May 27, 2010
Jalan Kayu businesses facing closure
Despite 2 years of notice, tenants say it's hard to relocate
By Jessica Lim
SEVERAL businesses at Jalan Kayu are caught in a bind, partly of their own making: Their leases are due to expire at the end of the year, and they are having poor luck looking for new sites.
The 18 tenants at Seletar West Farmway 2, 4, 5, 6 and 7 - 16 plant nurseries, a kindergarten and a halfway house - were told as early as two years ago that they would have to go.
But they could relocate to only Government-approved locations, and most have had a hard time finding alternative sites.
The Straits Times understands that only two have managed to set up shop elsewhere. The others are still looking, but most say they are resigned to closing down if their searches prove futile.
The 20ha plot - roughly the size of 13 football fields - has been slated for new roads and industrial development.
When contacted, the Singapore Land Authority (SLA) said it had given the tenants ample notice. It added that tenants have been told several times to move. But the affected businesses countered that they have tried, but have been unsuccessful in their searches for new locations.
The nurseries, especially, said their businesses require large tracts of land of more than a hectare in size. The tenants also said cost was another factor. The going rates for sites up for tender were much more costly - about 20 times higher, they said.
'We need space and approved land. This makes it really difficult to find a new location,' said Mr Patrick Tan, who manages a 1.2ha nursery owned by Far East Orchids. 'I am searching like crazy, but there is nowhere to go.'
The 48-year-old currently pays $2,000 a month in rent. He said he had considered a 3ha plot of land in Queenstown that the Government put up for tender recently. 'But after calculations, I realised there was no way I could afford the $35,000 rental per month,' he said, adding that he is unsure of his next move.
The owner of Yee Peng Orchid Nursery Ho Wai Ron, 50, has decided what to do: He will give up his 26-year-old business.
'Land is so scarce here and our leases keep expiring and we have to move again and again,' said Mr Ho, who said the company has moved four times so far. 'It is too disruptive.'
The SLA said it is working closely with other government agencies on the possibility of a further extension.
'But tenants are aware that they will have to move if this is not possible,' said its spokesman.
limjess@sph.com.sg
Thursday, May 27, 2010
ST : Orang Asli tribe wins $2.7m in 15-year land case
May 27, 2010
Orang Asli tribe wins $2.7m in 15-year land case
KUALA LUMPUR: In a landmark settlement, members of an indigenous tribe in Malaysia have won RM6.5 million (S$2.7 million) from highway authorities for forcibly taking away their ancestral land for development, a rights activist said yesterday.
The settlement ended a 15-year legal battle for the Temuan tribe and could bolster more than 200 other land-rights cases pending in court, said Mr Colin Nicholas, a coordinator of the Centre for Orang Asli Concerns.
The Temuan are among 18 ethnic tribes collectively known as Orang Asli, which means 'original people' in the Malay language. Many of the tribespeople live in, or near, the rainforest of Peninsular Malaysia, where they mainly grow crops and hunt.
Mr Nicholas said the settlement was recorded in the Federal Court, the country's top court, after the Malaysian Highway Authority, the federal government and the contractor withdrew their appeal and agreed to compensate some 26 Temuan families.
'It is a landmark settlement that recognised that the Orang Asli have native-title rights to their traditional land,' he said. Land rights are a key concern for Malaysia's indigenous people, many of whom have been pushed off land without compensation.
The highway authorities and government officials could not be reached for comment.
The Temuan families filed a suit after authorities forcibly acquired 15.6ha of land in central Selangor state in 1995 to construct a highway to the Kuala Lumpur International Airport without paying any compensation. The High Court ruled in 2002 that the Orang Asli enjoyed native-title rights and should be compensated. The verdict was upheld by the Court of Appeal in 2005 but the defendants appealed to the Federal Court.
Mr Nicholas said the deadlock was broken in April last year after the opposition-led Selangor government withdrew from the suit in line with its promise to recognise the Orang Asli land rights.
The withdrawal placed the other defendants in a difficult position as their argument was based on the fact that the state owned the land, he said.
ASSOCIATED PRESS
Orang Asli tribe wins $2.7m in 15-year land case
KUALA LUMPUR: In a landmark settlement, members of an indigenous tribe in Malaysia have won RM6.5 million (S$2.7 million) from highway authorities for forcibly taking away their ancestral land for development, a rights activist said yesterday.
The settlement ended a 15-year legal battle for the Temuan tribe and could bolster more than 200 other land-rights cases pending in court, said Mr Colin Nicholas, a coordinator of the Centre for Orang Asli Concerns.
The Temuan are among 18 ethnic tribes collectively known as Orang Asli, which means 'original people' in the Malay language. Many of the tribespeople live in, or near, the rainforest of Peninsular Malaysia, where they mainly grow crops and hunt.
Mr Nicholas said the settlement was recorded in the Federal Court, the country's top court, after the Malaysian Highway Authority, the federal government and the contractor withdrew their appeal and agreed to compensate some 26 Temuan families.
'It is a landmark settlement that recognised that the Orang Asli have native-title rights to their traditional land,' he said. Land rights are a key concern for Malaysia's indigenous people, many of whom have been pushed off land without compensation.
The highway authorities and government officials could not be reached for comment.
The Temuan families filed a suit after authorities forcibly acquired 15.6ha of land in central Selangor state in 1995 to construct a highway to the Kuala Lumpur International Airport without paying any compensation. The High Court ruled in 2002 that the Orang Asli enjoyed native-title rights and should be compensated. The verdict was upheld by the Court of Appeal in 2005 but the defendants appealed to the Federal Court.
Mr Nicholas said the deadlock was broken in April last year after the opposition-led Selangor government withdrew from the suit in line with its promise to recognise the Orang Asli land rights.
The withdrawal placed the other defendants in a difficult position as their argument was based on the fact that the state owned the land, he said.
ASSOCIATED PRESS
ST : Singapore keeps ranking as most livable Asian city
May 27, 2010
Singapore keeps ranking as most livable Asian city
SINGAPORE retained its ranking as the Asian city with the best quality of life, while Hong Kong lags behind rival financial hubs as it struggles with air pollution, according to a survey by Mercer Consulting.
Singapore ranks 28th among 221 cities, Tokyo is 40th and Hong Kong is placed 71st, the list shows. Hong Kong also trails behind New York City (No. 49), and smaller Japanese cities such as Kobe and Yokohama (tied for No. 41), Osaka (No. 51) and Nagoya (No. 57), according to the list.
The cities are rated on 10 factors including infrastructure, political and social environment, and access to medical care. Hong Kong scored poorly on health concerns, said Ms Cathy Loose, a Tokyo- based Mercer officer who helped compile the list.
'The government hasn't done very much to introduce green measures or reduce pollution,' Ms Loose said in an interview. The list serves as a compensation guide for expatriate relocation.
Hong Kong's score of about 94 points is little changed, which leaves it 5 points above the level at which Mercer says hardship allowances should be paid to workers who relocate. For cities including Beijing and Mumbai, a 10 per cent allowance is suggested, while an allowance of up to 28 per cent is suggested for Phnom Penh.
Hong Kong's air pollution was its worst on record during the past two quarters, sparking regular government health warnings. To address the problem, the government introduced a Bill last month proposing a ban on idling vehicle engines, among other measures.
Said HK Environmental Protection Department spokesman Eva Wong, in an e-mailed response to questions from Bloomberg: 'To tackle local emissions, we have been implementing very stringent control measures which are equivalent to those required by other advanced countries.'
The government is working with local bus companies and neighbouring cities in southern China to curb air pollution, and is investing HK$300 million (S$54.5 million) to develop low-carbon transport technology to cut roadside emissions, she said.
Singapore lags behind Hong Kong only on measurements of personal freedom and media censorship, said Ms Loose. Mercer is a unit of Marsh and McLennan.
In a Mercer statement, Ms Loose said: 'In addition to quality of living, this year's ranking also identifies the cities with the best eco-ranking based on water availability and drinkability, waste removal, quality of sewerage systems, air pollution and traffic congestion.'
For Asia, Kobe (No. 9) came out on top in eco city ranking, followed by Singapore (No. 22), while Dhaka (No. 220) ranked the lowest, she added.
Hong Kong's effort to cut pollution and protect the environment trails behind that of Havana and ranks just above Damascus, the list shows. Overall, Vienna retains the top spot as the world's best city to live in.
BLOOMBERG
Singapore keeps ranking as most livable Asian city
SINGAPORE retained its ranking as the Asian city with the best quality of life, while Hong Kong lags behind rival financial hubs as it struggles with air pollution, according to a survey by Mercer Consulting.
Singapore ranks 28th among 221 cities, Tokyo is 40th and Hong Kong is placed 71st, the list shows. Hong Kong also trails behind New York City (No. 49), and smaller Japanese cities such as Kobe and Yokohama (tied for No. 41), Osaka (No. 51) and Nagoya (No. 57), according to the list.
The cities are rated on 10 factors including infrastructure, political and social environment, and access to medical care. Hong Kong scored poorly on health concerns, said Ms Cathy Loose, a Tokyo- based Mercer officer who helped compile the list.
'The government hasn't done very much to introduce green measures or reduce pollution,' Ms Loose said in an interview. The list serves as a compensation guide for expatriate relocation.
Hong Kong's score of about 94 points is little changed, which leaves it 5 points above the level at which Mercer says hardship allowances should be paid to workers who relocate. For cities including Beijing and Mumbai, a 10 per cent allowance is suggested, while an allowance of up to 28 per cent is suggested for Phnom Penh.
Hong Kong's air pollution was its worst on record during the past two quarters, sparking regular government health warnings. To address the problem, the government introduced a Bill last month proposing a ban on idling vehicle engines, among other measures.
Said HK Environmental Protection Department spokesman Eva Wong, in an e-mailed response to questions from Bloomberg: 'To tackle local emissions, we have been implementing very stringent control measures which are equivalent to those required by other advanced countries.'
The government is working with local bus companies and neighbouring cities in southern China to curb air pollution, and is investing HK$300 million (S$54.5 million) to develop low-carbon transport technology to cut roadside emissions, she said.
Singapore lags behind Hong Kong only on measurements of personal freedom and media censorship, said Ms Loose. Mercer is a unit of Marsh and McLennan.
In a Mercer statement, Ms Loose said: 'In addition to quality of living, this year's ranking also identifies the cities with the best eco-ranking based on water availability and drinkability, waste removal, quality of sewerage systems, air pollution and traffic congestion.'
For Asia, Kobe (No. 9) came out on top in eco city ranking, followed by Singapore (No. 22), while Dhaka (No. 220) ranked the lowest, she added.
Hong Kong's effort to cut pollution and protect the environment trails behind that of Havana and ranks just above Damascus, the list shows. Overall, Vienna retains the top spot as the world's best city to live in.
BLOOMBERG
ST : Beijing acts on forced home demolitions
May 27, 2010
LAND TROUBLES
Beijing acts on forced home demolitions
Local governments must heed 'reasonable demands' of residents
BEIJING: China's Cabinet has issued an urgent notice to local governments, urging them to set up and implement new compensation standards for land acquisition before July.
