Jun 8, 2010
SPH eyes more projects after Sky@eleven
Group unveils Thomson Rd development, aims to grow property business
By Joyce Teo
SINGAPORE Press Holdings (SPH) yesterday underscored its capability as a developer with the unveiling of its completed maiden residential project, Sky@eleven, in prime district 11 off Thomson Road, and said it was looking for more development sites.
The newly completed freehold project, developed by SPH's wholly owned subsidiary Times Development, obtained its temporary occupation permit last month.
Launched amid a hot property market in January 2007, it achieved an average price of $975 per sq ft (psf). All 273 units were snapped up within 30 hours of the launch.
The duplex penthouses went for an absolute price of up to $5.8 million each. And the highest recorded price of $1,200 psf was a benchmark level for the Thomson area then.
Prices have since risen considerably. In April, units at Sky@eleven were being transacted at between $1,250 psf and $1,400 psf.
Sky@eleven features large units, built from the fifth storey upwards, with the lowest four storeys left empty, shielding residents from street-level activity.
The units range in size from 1,851 sq ft to 2,820 sq ft, while the duplex penthouses go up to 5,597 sq ft.
The principal designer and architect for the project was Mr Ti Lian Seng, who led award-winning DP Architects in designing the apartments. He also designed Marina Square and was part of a team behind the iconic Esplanade arts centre.
At yesterday's completion ceremony, SPH chairman Tony Tan said that while SPH was known for delivering quality media products, the completion of Sky@eleven has proved that the group was able to deliver more than media products.
'It is a testament to SPH's growing versatility, dynamism and willingness to seek out opportunities to create shareholder value. Sky@eleven also reflects the type of high-quality product that SPH is well known for,' he said.
Besides Sky@eleven, SPH's other property ventures include Paragon in Orchard Road. The prime shopping mall and office complex now has a new facade, after a recent makeover costing $82 million.
SPH also acquired the Clementi Mall project late last year. Together with NTUC Income and NTUC FairPrice, it tendered a bid of $541.9 million for the mall at Clementi Town Centre, which has direct links to Clementi MRT station. The mall is scheduled to begin operations in the first half of next year, said Dr Tan.
And SPH is on the lookout for more opportunities to expand its property business.
'We are still looking for sites for residential development,' Times Development's executive director, Mr Seow Choke Meng, told reporters yesterday.
Property development is one growth engine for SPH, he said. The firm has a team looking at potential sites and there may be good opportunities to pick up sites if there is a market slowdown, he added.
joyceteo@sph.com.sg
Tuesday, June 8, 2010
ST : More condos in CBD
Jun 8, 2010
COMING SOON: Altez, One Shenton, Lumiere
More condos in CBD
New developments expected to increase vibrancy in business district - and keep rents up
By Fiona Chan , Marissa Lee
NIGHTS and weekends in the Central Business District (CBD) are about to get a lot livelier, as the staid office area takes shape as a certified residential district.
Four condominiums are expected to be completed around the Shenton Way area this year and next, adding more than 1,000 homes to the district. Another two have recently been launched for sale, with a third in the pipeline, bringing the total number of condos in the area to 10.
Currently, the only major residential developments in the area are The Sail @ Marina Bay, with more than 1,000 units, and International Plaza and Icon in Tanjong Pagar, with about 850 units in total.
But with the spanking new 428-unit Marina Bay Residences having just received its temporary occupation permit (TOP), more residents will call Shenton Way their home - and as the area becomes more vibrant, rent levels in the district are likely to go up.
At the same time, Jones Lang LaSalle's head of South-east Asia research Chua Yang Liang expects the cost of renting new apartments in the CBD to increase, in line with higher demand across the island as companies hire more expatriates amid the economic recovery.
'The CBD area is likely to benefit as the housing supply remains limited, even with the projects due for completion,' he said. The 168-unit Lumiere is expected to receive its TOP this year, while the 312-unit The Clift and the 321-unit One Shenton are scheduled for completion next year but may obtain their TOPs earlier.
Property agents are already advertising units for rent at Marina Bay Residences at $4,000 to $6,000 a month for a studio, $6,500 to $8,000 for a two-bedroom apartment, and as much as $12,000 for a fully furnished three-bedder.
At The Sail, asking rents range from $3,500 to $5,000 a month for a studio, $4,500 to $6,000 for a two-bedroom apartment, and $6,000 to $9,000 for a three-bedroom unit.
And given that many new CBD developments are high-end projects, they will ride on an anticipated boom in luxury rentals, said DTZ's South-east Asia research head Chua Chor Hoon.
'Rents have firmed and we expect more significant increases for the luxury high-end units in the prime areas, as these are rented by senior management with more generous budgets,' she said.
As more residential projects reach completion in the CBD, the live-in population will make the night scene in the CBD more vibrant, Ms Chua added.
'More retailers and food and beverage outlets will stay open,' she said. 'The increase in amenities available after office hours will in turn attract more people to live in the CBD, so even after office hours, in future it's going to be quite lively.'
Jones Lang LaSalle's Mr Chua added: 'We believe the CBD will gradually loosen up from the current stolid business environment to one that is relaxed, colourful and livelier - similar to Manhattan.'
Residents of The Sail, which was completed two years ago, say they enjoy the convenience of living right in the middle of the city.
'You're within easy reach of financial services if you need them, and there's a good mix of high-end dining and local fare,' said a 34-year-old Singaporean private investor who gave his name as Mr Choo.
Another resident, German Daniel Knapp, 34, likes the fact that his home at The Sail is only three bus stops and six minutes from his office in Suntec City, where he works for a German car manufacturer.
Even The Sail residents who do not work in the CBD, such as American Vorapong Kritsanajootha, find the commute to work more pleasant.
'In the morning, when everybody's coming in (to the CBD), I'm going out. In the evening, when everybody's going out, I'm coming in. So both ways, I'm going against the traffic,' he said.
But the predominance of expat residents in the CBD area means that homes there are heavily dependent on global financial conditions remaining healthy, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
'Once there is some financial crisis that reduces the expat population working in the financial industry, rentals of these inner city apartments will be badly affected, maybe more so than those in the suburbs,' he said.
fiochan@sph.com.sg
marilee@sph.com.sg
COMING SOON: Altez, One Shenton, Lumiere
More condos in CBD
New developments expected to increase vibrancy in business district - and keep rents up
By Fiona Chan , Marissa Lee
NIGHTS and weekends in the Central Business District (CBD) are about to get a lot livelier, as the staid office area takes shape as a certified residential district.
Four condominiums are expected to be completed around the Shenton Way area this year and next, adding more than 1,000 homes to the district. Another two have recently been launched for sale, with a third in the pipeline, bringing the total number of condos in the area to 10.
Currently, the only major residential developments in the area are The Sail @ Marina Bay, with more than 1,000 units, and International Plaza and Icon in Tanjong Pagar, with about 850 units in total.
But with the spanking new 428-unit Marina Bay Residences having just received its temporary occupation permit (TOP), more residents will call Shenton Way their home - and as the area becomes more vibrant, rent levels in the district are likely to go up.
At the same time, Jones Lang LaSalle's head of South-east Asia research Chua Yang Liang expects the cost of renting new apartments in the CBD to increase, in line with higher demand across the island as companies hire more expatriates amid the economic recovery.
'The CBD area is likely to benefit as the housing supply remains limited, even with the projects due for completion,' he said. The 168-unit Lumiere is expected to receive its TOP this year, while the 312-unit The Clift and the 321-unit One Shenton are scheduled for completion next year but may obtain their TOPs earlier.
Property agents are already advertising units for rent at Marina Bay Residences at $4,000 to $6,000 a month for a studio, $6,500 to $8,000 for a two-bedroom apartment, and as much as $12,000 for a fully furnished three-bedder.
At The Sail, asking rents range from $3,500 to $5,000 a month for a studio, $4,500 to $6,000 for a two-bedroom apartment, and $6,000 to $9,000 for a three-bedroom unit.
And given that many new CBD developments are high-end projects, they will ride on an anticipated boom in luxury rentals, said DTZ's South-east Asia research head Chua Chor Hoon.
'Rents have firmed and we expect more significant increases for the luxury high-end units in the prime areas, as these are rented by senior management with more generous budgets,' she said.
As more residential projects reach completion in the CBD, the live-in population will make the night scene in the CBD more vibrant, Ms Chua added.
'More retailers and food and beverage outlets will stay open,' she said. 'The increase in amenities available after office hours will in turn attract more people to live in the CBD, so even after office hours, in future it's going to be quite lively.'
Jones Lang LaSalle's Mr Chua added: 'We believe the CBD will gradually loosen up from the current stolid business environment to one that is relaxed, colourful and livelier - similar to Manhattan.'
Residents of The Sail, which was completed two years ago, say they enjoy the convenience of living right in the middle of the city.
'You're within easy reach of financial services if you need them, and there's a good mix of high-end dining and local fare,' said a 34-year-old Singaporean private investor who gave his name as Mr Choo.
Another resident, German Daniel Knapp, 34, likes the fact that his home at The Sail is only three bus stops and six minutes from his office in Suntec City, where he works for a German car manufacturer.
Even The Sail residents who do not work in the CBD, such as American Vorapong Kritsanajootha, find the commute to work more pleasant.
'In the morning, when everybody's coming in (to the CBD), I'm going out. In the evening, when everybody's going out, I'm coming in. So both ways, I'm going against the traffic,' he said.
