Business Times - 27 Jan 2010
More Circle Line stations to open in April
By SAMUEL EE
ELEVEN more Circle Line (CCL) stations will begin operations on April 17, Transport Minister Raymond Lim announced yesterday.
These stations, from Dhoby Ghaut to Bartley, are part of the 10.8 kilometre long second phase of the new 33.3 km MRT line. The stations - Tai Seng, MacPherson, Paya Lebar, Dakota, Mountbatten, Stadium, Nicoll Highway, Promenade, Esplanade, Bras Basah and Dhoby Ghaut - will join the five stations from Bartley to Marymount, which were opened on May 28 last year.
About 200,000 people are expected to use the 16 stations - from Dhoby Ghaut to Marymount every day.
'This is a significant milestone in the expansion of our rail network,' said Mr Lim, explaining that the direct connection provided by the CCL will cut down travelling time for commuters.
For example, those travelling from Simei to Bishan currently take 46 minutes to travel by MRT. With the CCL, it will require 31 minutes, or a 33 per cent time savings.
The CCL is an orbital line that links to existing train lines to reduce travelling times to suburban areas by bypassing the city centre. When the $6.7 billion line is fully completed, up to 500,000 people are expected to use it daily.
Passengers travelling from the eastern parts of Singapore can use the new Paya Lebar Interchange Station to bypass the busy City Hall and Raffles Place interchanges to get to the city and northern parts of Singapore. Those travelling from the north and north-east commuting to the city and the east will also benefit from the CCL.
Mr Lim added that the rest of the 29 CCL stations will open in 2011. He said that opening the CCL in phases is not cost-effective, but it is good from a commuter perspective.
Earlier, he had visited the award-winning Stadium CCL Station, which is designed to accommodate large crowds from the nearby facilities, before travelling three stops north to Paya Lebar Station
The Paya Lebar Station connects to the East-West Line and is the first interchange station to integrate above-ground and underground lines.
Commuter connectivity between the new CCL station and the East-West Line station is helped by two wide passageways.
Mr Lim noted that the stations paid 'a lot of attention to detail' and cited the artwork on the wall, which reflects the history of the surrounding area. In the Paya Lebar Station's case, there are illustrations of pigs because of the pig farms that used to be located there.
He also thanked those living in the areas along the CCL for putting up with the inconvenience during the construction of the line.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Saturday, January 30, 2010
CNA : HDB will construct its one millionth flat capping 50 years of achievements
HDB will construct its one millionth flat capping 50 years of achievements
By S.Ramesh, Channel NewsAsia | Posted: 26 January 2010 2048 hrs
SINGAPORE: Is there a role for Singapore's Housing and Development Board (HDB), now that the entire population has been housed?
Prime Minister Lee Hsien Loong said the answer is "Yes" as the HDB is still responsible for providing good public housing and fostering social integration.
Speaking at its 50th anniversary, Mr Lee also revealed the board will celebrate half a century of achievements by building its one millionth flat this year.
The HDB is a central part of the Singapore Story said Prime Minister Lee. Over half a century, it housed a growing population and was integral in nation-building.
PM Lee said: "Two generations of Singaporeans have grown up in HDB flats. Public housing helped to mould our unique national identity and collective experience as Singaporeans. It created and shaped our communities and provided the foundation for our social stability and economic growth."
But Mr Lee notes the environment has changed and the aspirations of Singaporeans risen sharply.
He added: "Finding a roof over our heads is no longer the pressing requirement. The HDB flat is not just a shelter but also a key investment asset. People have many considerations in choosing their flats - they want the right flat, in the right locality, at the right time and at the right price.
“Such high expect¬ations are understandable since buying a flat is a major commitment for a young couple setting up a home together."
And HDB is committed to providing high quality housing, even though it cannot accommodate every preference or expectation.
The Prime Minister also emphasised a point expressed several times by other Ministers and very much an ongoing concern amongst flat buyers in the rising property market. And that is the government's commitment to keeping HDB flat prices affordable for Singaporeans.
But Mr Lee said the government has less control over prices in the resale market.
He explained: “These resale prices are set by individual households who transact flats on a willing-buyer, willing-seller basis, and are affected by movements and sentiments in the wider economy, including in the private property market. Hence, resale prices of HDB flats will fluctuate from year-to-year. But over the long term, the value of HDB flats depends on the strength of the Singapore economy."
So provided Singapore continues to do well, Mr Lee's confident the flats will maintain their value and Singaporeans can enjoy an appreciating asset. - CNA/vm
By S.Ramesh, Channel NewsAsia | Posted: 26 January 2010 2048 hrs
SINGAPORE: Is there a role for Singapore's Housing and Development Board (HDB), now that the entire population has been housed?
Prime Minister Lee Hsien Loong said the answer is "Yes" as the HDB is still responsible for providing good public housing and fostering social integration.
Speaking at its 50th anniversary, Mr Lee also revealed the board will celebrate half a century of achievements by building its one millionth flat this year.
The HDB is a central part of the Singapore Story said Prime Minister Lee. Over half a century, it housed a growing population and was integral in nation-building.
PM Lee said: "Two generations of Singaporeans have grown up in HDB flats. Public housing helped to mould our unique national identity and collective experience as Singaporeans. It created and shaped our communities and provided the foundation for our social stability and economic growth."
But Mr Lee notes the environment has changed and the aspirations of Singaporeans risen sharply.
He added: "Finding a roof over our heads is no longer the pressing requirement. The HDB flat is not just a shelter but also a key investment asset. People have many considerations in choosing their flats - they want the right flat, in the right locality, at the right time and at the right price.
“Such high expect¬ations are understandable since buying a flat is a major commitment for a young couple setting up a home together."
And HDB is committed to providing high quality housing, even though it cannot accommodate every preference or expectation.
The Prime Minister also emphasised a point expressed several times by other Ministers and very much an ongoing concern amongst flat buyers in the rising property market. And that is the government's commitment to keeping HDB flat prices affordable for Singaporeans.
But Mr Lee said the government has less control over prices in the resale market.
He explained: “These resale prices are set by individual households who transact flats on a willing-buyer, willing-seller basis, and are affected by movements and sentiments in the wider economy, including in the private property market. Hence, resale prices of HDB flats will fluctuate from year-to-year. But over the long term, the value of HDB flats depends on the strength of the Singapore economy."
So provided Singapore continues to do well, Mr Lee's confident the flats will maintain their value and Singaporeans can enjoy an appreciating asset. - CNA/vm
BT : Keppel Land to launch 5,500 homes in Asia
Business Times - 26 Jan 2010
Keppel Land to launch 5,500 homes in Asia
Fourth quarter net profit jumps 56%; group on the prowl for more land
By UMA SHANKARI
KEPPEL Land, which saw fourth-quarter earnings jump 56 per cent as property markets across Asia recovered, said it plans to launch more than 5,500 homes across the region for sale this year.
'Keppel Land is moving into 2010 with optimism on the back of its stronger financial position, improving residential sales and office space take-up together with expectations of continued recovery of Asia and a return of capital flows from the West,' chief executive Kevin Wong said yesterday.
In Singapore, KepLand will sell more units in two upmarket projects - Marina Bay Suites and Reflections at Keppel Bay - to capitalise on the opening of the integrated resorts, which is expected to boost the high end market.
And in China, the group will launch two projects in Shanghai as well as phase one (comprising about 1,700 units) of its 35.4 ha project in the Sino-Singapore Tianjin Eco City.
The developer yesterday reported that net profit for the quarter ended Dec 31, 2009, rose to $106.9 million from $68.5 million a year ago. Revenue rose 52 per cent to $300.5 million from $197.4 million.
'Residential sales in Singapore and overseas have recovered, encouraged by signs of economic recovery and improved market sentiments,' Keppel Land said. Revenue rose as the company saw progressive revenue recognition from the newly launched Madison Residences and The Promont in Singapore.
Higher revenue was also recognised for projects in Vietnam, India and China. Riviera Cove in Ho Chi Minh City has also recorded robust sales since its launch in November 2009, KepLand said.
The property group, however, recorded a net fair value loss of $12 million at the pre-tax level for fourth quarter 2009, mainly from completed investment properties owned by its listed office trust K-Reit Asia.
For the full year, Keppel Land's profit rose 23 per cent to $280.4 million from $227.7 million in 2008. Revenue rose 10 per cent to $923.9 million compared with $842.2 million for 2008 on the back of higher sales.
Earnings per share for the full year rose to 24.2 cents from 22.4 cents in 2008.
Keppel Land is on the lookout for land to purchase. The company last year carried out a rights issue which raised gross proceeds of $708 million. 'This ensures the group is well-positioned to capitalise on opportunities to acquire attractive assets at competitive prices in Singapore and overseas,' it said.
The company also said the commercial segment is showing signs of bottoming out.
'A flight to quality has been observed with Marina Bay Financial Centre (MBFC) and Ocean Financial Centre (OFC) chalking increased pre-commitment occupancy rates,' Keppel Land said. MBFC saw a take-up of about 213,000 sq ft in 2009. Phase One of MBFC is now 79 per cent pre-committed and the overall occupancy for the entire MBFC stands at 68 per cent.