The move follows a string of violent confrontations triggered by forced evictions, some resulting in the deaths of protesting residents.
Local governments will be required to pay heed to 'reasonable' demands of people whose homes are to be pulled down, the official Xinhua news agency's Outlook magazine reported on Monday.
Officials responsible for 'vicious incidents' caused by demolitions or land requisition will face penalties, the document from the State Council, or Chinese Cabinet, said.
According to the document, local governments that have already issued compensation standards for home demolition should strictly follow the rules. Those which have yet to issue the standards should do so by the end of next month. If the existing compensation standards are considered low, local governments are required to update the rules as soon as possible.
The ministries of land and resources and supervision on Tuesday published a list of 16 city governments that had occupied 40,666ha of land without obtaining proper certification, the Shanghai Daily reported yesterday.
A total of 1,932 people have been referred to prosecutors over such matters.
Illegal demolitions have made headlines frequently. In the latest case, the local government of a poverty-stricken county in north China's Hebei province pulled down houses of more than 1,000 families to accomplish what it called a 'county renovation plan', state broadcaster CCTV said on Monday.
Officials at the Guangping county, in a bid to win a good appraisal from the higher authorities, drafted the renovation plan early this year, including removing old houses, building 10 major streets, increasing green areas by one million sq m, and constructing six scenic spots.
The Guangping government received 130 million yuan (S$27 million) in revenue, while the cost of the renovation plan is estimated at two billion yuan, CCTV said.
Houses spread over more than 330,000 sq m, belonging to 1,000 urban and rural households, were demolished in 10 days in late March. No compensation contracts for land requisition or any agreements for resettlement were signed.
Local residents said only some of them had received demolition notices from the government, while others did not receive any notice or document until their houses were torn down, CCTV reported.
Most of the people received compensations of 300 to 400 yuan per sq m for their properties, when the average price for local residential housing has reached 1,500 yuan per sq m.
Ms Li Yunde, a local farmer, said the county government tore down her five-room house and confiscated her 2,000 sq m farmland.
Compensated with only 89,000 yuan, Ms Li and her husband are living in a 10 sq m tent on the ruins of their home. She said the money was not enough for buying another house.
Mr Wang Weiyu, an official with the county government, told CCTV that the county will build several hundred apartments for relocation purposes, and the price will not surpass 900 yuan per sq m. But it is not known when construction will start.
CHINA DAILY/ASIA NEWS NETWORK
Farmer Xiang Wenjiang in front of his house amid newly constructed residential buildings in Gushi, Henan province, in March. The local authorities have tried to evict him, but he is refusing to move until he is properly compensated. -- PHOTO: REUTERS
LAND TROUBLES
Beijing acts on forced home demolitions
Local governments must heed 'reasonable demands' of residents
BEIJING: China's Cabinet has issued an urgent notice to local governments, urging them to set up and implement new compensation standards for land acquisition before July.
The move follows a string of violent confrontations triggered by forced evictions, some resulting in the deaths of protesting residents.
Local governments will be required to pay heed to 'reasonable' demands of people whose homes are to be pulled down, the official Xinhua news agency's Outlook magazine reported on Monday.
Officials responsible for 'vicious incidents' caused by demolitions or land requisition will face penalties, the document from the State Council, or Chinese Cabinet, said.
According to the document, local governments that have already issued compensation standards for home demolition should strictly follow the rules. Those which have yet to issue the standards should do so by the end of next month. If the existing compensation standards are considered low, local governments are required to update the rules as soon as possible.
The ministries of land and resources and supervision on Tuesday published a list of 16 city governments that had occupied 40,666ha of land without obtaining proper certification, the Shanghai Daily reported yesterday.
A total of 1,932 people have been referred to prosecutors over such matters.
Illegal demolitions have made headlines frequently. In the latest case, the local government of a poverty-stricken county in north China's Hebei province pulled down houses of more than 1,000 families to accomplish what it called a 'county renovation plan', state broadcaster CCTV said on Monday.
Officials at the Guangping county, in a bid to win a good appraisal from the higher authorities, drafted the renovation plan early this year, including removing old houses, building 10 major streets, increasing green areas by one million sq m, and constructing six scenic spots.
The Guangping government received 130 million yuan (S$27 million) in revenue, while the cost of the renovation plan is estimated at two billion yuan, CCTV said.
Houses spread over more than 330,000 sq m, belonging to 1,000 urban and rural households, were demolished in 10 days in late March. No compensation contracts for land requisition or any agreements for resettlement were signed.
Local residents said only some of them had received demolition notices from the government, while others did not receive any notice or document until their houses were torn down, CCTV reported.
Most of the people received compensations of 300 to 400 yuan per sq m for their properties, when the average price for local residential housing has reached 1,500 yuan per sq m.
Ms Li Yunde, a local farmer, said the county government tore down her five-room house and confiscated her 2,000 sq m farmland.
Compensated with only 89,000 yuan, Ms Li and her husband are living in a 10 sq m tent on the ruins of their home. She said the money was not enough for buying another house.
Mr Wang Weiyu, an official with the county government, told CCTV that the county will build several hundred apartments for relocation purposes, and the price will not surpass 900 yuan per sq m. But it is not known when construction will start.
CHINA DAILY/ASIA NEWS NETWORK
Farmer Xiang Wenjiang in front of his house amid newly constructed residential buildings in Gushi, Henan province, in March. The local authorities have tried to evict him, but he is refusing to move until he is properly compensated. -- PHOTO: REUTERS
BT : Committed to the green cause
Business Times - 27 May 2010
Committed to the green cause
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. CHAN YUPING reports
A COMMITMENT to architecture and engineering that promote sustainability is at the forefront of RSP Architects Planners & Engineers' business. And the company has been recognised for this with six BCA Green Mark awards this year, including the Platinum awards for Woh Hup Building and Six Battery Road, and GoldPlus awards for the Caterpillar Remanufacturing facility, the Interlace and Farrer Court.
Winning these high-level awards was no easy feat. 'It's an integrated process,' says RSP director Vivien Heng. 'All disciplines have to work towards the common goal of squeezing out every last bit of energy savings.'
RSP differentiates itself from other companies by offering a one-stop shop for services in architecture, city planning, urban design, civil and structural engineering, mechanical and electrical engineering and interior design. This multi-disciplinary approach is the key driver of the company's success, alongside a commitment to provide top-quality solutions at every step of the value chain.
Being green is an indispensable part of RSP's mission to maintain the highest professional standards, says managing director Lee Kut Cheung.
The collective effort between RSP and Caterpillar SARL Singapore to design Caterpillar's remanufacturing facility here was catalysed by a mutual conviction to being green - right down to the nuts and bolts.
Recycled containers were used as temporary offices on site. A more environment- friendly concrete aggregate with 53 per cent recycled content was used to build pre-cast drains, kerbs and draw pits.
The remanufacturing concept testifies to Caterpillar's green commitment. It involves returning end-of-life products to their core condition, then re-using about 60 per cent of the original parts. This helps keep non-renewable resources in circulation for multiple lifetimes.
'The integrative solution-finding and collaborative approach adopted by all parties and good level of detail in the design helped us achieve a building that is highly functional, sustainable and cost effective,' says Christopher Healy, engineering manager of Caterpillar's remanufacturing division in Singapore.
NeWater meets 80 per cent of the facility's water needs, while precision controls in its air-conditioning, lighting and ventilation systems produce sizeable electricity savings. The estimated energy savings from green features is more than 1.7 million kilowatt hours per year, and water savings are about 118 million litres a year.
'Green design has not only reduced operating costs by reducing energy, water and material use, it has also facilitated good and safe operational maintainability, which is important to Caterpillar as the building's occupier,' says Mr Healy.
Being client-oriented is undoubtedly one of RSP's strengths. 'As each project comes with its own needs, we approach each design to satisfy the requirements for that project,' says managing director Mr Lee. 'We don't impose a particular style prematurely on a project. We work with clients and take heavy responsibility for delivery throughout the process.'
RSP deploys specialised talent at each point from design to completion to maximise various skill sets, while ensuring continuity through the supervision and counsel of senior management staff.
RSP has more than 50 years of experience and its work has included a wide range of projects, from US$5 million to US$310 million in value. It is well represented in every sector, such as commercial, industrial, institutional, recreational and residential, with major projects including ION Orchard, Republic Plaza, Admore Park, Wheelock Place, LaSalle College of the Arts and the Clarke Quay Redevelopment.
Internationalisation is also a priority for the company. It has 12 offices worldwide, with India being the pride of its overseas ventures. RSP Design Consultants (India) has grown since 1996 to encompass more than 300 staff and five offices - in Bangalore, Hyderabad, Mumbai, Chennai and Gurgaon.
RSP has consistently won Platinum, GoldPlus and Gold BCA Green Mark awards since the scheme was launched in 2005. A milestone for the company was a Platinum Green Mark award in 2007 for its work on the Xilinx Asia-Pacific headquarters. Key features of the headquarters include energy-saving lighting computerised to function according to the light flow of the building, and landscape irrigation using recycled condensate water.
'In addition to the design of a building, there must be trained facilities management to ensure the building can be operated in a sustainable way,' says Mr Lee, who points out that every project must be scrutinised with truly green intent before tangible benefits can be reaped. This green intent should permeate throughout the process, from design to implementation and subsequent operations.
Ms Heng says people should not underestimate the power of passive design. 'Once a building is put in the right orientation, with the right heat buffers, air-conditioning is not needed to power it to the same extent any more,' she says. 'Many 'free' features such as this only come with a firm grasp of renewable energy.'
Being green also makes economic sense. In the long run, energy and water savings offset the upfront costs of installing green features. And more often than not, these cost savings are sustained.
Caterpillar's Mr Healy says: 'The timing of our project here, in the midst of a major recession, drove us all to a building design that eliminates unnecessary costs and maximises efficiency. The team led by RSP has a good understanding of our complex project requirements and our commitment to sustainability.'
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. 'Green isn't something new,' says Mr Lee. 'As architects, we have a fundamental responsibility to respond to the environment and uphold the highest professional standards. Being green is naturally part and parcel of our design process.'
With 10 Platinum and GoldPlus BCA Green Mark awards under its belt, RSP hopes to continue to play a major role in promoting sustainability within the architectural and engineering industries. Going forward, it also hopes to remain up-to-date with new technology in the market to enhance its efforts in sustainable architecture.
Noting that one of the world's largest solar panel manufacturing complexes is being built in Singapore by Norwegian company Renewable Energy Corporation, and is set for completion soon, Mr Lee says great advances in sustainability can be expected from this little red dot.
'Singapore plays a small part in manufacturing and consumption relative to other countries, but the fact that we are taking it nonetheless as seriously as other countries speaks well of us as a global citizen,' he says.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Responsible planning: RSP Architects won the GoldPlus award for the Caterpillar facility, where green design helped lower operating costs by reducing energy, water and material use
Xilinx Asia-Pacific HQ: Its energy-saving lighting is computerised to function according to the light flow of the building
Committed to the green cause
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. CHAN YUPING reports
A COMMITMENT to architecture and engineering that promote sustainability is at the forefront of RSP Architects Planners & Engineers' business. And the company has been recognised for this with six BCA Green Mark awards this year, including the Platinum awards for Woh Hup Building and Six Battery Road, and GoldPlus awards for the Caterpillar Remanufacturing facility, the Interlace and Farrer Court.
