Security.
ASSOCIATED PRESS, REUTERS
ST : 99-yr Simei plot draws 18 bids
May 12, 2010
99-yr Simei plot draws 18 bids
Analysts expect average selling price of $1,000 psf
By Joyce Teo
ANOTHER suburban land tender has generated massive interest, with a staggering 18 developers plunging in and offering top dollar for the site.
The 99-year leasehold 1.18ha site, which can accommodate an estimated 250 flats, is in Simei St 3, right across the road from Eastpoint Mall and Simei MRT station.
Chip Eng Seng's CEL Development has emerged the top bidder with a much higher-than-expected bid of $152.69 million or $523 per sq ft per plot ratio (psf ppr).
This price will translate to a break-even level of $860 to $900 psf, and an average selling price of around $1,000 psf if the project is launched in the first half of next year, said CBRE Research.
Mr Steven Tan, executive director, residential, at OrangeTee.com, expects a slightly higher break-even and a possible final selling price of $1,100 to $1,150 psf.
CBRE Research's executive director, Mr Li Hiaw Ho, said the 18 bids garnered represent 'an all- time high level of interest' not seen in government land sales tenders in the last five years for a site of this size and with a value of more than $100 million.
'This demonstrates the strength of a location that is close to an MRT station as well as developers' confidence in the residential market going forward,' he said.
Other bidders included Far East Organization, MCL Land, Keppel Land, Hoi Hup Realty, UOL and Ho Bee Investment. Their bids were also impressive.
CEL's bid was just 3 per cent above Frasers Centrepoint's bid of $148 million or $507 psf ppr. Sim Lian Land put in the third highest bid of $142.5 million or $488 psf ppr.
In fact, apart from the bottom three, all other bids came in above expectations.
Allgreen Properties came in last, with a bid of $113.8 million or $389.78 psf ppr.
Property experts had earlier tipped bids of just $320 to $410 psf ppr, which would translate to likely selling prices for flats of $750 to $850 psf.
According to CBRE Research, between January and April this year, typical new units - the three- to four-bedroom units - in Double Bay Residences in Simei St 4 were sold for between $660 psf and $750 psf.
In the resale market, units of such sizes in Modena and Tropical Spring in the vicinity were sold for $615 psf to $780 psf over the same period, it noted.
'The tender results show that developers are still very hungry for land. Those who have not bought any recently will have to be very aggressive,' said Mr Tan.
A recent tender for a land parcel in Tampines drew 16 bids while another tender for a plot next to Lakeside MRT station drew 14 bids and a top bid of $499 psf ppr.
At that price, the Lakeside plot may sell for close to or above $1,000 psf, industry sources had said.
Mr Tan said such prices for suburban projects are no longer very surprising, after The Vision in the West Coast set a new benchmark.
The Vision had sold well, despite it being priced at above $1,000 psf.
The winning tender for the Simei site will be announced later by the Urban Redevelopment Authority.
joyceteo@sph.com.sg
99-yr Simei plot draws 18 bids
Analysts expect average selling price of $1,000 psf
By Joyce Teo
ANOTHER suburban land tender has generated massive interest, with a staggering 18 developers plunging in and offering top dollar for the site.
The 99-year leasehold 1.18ha site, which can accommodate an estimated 250 flats, is in Simei St 3, right across the road from Eastpoint Mall and Simei MRT station.
Chip Eng Seng's CEL Development has emerged the top bidder with a much higher-than-expected bid of $152.69 million or $523 per sq ft per plot ratio (psf ppr).
This price will translate to a break-even level of $860 to $900 psf, and an average selling price of around $1,000 psf if the project is launched in the first half of next year, said CBRE Research.
Mr Steven Tan, executive director, residential, at OrangeTee.com, expects a slightly higher break-even and a possible final selling price of $1,100 to $1,150 psf.
CBRE Research's executive director, Mr Li Hiaw Ho, said the 18 bids garnered represent 'an all- time high level of interest' not seen in government land sales tenders in the last five years for a site of this size and with a value of more than $100 million.
'This demonstrates the strength of a location that is close to an MRT station as well as developers' confidence in the residential market going forward,' he said.
Other bidders included Far East Organization, MCL Land, Keppel Land, Hoi Hup Realty, UOL and Ho Bee Investment. Their bids were also impressive.
CEL's bid was just 3 per cent above Frasers Centrepoint's bid of $148 million or $507 psf ppr. Sim Lian Land put in the third highest bid of $142.5 million or $488 psf ppr.
In fact, apart from the bottom three, all other bids came in above expectations.
Allgreen Properties came in last, with a bid of $113.8 million or $389.78 psf ppr.
Property experts had earlier tipped bids of just $320 to $410 psf ppr, which would translate to likely selling prices for flats of $750 to $850 psf.
According to CBRE Research, between January and April this year, typical new units - the three- to four-bedroom units - in Double Bay Residences in Simei St 4 were sold for between $660 psf and $750 psf.
In the resale market, units of such sizes in Modena and Tropical Spring in the vicinity were sold for $615 psf to $780 psf over the same period, it noted.
'The tender results show that developers are still very hungry for land. Those who have not bought any recently will have to be very aggressive,' said Mr Tan.
A recent tender for a land parcel in Tampines drew 16 bids while another tender for a plot next to Lakeside MRT station drew 14 bids and a top bid of $499 psf ppr.
At that price, the Lakeside plot may sell for close to or above $1,000 psf, industry sources had said.
Mr Tan said such prices for suburban projects are no longer very surprising, after The Vision in the West Coast set a new benchmark.
The Vision had sold well, despite it being priced at above $1,000 psf.
The winning tender for the Simei site will be announced later by the Urban Redevelopment Authority.
joyceteo@sph.com.sg
ST : Biopolis to be further expanded
May 12, 2010
Biopolis to be further expanded
SPACE for more scientists, researchers and engineers will be created in yet another expansion of the Biopolis.
The latest expansion of the $700 million, 200ha biomedical research hub near Buona Vista will add a further 46,000 sq m, bringing the total area to more than 300,000 sq m, the equivalent of about 40 football pitches.
In January, it was announced that about 40,000 sq m of space would be added, but an increase in demand has been met by this further expansion.
Currently, phases one and two of the Biopolis are fully occupied, providing space for more than 2,000 people, with the Agency for Science, Technology and Research (A*Star) being the anchor tenant. Other tenants include the GlaxoSmithKline Centre for Cognitive and Neurodegenerative Disorders, Novartis Institute for Tropical Diseases, Lilly Singapore Centre for Drug Discovery, Takeda Singapore and the British High Commission's science and technology office.
A spokesman for industrial developer and landlord JTC Corporation said it cannot speculate on the number of people who could be drawn to work at the new expansion until it is completed in 2013.
The Biopolis was conceived in 2001 as a focal point for scientific talent and biomedical research. It aims to attract local and foreign talent and both private and public companies. It also works in laboratory research, manufacturing and health care.
Professor Lee Eng Hin, executive director of A*Star's Biomedical Research Council, said: 'The Biopolis is a melting pot of science and talent from both the public and private sectors. This co-location, together with excellent infrastructural support in the form of shared facilities, puts us in a good position to accelerate discoveries from the lab to the clinic and industry.'
The biomedical sector is expected to grow between 5 per cent and 10 per cent this year. The industry had an output of $20.7 billion last year and the Economic Development Board is confident it will hit its target of $25 billion by 2015.
The latest expansion of the Biopolis will add a further 46,000 sq m, bringing the total area to more than 300,000 sq m, the equivalent of about 40 football pitches. -- PHOTO: JTC
Biopolis to be further expanded
SPACE for more scientists, researchers and engineers will be created in yet another expansion of the Biopolis.
The latest expansion of the $700 million, 200ha biomedical research hub near Buona Vista will add a further 46,000 sq m, bringing the total area to more than 300,000 sq m, the equivalent of about 40 football pitches.
In January, it was announced that about 40,000 sq m of space would be added, but an increase in demand has been met by this further expansion.
Currently, phases one and two of the Biopolis are fully occupied, providing space for more than 2,000 people, with the Agency for Science, Technology and Research (A*Star) being the anchor tenant. Other tenants include the GlaxoSmithKline Centre for Cognitive and Neurodegenerative Disorders, Novartis Institute for Tropical Diseases, Lilly Singapore Centre for Drug Discovery, Takeda Singapore and the British High Commission's science and technology office.
A spokesman for industrial developer and landlord JTC Corporation said it cannot speculate on the number of people who could be drawn to work at the new expansion until it is completed in 2013.
The Biopolis was conceived in 2001 as a focal point for scientific talent and biomedical research. It aims to attract local and foreign talent and both private and public companies. It also works in laboratory research, manufacturing and health care.
Professor Lee Eng Hin, executive director of A*Star's Biomedical Research Council, said: 'The Biopolis is a melting pot of science and talent from both the public and private sectors. This co-location, together with excellent infrastructural support in the form of shared facilities, puts us in a good position to accelerate discoveries from the lab to the clinic and industry.'
The biomedical sector is expected to grow between 5 per cent and 10 per cent this year. The industry had an output of $20.7 billion last year and the Economic Development Board is confident it will hit its target of $25 billion by 2015.