UBS Investment Research on Jan 22 issued a fresh 'buy' call on KepLand and upgraded the stock's target price to $4.38 from $3.50.
'On account of the higher office and luxury residential price assumptions, we upgrade our RNAV (revalued net asset value) estimate for Keppel Land by 25 per cent to $4.40 a share,' said analyst Regina Lim.
Keppel Land shares gained one cent to end at $3.44 yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Keppel Land to launch 5,500 homes in Asia
Fourth quarter net profit jumps 56%; group on the prowl for more land
By UMA SHANKARI
KEPPEL Land, which saw fourth-quarter earnings jump 56 per cent as property markets across Asia recovered, said it plans to launch more than 5,500 homes across the region for sale this year.
'Keppel Land is moving into 2010 with optimism on the back of its stronger financial position, improving residential sales and office space take-up together with expectations of continued recovery of Asia and a return of capital flows from the West,' chief executive Kevin Wong said yesterday.
In Singapore, KepLand will sell more units in two upmarket projects - Marina Bay Suites and Reflections at Keppel Bay - to capitalise on the opening of the integrated resorts, which is expected to boost the high end market.
And in China, the group will launch two projects in Shanghai as well as phase one (comprising about 1,700 units) of its 35.4 ha project in the Sino-Singapore Tianjin Eco City.
The developer yesterday reported that net profit for the quarter ended Dec 31, 2009, rose to $106.9 million from $68.5 million a year ago. Revenue rose 52 per cent to $300.5 million from $197.4 million.
'Residential sales in Singapore and overseas have recovered, encouraged by signs of economic recovery and improved market sentiments,' Keppel Land said. Revenue rose as the company saw progressive revenue recognition from the newly launched Madison Residences and The Promont in Singapore.
Higher revenue was also recognised for projects in Vietnam, India and China. Riviera Cove in Ho Chi Minh City has also recorded robust sales since its launch in November 2009, KepLand said.
The property group, however, recorded a net fair value loss of $12 million at the pre-tax level for fourth quarter 2009, mainly from completed investment properties owned by its listed office trust K-Reit Asia.
For the full year, Keppel Land's profit rose 23 per cent to $280.4 million from $227.7 million in 2008. Revenue rose 10 per cent to $923.9 million compared with $842.2 million for 2008 on the back of higher sales.
Earnings per share for the full year rose to 24.2 cents from 22.4 cents in 2008.
Keppel Land is on the lookout for land to purchase. The company last year carried out a rights issue which raised gross proceeds of $708 million. 'This ensures the group is well-positioned to capitalise on opportunities to acquire attractive assets at competitive prices in Singapore and overseas,' it said.
The company also said the commercial segment is showing signs of bottoming out.
'A flight to quality has been observed with Marina Bay Financial Centre (MBFC) and Ocean Financial Centre (OFC) chalking increased pre-commitment occupancy rates,' Keppel Land said. MBFC saw a take-up of about 213,000 sq ft in 2009. Phase One of MBFC is now 79 per cent pre-committed and the overall occupancy for the entire MBFC stands at 68 per cent.
UBS Investment Research on Jan 22 issued a fresh 'buy' call on KepLand and upgraded the stock's target price to $4.38 from $3.50.
'On account of the higher office and luxury residential price assumptions, we upgrade our RNAV (revalued net asset value) estimate for Keppel Land by 25 per cent to $4.40 a share,' said analyst Regina Lim.
Keppel Land shares gained one cent to end at $3.44 yesterday.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Friday, January 29, 2010
ST Forum : HDB flats: Why did supply fail to keep up with population growth?
Jan 26, 2010
HDB flats: Why did supply fail to keep up with population growth?
WITH reference to the Housing and Development Board's (HDB) reply last Thursday ('Income ceiling helps ensure neediest get subsidised flats'), my sense is that the HDB underestimated the social ramifications of the resale policy to permanent residents (PRs), while it failed to maintain the Home Ownership Scheme for the people to balance demand of rapid population growth during the past 20 years. As a result, low- and middle-income households have suffered.
The ceiling of $3,000 and $2,000 for three- and two-room flats did not help as HDB did not build enough units to meet the market, citing low demand. This drastic reduction in the number of flats built is detrimental to the ageing population in the rental and sales market.
The policy to allow 533,000 PRs to buy resale HDB flats works against citizens. It is difficult to comprehend why HDB began to wind down the momentum to build more flats during the 1990s when the population ballooned from 3.047 million to 4.027 million by the end of 2000.
The yearly average peak of 30,900 HDB flats built during the 1980s corresponded with the population growth meeting the Home Ownership Scheme. However, during the 1990s when one more million people were added, HDB began to taper down to 25,700. What puzzles me most is that by 2008, when another 810,000 people were added to the population, HDB built only 8,260 units. Why the paradigm shift?
Take the example of a Queenstown five-room flat at $619,000. Single-income families earning $6,000 with two children cannot afford to pay 50 per cent of their income to buy such a flat. Can the $30,000 subsidy help them? Combined-income families with two children earning $8,000 may falter to commit 38 per cent for such flats. These groups are the 'neediest' for bigger flats, yet the Home Ownership Scheme eludes them.
Paul Chan
HDB flats: Why did supply fail to keep up with population growth?
WITH reference to the Housing and Development Board's (HDB) reply last Thursday ('Income ceiling helps ensure neediest get subsidised flats'), my sense is that the HDB underestimated the social ramifications of the resale policy to permanent residents (PRs), while it failed to maintain the Home Ownership Scheme for the people to balance demand of rapid population growth during the past 20 years. As a result, low- and middle-income households have suffered.
The ceiling of $3,000 and $2,000 for three- and two-room flats did not help as HDB did not build enough units to meet the market, citing low demand. This drastic reduction in the number of flats built is detrimental to the ageing population in the rental and sales market.
The policy to allow 533,000 PRs to buy resale HDB flats works against citizens. It is difficult to comprehend why HDB began to wind down the momentum to build more flats during the 1990s when the population ballooned from 3.047 million to 4.027 million by the end of 2000.
The yearly average peak of 30,900 HDB flats built during the 1980s corresponded with the population growth meeting the Home Ownership Scheme. However, during the 1990s when one more million people were added, HDB began to taper down to 25,700. What puzzles me most is that by 2008, when another 810,000 people were added to the population, HDB built only 8,260 units. Why the paradigm shift?
Take the example of a Queenstown five-room flat at $619,000. Single-income families earning $6,000 with two children cannot afford to pay 50 per cent of their income to buy such a flat. Can the $30,000 subsidy help them? Combined-income families with two children earning $8,000 may falter to commit 38 per cent for such flats. These groups are the 'neediest' for bigger flats, yet the Home Ownership Scheme eludes them.
Paul Chan
ST : KepLand sees 56% rise in Q4 profit
Jan 26, 2010
KepLand sees 56% rise in Q4 profit
Rebound in property market helped boost income; full-year profit up 23% to $280m
By Harsha Jethnani
KEPPEL Land (KepLand) yesterday reported a 56 per cent jump in fourth-quarter net profit to $106.9 million, mainly the result of the rebounding property market.
Excluding an adjustment for gains in property values, profit rose by 24.6 per cent to $76.6 million.
Sales for the three months ended Dec 31 last year rose by 52 per cent to $300.5 million.
Sales at the Marina Bay Suites, Reflections and Caribbean at Keppel Bay made up the bulk of the property income gains from the Singapore market.
A total of 89 units were sold at the Marina Bay Suites while 32 units and 12 units were sold at the Caribbean and Reflections, respectively. Sales from The Botanica in Chengdu, China, also helped to boost the bottom line.
On a full-year basis, KepLand posted a 23 per cent rise in net profit to $280.4 million after adjusting for net fair value gains. Excluding the gains, profit increased by 17.3 per cent to $250.2 million.
Overall, property trading income rose by 22.8 per cent to $196.4 million - an increase largely responsible for the upswing in last year's profit.
'Asian countries were relatively less affected. With the rebound in property markets.... we sold a total of about 3,500 homes, mainly from our townships in China. In Singapore, almost 400 units were sold,' said Mr Kevin Wong, KepLand's group chief executive officer.
It sold 384 units last year, mostly from its Marina Bay Suites, Caribbean, Reflections and Madison Residences projects, at average prices of $2,200-2,500, $1,900, $1,950 and $1,700 per sq ft, respectively.
Full-year property investment income fell by 7 per cent, largely due to the impact of a write-back of costs from KepLand's restructured ownership at One Raffles Quay in 2008.
The total net fair value gain for the year was $30.2 million, including $19.1 million in value gains from the upcoming Marina Bay Financial Centre (MBFC) Towers One and Two, which were partially offset from losses in fair values of K-Reit Asia's properties including Prudential Tower, One Raffles Quay, Keppel and GE Towers and the Bugis Junction Towers.
K-Reit Asia is a KepLand private property fund management vehicle, focusing on commercial properties.