Winning these high-level awards was no easy feat. 'It's an integrated process,' says RSP director Vivien Heng. 'All disciplines have to work towards the common goal of squeezing out every last bit of energy savings.'
RSP differentiates itself from other companies by offering a one-stop shop for services in architecture, city planning, urban design, civil and structural engineering, mechanical and electrical engineering and interior design. This multi-disciplinary approach is the key driver of the company's success, alongside a commitment to provide top-quality solutions at every step of the value chain.
Being green is an indispensable part of RSP's mission to maintain the highest professional standards, says managing director Lee Kut Cheung.
The collective effort between RSP and Caterpillar SARL Singapore to design Caterpillar's remanufacturing facility here was catalysed by a mutual conviction to being green - right down to the nuts and bolts.
Recycled containers were used as temporary offices on site. A more environment- friendly concrete aggregate with 53 per cent recycled content was used to build pre-cast drains, kerbs and draw pits.
The remanufacturing concept testifies to Caterpillar's green commitment. It involves returning end-of-life products to their core condition, then re-using about 60 per cent of the original parts. This helps keep non-renewable resources in circulation for multiple lifetimes.
'The integrative solution-finding and collaborative approach adopted by all parties and good level of detail in the design helped us achieve a building that is highly functional, sustainable and cost effective,' says Christopher Healy, engineering manager of Caterpillar's remanufacturing division in Singapore.
NeWater meets 80 per cent of the facility's water needs, while precision controls in its air-conditioning, lighting and ventilation systems produce sizeable electricity savings. The estimated energy savings from green features is more than 1.7 million kilowatt hours per year, and water savings are about 118 million litres a year.
'Green design has not only reduced operating costs by reducing energy, water and material use, it has also facilitated good and safe operational maintainability, which is important to Caterpillar as the building's occupier,' says Mr Healy.
Being client-oriented is undoubtedly one of RSP's strengths. 'As each project comes with its own needs, we approach each design to satisfy the requirements for that project,' says managing director Mr Lee. 'We don't impose a particular style prematurely on a project. We work with clients and take heavy responsibility for delivery throughout the process.'
RSP deploys specialised talent at each point from design to completion to maximise various skill sets, while ensuring continuity through the supervision and counsel of senior management staff.
RSP has more than 50 years of experience and its work has included a wide range of projects, from US$5 million to US$310 million in value. It is well represented in every sector, such as commercial, industrial, institutional, recreational and residential, with major projects including ION Orchard, Republic Plaza, Admore Park, Wheelock Place, LaSalle College of the Arts and the Clarke Quay Redevelopment.
Internationalisation is also a priority for the company. It has 12 offices worldwide, with India being the pride of its overseas ventures. RSP Design Consultants (India) has grown since 1996 to encompass more than 300 staff and five offices - in Bangalore, Hyderabad, Mumbai, Chennai and Gurgaon.
RSP has consistently won Platinum, GoldPlus and Gold BCA Green Mark awards since the scheme was launched in 2005. A milestone for the company was a Platinum Green Mark award in 2007 for its work on the Xilinx Asia-Pacific headquarters. Key features of the headquarters include energy-saving lighting computerised to function according to the light flow of the building, and landscape irrigation using recycled condensate water.
'In addition to the design of a building, there must be trained facilities management to ensure the building can be operated in a sustainable way,' says Mr Lee, who points out that every project must be scrutinised with truly green intent before tangible benefits can be reaped. This green intent should permeate throughout the process, from design to implementation and subsequent operations.
Ms Heng says people should not underestimate the power of passive design. 'Once a building is put in the right orientation, with the right heat buffers, air-conditioning is not needed to power it to the same extent any more,' she says. 'Many 'free' features such as this only come with a firm grasp of renewable energy.'
Being green also makes economic sense. In the long run, energy and water savings offset the upfront costs of installing green features. And more often than not, these cost savings are sustained.
Caterpillar's Mr Healy says: 'The timing of our project here, in the midst of a major recession, drove us all to a building design that eliminates unnecessary costs and maximises efficiency. The team led by RSP has a good understanding of our complex project requirements and our commitment to sustainability.'
Sustainability is an inherent feature of RSP's work as it strives for architectural excellence. 'Green isn't something new,' says Mr Lee. 'As architects, we have a fundamental responsibility to respond to the environment and uphold the highest professional standards. Being green is naturally part and parcel of our design process.'
With 10 Platinum and GoldPlus BCA Green Mark awards under its belt, RSP hopes to continue to play a major role in promoting sustainability within the architectural and engineering industries. Going forward, it also hopes to remain up-to-date with new technology in the market to enhance its efforts in sustainable architecture.
Noting that one of the world's largest solar panel manufacturing complexes is being built in Singapore by Norwegian company Renewable Energy Corporation, and is set for completion soon, Mr Lee says great advances in sustainability can be expected from this little red dot.
'Singapore plays a small part in manufacturing and consumption relative to other countries, but the fact that we are taking it nonetheless as seriously as other countries speaks well of us as a global citizen,' he says.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Responsible planning: RSP Architects won the GoldPlus award for the Caterpillar facility, where green design helped lower operating costs by reducing energy, water and material use
Xilinx Asia-Pacific HQ: Its energy-saving lighting is computerised to function according to the light flow of the building
BT : Going green makes business sense
Business Times - 27 May 2010
Going green makes business sense
Legislation, occupier preferences and stakeholder demands are pushing more firms to build sustainable real estate. By UMA SHANKARI
THE business case for developing sustainable real estate is just as strong - if not even more compelling - than the environmental argument, analysts say. Across the Asia-Pacific region, occupier preferences, stakeholder demands and government regulations have evolved, leading to a situation where it makes more business sense for developers to build sustainable real estate. The economic benefits also make the business case for going green more apparent now.
Perhaps the most compelling push comes from legislation to accelerate the use of green building practices, market watchers said.
'Legislation has played a significant shift in the way developers are 'greening' their properties,' said Eddie Wong, general manager of City Developments' projects division. City Developments is a pioneer of green building in Singapore. 'For instance, the Building and Construction Authority's (BCA) Green Mark was launched in 2005 as a voluntary initiative. It was made mandatory for new developments and buildings to be retrofitted in April 2008. This is a clear signal from the government that developers must develop properties with sustainability in mind. The government has also encouraged the adoption of green technology through various incentives and grants.'
The official push seems to have paid off. This year, BCA handed out a whopping 159 awards at its annual BCA Awards, which the industry regulator says is an indicator of the construction industry's growing commitment to a greater contribution to the economy and the built environment.
Other countries are also going down the legislative route. China said in June last year that developers participating in renewal projects will be required to save energy and water, use environmentally friendly building materials, increase green areas and reduce construction waste, among other things. Hong Kong also said in October last year that legislation would be introduced to make it mandatory for all new government buildings to be energy efficient.
But while such policies and incentives have the impact of raising awareness and encouraging adoption of green buildings and sustainability, the general consensus from the private sector in Asia is that more financial incentives and other financially-oriented assistance will be more effective, said Richie Lee, executive director for energy and sustainability with CB Richard Ellis (CBRE) Asia. He also suggested that there should be penalties against non-compliance. This can help to move things along, he said.
Other than legislation, occupier preferences and stakeholder demands are also pushing more companies to look into developing or owning sustainable real estate. 'Large MNCs have been observed to demand green features when looking for office space,' noted Dr Lee.
A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle late last year showed that corporate real estate executives are more willing to invest in the sustainability of the space they own in spite of economic pressures.
The survey found that 89 per cent of these executives across the globe consider sustainability criteria in their location decisions. Green building certifications are always considered by 41 per cent and energy labels by 46 per cent in administering their portfolio.
More stakeholders are also now beginning to take a more holistic approach to doing business, which means that they factor in the social and environment effects of their business decisions. This means that developers and other corporations with a 'green' portfolio will draw more shareholder interest.
'Many global investors have become more vigorous in assessing businesses based on the triple bottom line - economic, environmental and social. Forward-looking companies, in particular those targeting international investors, will have to respond to the call for increased corporate social responsibility and disclosure,' noted Mr Wong.
But the main drawback to developing sustainable real estate appears to be the higher cost. Developers and analysts say that building a green building can cost anywhere from 2-5 per cent more.
Right now, the cost of implementing green technologies in buildings is still much higher than traditional building infrastructure where fossil fuel or natural gas generated energy is used. Energy savings alone are currently not able to compensate for the cost of green infrastructure such as photovoltaic panels or wind generators. In Singapore, the incentive schemes introduced by the government have helped to defray some of these costs so far.
In addition, developers are also unlikely to recoup the higher cost from occupiers, who are still resistant to paying more in rents.
CoreNet Global and Jones Lang LaSalle's survey last year found that respondents remain reluctant to pay premium rent for leased 'green' space without some form of payback. Only 37 per cent would consider paying a premium of one per cent to 10 per cent. Another 34 per cent expect to pay the same while 8 per cent expect to even pay less for sustainable space. In addition, 21 per cent of respondents indicated that they would only be willing to pay a premium if it was offset by lower operating costs.
Being in a green building is 'nice to have', said Chua Chor Hoon, head of DTZ's South-east Asia research team. But it all boils down to dollars and cents for most end-users - especially local ones - when considering space alternatives, she said. 'To justify the higher cost in the long run, there must be benefits to the end-users and landlords such that the maintenance costs are lower which will then compensate for the higher fixed rent.'
'Hence, developers should consider adopting green features that will make a significant difference to operating costs or result in savings or useful benefits to end-users, rather than introduce green features for the sake of qualifying for the Green Mark awards.'
Costs can be reduced with proper planning and management at every stage of the design process, industry players said. They are also hopeful that in time, with advances in technology, the cost of implementing green technologies in buildings will fall.
'There is still the general perception that green buildings are more costly than non-green buildings. In actual fact, it all depends on the designers, engineers, architects and builders,' CBRE's Dr Lee said. 'Some green buildings cost significantly more to build than others, just like there are more expensive and cheaper non-green buildings.'
Capable designers, engineers, architects and builders are now able to come up with green buildings that are not that much more expensive than a comparable non-green building, he said. And about five years from now, it would be possible to come up with a green building that could even cost less than a non-green building, Dr Lee added.
Lee Eng Lock, Trane's technical energy director for Asia energy services, said that smart development almost always costs less unless money is squandered on 'sexy' items - such as solar photo voltaic (which typically have a 40-year payback) or expensive computer modelling (which does not reflect reality and only affects a small percentage of the energy usage). 'The solution lies in proper design which is tested and measured and proven, not in the ultra-expensive airy fairy technologies which take many decades to pay back, if ever,' he said.
Ms Chua also said that when more developers jump on board the 'green' wagon, there will be more economies of scale which will then reduce the cost of green features.