The latest expansion of the Biopolis will add a further 46,000 sq m, bringing the total area to more than 300,000 sq m, the equivalent of about 40 football pitches. -- PHOTO: JTC
BT : Chip Eng Seng makes top bid for residential site in Simei
Business Times - 12 May 2010
Chip Eng Seng makes top bid for residential site in Simei
$152.7m offer works out to $523 psf ppr; CEL plans project with about 280 units
By UMA SHANKARI
CHIP Eng Seng's property arm CEL Development trumped 17 other bidders to put in the top offer of $152.7 million for a residential site on Simei Street 3.
The offer, which works out to $523 per square foot per plot ratio (psf ppr), was much higher than analysts' estimates of $295-$410 when the site was released on March 23. The tender closed yesterday.
CEL's bid was just 3 per cent above the second-highest bid of $148 million - or $507 psf ppr - put in by Frasers Centrepoint.
The top bid was also 34 per cent higher than the lowest bid of $113.8 million ($390 psf ppr) from Allgreen Properties. Other bidders included Far East Organization, MCL Land, Keppel Land, Hong Leong Group and UOL Group. The site has a maximum gross floor area of about 292,000 sq ft.
Analysts said the tender aroused strong interest because the site is in the established Simei HDB estate and across the road from Simei MRT Station and Eastpoint shopping mall.
The new project is expected to be popular with HDB upgraders and private home owners because of its accessibility and amenities.
CBRE research director Li Hiaw Ho said the 18 bids represent a level of interest not seen in a government land tender in the past five years for a site of this size and quantum - above $100 million. 'This demonstrates the strength of a location that is close to an MRT station, as well as developers' confidence in the residential market going forward,' he said.
CEL said that if it is awarded the site, it plans to build a project with about 280 units ranging from studio apartments to four-bedroom units. The development is likely to be launched in early 2011, it said.
CBRE's Mr Li said the top bid of $523 psf ppr will translate to a breakeven cost of $860-$900 psf. The new project could sell for around $1,000 psf if it is launched in the first half of 2011, he said.
This is higher than what nearby projects are fetching. CBRE's data shows that between January and April, typical new units in nearby Double Bay Residences sold for $660-$750 psf. And in the resale market, units in Modena and Tropical Spring were sold for $615-$780 psf over the same period.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said Chip Eng Seng could have bid aggressively because it has development and construction arms, which means it can better manage construction cost.
Mr Mak pointed out that several other groups with construction and development arms also made aggressive bids for the site. 'If they buy the site, their construction division will also have another job,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chip Eng Seng makes top bid for residential site in Simei
$152.7m offer works out to $523 psf ppr; CEL plans project with about 280 units
By UMA SHANKARI
CHIP Eng Seng's property arm CEL Development trumped 17 other bidders to put in the top offer of $152.7 million for a residential site on Simei Street 3.
The offer, which works out to $523 per square foot per plot ratio (psf ppr), was much higher than analysts' estimates of $295-$410 when the site was released on March 23. The tender closed yesterday.
CEL's bid was just 3 per cent above the second-highest bid of $148 million - or $507 psf ppr - put in by Frasers Centrepoint.
The top bid was also 34 per cent higher than the lowest bid of $113.8 million ($390 psf ppr) from Allgreen Properties. Other bidders included Far East Organization, MCL Land, Keppel Land, Hong Leong Group and UOL Group. The site has a maximum gross floor area of about 292,000 sq ft.
Analysts said the tender aroused strong interest because the site is in the established Simei HDB estate and across the road from Simei MRT Station and Eastpoint shopping mall.
The new project is expected to be popular with HDB upgraders and private home owners because of its accessibility and amenities.
CBRE research director Li Hiaw Ho said the 18 bids represent a level of interest not seen in a government land tender in the past five years for a site of this size and quantum - above $100 million. 'This demonstrates the strength of a location that is close to an MRT station, as well as developers' confidence in the residential market going forward,' he said.
CEL said that if it is awarded the site, it plans to build a project with about 280 units ranging from studio apartments to four-bedroom units. The development is likely to be launched in early 2011, it said.
CBRE's Mr Li said the top bid of $523 psf ppr will translate to a breakeven cost of $860-$900 psf. The new project could sell for around $1,000 psf if it is launched in the first half of 2011, he said.
This is higher than what nearby projects are fetching. CBRE's data shows that between January and April, typical new units in nearby Double Bay Residences sold for $660-$750 psf. And in the resale market, units in Modena and Tropical Spring were sold for $615-$780 psf over the same period.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said Chip Eng Seng could have bid aggressively because it has development and construction arms, which means it can better manage construction cost.
Mr Mak pointed out that several other groups with construction and development arms also made aggressive bids for the site. 'If they buy the site, their construction division will also have another job,' he said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Fannie Mae bleeds, seeks US$8.4b aid
Business Times - 12 May 2010
Fannie Mae bleeds, seeks US$8.4b aid
Foreclosures in Q1 rise to 62,000 homes from 47,000 in the prior quarter
(WASHINGTON) Fannie Mae, the mortgage-finance company operating under federal conservatorship, said it will seek US$8.4 billion in aid from the US Treasury Department after reporting an 11th-straight quarterly loss.
The company lost US$11.5 billion in the first three months of this year, it said on Monday in a Securities and Exchange Commission filing.
Fannie Mae had posted US$136.8 billion in losses in the preceding 10 quarters, and the new aid request would bring its total draw from the Treasury to US$84.6 billion since April 2009.
Fannie Mae said the quarterly loss was largely attributable to new accounting rules that required the company to move US$1.5 trillion in mortgage guarantees to its balance sheet.
The company and Freddie Mac, its McLean, Virginia-based rival, have been under US conservatorship since September 2008, when they were seized after losses on sub-prime mortgages pushed them to the brink of collapse. The so-called government-sponsored enterprises, which own or guarantee more than US$5 trillion in US residential debt, financed or backed more than 70 per cent of single-family mortgage loans in 2009.
Fannie Mae continues to inject liquidity into the home-loan market and helped modify nearly 94,000 mortgages in the first quarter to prevent foreclosures, doubling the number completed in the fourth quarter of 2009, chief executive officer Mike Williams said in a statement.
Even with the assistance, Fannie Mae increased foreclosures to almost 62,000 homes from about 47,000 in the prior quarter, according to the filing. The company's foreclosure rate increased and its inventory of homes grew from US$8.5 billion to US$11.4 billion during the first quarter.
'We expect our foreclosures to increase in 2010 as a result of the adverse impact that the weak economy and high unemployment have had and are expected to have on the financial condition of borrowers,' the company said in a press release.
Credit-related expenses, including home-loan delinquencies and defaults, increased to US$5.1 billion in the first quarter from US$4.1 billion three months earlier, the company said. Non-performing loans were US$223.9 billion as of March 31, up from US$216.5 billion at the end of December.
The company said it forced lenders to buy back US$1.8 billion in defective loans, compared with US$1.1 billion from a year ago. Freddie Mac said last week it required lenders to buy back US$1.3 billion in loans in the first quarter.
In Monday's filing, Fannie Mae said it continues to face risk and 'may experience significant financial losses and reputational damage in the future as a result of mortgage fraud.'
Bank of America Corp serviced 27 per cent of Fannie's single-family loans as of March 31. Wells Fargo & Co and JPMorgan Chase & Co each serviced more than 10 per cent of the company's portfolio.
Freddie Mac reported a US$6.7 billion first-quarter loss on May 5 and said it would seek US$10.6 billion more in Treasury aid, prompting Republicans to renew criticism of Democrats for omitting the mortgage-finance giants from financial-rules legislation being debated in Congress.
'We haven't had any substantive discussion as to what the future picture of Fannie and Freddie should be,' Representative Scott Garrett of New Jersey, a Republican, said in an interview. 'I see absolutely nothing happening in the area of GSEs of any substance between now and the end of the year.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
In the red: The US$11.5b Q1 loss was largely due to new accounting rules that required Fannie to move US$1.5 trillion in mortgage guarantees to its balance sheet
Fannie Mae bleeds, seeks US$8.4b aid
Foreclosures in Q1 rise to 62,000 homes from 47,000 in the prior quarter
(WASHINGTON) Fannie Mae, the mortgage-finance company operating under federal conservatorship, said it will seek US$8.4 billion in aid from the US Treasury Department after reporting an 11th-straight quarterly loss.
The company lost US$11.5 billion in the first three months of this year, it said on Monday in a Securities and Exchange Commission filing.
Fannie Mae had posted US$136.8 billion in losses in the preceding 10 quarters, and the new aid request would bring its total draw from the Treasury to US$84.6 billion since April 2009.
Fannie Mae said the quarterly loss was largely attributable to new accounting rules that required the company to move US$1.5 trillion in mortgage guarantees to its balance sheet.
The company and Freddie Mac, its McLean, Virginia-based rival, have been under US conservatorship since September 2008, when they were seized after losses on sub-prime mortgages pushed them to the brink of collapse. The so-called government-sponsored enterprises, which own or guarantee more than US$5 trillion in US residential debt, financed or backed more than 70 per cent of single-family mortgage loans in 2009.
Fannie Mae continues to inject liquidity into the home-loan market and helped modify nearly 94,000 mortgages in the first quarter to prevent foreclosures, doubling the number completed in the fourth quarter of 2009, chief executive officer Mike Williams said in a statement.
Even with the assistance, Fannie Mae increased foreclosures to almost 62,000 homes from about 47,000 in the prior quarter, according to the filing. The company's foreclosure rate increased and its inventory of homes grew from US$8.5 billion to US$11.4 billion during the first quarter.
