ST : Court clears sale of $37m bungalow

Dec 02,2010

RIDOUT PROPERTY BATTLE
Court clears sale of $37m bungalow
Judge rules against group that claimed it had $20m deal to buy property



The purchase of the Ridout Road bungalow is expected to be concluded some time this month. But EC Investment Holding has filed an appeal to overturn the sale. -- ST PHOTO: CAROLINE CHIA



By Gabriel Chen


A COURT has ruled against a group who claimed they had a deal to buy a Ridout Road bungalow for $20 million. The move paves the way for the owner, Indonesian-born businessman Agus Anwar, to sell the house for $37 million to a banker who served the late Nina Wang, who was Asia's richest woman.

Two parties - EC Investment Holding, owned by Mr Tan Koo Chuan of Yi Kai Group and Mr Melvin Poh of Fission Group, and former Goldman Sachs banker Thomas Chan - were fighting for control of the house at 39A Ridout Road that Mr Agus bought in 2006.

But three months ago, the High Court ordered the sale of the property in the upmarket Holland district to Mr Chan for $37 million.

The purchase of the two-storey property by Mr Chan - which sits on a 40,600 sq ft plot, complete with a tennis court and swimming pool in the good-class bungalow area - is expected to be concluded some time this month.

But the story may not be over yet. EC Investment Holding has filed an appeal to overturn the sale with the hearing expected to be held in March, sources say.

Mr Agus originally acquired the 40,600 sq ft house for $28 million in 2006. He had paid $11 million and the stamp duty of over $744,000 from his own funds, and taking the balance of $17 million from a $30 million facility extended to him by Hong Leong Finance.

However, the financial crisis hit his finances and, on May 16, 2008, Hong Leong Finance recalled the loan and terminated the facility after Mr Agus failed to make his payments.

'Agus Anwar was coming under increasing financial pressure. His investments were then badly hit by the global financial crisis sparked off by the collapse of Lehman Brothers in September 2008,' according to a High Court judgment dated September this year.

EC Investment Holding claims that in the terms of a deal dated June 8 last year, it was granted an option to buy Mr Agus' property for $20 million, in exchange for a $1.5 million option fee. Mr Chan also obtained an option to buy the property for $37 million on Oct 8 last year.

Justice Quentin Loh, in his September judgment, noted that EC Investment knew before it entered into the transaction that Mr Agus was desperate for a short-term loan.

He said that EC Investment Holding's Mr Tan 'feigned ignorance on many things and kept up the simple mantra that he was only interested in property, smelt a good deal and went after it'.

Based on the evidence, the court did not grant EC Investment's request that the sale be completed.

EC's Yi Kai and Fission are behind the development Alexis along Alexandra Road.

As for Mr Chan, Justice Loh said that 'everyone accepted that he had innocently walked straight into this melee'. Mr Chan had wanted to buy a bungalow and after being introduced to the property, acted decisively in putting down an option fee. He did not meet Mr Agus at all and was unaware of the earlier option.

Mr Agus, said to be in his late 50s and now a Singaporean, is no stranger to court battles.

In January, he was ordered by the High Court to make good on the payment of a $10.5 million loan he received two years ago from an investment firm while in financial difficulty.

Mr Agus was once a significant shareholder in two Indonesian banks, PT Bank Kredit Asia and PT Bank Pelita, but there was a run on these banks during the 1997 financial meltdown and they were taken over by the Indonesian Bank Restructuring Agency.

Mr Agus came to Singapore in 2000 and became a citizen in 2004 - the same year he made headlines for allegedly owing the Indonesian government 3.2 trillion rupiah, or $467 million.

The $37 million will help him clear more of his debt - as of the middle of this year, he had personal available assets of nearly $60 million, but owed creditors $103.3 million.

But, with March's appeal hearing on the horizon, the wrangle over the Ridout property could drag on.

gabrielc@sph.com.sg




---------------------------------------------------


Who is Thomas Chan?

THE buyer of the house in Ridout Road, Mr Thomas Chan, is a high-flying banker, hailing from the investment management division at Goldman Sachs. He left the American firm earlier this year and has since started his own advisory practice here.

According to those who know him, he is a low-key character who, although wealthy, does not brag about his possessions.

'He's very quiet, polished, and almost like a loner,' said a banker who caught up with him earlier this year. 'He has a couple of cars, but you'll never know he has several because he doesn't talk about them.'