And while energy savings might not be able to offset the higher cost of building, developers and tenants can reap other financial benefits such as water savings and a possible increase in the property's valuation in the longer term. And there are other benefits such as an improved corporate reputation and better occupant health and comfort - which can also lead to long-term financial benefits.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reflection of society's concerns: Trane retrofitted The Galen Building (above) last year. It was the first existing industrial building to get a BCA Platinum Green Mark award
Going green makes business sense
Legislation, occupier preferences and stakeholder demands are pushing more firms to build sustainable real estate. By UMA SHANKARI
THE business case for developing sustainable real estate is just as strong - if not even more compelling - than the environmental argument, analysts say. Across the Asia-Pacific region, occupier preferences, stakeholder demands and government regulations have evolved, leading to a situation where it makes more business sense for developers to build sustainable real estate. The economic benefits also make the business case for going green more apparent now.
Perhaps the most compelling push comes from legislation to accelerate the use of green building practices, market watchers said.
'Legislation has played a significant shift in the way developers are 'greening' their properties,' said Eddie Wong, general manager of City Developments' projects division. City Developments is a pioneer of green building in Singapore. 'For instance, the Building and Construction Authority's (BCA) Green Mark was launched in 2005 as a voluntary initiative. It was made mandatory for new developments and buildings to be retrofitted in April 2008. This is a clear signal from the government that developers must develop properties with sustainability in mind. The government has also encouraged the adoption of green technology through various incentives and grants.'
The official push seems to have paid off. This year, BCA handed out a whopping 159 awards at its annual BCA Awards, which the industry regulator says is an indicator of the construction industry's growing commitment to a greater contribution to the economy and the built environment.
Other countries are also going down the legislative route. China said in June last year that developers participating in renewal projects will be required to save energy and water, use environmentally friendly building materials, increase green areas and reduce construction waste, among other things. Hong Kong also said in October last year that legislation would be introduced to make it mandatory for all new government buildings to be energy efficient.
But while such policies and incentives have the impact of raising awareness and encouraging adoption of green buildings and sustainability, the general consensus from the private sector in Asia is that more financial incentives and other financially-oriented assistance will be more effective, said Richie Lee, executive director for energy and sustainability with CB Richard Ellis (CBRE) Asia. He also suggested that there should be penalties against non-compliance. This can help to move things along, he said.
Other than legislation, occupier preferences and stakeholder demands are also pushing more companies to look into developing or owning sustainable real estate. 'Large MNCs have been observed to demand green features when looking for office space,' noted Dr Lee.
A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle late last year showed that corporate real estate executives are more willing to invest in the sustainability of the space they own in spite of economic pressures.
The survey found that 89 per cent of these executives across the globe consider sustainability criteria in their location decisions. Green building certifications are always considered by 41 per cent and energy labels by 46 per cent in administering their portfolio.
More stakeholders are also now beginning to take a more holistic approach to doing business, which means that they factor in the social and environment effects of their business decisions. This means that developers and other corporations with a 'green' portfolio will draw more shareholder interest.
'Many global investors have become more vigorous in assessing businesses based on the triple bottom line - economic, environmental and social. Forward-looking companies, in particular those targeting international investors, will have to respond to the call for increased corporate social responsibility and disclosure,' noted Mr Wong.
But the main drawback to developing sustainable real estate appears to be the higher cost. Developers and analysts say that building a green building can cost anywhere from 2-5 per cent more.
Right now, the cost of implementing green technologies in buildings is still much higher than traditional building infrastructure where fossil fuel or natural gas generated energy is used. Energy savings alone are currently not able to compensate for the cost of green infrastructure such as photovoltaic panels or wind generators. In Singapore, the incentive schemes introduced by the government have helped to defray some of these costs so far.
In addition, developers are also unlikely to recoup the higher cost from occupiers, who are still resistant to paying more in rents.
CoreNet Global and Jones Lang LaSalle's survey last year found that respondents remain reluctant to pay premium rent for leased 'green' space without some form of payback. Only 37 per cent would consider paying a premium of one per cent to 10 per cent. Another 34 per cent expect to pay the same while 8 per cent expect to even pay less for sustainable space. In addition, 21 per cent of respondents indicated that they would only be willing to pay a premium if it was offset by lower operating costs.
Being in a green building is 'nice to have', said Chua Chor Hoon, head of DTZ's South-east Asia research team. But it all boils down to dollars and cents for most end-users - especially local ones - when considering space alternatives, she said. 'To justify the higher cost in the long run, there must be benefits to the end-users and landlords such that the maintenance costs are lower which will then compensate for the higher fixed rent.'
'Hence, developers should consider adopting green features that will make a significant difference to operating costs or result in savings or useful benefits to end-users, rather than introduce green features for the sake of qualifying for the Green Mark awards.'
Costs can be reduced with proper planning and management at every stage of the design process, industry players said. They are also hopeful that in time, with advances in technology, the cost of implementing green technologies in buildings will fall.
'There is still the general perception that green buildings are more costly than non-green buildings. In actual fact, it all depends on the designers, engineers, architects and builders,' CBRE's Dr Lee said. 'Some green buildings cost significantly more to build than others, just like there are more expensive and cheaper non-green buildings.'
Capable designers, engineers, architects and builders are now able to come up with green buildings that are not that much more expensive than a comparable non-green building, he said. And about five years from now, it would be possible to come up with a green building that could even cost less than a non-green building, Dr Lee added.
Lee Eng Lock, Trane's technical energy director for Asia energy services, said that smart development almost always costs less unless money is squandered on 'sexy' items - such as solar photo voltaic (which typically have a 40-year payback) or expensive computer modelling (which does not reflect reality and only affects a small percentage of the energy usage). 'The solution lies in proper design which is tested and measured and proven, not in the ultra-expensive airy fairy technologies which take many decades to pay back, if ever,' he said.
Ms Chua also said that when more developers jump on board the 'green' wagon, there will be more economies of scale which will then reduce the cost of green features.
And while energy savings might not be able to offset the higher cost of building, developers and tenants can reap other financial benefits such as water savings and a possible increase in the property's valuation in the longer term. And there are other benefits such as an improved corporate reputation and better occupant health and comfort - which can also lead to long-term financial benefits.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reflection of society's concerns: Trane retrofitted The Galen Building (above) last year. It was the first existing industrial building to get a BCA Platinum Green Mark award
BT : Giving a push to the public and private sectors
Business Times - 27 May 2010
Giving a push to the public and private sectors
SOME 80 per cent of all buildings in Singapore have to be 'green' - that is, Green Mark-certified - by 2030, according to a new target set last year.
And to make sure that the private sector plays its part in helping to meet this goal, industry regulator Building and Construction Authority (BCA) has been working hard to promote sustainable design.
The agency's main thrusts revolve around getting more public sector buildings to be Green Mark-certified as well as encouraging private sector developers to aim for higher Green Mark levels.
BCA first introduced the Green Mark award in 2005 to rate the 'environmental friendliness' of buildings here. Depending on the overall assessment and points scored, a building is given a Green Mark Platinum, GoldPlus, Gold or Certified rating. Currently, there are more than 300 Green Mark buildings in Singapore.
A legislation requiring all new buildings and those undergoing major retrofitting works to achieve a minimum standard of environmental sustainability was then introduced in April 2008. This was part of BCA's first Green Building Masterplan, which also saw the introduction of a $20 million incentive scheme for developers of new buildings and a $50 million research fund to encourage greater adoption of green building technologies.
The sharp increase in the number of Green Mark buildings in 2007 was a testament to the success of the first Green Building Masterplan launched in 2006 - which placed emphasis on new buildings and those undergoing major retrofitting - BCA said.
Now, with the second Green Building Masterplan, BCA is pushing the public sector to take the lead. New public sector buildings and those undergoing major retrofitting works will be required to meet the highest Green Mark Platinum status - which will be at least 30 per cent more energy efficient than code-compliant buildings. Existing public sector buildings are also required to meet Green Mark GoldPlus Standards by 2020.
And incentives are in place to encourage the private sector to go for higher Green Mark levels. These include a $100 million incentive scheme for private building owners to retrofit existing buildings. BCA is also offering bonus gross floor area (GFA) allowances for new private buildings that attain higher Green Mark ratings. This has encouraged more developers to attain the higher tier Green Mark ratings of GoldPlus or Platinum awards for new projects, even though they have to pay the development charges applicable for the additional GFA.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Giving a push to the public and private sectors
SOME 80 per cent of all buildings in Singapore have to be 'green' - that is, Green Mark-certified - by 2030, according to a new target set last year.
And to make sure that the private sector plays its part in helping to meet this goal, industry regulator Building and Construction Authority (BCA) has been working hard to promote sustainable design.
The agency's main thrusts revolve around getting more public sector buildings to be Green Mark-certified as well as encouraging private sector developers to aim for higher Green Mark levels.
BCA first introduced the Green Mark award in 2005 to rate the 'environmental friendliness' of buildings here. Depending on the overall assessment and points scored, a building is given a Green Mark Platinum, GoldPlus, Gold or Certified rating. Currently, there are more than 300 Green Mark buildings in Singapore.
A legislation requiring all new buildings and those undergoing major retrofitting works to achieve a minimum standard of environmental sustainability was then introduced in April 2008. This was part of BCA's first Green Building Masterplan, which also saw the introduction of a $20 million incentive scheme for developers of new buildings and a $50 million research fund to encourage greater adoption of green building technologies.
The sharp increase in the number of Green Mark buildings in 2007 was a testament to the success of the first Green Building Masterplan launched in 2006 - which placed emphasis on new buildings and those undergoing major retrofitting - BCA said.
Now, with the second Green Building Masterplan, BCA is pushing the public sector to take the lead. New public sector buildings and those undergoing major retrofitting works will be required to meet the highest Green Mark Platinum status - which will be at least 30 per cent more energy efficient than code-compliant buildings. Existing public sector buildings are also required to meet Green Mark GoldPlus Standards by 2020.
And incentives are in place to encourage the private sector to go for higher Green Mark levels. These include a $100 million incentive scheme for private building owners to retrofit existing buildings. BCA is also offering bonus gross floor area (GFA) allowances for new private buildings that attain higher Green Mark ratings. This has encouraged more developers to attain the higher tier Green Mark ratings of GoldPlus or Platinum awards for new projects, even though they have to pay the development charges applicable for the additional GFA.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Making their mark on the environment
Business Times - 27 May 2010
Making their mark on the environment
Developers here find green technology and features increasingly attractive because of their cost-effectiveness, reports OLIVIA HO
THE push for sustainable buildings here is picking up steam, as industry stakeholders warm to the idea that it makes business sense to go green.
More and more buildings are qualifying for the Building and Construction Authority's (BCA) Green Mark award. This year saw BCA award 102 buildings Green Mark status - far above the 16 buildings recognised in 2006 by the then-fledgling award.
Launched in 2005, the Green Mark scheme evaluates buildings for their environmental impact and performance. Depending on the overall assessment and point scoring, buildings will be certified BCA Green Mark Platinum, GoldPlus, Gold or Certified, with Platinum being the top rating.
Certified Green Mark buildings must be re-assessed every three years to maintain their status.