'We expect our foreclosures to increase in 2010 as a result of the adverse impact that the weak economy and high unemployment have had and are expected to have on the financial condition of borrowers,' the company said in a press release.
Credit-related expenses, including home-loan delinquencies and defaults, increased to US$5.1 billion in the first quarter from US$4.1 billion three months earlier, the company said. Non-performing loans were US$223.9 billion as of March 31, up from US$216.5 billion at the end of December.
The company said it forced lenders to buy back US$1.8 billion in defective loans, compared with US$1.1 billion from a year ago. Freddie Mac said last week it required lenders to buy back US$1.3 billion in loans in the first quarter.
In Monday's filing, Fannie Mae said it continues to face risk and 'may experience significant financial losses and reputational damage in the future as a result of mortgage fraud.'
Bank of America Corp serviced 27 per cent of Fannie's single-family loans as of March 31. Wells Fargo & Co and JPMorgan Chase & Co each serviced more than 10 per cent of the company's portfolio.
Freddie Mac reported a US$6.7 billion first-quarter loss on May 5 and said it would seek US$10.6 billion more in Treasury aid, prompting Republicans to renew criticism of Democrats for omitting the mortgage-finance giants from financial-rules legislation being debated in Congress.
'We haven't had any substantive discussion as to what the future picture of Fannie and Freddie should be,' Representative Scott Garrett of New Jersey, a Republican, said in an interview. 'I see absolutely nothing happening in the area of GSEs of any substance between now and the end of the year.' - Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
In the red: The US$11.5b Q1 loss was largely due to new accounting rules that required Fannie to move US$1.5 trillion in mortgage guarantees to its balance sheet
BT : Sim Lian posts 38% jump in Q3 earnings
Business Times - 12 May 2010
Sim Lian posts 38% jump in Q3 earnings
Revenue from external projects of group's construction division up 83%
By KALPANA RASHIWALA
SIM Lian Group says it expects to achieve a set of profitable operating results for FY 2010 after posting a 38 per cent year-on-year rise in group net profit to $18.4 million for the third quarter ended March 31.
The improved Q3 bottom line was on the back of a 132 per cent year-on-year surge in revenue to $203.2 million. The construction and property group said the topline was boosted by a 164 per cent jump in revenue from property development division, from $57.1 million in Q3 FY 2009 to $151 million in Q3 FY 2010.
This was due largely to higher percentage recognition of revenue from Clover By The Park, Parc Lumiere, The Lincoln Residences and Rochelle at Newton residential projects.
Sim Lian said revenue from external projects of its construction division rose 83 per cent from $25.5 million in Q3 FY 2009 to $46.6 million in Q3 FY 2010 mainly due to higher percentage of completion recorded. 'The construction division remains selective in all tenders to ensure jobs are secured with reasonable prices and margins,' Sim Lian said in its results statement.
'As a whole, the development projects of the group are expected to contribute positively to the group's performance in FY 2010,' the company said.
For the nine months ended March 31, Sim Lian's group net profit jumped 69 per cent year on year to $76.6 million. Over the same period, revenue rose 28 per cent to $564.1 million.
In March, the group was awarded a 99-year-leasehold residential land parcel at Tampines Ave 1/10 facing Bedok Reservoir. Sim Lian plans to develop a condo with nearly 700 units on this plot ranging from two-bedroom apartments to penthouses with five bedrooms and launch the project sometime in October-December this year.
The group also plans to release this calendar year a landed housing project in Senai, Johor, comprising 120 terrace houses.
Sim Lian's earnings per share (EPS) rose to 3.24 cents for the quarter just ended, from 2.34 cents in the same quarter last year. Nine-month EPS rose from 7.98 cents to 13.49 cents.
Net asset value per share stood at 50.15 cents at end-March 2010, up from 38.07 cents as at end-June 2009.
The counter was last traded at 52 cents.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Sim Lian posts 38% jump in Q3 earnings
Revenue from external projects of group's construction division up 83%
By KALPANA RASHIWALA
SIM Lian Group says it expects to achieve a set of profitable operating results for FY 2010 after posting a 38 per cent year-on-year rise in group net profit to $18.4 million for the third quarter ended March 31.
The improved Q3 bottom line was on the back of a 132 per cent year-on-year surge in revenue to $203.2 million. The construction and property group said the topline was boosted by a 164 per cent jump in revenue from property development division, from $57.1 million in Q3 FY 2009 to $151 million in Q3 FY 2010.
This was due largely to higher percentage recognition of revenue from Clover By The Park, Parc Lumiere, The Lincoln Residences and Rochelle at Newton residential projects.
Sim Lian said revenue from external projects of its construction division rose 83 per cent from $25.5 million in Q3 FY 2009 to $46.6 million in Q3 FY 2010 mainly due to higher percentage of completion recorded. 'The construction division remains selective in all tenders to ensure jobs are secured with reasonable prices and margins,' Sim Lian said in its results statement.
'As a whole, the development projects of the group are expected to contribute positively to the group's performance in FY 2010,' the company said.
For the nine months ended March 31, Sim Lian's group net profit jumped 69 per cent year on year to $76.6 million. Over the same period, revenue rose 28 per cent to $564.1 million.
In March, the group was awarded a 99-year-leasehold residential land parcel at Tampines Ave 1/10 facing Bedok Reservoir. Sim Lian plans to develop a condo with nearly 700 units on this plot ranging from two-bedroom apartments to penthouses with five bedrooms and launch the project sometime in October-December this year.
The group also plans to release this calendar year a landed housing project in Senai, Johor, comprising 120 terrace houses.
Sim Lian's earnings per share (EPS) rose to 3.24 cents for the quarter just ended, from 2.34 cents in the same quarter last year. Nine-month EPS rose from 7.98 cents to 13.49 cents.
Net asset value per share stood at 50.15 cents at end-March 2010, up from 38.07 cents as at end-June 2009.
The counter was last traded at 52 cents.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : OUE to be Lippo's S'pore flagship
Business Times - 11 May 2010
OUE to be Lippo's S'pore flagship
By EMILYN YAP
(SINGAPORE) Indonesia's Lippo Group has laid out growth plans for Overseas Union Enterprise (OUE) now that it is in sole control of the property group.
Lippo president Stephen Riady, who also became OUE's executive chairman recently, said OUE will be Lippo's Singapore flagship.
Mr Riady's interview with The Business Times is his first with the press since Lippo paid some $957 million to buy Malaysian tycoon Ananda Krishnan's stake in the Singapore-listed property group in March.
Ties between the Riadys and Mr Krishnan were said to be strained, and there were reportedly disagreements over the management of OUE.
Mr Riady shed some light on the situation then. 'People have different visions. It's hard to say who's right or who's wrong,' he said. But, 'when you have two captains and two captains have different views and different visions, I think it's bad for the company.'
He is keen to leave past 'distractions' behind and help OUE move on. 'Without all these, you'll get (to the goal) smoothly and more easily.'
OUE's focus in the last few years was to build a strong recurrent income base, and it has achieved this through asset enhancements, Mr Riady said.
For instance, it created Mandarin Gallery out of idle lobby space at the former Meritus Mandarin - now refurbished and renamed Mandarin Orchard. The mall now generates rental income.
OUE is also developing 50 Collyer Quay and One Raffles Place, and the offices will bring in rents when they are ready and leased.
Separately, the property group started cutting costs and raising operational efficiency early this year. Efforts ranged from reducing food wastage at buffets in its hotels to saving energy, and results are showing, Mr Riady said.
Once a steady recurrent income stream has been built, OUE will focus more on the residential development business - which tends to be more cyclical in nature.
The aim is to have recurrent income make up 50 per cent of the bottom line, and development profit making up the remaining half, Mr Riady said.
OUE has almost no development profit now, he added. It owns a residential site - the former Grangeford Apartments - but has yet to roll it out for sale. A showflat is in the works and the launch should happen in the 'very near future'.
The group will look to grow in the high-end residential sector, Mr Riady said, believing that it is just 'a matter of time' before prices in the sector hit the peak last set in 2007.
Developers also have more choice when it comes to prime property development, he said. They can buy land not just in the traditional districts of 9, 10 and 11, but also in Sentosa and the Keppel Bay area. OUE is also open to the idea of redeveloping offices downtown into high-end homes.
According to Mr Riady, Lippo plans to keep OUE listed to facilitate growth.
Yesterday, OUE announced a strong set of earnings and proposed a one-into-five stock split to boost trading liquidity and affordability for investors.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mr Riady: The group will look to grow in the high-end residential sector, as it's just a matter of time before prices hit the peak last set in 2007
OUE to be Lippo's S'pore flagship
By EMILYN YAP
(SINGAPORE) Indonesia's Lippo Group has laid out growth plans for Overseas Union Enterprise (OUE) now that it is in sole control of the property group.
Lippo president Stephen Riady, who also became OUE's executive chairman recently, said OUE will be Lippo's Singapore flagship.
Mr Riady's interview with The Business Times is his first with the press since Lippo paid some $957 million to buy Malaysian tycoon Ananda Krishnan's stake in the Singapore-listed property group in March.
Ties between the Riadys and Mr Krishnan were said to be strained, and there were reportedly disagreements over the management of OUE.
Mr Riady shed some light on the situation then. 'People have different visions. It's hard to say who's right or who's wrong,' he said. But, 'when you have two captains and two captains have different views and different visions, I think it's bad for the company.'
