ST : Freehold city condo in the works

Oct 12, 2010

Freehold city condo in the works

Project is a result of Keppel Land and K-Reit Asia property swop

By Fiona Chan

ONE of the few freehold residential projects to be built in Singapore's city centre is now on the drawing board thanks to an unusual property deal.

The project will be constructed in Tanjong Pagar, where Keppel Towers and GE Tower now stand, and is the result of a rare swop of properties between two companies.

K-Reit Asia, the real estate investment trust that owns Keppel Towers and GE Tower, is selling the two freehold office buildings to Keppel Land for $573 million.

In return, Keppel Land will sell its one-third stake in Phase One of Marina Bay Financial Centre (MBFC) to K-Reit Asia for just over $1.4 billion. Keppel will reap a net gain of about $321 million from selling the asset.

Based on these prices, the values of the properties work out to be $2,450 per sq ft (psf) for MBFC, and $1,201 psf for the total potential floor area of Keppel Towers and GE Tower.

Keppel plans to redevelop the office buildings in Hoe Chiang Road diagonally opposite Amara Singapore hotel into a high-rise condominium with shops and restaurants on the first floor. It will comprise two towers of 620 apartments in all.

The developer has already obtained outline planning permission from the Urban Redevelopment Authority to redevelop the site with a plot ratio of 5.6 and a total gross floor area of 481,800 sq ft.

At a joint press conference yesterday, senior executives of both companies described the deal as a 'win-win' situation.

It is a chance for Keppel Land to acquire a freehold residential site in an area that will undergo major redevelopment in the coming years, with the relocation of ports and the Malaysian railway station.

'The site is well-positioned to ride on the growing popularity of city living,' said its chief financial officer Lim Kei Hin.

Property consultants told The Straits Times they expect strong demand for the new freehold condominium.

'There are hardly any freehold residential properties downtown, and the site is well-located between the financial district and the HarbourFront area,' said Ms Tay Huey Ying, director of research and advisory at Colliers International.

Going by the break-even price and values of other condominiums in the area, the new project could fetch prices above $2,000 psf, said Cushman & Wakefield managing director Donald Han.

He also noted that the asset swop reflects the 'symbiotic relationship' between Keppel and K-Reit, which provides a steady stream of properties to each company, helping them get around the difficulty of acquiring new and desirable assets on the open market.

Keppel's Mr Lim said yesterday that divesting the MBFC stake allows his firm to unlock the value of that investment and help in the growth of K-Reit Asia, of which Keppel has a 40 per cent stake.

The chief executive of K-Reit Asia Management Ng Hsueh Ling said she had approached Keppel to suggest the deal, as Keppel Towers and GE Tower were getting old and required increasingly expensive maintenance. Keppel Towers is 19 years old while GE Tower is 17 years old.

After the asset swop goes through, 90 per cent of K-Reit Asia's portfolio will be in the prime Marina Bay and Raffles Place areas, up from 60 per cent previously, said Ms Ng.

The 99-year leasehold MBFC consists of two office towers that are fully leased to tenants, including Standard Chartered Bank and Barclays, as well as the underground Marina Bay Link Mall, which is about 87 per cent leased.

More importantly, the transaction announced yesterday will strengthen both companies' financials.

Keppel will receive net cash proceeds of $812 million from the deal, which Mr Lim said it will use to seek out investment opportunities in commercial and residential properties in Singapore, China, Vietnam, Indonesia and India.

K-Reit said the acquisition of the MBFC stake will give its unit holders a higher average return than before, although it could not reveal exact figures yet. It will finance the deal with proceeds from the sale of Keppel Towers and GE Tower, additional loans and proceeds from last year's rights issue.

fiochan@sph.com.sg


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· Keppel Land will buy Keppel Towers and GE Tower (both in photo above, Keppel Towers at left) from K-Reit Asia for $573 million.

· Keppel Land plans to redevelop the site into a high-rise freehold condominium with a plot ratio of 5.6 and a total gross floor area of 481,800 sq ft.

· It will have two towers and 620 apartments. On the first floor, there will be shops and restaurants.



-- BT FILE PHOTO

ST : Small investors get a chance at mega IPO

Oct 12, 2010

Small investors get a chance at mega IPO

GIC sets aside 102m shares for the public at $1.96 apiece

By Francis Chan



THE Government of Singapore Investment Corporation (GIC) has, for the first time, swung open its doors for the man in the street to invest in one of its businesses.

Yesterday, Global Logistics Properties (GLP), the real estate unit of the sovereign wealth fund, launched what could be Singapore's largest initial public offering (IPO) since SingTel went public in 1993.

GLP is set to raise $3.45 billion by listing its shares - priced at $1.96 apiece - on the Singapore Exchange (SGX).

The IPO will comprise 1.76 billion shares, of which about 102 million will be offered to small-time investors.

Application for GLP shares opened at 6pm yesterday for retail investors, who must apply for at least 1,000 shares, or $1,960 worth of the counter.

As with most listings on the SGX, the lion's share of this widely anticipated IPO will go to institutional players and other larger investors. In GLP's case, this works out to about one billion shares.

The remaining 589 million shares will be taken up by 10 other parties with deeper pockets, often referred to as 'cornerstone investors'.

According to GLP chairman Jeffrey Schwartz, some of these cornerstone investors have already committed close to $1.2 billion in the firm.

They include establishments such as China's National Council for Social Security Fund, e-commerce firm Alibaba Group, and wealthy individuals like Singapore's former 'remisier king' Peter Lim.

However, if interest from the market is strong, another 235 million shares could be offered as part of an 'over-allotment' option.

This would bump up GLP's offer to about $3.9 billion, close to SingTel's $4 billion-plus deal launched 17 years ago.

GLP is a major player in the fast-growing modern logistics facilities market in China and Japan, two of Asia's largest economies.

It owns, manages and leases out a network of 296 properties located across 25 major cities in the two countries. Some of its multinational and domestic clients include Wal-Mart China, major logistics players such as DHL, FedEx, and UPS, and electronics giants Sony and Panasonic.

Dr Seet Ngee Huat, president of GIC Real Estate, said the capital raised from the IPO will help GLP maximise its growth potential.

'GLP is looking to position itself for long-term growth through this proposed listing,' added Dr Seet.

Mr Peter Lim told The Straits Times that the counter was a good investment with a lot of growth potential, especially in China.

Retail investors also welcomed the mega-IPO, but some like Mr Benjamin Tan, 47, have gripes about the modest size of the offer for retail investors, who would likely have to ballot for a stake.

'It's a GIC-backed share and their business is in a growing segment in China, so naturally I would be keen, but small-timers like me can only keep my fingers crossed and hope I get to take part,' added Mr Tan.

Analysts are expecting the counter to be 'hotly subscribed' owing to its GIC connection.

In a lunchtime note to clients yesterday, analysts from Kim Eng Securities said there was 'no harm subscribing' to the offer because of the 56.8 per cent controlling stake GIC retains in GLP.

