Jul 15, 2010
Puzzled by tax rationale on owner-occupied homes
I AM gratified by the Inland Revenue Authority of Singapore's reply on Tuesday ('Property tax not based on market rental forecasts') that property tax is pegged to a property's annual value, which is determined by market rentals of similar properties at the time of assessment. My problem with predicating such a policy on market rental values is that owner-occupied properties derive no gain as long as owners reside in them.
So this category should be spared from tax rate fluctuations applicable to investors who derive rental incomes according to market value.
Second, reviewing property annual values yearly contradicts the previous practice of predicating the value on stable rental conditions over a period of time. The yearly review is akin to making a projection.
Again, any increase or decrease would have no effect on owner-occupied properties. So it is unfair to subject owner-occupiers to unrelated fluctuations. For instance, a property bought in the 1980s would be subjected to property tax that is four to five times higher over the next 30 years, although the same owner may be residing there all this while.
It is unrealistic and unfair to ask residents of owner-occupied homes to pay rapidly increasing property tax based on an intangible value. Owner-occupied properties deserve better consideration.
Paul Chan
Tuesday, July 20, 2010
ST : New rules kick in today
Jul 15, 2010
New rules kick in today
NEW rules aimed at creating more clarity over collective sales kick in today.
A key change centres on when an attempt to sell an estate en bloc fails to garner enough backing from owners.
To discourage repeated attempts when there is insufficient interest, a two-year restriction period will be imposed after a failed collective sale attempt.
During this period, the first retry to convene an extraordinary general meeting to reappoint a sale committee will require the agreement of 50per cent by share value, or of the total number, of owners.
This is up from the current level of 20per cent by share value or 25per cent of the total number of owners.
For the second and subsequent retries, approval from 80per cent is needed.
To speed up the sale process, the Strata Titles Board (STB) will focus on its role as a mediator, instead of also trying to make rulings in disputed cases.
Some recent attempted collective sales, such as Horizon Towers, have become bogged down in disputes that have dragged on for two years or more.
The new rules and other amendments to the Land Titles (Strata) Act were passed by Parliament on May18.
New rules kick in today
NEW rules aimed at creating more clarity over collective sales kick in today.
A key change centres on when an attempt to sell an estate en bloc fails to garner enough backing from owners.
To discourage repeated attempts when there is insufficient interest, a two-year restriction period will be imposed after a failed collective sale attempt.
During this period, the first retry to convene an extraordinary general meeting to reappoint a sale committee will require the agreement of 50per cent by share value, or of the total number, of owners.
This is up from the current level of 20per cent by share value or 25per cent of the total number of owners.
For the second and subsequent retries, approval from 80per cent is needed.
To speed up the sale process, the Strata Titles Board (STB) will focus on its role as a mediator, instead of also trying to make rulings in disputed cases.
Some recent attempted collective sales, such as Horizon Towers, have become bogged down in disputes that have dragged on for two years or more.
The new rules and other amendments to the Land Titles (Strata) Act were passed by Parliament on May18.
ST : More collective sales ahead, but boom unlikely
Jul 15, 2010
More collective sales ahead, but boom unlikely
By Joyce Teo
THE number of collective sales is tipped to rise in the coming months as developers replenish land banks - but it is too early to talk of another boom.
Two key factors - large-scale government land sales on the boil and a prime segment stuck in the doldrums - will keep a cap on the sort of 'en bloc' mania seen in 2007.
But property experts say the market for such sales has certainly improved this year, especially among smaller developers, and that is energising more owners keen to sell.
Credo Real Estate says there have been 16 collective sales worth $786million completed this year, compared with one last year and eight in 2008.
Consultants expect more launches over the coming months as many estates which initiated the long sales process around last year or early this year will be ready to go to market.
Last week, Villa D'Este in Dalvey Road was launched for sale at a guide price of $115million, or about $2,343 per sq ft per plot ratio (psf ppr).
And Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million, or about $688 psf ppr, inclusive of a $2.38million development charge.
Consultants said they have been fielding a steady stream of inquiries from potential collective sellers over the past six to nine months.
As in the past, such inquiries pick up whenever news of a successful collective sale hits the headlines.
'More launches and sales will come but a lot also depends on owners' expectations. It's whether they think they can get a similar replacement property with the en bloc premium,' said Colliers International's executive director of investment sales, Mr Ho Eng Joo.
Experts noted that there is a price mismatch in the prime sector, with owners' expectations higher than what the major developers, who are still cautious, are willing to pay.
As for buyers, they are keen to buy freehold land in collective sales because it is not available from the Government, they said.
The Government's land sales programme comprises large 99-year leasehold sites targeted at the mass market. Unlike a collective sale, a government land purchase is straightforward and fast.
Experts say small- and mid-sized private developers still need to replenish their land banks and they cannot afford the big government sites coming up for sale.