He is keen to leave past 'distractions' behind and help OUE move on. 'Without all these, you'll get (to the goal) smoothly and more easily.'
OUE's focus in the last few years was to build a strong recurrent income base, and it has achieved this through asset enhancements, Mr Riady said.
For instance, it created Mandarin Gallery out of idle lobby space at the former Meritus Mandarin - now refurbished and renamed Mandarin Orchard. The mall now generates rental income.
OUE is also developing 50 Collyer Quay and One Raffles Place, and the offices will bring in rents when they are ready and leased.
Separately, the property group started cutting costs and raising operational efficiency early this year. Efforts ranged from reducing food wastage at buffets in its hotels to saving energy, and results are showing, Mr Riady said.
Once a steady recurrent income stream has been built, OUE will focus more on the residential development business - which tends to be more cyclical in nature.
The aim is to have recurrent income make up 50 per cent of the bottom line, and development profit making up the remaining half, Mr Riady said.
OUE has almost no development profit now, he added. It owns a residential site - the former Grangeford Apartments - but has yet to roll it out for sale. A showflat is in the works and the launch should happen in the 'very near future'.
The group will look to grow in the high-end residential sector, Mr Riady said, believing that it is just 'a matter of time' before prices in the sector hit the peak last set in 2007.
Developers also have more choice when it comes to prime property development, he said. They can buy land not just in the traditional districts of 9, 10 and 11, but also in Sentosa and the Keppel Bay area. OUE is also open to the idea of redeveloping offices downtown into high-end homes.
According to Mr Riady, Lippo plans to keep OUE listed to facilitate growth.
Yesterday, OUE announced a strong set of earnings and proposed a one-into-five stock split to boost trading liquidity and affordability for investors.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mr Riady: The group will look to grow in the high-end residential sector, as it's just a matter of time before prices hit the peak last set in 2007
ST : S'pore rejects claim of illegal sand imports
May 11, 2010
S'pore rejects claim of illegal sand imports
It does not condone the illegal export or smuggling of sand: MND
By Jessica Cheam
THE Government has rejected a new report that suggests Singapore is importing Cambodian sand illegally and without regard for the environment.
The new report, released today by environmental group, Global Witness, claims that Cambodia's sand trade is thriving despite a recent sand export ban, and that Singapore is the primary consumer of sand exported from Cambodia.
But in a statement yesterday, the Ministry of National Development said the report 'suggests that the Singapore Government seeks to import sand without due regard to the laws or environmental impact of the source country, in this case, Cambodia'.
'This is not true. We are committed to the protection of the global environment, and we do not condone the illegal export or smuggling of sand, or any extraction of sand that is in breach of the source countries' laws and rules on environmental protection. We have not received any official notice on the ban of sand exports from Cambodia,' it added.
It said sand suppliers are private firms which buy sand from concession holders in various countries. They extract the sand after identifying locations.
The report said that despite imposing a ban on the export of sea sand, the Cambodian government's actions 'appear to have facilitated, rather than limited, dredging operations'. These activities have led to the degradation of ecosystems. Fish and crab harvests have also fallen, threatening the livelihood of local communities, it said.
It estimates the annual value of the sand trade at US$28.7 million (S$40 million) in Cambodia and US$248 million in retail value in Singapore.
In 2008, the Republic was the largest global importer of sand at 14.2 million tonnes valued at US$273 million.
Of this total, Cambodia was Singapore's No.3 sand source, providing 3.8 million tonnes or 21.5 per cent, after Vietnam at 45 per cent and Malaysia at 22 per cent, said the report, citing United Nations statistics.
At least one Singapore-registered company was named in the report as working with Cambodian dredgers to supply sand to industrial landlord JTC for its land reclamation activities.
Given Singapore's ambition to be a regional environmental leader, it is 'not doing enough to mitigate against the negative impact of its consumption of Cambodian sand', said Global Witness campaigner George Boden.
But MND yesterday rejected this, noting that contracts by JTC - which engages suppliers for its reclamation works - stipulate that the sand vendors have to act responsibly, and it sends out 'firm reminders' to them to observe source country regulations.
JTC requires sand vendors to give a statutory declaration that they are acting responsibly. It also requires that they provide various documents and licences from source countries.
In addition, Singapore Customs has procedures to check and investigate the import of all goods, including sand, at the various checkpoints, said MND.
In its report, Global Witness also alleges some concession licences were signed and stamped by an official from Singapore's embassy in Cambodia.
'The reason for an embassy official stamping this document is unclear,' wrote Global Witness.
MND said in response that 'the embassy, like other embassies, provides notarial services for the public. Document notarisation is a simple process of checking and authorising either copies of documents tendered as replicates or verification of signatures in some cases'.
MND added that the policing and enforcement of sand extraction licences is 'ultimately the responsibility of the source country. However, Singapore will continue to play its part to ensure that sand is extracted in a legal and environmentally responsible manner'.
Singapore used to source the bulk of its sand from Indonesia before the country abruptly banned all sand exports to Singapore in early 2007, citing environmental reasons. This led to a 'sand crisis' where building activity almost ground to a halt and sand prices trebled at one point.
Singapore Contractors Association president Andrew Khng said Singapore's builders have since diversified their sand sources, ranging from Vietnam to Myanmar and China.
'Sand used in concrete is sourced by the industry from various countries. As for reclamation sand, only a small minority of contractors are in this business,' he said.
When contacted, the Building and Construction Authority said: 'Our construction industry does not import concreting sand from Cambodia.'
It added that an Act was amended in Parliament recently to license the importers of essential construction materials to ensure that such imported materials meet quality standards.
jcheam@sph.com.sg
S'pore rejects claim of illegal sand imports
It does not condone the illegal export or smuggling of sand: MND
By Jessica Cheam
THE Government has rejected a new report that suggests Singapore is importing Cambodian sand illegally and without regard for the environment.
The new report, released today by environmental group, Global Witness, claims that Cambodia's sand trade is thriving despite a recent sand export ban, and that Singapore is the primary consumer of sand exported from Cambodia.
But in a statement yesterday, the Ministry of National Development said the report 'suggests that the Singapore Government seeks to import sand without due regard to the laws or environmental impact of the source country, in this case, Cambodia'.
'This is not true. We are committed to the protection of the global environment, and we do not condone the illegal export or smuggling of sand, or any extraction of sand that is in breach of the source countries' laws and rules on environmental protection. We have not received any official notice on the ban of sand exports from Cambodia,' it added.
It said sand suppliers are private firms which buy sand from concession holders in various countries. They extract the sand after identifying locations.
The report said that despite imposing a ban on the export of sea sand, the Cambodian government's actions 'appear to have facilitated, rather than limited, dredging operations'. These activities have led to the degradation of ecosystems. Fish and crab harvests have also fallen, threatening the livelihood of local communities, it said.
It estimates the annual value of the sand trade at US$28.7 million (S$40 million) in Cambodia and US$248 million in retail value in Singapore.
In 2008, the Republic was the largest global importer of sand at 14.2 million tonnes valued at US$273 million.
Of this total, Cambodia was Singapore's No.3 sand source, providing 3.8 million tonnes or 21.5 per cent, after Vietnam at 45 per cent and Malaysia at 22 per cent, said the report, citing United Nations statistics.
At least one Singapore-registered company was named in the report as working with Cambodian dredgers to supply sand to industrial landlord JTC for its land reclamation activities.
Given Singapore's ambition to be a regional environmental leader, it is 'not doing enough to mitigate against the negative impact of its consumption of Cambodian sand', said Global Witness campaigner George Boden.
But MND yesterday rejected this, noting that contracts by JTC - which engages suppliers for its reclamation works - stipulate that the sand vendors have to act responsibly, and it sends out 'firm reminders' to them to observe source country regulations.
JTC requires sand vendors to give a statutory declaration that they are acting responsibly. It also requires that they provide various documents and licences from source countries.
In addition, Singapore Customs has procedures to check and investigate the import of all goods, including sand, at the various checkpoints, said MND.
In its report, Global Witness also alleges some concession licences were signed and stamped by an official from Singapore's embassy in Cambodia.
'The reason for an embassy official stamping this document is unclear,' wrote Global Witness.
MND said in response that 'the embassy, like other embassies, provides notarial services for the public. Document notarisation is a simple process of checking and authorising either copies of documents tendered as replicates or verification of signatures in some cases'.
MND added that the policing and enforcement of sand extraction licences is 'ultimately the responsibility of the source country. However, Singapore will continue to play its part to ensure that sand is extracted in a legal and environmentally responsible manner'.
Singapore used to source the bulk of its sand from Indonesia before the country abruptly banned all sand exports to Singapore in early 2007, citing environmental reasons. This led to a 'sand crisis' where building activity almost ground to a halt and sand prices trebled at one point.
Singapore Contractors Association president Andrew Khng said Singapore's builders have since diversified their sand sources, ranging from Vietnam to Myanmar and China.
'Sand used in concrete is sourced by the industry from various countries. As for reclamation sand, only a small minority of contractors are in this business,' he said.
When contacted, the Building and Construction Authority said: 'Our construction industry does not import concreting sand from Cambodia.'
It added that an Act was amended in Parliament recently to license the importers of essential construction materials to ensure that such imported materials meet quality standards.
jcheam@sph.com.sg
ST : Dragon Mansion en bloc sale approved
May 11, 2010
Dragon Mansion en bloc sale approved
By Dickson Li
THE Strata Titles Board (STB) approved the $100.8 million collective sale of Dragon Mansion yesterday.