Developers are finding the green wave increasingly attractive because of its cost-effectiveness. 'Reducing the life cycle or operating cost of buildings is seen as the prime business reason for developing a green building,' said a BCA spokesman.
Cost savings are derived from efficient use of key resources such as energy and water, leading to lower operation and maintenance costs. Intangible benefits, such as enhanced occupant productivity and health due to good indoor environmental quality, also make themselves felt in the long run.
However, an increasing demand for green buildings has given developers added impetus to go green. 'Clients - ranging from socially responsible multinational corporations to sophisticated individual consumers - are demanding to lease or purchase only green buildings and homes,' said the BCA spokesman.
Developers acknowledge that consumer demand is a key factor in sustaining the development of green buildings. Says Kwek Leng Joo, managing director of City Developments Ltd (CDL): 'Where there is greater demand, there will be increased commitment for the development of sustainable properties.'
To date, there are over 440 Green Mark buildings in Singapore. The improving response to the awards has led BCA to extend the scheme to other categories. For instance, it launched the Green Mark for Office Interior last year after it was approached by a number of international firms to develop such a category.
As one of the 21 Green Building rating systems recognised by the World Green Building Council (WGBC), the Green Mark scheme has also gained popularity in the region, as it is developed especially for the tropical climate. As at 2009, there are more than 70 Green Mark projects across the Asean region, China, India and the Middle East.
Despite the scheme's success so far, BCA is not letting up. It announced in March that it would be tightening standards for the Green Mark certification. For instance, the minimum energy efficiency standards that must be met before a new building can get certified will be raised by 10 per cent from today's standards.
BCA will also be upping the energy efficiency standards for other Green Mark levels. Currently, a building must achieve at least 25 per cent energy savings to qualify for GoldPlus, and at least 30 per cent to qualify for Platinum.
CDL is undaunted by the stricter standards. It has already garnered the largest number of Green Mark awards for a single developer. It has 40 Green Mark developments, of which 10 are Platinum. CDL said it would continue to raise the bar for the construction industry by achieving a minimum Green Mark Gold rating for all its new developments.
Among CDL's latest green achievements is the W Singapore Sentosa Cove, which this year became the first new hotel to be certified Green Mark Platinum. About 3.5 per cent of the hotel's construction cost was invested in the development of green innovations, which are expected to result in energy savings of over 3.3 million kilowatt hours (kWh) per year.
These innovations include the Heat Pump Templifier, which heats water more efficiently while simultaneously producing reusable chilled water as a by-product. This reduces the burden on the hotel's otherwise overloaded boilers and cooling towers, thus lowering electrical demands.
High-tech innovations aside, W Singapore Sentosa Cove also impressed Green Mark assessors with simple features such as sensors installed in the balcony doors of all guestrooms. The sensors automatically cut off the air-conditioning system if the doors are left open after a stipulated time period, thus reducing the amount of energy that guests may waste unconsciously.
Another Platinum-certified new building is the East Campus of United World College South-east Asia (UWCSEA East). Developed by JTC Corporation, the Tampines campus is designed to consume around 25 to 30 per cent less electricity than conventional buildings of similar size and function. Energy-saving features include a solar thermal system that uses the sun's heat to power the campus' air conditioning and heat its water.
Not only will the greening effort save UWCSEA East an estimated 3.08 million kWh per year, it also provided inspiration for the building's aesthetics. The campus' Education Block 1 sports a 'green shield' - greenery planted on the exterior walls of the building's corridor. Apart from reducing the temperature, the unusual façade is intended to make visitors feel like they are walking through a forest.
While green investment may be hefty, BCA advises companies that having clear green goals from day one will save them a great deal of both money and trouble, as effective collaboration between consultants and stakeholders at inception will produce a more cost-effective design.
Some developers feel that the benefits more than outweigh their expenditure in the long run. CDL, which typically invests between 2 per cent and 5 per cent of construction costs in green technology and features, estimates that it can save about $4 million in electricity annually from just the 10 buildings it got certified in 2009.
For CDL, a company's greatest difficulty in going green is not cost. 'The biggest challenge in sustaining green practices is the nurturing and integration of this conviction into a company's DNA,' says Mr Kwek.
'Building green development is more than just placing a couple of eco-friendly features within a property,' he says. 'The entire cycle must be aligned with environmental commitment.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Energy efficient: Platinum-certified UWCSEA East (above) is designed to consume 25-30 per cent less electricity than conventional buildings of similar size and function.
Green innovations at the WSingapore Sentosa Cove (above), also certified Platinum, are expected to result in energy savings of over 3.3 million kilowatt hours per year
Making their mark on the environment
Developers here find green technology and features increasingly attractive because of their cost-effectiveness, reports OLIVIA HO
THE push for sustainable buildings here is picking up steam, as industry stakeholders warm to the idea that it makes business sense to go green.
More and more buildings are qualifying for the Building and Construction Authority's (BCA) Green Mark award. This year saw BCA award 102 buildings Green Mark status - far above the 16 buildings recognised in 2006 by the then-fledgling award.
Launched in 2005, the Green Mark scheme evaluates buildings for their environmental impact and performance. Depending on the overall assessment and point scoring, buildings will be certified BCA Green Mark Platinum, GoldPlus, Gold or Certified, with Platinum being the top rating.
Certified Green Mark buildings must be re-assessed every three years to maintain their status.
Developers are finding the green wave increasingly attractive because of its cost-effectiveness. 'Reducing the life cycle or operating cost of buildings is seen as the prime business reason for developing a green building,' said a BCA spokesman.
Cost savings are derived from efficient use of key resources such as energy and water, leading to lower operation and maintenance costs. Intangible benefits, such as enhanced occupant productivity and health due to good indoor environmental quality, also make themselves felt in the long run.
However, an increasing demand for green buildings has given developers added impetus to go green. 'Clients - ranging from socially responsible multinational corporations to sophisticated individual consumers - are demanding to lease or purchase only green buildings and homes,' said the BCA spokesman.
Developers acknowledge that consumer demand is a key factor in sustaining the development of green buildings. Says Kwek Leng Joo, managing director of City Developments Ltd (CDL): 'Where there is greater demand, there will be increased commitment for the development of sustainable properties.'
To date, there are over 440 Green Mark buildings in Singapore. The improving response to the awards has led BCA to extend the scheme to other categories. For instance, it launched the Green Mark for Office Interior last year after it was approached by a number of international firms to develop such a category.
As one of the 21 Green Building rating systems recognised by the World Green Building Council (WGBC), the Green Mark scheme has also gained popularity in the region, as it is developed especially for the tropical climate. As at 2009, there are more than 70 Green Mark projects across the Asean region, China, India and the Middle East.
Despite the scheme's success so far, BCA is not letting up. It announced in March that it would be tightening standards for the Green Mark certification. For instance, the minimum energy efficiency standards that must be met before a new building can get certified will be raised by 10 per cent from today's standards.
BCA will also be upping the energy efficiency standards for other Green Mark levels. Currently, a building must achieve at least 25 per cent energy savings to qualify for GoldPlus, and at least 30 per cent to qualify for Platinum.
CDL is undaunted by the stricter standards. It has already garnered the largest number of Green Mark awards for a single developer. It has 40 Green Mark developments, of which 10 are Platinum. CDL said it would continue to raise the bar for the construction industry by achieving a minimum Green Mark Gold rating for all its new developments.
Among CDL's latest green achievements is the W Singapore Sentosa Cove, which this year became the first new hotel to be certified Green Mark Platinum. About 3.5 per cent of the hotel's construction cost was invested in the development of green innovations, which are expected to result in energy savings of over 3.3 million kilowatt hours (kWh) per year.
These innovations include the Heat Pump Templifier, which heats water more efficiently while simultaneously producing reusable chilled water as a by-product. This reduces the burden on the hotel's otherwise overloaded boilers and cooling towers, thus lowering electrical demands.
High-tech innovations aside, W Singapore Sentosa Cove also impressed Green Mark assessors with simple features such as sensors installed in the balcony doors of all guestrooms. The sensors automatically cut off the air-conditioning system if the doors are left open after a stipulated time period, thus reducing the amount of energy that guests may waste unconsciously.
Another Platinum-certified new building is the East Campus of United World College South-east Asia (UWCSEA East). Developed by JTC Corporation, the Tampines campus is designed to consume around 25 to 30 per cent less electricity than conventional buildings of similar size and function. Energy-saving features include a solar thermal system that uses the sun's heat to power the campus' air conditioning and heat its water.
Not only will the greening effort save UWCSEA East an estimated 3.08 million kWh per year, it also provided inspiration for the building's aesthetics. The campus' Education Block 1 sports a 'green shield' - greenery planted on the exterior walls of the building's corridor. Apart from reducing the temperature, the unusual façade is intended to make visitors feel like they are walking through a forest.
While green investment may be hefty, BCA advises companies that having clear green goals from day one will save them a great deal of both money and trouble, as effective collaboration between consultants and stakeholders at inception will produce a more cost-effective design.
Some developers feel that the benefits more than outweigh their expenditure in the long run. CDL, which typically invests between 2 per cent and 5 per cent of construction costs in green technology and features, estimates that it can save about $4 million in electricity annually from just the 10 buildings it got certified in 2009.
For CDL, a company's greatest difficulty in going green is not cost. 'The biggest challenge in sustaining green practices is the nurturing and integration of this conviction into a company's DNA,' says Mr Kwek.
'Building green development is more than just placing a couple of eco-friendly features within a property,' he says. 'The entire cycle must be aligned with environmental commitment.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Energy efficient: Platinum-certified UWCSEA East (above) is designed to consume 25-30 per cent less electricity than conventional buildings of similar size and function.
Green innovations at the WSingapore Sentosa Cove (above), also certified Platinum, are expected to result in energy savings of over 3.3 million kilowatt hours per year
BT : Projects being released in subdued market
Business Times - 27 May 2010
Projects being released in subdued market
Kheng Leong seen releasing initial 300 units in preview of The Minton
By KALPANA RASHIWALA
DEVELOPERS are continuing to release projects amid more subdued sentiment in the property market.
Kheng Leong group is previewing this week The Minton at Lorong Ah Soo/Hougang St 11 at an average price of about $850 per square foot.
The developer is expected to release an initial batch of about 300 units in the 1,145-unit project that is being developed on a 99-year leasehold site.
Kheng Leong is offering a mix of various unit types, from one-bedders to penthouses, and prices will range from $770 psf to $960 psf at this week's preview.
The development includes 121 one bedders, ranging from 550-700 sq ft, 335 two-bedroom apartments (940-990 sq ft), 158 two bedroom with study units as well as 44 dual key units (comprising a two-bedroom apartment and a one-bedder). The remaining unit types at The Minton include three and four bedders. In addition, there will be 24 penthouses ranging from 2,000 sq ft to 3,500 sq ft in size.
The Minton will have a total of 18 blocks, ranging from 15 to 17 storeys in height.
The project is slated for completion around 2014.
Kheng Leong has appointed three marketing agents - CB Richard Ellis, ERA and Knight Frank.