But the predominance of expat residents in the CBD area means that homes there are heavily dependent on global financial conditions remaining healthy, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
'Once there is some financial crisis that reduces the expat population working in the financial industry, rentals of these inner city apartments will be badly affected, maybe more so than those in the suburbs,' he said.
fiochan@sph.com.sg
marilee@sph.com.sg
ST : Buyers snap up condo units despite stock jitters
Jun 8, 2010
Buyers snap up condo units despite stock jitters
DOZENS of house hunters signed on the dotted line to buy new homes over the weekend, despite a jittery stock market hitting property market sentiment.
Most notably, the 1,145-unit The Minton in Lorong Ah Soo sold another 120 units over the weekend, taking total sales at the recently released condominium project to 300 units.
Prices were unchanged at $850 per sq ft (psf) - the price at which the first 180 units were sold the previous weekend.
In absolute terms, the prices ranged from $480,000 to $690,000 for the one-bedroom units, $750,000 to $990,000 for the two-bedroom units, $950,000 to $1.32 million for the three-bedroom units, and $1.3 million to $1.65 million for the four-bedroom units.
The sales included three penthouses priced at $1.7 million to $2.1 million.
Developer Kheng Leong said 85 per cent of the buyers were Singaporeans and 10 per cent were permanent residents. Foreigners made up the rest.
It said it has started releasing another 180 units at the 99-year leasehold condominium.
At the freehold Flamingo Valley in Siglap that was launched last month, buyers picked up another eight units.
This brought total sales to 48 units, out of 120 units that were released for sale, said developer Frasers Centrepoint.
Prices remained at $900 psf to $1,580 psf.
'In the absence of new major launches, the general rate of sales in the market of existing launches is quite healthy,' said CBRE executive director (residential) Joseph Tan.
'If you compare last year's January to May sales with this year's numbers, the volume is consistent.'
The market will be quieter this month, given that there are fewer launch-ready projects compared with the March to April period, said Mr Tan.
One possible launch later this month is Twin Peaks, on the former Grangeford condominium site in Leonie Hill Road, he added.
Unusually, the units there will be sold on a fully furnished basis.
JOYCE TEO
Buyers snap up condo units despite stock jitters
DOZENS of house hunters signed on the dotted line to buy new homes over the weekend, despite a jittery stock market hitting property market sentiment.
Most notably, the 1,145-unit The Minton in Lorong Ah Soo sold another 120 units over the weekend, taking total sales at the recently released condominium project to 300 units.
Prices were unchanged at $850 per sq ft (psf) - the price at which the first 180 units were sold the previous weekend.
In absolute terms, the prices ranged from $480,000 to $690,000 for the one-bedroom units, $750,000 to $990,000 for the two-bedroom units, $950,000 to $1.32 million for the three-bedroom units, and $1.3 million to $1.65 million for the four-bedroom units.
The sales included three penthouses priced at $1.7 million to $2.1 million.
Developer Kheng Leong said 85 per cent of the buyers were Singaporeans and 10 per cent were permanent residents. Foreigners made up the rest.
It said it has started releasing another 180 units at the 99-year leasehold condominium.
At the freehold Flamingo Valley in Siglap that was launched last month, buyers picked up another eight units.
This brought total sales to 48 units, out of 120 units that were released for sale, said developer Frasers Centrepoint.
Prices remained at $900 psf to $1,580 psf.
'In the absence of new major launches, the general rate of sales in the market of existing launches is quite healthy,' said CBRE executive director (residential) Joseph Tan.
'If you compare last year's January to May sales with this year's numbers, the volume is consistent.'
The market will be quieter this month, given that there are fewer launch-ready projects compared with the March to April period, said Mr Tan.
One possible launch later this month is Twin Peaks, on the former Grangeford condominium site in Leonie Hill Road, he added.
Unusually, the units there will be sold on a fully furnished basis.
JOYCE TEO
ST : OCBC plans for Orchard Rd site confirmed at last
Jun 8, 2010
OCBC plans for Orchard Rd site confirmed at last
By Harsha Jethnani
ON-AGAIN, off-again plans for the redevelopment of the prime Specialists' Shopping Centre and Hotel Phoenix site into a hotel-cum-retail mall have finally been wrapped up.
The site's owner, OCBC Bank, made the announcement yesterday after more than two years of uncertainty over the site's fate. OCBC said it had appointed mainboard-listed United Engineers Ltd (UEL) to undertake the redevelopment.
The bank had said in March that it was in talks with UEL and that the site was one of its long-term investments.
Confirmation of the development follows major redevelopment of the surrounding prime area, including the 313@Somerset and Orchard Central projects.
UEL will be the developer for the project and will arrange project financing, a statement from OCBC said.
The Specialists' Shopping Centre and Hotel Phoenix have both been demolished. The hotel closed in August 2007 after 35 years.
The estimated $550 million development will be built in two phases, both expected to be completed by the second half of 2013.
UEL said in an announcement yesterday that Phase 1 will entail the construction of the new hotel, shopping mall and a pedestrian bridge, and Phase 2 will involve building an underpass.
Both the bridge and underpass will link the new development to the former Orchard Emerald site, owned by the Great Eastern Life group and located across the road from the Specialists' Shopping Centre site.
UEL will be financing the project through the incorporation of two special purpose wholly owned units - UE Orchard for Phase 1 and UE Somerset for Phase 2.
The former will have an issued share capital of $500,000 and the latter of $200,000, the UEL announcement said.
OCBC has also entered into a sales and purchase agreement with UEL to purchase the issued shares and outstanding shareholders' loans in both units upon the project's completion.
Originally in talks with OCBC to redevelop the site was the Straits Trading Company. But despite talks which were in advanced stages in early 2008, the arrangement did not proceed.
Tecity Group - controlled by the family of the late Tan Chin Tuan, a former chairman of OCBC Bank - had taken over Straits Trading, originally part of OCBC and the Lee family, in the same year.
Tecity now holds 12 per cent of UEL after Straits Trading transferred its entire stake to the group in May last year.
Straits Trading is a holding company with businesses ranging from smelting and mining to hotel investment and property management.
OCBC plans for Orchard Rd site confirmed at last
By Harsha Jethnani
ON-AGAIN, off-again plans for the redevelopment of the prime Specialists' Shopping Centre and Hotel Phoenix site into a hotel-cum-retail mall have finally been wrapped up.
The site's owner, OCBC Bank, made the announcement yesterday after more than two years of uncertainty over the site's fate. OCBC said it had appointed mainboard-listed United Engineers Ltd (UEL) to undertake the redevelopment.
The bank had said in March that it was in talks with UEL and that the site was one of its long-term investments.
Confirmation of the development follows major redevelopment of the surrounding prime area, including the 313@Somerset and Orchard Central projects.
UEL will be the developer for the project and will arrange project financing, a statement from OCBC said.
The Specialists' Shopping Centre and Hotel Phoenix have both been demolished. The hotel closed in August 2007 after 35 years.
The estimated $550 million development will be built in two phases, both expected to be completed by the second half of 2013.
UEL said in an announcement yesterday that Phase 1 will entail the construction of the new hotel, shopping mall and a pedestrian bridge, and Phase 2 will involve building an underpass.
Both the bridge and underpass will link the new development to the former Orchard Emerald site, owned by the Great Eastern Life group and located across the road from the Specialists' Shopping Centre site.
UEL will be financing the project through the incorporation of two special purpose wholly owned units - UE Orchard for Phase 1 and UE Somerset for Phase 2.
The former will have an issued share capital of $500,000 and the latter of $200,000, the UEL announcement said.
OCBC has also entered into a sales and purchase agreement with UEL to purchase the issued shares and outstanding shareholders' loans in both units upon the project's completion.
Originally in talks with OCBC to redevelop the site was the Straits Trading Company. But despite talks which were in advanced stages in early 2008, the arrangement did not proceed.
Tecity Group - controlled by the family of the late Tan Chin Tuan, a former chairman of OCBC Bank - had taken over Straits Trading, originally part of OCBC and the Lee family, in the same year.
Tecity now holds 12 per cent of UEL after Straits Trading transferred its entire stake to the group in May last year.
Straits Trading is a holding company with businesses ranging from smelting and mining to hotel investment and property management.
BT : China links second-home mortgage to residency
Business Times - 08 Jun 2010
China links second-home mortgage to residency
Govt also spells out rules for suspension of loans to home buyers by banks
(BEIJING) China will apply its tighter second-home mortgage policies to loan applicants who fail to provide proof of at least one year of local social security contributions or tax payments, the government said.
Banks can suspend loans to such home buyers in regions where house prices are too high, rising too fast or residential property is in short supply, the Ministry of Housing and Urban-Rural Development said in a statement on its website yesterday.
China in April raised down payments for second homes to at least 50 per cent, from 40 per cent, and lifted mortgage rates for such loans to 110 per cent of benchmark rates, trying to avert a property bubble after prices rose by a record in March.
In an April 17 statement, the State Council ordered a suspension of mortgage loans to non-local residents that can't prove at least one year of social security contributions or tax payments.
'In terms of buying in non-residence cities, this amounts to a relaxation' from the State Council's rhetoric, said Dai Fang, a Shanghai-based analyst at Zheshang Securities Co.
The new rules on second homes also will apply to people who can prove they are local residents if their family, including the borrower, spouses and underage children, either already own an apartment or held a mortgage before, according to yesterday's statement.
Before the new rules, first-home mortgage criteria was applied to citizens living in smaller-than-average spaces who wanted to buy a new home, Mr Dai said.