It is the only collective sale site to have achieved a sale price above $100 million since the global economic crisis unfolded, says the deal's broker, CKS Property Consultants.
The tender for the collective sale of Dragon Mansion was launched in July last year, marking the first such sale offering of the year.
Owners of the 72-unit condominium initially wanted $120 million, or $1,020 per sq ft (psf) per plot ratio. This was significantly above collective sale prices racked up in the 2007 boom.
Their sale tender closed on Aug 11 last year with no firm bids. A deal was eventually struck with RL Developments, a subsidiary of boutique developer Roxy-Pacific, for $100.8 million last December.
Owners of the 1,399 sq ft units in the Spottiswoode Park estate near Outram Park will pick up about $1.4 million each.
Roxy's offer came in at the end of October and it entered into a conditional agreement to acquire the site. Its offer of $100.8 million worked out to $863 per sq ft and included a development charge.
Dragon Mansion has a land area of 41,874 sq ft. A new development on the site could potentially yield a maximum gross floor area of about 117,000 sq ft - or about 120 apartments of 1,000 sq ft each.
Dragon Mansion en bloc sale approved
By Dickson Li
THE Strata Titles Board (STB) approved the $100.8 million collective sale of Dragon Mansion yesterday.
It is the only collective sale site to have achieved a sale price above $100 million since the global economic crisis unfolded, says the deal's broker, CKS Property Consultants.
The tender for the collective sale of Dragon Mansion was launched in July last year, marking the first such sale offering of the year.
Owners of the 72-unit condominium initially wanted $120 million, or $1,020 per sq ft (psf) per plot ratio. This was significantly above collective sale prices racked up in the 2007 boom.
Their sale tender closed on Aug 11 last year with no firm bids. A deal was eventually struck with RL Developments, a subsidiary of boutique developer Roxy-Pacific, for $100.8 million last December.
Owners of the 1,399 sq ft units in the Spottiswoode Park estate near Outram Park will pick up about $1.4 million each.
Roxy's offer came in at the end of October and it entered into a conditional agreement to acquire the site. Its offer of $100.8 million worked out to $863 per sq ft and included a development charge.
Dragon Mansion has a land area of 41,874 sq ft. A new development on the site could potentially yield a maximum gross floor area of about 117,000 sq ft - or about 120 apartments of 1,000 sq ft each.
BT : URA auctioning sites for heavy vehicle parking
Business Times - 11 May 2010
URA auctioning sites for heavy vehicle parking
THE Urban Redevelopment Authority will auction three sites for heavy vehicle parking at 2pm on June 3 at URA Centre.
The parcels, launched yesterday, are at Bukit Batok West Avenue 5 and Senoko Drive.
They are being released to help meet the needs of transport operators and fleet owners.
Registered heavy vehicles that can be parked on the sites include trailers, buses and any other vehicle with a maximum laden weight exceeding five tonnes.
Developer's packets can be bought from the customer service counter at the URA Centre for $52.50.
They can also be bought online at http://www.ura.gov.sg/LspWeb/ at the same price, plus delivery charges.
More details can be found on the URA website http://www.ura.gov.sg/sales/HVP-BBSeno/bbSD-intro.html.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
URA auctioning sites for heavy vehicle parking
THE Urban Redevelopment Authority will auction three sites for heavy vehicle parking at 2pm on June 3 at URA Centre.
The parcels, launched yesterday, are at Bukit Batok West Avenue 5 and Senoko Drive.
They are being released to help meet the needs of transport operators and fleet owners.
Registered heavy vehicles that can be parked on the sites include trailers, buses and any other vehicle with a maximum laden weight exceeding five tonnes.
Developer's packets can be bought from the customer service counter at the URA Centre for $52.50.
They can also be bought online at http://www.ura.gov.sg/LspWeb/ at the same price, plus delivery charges.
More details can be found on the URA website http://www.ura.gov.sg/sales/HVP-BBSeno/bbSD-intro.html.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Are China property prices high? 'Yes', and 'no'
Business Times - 11 May 2010
Are China property prices high? 'Yes', and 'no'
Hang Lung eyes returns from China offices, not homes, says its chairman
By EMILYN YAP
ASK Hang Lung Properties chairman Ronnie Chan if there is a property bubble in China, and you are unlikely to get a straight answer.
It is all a matter of perspective to the 61-year-old, who has spent more than 30 years with the Hong Kong developer. 'Cyclically it is high, but systematically it is not,' he said, referring to the level of home prices in major Chinese cities today.
Mr Chan was speaking to The Business Times in Singapore, on the sidelines of a symposium on urbanisation and housing organised by the National University of Singapore's Institute of Real Estate Studies last week.
'If you were to compare Shanghai today with Shanghai five years ago, of course (prices are) high. But that is a wrong comparison,' he said. 'If you were to compare Shanghai today with Hong Kong, Singapore, New York, London, then (prices are) still very cheap.'
Holding a different view from Mr Chan is Joseph Gyourko, a professor at the University of Pennsylvania's Wharton School. He was also in town for the symposium and told BT: 'In China, particularly on the coast, prices have escalated sharply. Price-to-rent ratios have gone up very, very sharply and they look unsustainably high.'
Land prices in Beijing have also increased 10 times since 2003, he added. These changes are 'potentially foreboding' because 'real fundamental demand rarely changes by that much over that short a time period'.
Whether home prices are too high or not, their fast pace of increase has gotten the Chinese government worried. The state has been implementing a series of anti-speculation measures in the last few weeks, causing home sales to dip. Analysts are expecting price falls of 20-30 per cent to follow.
The cooling measures have introduced caution to the stockmarket, and developers with exposure to the Chinese residential sector have seen their share prices slide. China Vanke, for instance, has dropped more than 20 per cent from a month ago.
Even Hang Lung, which has a diversified property portfolio in Hong Kong but just commercial and retail properties in China, was not spared. Its share price has gone down by some 12 per cent in the last one month.
Hang Lung is behind Plaza 66 in Shanghai and other developments in cities such as Tianjin and Shenyang. It has no plans to start building homes in China, and that has nothing to do with the recent tightening rules.
'If I have to craft my strategy according to what the government does today or tomorrow, I'm really foolish,' Mr Chan said. 'You've got to have a strategic view of the market.'
There are a lot of big players in the residential sector and the tax on selling homes is high, he explained. Also, China remains socialist in nature. 'In order to maintain stability and harmony in society, the government will ensure that (home) prices don't go too high.'
Taking all these factors into account, risk-adjusted returns from the commercial business are much more attractive. 'We're able to get 30 per cent unleveraged cash to cash return on our commercial properties from rent alone,' he shared.
The residential sector in China 'can be a great market to make a lot of money but it is also a very treacherous market where you can lose your shirt', he said.
Hang Lung's interest in building homes remains in Hong Kong, and Mr Chan believes that the territory will see more home buyers from China. This is even more likely should the yuan appreciate, as market talk has it.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mr Chan: 'If I have to craft my strategy according to what the government does today or tomorrow, I'm really foolish. You've got to have a strategic view of the market'
Are China property prices high? 'Yes', and 'no'
Hang Lung eyes returns from China offices, not homes, says its chairman
By EMILYN YAP
ASK Hang Lung Properties chairman Ronnie Chan if there is a property bubble in China, and you are unlikely to get a straight answer.
It is all a matter of perspective to the 61-year-old, who has spent more than 30 years with the Hong Kong developer. 'Cyclically it is high, but systematically it is not,' he said, referring to the level of home prices in major Chinese cities today.
Mr Chan was speaking to The Business Times in Singapore, on the sidelines of a symposium on urbanisation and housing organised by the National University of Singapore's Institute of Real Estate Studies last week.
'If you were to compare Shanghai today with Shanghai five years ago, of course (prices are) high. But that is a wrong comparison,' he said. 'If you were to compare Shanghai today with Hong Kong, Singapore, New York, London, then (prices are) still very cheap.'
Holding a different view from Mr Chan is Joseph Gyourko, a professor at the University of Pennsylvania's Wharton School. He was also in town for the symposium and told BT: 'In China, particularly on the coast, prices have escalated sharply. Price-to-rent ratios have gone up very, very sharply and they look unsustainably high.'
Land prices in Beijing have also increased 10 times since 2003, he added. These changes are 'potentially foreboding' because 'real fundamental demand rarely changes by that much over that short a time period'.
Whether home prices are too high or not, their fast pace of increase has gotten the Chinese government worried. The state has been implementing a series of anti-speculation measures in the last few weeks, causing home sales to dip. Analysts are expecting price falls of 20-30 per cent to follow.
The cooling measures have introduced caution to the stockmarket, and developers with exposure to the Chinese residential sector have seen their share prices slide. China Vanke, for instance, has dropped more than 20 per cent from a month ago.
Even Hang Lung, which has a diversified property portfolio in Hong Kong but just commercial and retail properties in China, was not spared. Its share price has gone down by some 12 per cent in the last one month.
Hang Lung is behind Plaza 66 in Shanghai and other developments in cities such as Tianjin and Shenyang. It has no plans to start building homes in China, and that has nothing to do with the recent tightening rules.
'If I have to craft my strategy according to what the government does today or tomorrow, I'm really foolish,' Mr Chan said. 'You've got to have a strategic view of the market.'
There are a lot of big players in the residential sector and the tax on selling homes is high, he explained. Also, China remains socialist in nature. 'In order to maintain stability and harmony in society, the government will ensure that (home) prices don't go too high.'