Mr Chan is apparently a Singaporean, but hails originally from Hong Kong. Said to be in his 40s, he helped the late Hong Kong billionaire Nina Wang with her share transactions.

A keen investor in luxury properties, he is said to have picked up a property at Queen Astrid Park for about $28.3 million from Mr Zain Fancy, formerly head of Morgan Stanley Real Estate Investing for Asia Pacific, earlier this year.

And last year, Mr Chan sold a site in Dalvey Road for $27.01 million. He is also reported to have bought a bungalow in Belmont Road for $30.5 million from Mr Ong Kok Thai, managing director of Vanguard Interiors and the Peranakan Place Group, also last year.

Court documents say Mr Chan plans to build a new bungalow at Ridout Road for himself and his family.

GABRIEL CHEN

ST : Lion City Hotel site up for sale

Dec 02,2010

Lion City Hotel site up for sale
Freehold plot may get bids of $300m for residential, commercial development



The site of the Lion City Hotel and neighbouring Hollywood Theatre, near Paya Lebar MRT station, is set to be redeveloped for both residential and commercial use. -- PHOTO: KNIGHT FRANK



By Esther Teo
THE iconic Lion City Hotel and the adjoining Hollywood Theatre site have been put up for sale and could be in line for redevelopment into swanky new homes and shops.

The 147,909 sq ft freehold plot, which has been launched for tender with a closing date of Jan 6, is expected to attract bids topping $300 million from developers.

Once sold, it is likely that the land will host retail shops or offices and more than 200 new homes - the first time a large project of more than 100 units has been developed in the area since Sims Residences and Vistaya View were completed in 2003.

Such a project will further boost the rejuvenation of the area and is in line with the Government's plans for Paya Lebar Central to be developed into a 'lively, pedestrian-friendly commercial hub with a distinct cultural identity'.

Including an estimated development charge of $77.8 million payable for the re-zoning on top of the projected price of $300 million, developers can expect to foot $753 per sq ft (psf) per plot ratio.

The site, located within 350m of Paya Lebar MRT Station, is zoned for hotel and commercial use in the 2008 Masterplan.

But the Urban Redevelopment Authority has granted approval for it to be redeveloped into a mix of residential and commercial developments up to a gross plot ratio of 3.39, according to joint marketing agents Landmark Property Advisers and Knight Frank.

The plot consists of 243,805 sq ft of residential gross floor area (GFA) and 264,119 sq ft of commercial GFA, which will allow for a shopping centre similar to that of Katong Mall and some 240 apartments of an average size of 1,000 sq ft, the marketing agents said.

The GFA, however, includes a substation site of about 2,048 sq ft currently owned by SP PowerAssets.

Mr Colin Tan, research and consultancy director of property firm Chesterton Suntec International, said the residential segment is likely to perform well since it is close to the MRT station. The long-term potential of the Paya Lebar area might also appeal to buyers, he added.

Paya Lebar Central is one of the three commercial hubs selected to provide alternative locations for businesses and to bring jobs closer to homes as part of the Urban Redevelopment Authority's decentralisation strategy. The other two are Jurong Lake District and Kallang Riverside.

The Lion City Hotel was built by the late property magnate Wee Thiam Siew some 40 years ago and the Wee family has been operating it ever since.

The old Hollywood Theatre used to be the location of City Harvest Church, but it has since been leased to Sheng Siong supermarket.

With the site now being allowed to switch to residential and commercial uses, the family has decided to divest this asset as property development is not their core business, the statement from the marketing agents said.

'We expect keen interest from developers as it is seldom Singapore has a freehold site in single ownership suitable for large-scale development being offered for sale,' the marketing agents added.

esthert@sph.com.sg

ST : Condo-style public housing plot attracts only two bids

Dec 01,2010

Condo-style public housing plot attracts only two bids

By Daryl Chin
A COMPANY linked to construction firm Low Keng Huat yesterday put in the top bid for a public housing site under the Design, Build and Sell Scheme (DBSS) for condo-style public flats.

But there was not much competition: only one other bid came in for the plot at Upper Serangoon Road opposite Serangoon Secondary School, the Housing Board said yesterday. This is the weakest reception for a DBSS tender since 2008.

Kwan Hwee Investment beat the other contender, Sim Lian Land, with a bid of $155.23 million. The company came in second in a tender last month for a DBSS site at Bedok Reservoir Crescent.