The latest rules 'kill' demand from people who aimed to improve their living conditions rather than to speculate, said Mr Dai.
The wording leaves little room for households that already own one 'residential suite' that is very small and need to upgrade, he added.
Minimum down payments for first homes are 30 per cent for apartments bigger than 90 square metres and 20 per cent for smaller ones.
Banks were told to apply substantially higher down- payment rules and interest rates for third homes\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Cooling down: In an attempt to avert a property bubble after prices rose by a record in March, China has raised down payments for second homes and lifted mortgage rates for such loans
No takers: Property agents in a Beijing street. The latest rules kill demand from people who aim to improve their living conditions rather than to speculate, says an analyst
China links second-home mortgage to residency
Govt also spells out rules for suspension of loans to home buyers by banks
(BEIJING) China will apply its tighter second-home mortgage policies to loan applicants who fail to provide proof of at least one year of local social security contributions or tax payments, the government said.
Banks can suspend loans to such home buyers in regions where house prices are too high, rising too fast or residential property is in short supply, the Ministry of Housing and Urban-Rural Development said in a statement on its website yesterday.
China in April raised down payments for second homes to at least 50 per cent, from 40 per cent, and lifted mortgage rates for such loans to 110 per cent of benchmark rates, trying to avert a property bubble after prices rose by a record in March.
In an April 17 statement, the State Council ordered a suspension of mortgage loans to non-local residents that can't prove at least one year of social security contributions or tax payments.
'In terms of buying in non-residence cities, this amounts to a relaxation' from the State Council's rhetoric, said Dai Fang, a Shanghai-based analyst at Zheshang Securities Co.
The new rules on second homes also will apply to people who can prove they are local residents if their family, including the borrower, spouses and underage children, either already own an apartment or held a mortgage before, according to yesterday's statement.
Before the new rules, first-home mortgage criteria was applied to citizens living in smaller-than-average spaces who wanted to buy a new home, Mr Dai said.
The latest rules 'kill' demand from people who aimed to improve their living conditions rather than to speculate, said Mr Dai.
The wording leaves little room for households that already own one 'residential suite' that is very small and need to upgrade, he added.
Minimum down payments for first homes are 30 per cent for apartments bigger than 90 square metres and 20 per cent for smaller ones.
Banks were told to apply substantially higher down- payment rules and interest rates for third homes\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Cooling down: In an attempt to avert a property bubble after prices rose by a record in March, China has raised down payments for second homes and lifted mortgage rates for such loans
No takers: Property agents in a Beijing street. The latest rules kill demand from people who aim to improve their living conditions rather than to speculate, says an analyst
BT : HK analysts cut land auction bid estimates
Business Times - 08 Jun 2010
HK analysts cut land auction bid estimates
Developers expected to pay about HK$8.4b for site
(HONG KONG) Hong Kong developers may pay HK$8.41 billion (S$1.5 billion) for a residential site at a government auction today, as some analysts cut their estimates after two previous land sales missed forecasts and apartment prices fell in the last two weeks.
Estimates for the site in Ho Man Tin district ranged from HK$7.15 billion to HK$9.8 billion, based on seven analysts surveyed by Bloomberg News. Three of the analysts either cut their estimates over the last two weeks or waited longer than usual before publishing forecasts.
The Centa-City Index, a measure of Hong Kong's home prices, last week fell 1.44 per cent, its biggest weekly drop in more than 18 months, in the wake of the government's May 12 pledge to keep boosting land supply as it tries to cool the property market. Hong Kong may add as many as 60,000 homes in three to four years, Financial Secretary John Tsang said yesterday.
'We expect developers to be quite cautious at this auction,' said James Cheung, a director at the surveyor unit of Centaline Properties Ltd, one of the city's largest real estate agencies. 'On the other hand, this is a quality site and after sitting on the sideline at the last two auctions, some of the big players may be ready to move in again.'
Home prices in the city have risen 41 per cent since the end of 2008, spurring concern that housing is out of reach of ordinary residents. The Hang Seng Property Index, tracking six of Hong Kong's biggest developers, fell 2.1 per cent today to extend this year's decline to 14 per cent, underperforming the 11 per cent drop in the Hang Seng Index.
Midland Holdings Ltd, Hong Kong's biggest publicly traded real estate agency, last week cut its estimate for tomorrow's auction by about 10 per cent to HK$9.8 billion, according to Alvin Lam, an executive director at the company's surveyor arm. The previous forecast was done in early April, he said.
The site on Kowloon peninsula will be the third piece of land auctioned by the government this fiscal year. It has a total area of 16,151 square metres (174,000 square feet) and building areas of 869,000 sq ft.
The developer who buys the site will likely build between seven and 14 blocks of apartments with 25 to 31 stories each, according to Alnwick Chan, executive director at property consultant Knight Frank LLP. The project will probably sell for about HK$15,000 per sq ft when it is completed, he said.
The first government auction of this fiscal year, conducted on May 11, fetched HK$3.42 billion for a site on Lantau Island, a third less than the median HK$4.75 billion estimate of three surveyors compiled by Bloomberg. Nan Fung Development Ltd, a privately held developer controlled by billionaire Chen Din Hwa, outbid only two other builders in the auction that analyst Adrian Ngan of CCB International Securities Ltd described as 'a slam' on the property market.
Two weeks later, a subsidiary of Henderson Land Development Co, controlled by billionaire Lee Shau-kee, bought a site in the city's northern Fanling area for HK$1.33 billion, shy of the HK$1.37 billion median estimate of four surveyors.
On May 28, MTR Corp, the government-owned subway operator, said it was withdrawing the tender for a residential and commercial project atop one of its subway stations, without giving an explanation.
'Mega-builders' such as Sun Hung Kai Properties Ltd and Cheung Kong Holdings Ltd may have more interest in the Ho Man Tin site because of the high price it is expected to fetch, said Centaline's Mr Cheung.
New apartments in the district, which include those at projects such as Cheung Kong's Celestial Heights and New World Development Co's Wylie Court, are currently selling for about HK$12,000 to HK$13,000 psf, according to Knight Frank's Mr Chan.
The Lands Department is one of Hong Kong's largest suppliers of unoccupied land for building. Developers trigger auctions from a list of available sites by promising to pay a minimum amount.
Today's auction will be followed by another one on July 28 for a site on Mount Nicholson in the Peak district, according to the Lands Department website.
Henderson's Mr Lee and his family on May 18 paid HK$1.82 billion for a 53,350 sq ft plot of land on the Peak in an auction of non-government land. On a psf price of HK$68,200, the land was the city's most expensive in an auction, auctioneer Jones Lang LaSalle Inc said\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Glass ceiling: Home prices in Hong Kong have risen 41 per cent since the end of 2008, spurring concern that housing is out of reach of ordinary residents
HK analysts cut land auction bid estimates
Developers expected to pay about HK$8.4b for site
(HONG KONG) Hong Kong developers may pay HK$8.41 billion (S$1.5 billion) for a residential site at a government auction today, as some analysts cut their estimates after two previous land sales missed forecasts and apartment prices fell in the last two weeks.
Estimates for the site in Ho Man Tin district ranged from HK$7.15 billion to HK$9.8 billion, based on seven analysts surveyed by Bloomberg News. Three of the analysts either cut their estimates over the last two weeks or waited longer than usual before publishing forecasts.
The Centa-City Index, a measure of Hong Kong's home prices, last week fell 1.44 per cent, its biggest weekly drop in more than 18 months, in the wake of the government's May 12 pledge to keep boosting land supply as it tries to cool the property market. Hong Kong may add as many as 60,000 homes in three to four years, Financial Secretary John Tsang said yesterday.
'We expect developers to be quite cautious at this auction,' said James Cheung, a director at the surveyor unit of Centaline Properties Ltd, one of the city's largest real estate agencies. 'On the other hand, this is a quality site and after sitting on the sideline at the last two auctions, some of the big players may be ready to move in again.'
Home prices in the city have risen 41 per cent since the end of 2008, spurring concern that housing is out of reach of ordinary residents. The Hang Seng Property Index, tracking six of Hong Kong's biggest developers, fell 2.1 per cent today to extend this year's decline to 14 per cent, underperforming the 11 per cent drop in the Hang Seng Index.
Midland Holdings Ltd, Hong Kong's biggest publicly traded real estate agency, last week cut its estimate for tomorrow's auction by about 10 per cent to HK$9.8 billion, according to Alvin Lam, an executive director at the company's surveyor arm. The previous forecast was done in early April, he said.
The site on Kowloon peninsula will be the third piece of land auctioned by the government this fiscal year. It has a total area of 16,151 square metres (174,000 square feet) and building areas of 869,000 sq ft.
The developer who buys the site will likely build between seven and 14 blocks of apartments with 25 to 31 stories each, according to Alnwick Chan, executive director at property consultant Knight Frank LLP. The project will probably sell for about HK$15,000 per sq ft when it is completed, he said.
The first government auction of this fiscal year, conducted on May 11, fetched HK$3.42 billion for a site on Lantau Island, a third less than the median HK$4.75 billion estimate of three surveyors compiled by Bloomberg. Nan Fung Development Ltd, a privately held developer controlled by billionaire Chen Din Hwa, outbid only two other builders in the auction that analyst Adrian Ngan of CCB International Securities Ltd described as 'a slam' on the property market.
Two weeks later, a subsidiary of Henderson Land Development Co, controlled by billionaire Lee Shau-kee, bought a site in the city's northern Fanling area for HK$1.33 billion, shy of the HK$1.37 billion median estimate of four surveyors.