The rest of the $11.1 million in fair value gains resulted from KepLand's additional stake in K-Reit Asia, which had resulted from a rights issue in October last year.
KepLand plans to launch 5,500 homes around Asia for sale this year - mainly in China and Vietnam.
At home, remaining units in Marina Bay Suites and an official launch of Reflections will be timed to coincide with the openings of the integrated resorts. Any possible price increases remain unconfirmed.
Earnings per share rose to 24.2 cents from 22.4 cents for the full year 2009.
Net asset value per share dropped to $2.36 from $3.39 as a result of an increase in shareholders' units to 1.4 billion after a rights issue last June.
KepLand's shares rose one cent to $3.44 yesterday prior to the release of the group's results.
The company's directors proposed a final dividend of eight cents a share, unchanged from the previous year.
KepLand sees 56% rise in Q4 profit
Rebound in property market helped boost income; full-year profit up 23% to $280m
By Harsha Jethnani
KEPPEL Land (KepLand) yesterday reported a 56 per cent jump in fourth-quarter net profit to $106.9 million, mainly the result of the rebounding property market.
Excluding an adjustment for gains in property values, profit rose by 24.6 per cent to $76.6 million.
Sales for the three months ended Dec 31 last year rose by 52 per cent to $300.5 million.
Sales at the Marina Bay Suites, Reflections and Caribbean at Keppel Bay made up the bulk of the property income gains from the Singapore market.
A total of 89 units were sold at the Marina Bay Suites while 32 units and 12 units were sold at the Caribbean and Reflections, respectively. Sales from The Botanica in Chengdu, China, also helped to boost the bottom line.
On a full-year basis, KepLand posted a 23 per cent rise in net profit to $280.4 million after adjusting for net fair value gains. Excluding the gains, profit increased by 17.3 per cent to $250.2 million.
Overall, property trading income rose by 22.8 per cent to $196.4 million - an increase largely responsible for the upswing in last year's profit.
'Asian countries were relatively less affected. With the rebound in property markets.... we sold a total of about 3,500 homes, mainly from our townships in China. In Singapore, almost 400 units were sold,' said Mr Kevin Wong, KepLand's group chief executive officer.
It sold 384 units last year, mostly from its Marina Bay Suites, Caribbean, Reflections and Madison Residences projects, at average prices of $2,200-2,500, $1,900, $1,950 and $1,700 per sq ft, respectively.
Full-year property investment income fell by 7 per cent, largely due to the impact of a write-back of costs from KepLand's restructured ownership at One Raffles Quay in 2008.
The total net fair value gain for the year was $30.2 million, including $19.1 million in value gains from the upcoming Marina Bay Financial Centre (MBFC) Towers One and Two, which were partially offset from losses in fair values of K-Reit Asia's properties including Prudential Tower, One Raffles Quay, Keppel and GE Towers and the Bugis Junction Towers.
K-Reit Asia is a KepLand private property fund management vehicle, focusing on commercial properties.
The rest of the $11.1 million in fair value gains resulted from KepLand's additional stake in K-Reit Asia, which had resulted from a rights issue in October last year.
KepLand plans to launch 5,500 homes around Asia for sale this year - mainly in China and Vietnam.
At home, remaining units in Marina Bay Suites and an official launch of Reflections will be timed to coincide with the openings of the integrated resorts. Any possible price increases remain unconfirmed.
Earnings per share rose to 24.2 cents from 22.4 cents for the full year 2009.
Net asset value per share dropped to $2.36 from $3.39 as a result of an increase in shareholders' units to 1.4 billion after a rights issue last June.
KepLand's shares rose one cent to $3.44 yesterday prior to the release of the group's results.
The company's directors proposed a final dividend of eight cents a share, unchanged from the previous year.
ST : JTC to expand Biopolis, build new cluster for med-tech
Jan 26, 2010
JTC to expand Biopolis, build new cluster for med-tech
Up to $180m boost will provide more space for growing number of firms
By Jessica Cheam
Singapore's premier biomedical research hub Biopolis will see the addition of a further 40,000 sq m of space for research and clinical trials. Companies setting up shop can look forward to new facilities such as fitted out laboratories and shared facilities such as air-conditioning. -- ST FILE PHOTO
SINGAPORE'S thriving biomedical sciences sector is set to get a boost of up to $180million this year for the expansion of buildings and other related facilities.
This will cater to the growing number of companies that need more space for their cutting-edge work in creating new drugs and medical equipment.
The nation's premier biomedical research hub, Biopolis, near Buona Vista, will be expanded at an estimated cost of about $80million to $100million, providing 40,000sqm of new space.
The plan was announced yesterday by industrial developer and landlord JTC Corporation, which said separately that it will launch a medical technology cluster in Jurong.
This cluster will bring major industry players together in a new facility that will cost $60million to $80million to build initially. It will enable firms there to collaborate and cut costs through cooperation.
Mr Heah Soon Poh, JTC's director, biomedical and chemicals cluster, said yesterday that the Biopolis expansion would include laboratory design improvements to support the growth of clinical trials.
This new phase - the fourth for Biopolis - follows on the heels of Biopolis3, which is due for completion by year-end.
It brings the total cost of Biopolis to about $700million.
Companies setting up shop in the newly expanded facility can look forward to new facilities such as fitted out laboratories and shared facilities such as air-conditioning.
'This helps to lower the upfront costs for small and medium enterprises. We are moving up in the value creation for companies,' said Mr Heah.
The expansion is set to be completed by 2012 to 2013.
Biomedical sciences, though a volatile performer during the recent economic recession, is an increasingly important pillar of the local economy, said research house CIMB-GK regional economist Song Seng Wun.
'The performance of this sector was quite good through the recession. It had a weak start, then a strong quarter, and even though it had a soft end to the year, we are still seeing companies interested to come into Singapore,' he said, referring to last year.
The sector contributed $19billion, or 4.3per cent, of Singapore's economic output in 2008, the latest available figures show, and provided 16,000 jobs.
Mr Song added: 'It could become a bigger, more productive industry.'
Mr Heah said that looking ahead, the sector is expected to continue expanding, and JTC will provide the real estate to support this growth.
Within the sector, the medical technology sector (med-tech) is expected to drive the rapid growth. It manufactures equipment used in the industry, such as syringes and medical test-kits.
Singapore's manufacturing output of med-tech products is expected to increase from $2.9billion in 2008 to $5billion by 2015, said Mr Heah.
Med-tech employs the majority - two-thirds - of those in the biomedical science sector, as it is more labour intensive than pharmaceutical production, for instance.
This is why JTC is driving the new med-tech cluster, at Jalan Tukang in Jurong, at which all the main players in the industry will be located - 'in the same space, creating synergies and reducing costs', said Mr Heah.
This means manufacturers, suppliers, logistics firms, sterilisation firms and support services will be located fairly close to each other, and will therefore be able to complement one another's efforts.
The first phase of this cluster, with a built up area of 40,000sqm, is expected to be built by the end of 2013; a second phase of 40,000sqm will be built later.
JTC is also in the midst of discussions for a new biologics facility, which will take up less land because it will be built upwards, said Mr Heah.
Biologics refers to medicinal products produced through biological methods rather than chemical ones.
Irish firm PM Group, which specialises in servicing the pharmaceutical and food industries, is advising JTC on the project.
JTC says it is currently in talks with potential companies to locate to both the new med-tech and biologics facilities.
It plans to launch tenders for both the Biopolis and med-tech cluster expansions for private developers to bid sometime this year.
jcheam@sph.com.sg
JTC to expand Biopolis, build new cluster for med-tech
Up to $180m boost will provide more space for growing number of firms
By Jessica Cheam
Singapore's premier biomedical research hub Biopolis will see the addition of a further 40,000 sq m of space for research and clinical trials. Companies setting up shop can look forward to new facilities such as fitted out laboratories and shared facilities such as air-conditioning. -- ST FILE PHOTO
SINGAPORE'S thriving biomedical sciences sector is set to get a boost of up to $180million this year for the expansion of buildings and other related facilities.
This will cater to the growing number of companies that need more space for their cutting-edge work in creating new drugs and medical equipment.
The nation's premier biomedical research hub, Biopolis, near Buona Vista, will be expanded at an estimated cost of about $80million to $100million, providing 40,000sqm of new space.
The plan was announced yesterday by industrial developer and landlord JTC Corporation, which said separately that it will launch a medical technology cluster in Jurong.
This cluster will bring major industry players together in a new facility that will cost $60million to $80million to build initially. It will enable firms there to collaborate and cut costs through cooperation.
Mr Heah Soon Poh, JTC's director, biomedical and chemicals cluster, said yesterday that the Biopolis expansion would include laboratory design improvements to support the growth of clinical trials.
This new phase - the fourth for Biopolis - follows on the heels of Biopolis3, which is due for completion by year-end.
It brings the total cost of Biopolis to about $700million.
Companies setting up shop in the newly expanded facility can look forward to new facilities such as fitted out laboratories and shared facilities such as air-conditioning.
'This helps to lower the upfront costs for small and medium enterprises. We are moving up in the value creation for companies,' said Mr Heah.