Indeed, the collective sale deals completed this year were all done by boutique developers. Apart from the recently concluded $137million sale of Meng Garden Apartments off Killiney Road, the other deals were all priced below $100million.
The recent successful collective sales are in mostly attractive city-fringe areas such as Balestier, or areas where no government sites will be offered for sale, said Mr Ho.
Credo Real Estate managing director Karamjit Singh expects to see more medium-sized sites of around $100million sold in the collective-sale market this year rather than large sites.
'Between now and December, there may be another 20 or so successful deals but these are likely to be small sites meant for small-sized units of several hundred square feet,' said Mr Jeffrey Goh, head of investment sales at HSR International.
'Smaller sites priced below $100million have a higher chance of success than prime ones priced above that amount.'
The flats on these sites are usually quite old, with owners who are thus more realistic about price, he said. That makes it easier to obtain the 80per cent approval for the sale to proceed.
New mass market launches may be going for benchmark prices but sellers in collective-sale deals can find better value in the resale market for replacing their homes, said Mr Singh. Also, a lower- priced site would attract a bigger pool of buyers than a higher-priced one, said Mr Ho. 'The risks are manageable.'
Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million. Consultants expect more launches over the coming months, but government land sales and a subdued prime segment are expected to keep a cap on the numbers. -- PHOTO: COLLIERS INTERNATIONAL
More collective sales ahead, but boom unlikely
By Joyce Teo
THE number of collective sales is tipped to rise in the coming months as developers replenish land banks - but it is too early to talk of another boom.
Two key factors - large-scale government land sales on the boil and a prime segment stuck in the doldrums - will keep a cap on the sort of 'en bloc' mania seen in 2007.
But property experts say the market for such sales has certainly improved this year, especially among smaller developers, and that is energising more owners keen to sell.
Credo Real Estate says there have been 16 collective sales worth $786million completed this year, compared with one last year and eight in 2008.
Consultants expect more launches over the coming months as many estates which initiated the long sales process around last year or early this year will be ready to go to market.
Last week, Villa D'Este in Dalvey Road was launched for sale at a guide price of $115million, or about $2,343 per sq ft per plot ratio (psf ppr).
And Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million, or about $688 psf ppr, inclusive of a $2.38million development charge.
Consultants said they have been fielding a steady stream of inquiries from potential collective sellers over the past six to nine months.
As in the past, such inquiries pick up whenever news of a successful collective sale hits the headlines.
'More launches and sales will come but a lot also depends on owners' expectations. It's whether they think they can get a similar replacement property with the en bloc premium,' said Colliers International's executive director of investment sales, Mr Ho Eng Joo.
Experts noted that there is a price mismatch in the prime sector, with owners' expectations higher than what the major developers, who are still cautious, are willing to pay.
As for buyers, they are keen to buy freehold land in collective sales because it is not available from the Government, they said.
The Government's land sales programme comprises large 99-year leasehold sites targeted at the mass market. Unlike a collective sale, a government land purchase is straightforward and fast.
Experts say small- and mid-sized private developers still need to replenish their land banks and they cannot afford the big government sites coming up for sale.
Indeed, the collective sale deals completed this year were all done by boutique developers. Apart from the recently concluded $137million sale of Meng Garden Apartments off Killiney Road, the other deals were all priced below $100million.
The recent successful collective sales are in mostly attractive city-fringe areas such as Balestier, or areas where no government sites will be offered for sale, said Mr Ho.
Credo Real Estate managing director Karamjit Singh expects to see more medium-sized sites of around $100million sold in the collective-sale market this year rather than large sites.
'Between now and December, there may be another 20 or so successful deals but these are likely to be small sites meant for small-sized units of several hundred square feet,' said Mr Jeffrey Goh, head of investment sales at HSR International.
'Smaller sites priced below $100million have a higher chance of success than prime ones priced above that amount.'
The flats on these sites are usually quite old, with owners who are thus more realistic about price, he said. That makes it easier to obtain the 80per cent approval for the sale to proceed.
New mass market launches may be going for benchmark prices but sellers in collective-sale deals can find better value in the resale market for replacing their homes, said Mr Singh. Also, a lower- priced site would attract a bigger pool of buyers than a higher-priced one, said Mr Ho. 'The risks are manageable.'
Melrose Court, off Balestier Road, was put up for sale yesterday with a guide price of $48million. Consultants expect more launches over the coming months, but government land sales and a subdued prime segment are expected to keep a cap on the numbers. -- PHOTO: COLLIERS INTERNATIONAL
ST : Failed HK flat sale: Police raid developer's HQ
Jul 15, 2010
Failed HK flat sale: Police raid developer's HQ
Officers seize papers linked to deal on 20 luxury units, including 'world's priciest flat'
HONG KONG: Hong Kong police yesterday raided the headquarters of a major property developer embroiled in a controversy over the collapsed sale of what was billed as the world's priciest flat.