On May 28, MTR Corp, the government-owned subway operator, said it was withdrawing the tender for a residential and commercial project atop one of its subway stations, without giving an explanation.
'Mega-builders' such as Sun Hung Kai Properties Ltd and Cheung Kong Holdings Ltd may have more interest in the Ho Man Tin site because of the high price it is expected to fetch, said Centaline's Mr Cheung.
New apartments in the district, which include those at projects such as Cheung Kong's Celestial Heights and New World Development Co's Wylie Court, are currently selling for about HK$12,000 to HK$13,000 psf, according to Knight Frank's Mr Chan.
The Lands Department is one of Hong Kong's largest suppliers of unoccupied land for building. Developers trigger auctions from a list of available sites by promising to pay a minimum amount.
Today's auction will be followed by another one on July 28 for a site on Mount Nicholson in the Peak district, according to the Lands Department website.
Henderson's Mr Lee and his family on May 18 paid HK$1.82 billion for a 53,350 sq ft plot of land on the Peak in an auction of non-government land. On a psf price of HK$68,200, the land was the city's most expensive in an auction, auctioneer Jones Lang LaSalle Inc said\. \-- Bloomberg
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Glass ceiling: Home prices in Hong Kong have risen 41 per cent since the end of 2008, spurring concern that housing is out of reach of ordinary residents
BT : Nakheel nears deal with major creditors
Business Times - 08 Jun 2010
Nakheel nears deal with major creditors
Paying arrears will pave the way for the firm to restart stalled projects
(DUBAI) Dubai World's indebted property arm Nakheel is very close to hitting a key threshold among large trade creditors that would allow it to begin paying overdue bills, a company spokeswoman said yesterday.
For Nakheel, once known for its glitzy palm- shaped islands, paying arrears to large contractors would be the first step towards helping the company to restart the myriad of stalled projects scattered throughout the emirate.
Nakheel said in May that about 50 per cent of its creditors had already agreed to the deal and once 65 per cent accept the terms, the creditors will begin receiving cash payments.
Trade creditors owed more than 500,000 dirhams (S$192,856) have been offered full repayment, with 40 per cent in cash and the rest with an Islamic bond, or sukuk, which has a 10 per cent annual return.
'Many of the creditors are coming to the conclusion that this is the only deal on the table so it's better to get something rather than nothing,' said Ashley Painter, partner at Clyde & Co, who represents some creditors.
Nakheel's spokeswoman said talks are continuing with the larger creditors, but more have agreed to the proposal since the announcement was made last month.
'We're very happy with all the progress that's been made and hopefully this will be wrapped up quite soon,' she said.
Nakheel has already begun to repay small trade creditors owed 500,000 dirhams or less, who it has put into a different category than larger firms.
She said the payments were aimed at helping to revive construction projects that were stalled as Nakheel struggled to pay its creditors but did not specify which projects would resume first.
'Our intention is to carry on all the near-term projects,' she said.
Nakheel's proposal is part of Dubai's US$9.5 billion rescue plan for Nakheel's parent, state- owned Dubai World, unveiled in March.
The conglomerate is in talks with lenders to restructure US$26 billion in debt\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reviving construction: Once known for its glitzy palm-shaped islands, Dubai's indebted property developer Nakheel says it intends to carry on all the near-term projects
Nakheel nears deal with major creditors
Paying arrears will pave the way for the firm to restart stalled projects
(DUBAI) Dubai World's indebted property arm Nakheel is very close to hitting a key threshold among large trade creditors that would allow it to begin paying overdue bills, a company spokeswoman said yesterday.
For Nakheel, once known for its glitzy palm- shaped islands, paying arrears to large contractors would be the first step towards helping the company to restart the myriad of stalled projects scattered throughout the emirate.
Nakheel said in May that about 50 per cent of its creditors had already agreed to the deal and once 65 per cent accept the terms, the creditors will begin receiving cash payments.
Trade creditors owed more than 500,000 dirhams (S$192,856) have been offered full repayment, with 40 per cent in cash and the rest with an Islamic bond, or sukuk, which has a 10 per cent annual return.
'Many of the creditors are coming to the conclusion that this is the only deal on the table so it's better to get something rather than nothing,' said Ashley Painter, partner at Clyde & Co, who represents some creditors.
Nakheel's spokeswoman said talks are continuing with the larger creditors, but more have agreed to the proposal since the announcement was made last month.
'We're very happy with all the progress that's been made and hopefully this will be wrapped up quite soon,' she said.
Nakheel has already begun to repay small trade creditors owed 500,000 dirhams or less, who it has put into a different category than larger firms.
She said the payments were aimed at helping to revive construction projects that were stalled as Nakheel struggled to pay its creditors but did not specify which projects would resume first.
'Our intention is to carry on all the near-term projects,' she said.
Nakheel's proposal is part of Dubai's US$9.5 billion rescue plan for Nakheel's parent, state- owned Dubai World, unveiled in March.
The conglomerate is in talks with lenders to restructure US$26 billion in debt\. \-- Reuters
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Reviving construction: Once known for its glitzy palm-shaped islands, Dubai's indebted property developer Nakheel says it intends to carry on all the near-term projects
BT : Pushing the envelope in land use
Business Times - 08 Jun 2010
INDUSTRIAL SPACE
Pushing the envelope in land use
JTC is taking a multi-pronged approach, exploring edgy ideas and methods for industrial land development, reports UMA SHANKARI
A 'SHIP to showroom' warehouse with a retail complex at one of Singapore's harbours. A recycling industrial park. A giant hoisting system to move bulky goods to companies on high floors. These are just some ground-breaking structures that Singapore could soon have as JTC explores cutting edge ideas and unconventional methods to intensify the use of industrial land.
And in the process, the industrial landlord could very well push boundaries to create new industrial standards.
'Right now, industrial land sites in Singapore usually have a maximum gross plot ratio of 2-2.5. We want to increase the plot ratio to 4-5 in future for specific industrial plots,' said Koh Chwee, director of JTC's engineering planning division said.
'We have a multi-pronged approach in maximising the limited land resources we have in Singapore. One method is to build industrial complexes with high plot ratios that are also sustainable in the long run.'
All of the ideas being tossed around now will intensify land use. The giant hoisting system, for example, will allow developers to build taller industrial facilities and intensify land use by at least 20 per cent. Another idea, which looks at housing factories, warehouses and workers' dormitories in a single complex, could cut land take-up by about 35 per cent with shared driveways and fewer setbacks.
Megastructures
JTC staff got the idea for the first concept - a cluster industrial complex with mega hoist - from looking at how cranes at ports work. They came up with a design that incorporates a huge hoist in the middle of a complex. Factories can occupy one side of the complex and warehouses the other, sharing the hoist and loading bay for moving goods.
The complex could be five storeys, with a plot ratio of 2.5 - about 25 per cent higher than the plot ratios for comparable stack-up factories. And because there is no need for a vehicle ramp for trucks to transport goods to higher floors, the design saves up to 0.5 ha of land area.
The second design is based on a 'plug-and-play' concept. A row of warehouses, logistics facilities, car parks and other amenities will form a central 'spine'. Flatted factories and workers' dormitories will be built on top of this spine.
Industrialists can then 'plug in' to this spine by building their own modular factories along it. At the same time, they can share car parks, access ways for moving goods and other amenities.
Locating various facilities together means less space needs to be set aside for internal driveways and setbacks. This complex can have a plot ratio of 1.5, almost double the 0.85 for a comparable standard factory today.
In addition to drawing on its own reserves JTC is also looking at ideas from the private sector and academic institutions in a bid to make more efficient use of Singapore's limited land.
The agency is working with the Centre of Design Research from the National University of Singapore's Department of Architecture to fund a project for students to come up with designs for sustainable industrial complexes with high plot ratios.
To date, several innovative ideas have already been mooted. And even though there is still a fair bit of work to be done before any of the ideas can be implemented, they have the seeds of great potential, JTC said.
One such idea deals with building a new mega scaffolding structure over an existing development. A site in Jurong Industrial Estate is being considered for this and JTC hopes to develop a vibrant high plot ratio industrial complex with green features.
In the blueprint, amenities such as cafeterias, commercial outlets, business centres and outdoor green areas will be interspersed between the first two layers of factory spaces.
The top-most layer of the mega scaffold will have winches and gantry cranes to support warehousing and industrial operations within the complex. The overhead machinery will reduce the need for vehicular ramp access from roadways at ground level. Containers can then be loaded and/or unloaded at dedicated loading and unloading bays at the ground level.
In this way, buildings on the ground could continue to operate until redevelopment into buildings with higher plot ratios in future. These buildings would also enjoy energy savings from cooling due to shielding from solar radiation, JTC said.
Yet another idea is to have a 'recycling industrial complex' to house the entire value chain of recycling businesses that could spawn an entire new industry for the manufacturing and transaction of materials and products made from recycled wastes.
A multi-storey car park without ramps could also be integrated with this complex. Cars will be conveyed by a computerised motorised lift system to various floors. In this way, the space used for ramps and driveways can be saved, and there will be low floor-to-ceiling heights since only cars will be stored. Land use is intensified as the parking capacity per plot can at least be doubled.
A third idea envisioned by NUS's Department of Architecture is a 'from ship to showroom' complex around one of Singapore's harbours - such as the port at Pasir Panjang - where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site where they can be put to other uses.