The expansion is set to be completed by 2012 to 2013.
Biomedical sciences, though a volatile performer during the recent economic recession, is an increasingly important pillar of the local economy, said research house CIMB-GK regional economist Song Seng Wun.
'The performance of this sector was quite good through the recession. It had a weak start, then a strong quarter, and even though it had a soft end to the year, we are still seeing companies interested to come into Singapore,' he said, referring to last year.
The sector contributed $19billion, or 4.3per cent, of Singapore's economic output in 2008, the latest available figures show, and provided 16,000 jobs.
Mr Song added: 'It could become a bigger, more productive industry.'
Mr Heah said that looking ahead, the sector is expected to continue expanding, and JTC will provide the real estate to support this growth.
Within the sector, the medical technology sector (med-tech) is expected to drive the rapid growth. It manufactures equipment used in the industry, such as syringes and medical test-kits.
Singapore's manufacturing output of med-tech products is expected to increase from $2.9billion in 2008 to $5billion by 2015, said Mr Heah.
Med-tech employs the majority - two-thirds - of those in the biomedical science sector, as it is more labour intensive than pharmaceutical production, for instance.
This is why JTC is driving the new med-tech cluster, at Jalan Tukang in Jurong, at which all the main players in the industry will be located - 'in the same space, creating synergies and reducing costs', said Mr Heah.
This means manufacturers, suppliers, logistics firms, sterilisation firms and support services will be located fairly close to each other, and will therefore be able to complement one another's efforts.
The first phase of this cluster, with a built up area of 40,000sqm, is expected to be built by the end of 2013; a second phase of 40,000sqm will be built later.
JTC is also in the midst of discussions for a new biologics facility, which will take up less land because it will be built upwards, said Mr Heah.
Biologics refers to medicinal products produced through biological methods rather than chemical ones.
Irish firm PM Group, which specialises in servicing the pharmaceutical and food industries, is advising JTC on the project.
JTC says it is currently in talks with potential companies to locate to both the new med-tech and biologics facilities.
It plans to launch tenders for both the Biopolis and med-tech cluster expansions for private developers to bid sometime this year.
jcheam@sph.com.sg
BT : Signs of a mild property fever as private home sales gather pace
Business Times - 26 Jan 2010
Signs of a mild property fever as private home sales gather pace
Developers have sold over 900 units this month as bullish sentiment returns
By KALPANA RASHIWALA
(SINGAPORE) Developers have sold more than 900 private homes so far this month - based on BT's poll of developers and property agents - and with another week to go, the tally is easily expected to cross 1,000 units by month's end.
Besides Allgreen Properties' Holland Residences, which will be previewed this week, Wing Tai is said to be at an advanced stage of preparation for an imminent preview for L'Viv at Newton Road. The average price is touted at about $1,900-$2,000 per square foot (psf) - significantly higher than the $1,700 psf average price at which Ho Bee is selling its Trilight condo nearby.
Wing Tai is eyeing a higher per square foot price by offering smallish units (thus keeping the absolute lump sum price per unit 'affordable' to potential buyers). The developer is said to be packaging its project with Deferred Payment Scheme as it had clinched approval for it before the scheme was scrapped in 2007.
L'Viv comprises a total of 147 units - 72 units have one bedroom and a study and these come in two sizes, both 600-sq ft plus; another 72 units have two bedrooms and a study (all about 1,000 sq ft); and there are three penthouses (all three bedders).
Trilight does not have any one-bedders. It has two, three and four bedders as well as penthouses. Two bedders range from 1,100 to 1,200 sq ft.
Fortune Development is also slated to begin previewing this week RV Edge in the River Valley/Shanghai Road vicinity. The 108-unit freehold project, being marketed by Huttons, comprises mostly smallish apartments ranging from one-bedders to two-bedroom with study units. The smallest unit is about 400 sq ft. Prices are expected to start from $600,000-plus per apartment.
City Developments Ltd (CDL) said yesterday evening that it has sold about 85 per cent or about 150 of the the total 177 units at its Cube 8 condo at Thomson Road, which it began previewing last week.
Singaporeans bought 75 per cent of the units sold. The other 25 per cent were picked up by permanent residents (PRs) and other foreigners - mainly from Malaysia, Indonesia, Hong Kong, Korea, India, China and Europe.
The District 11 freehold project was initially priced at $1,250 psf on average but prices were upped 2-3 per cent for subsequent releases.
CDL group general manager Chia Ngiang Hong said in a statement that the buyers were an 'equal mix of owner-occupiers and investors' and that this pointed to the development's appeal to both home owners and investors.
Some market watchers suggest, however, that the project has probably also drawn a fair number of specuvestors. Slightly over half of the total 177 units comprised one and two bedders and these were the first to go, mirroring the pattern for other projects that were launched in Districts 9, 10 and 11 last year.
In addition to the buying buzz created this month from the release of new projects, some developers have been pleasantly surprised with a steady stream of activity even for existing projects that have been on the market for at least a few months. For instance, Ho Bee Investment has sold about 60 units at its Parvis condo at Holland Hill and 10 units at Trilight since the start of the year.
CDL is also understood to have sold more than 50 units at its Livia condo in Pasir Ris this month and the 724-unit project is now left with about 10 units.
'Sentiment has picked in the mid and high-end markets because of the improvement in the economy; the imminent opening of the two integrated resorts (IRs) may also have given a psychological boost to foreign buying interest, which seems to be returning,' says Ho Bee executive director Ong Chong Hua.
Agreeing, a fellow developer said: 'We're seeing a bigger variety of buyers from the region this round - including markets like Myanmar and Laos.'
UOL Group has sold this month 25 units at Double Bay Residences in Simei and 18 units at Meadows @ Peirce along Upper Thomson Road. The group plans to launch two projects in the first half of this year - a 99-year-leasehold condo with about 600-plus units at Dakota Crescent and a project with some 170 units on the Rainbow Gardens site in the Toh Tuck area. The latter will be a joint development with LaSalle Asia Opportunity II fund.
Developers' home sales slipped below the 1,000-unit per month mark in Q4 last year as they wound down their launch activities towards year-end. Some potential buyers had also grown cautious following the government's measures in September to cool the property fever.
However, fear of missing the boat appears to be re-igniting with strong signs of another round of price hikes this year.
'For the economy, the worst is over and much of the physical infrastructure investment like the IRs is close to completion,' says Knight Frank chairman Tan Tiong Cheng.
Asked if the authorities are likely to come up with fresh measures to cool the market if another wave of buying frenzy builds up, Mr Tan said: 'Frankly, it's very hard to deter people from buying, if you look at how strong the HDB resale market is. There's very strong bottom-up support.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Signs of a mild property fever as private home sales gather pace
Developers have sold over 900 units this month as bullish sentiment returns
By KALPANA RASHIWALA
(SINGAPORE) Developers have sold more than 900 private homes so far this month - based on BT's poll of developers and property agents - and with another week to go, the tally is easily expected to cross 1,000 units by month's end.
Besides Allgreen Properties' Holland Residences, which will be previewed this week, Wing Tai is said to be at an advanced stage of preparation for an imminent preview for L'Viv at Newton Road. The average price is touted at about $1,900-$2,000 per square foot (psf) - significantly higher than the $1,700 psf average price at which Ho Bee is selling its Trilight condo nearby.
Wing Tai is eyeing a higher per square foot price by offering smallish units (thus keeping the absolute lump sum price per unit 'affordable' to potential buyers). The developer is said to be packaging its project with Deferred Payment Scheme as it had clinched approval for it before the scheme was scrapped in 2007.
L'Viv comprises a total of 147 units - 72 units have one bedroom and a study and these come in two sizes, both 600-sq ft plus; another 72 units have two bedrooms and a study (all about 1,000 sq ft); and there are three penthouses (all three bedders).
Trilight does not have any one-bedders. It has two, three and four bedders as well as penthouses. Two bedders range from 1,100 to 1,200 sq ft.
Fortune Development is also slated to begin previewing this week RV Edge in the River Valley/Shanghai Road vicinity. The 108-unit freehold project, being marketed by Huttons, comprises mostly smallish apartments ranging from one-bedders to two-bedroom with study units. The smallest unit is about 400 sq ft. Prices are expected to start from $600,000-plus per apartment.
City Developments Ltd (CDL) said yesterday evening that it has sold about 85 per cent or about 150 of the the total 177 units at its Cube 8 condo at Thomson Road, which it began previewing last week.
Singaporeans bought 75 per cent of the units sold. The other 25 per cent were picked up by permanent residents (PRs) and other foreigners - mainly from Malaysia, Indonesia, Hong Kong, Korea, India, China and Europe.
The District 11 freehold project was initially priced at $1,250 psf on average but prices were upped 2-3 per cent for subsequent releases.
CDL group general manager Chia Ngiang Hong said in a statement that the buyers were an 'equal mix of owner-occupiers and investors' and that this pointed to the development's appeal to both home owners and investors.