GIC will remain as the largest single shareholder of GLP after the IPO.

The offer closes at 10am this Thursday and trading of the stock is expected to start next Monday.

franchan@sph.com.sg

ST : 'Landed' HDB units fetch top dollar

Oct 12, 2010

'Landed' HDB units fetch top dollar

Recent transactions see COVs reaching as high as $98,000

By Daryl Chin

EXTREMELY rare, highly sought- after and only the cash-rich need apply.

'Landed' public flats, which come with an initial 99-year lease, are in hot demand, with some fetching cash-over-valuation (COV) of close to $100,000.

There are only 285 such units in Singapore and the scarcity of these two-storey terrace units, which are no longer built, explains why buyers are willing to pay the high COVs.

Located in Queenstown and Whampoa, these units come under Housing Board (HDB) rules. They were built in the 1960s by the Singapore Improvement Trust, the HDB's predecessor.

Those in Whampoa - along Jalan Bahagia, Jalan Ma'mor and Jalan Tenteram - were ready for occupation in 1972; the ones in Stirling Road, in Queenstown, were available in 1968.

Most are classified as three-room HDB units, that is, one living room and two bedrooms. Some Stirling Road units are four-roomers, with three bedrooms.

All started with a 99-year lease, so there are 61 years left for the Whampoa units and 57 years for Queenstown ones.

These units, which range from 840 sq ft to 3,000 sq ft, sold for about $12,000 to $21,000 back then.

Now, they are still seen as a sound investment. Current prices start at $570,000 and one was recently sold for $888,000.

Would-be buyers seem to be drawn to such units which - while pricier than typical surrounding high-rise HDB units - have 'landed home' qualities and are cheaper than private properties.

Mr Eugene Lim, associate director of ERA Asia Pacific, said: 'Buyers here are going for the 'landed' lifestyle without having to spend 'landed pricing'.

'These units are very hard to come by as there are very few built and most occupiers do not want to sell.'

Added Ms Janice Chan, director of Asia Breeze housing agency: 'Although they are old estates...you are getting a landed property in a good location with amenities such as eateries and shops, which means residents can expect to retain value - hence the premium.'

Price comparisons per-square-foot (psf) may be difficult, given market fluctuations. But this year, a three-room HDB terrace unit in Stirling Road sold at $670 psf, while a nearby three-room unit in an HDB high-rise block went for $470 psf.

In comparison, a slightly bigger private unit in nearby Queens condominium went for $1,200 psf, while a much larger semi-detached house along Merino Crescent went for $970 psf.

Ms Kayleigh Tan, who has been a property agent for 14 years, started specialising in Jalan Bahagia units last year because of the demand.

'Once you put a unit here on sale, the response is tremendous - twice that of a typical HDB flat. While most are younger couples, the eventual buyers tend to be older and more cash-rich,' said Ms Tan, 38.

The high COV these places command could be a reason. She is currently overseeing the sale of a 2,400 sq ft unit in Jalan Bahagia for $888,000.

The COV? An eye-popping $98,000 over its valuation price of $790,000.

But new measures to cool the property market may dampen demand for these units, which still fall under HDB rules.

Mr Adam Tan, corporate communications manager at PropNex, said: 'This means that although buyers could qualify for government housing loans...new rules like a minimum occupancy period of five years or giving up their private property still apply. Some might prefer to just buy private property instead.'

Another issue is that for HDB properties, the occupant is renting the space from the Government. Ms Chan of Asia Breeze said: 'For private properties, you own the title deed whereas for the HDB units, you are a lessee. If HDB decides to take back the land, you'll have very little choice.'

darylc@sph.com.sg



Two-storey terrace houses, such as these in Stirling Road, are rare, with only 285 such units in Singapore today. -- ST PHOTO: CHEW SENG KIM

Dream home in 'modern kampung'

MR LARRY Cheong and his wife waited two years for their dream home - a cosy 1,200 sq ft two-storey, three-room Housing Board (HDB) terrace house tucked away in a quiet locale.

Mr Cheong, 31, feels the Jalan Bahagia site is like a 'modern kampung'. The couple undertook 'countless viewings and site visits' before they bought the house and moved in earlier this year.

The salesman and his wife Yen, 28, a senior product specialist, paid just under $600,000 for their unit, which is in the Whampoa area. It has 61 years left, from the original 99-year lease.

'This place was very hard to get, as it is not like typical HDB flats. You don't have problems like having people on the floor above disturbing you, or waiting for the lift in a multi-storey block,' said Mr Cheong.

'When you go to most flats nowadays, people will just close the door when they get home. Here, there is really a sense of community,' he added, citing examples such as neighbours watering each other's plants and regular potluck sessions.

But not many potential buyers are as lucky as Mr Cheong.

While residents regularly receive offers for their houses, few take them up.

Mr Charlie Wong, 81, who owns a 1,400 sq ft terrace unit in Stirling Road, said he will not part with his home, which holds many memories for him. The house, which he bought in 1968 for $12,000, was where he and his wife Au Sang Yoon, 78, had their six children.

Not even offers of more than $420,000 can sway the retired mechanic.

'Besides, this place has a lot of convenient amenities. The train station nearby means it is very easy for us to move around,' he told The Straits Times.

Ms Audrey Lim, who grew up in another such unit in Stirling Road, is staying put for now.

'It is not very breezy and is near the road so there's dust and sometimes it floods when it rains,' said Ms Lim, 47. 'But I bought it from my parents - it's their prized possession - so I'll stay here for now.'

DARYL CHIN



Mr Cheong and his wife landed this terrace house for just under $600,000. -- ST PHOTO: AZIZ HUSSIN

ST : Weekend sales for ECs slow

Oct 12, 2010

Weekend sales for ECs slow

By Joyce Teo

WEEKEND sales for executive condominiums (ECs) slowed somewhat after a burst of excitement last Friday when the first new EC in five years went on sale.

Still, experts expect demand for ECs - a hybrid between public and private housing - to remain relatively strong.

The 406-unit EC project The Canopy in Yishun Avenue 11 has attracted 250 applicants since viewing started last Friday. Prices are from $600 to $700 per square foot (psf) and bookings start this Saturday.

This response seems less enthusiastic than that for the recently launched EC project Esparina Residences in Sengkang, though an industry source noted the latter - near an MRT station - is better located.

Last Friday, buyers had snapped up 344 units of Esparina, near Buangkok MRT station. Another 20 units of the 573-unit project were sold over the weekend, said developer Frasers Centrepoint.

It had received 1,155 applicants in all. Prices are from $730 to $750 psf.

New ECs have initial sale restrictions similar to those for other public housing, and they are cheaper than new mass market condos.

On the private condo front, Far East Organization released 110 units of The Lanai in Hillview Avenue at a preview over the weekend and has sold 76 units, including a bulk buy.