Cutting edge ideas
The complex will therefore be a novel one-stop mega container port complex where space is optimised 'at berth'. Events such as the Singapore Motorshow could then be held at the complex itself once the cars arrive by boat, which will eliminate the need to truck them to other parts of the island in order to exhibit them.
In addition, the complex could also have living quarters such as blocks of HDB flats stacked on top of the roof. This will allow the land that the complex is situated on to be put to maximum use, and residents will also be able to enjoy views of the harbour - typically enjoyed just by visitors to the port.
Seeking a new set of minds from Singapore's educated talent is one way in which JTC expands its horizon on innovative land.
It is also working to make sure that the ideas keep flowing: JTC recently took the unprecedented step of opening up its innovation 'dream fund' - created in 2004 to fund innovative projects internally - to external partners.
The agency will provide funding of up to $1 million for 'cutting edge' project proposal from the private and public sectors and academic institutions on how to intensify land use and create new industrial space.
'Innovation is a high priority for JTC and we recognise that we can increase our capacity for innovation if we pro-actively reach out to external partners,' said JTC chief executive Manohar Khiatani. 'With this initiative, we hope to seek new inspiration to complement our own ideas and boost industry research in optimising, intensifying and creating new industrial space for the advancement of the economy.'
Proposals should consider three main areas: clustering relevant industries for increased synergy; reducing land use for infrastructure, transport networks, buffer zones and other facilities; and mitigating issues relating to high-rise industrial operations such as goods handling, vibration and urban heat.
The fact that the 'dream fund' is now open to external parties underscores JTC's (and the government's) commitment to the intensification of industrial land use - in line with what was recommended by the Economic Strategies Committee in early February. The committee's report said that Singapore has to support the intensification of industrial land use as there are now greater demands on the country's limited land resources.
As the local economy recovers - and the industrial sector along with it - JTC is poised to support industrialists with these new and innovative industrial development concepts which are slated to sharpen Singapore's competitive edge in industrialisation.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Complete concept: (Above) An artist's impression of a mega 'from ship to showroom' complex around one of Singapore's harbours where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site, and (next) a cluster industrial complex with megahoist connecting factory to warehouse
INDUSTRIAL SPACE
Pushing the envelope in land use
JTC is taking a multi-pronged approach, exploring edgy ideas and methods for industrial land development, reports UMA SHANKARI
A 'SHIP to showroom' warehouse with a retail complex at one of Singapore's harbours. A recycling industrial park. A giant hoisting system to move bulky goods to companies on high floors. These are just some ground-breaking structures that Singapore could soon have as JTC explores cutting edge ideas and unconventional methods to intensify the use of industrial land.
And in the process, the industrial landlord could very well push boundaries to create new industrial standards.
'Right now, industrial land sites in Singapore usually have a maximum gross plot ratio of 2-2.5. We want to increase the plot ratio to 4-5 in future for specific industrial plots,' said Koh Chwee, director of JTC's engineering planning division said.
'We have a multi-pronged approach in maximising the limited land resources we have in Singapore. One method is to build industrial complexes with high plot ratios that are also sustainable in the long run.'
All of the ideas being tossed around now will intensify land use. The giant hoisting system, for example, will allow developers to build taller industrial facilities and intensify land use by at least 20 per cent. Another idea, which looks at housing factories, warehouses and workers' dormitories in a single complex, could cut land take-up by about 35 per cent with shared driveways and fewer setbacks.
Megastructures
JTC staff got the idea for the first concept - a cluster industrial complex with mega hoist - from looking at how cranes at ports work. They came up with a design that incorporates a huge hoist in the middle of a complex. Factories can occupy one side of the complex and warehouses the other, sharing the hoist and loading bay for moving goods.
The complex could be five storeys, with a plot ratio of 2.5 - about 25 per cent higher than the plot ratios for comparable stack-up factories. And because there is no need for a vehicle ramp for trucks to transport goods to higher floors, the design saves up to 0.5 ha of land area.
The second design is based on a 'plug-and-play' concept. A row of warehouses, logistics facilities, car parks and other amenities will form a central 'spine'. Flatted factories and workers' dormitories will be built on top of this spine.
Industrialists can then 'plug in' to this spine by building their own modular factories along it. At the same time, they can share car parks, access ways for moving goods and other amenities.
Locating various facilities together means less space needs to be set aside for internal driveways and setbacks. This complex can have a plot ratio of 1.5, almost double the 0.85 for a comparable standard factory today.
In addition to drawing on its own reserves JTC is also looking at ideas from the private sector and academic institutions in a bid to make more efficient use of Singapore's limited land.
The agency is working with the Centre of Design Research from the National University of Singapore's Department of Architecture to fund a project for students to come up with designs for sustainable industrial complexes with high plot ratios.
To date, several innovative ideas have already been mooted. And even though there is still a fair bit of work to be done before any of the ideas can be implemented, they have the seeds of great potential, JTC said.
One such idea deals with building a new mega scaffolding structure over an existing development. A site in Jurong Industrial Estate is being considered for this and JTC hopes to develop a vibrant high plot ratio industrial complex with green features.
In the blueprint, amenities such as cafeterias, commercial outlets, business centres and outdoor green areas will be interspersed between the first two layers of factory spaces.
The top-most layer of the mega scaffold will have winches and gantry cranes to support warehousing and industrial operations within the complex. The overhead machinery will reduce the need for vehicular ramp access from roadways at ground level. Containers can then be loaded and/or unloaded at dedicated loading and unloading bays at the ground level.
In this way, buildings on the ground could continue to operate until redevelopment into buildings with higher plot ratios in future. These buildings would also enjoy energy savings from cooling due to shielding from solar radiation, JTC said.
Yet another idea is to have a 'recycling industrial complex' to house the entire value chain of recycling businesses that could spawn an entire new industry for the manufacturing and transaction of materials and products made from recycled wastes.
A multi-storey car park without ramps could also be integrated with this complex. Cars will be conveyed by a computerised motorised lift system to various floors. In this way, the space used for ramps and driveways can be saved, and there will be low floor-to-ceiling heights since only cars will be stored. Land use is intensified as the parking capacity per plot can at least be doubled.
A third idea envisioned by NUS's Department of Architecture is a 'from ship to showroom' complex around one of Singapore's harbours - such as the port at Pasir Panjang - where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site where they can be put to other uses.
Cutting edge ideas
The complex will therefore be a novel one-stop mega container port complex where space is optimised 'at berth'. Events such as the Singapore Motorshow could then be held at the complex itself once the cars arrive by boat, which will eliminate the need to truck them to other parts of the island in order to exhibit them.
In addition, the complex could also have living quarters such as blocks of HDB flats stacked on top of the roof. This will allow the land that the complex is situated on to be put to maximum use, and residents will also be able to enjoy views of the harbour - typically enjoyed just by visitors to the port.
Seeking a new set of minds from Singapore's educated talent is one way in which JTC expands its horizon on innovative land.
It is also working to make sure that the ideas keep flowing: JTC recently took the unprecedented step of opening up its innovation 'dream fund' - created in 2004 to fund innovative projects internally - to external partners.
The agency will provide funding of up to $1 million for 'cutting edge' project proposal from the private and public sectors and academic institutions on how to intensify land use and create new industrial space.
'Innovation is a high priority for JTC and we recognise that we can increase our capacity for innovation if we pro-actively reach out to external partners,' said JTC chief executive Manohar Khiatani. 'With this initiative, we hope to seek new inspiration to complement our own ideas and boost industry research in optimising, intensifying and creating new industrial space for the advancement of the economy.'
Proposals should consider three main areas: clustering relevant industries for increased synergy; reducing land use for infrastructure, transport networks, buffer zones and other facilities; and mitigating issues relating to high-rise industrial operations such as goods handling, vibration and urban heat.
The fact that the 'dream fund' is now open to external parties underscores JTC's (and the government's) commitment to the intensification of industrial land use - in line with what was recommended by the Economic Strategies Committee in early February. The committee's report said that Singapore has to support the intensification of industrial land use as there are now greater demands on the country's limited land resources.
As the local economy recovers - and the industrial sector along with it - JTC is poised to support industrialists with these new and innovative industrial development concepts which are slated to sharpen Singapore's competitive edge in industrialisation.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Complete concept: (Above) An artist's impression of a mega 'from ship to showroom' complex around one of Singapore's harbours where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site, and (next) a cluster industrial complex with megahoist connecting factory to warehouse
BT : SPH on look-out for attractive residential sites
Business Times - 08 Jun 2010
SPH on look-out for attractive residential sites
SPH unit holds completion ceremony for Sky@eleven
By UMA SHANKARI
SINGAPORE Press Holdings' property unit is on the look-out for residential sites to buy, says the unit's executive director Seow Choke Meng.
Times Development, a wholly owned subsidiary of the media group, yesterday held the completion ceremony for its maiden residential project Sky@eleven.
All apartments and penthouses in the 273-unit development off Thomson Road were snapped up within 30 hours during the property's January 2007 launch.
The freehold condo obtained its temporary occupation permit last month.
Speaking to reporters, Mr Seow said that the project has delivered good returns to SPH shareholders and he remains on the lookout for land.
'We are still looking for sites for residential development,' he said. SPH is open to buying sites in prime districts as well as suburban plots, he said.
But it will only pick plots that can deliver returns as good as Sky@eleven did, he said.
SPH chairman Tony Tan said that the completion of Sky@eleven has proven that the company can deliver more than media products. 'It is a testament to SPH's growing versatility, dynamism and willingness to seek opportunities to create shareholder value,' he said.