Some market watchers suggest, however, that the project has probably also drawn a fair number of specuvestors. Slightly over half of the total 177 units comprised one and two bedders and these were the first to go, mirroring the pattern for other projects that were launched in Districts 9, 10 and 11 last year.
In addition to the buying buzz created this month from the release of new projects, some developers have been pleasantly surprised with a steady stream of activity even for existing projects that have been on the market for at least a few months. For instance, Ho Bee Investment has sold about 60 units at its Parvis condo at Holland Hill and 10 units at Trilight since the start of the year.
CDL is also understood to have sold more than 50 units at its Livia condo in Pasir Ris this month and the 724-unit project is now left with about 10 units.
'Sentiment has picked in the mid and high-end markets because of the improvement in the economy; the imminent opening of the two integrated resorts (IRs) may also have given a psychological boost to foreign buying interest, which seems to be returning,' says Ho Bee executive director Ong Chong Hua.
Agreeing, a fellow developer said: 'We're seeing a bigger variety of buyers from the region this round - including markets like Myanmar and Laos.'
UOL Group has sold this month 25 units at Double Bay Residences in Simei and 18 units at Meadows @ Peirce along Upper Thomson Road. The group plans to launch two projects in the first half of this year - a 99-year-leasehold condo with about 600-plus units at Dakota Crescent and a project with some 170 units on the Rainbow Gardens site in the Toh Tuck area. The latter will be a joint development with LaSalle Asia Opportunity II fund.
Developers' home sales slipped below the 1,000-unit per month mark in Q4 last year as they wound down their launch activities towards year-end. Some potential buyers had also grown cautious following the government's measures in September to cool the property fever.
However, fear of missing the boat appears to be re-igniting with strong signs of another round of price hikes this year.
'For the economy, the worst is over and much of the physical infrastructure investment like the IRs is close to completion,' says Knight Frank chairman Tan Tiong Cheng.
Asked if the authorities are likely to come up with fresh measures to cool the market if another wave of buying frenzy builds up, Mr Tan said: 'Frankly, it's very hard to deter people from buying, if you look at how strong the HDB resale market is. There's very strong bottom-up support.'
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : JTC to launch Biopolis Phase 4
Business Times - 26 Jan 2010
JTC to launch Biopolis Phase 4
It'll have more facilities for pre-clinical trials; medical tech cluster also in the works at Tukang
By EMILYN YAP
THE government is ramping up development of the biomedical sciences sector, with plans to release another site at Biopolis for tender and set up a new medical technology cluster at Tukang.
Phase Four at Biopolis could cost some $80-$100 million to build and will have more facilities for pre-clinical trials, JTC Corporation said yesterday.
The expansion will add another 40,000 square metres of gross floor area (GFA) to the biomedical research and development (R&D) centre in Buona Vista. JTC will award the project to a private developer this year, and the site could be ready by end-2012 or early-2013.
According to JTC, there has been an increase in demand for R&D spaces. Gross expenditure on R&D was $7.18 billion in 2008, or 2.77 per cent of GDP. Singapore's aim is to have this reach 3 per cent of GDP, JTC said.
Biopolis currently comprises three phases, which together cost close to $700 million to develop. Phases One and Two have more facilities for basic research. Phase Three is under construction and should be completed by the end of this year.
Phase Four will house more facilities for pre-clinical trials. There will also be laboratories built around a 'shelf-plus' concept, fitted with basic equipment and furnishings to help reduce set-up costs for smaller outfits.
Over in the Jurong area, JTC is drawing up plans for a medical technology cluster that will house sterilisation facilities, warehouses, laboratories, equipment manufacturers, suppliers and other supporting firms under one roof.
The cluster would be located next to Tukang Innovation Park and could be built in two phases, each measuring 40,000 square metres. The first phase could cost $60-80 million to develop.
According to JTC, the medical technology industry is headed for more growth. Singapore's manufacturing output from the sector is expected to increase from $2.9 billion in 2008 to $5 billion by 2015.
Going by data from the Economic Development Board yesterday, the biomedical manufacturing sector (which includes medical technology and pharmaceutical activities) attracted $1.1 billion of fixed asset investment commitments in 2009.
JTC believes that the cluster environment would foster greater collaboration within the medical technology industry and lead to several benefits, such as faster product developments.
The agency is in talks with companies in the industry to obtain their feedback on the concept. If it takes off, the first phase of the cluster could be ready towards the middle or end of 2013.
JTC is also working on a concept for high-rise biologics plants. These plants would have plot ratios which are almost double those of traditional low-rise plants and would take up less land.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
JTC to launch Biopolis Phase 4
It'll have more facilities for pre-clinical trials; medical tech cluster also in the works at Tukang
By EMILYN YAP
THE government is ramping up development of the biomedical sciences sector, with plans to release another site at Biopolis for tender and set up a new medical technology cluster at Tukang.
Phase Four at Biopolis could cost some $80-$100 million to build and will have more facilities for pre-clinical trials, JTC Corporation said yesterday.
The expansion will add another 40,000 square metres of gross floor area (GFA) to the biomedical research and development (R&D) centre in Buona Vista. JTC will award the project to a private developer this year, and the site could be ready by end-2012 or early-2013.
According to JTC, there has been an increase in demand for R&D spaces. Gross expenditure on R&D was $7.18 billion in 2008, or 2.77 per cent of GDP. Singapore's aim is to have this reach 3 per cent of GDP, JTC said.
Biopolis currently comprises three phases, which together cost close to $700 million to develop. Phases One and Two have more facilities for basic research. Phase Three is under construction and should be completed by the end of this year.
Phase Four will house more facilities for pre-clinical trials. There will also be laboratories built around a 'shelf-plus' concept, fitted with basic equipment and furnishings to help reduce set-up costs for smaller outfits.
Over in the Jurong area, JTC is drawing up plans for a medical technology cluster that will house sterilisation facilities, warehouses, laboratories, equipment manufacturers, suppliers and other supporting firms under one roof.
The cluster would be located next to Tukang Innovation Park and could be built in two phases, each measuring 40,000 square metres. The first phase could cost $60-80 million to develop.
According to JTC, the medical technology industry is headed for more growth. Singapore's manufacturing output from the sector is expected to increase from $2.9 billion in 2008 to $5 billion by 2015.
Going by data from the Economic Development Board yesterday, the biomedical manufacturing sector (which includes medical technology and pharmaceutical activities) attracted $1.1 billion of fixed asset investment commitments in 2009.
JTC believes that the cluster environment would foster greater collaboration within the medical technology industry and lead to several benefits, such as faster product developments.
The agency is in talks with companies in the industry to obtain their feedback on the concept. If it takes off, the first phase of the cluster could be ready towards the middle or end of 2013.
JTC is also working on a concept for high-rise biologics plants. These plants would have plot ratios which are almost double those of traditional low-rise plants and would take up less land.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
BT : Nomura taking up 102,000 sq ft in MBFC
Business Times - 26 Jan 2010
Nomura taking up 102,000 sq ft in MBFC
NOMURA Singapore has joined other multinational corporations at Marina Bay Financial Centre (MBFC), Raffles Quay Asset Management (RQAM) announced yesterday.
Nomura has signed up 102,000 square feet of space in MBFC's Tower Two, and will occupy levels 34 to 37 of the 50-storey commercial tower.
The leading financial securities company in Japan, Nomura has signed a 12-year lease and will take occupancy of the space in 2011.
The latest tenant brings the total pre-commitment of MBFC Tower Two to about 66 per cent, with overall pre-leasing figures for MBFC Towers One and Two at approximately 79 per cent.
Said RQAM chief executive Wilson Kwong: 'With the recent levels of growth seen in the economy, more multinational corporations will be on the lookout for quality commercial space in Singapore's Central Business District, and MBFC will play an integral part in attracting these firms.
'MBFC is also in discussions with other companies and continues to receive strong leasing interests for commercial space in Towers Two and Three. We believe that its tenants will enjoy both state-of-the-art office space as well as the unique 'work.live.play' environment provided by the development.'
When fully completed in 2012, MBFC will be Singapore's first mixed-use development that successfully integrates residential, business, retail and entertainment facilities.
Nomura taking up 102,000 sq ft in MBFC
NOMURA Singapore has joined other multinational corporations at Marina Bay Financial Centre (MBFC), Raffles Quay Asset Management (RQAM) announced yesterday.
Nomura has signed up 102,000 square feet of space in MBFC's Tower Two, and will occupy levels 34 to 37 of the 50-storey commercial tower.
The leading financial securities company in Japan, Nomura has signed a 12-year lease and will take occupancy of the space in 2011.
The latest tenant brings the total pre-commitment of MBFC Tower Two to about 66 per cent, with overall pre-leasing figures for MBFC Towers One and Two at approximately 79 per cent.
Said RQAM chief executive Wilson Kwong: 'With the recent levels of growth seen in the economy, more multinational corporations will be on the lookout for quality commercial space in Singapore's Central Business District, and MBFC will play an integral part in attracting these firms.
'MBFC is also in discussions with other companies and continues to receive strong leasing interests for commercial space in Towers Two and Three. We believe that its tenants will enjoy both state-of-the-art office space as well as the unique 'work.live.play' environment provided by the development.'