The 999-year leasehold condo is priced from $1,290 psf and will be launched this weekend, it said.

At the freehold Vacanza@East in Lengkong Tujoh, another 20 units or so were sold over the weekend, taking total sales to 130 units, said Hoi Hup Sunway.

The 473-unit project started its preview late last month, when it moved nearly 90 units. It is priced at slightly more than $1,000 psf on average.

'The effect of the property measures has sunk in. Investors are a bit more cautious,' said Cushman and Wakefield managing director Donald Han.

'Speculators are out, so that took some wind out of the market. The good thing is we have not seen prices coming down.'

The Government implemented measures to cool the market on Aug 30.

Mr Han said developers will now take a longer period to sell units. 'It's all about pricing. Prices in some locations may come down slightly but overall, it's going to be a flat fourth quarter.'



While buyers snapped up 344 units of Esparina Residences (above) in Sengkang last Friday, the response for The Canopy in Yishun seems less enthusiastic. -- PHOTOS: THE CANOPY, FRASERS CENTREPOINT HOMES

ST : Roadblock on property route to riches

Oct 10, 2010

Roadblock on property route to riches

By Jessica Cheam

For as long as I can remember, Singaporeans have had a lifetime preoccupation with property.

Even with the Government's recent cooling measures to tighten financing and restrict home ownership, new showflats were chock-a-block across the island over the past week, albeit with people looking but not buying just yet.

A home is not just a home by most Singaporeans' definition. Singaporeans are property-obsessed people, frequently comparing notes with peers on how best to make money from the land-scarce country's property market.

The majority have come to regard it as something they deserve for being Singaporean - first, through buying subsidised Housing Board flats. Many then regard it as a de facto path to greater riches, through selling their flats for a profit to upgrade to bigger homes, or investing in private property for capital gains or rental yields.

This is the quintessential Singapore Dream, made accessible by the economic environment such as available financing, relatively low interest rates and the absence of controls such as capital gains tax.

Of course, the recent cooling measures have stopped many in their tracks.

As the latest HDB data showed, sales volume of resale flats dipped 25 per cent last month, compared with the August figure.

Property agencies have suggested that prices will soften by 5 per cent or more, with cash needed upfront for flats expected to fall to a median $10,000 by the year end.

Industry analysts attribute it to the tightened rules, which have effectively shut out of the market private property owners and permanent residents with properties in their home countries.

Every segment of the population has been affected in some way, but genuine middle-income upgraders and long-term investors seem to feel they have been hit the hardest.

Anecdotally, I have heard private property owners curse the new rules as they were on the verge of investing in an HDB flat; or long-term investors who had saved for the 20 per cent down payment to invest in a unit, but whose plans are now thwarted by the ruling - that second mortgages can qualify for only a 70 per cent loan.

There are also grumbles from young families that had saved up for the 20 per cent down payment to upgrade to an executive condominium, but now cannot do so unless they fork out 30 per cent. The alternative would be to sell their home now and rent for three years while their new unit is being built - but not many will do this.

The 10 per cent difference could range from $80,000 to $100,000 if the home being eyed is a typical suburban condo costing $800,000 to $1 million.

It's not a small sum - saving it could take a few more years.

A Forum letter writer recently questioned: 'Is it fair to inconvenience the majority of us who are not speculative? What if we have plans to use property investment for future retirement or future educational funds for our children?'

All these grievances were aired in Parliament recently, when Non-Constituency MP Sylvia Lim and Marine Parade GRC MP Lim Biow Chuan asked if the new rules were making it hard for upgraders and retirees to monetise their flats.

National Development Minister Mah Bow Tan had acknowledged the concerns, but emphasised that the new policy was to reinforce the use of an HDB flat for long-term owner occupation - not as a mode of investment.

This makes sense, except that some critics such as National University of Singapore sociologist Tan Ern Ser observe that the unintended consequence of such a policy - especially if implemented for a long period of time - is a wider divide between the rich, and the middle-class and below.

While the measures help entry-level home buyers, Dr Tan said, the wealthier classes could indirectly get a boost since middle-class folk are less able to play the property investment game, making the market less crowded for the rich.

Wealthy individuals will no doubt be waiting on the sidelines to scoop up investment homes when prices decline - hence encouraging the rich to get richer.

Already, Singapore's income inequality has worsened over the past two decades. Its Gini coefficient - 1 representing complete inequality and 0 complete equality - increased from 0.41 for most of the 1990s to 0.489 in 2007, before dipping to 0.478 last year.

With government transfers, it came down to 0.453, but this figure remains well above the 0.31 average of the Organisation for Economic Cooperation and Development countries.

Will the new rules cause this gulf between the rich and the poor to widen? Will Singapore's property market - beyond the one roof above your head - become largely a rich man's playground?

If the measures are short-term, this is unlikely. But if the rules stay the same for a long time, it is not an unlikely scenario.

This has prompted many to ask if the rules could have been fine-tuned to make a distinction between genuine middle-income upgraders or investors and short-term speculators.

For example, 80 per cent financing could still be allowed for those who pledge to live in their new home for five years - a minimum occupation period, similar to the one in the HDB market, could be implemented.

Or the stricter rules could apply to homes costing above a certain price, say, $1 million, leaving the market below $1 million more dynamic for middle-class upgraders.

But it is difficult to predict whether such measures will distort market forces, creating potentially negative consequences.

Alternatively, this group of buyers could look at the rules from a different perspective instead of fretting about the current restrictions.

If property prices come down as a result of the cooling measures, the 20 per cent they have saved could be enough for a 30 per cent down payment in a couple of years.

As Singapore's property cycle is now at its peak, it would seem unwise for those chasing properties to make hasty decisions when prices are at historic highs.

Also, the changing of rules does not mean the end of property investment as we know it.

As Mr Mah put it: 'If you already own a private property, then please don't at this point in time go and compete with the others to buy an HDB resale (flat) unless you're genuinely downgrading.'

His choice of words suggests that this policy will change in time to come - and perhaps sooner than anticipated.

But what is clear is that with this new property landscape, property-obsessed Singaporeans should take a breather and re-evaluate their notion of property as a quick and given path to riches.

jcheam@sph.com.sg


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A wider divide?

Will the new rules cause this gulf between the rich and the poor to widen? Will Singapore's property market - beyond the one roof above your head - become largely a rich man's playground?

ST : Family home restored

Oct 9, 2010

Family home restored

Growing up, sisters Linda and Lydia Lee used to spend hours running in the spacious verandah of their single-storey bungalow in 25 Chapel Road in the East Coast.

'We also used to play underneath the house,' Lydia fondly recalls of her home, which was built in the early 1900s and stood on brick piers. It sits on 11,000 sq ft of land.

The house was bought by their grandfather, money broker Tan Swee Hee, in 1932 for $12,000. It has remained with the family since.

The two sisters - Linda, 59, and Lydia, 56 - lived there till they were in their 20s. Now retired, the siblings are now based in Britain.