Officers from the financial hub's Commercial Crime Bureau swooped on Henderson Land Development's office in Hong Kong's financial district and took documents believed to be connected to the failed sale.
'As a result of the execution of the search warrants, we have seized a quantity of documents, which will be investigated and looked into further,' said Police Commissioner Tang King Shing.
'Today, we also invited a number of people back to the commercial crime bureau to assist in our investigations. At this moment, the police have arrested no persons concerning this case,' he added.
Henderson Land said it was cooperating with the authorities.
'Our company has provided relevant documents and appointed staff to help in the investigation,' the developer said in an e-mail statement in Chinese.
Inspectors also searched a law firm allegedly connected to the failed sale of luxury flats at the exclusive 39 Conduit Road towers in the city's Mid-Levels residential area, local radio RTHK reported.
'At this stage, it's really hard to tell what's going to come out from the investigation,' said Professor Eddie Hui of the building and real estate department of Hong Kong Polytechnic University.
'Even if the police took some documents from their office, it still does not mean they have committed any wrongdoing. We have to be careful in drawing any premature conclusions.'
Analysts said they expected the Hong Kong developer's shares, which have lagged behind its peers, to come under pressure in the days ahead.
Last month, the Hong Kong government said it was looking into the cancelled sale of 20 multimillion-dollar flats developed by Henderson in Hong Kong, while legislators have been questioning the developer's practices over the past few weeks.
The cancellations included a duplex unit that had fetched a global record price of HK$71,280 (S$12,695) per square foot last October. In the end, only four units were sold in that development, Henderson Land said.
Critics have demanded a probe, asking why the cancellations came to light only eight months after the announcement of the sales, which helped hike prices of the city's luxury residential flats and stoked concerns about a property bubble in the former British colony.
Questions have also been raised about the relatively small deposit that Henderson kept after the failed sales, and why all the buyers appeared to have used the same law firm to process the transactions.
Henderson Land responded with advertisements in major newspapers saying the purchases were genuine and that the company was not connected with the buyers. It has said it will cooperate with the probe.
REUTERS, AGENCE FRANCE-PRESSE, BLOOMBERG
Failed HK flat sale: Police raid developer's HQ
Officers seize papers linked to deal on 20 luxury units, including 'world's priciest flat'
HONG KONG: Hong Kong police yesterday raided the headquarters of a major property developer embroiled in a controversy over the collapsed sale of what was billed as the world's priciest flat.
Officers from the financial hub's Commercial Crime Bureau swooped on Henderson Land Development's office in Hong Kong's financial district and took documents believed to be connected to the failed sale.
'As a result of the execution of the search warrants, we have seized a quantity of documents, which will be investigated and looked into further,' said Police Commissioner Tang King Shing.
'Today, we also invited a number of people back to the commercial crime bureau to assist in our investigations. At this moment, the police have arrested no persons concerning this case,' he added.
Henderson Land said it was cooperating with the authorities.
'Our company has provided relevant documents and appointed staff to help in the investigation,' the developer said in an e-mail statement in Chinese.
Inspectors also searched a law firm allegedly connected to the failed sale of luxury flats at the exclusive 39 Conduit Road towers in the city's Mid-Levels residential area, local radio RTHK reported.
'At this stage, it's really hard to tell what's going to come out from the investigation,' said Professor Eddie Hui of the building and real estate department of Hong Kong Polytechnic University.
'Even if the police took some documents from their office, it still does not mean they have committed any wrongdoing. We have to be careful in drawing any premature conclusions.'
Analysts said they expected the Hong Kong developer's shares, which have lagged behind its peers, to come under pressure in the days ahead.
Last month, the Hong Kong government said it was looking into the cancelled sale of 20 multimillion-dollar flats developed by Henderson in Hong Kong, while legislators have been questioning the developer's practices over the past few weeks.
The cancellations included a duplex unit that had fetched a global record price of HK$71,280 (S$12,695) per square foot last October. In the end, only four units were sold in that development, Henderson Land said.
Critics have demanded a probe, asking why the cancellations came to light only eight months after the announcement of the sales, which helped hike prices of the city's luxury residential flats and stoked concerns about a property bubble in the former British colony.
Questions have also been raised about the relatively small deposit that Henderson kept after the failed sales, and why all the buyers appeared to have used the same law firm to process the transactions.
Henderson Land responded with advertisements in major newspapers saying the purchases were genuine and that the company was not connected with the buyers. It has said it will cooperate with the probe.
REUTERS, AGENCE FRANCE-PRESSE, BLOOMBERG
BT : New rules on collective sales from today
Business Times - 15 Jul 2010
New rules on collective sales from today
(SINGAPORE) Amendments to the law governing collective sales - which include tighter rules for repeated attempts at such deals - will take effect from today.