Taking all these factors into account, risk-adjusted returns from the commercial business are much more attractive. 'We're able to get 30 per cent unleveraged cash to cash return on our commercial properties from rent alone,' he shared.
The residential sector in China 'can be a great market to make a lot of money but it is also a very treacherous market where you can lose your shirt', he said.
Hang Lung's interest in building homes remains in Hong Kong, and Mr Chan believes that the territory will see more home buyers from China. This is even more likely should the yuan appreciate, as market talk has it.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Mr Chan: 'If I have to craft my strategy according to what the government does today or tomorrow, I'm really foolish. You've got to have a strategic view of the market'
BT : Be a distinctive, age-friendly city
Business Times - 11 May 2010
Be a distinctive, age-friendly city
URA focus group suggests ways to tackle quality of life and ageing issues
By UMA SHANKARI
A GOVERNMENT-initiated focus group tasked with looking at quality of life and ageing issues ahead of Concept Plan 2011 thinks that Singapore should strive to become a more distinctive city - and more 'age-friendly'.
The focus group is one of two set up by the Urban Redevelopment Authority in January to gather ideas as Concept Plan 2011 - which will map out Singapore's long-term land use strategies and directions - is drafted. The first focus group, which announced its draft recommendations last week, looked at two other topics - sustainability and identity issues.
The second focus group announced its draft recommendations and sought public feedback on them at a forum yesterday.
Its members propose four key thrusts: creating an inspiring global and Asian city; deepening people's sense of community and ownership; catering for diversity while being 'age-friendly'; and making sure Singapore stays at the cutting-edge of technology use.
Specific suggestions included enhancing public transport by creating a comprehensive intra-city shuttle bus network with convenient pick-up points, a hire-and-ride bicycle scheme and/or a water transport network within the city centre.
'We need to enhance mobility, walkability and the public transport experience,' said focus group co-chairman Edmund Cheng, chairman of the National Arts Council.
The group also said that the government has to look at ways to facilitate 'ageing in place' for the elderly.
'Provisions have to be made for the majority of people to fulfil their wish of ageing in place,' said Tan Chorh Chuan, the other co-chairman of the focus group. Professor Tan is the president of the National University of Singapore.
Suggestions include providing different flat sizes within each HDB block or precinct to cater to changing household sizes over time, and giving the elderly a menu of senior-friendly fixtures to retrofit their existing homes as they age.
Prof Tan also said that more places have to be 'senior-friendly', which means that mobility for seniors and the less-abled has to be improved by ensuring more pervasive universal design and 'end-to-end' accessibility.
Both focus groups will now gather public feedback and incorporate it into their deliberations before releasing their final recommendations in June.
Concept Plan 2011, which is expected to be finalised by the second half of next year, will then take these recommendations into consideration.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Looking ahead: The group says the govt has to look at ways to facilitate 'ageing in place' for the elderly
Be a distinctive, age-friendly city
URA focus group suggests ways to tackle quality of life and ageing issues
By UMA SHANKARI
A GOVERNMENT-initiated focus group tasked with looking at quality of life and ageing issues ahead of Concept Plan 2011 thinks that Singapore should strive to become a more distinctive city - and more 'age-friendly'.
The focus group is one of two set up by the Urban Redevelopment Authority in January to gather ideas as Concept Plan 2011 - which will map out Singapore's long-term land use strategies and directions - is drafted. The first focus group, which announced its draft recommendations last week, looked at two other topics - sustainability and identity issues.
The second focus group announced its draft recommendations and sought public feedback on them at a forum yesterday.
Its members propose four key thrusts: creating an inspiring global and Asian city; deepening people's sense of community and ownership; catering for diversity while being 'age-friendly'; and making sure Singapore stays at the cutting-edge of technology use.
Specific suggestions included enhancing public transport by creating a comprehensive intra-city shuttle bus network with convenient pick-up points, a hire-and-ride bicycle scheme and/or a water transport network within the city centre.
'We need to enhance mobility, walkability and the public transport experience,' said focus group co-chairman Edmund Cheng, chairman of the National Arts Council.
The group also said that the government has to look at ways to facilitate 'ageing in place' for the elderly.
'Provisions have to be made for the majority of people to fulfil their wish of ageing in place,' said Tan Chorh Chuan, the other co-chairman of the focus group. Professor Tan is the president of the National University of Singapore.
Suggestions include providing different flat sizes within each HDB block or precinct to cater to changing household sizes over time, and giving the elderly a menu of senior-friendly fixtures to retrofit their existing homes as they age.
Prof Tan also said that more places have to be 'senior-friendly', which means that mobility for seniors and the less-abled has to be improved by ensuring more pervasive universal design and 'end-to-end' accessibility.
Both focus groups will now gather public feedback and incorporate it into their deliberations before releasing their final recommendations in June.
Concept Plan 2011, which is expected to be finalised by the second half of next year, will then take these recommendations into consideration.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Looking ahead: The group says the govt has to look at ways to facilitate 'ageing in place' for the elderly
BT : Reluctant lenders might cost builders in future
Business Times - 11 May 2010
Reluctant lenders might cost builders in future
Developers aiming to time projects from '11-'14 as rents promise to be high
(LONDON) Jittery lenders and hefty margins on central London prime office construction finance may stunt speculative building until 2014 and stop developers from timing projects to coincide with an anticipated sweet spot in rents.
'It's the easiest thing in the world for a bank to just say no to development loan requests . . . Most banks used to lend like every deal was a safe bet. Now many of them won't lend a penny to developers,' said Solly Benaim, head of real estate at BDO.
The global financial recession saw many London developers postpone or cancel prime office projects as unemployment rose, while rents and construction costs fell. Now, they want to kickstart projects, but lenders remain wary of the risks.
Savills' commercial research head, Mat Oakley, is advising clients that 2011-2014 promises to be a boon for landlords keen to let prime offices to space-hungry companies that are growing on the back of economic recovery.
'Lenders' caution and the almost non-existent development pipeline almost everywhere in the UK is not an ideal situation for UK public limited companies because the economy will recover and businesses will grow,' Mr Oakley told Reuters.
Lender wariness is seen in the high margins for construction finance. Analysts said loan-to-values of 50 per cent would likely have margins of about 175-375 basis points (bps) over Libor, those on 65 per cent LTV reaching 200 bps-plus.
'It takes hundreds and hundreds of millions of pounds to build some of these schemes but I can't think of any banks willing to contemplate development loans in excess of £75 million (S$155.2 million),' one senior UK banker said.
Capital adequacy rules for banks, in accordance with Basel II controls, are designed to discourage risky development lending, and have made it near impossible for banks to give finance on large-scale construction projects without a significant number of pre-lets.
'Some people have accused us of withholding funds from the market. The fact is we couldn't lend (to speculative projects) even if we wanted to,' the senior UK banker said.
Nick Berry, a partner at property fund manager Mountgrange Investment Management, said: 'They are picky about the sector, the sponsor, pre-lets and the covenant. A developer really needs to tick all those boxes before they can be confident about securing the debt they need.'
Chris Vydra, a partner at property advisor Knight Frank, said that new office supply in the City would remain at historically low levels for at least another two years. Analysts are forecasting the delivery of about 1-2 million sq ft of prime office space a year in the period 2011-2014, against average annual demand of about 4.5 million sq ft, effectively serving to lift rents and suppress vacancy levels.
Mr Vydra expects normal rents to hit at least £52.5 pounds a sq ft by end-2010, up 19 per cent from about £44 in December. 'At the end of last year, some people thought that (forecast) was totally unrealistic, but we might even be a little light on that estimate,' he said.
Some developers are already hawking their plans around banks with a view to getting finance for construction or refurbishment work, and Savills' research shows some are tentatively in the market to provide this, at a price.
It lists Barclays, Close Brothers, HSBC, Eurohypo, Lloyds Banking Group and Royal Bank of Scotland as potential sources of finance. Developers wanting to time their re-entry into an improving market are also mulling other options, including joint ventures, syndicated loans, fund raisings, and forward-funding agreements.
'To get your partner signed up, you're going to have to have a very convincing story and as much certainty on price and construction costs as you can,' said BNP Paribas' Dan Bayley.
If successful, these developers may cause a wave of project completions at the end of the 2011-2014 sweet spot. - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reluctant lenders might cost builders in future
Developers aiming to time projects from '11-'14 as rents promise to be high
(LONDON) Jittery lenders and hefty margins on central London prime office construction finance may stunt speculative building until 2014 and stop developers from timing projects to coincide with an anticipated sweet spot in rents.
'It's the easiest thing in the world for a bank to just say no to development loan requests . . . Most banks used to lend like every deal was a safe bet. Now many of them won't lend a penny to developers,' said Solly Benaim, head of real estate at BDO.
The global financial recession saw many London developers postpone or cancel prime office projects as unemployment rose, while rents and construction costs fell. Now, they want to kickstart projects, but lenders remain wary of the risks.
Savills' commercial research head, Mat Oakley, is advising clients that 2011-2014 promises to be a boon for landlords keen to let prime offices to space-hungry companies that are growing on the back of economic recovery.
'Lenders' caution and the almost non-existent development pipeline almost everywhere in the UK is not an ideal situation for UK public limited companies because the economy will recover and businesses will grow,' Mr Oakley told Reuters.