Lydia says there were two bedrooms in the Chapel Road house. One was used by her grandparents while the other was shared by her parents and the two sisters.

'Later, my father built an extension at the back, and my parents used that room,' she says. Their father, George Lee, was also a broker while their mother, Alice, was a housewife.

In 2008, the house was given a $1.7-million makeover after their father died. Lydia says: 'It was still in good condition but you could see the wear and tear. We wanted to do up the house and go the whole hog, rather than renovate bits and pieces.'

The sisters had plans to rent out the property. But an agent told them that the house would need at least four bedrooms if it were to attract tenants.

'We searched for a few architects, met Richard Ho and saw his work,' says Lydia.

It was not difficult for Mr Ho of the award-winning RichardHo Architects to convince the sisters to conserve the house. 'Their house is full of memories and history. I told them they've a house that's unique and rare in Singapore, especially in the East Coast, where most homes have been demolished to make way for new developments,' says Mr Ho, 52.

Unique features in the house were repaired and reinstated. These include the intricate floral mouldings along the sides of the external walls, colourful Peranakan glazed tiles on the flights of steps leading to the house and the intricate ironmongery on the windows and doors.

To meet the needs of modern living, Mr Ho designed a new double-storey wing. Located next to the old house, it has five ensuite bedrooms, a covered patio and a 12m lap pool.

As the bedrooms are now in the new wing, the old house's original quartered layout has been reconfigured into a single-volume living and dining area. It is now rented out for an undisclosed sum.

'Our old home has been immaculately restored and it is like how we remember it,' says Lydia.



Built in the early 1900s, the single-storey bungalow has a polygonal open verandah, with coloured cork flooring installed by Linda and Lydia Lee's father. The building is now used as a living and dining area. Its bedrooms are in the new wing (above), which is separated from the old one by a lap pool. -- PHOTO: RICHARDO ARCHITECTS

ST : Make mine light and breezy

Oct 9, 2010

Make mine light and breezy

A conservation terrace house in Blair Road and a bungalow in East Coast are among the eight Architectural Heritage Award recipients this year. TAY SUAN CHIANG checks in on them

When the owner of this conservation terrace house in 55 Blair Road first laid eyes on it a few years ago, she was taken in by the airwell in the centre of the unit and the volume of space it offered.

But there were some things she hated. 'I disliked that the original ground floor looked like a bowling alley - long, narrow and very dark,' says the owner, a British expatriate-turned-Singapore permanent resident who declines to be named.

The two-storey house, believed to be built between 1900 and 1940, was last renovated in 1997. As it was meant to be tenanted out, the previous owner put in four bedrooms.

The new owner paid $1.5 million for the renovations which started in 2008 and took 10 months to complete.

Her brief to the architectural team at Ong & Ong was to bring maximum light into the long and dark space, improve ventilation and air flow, and update the house to meet current needs.

Before the renovations could start, however, there was a sticky problem the team had to resolve: When the owner took over the house, which sits on 1,625 sq ft of land, she discovered a sticky liquid oozing through the ceiling.

The roof was stripped to find the source, which turned out to be a beehive leaking honey. The hive was removed, the roof reinstated and renovations began.

The house previously had a small courtyard - to allow for more living space - unlike the tradition of such houses having large courtyards.

In its latest transformation, the architects made the open-air courtyard bigger, with space for a plunge pool as well. The bigger courtyard also boosts ventilation and allows more light to enter the house.

The owner's bedroom on the second storey has a bathroom that is cantilevered and overlooks the pool below.

On this floor, too, is the study-family room, with built-in shelves on both sides of the room to form a mini library.

Two ensuite bedrooms in a rear block are for the maid and guests. While the interiors were given a new look, the facade had to be retained under conservation rules. Where necessary, the facade was retouched and repainted.

The owner says: 'It is an easy house to live in. There is hidden storage everywhere, allowing us to maintain the house as it was meant to be: simple and elegant.'

taysc@sph.com.sg



The master bedroom is cantilevered over the plunge pool (above). Aluminium-cladded walls flank the central courtyard, helping to cast more light into the house. Slide open the glass partitions of the dining area-cum-kitchen as well as the living area, and the entire ground floor becomes a single, long space for entertaining. -- PHOTO: ONG & ONG

THE ARCHITECTURAL HERITAGE AWARDS

Organised by the Urban Redevelopment Authority, the Architectural Heritage Awards honour well-restored monuments and conservation buildings.

This year's eight winners include a cluster of shophouses turned into home-cum-office spaces, entertainment hotspot StJames Power Station and terrace houses in Spottiswoode Park Road and Cairnhill Road.

The awards, which began in 1995, are given to the buildings' owners, architects, engineers and principal contractors. There is no prize money. A total of 100 projects have received the awards since their launch.

ST : Green Wave

Oct 9, 2010

Green Wave

The heat is on for buildings to become eco-friendly, and some of them are showing that it is possible to be green and hip

By nicholas yong

Get set for a new trend to take root in HDB flats, giving them the cool factor. Residents will soon be moving into Singapore's first green public housing project.

Treelodge@Punggol, slated for completion by the end of the year, is the island's first 'eco-precinct'. At least 90 per cent of the 712 units have already been taken up.

Prices for homes in the seven 16-storey blocks in Punggol New Town range from $139,000 for a three-room flat to $383,000 for a five-room loft unit.

The latest cutting-edge public housing developments such as Pinnacle@Duxton may have the wow factor in terms of towering 50-storey blocks and contemporary design, but Treelodge@Punggol has cool, planet-friendly features that are hip and help home owners save on utilities bills.

Sure, there are plenty of trees in the landscaped grounds but Treelodge@Punggol's greenie vibe includes the infrastructure: Less electricity will be used to keep the place cool in the hot weather, for example. The design makes the most of wind direction and shade from the sun (see other story).

The common corridors use sustainable energy in the form of solar-powered lighting, and the project earns extra greenie points for its use of recycled rainwater to clean common areas.

Even better, HDB says the savings on utilities costs will be poured back into maintaining the precinct.

This heartland helping-hand-for-the-planet is the first public housing project to obtain the Green Mark Platinum award, given by the Building and Construction Authority (BCA).

It is among several projects that have recently been awarded certifications under the BCA's Green Mark Scheme, which rates the environmental friendliness of buildings.

The five-year-old benchmarking scheme is part of a push to make eight out of 10 Singapore buildings eco-friendly within the next 20 years.

By 2030, 80 per cent of all Singapore buildings must be certified by the scheme. So far, 524 properties, or 8 per cent, have made the Green Mark grade. Since 2008, all new buildings have been required to attain the minimum Green Mark standard.

Based on an overall assessment of five key criteria including energy and water efficiency, buildings are given one of four ratings - Green Mark Certified, Gold, Gold Plus and Platinum.