The Ministry of Law gave more details yesterday on how the Land Titles (Strata) (Amendment) Act will apply. For instance, under the new Act, there will be a waiting time of just one hour for the quorum of 30 per cent of share value to be reached at extraordinary general meetings (EGMs). This will apply to all EGMs held on or after the commencement date of the new Act, including those for which notice has been served. Also, the new Act stipulates that once a sales committee (SC) is formed, it will have one year to obtain the first signature for the collective sale agreement (CSA) or face automatic termination.
For existing SCs which have not collected any valid signatures, the one-year period begins on the commencement date of the new Act, regardless of how long they have been in office. For SCs set up after the new Act takes effect, the one-year period begins on the day the SCs are elected at EGMs.
Another key revision to the Act introduces a two-year restriction period after a potential collective sale falls through. Within this period, the first repeated attempt to convene an EGM will require consent from 50 per cent of share value or number of owners. For the second and subsequent repeated attempts, 80 per cent will be needed.
This two-year restriction period will apply to all failed attempts which occur on or after the commencement date of the new Act.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New rules on collective sales from today
(SINGAPORE) Amendments to the law governing collective sales - which include tighter rules for repeated attempts at such deals - will take effect from today.
The Ministry of Law gave more details yesterday on how the Land Titles (Strata) (Amendment) Act will apply. For instance, under the new Act, there will be a waiting time of just one hour for the quorum of 30 per cent of share value to be reached at extraordinary general meetings (EGMs). This will apply to all EGMs held on or after the commencement date of the new Act, including those for which notice has been served. Also, the new Act stipulates that once a sales committee (SC) is formed, it will have one year to obtain the first signature for the collective sale agreement (CSA) or face automatic termination.
For existing SCs which have not collected any valid signatures, the one-year period begins on the commencement date of the new Act, regardless of how long they have been in office. For SCs set up after the new Act takes effect, the one-year period begins on the day the SCs are elected at EGMs.
Another key revision to the Act introduces a two-year restriction period after a potential collective sale falls through. Within this period, the first repeated attempt to convene an EGM will require consent from 50 per cent of share value or number of owners. For the second and subsequent repeated attempts, 80 per cent will be needed.
This two-year restriction period will apply to all failed attempts which occur on or after the commencement date of the new Act.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : 18 buyers vie for each 5-room flat at waterfront project
Jul 14, 2010
18 buyers vie for each 5-room flat at waterfront project
By Joyce Teo
PREMIUM flats at the Housing Board's (HDB) upcoming Punggol waterfront estate has drawn strong interest, with as many as 18 buyers chasing each flat.
Applications for Waterway Terraces, which features premium flats, closed yesterday with a thumping 13,688 applications for just 1,072 homes.
Property experts said the project's waterfront location is the biggest draw.
The five-roomers were hugely popular, attracting 5,594 applicants for the 306 flats available, which makes them 18 times oversubscribed.
The 588 four-room flats in the build-to-order (BTO) project were hot as well with 7,084 applications lodged or 12 times oversubscribed.
Almost 50 per cent of the applicants have not applied for any BTO flats in the past 12 months, said HDB.
Indicative prices range from $374,000 to $458,000 for the five-room flats, $300,000 to $376,000 for four-roomers and $186,000 to $237,000 for three-room flats.
Waterway Terraces will be premium flats, which means they come with fittings such as timber strip flooring in the bedrooms.
The project also has roof gardens, a relatively rare feature in HDB projects, and direct lift access from all blocks to the basement carpark.
The HDB expected Waterway Terraces to be well received but the big turnout of buyers could not trump the HDB record holder, Telok Blangah Towers. Launched in October 2007, this drew 7,970 applications for 400 BTO flats - or nearly 20 times oversubscribed.
Buyers flocked to the Punggol flats as they are the first along the Punggol Waterway to be released.
They are also within walking distance of the Punggol MRT station and other amenities and boast an award-winning design with various premium and eco-features, the HDB said.
Waterway Terraces is being offered under HDB's latest and largest build-to-order flat exercise, which includes two standard BTO projects in Sengkang.
Under the BTO scheme, flats are built only when a certain level of demand for the project is met.
The Sengkang flats were mostly just two to three times oversubscribed but the two-roomers attracted only 200 applications for the 238 units.
The HDB said in a statement yesterday that the absolute number of applicants for the Sengkang projects is comparable with previous BTO launches in the area.
In all, the 2,696 flats in Punggol and Sengkang drew 16,944 applications as of 5pm yesterday. HDB will provide a final update at 2pm today.
'Waterway Terraces' main attraction is its waterfront location and its reasonable pricing,' said real estate firm ERA Asia-Pacific's associate director Eugene Lim.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said a key draw is the project's proximity to the MRT station and the future mall there as not all units will have a waterfront view.