Home buyers who are shopping for completed properties could consider Melodies Limited's offer of 72 units at Cassia View, a 10-year old freehold development at Guillemard Road near Geylang. The project has been on the market for about two weekends and 16 units have been sold so far.
Melodies, controlled by the Lee family of Hotel Royal, last year tried to sell the 20-storey block of 72 units, on an en bloc basis, with a price tag of about $70 million, or $783 psf, of strata area. That exercise did not result in a sale and the company is now selling the apartments individually. The average price is about $980 psf. Melodies will refurbish units with branded bathroom fixtures and designer kitchen cabinets and appliances. It will also spruce up common areas.
The bulk, or 67 of the 72 units, are three bedders (1,100 to 1,200 sq ft) and they are priced between $1 million and $1.3 million. Cassia View has just one two-bedroom apartment (of 900 sq ft) and four penthouses (about 2,300 sq ft each).
'The units comprise almost 100 per cent nett useable space as they do not have bomb shelters, bay windows or balconies,' says Liang Thow Ming, head of residential services at Credo Real Estate, which is marketing Cassia View.
Market watchers say visitorship at showflats slowed last weekend, due to the weak stock market, Europe's economic woes, tensions on the Korean Peninsula, and the Government announcement last Friday evening that it will deliver a bumper supply of private residential land for the second half of this year to meet strong demand for its sites from developers.
Frasers Centrepoint has sold 40 units at Flamingo Valley in Siglap after two weekends of sales. Prices in the freehold project range from $900-$1,580 psf.
Allgreen Properties found buyers for 50 units at Cascadia condo at Bukit Timah Road at its preview last week, with one- and two-bedroom apartments making up the bulk of sales. Units in the development are priced mostly in the $1,400-1,600 psf range. Cascadia and Flamingo Valley are freehold.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Projects being released in subdued market
Kheng Leong seen releasing initial 300 units in preview of The Minton
By KALPANA RASHIWALA
DEVELOPERS are continuing to release projects amid more subdued sentiment in the property market.
Kheng Leong group is previewing this week The Minton at Lorong Ah Soo/Hougang St 11 at an average price of about $850 per square foot.
The developer is expected to release an initial batch of about 300 units in the 1,145-unit project that is being developed on a 99-year leasehold site.
Kheng Leong is offering a mix of various unit types, from one-bedders to penthouses, and prices will range from $770 psf to $960 psf at this week's preview.
The development includes 121 one bedders, ranging from 550-700 sq ft, 335 two-bedroom apartments (940-990 sq ft), 158 two bedroom with study units as well as 44 dual key units (comprising a two-bedroom apartment and a one-bedder). The remaining unit types at The Minton include three and four bedders. In addition, there will be 24 penthouses ranging from 2,000 sq ft to 3,500 sq ft in size.
The Minton will have a total of 18 blocks, ranging from 15 to 17 storeys in height.
The project is slated for completion around 2014.
Kheng Leong has appointed three marketing agents - CB Richard Ellis, ERA and Knight Frank.
Home buyers who are shopping for completed properties could consider Melodies Limited's offer of 72 units at Cassia View, a 10-year old freehold development at Guillemard Road near Geylang. The project has been on the market for about two weekends and 16 units have been sold so far.
Melodies, controlled by the Lee family of Hotel Royal, last year tried to sell the 20-storey block of 72 units, on an en bloc basis, with a price tag of about $70 million, or $783 psf, of strata area. That exercise did not result in a sale and the company is now selling the apartments individually. The average price is about $980 psf. Melodies will refurbish units with branded bathroom fixtures and designer kitchen cabinets and appliances. It will also spruce up common areas.
The bulk, or 67 of the 72 units, are three bedders (1,100 to 1,200 sq ft) and they are priced between $1 million and $1.3 million. Cassia View has just one two-bedroom apartment (of 900 sq ft) and four penthouses (about 2,300 sq ft each).
'The units comprise almost 100 per cent nett useable space as they do not have bomb shelters, bay windows or balconies,' says Liang Thow Ming, head of residential services at Credo Real Estate, which is marketing Cassia View.
Market watchers say visitorship at showflats slowed last weekend, due to the weak stock market, Europe's economic woes, tensions on the Korean Peninsula, and the Government announcement last Friday evening that it will deliver a bumper supply of private residential land for the second half of this year to meet strong demand for its sites from developers.
Frasers Centrepoint has sold 40 units at Flamingo Valley in Siglap after two weekends of sales. Prices in the freehold project range from $900-$1,580 psf.
Allgreen Properties found buyers for 50 units at Cascadia condo at Bukit Timah Road at its preview last week, with one- and two-bedroom apartments making up the bulk of sales. Units in the development are priced mostly in the $1,400-1,600 psf range. Cascadia and Flamingo Valley are freehold.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Nationwide full-year profit halved
Business Times - 27 May 2010
Nationwide full-year profit halved
UK mortgage lender sees broad stability in market over six to 12 months
(LONDON) Nationwide, Britain's largest building society, said it expected broad stability in the housing market over the next six to 12 months, when posting a near halving of full-year profit yesterday.
House prices have recovered ground in recent months, though they fell in February and April, according to rival lender Halifax, raising questions over the strength of the market.
'Unless there is a significant spike in interest rates, which we are not expecting, a major dip in prices is unlikely to occur over the next year,' Nationwide chief executive Graham Beale said.
Data from Nationwide itself, Britain's third-largest mortgage lender, showed a one per cent rise in house prices in April, taking the annual rate of increase into double digits for the first time in nearly three years.
Nationwide said an increase in properties for sale would relieve pressure on prices, while a continuing lack of credit and high prices relative to salaries would act as an upward limit.
Customer-owned Nationwide said it had been hit by the contraction in its core mortgage and savings markets and by pressure on margins. Underlying profit in the year to April 4 almost halved to £212 million (S$429 million).
The lender said it saw lower levels of profitability continuing throughout 2010.
It lent £12 billion of mortgages over its past financial year, representing a market share of 8.7 per cent, down from 9 per cent in 2008-09. Nationwide said it had no 'aggressive growth plans' and expected to remain at that level.
The building society, under pressure from weak markets and low interest rates, plans to accelerate cost cuts to hit a targeted cost/income ratio of less than 50 per cent by the end of 2012-13 from a current 61.3 per cent.
It will review its distribution network, swollen by recent acquisitions, and administrative buildings. Nationwide has over 1,000 retail outlets.
'It is quite an extensive network, and we need to make sure it is the right shape for the business. . . We need to adjust our business model to reflect the market conditions,' Mr Beale said.
Nationwide has already cut more than £150 million of costs over the past three years and shrank its workforce by just under 800 staff over the past 12 months to almost 15,800.
Mr Beale declined to comment on further job cuts and said the review underway would take 'years not months'.
Arrears remained broadly flat, with mortgages three months or more in arrears totalling 0.68 per cent, well below an industry average of 2.2 per cent and expected to remain stable. Bad debts on the commercial properties saw a significantly better second half, with impairment charges dropping 20 per cent to £119 million.
Nationwide, echoing rivals across the sector, said it expected lower levels of impairment going into the coming year as commercial bad debts have peaked, adding a slower recovery and weak tenant demand could throw that off track. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Optimistic: Echoing rivals, Nationwide says it expects lower levels of impairment next year as commercial bad debts have peaked
Nationwide full-year profit halved
UK mortgage lender sees broad stability in market over six to 12 months
(LONDON) Nationwide, Britain's largest building society, said it expected broad stability in the housing market over the next six to 12 months, when posting a near halving of full-year profit yesterday.
House prices have recovered ground in recent months, though they fell in February and April, according to rival lender Halifax, raising questions over the strength of the market.
'Unless there is a significant spike in interest rates, which we are not expecting, a major dip in prices is unlikely to occur over the next year,' Nationwide chief executive Graham Beale said.
Data from Nationwide itself, Britain's third-largest mortgage lender, showed a one per cent rise in house prices in April, taking the annual rate of increase into double digits for the first time in nearly three years.
Nationwide said an increase in properties for sale would relieve pressure on prices, while a continuing lack of credit and high prices relative to salaries would act as an upward limit.
Customer-owned Nationwide said it had been hit by the contraction in its core mortgage and savings markets and by pressure on margins. Underlying profit in the year to April 4 almost halved to £212 million (S$429 million).
The lender said it saw lower levels of profitability continuing throughout 2010.
It lent £12 billion of mortgages over its past financial year, representing a market share of 8.7 per cent, down from 9 per cent in 2008-09. Nationwide said it had no 'aggressive growth plans' and expected to remain at that level.
The building society, under pressure from weak markets and low interest rates, plans to accelerate cost cuts to hit a targeted cost/income ratio of less than 50 per cent by the end of 2012-13 from a current 61.3 per cent.
It will review its distribution network, swollen by recent acquisitions, and administrative buildings. Nationwide has over 1,000 retail outlets.
'It is quite an extensive network, and we need to make sure it is the right shape for the business. . . We need to adjust our business model to reflect the market conditions,' Mr Beale said.
Nationwide has already cut more than £150 million of costs over the past three years and shrank its workforce by just under 800 staff over the past 12 months to almost 15,800.
Mr Beale declined to comment on further job cuts and said the review underway would take 'years not months'.
Arrears remained broadly flat, with mortgages three months or more in arrears totalling 0.68 per cent, well below an industry average of 2.2 per cent and expected to remain stable. Bad debts on the commercial properties saw a significantly better second half, with impairment charges dropping 20 per cent to £119 million.
Nationwide, echoing rivals across the sector, said it expected lower levels of impairment going into the coming year as commercial bad debts have peaked, adding a slower recovery and weak tenant demand could throw that off track. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Optimistic: Echoing rivals, Nationwide says it expects lower levels of impairment next year as commercial bad debts have peaked
BT : S'pore ahead of Paris, Tokyo in quality of life
Business Times - 27 May 2010
S'pore ahead of Paris, Tokyo in quality of life
Top in Asia again, it ranks 28th out of 221 cities in a global survey by Mercer
By FELDA CHAY
LIFE'S good in Singapore - that is the finding of human resource consultancy firm Mercer during its annual ranking of cities according to quality of living.
The republic has retained its spot as the top Asian city boasting the highest quality of living by coming in 28th out of the 221 cities ranked in this year's survey.
Singapore was also the top-ranked Asian city last year, where it was placed 26th out of the 215 cities surveyed.
It also came in third among cities in the Asia-Pacific region in terms of eco-friendliness - which ranked cities based on factors such as use of renewable energy and pollution generated. Globally, Singapore ranked 22nd.
Mercer's Singapore mobility leader Derrick Kon said that Singapore stood out in Asia to become the city offering the best quality of life in areas such as political and social environment, economic environment, schools and education, and public services.
At 28th place, Singapore is ahead of its regional competitors such as Hong Kong and Tokyo, which were placed 71st and 40th respectively.
It also beat popular destinations such as Paris, which was ranked 34th, and London in 39th place.
European cities continued to dominate the top positions of the ranking, with Vienna keeping its seat as the place with the best quality of life.
Coming in second and third spots respectively are Zurich and Geneva.
Vancouver came in fourth, and rounding up the top five list is Auckland.