Besides Sky@eleven, SPH's property ventures include Paragon, a prime retail and office complex in Orchard Road. The mall recently got an $82 million face-lift and boasts a new facade, It has a 100 per cent occupancy rate.
SPH also has another retail property, Clementi Mall, in its portfolio.
The company, with NTUC FairPrice and NTUC Income, won the mall in a tender in November 2009, in which the consortium put in the top bid of $542 million.
'With Paragon's winning track record, I am confident the development of the new mall, which is scheduled to begin operations in the first half of 2011, will undoubtedly be another success for SPH,' Dr Tan said.
SPH's counter lost 11 cents or 2.9 per cent to close at $3.68 yesterday amid a broad market retreat.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Track record: Dr Tan (left) with Mr Seow, who said that Sky@eleven has delivered good returns to SPH shareholders and he remains on the lookout for land; and that SPH is open to buying sites in prime districts as well as suburban plots
SPH on look-out for attractive residential sites
SPH unit holds completion ceremony for Sky@eleven
By UMA SHANKARI
SINGAPORE Press Holdings' property unit is on the look-out for residential sites to buy, says the unit's executive director Seow Choke Meng.
Times Development, a wholly owned subsidiary of the media group, yesterday held the completion ceremony for its maiden residential project Sky@eleven.
All apartments and penthouses in the 273-unit development off Thomson Road were snapped up within 30 hours during the property's January 2007 launch.
The freehold condo obtained its temporary occupation permit last month.
Speaking to reporters, Mr Seow said that the project has delivered good returns to SPH shareholders and he remains on the lookout for land.
'We are still looking for sites for residential development,' he said. SPH is open to buying sites in prime districts as well as suburban plots, he said.
But it will only pick plots that can deliver returns as good as Sky@eleven did, he said.
SPH chairman Tony Tan said that the completion of Sky@eleven has proven that the company can deliver more than media products. 'It is a testament to SPH's growing versatility, dynamism and willingness to seek opportunities to create shareholder value,' he said.
Besides Sky@eleven, SPH's property ventures include Paragon, a prime retail and office complex in Orchard Road. The mall recently got an $82 million face-lift and boasts a new facade, It has a 100 per cent occupancy rate.
SPH also has another retail property, Clementi Mall, in its portfolio.
The company, with NTUC FairPrice and NTUC Income, won the mall in a tender in November 2009, in which the consortium put in the top bid of $542 million.
'With Paragon's winning track record, I am confident the development of the new mall, which is scheduled to begin operations in the first half of 2011, will undoubtedly be another success for SPH,' Dr Tan said.
SPH's counter lost 11 cents or 2.9 per cent to close at $3.68 yesterday amid a broad market retreat.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Track record: Dr Tan (left) with Mr Seow, who said that Sky@eleven has delivered good returns to SPH shareholders and he remains on the lookout for land; and that SPH is open to buying sites in prime districts as well as suburban plots
BT : OCBC picks UE to build Orchard hotel-cum-mall
Business Times - 08 Jun 2010
OCBC picks UE to build Orchard hotel-cum-mall
Redevelopment of Specialist Centre, Hotel Phoenix site to cost some $550m
By CONRAD TAN
By CONRAD TAN OCBC Bank has appointed property group United Engineers to build a hotel and shopping mall at the former Specialists' Shopping Centre and Hotel Phoenix site at Somerset.
The project will cost some $550 million to develop and is expected to be completed by the second half of 2013, according to UE. When completed, the entire project will be sold to OCBC.
That arrangement allows OCBC to retain ownership of the prime Orchard Road property after the redevelopment is complete. Under rules introduced by the Monetary Authority of Singapore in 2000 to separate banks' financial activities from their non-financial activities, Singapore banks cannot engage in developing or managing hotels or other properties, although they are allowed to hold properties for investment.
OCBC had said in March that it was in discussions with UE to redevelop the site, which sits between the recently opened 313@Somerset and Orchard Central shopping malls.
UE will develop the site and also arrange for its financing, OCBC said in a statement yesterday.
When contacted, an OCBC spokesman declined to say how much the bank is paying UE in development fees.
The fees 'are expected to contribute positively' to UE's future earnings, the developer said in a separate statement.
UE expects to start construction on the site next month.
It will fund the project with a mix of its own cash and bank loans.
It will develop the project through two wholly owned special-purpose vehicles - UE Orchard and UE Somerset.
UE Orchard, which will have an issued share capital of $500,000, will be responsible for the construction of the hotel and retail mall, as well as a pedestrian bridge linking the new development to the former Orchard Emerald site, which is owned by OCBC's insurance unit, Great Eastern.
UE Somerset, which will have an issued share capital of $200,000, will develop an underpass that will also link the new development to the former Orchard Emerald site.
Upon completion of the project, UE Orchard and UE Somerset will be sold to OCBC, which has agreed to buy both companies' shares and repay any outstanding shareholders' loans - money owed to their parent, UE - at the time.
OCBC declined to say how much it expects to pay UE for the entire project on completion, but the price will be based on the net tangible assets of UE Orchard and UE Somerset at the time, plus the amount of any outstanding shareholders' loans.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
OCBC picks UE to build Orchard hotel-cum-mall
Redevelopment of Specialist Centre, Hotel Phoenix site to cost some $550m
By CONRAD TAN
By CONRAD TAN OCBC Bank has appointed property group United Engineers to build a hotel and shopping mall at the former Specialists' Shopping Centre and Hotel Phoenix site at Somerset.
The project will cost some $550 million to develop and is expected to be completed by the second half of 2013, according to UE. When completed, the entire project will be sold to OCBC.
That arrangement allows OCBC to retain ownership of the prime Orchard Road property after the redevelopment is complete. Under rules introduced by the Monetary Authority of Singapore in 2000 to separate banks' financial activities from their non-financial activities, Singapore banks cannot engage in developing or managing hotels or other properties, although they are allowed to hold properties for investment.
OCBC had said in March that it was in discussions with UE to redevelop the site, which sits between the recently opened 313@Somerset and Orchard Central shopping malls.
UE will develop the site and also arrange for its financing, OCBC said in a statement yesterday.
When contacted, an OCBC spokesman declined to say how much the bank is paying UE in development fees.
The fees 'are expected to contribute positively' to UE's future earnings, the developer said in a separate statement.
UE expects to start construction on the site next month.
It will fund the project with a mix of its own cash and bank loans.
It will develop the project through two wholly owned special-purpose vehicles - UE Orchard and UE Somerset.
UE Orchard, which will have an issued share capital of $500,000, will be responsible for the construction of the hotel and retail mall, as well as a pedestrian bridge linking the new development to the former Orchard Emerald site, which is owned by OCBC's insurance unit, Great Eastern.
UE Somerset, which will have an issued share capital of $200,000, will develop an underpass that will also link the new development to the former Orchard Emerald site.
Upon completion of the project, UE Orchard and UE Somerset will be sold to OCBC, which has agreed to buy both companies' shares and repay any outstanding shareholders' loans - money owed to their parent, UE - at the time.
OCBC declined to say how much it expects to pay UE for the entire project on completion, but the price will be based on the net tangible assets of UE Orchard and UE Somerset at the time, plus the amount of any outstanding shareholders' loans.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
TODAY ONLINE : An eerily quiet May
An eerily quiet May
But while buyers are subdued, developers keep on bidding ...
Updated 12:33 PM Jun 04, 2010
by Colin Tan
The ongoing European debt crisis has had greater success in cooling Singapore's red-hot private housing market than a cluster of anti-speculation measures or even the recent announcement of a sharply-accelerated Government land supply programme.
Show flats, which at times have resembled crowded scenes at a sale, have grown eerily quiet. This is partly because many developers have delayed their project launches; but there is no denying the huge dent in market confidence.
Compared to a very vibrant April, feedback from housing agents described May as a total washout.
One agent who closed six deals for completed properties in the secondary market in April, drew a blank for the whole month of May. Agents relate that some of their peers who normally guard their turf fiercely, are now more than willing to co-broke.
Apartment owners are also starting to get more unsolicited calls asking them if they are willing to sell their properties. Opening their letter boxes, they find them filled with brochures and flyers. Their mobile phones are receiving frequent SMSes from unfamiliar agents.
Especially prone are those who have bought properties over the past six months. For them, the scare tactics begin. Owners, especially those known to be active sellers, are urged to sell their properties before the market begins to correct.
These efforts, coming consistently from almost every other agent they meet, are beginning to take effect and are really giving some owners the jitters.
It is a nervous market out there, especially for those who are highly geared.
However, amid all these desperate moves by agents, developers continue to bid higher prices for housing sites.
In the most recent tender, a 99-year condo site at Upper Serangoon Road, close to the Potong Pasir MRT station, received the second highest bid price ever in Singapore's Rest of Central region.
This result can mean two things - either developers have a different perspective on the market, or, they are confident that they can transfer ownership of the individual apartments to investors before any price correction can take place.
Either way, this is not good news for genuine homebuyers.
So, what can we expect in terms of housing prices going forward?
If the market remains downcast for May and June, prices cannot come down in the second quarter for the very simple reason that there would be very little sales. At most, they will remain at April's price levels.
Can we expect a price correction soon? It depends. Will the debt crisis in Europe go away soon? I suspect it will but because the problems there are so deep-seated, it is not the end of the story and the problems will resurface.