The Upper Serangoon plot measures 215,278 sq ft and has a maximum gross floor area of 753,474 sq ft. This works out to be about $206 per square foot per plot ratio (psf ppf).

The site is estimated to yield 630 dwelling units.

Mr Nicholas Mak, research executive director for SLP International Property Consultants, said the recent slew of sites announced for sale by the Government could be one of the reasons for the low number of bids for this plot.

The Government Land Sales programme for the first half of next year will have a total of 30 sites that can generate a record 14,300 residential units - higher than the 13,900 residential units offered for the second half of this year.

For that reason, said Mr Mak, some developers may be conserving their residential resources for upcoming land tenders.

'Another reason is that some developers may also be concerned that the HDB resale market may cool, thereby reducing the demand for DBSS flats,' he said.

He estimates that Kwan Hwee Investment's bid could translate to a break-even cost of about $420 to 450 psf. He added that this would mean a five-room flat in the project could be launched at a price of $500,000 to $535,000.

Meanwhile, Punggol will soon see the launch of its first executive condominium, located in Punggol Central.

Prices at Prive will average between $660 and $690 psf, said NTUC Choice Homes Co-operative in a press release yesterday. It is jointly developing the project with CEL Development.

The four-tower development will comprise 680 apartments, ranging from two- to four-bedroom units.

Apartment sizes start from 775 sq ft for a two-bedder to 1,442 sq ft for a four-bedroom unit.

Viewing and e-application start from Friday, while sales bookings start from Dec 10.

Additional reporting by Cheryl Lim



At another development Prive the first executive condominium in Punggol, prices will average between $660 and $690 psf for the 680 apartments. --PHOTO: NTUC CHOICE HOMES

ST : Developers may baulk at price tags

Dec 01,2010

COLLECTIVE SALES
Developers may baulk at price tags

Larger plots going on the market but reserve price may prove sticking point

By Esther Teo
MORE and larger collective sales are in the pipeline as home owners attempt to cash in on the hot property market - but experts say the actual number of successful sales might just disappoint.

Hawaii Tower along Meyer Road is among those in the latest batch to have secured the necessary 80 per cent approval from residents, along with former HUDC estate Pine Grove. And more than 53 per cent support has been secured so far in the collective sale process for Pearl Bank apartments in Outram.

The Straits Times understands that the reserve price for Hawaii Tower's 192,340 sq ft plot, which was originally developed in 1984, has been set at $700 million.

This excludes a development charge of $55 million which, when included, works out to about $1,402 per sq feet per plot ratio. This is believed to be the freehold development's third collective sale attempt.

Marketing agent CB Richard Ellis (CBRE) said in a notice posted at the District 15 development that owners of 110 of the 135 apartments had signed the collective sale agreement (CSA) as of Nov 24.

This equates to 80.93 per cent of the share values and 80.2 per cent of the strata area, CBRE stated.

Owners of the three-bedroom units of about 2,200 sq ft each are expected to pocket an average of just over $5 million, while owners of the six 4,300 sq ft penthouses can expect a windfall of $8.8 million if the reserve price is met. The tender is expected to open early this month and close at the end of next month.

Pine Grove was previously reported to have been put up for collective sale at a record-breaking $1.7 billion reserve price, after it achieved the crucial 80 per cent approval last month.

After the five-day cooling-off period, 534 out of 660 units - making up 80.9 per cent of the total share values and 80.63 per cent of the total strata area of the development - had signed the CSA.

Although more collective sale tenders are expected to come on the market in the first half of next year, experts say a wide gulf could be opening up between owners' asking price expectations and what developers are willing to pay.

They add that high reserve prices and the bumper release of state land in the government land sales programme might reduce demand from developers cautious after the Government's recent property cooling measures.

Mr Karamjit Singh, managing director of Credo Real Estate, said that while some collective sale projects set reserve prices in line with the market, others could seek the comfort of higher prices to assure themselves of sufficient profit to purchase replacement homes.

Even then, those that start off realistically may find themselves needing to raise the reserve price midway to win the 80 per cent approval, he added.

EL Development managing director Lim Yew Soon said that large quantums for mega sites were risky for single developers and would mostly price out small to mid-sized developers.

Development charges have increased substantially and the new rules regarding the completion period for developers with foreign shareholders would place further downward pressure on what developers are willing to bid, he added.