Gold Plus and Platinum projects have to meet additional requirements, such as having energy savings of at least 25 per cent over current building codes.

Last April, BCA introduced a $100-million incentive scheme to pay any private building owner up to 35 per cent of the work required to retrofit green features. A total of $2million has been committed to nine projects so far.

Treelodge@Punggol is among 49 buildings that have achieved Platinum status, the highest mark.

The Aquatic Science Centre in Sungei Ulu Pandan, a research centre devoted to examining water quality, is in the final stages of attaining the Gold Plus mark. It will open at the end of this month.

It is immediately striking because of its 95m-long wave-like fibreglass roof. Its design not only looks good, but also helps collect rainwater.

Even more striking for many Singaporeans will be one of the interior features - there is hardly any air-conditioning: Air-conditioning is restricted to just 7 per cent of the building, with other rooms cooled by ceiling fans or natural ventilation.

It is a project by the Singapore-Delft Water Alliance (SDWA), a collaboration between PUB, the National University of Singapore and Dutch-based research institute Deltares.

Senior architectural associate Alan Lai of Surbana Consultants, co-designer of the building, says there is a 'strong dialogue' between the facility's form and its intended function.

He notes: 'Its main objective, which is water- based research, is carefully crafted into its structure. It is also an environmentally responsible building that makes use of natural ventilation and light.'

Mall cuts down the heat




Tenants at 313@Somerset, which began operating last December, embark on eco-friendly measures such as using energy-efficient lighting. -- PHOTO: 313@SOMERSET

Orchard Road may be famous for its shopping malls but, surprisingly, only one - 313@Somerset - has bagged the Green Mark Platinum.

Green features include its facades of low-emissivity glass, which can cost five times more than normal glass but cuts down heat, and the collection of rainwater for flushing toilets.

Tenants have to sign 'green leases' committing them to achieving environmental targets. For example, they must use energy-efficient lighting and power equipment. Their energy use is monitored, with incentives given for reducing energy consumption.

Retailers also have to separate waste products into glass, plastic and such. These are collected by the mall's staff and sent to the waste management centre.

Mr Adrian Yeo, operations manager of mid- priced food chain The Asian Kitchen, which has an outlet, Kamado Japanese Wood Fire restaurant, at the mall, says: 'It does require extra effort to separate the waste products, especially during busy periods. You need to have separate bins as well.'

But he adds: 'Being green means everyone should put in the effort. By contributing this little bit, I hope it helps.'

Ms Michelle Lee, spokesman for mall owner Lend-Lease Retail Investments, says besides reducing the building's carbon footprint, going green has financial benefits, such as 'reducing the centre's operating costs and safeguarding against future energy price increases'.

'Other benefits include providing a safe environment to users of the mall and the opportunity to lead sustainability education for our retailers and customers.'

The eco has landed at other places around town, too.

Boomarang, a bar and bistro which has been operating at Robertson Quay for two years, was recently given a coveted LEED Silver Award. LEED (Leadership in Energy and Environmental Design) is a programme in the United States for the design, construction and operation of high performance green buildings.

Its requirements are stringent and Boomarang is the only F&B outlet in Asia to get the award.

More than $1.5 million was spent on fitting the eatery, including its winning green features. These include the fact that during construction, 80 per cent of building waste was recycled. And all waste cooking oil is donated for conversion into diesel, which translates to an annual reduction of carbon emissions by about 500kg.

Australian owner Martin McGettigan says: 'By striving for greener, efficient building design and operations, Boomarang continually contributes to a healthier environment.'

While a building may be equipped with green features, its inhabitants still play the most important role, says Treelodge@ Punggol's project director Ng Bingrong. 'It is still up to the user to make full use of the green facilities, to contribute to a sustainable living environment.'

nicy@sph.com.sg


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Building makes own energy



Light sensors in the ZEB (above) measure the intensity of natural light within an office and regulate the need for electric light. -- ST PHOTO: MUGILAN RAJASEGERAN

This is exactly what its name says it is: The Zero Energy Building (ZEB) produces enough energy to run itself.

Formerly a three-storey workshop, it was retrofitted at a cost of $11 million, the first existing building in South-east Asia done for such a purpose.

The building, or ZEB@BCA Academy to give its full name, is along Braddell Road and houses 68 staff in offices, classrooms and a resource centre.

It is the Building and Construction Authority's flagship R&D project under the Green Building Masterplan and is a test-bed for energy-efficient building solutions.

It is expected to save $84,000 a year in energy costs compared to a typical office in Singapore.

Associate Professor Stephen Wittkopf of the National University of Singapore, a key researcher with the ZEB project team, says: 'The main target of the project was to demonstrate that the concept of a zero-energy building is possible even in the tropics, where high air-conditioning loads make up more than 50 per cent of the energy consumption of buildings.'

Among the building's key features are 1,540 sq m of solar energy panels, an area bigger than an Olympic-sized swimming pool; solar chimneys that take warm air from a room and replace it with cool air; and personalised ventilation, where fresh air is delivered directly to each occupant through pipes attached to a desk.



HDB flats go eco-friendly



Plants at Treelodge@Punggol (above) are irrigated using processed rainwater, which is collected from the roof and filtered. The water can also be used for washing common corridors. -- ST PHOTOS: NURIA LING



Roof gardens and green spaces in the carparks (above) and environmental deck help lower ambient temperature.

Going green also means being lean.

While it cost more to construct the eco-friendly Treelodge@Punggol than the average housing district, it is a 'small price premium' to pay, says its project director Ng Bingrong.

That is because 'in the long term, the eco-features will lower the cost of maintaining the precinct. This project shows that building green buildings can be cost-effective'.

Construction costs were 5 to 8 per cent higher.

When asked if the higher costs translated to higher prices for the flats, a HDB spokesman said where the eco- features added to the value of the flat, HDB approximated the enhancement to the flat's market value.

But if the features benefitted the community, HDB absorbed the cost and did not pass it on to residents.

The spokesman adds: 'As with other new flats, the flats at Treelodge@ Punggol were priced below their equivalent market prices at the point of offer so that buyers enjoy a market subsidy.'

Eco-features in Treelodge@Punggol's common areas will result in annual energy savings of at least 2 gigawatt hours a year - which is enough to power 400 average four-room households for a year. The savings will go towards precinct maintenance.

Other eco-features include having the design and location determined by environmental simulation tools that consider wind direction and sun movement. This helps maximise the use of wind to lower building temperatures and reduce heat build-up inside units.

The nearly 2,000 sqm roof area is also covered with solar panels. The electricity generated from the panels powers the lifts, water pump and lighting in the common areas. In addition, energy-efficient Light-Emitting Diode (LED) fittings instead of fluorescent lights are used in the common areas.

More green public housing projects are in the pipeline.

ST : Custom House marked as historic site

Oct 9, 2010

Custom House marked as historic site

By Kimberly Spykerman

MORE than half a century ago, anti-smuggling officers, scheming businessmen and even World War II soldiers thronged Custom House in Maxwell Road, the former headquarters of the then Department of Customs and Excise, now Singapore Customs.