'People are still expecting HDB prices to rise. They are thinking if I don't get it now, the future Punggol projects could be priced even higher,' added Mr Mak.
Indeed, Mr Lim said applicants have a first-mover advantage. 'It's the first waterfront project there. Future ones may be priced higher.
'Some people are thinking that they can resell after eight years for a big profit. It's also a lifestyle that you cannot find in any other HDB project.'
PropNex chief executive Mohamed Ismail said the response shows that 'a lot of people now value lifestyle more than just a basic roof over their heads'.
He said buyers are 'willing to pay a premium for (lifestyle) as they also realise that these projects with special features can appreciate in value far more than other standard HDB projects because of limited supply'.
Buyers can look forward to 7,200 more BTO flats this year, the HDB said.
joyceteo@sph.com.sg
18 buyers vie for each 5-room flat at waterfront project
By Joyce Teo
PREMIUM flats at the Housing Board's (HDB) upcoming Punggol waterfront estate has drawn strong interest, with as many as 18 buyers chasing each flat.
Applications for Waterway Terraces, which features premium flats, closed yesterday with a thumping 13,688 applications for just 1,072 homes.
Property experts said the project's waterfront location is the biggest draw.
The five-roomers were hugely popular, attracting 5,594 applicants for the 306 flats available, which makes them 18 times oversubscribed.
The 588 four-room flats in the build-to-order (BTO) project were hot as well with 7,084 applications lodged or 12 times oversubscribed.
Almost 50 per cent of the applicants have not applied for any BTO flats in the past 12 months, said HDB.
Indicative prices range from $374,000 to $458,000 for the five-room flats, $300,000 to $376,000 for four-roomers and $186,000 to $237,000 for three-room flats.
Waterway Terraces will be premium flats, which means they come with fittings such as timber strip flooring in the bedrooms.
The project also has roof gardens, a relatively rare feature in HDB projects, and direct lift access from all blocks to the basement carpark.
The HDB expected Waterway Terraces to be well received but the big turnout of buyers could not trump the HDB record holder, Telok Blangah Towers. Launched in October 2007, this drew 7,970 applications for 400 BTO flats - or nearly 20 times oversubscribed.
Buyers flocked to the Punggol flats as they are the first along the Punggol Waterway to be released.
They are also within walking distance of the Punggol MRT station and other amenities and boast an award-winning design with various premium and eco-features, the HDB said.
Waterway Terraces is being offered under HDB's latest and largest build-to-order flat exercise, which includes two standard BTO projects in Sengkang.
Under the BTO scheme, flats are built only when a certain level of demand for the project is met.
The Sengkang flats were mostly just two to three times oversubscribed but the two-roomers attracted only 200 applications for the 238 units.
The HDB said in a statement yesterday that the absolute number of applicants for the Sengkang projects is comparable with previous BTO launches in the area.
In all, the 2,696 flats in Punggol and Sengkang drew 16,944 applications as of 5pm yesterday. HDB will provide a final update at 2pm today.
'Waterway Terraces' main attraction is its waterfront location and its reasonable pricing,' said real estate firm ERA Asia-Pacific's associate director Eugene Lim.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said a key draw is the project's proximity to the MRT station and the future mall there as not all units will have a waterfront view.
'People are still expecting HDB prices to rise. They are thinking if I don't get it now, the future Punggol projects could be priced even higher,' added Mr Mak.
Indeed, Mr Lim said applicants have a first-mover advantage. 'It's the first waterfront project there. Future ones may be priced higher.
'Some people are thinking that they can resell after eight years for a big profit. It's also a lifestyle that you cannot find in any other HDB project.'
PropNex chief executive Mohamed Ismail said the response shows that 'a lot of people now value lifestyle more than just a basic roof over their heads'.
He said buyers are 'willing to pay a premium for (lifestyle) as they also realise that these projects with special features can appreciate in value far more than other standard HDB projects because of limited supply'.
Buyers can look forward to 7,200 more BTO flats this year, the HDB said.
joyceteo@sph.com.sg
BT : Changi Motorsports Hub ready by 2012
Business Times - 14 Jul 2010
Changi Motorsports Hub ready by 2012
It will host both local and international racing events
By NISHA RAMCHANDANI
(SINGAPORE) The $330 million Changi Motorsports Hub (CMH) will be up and running by March 2012, in time for the year's racing season, said developer SG Changi at the ground-breaking ceremony yesterday.
The consortium, which pipped both Singapore Agro Agriculture and the Haw Par Corporation-backed Sports Services to operate the CMH for a 30-year period, consists of former Japan GT driver Genji Hashimoto, former Jurong Kart World owner Thia Yoke Kian, Singaporean lawyer Eddie Koh and Fuminori Murahashi, who has experience with events such as Formula Nippon and Super GT.