The proposed amendment to the Residential Property Act, which is expected to take effect early next year, will apply to private projects developed by developers with at least one foreign shareholder or foreign director - effectively covering most listed developers.

Such projects, built on residential sites bought from private-sector sources including collective sales, will in future have to be completed within a stipulated period. If not, developers could not only lose their bankers' guarantees, as is the case now, but would also have to pay the state for any time extension.

DMG & Partners property analyst Brandon Lee said these amendments are more likely to affect prospective collective sales.

'Developers who now acquire (collective sale) sites will effectively have their building period cut down from seven to five years. As such, we reckon this could act as a further dampener to the still-sluggish (collective sale) market, where developers replenish their mid- and high-end land bank,' he noted.

But property market watchers say developers are often keen on such sites as they provide an opportunity to purchase freehold land in prime locations, unlike those from the government land sales programme, which are on 99-year leases.

CapitaLand Group chief executive Liew Mun Leong said last week that it was 'a possibility' that CapitaLand could be interested in bidding for the Pine Grove site.

Although the plot is attractive, the price tag of $1.7 billion is a hefty one, he said, and the group might consider tying up with partners to bid for the site.

esthert@sph.com.sg

BT : New rule may weigh on prices of luxury condos

Business Times - 30 Nov 2010

New rule may weigh on prices of luxury condos

Developers lose flexibility to time their construction as delays could spell big payouts on their part

By KALPANA RASHIWALA

(SINGAPORE) The prices of luxury condos have continued to rise this year but a new rule may soon tie the hands of the developers.

Till now, many have picked their time to launch developments when sentiments are good and decent prices can be charged. But under the rule changes which are expected to kick in early next year, they may lose this luxury.

If they bust the project completion period on sites bought from private sector sources, they stand to lose not just the 10 per cent bankers' guarantee for land cost, but could also end up making huge payments for time extension.

All this could force them to launch earlier than they might like and affect prices, market watchers said.

The median price of new luxury condo transactions stood at $3,265 per square foot in Q3 this year, an increase of 18.7 per cent year to date, according to CB Richard Ellis' analysis. However, the figure is still about 13 per cent shy of the peak achieved in Q4 2007.

A question mark now hangs over whether the previous peak median price of $3,750 psf can be scaled next year.

CBRE's compilation shows about 1,500-odd luxury non-landed homes could be generated on projects that have received planning approval from Urban Redevelopment Authority and which have yet to be launched. These include five projects in the Ardmore Park area alone, the Westwood site at Orchard Boulevard, the former Parisian plot at Angullia Park and Ho Bee's and IOI's 302-unit condo on the Pinnacle Collection plot at Sentosa Cove.

CBRE executive director (residential) Joseph Tan says: 'Developers' strategy in the first instance, would be to hold off launching these projects as long as they can until sentiment improves further in this segment.'

Agreeing, Wheelock Properties (Singapore) CEO David Lawrence says: 'Traditionally, developers know that for really high-end projects on very good sites like Ardmore Park, if you just keep them in your pockets, eventually prices will come up and they make money. But developers can't do that anymore.'

The catch is the amendment to the Residential Property Act that will apply to private residential projects undertaken by foreign housing developers with Qualifying Certificates (QCs), a category which effectively covers all listed developers.

Such projects, built on residential sites bought from private-sector sources, will in future have to be completed within the stipulated project completion period (PCP). Otherwise, the developers may not only lose their bankers' guarantees as is the case currently but also have to pay the state for any time extension.

This is similar to the scheme for sites sold through the Government Land Sales Programme. Developers have to pay 8 per cent of the tendered land price for the first year of PCP extension. They must pay 16 per cent for the second year's extension and 24 per cent per annum for the third and subsequent years.

CBRE's Mr Tan estimates that since it takes 30-36 months to complete a typical high-rise condo, and assuming developers need to attain Temporary Occupation Permit (TOP) by 2014-2015, construction would have to begin around 2011-2012.

That still leaves some room to avoid a bunching of project launches given that on average, developers have been able to sell an average of about 650 non-landed homes per year at above $2,000 psf over the past five years.

One way that deep-pocketed developers may get out of the bind is to build their projects first - and meet PCP deadlines - but launch them for sale only when the sentiment is good.