Today, Maxwell Chambers, as it is now known, is a centre for international dispute resolution, and hosts lawyers in smartly pressed suits.

The building's rich history was lauded yesterday when it became the 88th site to be marked as a historic site by the National Heritage Board.

Singapore Customs director-general Fong Yong Kian said yesterday that with the heritage marker, the colonial building would continue to be a 'visible symbol' of Customs history.

Custom House, which was built between 1930 and 1933, joins a list that includes other historic sites such as the Syonan Jinja, a Japanese shrine within MacRitchie Reservoir dedicated to Japanese soldiers who died here during World War II, and Victoria Concert Hall.

The Department of Customs and Excise moved out of the building in 1989. But back in the day, it housed administrative offices that handled permits for import and export, revenue collection and special investigations, among other things.

It was also the base for field officers who would venture deep into the jungle to track those illicitly distilling samsoo (a homemade Chinese liquor), as well as those who patrolled the high seas for cigarette smugglers.

It was a building that never slept, recalled former director-general K.P. Sandrasegara, 77, at a ceremony yesterday to unveil the building's heritage marker. 'We worked round the clock... it was not a nine-to-five office,' he said, chuckling.

During World War II, Custom House was used as a shelter for expatriate Customs officers and their families who had fled Malaya, as well as rescued Australian soldiers who had been attacked by Japanese troops.

The building has seen its fair share of drama. Mr Sandrasegara recalled that in 1959, a man being investigated for smuggling caused a commotion when he suddenly jumped out of the third-floor window. He died from his injuries.

The building also saw its fair share of scheming businessmen who would try to evade taxes on liquor and cigarettes by applying for a permit to export these items, only to sell them locally.

But Mr Sandrasegara also spoke fondly of his memories of daily life at Custom House: How the officers would get a meal at the coffee shop nearby for five cents, and how many of them got their driving licences while working at Custom House as the Traffic Police headquarters was just next door.

'I've spent 32 years of my life here... this is my second home,' he added.

The female officers also had their fair share of stories to tell, though they were far fewer in number back then. Officer Ong Wee Wee, 54, recalled how the women had a 'restroom area' that was linked to the toilet, and often the women officers would gather there to talk or take a break.

It was a common sight, she said, to walk in and find women peeling bean sprouts there after buying groceries from the nearby Maxwell market and Tanjong Pagar wet market.

'It would save them time. After all, they still had to cook dinner for their families after work, didn't they?' said Madam Ong with a laugh.

Singapore Customs has since moved its headquarters to Revenue House.

ST : 'Nature corridor' proposal for railway land

Oct 9, 2010

'Nature corridor' proposal for railway land

Nature Society's idea incorporates cycling paths, recreational areas

By Jeremy Au Yong

THE Nature Society of Singapore is close to finishing a proposal to convert the 40km stretch of Malayan Railway land here into a green corridor.

It would contain cycling paths connecting different neighbourhoods to the town centre, and recreational spaces. It would also be home to many of Singapore's native plants and animals.

The proposal seeks to preserve the railway tracks, which the society regards as an important part of Singapore's history.

But some property analysts say the proposal will be a hard sell. And even if it is approved, a nature corridor can at best last for a decade or two. The railway corridor will inevitably be developed, for there are sound reasons to incorporate the land into development plans.

Nature Society president Shawn Lum, however, stresses that there are environmental benefits to a nature corridor: 'If we could have green strips along the railway land, we would be connecting existing green spots from Sungei Buloh Wetland Reserve in the north all the way to almost Mount Faber.'

As a green corridor, the railway land would serve as a sort of Central Expressway for plants and animals. It would allow the movement of species previously cut off from each other, increasing the genetic diversity of local wildlife.

The idea of such eco-passages is not new to Singapore. In May, the Land Transport Authority called for tenders for a 50m-wide green bridge to connect the Bukit Timah Nature Reserve and Central Catchment area. The two reserves are separated by the Bukit Timah Expressway.

The idea of using the 400ha of Malayan Railway land in the same way was hatched very shortly after the announcement was made in May that Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak had agreed to move the Tanjong Pagar Station.

Mr Lum said the Nature Society had long regarded the railway land as a valuable stretch of greenery. It occasionally organised walks there.

A few days after the announcement, Nature Society vice-president Leong Kwok Peng wrote in to The Straits Times Forum page suggesting that the land be converted into a nature corridor.

Since then, others have written in with similar ideas. One suggested converting Tanjong Pagar station into a transport hub for those walking or cycling into the city. He suggested having bike lock-up, pay-shower and locker facilities at the station.

The proposal is due to be submitted to the authorities in the next two weeks.

Mr Howard Shaw, executive director of the Singapore Environment Council, told The Straits Times he supported the idea. Though he noted the need to consider the opportunity cost of not developing the land, he said having a green belt should not be seen as a waste of money.

'There are things like quality of life and Singapore's reputation as a garden city that are intangible and valuable in their own way,' he said.

Property veteran Nicholas Mak, executive director of SLP International Property Consultants, however, is doubtful the proposal will fly. He had earlier estimated that millions of square feet of buildings could be put up on the land. He used the swamp land in Punggol as an example.

'Punggol is not in town, yet all the swamp land there has been bulldozed. What are the chances this piece of land on the city fringe would be preserved? It's not even virgin jungle,' he said.

Mr Colin Tan, research and consultancy director of Chesterton Suntec International, agreed that the land would ultimately be developed, but he felt there was hope for the society's proposal for the next 10 to 20 years.

'At the moment, there's no urgency to develop that area. The Government is focused on building up places such as Marina Bay. In the short term, it's looking quite good for the proposal, but I don't think it can be left as a green corridor permanently,' he said.

jeremyau@sph.com.sg



The Malaysian KTM railway line would be a kind of 'expressway' for plants and animals under the society's proposal. -- ST PHOTO: ALPHONSUS CHERN

ST : Beverly Hills project could cost below $1.3b

Oct 9, 2010

Beverly Hills project could cost below $1.3b

INVESTORS from Singapore and Hong Kong who paid a knockdown price for a site in the plush Los Angeles suburb of Beverly Hills could end up investing less than US$1 billion (S$1.3 billion) in a residential project.

Hong Kong-based private equity firm Joint Treasure International bought 9900 Wilshire this week for US$148.3 million - under a third of its record-breaking sale price of about US$500 million in 2007.

Joint Treasure was acting on behalf of three of its consortium partners - Hong Kong's Chow Tai Fook Group, the Wee Cho Yaw Family Group from Singapore and Mr David Chiu from Hong Kong-listed Far East Consortium International.

Mr Wee is chairman of United Overseas Bank. His family firm invests in banks, commercial properties and hotels.

Only luxury residences will be built on the site, which can accommodate 235 high-rise condominium units and 17,000 sq ft of commercial space.