Located along Aviation Park Road, the 41 hectare sea-facing site will include a Federation Internationale de l'Automobile (FIA) Grade-2 certified four kilometre (km) racetrack, a 1.2 km karting track, a drift track, a bonded warehouse and seating capacity for some 20,000 spectators plus a 10,000-seat temporary grandstand.
With the aim of promoting motorsports in the region, SG Changi is also setting up a racing academy at CMH to groom talent.
'I hope to see more Singaporean youth get involved in motorsports, undergoing proper coaching and training at high-level facilities. It would be an amazing achievement to see a home-grown Singaporean GT driver one day,' said SG Changi's executive chairman Mr Murahashi, speaking at the ground-breaking ceremony yesterday.
The racing academy - which will include programmes from junior kart racing to technical training - is to kick off April 2012, taking in students from countries and regions such as Europe, Korea, China and Japan, in addition to Singapore.
The first intake is likely to be in the region of 50-60 students.
And while SG Changi will only reveal its line-up of racing events in June next year, CMH will host both local and international racing events.
'We are still in the process of discussions,' said Mr Murahashi, though he added that the group will initiate talks to bring in MotoGP, the F1 of motorcycling. The proposed calendar of events includes the Super GT Series, Formula Nippon and the Japanese Formula 3 Series, as well as the Singapore National Championship and the Karting Championship.
At the same time, the consortium is also keen to cater to a wider audience beyond just race fans.
'The product offering has to be consumer-centric, it has to bring fun, excitement and lifestyle elements,' said Singapore Sports Council (SSC) chief executive officer Oon Jin Teik.
The round-the-clock facility will also feature a motor-themed entertainment complex, a motorsports museum, food & beverage and retail outlets as well as a hotel.
It is also likely to be the only 24/7 motorsports facility in the world, Mr Murahashi reckons.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
It thrills: A driver putting on a drifting demonstration after the ground-breaking ceremony yesterday.
Changi Motorsports Hub ready by 2012
It will host both local and international racing events
By NISHA RAMCHANDANI
(SINGAPORE) The $330 million Changi Motorsports Hub (CMH) will be up and running by March 2012, in time for the year's racing season, said developer SG Changi at the ground-breaking ceremony yesterday.
The consortium, which pipped both Singapore Agro Agriculture and the Haw Par Corporation-backed Sports Services to operate the CMH for a 30-year period, consists of former Japan GT driver Genji Hashimoto, former Jurong Kart World owner Thia Yoke Kian, Singaporean lawyer Eddie Koh and Fuminori Murahashi, who has experience with events such as Formula Nippon and Super GT.
Located along Aviation Park Road, the 41 hectare sea-facing site will include a Federation Internationale de l'Automobile (FIA) Grade-2 certified four kilometre (km) racetrack, a 1.2 km karting track, a drift track, a bonded warehouse and seating capacity for some 20,000 spectators plus a 10,000-seat temporary grandstand.
With the aim of promoting motorsports in the region, SG Changi is also setting up a racing academy at CMH to groom talent.
'I hope to see more Singaporean youth get involved in motorsports, undergoing proper coaching and training at high-level facilities. It would be an amazing achievement to see a home-grown Singaporean GT driver one day,' said SG Changi's executive chairman Mr Murahashi, speaking at the ground-breaking ceremony yesterday.
The racing academy - which will include programmes from junior kart racing to technical training - is to kick off April 2012, taking in students from countries and regions such as Europe, Korea, China and Japan, in addition to Singapore.
The first intake is likely to be in the region of 50-60 students.
And while SG Changi will only reveal its line-up of racing events in June next year, CMH will host both local and international racing events.
'We are still in the process of discussions,' said Mr Murahashi, though he added that the group will initiate talks to bring in MotoGP, the F1 of motorcycling. The proposed calendar of events includes the Super GT Series, Formula Nippon and the Japanese Formula 3 Series, as well as the Singapore National Championship and the Karting Championship.
At the same time, the consortium is also keen to cater to a wider audience beyond just race fans.
'The product offering has to be consumer-centric, it has to bring fun, excitement and lifestyle elements,' said Singapore Sports Council (SSC) chief executive officer Oon Jin Teik.
The round-the-clock facility will also feature a motor-themed entertainment complex, a motorsports museum, food & beverage and retail outlets as well as a hotel.
It is also likely to be the only 24/7 motorsports facility in the world, Mr Murahashi reckons.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
It thrills: A driver putting on a drifting demonstration after the ground-breaking ceremony yesterday.
BT : CDL sells stake in Chinatown Point for $250m
Business Times - 14 Jul 2010
CDL sells stake in Chinatown Point for $250m
Buyer is consortium of investors that includes German fund manager SEB
By KALPANA RASHIWALA
CITY Developments Ltd (CDL) has sold the retail mall of Chinatown Point as well as four office units for $250 million to a consortium of investors, which includes German fund manager SEB.