The writer is head of research and consultancy at Chesterton Suntec International.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
But while buyers are subdued, developers keep on bidding ...
Updated 12:33 PM Jun 04, 2010
by Colin Tan
The ongoing European debt crisis has had greater success in cooling Singapore's red-hot private housing market than a cluster of anti-speculation measures or even the recent announcement of a sharply-accelerated Government land supply programme.
Show flats, which at times have resembled crowded scenes at a sale, have grown eerily quiet. This is partly because many developers have delayed their project launches; but there is no denying the huge dent in market confidence.
Compared to a very vibrant April, feedback from housing agents described May as a total washout.
One agent who closed six deals for completed properties in the secondary market in April, drew a blank for the whole month of May. Agents relate that some of their peers who normally guard their turf fiercely, are now more than willing to co-broke.
Apartment owners are also starting to get more unsolicited calls asking them if they are willing to sell their properties. Opening their letter boxes, they find them filled with brochures and flyers. Their mobile phones are receiving frequent SMSes from unfamiliar agents.
Especially prone are those who have bought properties over the past six months. For them, the scare tactics begin. Owners, especially those known to be active sellers, are urged to sell their properties before the market begins to correct.
These efforts, coming consistently from almost every other agent they meet, are beginning to take effect and are really giving some owners the jitters.
It is a nervous market out there, especially for those who are highly geared.
However, amid all these desperate moves by agents, developers continue to bid higher prices for housing sites.
In the most recent tender, a 99-year condo site at Upper Serangoon Road, close to the Potong Pasir MRT station, received the second highest bid price ever in Singapore's Rest of Central region.
This result can mean two things - either developers have a different perspective on the market, or, they are confident that they can transfer ownership of the individual apartments to investors before any price correction can take place.
Either way, this is not good news for genuine homebuyers.
So, what can we expect in terms of housing prices going forward?
If the market remains downcast for May and June, prices cannot come down in the second quarter for the very simple reason that there would be very little sales. At most, they will remain at April's price levels.
Can we expect a price correction soon? It depends. Will the debt crisis in Europe go away soon? I suspect it will but because the problems there are so deep-seated, it is not the end of the story and the problems will resurface.
The writer is head of research and consultancy at Chesterton Suntec International.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : Share a flat
Jun 7, 2010
Share a flat
More than 600 families given roof over their heads under HDB scheme
By Carolyn Quek
· WAITING OR NOT ELIGIBLE FOR PUBLIC RENTAL FLAT
· CAN'T AFFORD TO BUY A FLAT
· ANOTHER OPTION FOR FAMILIES
FAMILIES down on their luck have been able to get a roof over their heads through a year-old Housing Board scheme to find them interim housing.
More than 600 families from a list of 1,830 have found rental homes for the short term in flats in older districts, which are slated for demolition.
Many of the tenants are families in financial difficulties, like Mr Muhammad, a logistics supervisor and sole breadwinner who could not keep up with payments on a four-room resale flat he bought in 2005.
In April last year, he sold his flat in Yishun and moved into his sister-in-law's home.
With the addition of his family of four, there were 12 people in her four-room flat, and his nephews had to sleep on mattresses in the living room.
'I felt embarrassed so I kept looking for another place to stay,' said Mr Muhammad, 49, who did not want to give his full name.
The father of a daughter, 15, and son, 11, could not front the cash for a three- room resale flat and was not eligible for a rental flat as he was earning more than $1,500 a month.
The housing authority offered him another option in an Interim Rental Housing (IRH) three-room flat in Block 28, Toa Payoh Lorong 6. The block is scheduled to be knocked down in a few years' time under the Selective En-bloc Redevelopment Scheme.
The initiative seeks to help families 'facing a transition in their housing arrangement', said the HDB: In other words, those who need temporary shelter while they work towards arranging longer-term accommodation.
Of the 600 families, 87 have moved on, either to permanent rental housing or their own flats.
Households that qualify include those already in the rental queue but in urgent need of shelter, and households in financial hardship downgrading to smaller flats which are still being built.
Households which qualify for the scheme sign a renewable six-month contract and are able to move into their temporary homes within a month.
The IRH units in Toa Payoh, Havelock Road and Bedok South will be managed for three years by EM Services.
Rent is kept low by having two families share one three-room flat, which normally rents for about $1,200 a month.
Mr Muhammad, his homemaker wife and two children moved in at the end of March, paying $400 for one room in the flat.
The other family, Madam Rasidah Ali, 39, her husband and daughter, moved in about two months later. They, too, had chalked up arrears on a flat in Yishun, and are waiting for a new two-room flat, which will be ready in two years.
Neither family had a say in their choice of flatmates but EM Services tries to pair families of similar backgrounds, HDB explained.
Mr Muhammad said he had heard about flatmates on the scheme quarrelling, but the two families in his flat have been getting along.
Madam Rasidah, a cook in a fast-food restaurant, became friends with Mr Muhammad's wife, who looks after her 11-year-old daughter while she is at work.
Both families also share groceries and compromise on other matters such as the use of the bathroom, especially during 'the peak period' on weekday mornings.
'It was awkward initially but we have to get along,' Madam Rasidah said.
'You can say I'm quite lucky to get a good family.'
Mr Muhammad, who is saving up to buy a flat, said: 'Having your own home is more comfortable and convenient, but I don't know how long I will have to wait before I can buy my own place.
'At least I am no longer troubling my sister-in-law.'
carolynq@sph.com.sg
Mr Muhammad is paying $400 a month for his flat-share while saving for a home. -- ST PHOTO: SAMUEL HE
Share a flat
More than 600 families given roof over their heads under HDB scheme
By Carolyn Quek
· WAITING OR NOT ELIGIBLE FOR PUBLIC RENTAL FLAT
· CAN'T AFFORD TO BUY A FLAT
· ANOTHER OPTION FOR FAMILIES
FAMILIES down on their luck have been able to get a roof over their heads through a year-old Housing Board scheme to find them interim housing.
More than 600 families from a list of 1,830 have found rental homes for the short term in flats in older districts, which are slated for demolition.
Many of the tenants are families in financial difficulties, like Mr Muhammad, a logistics supervisor and sole breadwinner who could not keep up with payments on a four-room resale flat he bought in 2005.
In April last year, he sold his flat in Yishun and moved into his sister-in-law's home.
With the addition of his family of four, there were 12 people in her four-room flat, and his nephews had to sleep on mattresses in the living room.
'I felt embarrassed so I kept looking for another place to stay,' said Mr Muhammad, 49, who did not want to give his full name.
The father of a daughter, 15, and son, 11, could not front the cash for a three- room resale flat and was not eligible for a rental flat as he was earning more than $1,500 a month.
The housing authority offered him another option in an Interim Rental Housing (IRH) three-room flat in Block 28, Toa Payoh Lorong 6. The block is scheduled to be knocked down in a few years' time under the Selective En-bloc Redevelopment Scheme.
The initiative seeks to help families 'facing a transition in their housing arrangement', said the HDB: In other words, those who need temporary shelter while they work towards arranging longer-term accommodation.
Of the 600 families, 87 have moved on, either to permanent rental housing or their own flats.
Households that qualify include those already in the rental queue but in urgent need of shelter, and households in financial hardship downgrading to smaller flats which are still being built.
Households which qualify for the scheme sign a renewable six-month contract and are able to move into their temporary homes within a month.
The IRH units in Toa Payoh, Havelock Road and Bedok South will be managed for three years by EM Services.
Rent is kept low by having two families share one three-room flat, which normally rents for about $1,200 a month.
Mr Muhammad, his homemaker wife and two children moved in at the end of March, paying $400 for one room in the flat.
The other family, Madam Rasidah Ali, 39, her husband and daughter, moved in about two months later. They, too, had chalked up arrears on a flat in Yishun, and are waiting for a new two-room flat, which will be ready in two years.
Neither family had a say in their choice of flatmates but EM Services tries to pair families of similar backgrounds, HDB explained.
Mr Muhammad said he had heard about flatmates on the scheme quarrelling, but the two families in his flat have been getting along.
Madam Rasidah, a cook in a fast-food restaurant, became friends with Mr Muhammad's wife, who looks after her 11-year-old daughter while she is at work.
Both families also share groceries and compromise on other matters such as the use of the bathroom, especially during 'the peak period' on weekday mornings.
'It was awkward initially but we have to get along,' Madam Rasidah said.
'You can say I'm quite lucky to get a good family.'
Mr Muhammad, who is saving up to buy a flat, said: 'Having your own home is more comfortable and convenient, but I don't know how long I will have to wait before I can buy my own place.
'At least I am no longer troubling my sister-in-law.'
carolynq@sph.com.sg
Mr Muhammad is paying $400 a month for his flat-share while saving for a home. -- ST PHOTO: SAMUEL HE
BT : Hotel rates seen rising 10-15%
Business Times - 07 Jun 2010
Hotel rates seen rising 10-15%
Occupancy levels could rise 5-10 percentage points
By NISHA RAMCHANDANI
(SINGAPORE) With tourist arrivals bouncing back, room rates and occupancy levels at Singapore hotels continue to rise, hosing down worries that the 4,000-plus rooms added by Resorts World Sentosa (RWS) and Marina Bay Sands (MBS) would depress the sector.
According to consultancy HVS Global Hospitality Services, the average room rate will rise 10-15 per cent this year from 2009's $191. And HVS managing director David Ling says that there is potential for rates 'to go higher'.
Despite the new rooms at the integrated resorts, Mr Ling reckons demand will outpace supply because the resorts are 'demand generators'.