Mr Daniel Yu, senior adviser to Joint Treasure, said: 'Beverly Hills is a household name... It's one of the top three cities in the whole world for residing in.'

The total investment cost 'should be less than US$1 billion', he added.

Mr Yu said the project will firstly cater to locals although potential buyers would include international investors and 'even the people from New York who have to travel to Los Angeles for business'.

There should also be interest from investors in Hong Kong, Singapore, China and the Middle East, he added.

'The beauty of the piece of land is not just the good location, it's also freehold.'

Work on the 3.24ha site can start anytime, Mr Yu said.

Formerly owned by Candy & Candy, the property was foreclosed and sold through auction by Mexican billionaire Carlos Slim's Bank Inbursa.

ST : Esparina Residences sells 344 units in 1 day

Oct 9, 2010

Esparina Residences sells 344 units in 1 day

Big crowd at balloting for units at first EC to be launched in 5 years

By Esther Teo

BUYERS snapped up 344 units of Esparina Residences, the first executive condominium (EC) to be launched in five years, on the first day of sales yesterday.

Dual-key apartments, a studio attached to either a two- or three-bedder for extended families to live together, were the most popular with 61 of the 71 available sold, said developer Frasers Centrepoint Homes. Three-bedders were next with 212 of 283 sold, while 12 of the 20 penthouses went.

Experts say the huge response was expected as the project located near Buangkok MRT station had been more than 100 per cent oversubscribed with 1,155 applications for the 573 units.

Pent-up demand from first-timers who will be able to make use of the $30,000 CPF housing grant and more affordable prices compared with mass market condos also added to the interest.

Frasers said on Wednesday that almost 75 per cent of the applicants were young professionals aged between 25 and 40, with half of all applicants falling within the $8,000 to $10,000 income bracket - the so-called sandwich class.

Mr Jonathan Tee, 22, booked a 1,001 sq ft three-bedroom unit with his girlfriend for about $750 per sq feet (psf).

'We think that the price offered is quite attractive, it is a good location near the MRT plus Frasers is also one of the top developers,' he added.

Another buyer, Mr Chua and his fiance - whose ballot number was picked after three agonising hours of waiting - said their first choice had gone but they decided to go for another three-bedroom flat on a lower floor instead.

HSR chief executive Patrick Liew said that 'response has been tremendous' as the undersupply of ECs over the past five years meant that demand has stayed high. He expects the project to sell out 'in a short while'.

Mr Steven Tan, executive director of residential at the OrangeTee agency, said the project's high take-up rate on a single weekday was very encouraging.

'If they miss this, buyers might have to wait for a while to have another EC site so close to an MRT station... If they wait, they might also exceed their income ceiling so they might have chosen to buy now,' he added.

MCC Land's viewing of its EC The Canopy at Yishun Avenue 11 begins today. Bookings start next Saturday.

The 99-year leasehold, 406-unit project will offer two-, three- and four-bedroom units ranging from 872 sq ft to 1,410 sq ft, and 22 penthouses between 2,088 sq ft and 2,239 sq ft. Average prices will range from $600 psf to $700 psf.

OrangeTee's Mr Tan said The Canopy will be catering to a different catchment of buyers in the Yishun and Woodlands area compared with Esparina Residences but he expects response to be similarly strong.

Its lower psf price also meant that it could meet the needs of more price-sensitive buyers, he added.

Despite the high number of applicants, not all flats were sold as some potential buyers might have backed out after not being able to get their preferred units. With 95 per cent of the units reserved for first-timers, second-time applicants were turned away two hours into the ballot after the quota was reached.

esthert@sph.com.sg



Balloting in progress in a tent outside the Esparina Residences showflat yesterday. Inside the showflat, there was a long line of buyers waiting to book a unit. The project located near Buangkok MRT station had been more than 100 per cent oversubscribed. -- ST PHOTO: RAJ NADARAJAN

ST : HUDC privatisation not a done deal

Oct 9, 2010

HUDC privatisation not a done deal

Hougang Ave 7 on track, but residents at two other estates still holding out

By Cheryl Ong

THE privatisation of three Housing and Urban Development Company (HUDC) estates in Hougang and Potong Pasir is not looking to be an open-and-shut case, despite a recent report that an HUDC flat set to be privatised by the year end was sold for $1.1 million.

Only a cluster of 286 units at Hougang Avenue 7 is at an advanced stage, with the pro tem committee overseeing the process garnering 88 per cent approval from residents. Residents at the other two HUDC estates are more tentative.

At Hougang Avenue 2, a pro tem committee has been formed, but only 70 per cent of residents are in favour of privatising - below the 75 per cent needed.

At Potong Pasir, such a committee has not even been formed, as residents continue to weigh the pros and cons.

In July, the Ministry of National Development announced that 797 HUDC apartments and maisonettes in Hougang avenues 2 and 7 and Potong Pasir were slated for privatisation.

For an HUDC estate to be privatised, 75 per cent of residents need to support the proposal. Consent must also be obtained from the Housing Board.

If the vote goes through before Aug 1, 2013, the Government will cap the cost of privatising the homes at $30,000 per unit.

The Government started building HUDC flats from the 1970s to satisfy the needs of middle-income earners who could neither afford private properties nor qualify for HDB flats.

Although having 99-year leases like HDB flats, HUDC flats typically had larger built-in areas. Some were gated stand-alone estates that accorded residents extra privacy and exclusivity.

The HUDC programme was stopped in 1987, and in 1995, the Government announced that HUDC estates would gradually be allowed to go private.

The key benefits of privatising these estates are that home owners will be able to manage their estates and build facilities typically found in condominiums, like swimming pools or fitness corners. Property value usually increases as well because of fewer restrictions on locals or foreigners buying private apartments.

But some residents interviewed by The Straits Times said they were not sure if further price rises would materialise. As a result, some are unsure if it would really be worth their while paying the privatisation cost.

One resident, Mr Jason Tan, 50, said: 'I bought my resale flat 19 years ago at $212,000, but it's worth some $700,000 now. The value of HDB flats today is already at an all-time high, and I don't think it's possible it will rise by much after we privatise.'

Industry observers believe the $1.1 million sale at Shunfu, an HUDC estate in the process of being privatised, is a one-off that is unlikely to be repeated.

'Shunfu is quite a unique case because of its proximity to the Circle Line,' said Mr Colin Tan, Chesterton Suntec International's research and consultancy director. 'Although it's not impossible for the HUDC flats to fetch high prices, considering they are now worth $700,000, it's quite a tall order to hope they can close the gap and fetch a million too.'

Other residents said they feared that privatisation could kick off a chain of events that could force them to move.

'If my home is privatised, there's a chance of a collective sale after that. But I don't want to move out,' said Mrs Tang, 50, a Hougang resident. 'I don't think I can find an HDB flat as big as my home, and it will mean I have to downgrade.'