The consortium was put together by Pua Seck Guan's Perennial Real Estate group.
The transaction price reflects $1,403 per square foot based on the total strata area of 178,187 sq ft. The asset comprises 283 strata-titled retail units and four office units.
Mr Pua, who is Perennial's CEO, said the new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be a supermarket anchor tenant at the revamped Chinatown Point mall. The envisaged trade mix of the repositioned mall would comprise a wide variety of offerings such as traditional Chinese specialty food and foodstuffs, jewellery, traditional and modern Chinese or Asian accessories stores and travel agencies.
The property is strategically located at the junction of New Bridge Road and Upper Cross Street and is very near the Chinatown MRT Station serving the North-East Line. Current tenants at the mall include Swensen's and McDonald's.
'In time, Chinatown Point mall is expected to benefit from the increased footfall to the area once the upcoming Downtown Line, which is expected to connect to the adjacent Chinatown MRT Station, is operational.
'We expect the revamped mall to appeal not only to the locals, but also tourists who would like to experience the charms and flavours of Chinatown in a contemporary setting,' Mr Pua said.
Seller CDL said in a statutory filing with Singapore Exchange that as it does not own all of the strata-titled units in Chinatown Point, it is of the view that it is an opportune time to unlock value from its holding in the sale units.
Chinatown Point's mall spans six levels - including part of Basement 1. It is part of a mixed development that also includes a 25-storey strata titled office block. The development is built on a site with a 99-year leasehold tenure starting November 1980.
Last year, a private trust set up by Perennial bought Katong Mall for $247.6 million and last week plans were announced for a $60 million redevelopment of the asset.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chinatown Point: Its new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be an anchor tenant
CDL sells stake in Chinatown Point for $250m
Buyer is consortium of investors that includes German fund manager SEB
By KALPANA RASHIWALA
CITY Developments Ltd (CDL) has sold the retail mall of Chinatown Point as well as four office units for $250 million to a consortium of investors, which includes German fund manager SEB.
The consortium was put together by Pua Seck Guan's Perennial Real Estate group.
The transaction price reflects $1,403 per square foot based on the total strata area of 178,187 sq ft. The asset comprises 283 strata-titled retail units and four office units.
Mr Pua, who is Perennial's CEO, said the new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be a supermarket anchor tenant at the revamped Chinatown Point mall. The envisaged trade mix of the repositioned mall would comprise a wide variety of offerings such as traditional Chinese specialty food and foodstuffs, jewellery, traditional and modern Chinese or Asian accessories stores and travel agencies.
The property is strategically located at the junction of New Bridge Road and Upper Cross Street and is very near the Chinatown MRT Station serving the North-East Line. Current tenants at the mall include Swensen's and McDonald's.
'In time, Chinatown Point mall is expected to benefit from the increased footfall to the area once the upcoming Downtown Line, which is expected to connect to the adjacent Chinatown MRT Station, is operational.
'We expect the revamped mall to appeal not only to the locals, but also tourists who would like to experience the charms and flavours of Chinatown in a contemporary setting,' Mr Pua said.
Seller CDL said in a statutory filing with Singapore Exchange that as it does not own all of the strata-titled units in Chinatown Point, it is of the view that it is an opportune time to unlock value from its holding in the sale units.
Chinatown Point's mall spans six levels - including part of Basement 1. It is part of a mixed development that also includes a 25-storey strata titled office block. The development is built on a site with a 99-year leasehold tenure starting November 1980.
Last year, a private trust set up by Perennial bought Katong Mall for $247.6 million and last week plans were announced for a $60 million redevelopment of the asset.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Chinatown Point: Its new owner plans to reposition the mall and enhance its ambience. NTUC FairPrice is expected to be an anchor tenant
BT : Biggest collective sale of the year clinched
Business Times - 14 Jul 2010
Biggest collective sale of the year clinched
Meng Garden sells for $137m; more prime district sites may come to market
By KALPANA RASHIWALA
(SINGAPORE) A collective sale is said to have been sealed for Meng Garden Apartments off Killiney Road for $137 million or about $1,380 per square foot per plot ratio, including an estimated development charge of $681,000.
This is the biggest collective sale transacted this year and the first in a prime district.
It also takes the year-to- date tally to 16 deals at about $786 million.
Boutique developer TG Development, the buyer of Meng Garden, will not have to seek the Strata Titles Board's approval for the transaction as CB Richard Ellis, which brokered the collective sale, had secured 100 per cent consent from the owners prior to the property being put up for tender last month.
The 35,639 sq ft freehold site is zoned for residential use with a 2.8 plot ratio and a 10-storey height control.
The site can potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft each.