When fully completed in 2012, MBFC will be Singapore's first mixed-use development that successfully integrates residential, business, retail and entertainment facilities.
BT : Horizon Towers saga roars back to life with new lawsuit
Business Times - 26 Jan 2010
Horizon Towers saga roars back to life with new lawsuit
Suit filed against some members of original sales panel
By MICHELLE QUAH
(SINGAPORE) A fresh lawsuit has just been filed over the failed en bloc sale of Horizon Towers - and a new chapter in the long-running saga is about to begin.
It's a suit that's set to be a closely watched one in Singapore, seen as a litmus test for the possible legal action that can be brought to bear against those involved in this, as well as all other, en bloc sales.
A group of Horizon Towers' minority owners - those who had originally opposed the sale of the Leonie Hill development - are now suing some members of the original sales committee for their handling of the en bloc sale.
According to documents filed with the High Court, these minority owners are looking to reclaim close to $1 million in legal and administrative costs which they say they've incurred during the lengthy fight to keep their homes.
The sale of Horizon Towers - first tabled for $500 million to Hotel Properties Ltd (HPL) in January 2007 - has been one of the most dramatic and long-drawn- out en bloc battles in Singapore's history. The whole affair spanned more than two years and went back and forth between the Strata Titles Board (STB) and the High Court twice before finally being decided in the Court of Appeal.
The Court of Appeal ruled in April last year that the deal could not go through because the development's sales committee had failed to fulfil its duty on several counts.
And now, three sets of minority owners - represented by Kannan Ramesh of Tan Kok Quan Partnership - have cited that landmark judgment, as a basis on which to seek reimbursement for the hundreds of thousands they have each spent in this battle.
They have served writs on former sales committee chairman Arjun Samtani and member Tan Kah Gee, alleging that they were 'key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process'.
The minorities, in their claim, allege that Mr Samtani and Mr Tan had 'pushed for a quick sale of the property for their personal benefit', because both had bought additional units in Horizon Towers, at the start of the collective sale process, and were keen to profit from that.
Their statement of claim frequently cites the Court of Appeal judgment which had accepted, as facts of the case, that:
· Mr Samtani and Mr Tan had bought additional units in the development;
· The sales committee had received an alternative higher offer of $510 million from Vineyard Holdings, one day before HPL verbally indicated it was willing to purchase the development for $500 million; and
· The sales committee agreed to go ahead and sell Horizon Towers to HPL, in spite of a suggestion from one committee member that it seek the approval of the other consenting owners because property prices had shot up, because it was concerned that the deal would fall through if the other owners were consulted.
Justice Rajah, in his judgment, had also ruled that HPL and the estate's majority owners should share the legal costs for the second High Court hearing, as well as the Court of Appeal hearing - and that the majority owners should bear the costs for the second STB. He also allowed two minority objectors who did not participate in the final appeal to be given 80 per cent of the costs incurred in the second STB and High Court hearings.
The minority owners are now seeking compensation for the sums not covered by Justice Rajah's judgment. The three sets of owners are seeking between $117,000 to $370,000 in costs - making for a total claim of more than $800,000.
In his defence, filed with the High Court, Mr Samtani states repeatedly that he was not alone in driving the sale process. He said 'each and every member of the SC (sales committee) played an equally important role' and that he 'did not have any special powers' that could influence the committee's decisions.
Mr Samtani also claimed that the committee 'followed up on all expressions of offer' for Horizon Towers and that it received no offer better than HPL's at the relevant time. He said that, on the advice of the committee's lawyers, Drew & Napier, the committee proceeded with the HPL offer.
As for the additional unit he purchased, Mr Samtani said that it 'was not for investment, instead it was for use by his son'. He claimed he had disclosed the purchase of an additional unit to Drew, and was not advised by Drew that he had to announce it to the other consenting owners.
Mr Tan, who is represented by TSMP Law Corporation, has requested an extension of time to file his defence. Mr Samtani is represented by N Sreenivasan from Straits Law Practice.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
Horizon Towers saga roars back to life with new lawsuit
Suit filed against some members of original sales panel
By MICHELLE QUAH
(SINGAPORE) A fresh lawsuit has just been filed over the failed en bloc sale of Horizon Towers - and a new chapter in the long-running saga is about to begin.
It's a suit that's set to be a closely watched one in Singapore, seen as a litmus test for the possible legal action that can be brought to bear against those involved in this, as well as all other, en bloc sales.
A group of Horizon Towers' minority owners - those who had originally opposed the sale of the Leonie Hill development - are now suing some members of the original sales committee for their handling of the en bloc sale.
According to documents filed with the High Court, these minority owners are looking to reclaim close to $1 million in legal and administrative costs which they say they've incurred during the lengthy fight to keep their homes.
The sale of Horizon Towers - first tabled for $500 million to Hotel Properties Ltd (HPL) in January 2007 - has been one of the most dramatic and long-drawn- out en bloc battles in Singapore's history. The whole affair spanned more than two years and went back and forth between the Strata Titles Board (STB) and the High Court twice before finally being decided in the Court of Appeal.
The Court of Appeal ruled in April last year that the deal could not go through because the development's sales committee had failed to fulfil its duty on several counts.
And now, three sets of minority owners - represented by Kannan Ramesh of Tan Kok Quan Partnership - have cited that landmark judgment, as a basis on which to seek reimbursement for the hundreds of thousands they have each spent in this battle.
They have served writs on former sales committee chairman Arjun Samtani and member Tan Kah Gee, alleging that they were 'key players in the process leading up to the commencement, facilitation, management and finalisation of the collective sale process'.
The minorities, in their claim, allege that Mr Samtani and Mr Tan had 'pushed for a quick sale of the property for their personal benefit', because both had bought additional units in Horizon Towers, at the start of the collective sale process, and were keen to profit from that.
Their statement of claim frequently cites the Court of Appeal judgment which had accepted, as facts of the case, that:
· Mr Samtani and Mr Tan had bought additional units in the development;
· The sales committee had received an alternative higher offer of $510 million from Vineyard Holdings, one day before HPL verbally indicated it was willing to purchase the development for $500 million; and
· The sales committee agreed to go ahead and sell Horizon Towers to HPL, in spite of a suggestion from one committee member that it seek the approval of the other consenting owners because property prices had shot up, because it was concerned that the deal would fall through if the other owners were consulted.
Justice Rajah, in his judgment, had also ruled that HPL and the estate's majority owners should share the legal costs for the second High Court hearing, as well as the Court of Appeal hearing - and that the majority owners should bear the costs for the second STB. He also allowed two minority objectors who did not participate in the final appeal to be given 80 per cent of the costs incurred in the second STB and High Court hearings.
The minority owners are now seeking compensation for the sums not covered by Justice Rajah's judgment. The three sets of owners are seeking between $117,000 to $370,000 in costs - making for a total claim of more than $800,000.
In his defence, filed with the High Court, Mr Samtani states repeatedly that he was not alone in driving the sale process. He said 'each and every member of the SC (sales committee) played an equally important role' and that he 'did not have any special powers' that could influence the committee's decisions.
Mr Samtani also claimed that the committee 'followed up on all expressions of offer' for Horizon Towers and that it received no offer better than HPL's at the relevant time. He said that, on the advice of the committee's lawyers, Drew & Napier, the committee proceeded with the HPL offer.
As for the additional unit he purchased, Mr Samtani said that it 'was not for investment, instead it was for use by his son'. He claimed he had disclosed the purchase of an additional unit to Drew, and was not advised by Drew that he had to announce it to the other consenting owners.
Mr Tan, who is represented by TSMP Law Corporation, has requested an extension of time to file his defence. Mr Samtani is represented by N Sreenivasan from Straits Law Practice.
Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.
CNA : 77% who used housing agents saw "bad service" of some sort: survey
77% who used housing agents saw "bad service" of some sort: survey
By Mok Fei Fei, 938LIVE | Posted: 25 January 2010 1550 hrs
SINGAPORE: A survey has found that almost eight in 10 people who used housing agents here encountered "bad service" of some sort.
The survey by Ngee Ann Polytechnic found that 77 per cent of respondents said they met with bad service from their agents.
Some of the respondents' top grouses were that their agents failed to negotiate a good price, that they gave the wrong advice and that they were late for appointments.
Other less common bad service complaints include aggressive property agents, negligent agents and agents who were dishonest or unfamiliar with the transaction procedures.
Generally, however, respondents were content about their agents' services, with 65 per cent being either satisfied or very satisfied.
At the same time, 73 per cent of those surveyed felt that accreditation of the profession is necessary.
In addition, 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.
1,041 people took part in the survey. - 938LIVE/vm
By Mok Fei Fei, 938LIVE | Posted: 25 January 2010 1550 hrs
SINGAPORE: A survey has found that almost eight in 10 people who used housing agents here encountered "bad service" of some sort.
The survey by Ngee Ann Polytechnic found that 77 per cent of respondents said they met with bad service from their agents.