Lender wariness is seen in the high margins for construction finance. Analysts said loan-to-values of 50 per cent would likely have margins of about 175-375 basis points (bps) over Libor, those on 65 per cent LTV reaching 200 bps-plus.
'It takes hundreds and hundreds of millions of pounds to build some of these schemes but I can't think of any banks willing to contemplate development loans in excess of £75 million (S$155.2 million),' one senior UK banker said.
Capital adequacy rules for banks, in accordance with Basel II controls, are designed to discourage risky development lending, and have made it near impossible for banks to give finance on large-scale construction projects without a significant number of pre-lets.
'Some people have accused us of withholding funds from the market. The fact is we couldn't lend (to speculative projects) even if we wanted to,' the senior UK banker said.
Nick Berry, a partner at property fund manager Mountgrange Investment Management, said: 'They are picky about the sector, the sponsor, pre-lets and the covenant. A developer really needs to tick all those boxes before they can be confident about securing the debt they need.'
Chris Vydra, a partner at property advisor Knight Frank, said that new office supply in the City would remain at historically low levels for at least another two years. Analysts are forecasting the delivery of about 1-2 million sq ft of prime office space a year in the period 2011-2014, against average annual demand of about 4.5 million sq ft, effectively serving to lift rents and suppress vacancy levels.
Mr Vydra expects normal rents to hit at least £52.5 pounds a sq ft by end-2010, up 19 per cent from about £44 in December. 'At the end of last year, some people thought that (forecast) was totally unrealistic, but we might even be a little light on that estimate,' he said.
Some developers are already hawking their plans around banks with a view to getting finance for construction or refurbishment work, and Savills' research shows some are tentatively in the market to provide this, at a price.
It lists Barclays, Close Brothers, HSBC, Eurohypo, Lloyds Banking Group and Royal Bank of Scotland as potential sources of finance. Developers wanting to time their re-entry into an improving market are also mulling other options, including joint ventures, syndicated loans, fund raisings, and forward-funding agreements.
'To get your partner signed up, you're going to have to have a very convincing story and as much certainty on price and construction costs as you can,' said BNP Paribas' Dan Bayley.
If successful, these developers may cause a wave of project completions at the end of the 2011-2014 sweet spot. - Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Chip Eng Seng JV buys Perth mixed plot for A$20m
Business Times - 11 May 2010
Chip Eng Seng JV buys Perth mixed plot for A$20m
By EMILYN YAP
CHIP Eng Seng Corp has partnered an Australian developer to purchase a piece of land in Perth for A$20 million (S$24.9 million).
The 50:50 joint venture with Cranecorp plans to turn the 1.02 hectare site at Scarborough into a mixed use development. There will be three blocks of 12-storey buildings, with around 150 residential units, 80 serviced apartments, nine townhouses, commercial offices, retail shops and parking facilities.
Scarborough is a seaside suburb in the western part of Perth, and is a 40-minute drive from the city.
The investment will be financed through internal funds and bank borrowings. Chip Eng Seng does not expect the development to have any material impact on its net tangible assets and earnings per share for the current financial year ending Dec 31, 2010.
The counter gained half a cent yesterday to close at 35.5 cents.
The local construction and property group has been growing its presence Down Under. In March, it won the tender for a land parcel in Melbourne for A$20.2 million. It also has two completed projects in Adelaide.
'Besides Singapore, we see attractive opportunities for Chip Eng Seng to grow its portfolio of quality residential projects in the region,' said executive chairman Lim Tiam Seng.
'Australia is one of them. Its long-term property outlook remains strong, driven by population growth and robust consumer and business sentiment. Demand continues to outstrip supply in this market.'
Chip Eng Seng's partner in the latest deal, Cranecorp, is a private developer based in Melbourne. Its projects include Tribeca, also a mixed use development in that city.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chip Eng Seng JV buys Perth mixed plot for A$20m
By EMILYN YAP
CHIP Eng Seng Corp has partnered an Australian developer to purchase a piece of land in Perth for A$20 million (S$24.9 million).
The 50:50 joint venture with Cranecorp plans to turn the 1.02 hectare site at Scarborough into a mixed use development. There will be three blocks of 12-storey buildings, with around 150 residential units, 80 serviced apartments, nine townhouses, commercial offices, retail shops and parking facilities.
Scarborough is a seaside suburb in the western part of Perth, and is a 40-minute drive from the city.
The investment will be financed through internal funds and bank borrowings. Chip Eng Seng does not expect the development to have any material impact on its net tangible assets and earnings per share for the current financial year ending Dec 31, 2010.
The counter gained half a cent yesterday to close at 35.5 cents.
The local construction and property group has been growing its presence Down Under. In March, it won the tender for a land parcel in Melbourne for A$20.2 million. It also has two completed projects in Adelaide.
'Besides Singapore, we see attractive opportunities for Chip Eng Seng to grow its portfolio of quality residential projects in the region,' said executive chairman Lim Tiam Seng.
'Australia is one of them. Its long-term property outlook remains strong, driven by population growth and robust consumer and business sentiment. Demand continues to outstrip supply in this market.'
Chip Eng Seng's partner in the latest deal, Cranecorp, is a private developer based in Melbourne. Its projects include Tribeca, also a mixed use development in that city.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Oversupply of homes in Dubai to pressure prices
Business Times - 11 May 2010
Oversupply of homes in Dubai to pressure prices
(DUBAI) The completion of a 'significant' number of new homes in Dubai later this year will further pressure prices that rose 2 per cent in the first quarter, Colliers International said.
Colliers, a global real-estate-services firm, estimates that 41,000 residential units will enter the market by the end of 2010, mostly in the low- to mid-income segments. House prices in the first quarter were on par with 2007 levels, rising on average to 1,061 dirhams (S$398.8) a square foot from 1,037 dirhams a year earlier, Colliers said in an e-mailed report on Sunday.
'There will be significant oversupply in the market by the end of the year, so it is anticipated the index will experience fluctuations in value going forward,' Colliers' regional director Ian Albert said in the report. 'Demand is not expected to match the growth in supply, creating downward pressure on property prices,' according to the document.
Dubai's property prices have slumped more than 50 per cent since their peak in mid-2008 as the financial crisis forced companies to dismiss workers. The market's collapse followed a construction boom that created thousands of homes just as demand began to evaporate.
Apartment prices in the emirate gained 6 per cent in the first quarter compared with the previous three months and villa prices rose 2 per cent while the cost of townhouses was down 4 per cent, Colliers' house-price index showed.
'Numerous' banks and mortgage providers increased the loan-to-value ratio to between 75 per cent and 90 per cent in the first quarter, according to Colliers. Some also lowered interest rates on mortgages to between 6.5 per cent and 8.5 per cent\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Oversupply of homes in Dubai to pressure prices
(DUBAI) The completion of a 'significant' number of new homes in Dubai later this year will further pressure prices that rose 2 per cent in the first quarter, Colliers International said.
Colliers, a global real-estate-services firm, estimates that 41,000 residential units will enter the market by the end of 2010, mostly in the low- to mid-income segments. House prices in the first quarter were on par with 2007 levels, rising on average to 1,061 dirhams (S$398.8) a square foot from 1,037 dirhams a year earlier, Colliers said in an e-mailed report on Sunday.
'There will be significant oversupply in the market by the end of the year, so it is anticipated the index will experience fluctuations in value going forward,' Colliers' regional director Ian Albert said in the report. 'Demand is not expected to match the growth in supply, creating downward pressure on property prices,' according to the document.
Dubai's property prices have slumped more than 50 per cent since their peak in mid-2008 as the financial crisis forced companies to dismiss workers. The market's collapse followed a construction boom that created thousands of homes just as demand began to evaporate.
Apartment prices in the emirate gained 6 per cent in the first quarter compared with the previous three months and villa prices rose 2 per cent while the cost of townhouses was down 4 per cent, Colliers' house-price index showed.
'Numerous' banks and mortgage providers increased the loan-to-value ratio to between 75 per cent and 90 per cent in the first quarter, according to Colliers. Some also lowered interest rates on mortgages to between 6.5 per cent and 8.5 per cent\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : US homes in negative equity rises to 23.3%
Business Times - 11 May 2010
US homes in negative equity rises to 23.3%
Growing percentage from Q4 poses threat to housing recovery: Zillow
(NEW YORK) A growing percentage of US homeowners were saddled with 'underwater mortgages' in the first quarter, accounting for almost one in four homes in a trend that poses a serious threat to the housing market's recovery, real estate website Zillow.com said yesterday.
US home values also declined again in the first quarter, Zillow reported.
Homeowners with 'underwater' mortgages - where the amount owed on the mortgage exceeds the value of the home - are more prone to defaults and foreclosures.
The percentage of American single-family homes with mortgages in negative equity rose to 23.3 per cent in the first quarter from 21.4 per cent in the fourth quarter, according to the Zillow Real Estate Market Reports.
US home values in the first quarter were down 3.8 per cent year over year and down one per cent quarter over quarter, to US$183,700, according to the Zillow Home Value Index. It was the 13th consecutive quarter of year over year declines.
'Several large California markets have shown significant stabilisation in home values, marking what could be a bottom,' Stan Humphries, Zillow chief economist, said in an interview.'But most markets across the country remained in decline.'
Home values declined year over year in 106 of the 135 metropolitan areas tracked by Zillow.
But home values in several large California metro areas - Los Angeles, San Diego, San Francisco, Santa Barbara and Ventura - have risen significantly for at least the past 10 months, up from lows reached in April or May last year.