For this reason, most property consultants don't expect developers to drop prices. 'But there's a good chance they may have to reduce their profit expectations if they wish to clear the units,' says Knight Frank managing director (residential services) Peter Ow. While he's betting there's a fair chance that the market could revisit the 2007-high in luxury condo prices next year, others are less sanguine.

As Mr Lawrence puts it: 'Prime property in the long term will still do very well in Singapore, but it's a difficult period at the moment. There's plenty of demand. I think prices won't come down much, but they won't go up to the level that developers are expecting; perhaps (they'll have to) make much finer profit margins.'

There have been 'one-off' cases of high-priced transactions lately - such as a high-floor apartment at Boulevard Vue that Far East Organization sold last month for $4,800 psf reportedly to a foreign buyer. 'However, we'll need to see more foreign money flowing into Singapore. Right now, Singapore luxury condo prices are still below those in other major cities including London, where prime apartments are going for about £pounds;2,500-4,000 psf' (S$5,205-8,329) says CBRE's Mr Tan.

DTZ South-east Asia research head Chua Chor Hoon said: 'With the major economies still weak, foreign buyers have not come back to Singapore in a big way yet.'

Knight Frank's Mr Ow is hopeful that 'property curbs in China and Hong Kong could divert some moneys to Singapore and boost our high-end market'.


Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.

ST : Bukit Panjang LRT and MRT to be linked

Nov 30,2010

Bukit Panjang LRT and MRT to be linked
New bus interchange to provide seamless transfer

By Goh Chin Lian
A NEW bus interchange between the existing LRT station and a new station on the Downtown MRT Line in Bukit Panjang will allow commuters to seamlessly transfer from either line.

The interchange - which may be air-conditioned - will be integrated with residential and commercial developments on a site in Jelebu Road and Petir Road.

The 1.89ha site, now partly occupied by an open-air bus interchange, was offered up for sale last Friday by the Urban Redevelopment Authority (URA).

The Downtown Line, scheduled to come up in 2015, is to be situated 120m from the LRT line, making transfers inconvenient. The bus interchange will provide a seamless link.

In addition, a new, elevated 120m covered linkway will also link the mezzanine level of the LRT station to the entrance of the MRT station, the Land Transport Authority (LTA) and the URA said.

The site on sale has a 99-year lease with a maximum permissible gross floor area of 56,864 sq m, with at least 35per cent of this area set aside for commercial use, the URA said.

The move follows an increase in the frequency of bus services to make life easier for commuters in the area.

Residents had asked for better connectivity from the bus interchange and Bukit Panjang LRT station to Bukit Panjang MRT station.

The MRT station, scheduled to open by 2015, is part of the Downtown Line that will run to the city centre, to places such as Bugis and Marina Bay.

Bukit Panjang MP Teo Ho Pin and Holland-Bukit Timah GRC MPs Vivian Balakrishnan and Liang Eng Hwa had proposed moving the MRT station closer to the LRT station, 70m apart from each other, to allow for easier transfers.

Their wish has been partly granted: The MRT station cannot be moved because of technical difficulties. The underground MRT line cannot swing sharply to meet the LRT station and return to Woodlands Road since the distance was too short, the LTA had said.

The Bukit Panjang development is in line with efforts to make public transport attractive, by making transfers seamless between bus and rail, as well as to link commuters to commercial activities.

Similar public transport hubs operate in Toa Payoh, Sengkang, Ang Mo Kio and Boon Lay. Two others, in Serangoon and Clementi, are due to open by next year.

MPs like Dr Teo and Mr Liang were cheered by the latest announcement.

Dr Teo said the area needed a town centre, with more food and beverage and entertainment outlets than those at the present Bukit Panjang Plaza.

Mr Liang had also raised another transport issue in Parliament last week, that of raising the capacity of Bukit Panjang LRT trains as more flats are built in the area.

In a written answer, Transport Minister Raymond Lim noted that the trains and station platforms had become more crowded, especially during peak hours.

While LRT daily ridership rose by about 2.2 per cent a year from 2001 to this year, it grew by more than 7 per cent in recent years.

He said the LTA was working with LRT operator SMRT to improve train capacity.

Bus capacity and frequencies have also been increased for seven bus services, including service 922, which was re-routed to serve two more areas in the estate, Jelapang and Bangkit.

Also under study are bus services that will give Bukit Panjang residents more direct transport options to the city, he said.

chinlian@sph.com.sg