Hougang resident Vinod Thigarajah, 29, worries that there will be fewer parking spaces. 'Right now, we share the parking spaces with the HDB estate next door, but if we become privatised, there may be insufficient parking spaces.'

But Potong Pasir resident Ruth Yap, 72, felt privatisation could improve the estate. 'It could mean more amenities for us,' she said. 'But I don't think we have room for other things like swimming pools or gyms.'

National University of Singapore real estate department head Yu Shi-Ming said the trade-offs will make it a difficult decision for residents to make.

'With privatisation, owners have to decide if the additional cost is worth the premium as a private apartment.'

Hougang Avenue 7's pro tem committee chairman Winston Chong said he hopes residents will take a long-term perspective and vote to support the process.

'However, we don't want the residents to feel as if their voices are not heard. We will go with whatever the majority want.'

ongyiern@sph.com.sg

ST : Petir Road residential site draws nine bidders

Oct 8, 2010

Petir Road residential site draws nine bidders

By Joyce Teo

INTEREST in a residential development plot at Petir Road, right next to the sold-out Tree House project, has been strong, with nine bids submitted for the site.

The bid prices indicate that developers are optimistic about the location, given that the 429-unit Tree House was quickly snapped up in the second quarter, said CBRE Research director Leonard Tay.

'Tree House showed there's good demand for this location, even though it is not near any MRT station,' said DTZ's South-east Asia research head, Ms Chua Chor Hoon.

Still, Wing Tai's Wincheer Investment topped the tender with a bid of $177.4 million - or $345 per sq ft per plot ratio - that is within expectations. This is just 2 per cent above Sim Lian Land's bid of $173.8 million, or $338 psf ppr.

An industry expert had expected bids ranging from $320 to $355 psf ppr, which works out to between $164.5 million and $183 million.

The 2.3ha site was launched for sale a day after the Government introduced measures to curb property speculation on Aug 30.

On that same launch day, four other sites - all of which are also near projects that have been launched in the past year or so - were made available for sale should developers be keen on them.

The 99-year leasehold Petir Road site has a maximum gross floor area of 47,763 sq m and can yield about 430 flats.

Other bidders include Low Keng Huat's Kwan Hwee Investment and Partner Vision Holdings' Plan Achieve.

City Developments - which is developing Tree House together with Hong Realty - made its bid through Sunmaster Holdings. It came in fifth with a bid of $167.6 million or $326 psf ppr.

Allgreen Properties put in the second-lowest bid of $140.9 million or $274 psf ppr, while construction firm Teambuild Land made the lowest bid of $103 million or $200 psf ppr.

Mr Tay said the top bid translates to a break-even cost of $680 psf to $700 psf and units in the new residential project may sell for above $800 psf. DTZ's Ms Chua said the successful developer could price the units at some $800-$830 psf, close to the average launch price of $830 psf at the Tree House in April this year.

Colliers International's director of research and advisory, Ms Tay Huey Ying, said the top bid came in within the market range seen for recent tenders. 'In general, developers are more cautious now as their bids are more subdued,' she said.

CBRE Research noted that units in Mi Casa, a new project at Choa Chu Kang Avenue 3, sold for $700-$850 psf in the July-September period this year. And in the resale market, units in the 12-year-old Maysprings nearby sold at between $560 psf and $760 psf over the same period.

The Petir Road site is on the south-eastern fringe of Bukit Panjang HDB estate, about 10 minutes' walk from the Pending LRT station. When the Downtown Line 2 is completed in 2015, the nearest station will be Hillview station a short drive away, said CBRE Research.

ST : HK, S'pore investors buy Beverly Hills landmark

Oct 7, 2010

HK, S'pore investors buy Beverly Hills landmark

LOS ANGELES: The family firm of Mr Wee Cho Yaw is among a group of investors that has paid a knockdown price of US$150 million (S$197 million) for a former landmark property in Beverly Hills.

Joint Treasure bought the 3.2ha property next to the Beverly Hilton for less than a third of its sale price of around US$500 million in 2007, at an auction from Mexican billionaire Carlos Slim's bank, Inbursa.

Joint Treasure purchased the property on behalf of three of its consortium partners - the Chow Tai Fook Group of Hong Kong, the Wee Cho Yaw Family Group and Mr David Chiu of Far East Consortium International. Far East Consortium is not related to Singapore's Far East Organization.

Other United States properties acquired by the group include the New York Four Seasons Hotel and two New York City apartment and condominium buildings.

The 9900 Wilshire Boulevard site, formerly home to the upscale Robinsons-May department store, was owned by Britain's Candy Brothers but fell into foreclosure this year and was acquired by Inbursa, a lender. It is at the junction of Wilshire and Santa Monica boulevards in the heart of Beverly Hills.

The new owners intend to develop it with 235 condo units and 17,000 sq ft of retail and restaurant space, under a plan given permission by local authorities in 2008.

'This is an incomparable site that cannot be replicated, and we intend to build a superb project offering world-class luxury residences,' said Mr Daniel Yiu, senior adviser to Joint Treasure.

AGENCE FRANCE-PRESSE, LOS ANGELES TIMES



The 9900 Wilshire Boulevard site was formerly home to the upscale Robinsons-May department store. -- PHOTO: AGENCE FRANCE-PRESSE

ST : Singapore Technologies Building up for sale

Oct 7, 2010

Singapore Technologies Building up for sale

SINGAPORE Technologies Building in Tanjong Pagar has been put up for sale amid an improving office market.

The freehold 13-storey office building with ground-floor showroom space is located at the corner of Cantonment and Lim Teck Kim roads.

Marketing agent Jones Lang LaSalle is seeking expressions of interest, with submissions due by Nov 4.

It said the asking price is about $1,500 per sq ft and up, based on the net lettable area of 98,906 sq ft. This works out to a total price of some $150 million or more.

The building, owned by Singapore Technologies Group, sits on a 19,402 sq ft site, has a gross floor area of 128,600 sq ft and 135 parking spaces.

The building is currently occupied by various office tenants, and will offer the buyer exposure to the improving CBD office rent cycle, said Jones Lang LaSalle.

The firm's national director Anthony Barr said he expects to see interest from institutional investors, developers, private buyers and owner occupiers.

'There's a lot of positive sentiment in the office market,' he said.

'Singapore's commercial real estate market is benefiting from buoyant economic activity which, in turn, is driving strong rental and capital value growth.

'The Tanjong Pagar area, in particular, is experiencing strong tenant demand.'

DTZ has said in a recent report that transactions in the rebounding office sector crossed $1 billion in the third quarter of the year, a level not breached since the second quarter of 2008.

The consultancy did not include deals for Chow House, Samsung Hub and Chevron House, as these deals are pending legal completion.

If deals for these buildings and The Corporate Office were included, office investment sales deals done so far this year would have reached about $3.56 billion, said DTZ yesterday.

JOYCE TEO