Mr Humphries said that the government's recently expired homebuyer tax credits likely only shifted the timing of sales, rather than creating new demand.
Buyers seeking to take advantage of the tax credits had to sign purchase contracts by April 30 and have until June 30 to close on the sales.
Mr Humphries said that inventory levels were rising during the first quarter and home values continued to decline at a steady clip, even when the tax credits were still in place.
As a result, national home values are likely to reach bottom in the third quarter, and home value appreciation will likely then be near zero for some time, possibly as long as five years, he said.
The number of homeowners losing their homes to foreclosure across the country rose to a new peak in March, with more than one in every thousand homes, or 0.11 per cent, being foreclosed, the highest since Zillow began recording national foreclosure data in 2000.
Foreclosure resales remained high in March, accounting for 22.2 per cent of all US home sales. Foreclosure resales made up the majority of sales in several metropolitan areas, including Merced, California, at 66.3 per cent; Madera, California, at 63 per cent; and the Modesto, California, at 61.7 per cent, the reports showed. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
US homes in negative equity rises to 23.3%
Growing percentage from Q4 poses threat to housing recovery: Zillow
(NEW YORK) A growing percentage of US homeowners were saddled with 'underwater mortgages' in the first quarter, accounting for almost one in four homes in a trend that poses a serious threat to the housing market's recovery, real estate website Zillow.com said yesterday.
US home values also declined again in the first quarter, Zillow reported.
Homeowners with 'underwater' mortgages - where the amount owed on the mortgage exceeds the value of the home - are more prone to defaults and foreclosures.
The percentage of American single-family homes with mortgages in negative equity rose to 23.3 per cent in the first quarter from 21.4 per cent in the fourth quarter, according to the Zillow Real Estate Market Reports.
US home values in the first quarter were down 3.8 per cent year over year and down one per cent quarter over quarter, to US$183,700, according to the Zillow Home Value Index. It was the 13th consecutive quarter of year over year declines.
'Several large California markets have shown significant stabilisation in home values, marking what could be a bottom,' Stan Humphries, Zillow chief economist, said in an interview.'But most markets across the country remained in decline.'
Home values declined year over year in 106 of the 135 metropolitan areas tracked by Zillow.
But home values in several large California metro areas - Los Angeles, San Diego, San Francisco, Santa Barbara and Ventura - have risen significantly for at least the past 10 months, up from lows reached in April or May last year.
Mr Humphries said that the government's recently expired homebuyer tax credits likely only shifted the timing of sales, rather than creating new demand.
Buyers seeking to take advantage of the tax credits had to sign purchase contracts by April 30 and have until June 30 to close on the sales.
Mr Humphries said that inventory levels were rising during the first quarter and home values continued to decline at a steady clip, even when the tax credits were still in place.
As a result, national home values are likely to reach bottom in the third quarter, and home value appreciation will likely then be near zero for some time, possibly as long as five years, he said.
The number of homeowners losing their homes to foreclosure across the country rose to a new peak in March, with more than one in every thousand homes, or 0.11 per cent, being foreclosed, the highest since Zillow began recording national foreclosure data in 2000.
Foreclosure resales remained high in March, accounting for 22.2 per cent of all US home sales. Foreclosure resales made up the majority of sales in several metropolitan areas, including Merced, California, at 66.3 per cent; Madera, California, at 63 per cent; and the Modesto, California, at 61.7 per cent, the reports showed. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : CapitaLand plans 6th China Raffles City project in Shenzhen
Business Times - 11 May 2010
CapitaLand plans 6th China Raffles City project in Shenzhen
Completion of the mixed development expected in phases from 2014
By KALPANA RASHIWALA
CAPITALAND continues to expand its Raffles City footprint in China. It yesterday announced plans for building a mixed development under this franchise in the southern Chinese city of Shenzhen, making it the group's sixth Raffles City project in China and eighth internationally.
The property giant has a Raffles City property each in Singapore and Bahrain.
CapitaLand will build Raffles City Shenzhen - comprising a Grade A office tower, a mall and a hotel or serviced residence component - on a 578,291 sq ft site at the junction of Nan Hai Avenue and Chuang Ye Road, within the Nanshan commercial district of Shenzhen. The 50-year leasehold plot was acquired in 2008.
In its announcement yesterday, CapitaLand said it will also develop on this same site for strata sale an office tower, residential apartments, small office home office (SoHo) units and shop space. The entire project - comprising Raffles City Shenzhen and the strata-sale component - will have about 2.56 million sq ft gross floor area (GFA) and involve project development cost (inclusive of land and construction cost) of about six billion yuan (S$1.25 billion). Planning and development works for the entire project are underway and the project is slated for completion in phases from 2014.
The Raffles City portion, which is being designed by international architectural and design firm Benoy, will have GFA of about 1.37 million sq ft and the strata-sale portion, about 1.2 million sq ft.
CapitaLand is the major shareholder and lead development manager with a 58.3 per cent stake in the entire project. The remaining stake is held by other parties unrelated to CapitaLand.
Market watchers expect CapitaLand to later pump Raffles City Shenzhen into its Raffles City China Fund, which currently holds the five other Raffles City projects in China - in Shanghai, Beijing, Chengdu, Hangzhou and Ningbo. Last month, CapitaLand announced the fund has raised an additional US$180 million in committed capital, taking the fund's capital to US$1.18 billion. It also said that future closings could further boost the fund size to US$1.5 billion. At the same time, CapitaLand announced the injection of Raffles City Ningbo into the fund. This development is slated for completion by 2012. CapitaLand effectively owns 45.6 per cent of the fund.
'Our businesses in China continue to do well,' noted Liew Mun Leong, president and CEO of CapitaLand Group in yesterday's release. In Beijing, the group released over 40 residential units at its 313-unit La Capitale condo in Dongcheng District in the middle of last month and to date, half have been sold at an average price of 40,000 yuan per square metre.
CapitaMalls Asia is slated to open another five shopping malls across China this year, in addition to Anyang Mall in Henan, which opened in Q1 this year.
'Ascott, CapitaLand's serviced residence business unit, has opened three properties in Beijing, Shanghai and Chengdu this year and another four properties with over 1,000 units will open in 2010,' Mr Liew added.
CapitaLand China Holdings CEO Jason Leow noted that Shenzhen is China's fourth largest city in terms of economic output after Shanghai, Beijing and Guangzhou.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Raffles City Shenzhen: It will have a Grade A office tower, a mall and a hotel or serviced residence
CapitaLand plans 6th China Raffles City project in Shenzhen
Completion of the mixed development expected in phases from 2014
By KALPANA RASHIWALA
CAPITALAND continues to expand its Raffles City footprint in China. It yesterday announced plans for building a mixed development under this franchise in the southern Chinese city of Shenzhen, making it the group's sixth Raffles City project in China and eighth internationally.
The property giant has a Raffles City property each in Singapore and Bahrain.
CapitaLand will build Raffles City Shenzhen - comprising a Grade A office tower, a mall and a hotel or serviced residence component - on a 578,291 sq ft site at the junction of Nan Hai Avenue and Chuang Ye Road, within the Nanshan commercial district of Shenzhen. The 50-year leasehold plot was acquired in 2008.
In its announcement yesterday, CapitaLand said it will also develop on this same site for strata sale an office tower, residential apartments, small office home office (SoHo) units and shop space. The entire project - comprising Raffles City Shenzhen and the strata-sale component - will have about 2.56 million sq ft gross floor area (GFA) and involve project development cost (inclusive of land and construction cost) of about six billion yuan (S$1.25 billion). Planning and development works for the entire project are underway and the project is slated for completion in phases from 2014.
The Raffles City portion, which is being designed by international architectural and design firm Benoy, will have GFA of about 1.37 million sq ft and the strata-sale portion, about 1.2 million sq ft.
CapitaLand is the major shareholder and lead development manager with a 58.3 per cent stake in the entire project. The remaining stake is held by other parties unrelated to CapitaLand.
Market watchers expect CapitaLand to later pump Raffles City Shenzhen into its Raffles City China Fund, which currently holds the five other Raffles City projects in China - in Shanghai, Beijing, Chengdu, Hangzhou and Ningbo. Last month, CapitaLand announced the fund has raised an additional US$180 million in committed capital, taking the fund's capital to US$1.18 billion. It also said that future closings could further boost the fund size to US$1.5 billion. At the same time, CapitaLand announced the injection of Raffles City Ningbo into the fund. This development is slated for completion by 2012. CapitaLand effectively owns 45.6 per cent of the fund.
'Our businesses in China continue to do well,' noted Liew Mun Leong, president and CEO of CapitaLand Group in yesterday's release. In Beijing, the group released over 40 residential units at its 313-unit La Capitale condo in Dongcheng District in the middle of last month and to date, half have been sold at an average price of 40,000 yuan per square metre.
CapitaMalls Asia is slated to open another five shopping malls across China this year, in addition to Anyang Mall in Henan, which opened in Q1 this year.
'Ascott, CapitaLand's serviced residence business unit, has opened three properties in Beijing, Shanghai and Chengdu this year and another four properties with over 1,000 units will open in 2010,' Mr Liew added.
CapitaLand China Holdings CEO Jason Leow noted that Shenzhen is China's fourth largest city in terms of economic output after Shanghai, Beijing and Guangzhou.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Raffles City Shenzhen: It will have a Grade A office tower, a mall and a hotel or serviced residence
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