Some of the respondents' top grouses were that their agents failed to negotiate a good price, that they gave the wrong advice and that they were late for appointments.
Other less common bad service complaints include aggressive property agents, negligent agents and agents who were dishonest or unfamiliar with the transaction procedures.
Generally, however, respondents were content about their agents' services, with 65 per cent being either satisfied or very satisfied.
At the same time, 73 per cent of those surveyed felt that accreditation of the profession is necessary.
In addition, 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.
1,041 people took part in the survey. - 938LIVE/vm
ST Forum : EN BLOC PANELS
Jan 25, 2010
EN BLOC PANELS
Save owners from sword of Damocles
MY ESTATE'S condominium en bloc sales committee, formed in November 2007, has been in hibernation because of unfavourable market conditions.
The committee has not found a single signature for a collective sales pact. Twenty-six months on, the committee is still alive because the law allows it to be.
Did lawmakers envisage that the sword of Damocles would hang over home owners' heads for years? Are stayers like me not entitled to live in peace, with some clarity on whether our homes will go en bloc or not?
If a condominium's management council can exist with the subsidiary proprietors' blessing only for one year, surely a collective sales committee should be limited to a similar lifespan.
In the absence of a time cap, the committee should be legally mandated to formally begin collective sales procedures within 12 months of formation, or close. A tighter, more practical schedule is needed for collective sales committees that will not fade away voluntarily.
Susan Prior (Ms)
EN BLOC PANELS
Save owners from sword of Damocles
MY ESTATE'S condominium en bloc sales committee, formed in November 2007, has been in hibernation because of unfavourable market conditions.
The committee has not found a single signature for a collective sales pact. Twenty-six months on, the committee is still alive because the law allows it to be.
Did lawmakers envisage that the sword of Damocles would hang over home owners' heads for years? Are stayers like me not entitled to live in peace, with some clarity on whether our homes will go en bloc or not?
If a condominium's management council can exist with the subsidiary proprietors' blessing only for one year, surely a collective sales committee should be limited to a similar lifespan.
In the absence of a time cap, the committee should be legally mandated to formally begin collective sales procedures within 12 months of formation, or close. A tighter, more practical schedule is needed for collective sales committees that will not fade away voluntarily.
Susan Prior (Ms)
ST : HDB void deck is going virtual
Jan 25, 2010
SOAPBOX
HDB void deck is going virtual
Online community sites are the new version of the heartland icon
By Tan Weizhen
Portals such as MyHomeTown.sg have become popular venues for young residents in some neighbourhoods. -- PHOTO: MyHomeTown.sg
IT MIGHT have been where old folk played chess, tended to vegetable patches or pet birds, or just gossiped.
But HDB void decks of today are anything but breezy, and more geared towards the techie.
With videos, photos and live updates, they have evolved into online forums addressing everything from suitable wallpaper to leaky toilets - and are as much about being utilitarian as they are about fulfilling a social function.
My generation does not even know we can donate old-but-still-working furniture to the residents' corner, let alone the people who might sit there.
But HDB 'social networking' sites - created by and for young heartland residents - are entirely new creatures, portals where youths are anything but apathetic.
Given the right setting, they are heralding a revival of buzzing community life in residential estates. (Never mind that they are generally the first to avoid traditional community activities deemed 'uncool' or only for the old.)
There are at least 10 such sites - apart from dozens of Facebook and Twitter accounts - ranging from the more popular such as Punggol.org to the quirkier MyHomeTown.sg
Like other social networks, these sites have photos, videos, forums and information for residents of a particular town. Punggol and Pinnacle@Duxton, for instance, have scores of young residents in their 20s and 30s among their members.
They befriend one another there, in a whole new kampung experience. It is something my parents' generation might have missed out, having had to move from smaller settlements into high-rise apartments, whose dwellers barely glimpsed at one another before slamming their doors shut.
Online, a new breed of neighbours are friendlier than their closed doors suggest. Punggol.sg noted: 'In towns, like Punggol which is densely populated, it is much more difficult to be friendly to people you see on the streets.'
Yet online, people chat about the latest developments even before they move in, grouse about defects or trade decorating tips. They even know who is living in which unit.
They bond quickly too, because it is speedier to get information or alerts out to a large mass of people.
Spotted a dodgy fellow loitering at the lift lobby for several days? Send out an immediate warning on the forum.
Want to know how your new flat is progressing? Log on to see other people's photos.
The new Pinnacle@Duxton residents have even banded together online to generate debate over the lack of security in certain areas.
In an instant, neighbours become friends, something that in the offline world took people years to do.
The virtual void deck is as much a part of life to young people today as the older, physical model is to seniors.
The downside, of course, is that an iconic Singapore scene - that of residents relaxing at void decks - is disappearing.
But even if we lose a physical piece of our heartland culture, it is heartwarming to see that some things survive, even flourish, in virtual form.
tanwz@sph.com.sg
They befriend one another there, in a whole new kampung experience... Online, a new breed of neighbours are friendlier than their closed doors suggest.
SOAPBOX
HDB void deck is going virtual
Online community sites are the new version of the heartland icon
By Tan Weizhen
Portals such as MyHomeTown.sg have become popular venues for young residents in some neighbourhoods. -- PHOTO: MyHomeTown.sg
IT MIGHT have been where old folk played chess, tended to vegetable patches or pet birds, or just gossiped.
But HDB void decks of today are anything but breezy, and more geared towards the techie.
With videos, photos and live updates, they have evolved into online forums addressing everything from suitable wallpaper to leaky toilets - and are as much about being utilitarian as they are about fulfilling a social function.
My generation does not even know we can donate old-but-still-working furniture to the residents' corner, let alone the people who might sit there.
But HDB 'social networking' sites - created by and for young heartland residents - are entirely new creatures, portals where youths are anything but apathetic.
Given the right setting, they are heralding a revival of buzzing community life in residential estates. (Never mind that they are generally the first to avoid traditional community activities deemed 'uncool' or only for the old.)
There are at least 10 such sites - apart from dozens of Facebook and Twitter accounts - ranging from the more popular such as Punggol.org to the quirkier MyHomeTown.sg
Like other social networks, these sites have photos, videos, forums and information for residents of a particular town. Punggol and Pinnacle@Duxton, for instance, have scores of young residents in their 20s and 30s among their members.
They befriend one another there, in a whole new kampung experience. It is something my parents' generation might have missed out, having had to move from smaller settlements into high-rise apartments, whose dwellers barely glimpsed at one another before slamming their doors shut.
Online, a new breed of neighbours are friendlier than their closed doors suggest. Punggol.sg noted: 'In towns, like Punggol which is densely populated, it is much more difficult to be friendly to people you see on the streets.'
Yet online, people chat about the latest developments even before they move in, grouse about defects or trade decorating tips. They even know who is living in which unit.
They bond quickly too, because it is speedier to get information or alerts out to a large mass of people.
Spotted a dodgy fellow loitering at the lift lobby for several days? Send out an immediate warning on the forum.
Want to know how your new flat is progressing? Log on to see other people's photos.
The new Pinnacle@Duxton residents have even banded together online to generate debate over the lack of security in certain areas.
In an instant, neighbours become friends, something that in the offline world took people years to do.
The virtual void deck is as much a part of life to young people today as the older, physical model is to seniors.
The downside, of course, is that an iconic Singapore scene - that of residents relaxing at void decks - is disappearing.
But even if we lose a physical piece of our heartland culture, it is heartwarming to see that some things survive, even flourish, in virtual form.
tanwz@sph.com.sg
They befriend one another there, in a whole new kampung experience... Online, a new breed of neighbours are friendlier than their closed doors suggest.
ST Forum : Loopholes in law
Jan 25, 2010
Loopholes in law
'It is mystifying why there is no follow-up action on legislation governing an issue closest to people's hearts - their homes.'
MR AUGUSTINE CHEAH: 'The report, 'En bloc sales will likely roar in Tiger year' (Jan 17), set me thinking again about the collective property sales legislation which came into effect in 2007. At that time, the Government indicated that it would monitor the situation and review the law if necessary. However, even after several letters to the Ministry of Law and the press by many, including me, with real-life examples showing that the law still contains loopholes and deficiencies, there has been no reply or clarification from the authorities. It is mystifying why there is no follow-up action on legislation governing an issue closest to people's hearts - their homes. The last collective property sale cycle revealed the sham, dodgy dealings and daylight theft which are endemic in this Singaporean phenomenon. Will we allow another cycle to bring a repeat of this spectre?'
Loopholes in law
'It is mystifying why there is no follow-up action on legislation governing an issue closest to people's hearts - their homes.'
MR AUGUSTINE CHEAH: 'The report, 'En bloc sales will likely roar in Tiger year' (Jan 17), set me thinking again about the collective property sales legislation which came into effect in 2007. At that time, the Government indicated that it would monitor the situation and review the law if necessary. However, even after several letters to the Ministry of Law and the press by many, including me, with real-life examples showing that the law still contains loopholes and deficiencies, there has been no reply or clarification from the authorities. It is mystifying why there is no follow-up action on legislation governing an issue closest to people's hearts - their homes. The last collective property sale cycle revealed the sham, dodgy dealings and daylight theft which are endemic in this Singaporean phenomenon. Will we allow another cycle to bring a repeat of this spectre?'