Among Asian cities, most maintained the same positions, though Tokyo fell from 35th to 40th place mainly because of climate changes.
Mercer publishes its list on quality of living annually to help multinational companies determine an appropriate amount of compensation for expatriates sent to work in difficult locations.
This year's rankings were based on data collected between September and November 2009.
Said Slagin Parakatil, senior researcher at Mercer: 'As the world economy becomes more globalised, cities in many emerging markets, such as the Middle East or Asia, have seen a significant influx of foreign companies and their expatriate employees in recent years.
'Despite the economic downturn and companies' efforts to contain costs, quality of living and hardship premiums remain important means of compensating expatriates for differences in living conditions.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
S'pore ahead of Paris, Tokyo in quality of life
Top in Asia again, it ranks 28th out of 221 cities in a global survey by Mercer
By FELDA CHAY
LIFE'S good in Singapore - that is the finding of human resource consultancy firm Mercer during its annual ranking of cities according to quality of living.
The republic has retained its spot as the top Asian city boasting the highest quality of living by coming in 28th out of the 221 cities ranked in this year's survey.
Singapore was also the top-ranked Asian city last year, where it was placed 26th out of the 215 cities surveyed.
It also came in third among cities in the Asia-Pacific region in terms of eco-friendliness - which ranked cities based on factors such as use of renewable energy and pollution generated. Globally, Singapore ranked 22nd.
Mercer's Singapore mobility leader Derrick Kon said that Singapore stood out in Asia to become the city offering the best quality of life in areas such as political and social environment, economic environment, schools and education, and public services.
At 28th place, Singapore is ahead of its regional competitors such as Hong Kong and Tokyo, which were placed 71st and 40th respectively.
It also beat popular destinations such as Paris, which was ranked 34th, and London in 39th place.
European cities continued to dominate the top positions of the ranking, with Vienna keeping its seat as the place with the best quality of life.
Coming in second and third spots respectively are Zurich and Geneva.
Vancouver came in fourth, and rounding up the top five list is Auckland.
Among Asian cities, most maintained the same positions, though Tokyo fell from 35th to 40th place mainly because of climate changes.
Mercer publishes its list on quality of living annually to help multinational companies determine an appropriate amount of compensation for expatriates sent to work in difficult locations.
This year's rankings were based on data collected between September and November 2009.
Said Slagin Parakatil, senior researcher at Mercer: 'As the world economy becomes more globalised, cities in many emerging markets, such as the Middle East or Asia, have seen a significant influx of foreign companies and their expatriate employees in recent years.
'Despite the economic downturn and companies' efforts to contain costs, quality of living and hardship premiums remain important means of compensating expatriates for differences in living conditions.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : New Dubai law to pay off in longer term
Business Times - 27 May 2010
New Dubai law to pay off in longer term
(DUBAI) A new law that defines the rights, responsibilities and obligations of all parties in jointly owned properties in Dubai will comfort investors but will do little to boost demand for properties in the short term, analysts say.
Guidelines implementing the long-awaited Strata Law were published by the Land Department on Tuesday, in a bid to help the emirate on its path to mature market status, but comes against a backdrop of residential and office oversupply.
'An instant pick-up in transaction activity is not expected on the back of this new legislation,' said Sana Kapadia, vice-president of equity research at EFG-Hermes in Dubai. 'While these clear and transparent rules will undoubtedly give buyers more comfort over their purchase decision, demand is only likely to be positively impacted in the medium to long term,' she said, adding the bank expected an overall decline in house prices and rents of up to 10 and 15 per cent respectively this year.
Dubai's residential market, already oversupplied by about 20 per cent, will gain 41,000 more homes between now and the end of the year, while office space will rise to about 6.4 million square metres by the end of 2011 from about 3.6 million sq m at the end of 2009, according to Colliers International.
The framework, which offers guidelines for all types of property, sets new rules for general regulation, jointly owned property declaration regulation, constitution regulation and survey regulation.
Additional rules include regulation on the setting up and collection of service charges without the clearance of the Real Estate Regulatory Authority (RERA), the emirate's property watchdog. 'This move should put a cap on some of the unreasonable charges being levied by some developers currently,' Ms Kapadia said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New Dubai law to pay off in longer term
(DUBAI) A new law that defines the rights, responsibilities and obligations of all parties in jointly owned properties in Dubai will comfort investors but will do little to boost demand for properties in the short term, analysts say.
Guidelines implementing the long-awaited Strata Law were published by the Land Department on Tuesday, in a bid to help the emirate on its path to mature market status, but comes against a backdrop of residential and office oversupply.
'An instant pick-up in transaction activity is not expected on the back of this new legislation,' said Sana Kapadia, vice-president of equity research at EFG-Hermes in Dubai. 'While these clear and transparent rules will undoubtedly give buyers more comfort over their purchase decision, demand is only likely to be positively impacted in the medium to long term,' she said, adding the bank expected an overall decline in house prices and rents of up to 10 and 15 per cent respectively this year.
Dubai's residential market, already oversupplied by about 20 per cent, will gain 41,000 more homes between now and the end of the year, while office space will rise to about 6.4 million square metres by the end of 2011 from about 3.6 million sq m at the end of 2009, according to Colliers International.
The framework, which offers guidelines for all types of property, sets new rules for general regulation, jointly owned property declaration regulation, constitution regulation and survey regulation.
Additional rules include regulation on the setting up and collection of service charges without the clearance of the Real Estate Regulatory Authority (RERA), the emirate's property watchdog. 'This move should put a cap on some of the unreasonable charges being levied by some developers currently,' Ms Kapadia said\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Property firms with Johor land get leg up
Business Times - 27 May 2010
Property firms with Johor land get leg up
Optimism rises in wake of progress in S'pore-M'sia issues
By PAULINE NG
IN KUALA LUMPUR
PROPERTY companies owning large tracts of land in Johor can expect greater investor interest as Singapore and Malaysia resolve previously sticky issues.
The biggest gainers may be the special economic zone of Iskandar Malaysia and Johor's real estate sector.
Given the proposals for a new rapid transit line between Tanjung Puteri in Johor Bahru and Singapore, as well as increasing bus and taxi services and reducing the Second Link toll rates, many analysts felt that Johor property developers 'could be back in play'.
Over the past two days, the bearish stockmarket sentiments notwithstanding, developers such as UEM Land and Tebrau Teguh which have large landbanks in Johor have seen a bigger spike in interest.
Government-linked UEM Land which owns an estimated 3,300 hectares in the southern state - much of it in key nodes in Iskandar - has been one of the most active counters, yesterday closing three sen up at RM1.33 after reaching an intra-day high of RM1.37.
The progress made on a number of outstanding two-decade-old issues including land owned by KTM in Singapore which will now be jointly developed by both countries' state investment agencies, as well as Singapore's commitment to a proposed wellness township in Iskandar, has raised optimism that development would now be speeded up rather than put on the back-burner.
'Oh yes, Johor and Iskandar have become more attractive, especially if Temasek comes in and brings others,' said CH Williams Talhar & Wong director Danny Yeo.
CLSA, which had previously written on improving Singapore-Malaysia relations, was also optimistic that 'the pieces were falling in place very quickly'. It expects more Singaporeans to be living in Iskandar.
In a client note, Macquarie pointed out that with Singapore helping to drive part of Iskandar's growth, Malaysia's potential economic growth and move up the value-added chain would be greatly boosted.
The proposed rapid transit link between the two countries is expected to smoothen cross border movements when it is completed in 2018.
Property players around the Johor city area are already rubbing their hands in glee. 'The South Key project just got better with the rail connection,' declared CH William's Mr Yeo. The promoters of the RM12 billion (S$5.1 billion) mixed development project on the former Majidi army campsite plan to launch the first phase involving three-storey shop lots in the coming months.
Sentiments have improved on the latest developments, Mr Yeo said, adding that with inflation likely to see a higher jump should the Goods & Services Tax be implemented next year, properties are a better hedge against inflation. 'All that coupled with the recent rate hike will only push buyers to commit earlier rather than later in order to lock in rates.'
Even so, the momentum is only expected to pick up once more Singapore money starts to trickle in.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Property firms with Johor land get leg up
Optimism rises in wake of progress in S'pore-M'sia issues
By PAULINE NG
IN KUALA LUMPUR
PROPERTY companies owning large tracts of land in Johor can expect greater investor interest as Singapore and Malaysia resolve previously sticky issues.
The biggest gainers may be the special economic zone of Iskandar Malaysia and Johor's real estate sector.
Given the proposals for a new rapid transit line between Tanjung Puteri in Johor Bahru and Singapore, as well as increasing bus and taxi services and reducing the Second Link toll rates, many analysts felt that Johor property developers 'could be back in play'.
Over the past two days, the bearish stockmarket sentiments notwithstanding, developers such as UEM Land and Tebrau Teguh which have large landbanks in Johor have seen a bigger spike in interest.
Government-linked UEM Land which owns an estimated 3,300 hectares in the southern state - much of it in key nodes in Iskandar - has been one of the most active counters, yesterday closing three sen up at RM1.33 after reaching an intra-day high of RM1.37.
The progress made on a number of outstanding two-decade-old issues including land owned by KTM in Singapore which will now be jointly developed by both countries' state investment agencies, as well as Singapore's commitment to a proposed wellness township in Iskandar, has raised optimism that development would now be speeded up rather than put on the back-burner.
'Oh yes, Johor and Iskandar have become more attractive, especially if Temasek comes in and brings others,' said CH Williams Talhar & Wong director Danny Yeo.
CLSA, which had previously written on improving Singapore-Malaysia relations, was also optimistic that 'the pieces were falling in place very quickly'. It expects more Singaporeans to be living in Iskandar.
In a client note, Macquarie pointed out that with Singapore helping to drive part of Iskandar's growth, Malaysia's potential economic growth and move up the value-added chain would be greatly boosted.
The proposed rapid transit link between the two countries is expected to smoothen cross border movements when it is completed in 2018.
Property players around the Johor city area are already rubbing their hands in glee. 'The South Key project just got better with the rail connection,' declared CH William's Mr Yeo. The promoters of the RM12 billion (S$5.1 billion) mixed development project on the former Majidi army campsite plan to launch the first phase involving three-storey shop lots in the coming months.
Sentiments have improved on the latest developments, Mr Yeo said, adding that with inflation likely to see a higher jump should the Goods & Services Tax be implemented next year, properties are a better hedge against inflation. 'All that coupled with the recent rate hike will only push buyers to commit earlier rather than later in order to lock in rates.'
Even so, the momentum is only expected to pick up once more Singapore money starts to trickle in.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : UK April mortgage approvals rise
Business Times - 27 May 2010
UK April mortgage approvals rise
(LONDON) The number of mortgage approvals for UK house purchases rose an annual 15.5 per cent last month to the highest level this year, industry data showed yesterday.
The British Bankers' Association said that the number of loans approved for house purchase rose to 35,729 last month from 35,044 in March and 30,649 in April last year.
However, the number remains well below levels of more than 40,000 seen in the second half of last year.