He expects overall occupancy to climb 5-10 percentage points from last year's 76 per cent.
'MBS is a huge hotel,' he said. 'Sure, it will affect neighbouring properties in the short term - but consider the pick-up in arrivals and the pipeline of events. With the Singapore Airshow, Youth Olympic Games and Grand Prix, it will be a record year.'
In a recent report, Credit Suisse said that the casinos should boost visitor numbers as much as 20 per cent this year.
Singapore's tourism industry also benefits from the rebound of regional economies such as China, India, Malaysia and Indonesia. 'If those places are doing well, their people have more disposable income to travel,' Mr Ling said.
At the same time, the political upheaval in Thailand could lead travellers to look for alternative destinations, in which case neighbouring countries such as Singapore, Malaysia and Indonesia could pick up some of the spoils.
According to the Singapore Tourism Board, overall hotel room revenue rose a sharp 36.5 per cent year on year to $158 million in April. It was supported by events, such as Food&HotelAsia, and the six-day disruption to Europe-bound air traffic. The figures for May have yet to be released.
The average occupancy rate (AOR) jumped 15 percentage points in April to 85 per cent from a year back, while the average room rate (ARR) increased 12.2 points to $211. Revenue per available room (RevPAR) surged 36.1 per cent to $179.
At the Royal Plaza on Scotts, business was very healthy last month, with ARR, AOR and RevPAR all much higher year on year.
ARR was up 30 points to $280, AOR climbed 12 points to 90 per cent and RevPAR 46 points to $248.
The meetings, incentives, conventions and exhibitions (Mice) industry is also picking up, industry players say.
'We're getting a lot more corporate enquiries for meetings,' said Nancy Tan, managing director of conference organiser Ace:Daytons Direct. 'Last year, the market was quite bad as they held back.'
As companies cut costs during the downturn, budgets and corporate meetings were cut back.
But Ms Tan said that companies are still cautious about how much they pay. 'That is something we'll have to manage, since manpower costs have gone up,' she said.
Suntec Singapore expects a 10 per cent increase in the number of events it hosts this year and a 5-10 per cent increase in visitor numbers.
Last year it hosted 1,408 events, down from 1,575 in 2008.
'We expect a stellar performance this year,' said director of sales and client services Ong Wee Min.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Hotel rates seen rising 10-15%
Occupancy levels could rise 5-10 percentage points
By NISHA RAMCHANDANI
(SINGAPORE) With tourist arrivals bouncing back, room rates and occupancy levels at Singapore hotels continue to rise, hosing down worries that the 4,000-plus rooms added by Resorts World Sentosa (RWS) and Marina Bay Sands (MBS) would depress the sector.
According to consultancy HVS Global Hospitality Services, the average room rate will rise 10-15 per cent this year from 2009's $191. And HVS managing director David Ling says that there is potential for rates 'to go higher'.
Despite the new rooms at the integrated resorts, Mr Ling reckons demand will outpace supply because the resorts are 'demand generators'.
He expects overall occupancy to climb 5-10 percentage points from last year's 76 per cent.
'MBS is a huge hotel,' he said. 'Sure, it will affect neighbouring properties in the short term - but consider the pick-up in arrivals and the pipeline of events. With the Singapore Airshow, Youth Olympic Games and Grand Prix, it will be a record year.'
In a recent report, Credit Suisse said that the casinos should boost visitor numbers as much as 20 per cent this year.
Singapore's tourism industry also benefits from the rebound of regional economies such as China, India, Malaysia and Indonesia. 'If those places are doing well, their people have more disposable income to travel,' Mr Ling said.
At the same time, the political upheaval in Thailand could lead travellers to look for alternative destinations, in which case neighbouring countries such as Singapore, Malaysia and Indonesia could pick up some of the spoils.
According to the Singapore Tourism Board, overall hotel room revenue rose a sharp 36.5 per cent year on year to $158 million in April. It was supported by events, such as Food&HotelAsia, and the six-day disruption to Europe-bound air traffic. The figures for May have yet to be released.
The average occupancy rate (AOR) jumped 15 percentage points in April to 85 per cent from a year back, while the average room rate (ARR) increased 12.2 points to $211. Revenue per available room (RevPAR) surged 36.1 per cent to $179.
At the Royal Plaza on Scotts, business was very healthy last month, with ARR, AOR and RevPAR all much higher year on year.
ARR was up 30 points to $280, AOR climbed 12 points to 90 per cent and RevPAR 46 points to $248.
The meetings, incentives, conventions and exhibitions (Mice) industry is also picking up, industry players say.
'We're getting a lot more corporate enquiries for meetings,' said Nancy Tan, managing director of conference organiser Ace:Daytons Direct. 'Last year, the market was quite bad as they held back.'
As companies cut costs during the downturn, budgets and corporate meetings were cut back.
But Ms Tan said that companies are still cautious about how much they pay. 'That is something we'll have to manage, since manpower costs have gone up,' she said.
Suntec Singapore expects a 10 per cent increase in the number of events it hosts this year and a 5-10 per cent increase in visitor numbers.
Last year it hosted 1,408 events, down from 1,575 in 2008.
'We expect a stellar performance this year,' said director of sales and client services Ong Wee Min.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Meng Garden back on the market
Business Times - 07 Jun 2010
Meng Garden back on the market
Guide price of $135m is below previous attempt in 2007
By KALPANA RASHIWALA
MENG Garden Apartments off Killiney Road is back on the market, this time with a lower price tag than when it was previously offered in July 2007 and with 100 per cent consent from the owners.
What this means is that Meng Garden's buyer will be spared the hassle of going to the Strata Titles Board for approval of the collective sale of the freehold property, which has a land area of 35,639 square feet. It is zoned for residential use with a 2.8 plot ratio and height control of 10 storeys. The site could potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft.
The latest 'guide price' of $135 million works out to about $1,360 per square foot of potential gross floor area inclusive of an estimated $681,000 development charge (DC). This unit land price is 8.6 per cent below the 2007 asking price of $1,488 psf per plot ratio (psf ppr) including prevailing DC at the time. Back then, the property was being marketed through an expression of interest exercise as the requisite majority 80 per cent consent level from owners had yet to be secured.
This time, however, marketing agent CB Richard Ellis - which had also handled the 2007 attempt - has clinched the approval of all Meng Garden's owners. The existing eight-storey block comprises 26 apartments and a penthouse; over half of the units are owned by an extended Lim family.
Meng Garden, located on Lloyd Road, was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family, according to an earlier report.
In the fourth quarter last year, the Mitre Hotel site at Killiney Road, which is behind Meng Garden, was sold for slightly above $121 million or nearly $1,100 psf ppr including DC.
Based on Meng Garden's guide price of $1,360 psf ppr, the breakeven cost for a new apartment project would be around $1,900-2,000 psf, say market watchers.
The tender for Meng Garden closes on July 7.
Jeremy Lake, CBRE executive director of investment properties, says that several local and overseas developers have been monitoring the site closely. 'The site enjoys the convenience and vibrancy of the Killiney Road neighbourhood, yet is within quiet surroundings. Somerset MRT Station is a short walk away and the Somerset area has been recently rejuvenated with the opening of new malls like Orchard Central and 313@ Somerset. There is also minimal DC exposure on this site.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meng Garden: Collective sale this time round has 100% consent from the owners, compared to less than 80% previously
Meng Garden back on the market
Guide price of $135m is below previous attempt in 2007
By KALPANA RASHIWALA
MENG Garden Apartments off Killiney Road is back on the market, this time with a lower price tag than when it was previously offered in July 2007 and with 100 per cent consent from the owners.
What this means is that Meng Garden's buyer will be spared the hassle of going to the Strata Titles Board for approval of the collective sale of the freehold property, which has a land area of 35,639 square feet. It is zoned for residential use with a 2.8 plot ratio and height control of 10 storeys. The site could potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft.
The latest 'guide price' of $135 million works out to about $1,360 per square foot of potential gross floor area inclusive of an estimated $681,000 development charge (DC). This unit land price is 8.6 per cent below the 2007 asking price of $1,488 psf per plot ratio (psf ppr) including prevailing DC at the time. Back then, the property was being marketed through an expression of interest exercise as the requisite majority 80 per cent consent level from owners had yet to be secured.
This time, however, marketing agent CB Richard Ellis - which had also handled the 2007 attempt - has clinched the approval of all Meng Garden's owners. The existing eight-storey block comprises 26 apartments and a penthouse; over half of the units are owned by an extended Lim family.
Meng Garden, located on Lloyd Road, was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family, according to an earlier report.
In the fourth quarter last year, the Mitre Hotel site at Killiney Road, which is behind Meng Garden, was sold for slightly above $121 million or nearly $1,100 psf ppr including DC.
Based on Meng Garden's guide price of $1,360 psf ppr, the breakeven cost for a new apartment project would be around $1,900-2,000 psf, say market watchers.
The tender for Meng Garden closes on July 7.
Jeremy Lake, CBRE executive director of investment properties, says that several local and overseas developers have been monitoring the site closely. 'The site enjoys the convenience and vibrancy of the Killiney Road neighbourhood, yet is within quiet surroundings. Somerset MRT Station is a short walk away and the Somerset area has been recently rejuvenated with the opening of new malls like Orchard Central and 313@ Somerset. There is also minimal DC exposure on this site.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meng Garden: Collective sale this time round has 100% consent from the owners, compared to less than 80% previously
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