The existing eight-storey block comprises 26 apartments and a penthouse, with over half the units owned by an extended Lim family.
The tender for Meng Garden closed on July 7 and is understood to have attracted six bidders, including mid- and large-sized listed developers.
Meng Garden is located on Lloyd Road and was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family.
The 16 collective sales at $786 million so far this year is a marked improvement from last year's solo deal at $100.8 million and the 2008 showing of eight transactions for a total $346 million.
'Whereas most of the deals so far this year have involved sums below $100 million and were primarily outside the prime districts, we could see bigger sites and a few more in the prime districts coming to the market in the current half,' said CB Richard Ellis executive director (investment properties) Jeremy Lake.
He predicts that the full-year tally could cross the $2 billion mark.
Credo Real Estate managing director Karamjit Singh noted that the 13 collective sale deals in the first half of this year averaged $40 million per transaction - a far cry from the peak of the en bloc sale fever during the first half of 2007, when there were 55 transactions averaging $170 million each.
'For H2 2010, we expect to see 20-40 successful deals, which would mean a doubling from the first-half performance. We also expect the average deal size to somewhat double to $80-100 million in H2 2010.'
However, most market watchers are not expecting the peak volumes seen in 2006 and 2007 - when $7.8 billion and a record $11.6 billion respectively were done (according to Credo figures) - to be re-visited anytime soon.
CB Richard Ellis' Mr Lake argues that some collective sales are no longer viable due to the high cost of replacement properties. 'The cost of the replacement property has moved up to an extent that the en bloc premium is no longer attractive to owners,' he said.
'As a result, the number of viable collective sales that agents are working on has diminished.'
Mr Lake also observed that back in 2006-2007, land prices appreciated so quickly that almost every collective sale effort worked. 'However, prime district residential land prices currently are not back to their previous peaks, which mirrors the price trend for new residential units.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meng Garden: The buyer, TG Development, is paying $1,380 psf ppr including development charge for the property.
Biggest collective sale of the year clinched
Meng Garden sells for $137m; more prime district sites may come to market
By KALPANA RASHIWALA
(SINGAPORE) A collective sale is said to have been sealed for Meng Garden Apartments off Killiney Road for $137 million or about $1,380 per square foot per plot ratio, including an estimated development charge of $681,000.
This is the biggest collective sale transacted this year and the first in a prime district.
It also takes the year-to- date tally to 16 deals at about $786 million.
Boutique developer TG Development, the buyer of Meng Garden, will not have to seek the Strata Titles Board's approval for the transaction as CB Richard Ellis, which brokered the collective sale, had secured 100 per cent consent from the owners prior to the property being put up for tender last month.
The 35,639 sq ft freehold site is zoned for residential use with a 2.8 plot ratio and a 10-storey height control.
The site can potentially accommodate a new development with about 95 apartments averaging 1,000 sq ft each.
The existing eight-storey block comprises 26 apartments and a penthouse, with over half the units owned by an extended Lim family.
The tender for Meng Garden closed on July 7 and is understood to have attracted six bidders, including mid- and large-sized listed developers.
Meng Garden is located on Lloyd Road and was built in the mid-1980s. Prior to its development, the site was the original residence of the Alkaff family.
The 16 collective sales at $786 million so far this year is a marked improvement from last year's solo deal at $100.8 million and the 2008 showing of eight transactions for a total $346 million.
'Whereas most of the deals so far this year have involved sums below $100 million and were primarily outside the prime districts, we could see bigger sites and a few more in the prime districts coming to the market in the current half,' said CB Richard Ellis executive director (investment properties) Jeremy Lake.
He predicts that the full-year tally could cross the $2 billion mark.
Credo Real Estate managing director Karamjit Singh noted that the 13 collective sale deals in the first half of this year averaged $40 million per transaction - a far cry from the peak of the en bloc sale fever during the first half of 2007, when there were 55 transactions averaging $170 million each.
'For H2 2010, we expect to see 20-40 successful deals, which would mean a doubling from the first-half performance. We also expect the average deal size to somewhat double to $80-100 million in H2 2010.'
However, most market watchers are not expecting the peak volumes seen in 2006 and 2007 - when $7.8 billion and a record $11.6 billion respectively were done (according to Credo figures) - to be re-visited anytime soon.
CB Richard Ellis' Mr Lake argues that some collective sales are no longer viable due to the high cost of replacement properties. 'The cost of the replacement property has moved up to an extent that the en bloc premium is no longer attractive to owners,' he said.
'As a result, the number of viable collective sales that agents are working on has diminished.'
Mr Lake also observed that back in 2006-2007, land prices appreciated so quickly that almost every collective sale effort worked. 'However, prime district residential land prices currently are not back to their previous peaks, which mirrors the price trend for new residential units.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Meng Garden: The buyer, TG Development, is paying $1,380 psf ppr including development charge for the property.
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