The figures came after mortgage lender Nationwide said that it expected the housing market to be broadly stable over the next six to 12 months as an increase in property supply keeps a lid on price gains.
'The ongoing muted BBA mortgage approvals data reinforce our suspicion that house prices will struggle to make significant gains over the coming months,' said Howard Archer, an economist at IHS Global Insight.
Net mortgage lending was subdued as households continued to pay down debt. Net mortgage lending rose by just £pounds;1.825 billion (S$3.7 billion) last month, the lowest since February 2001, and less than half the levels seen through most of 2008.
'Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings,' said BBA statistics director David Dooks. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
UK April mortgage approvals rise
(LONDON) The number of mortgage approvals for UK house purchases rose an annual 15.5 per cent last month to the highest level this year, industry data showed yesterday.
The British Bankers' Association said that the number of loans approved for house purchase rose to 35,729 last month from 35,044 in March and 30,649 in April last year.
However, the number remains well below levels of more than 40,000 seen in the second half of last year.
The figures came after mortgage lender Nationwide said that it expected the housing market to be broadly stable over the next six to 12 months as an increase in property supply keeps a lid on price gains.
'The ongoing muted BBA mortgage approvals data reinforce our suspicion that house prices will struggle to make significant gains over the coming months,' said Howard Archer, an economist at IHS Global Insight.
Net mortgage lending was subdued as households continued to pay down debt. Net mortgage lending rose by just £pounds;1.825 billion (S$3.7 billion) last month, the lowest since February 2001, and less than half the levels seen through most of 2008.
'Household priorities are clearly reflected in these latest data, with people paying down debt rather than building up savings,' said BBA statistics director David Dooks. -- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : GIC explores Singapore listing of some of its property assets
Business Times - 27 May 2010
GIC explores Singapore listing of some of its property assets
IPO could raise up to US$1b even though the timing of the listing is fluid
By CONRAD TAN
(SINGAPORE) The Government of Singapore Investment Corp (GIC) is exploring a listing in Singapore of some of its property assets through an initial public offer of shares that could raise up to US$1 billion, Reuters reported yesterday, citing sources with knowledge of the deal.
A source told BT that the timetable for the IPO is 'very fluid' due to the current volatility in financial markets, but 'the intention to list the assets is quite clear'.
When contacted, GIC declined to comment. But the fund - which manages Singapore's foreign reserves, including pension savings, and invests only outside Singapore - has been in talks with major banks for several weeks now about its plans to list some of its assets, the source said.
No mandate has been awarded to any of the banks yet, but Citigroup and JP Morgan appeared to be the frontrunners to manage the IPO, according to the source. Both Citi and JP Morgan declined to comment.
'The proposal was to list their logistics business,' said a source that's aware of GIC's plan, according to Reuters. 'They could do an industrial Reit (real estate investment trust).'
The IPO would include assets in China and Japan that GIC bought for US$1.3 billion in 2008 from ProLogis, a New York-listed developer of warehouse facilities worldwide, Reuters reported, citing its own source.
Real estate accounted for 12 per cent of GIC's investment portfolio at the end of March 2009, up from 10 per cent a year earlier. GIC Real Estate, GIC's property investment arm, manages over 200 property investments across more than 30 countries, according to GIC's website.
Its property investments include brick-and-mortar assets, stocks of listed property companies, real estate investment trusts, as well as debt securities issued by real estate firms.
The investments span most property sectors, including office, retail, residential, industrial, and hotel, as well as niche sectors such as senior and student housing, and sports and medical facilities.
Not all the investments have been successful. Late last year, GIC wrote down most of its US$675 million investment in Stuyvesant Town and Peter Cooper Village, a large apartment complex in New York that was bought at the height of the property boom in the United States, but which then suffered from the collapse of the housing market there.
The vehicle that GIC chooses to list would need to disclose detailed information about its portfolio holdings, marking a departure from the secrecy that GIC usually applies to its investments.
But GIC could be seeking to list some of its assets to cash in on investments it made during the financial crisis that have since risen in value, without giving up control of the assets entirely.
'If you've held the assets for a reasonable period of time, then it makes sense to get some of your money back,' said one investment banker, who declined to be named. 'But maybe you still want to own a stake in the business.'
'Also the deal size may be quite large, and there may not be appetite from any single investor to buy an asset. That's another reason to do an IPO rather than a trade sale,' the banker said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
GIC explores Singapore listing of some of its property assets
IPO could raise up to US$1b even though the timing of the listing is fluid
By CONRAD TAN
(SINGAPORE) The Government of Singapore Investment Corp (GIC) is exploring a listing in Singapore of some of its property assets through an initial public offer of shares that could raise up to US$1 billion, Reuters reported yesterday, citing sources with knowledge of the deal.
A source told BT that the timetable for the IPO is 'very fluid' due to the current volatility in financial markets, but 'the intention to list the assets is quite clear'.
When contacted, GIC declined to comment. But the fund - which manages Singapore's foreign reserves, including pension savings, and invests only outside Singapore - has been in talks with major banks for several weeks now about its plans to list some of its assets, the source said.
No mandate has been awarded to any of the banks yet, but Citigroup and JP Morgan appeared to be the frontrunners to manage the IPO, according to the source. Both Citi and JP Morgan declined to comment.
'The proposal was to list their logistics business,' said a source that's aware of GIC's plan, according to Reuters. 'They could do an industrial Reit (real estate investment trust).'
The IPO would include assets in China and Japan that GIC bought for US$1.3 billion in 2008 from ProLogis, a New York-listed developer of warehouse facilities worldwide, Reuters reported, citing its own source.
Real estate accounted for 12 per cent of GIC's investment portfolio at the end of March 2009, up from 10 per cent a year earlier. GIC Real Estate, GIC's property investment arm, manages over 200 property investments across more than 30 countries, according to GIC's website.
Its property investments include brick-and-mortar assets, stocks of listed property companies, real estate investment trusts, as well as debt securities issued by real estate firms.
The investments span most property sectors, including office, retail, residential, industrial, and hotel, as well as niche sectors such as senior and student housing, and sports and medical facilities.
Not all the investments have been successful. Late last year, GIC wrote down most of its US$675 million investment in Stuyvesant Town and Peter Cooper Village, a large apartment complex in New York that was bought at the height of the property boom in the United States, but which then suffered from the collapse of the housing market there.
The vehicle that GIC chooses to list would need to disclose detailed information about its portfolio holdings, marking a departure from the secrecy that GIC usually applies to its investments.
But GIC could be seeking to list some of its assets to cash in on investments it made during the financial crisis that have since risen in value, without giving up control of the assets entirely.
'If you've held the assets for a reasonable period of time, then it makes sense to get some of your money back,' said one investment banker, who declined to be named. 'But maybe you still want to own a stake in the business.'
'Also the deal size may be quite large, and there may not be appetite from any single investor to buy an asset. That's another reason to do an IPO rather than a trade sale,' the banker said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : First Mumbai land sale in 2 years passes muster
Business Times - 27 May 2010
First Mumbai land sale in 2 years passes muster
Developer plans to build mostly homes on the 25,000 square metre plot
(MUMBAI) Asia's third- most expensive office market, sold land for 40.5 billion rupees (S$1.2 billion) in the first successful auction in almost two years.
The Mumbai Metropolitan Region Development Authority sold the land in the central Wadala neighbourhood to Lodha Developers Ltd, the agency's Additional Commissioner SVR Srinivas said on Tuesday. The authority will lease the land for 65 years and had set a reserve price of 19.8 billion rupees or 40,000 rupees a square metre, according to the tender document.
The agency's first sale of land since 2008 gives Lodha Developers the largest development rights in the city, said managing director Abhisheck Lodha. The company can build 495,000 square metres (5.3 million square feet) of space on a 25,000 square metre area.
The authority, which failed to sell a block in the city's emerging business district earlier this year, managed to attract buyers for a separate parcel of land on Tuesday after allowing builders to construct homes and offices. Earlier rules only allowed commercial development.
'It's a fair deal and in line with current prices in the area,' Ashutosh Limaye, associate director at Jones Lang Lasalle Meghraj, said. 'At this bid price their cost including construction and financing will work out to about 15,000 rupees a square foot.' Lodha Developers, which is planning an initial share sale, will build mostly homes on the land, Mr Lodha said.
The four bidders included Sunteck Realty Ltd and Indiabulls Real Estate Ltd. Sunteck bid 70,002 rupees a square foot compared with Lodha Developers' 81,818 rupees.
'The bid price was better than we expected,' said Mumbai development authority's Mr Srinivas. The agency was optimistic of selling the Wadala plot because the area is expected to get metro and monorail connectivity, he said.
The sale comes after the authority didn't attract any bids for land at Bandra-Kurla Complex this year priced at 300,000 rupees a square metre, unchanged from 2008. Rents in the area have dropped by more than a third in two years, according to data from property broker CB Richard Ellis India.
Mumbai, a city of 18 million people, ranks behind Hong Kong and Tokyo as the most expensive office location in Asia, according to a survey by Los Angeles-based CB Richard Ellis Group Inc\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
First Mumbai land sale in 2 years passes muster
Developer plans to build mostly homes on the 25,000 square metre plot
(MUMBAI) Asia's third- most expensive office market, sold land for 40.5 billion rupees (S$1.2 billion) in the first successful auction in almost two years.
The Mumbai Metropolitan Region Development Authority sold the land in the central Wadala neighbourhood to Lodha Developers Ltd, the agency's Additional Commissioner SVR Srinivas said on Tuesday. The authority will lease the land for 65 years and had set a reserve price of 19.8 billion rupees or 40,000 rupees a square metre, according to the tender document.
The agency's first sale of land since 2008 gives Lodha Developers the largest development rights in the city, said managing director Abhisheck Lodha. The company can build 495,000 square metres (5.3 million square feet) of space on a 25,000 square metre area.
The authority, which failed to sell a block in the city's emerging business district earlier this year, managed to attract buyers for a separate parcel of land on Tuesday after allowing builders to construct homes and offices. Earlier rules only allowed commercial development.
'It's a fair deal and in line with current prices in the area,' Ashutosh Limaye, associate director at Jones Lang Lasalle Meghraj, said. 'At this bid price their cost including construction and financing will work out to about 15,000 rupees a square foot.' Lodha Developers, which is planning an initial share sale, will build mostly homes on the land, Mr Lodha said.
The four bidders included Sunteck Realty Ltd and Indiabulls Real Estate Ltd. Sunteck bid 70,002 rupees a square foot compared with Lodha Developers' 81,818 rupees.
'The bid price was better than we expected,' said Mumbai development authority's Mr Srinivas. The agency was optimistic of selling the Wadala plot because the area is expected to get metro and monorail connectivity, he said.
The sale comes after the authority didn't attract any bids for land at Bandra-Kurla Complex this year priced at 300,000 rupees a square metre, unchanged from 2008. Rents in the area have dropped by more than a third in two years, according to data from property broker CB Richard Ellis India.
Mumbai, a city of 18 million people, ranks behind Hong Kong and Tokyo as the most expensive office location in Asia, according to a survey by Los Angeles-based CB Richard Ellis Group Inc\. \-- Bloomberg
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