ST : Serangoon Gardens site to be used for arts, sports
Jan 25, 2010
Serangoon Gardens site to be used for arts, sports
By Grace Chua
ARTS studios and sports facilities will occupy three buildings at the site next to the workers' dormitory in Serangoon Gardens.
The blocks were originally meant to form a buffer zone between the dormitory and the estate's residential areas, to ease residents' concerns about the workers living there.
The buildings are part of the former Serangoon Gardens Technical School along Burghley Drive.
Now, the Singapore Land Authority is tendering the blocks out on its website for use as arts, dance or drama studios and schools, or interim facilities for sports such as tennis, squash or badminton.
The blocks, with a gross floor area of 1,935 sq m, will be rented out at $14,500 a month for two years.
The website of Aljunied GRC, which administers the estate, also carried an announcement about the upcoming tender, which is expected to open later this month or next.
The tender results will be announced by April or May, according to the website.
Aljunied GRC MP Lim Hwee Hua said on Saturday that the area had already been zoned for use as a school, so it was feasible to use the site as an arts and drama studio or sports facility.
She made the remarks on the sidelines of a community programme to encourage more women to go for breast cancer screening.
Estate residents welcomed the prospective use of the buildings.
Mr John Leow, 69, who chaired a residents' committee on the dormitory issue, said he was not worried about the buildings' proximity to the dormitory because they could not be accessed from the dormitory.
'Arts or sports facilities will enrich the community,' he said.
When the workers' dormitory, now called the Central Staff Apartments, was proposed in 2008, upset residents voiced concerns about security, safety and traffic congestion.
The dormitory now houses more than 100 workers from China, India, Malaysia and Bangladesh. The number will rise to 600 by mid-year.
Mrs Lim noted there had been no issues with the workers since they moved into the buildings last month.
Serangoon Gardens site to be used for arts, sports
By Grace Chua
ARTS studios and sports facilities will occupy three buildings at the site next to the workers' dormitory in Serangoon Gardens.
The blocks were originally meant to form a buffer zone between the dormitory and the estate's residential areas, to ease residents' concerns about the workers living there.
The buildings are part of the former Serangoon Gardens Technical School along Burghley Drive.
Now, the Singapore Land Authority is tendering the blocks out on its website for use as arts, dance or drama studios and schools, or interim facilities for sports such as tennis, squash or badminton.
The blocks, with a gross floor area of 1,935 sq m, will be rented out at $14,500 a month for two years.
The website of Aljunied GRC, which administers the estate, also carried an announcement about the upcoming tender, which is expected to open later this month or next.
The tender results will be announced by April or May, according to the website.
Aljunied GRC MP Lim Hwee Hua said on Saturday that the area had already been zoned for use as a school, so it was feasible to use the site as an arts and drama studio or sports facility.
She made the remarks on the sidelines of a community programme to encourage more women to go for breast cancer screening.
Estate residents welcomed the prospective use of the buildings.
Mr John Leow, 69, who chaired a residents' committee on the dormitory issue, said he was not worried about the buildings' proximity to the dormitory because they could not be accessed from the dormitory.
'Arts or sports facilities will enrich the community,' he said.
When the workers' dormitory, now called the Central Staff Apartments, was proposed in 2008, upset residents voiced concerns about security, safety and traffic congestion.
The dormitory now houses more than 100 workers from China, India, Malaysia and Bangladesh. The number will rise to 600 by mid-year.
Mrs Lim noted there had been no issues with the workers since they moved into the buildings last month.
BT : Majority get bad service from property agents: survey
Business Times - 25 Jan 2010
Majority get bad service from property agents: survey
By AMIT ROY CHOUDHURY
A NEW survey shows that 80 per cent of all real estate transactions in Singapore are done through real estate agents and most of these end with customers encountering some sort of 'bad service'.
This was a part of the findings by final-year Diploma in Real Estate Business students of Ngee Ann Polytechnic in their recent research project on the public's perception and expectations of property agents.
The survey covered 1,014 respondents from diverse age groups, professional and educational backgrounds.
Giving details, Nicholas Mak, real estate lecturer at the tertiary institution who helmed the survey, noted that eight out of every 10 property transactions in Singapore are done through an estate agent and 77 per cent of those who use estate agents encountered 'bad service' of some sort.
The survey also showed that 73 per cent of the respondents felt that accreditation of the profession is necessary with two-thirds of them expressing their satisfaction with the current accreditation scheme.
Mr Mak added that 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.
He felt that the findings are well timed with the new regulatory framework for estate agents, which the government is planning to put in place soon.
'This survey was initiated with the objectives of finding out consumer opinion of real estate agents and improving the existing accreditation system,' Mr Mak noted.
The lecturer noted that those disappointed with services of estate agents had highlighted 'bad or wrong advice' as well as the failure to obtain favourable prices to be the key problems they had with the estate agents.
'Some of them also felt that their real estate agents neglected their opinions or suggestions,' he added.
The survey also covered the public's views on the following issues:
· What ought to be the minimum qualification of estate agents and if that affects their competency
· Consumers' expectations of services from property agents
· Whether experience and qualification equally matter in the choice of an estate agent
· Suggestions for government action.
Majority get bad service from property agents: survey
By AMIT ROY CHOUDHURY
A NEW survey shows that 80 per cent of all real estate transactions in Singapore are done through real estate agents and most of these end with customers encountering some sort of 'bad service'.
This was a part of the findings by final-year Diploma in Real Estate Business students of Ngee Ann Polytechnic in their recent research project on the public's perception and expectations of property agents.
The survey covered 1,014 respondents from diverse age groups, professional and educational backgrounds.
Giving details, Nicholas Mak, real estate lecturer at the tertiary institution who helmed the survey, noted that eight out of every 10 property transactions in Singapore are done through an estate agent and 77 per cent of those who use estate agents encountered 'bad service' of some sort.
The survey also showed that 73 per cent of the respondents felt that accreditation of the profession is necessary with two-thirds of them expressing their satisfaction with the current accreditation scheme.
Mr Mak added that 97 per cent of those who indicated that accreditation is necessary for every agent also wanted some form of government intervention.
He felt that the findings are well timed with the new regulatory framework for estate agents, which the government is planning to put in place soon.
'This survey was initiated with the objectives of finding out consumer opinion of real estate agents and improving the existing accreditation system,' Mr Mak noted.
The lecturer noted that those disappointed with services of estate agents had highlighted 'bad or wrong advice' as well as the failure to obtain favourable prices to be the key problems they had with the estate agents.
'Some of them also felt that their real estate agents neglected their opinions or suggestions,' he added.
The survey also covered the public's views on the following issues:
· What ought to be the minimum qualification of estate agents and if that affects their competency
· Consumers' expectations of services from property agents
· Whether experience and qualification equally matter in the choice of an estate agent
· Suggestions for government action.
ST : New Jurong leisure centre gets go-ahead
Jan 23, 2010
New Jurong leisure centre gets go-ahead
Plans to rebuild old complex shelved last year during downturn
By Harsha Jethnani
A LAVISH new entertainment complex for Jurong has received the green light after being put on the back burner during the financial crisis.
The manager of CapitaMall Trust (CMT) told a results briefing yesterday that the facility - including its Olympic- sized ice-skating rink - should be ready in early 2012. Demolition of the old Jurong Entertainment Centre will be completed soon.
The new centre has been designed by Benoy Architects, the group that conjured up the Ion Orchard look.
Besides the ice-skating rink, which will be visible from the surrounding eateries, the centre will have a rooftop garden plaza and cinema alongside retail outlets.
Mr Simon Ho, chief executive of CapitaMall Trust Management Limited, which manages CMT, said the centre will have five storeys and three basement levels. There will be a 24-hour linkway to the Jurong East MRT station.
He said that plans for the centre were reactivated after a deferment last year due to the economic crisis and sky-high construction costs. But he said the retail sector is looking up again.
The retail sales index - an industry measure - was up 4 per cent last November from a year earlier. This was the first increase in 13 months.
CMT's positive fourth-quarter results also increased confidence about tackling the Jurong centre.
It will have retail floor space of 204,153 sq ft with average rent per sq ft estimated at $12.26, a 123 per cent increase from the $5.49 psf level at the old centre. The project is expected to cost $200.3 million and generate 8 per cent in return on investment.
CMT's manager also said yesterday that reconfiguration works at Basement 1 of Raffles City Shopping Centre has started. This is to facilitate the building of a linkway from Basement 2 to the upcoming Esplanade MRT station. It will open in the third quarter of this year. About 63 per cent of the retail floor space in the link is pre-committed.
Shopping malls certainly delivered the goods for CMT in the last quarter.
Increases in revenue from five CMT centres - Bugis Junction, IMM Building, Lot One Shoppers' Mall, Plaza Singapura and Tampines Mall - coupled with savings boosted the bottom line. Distributable income for the three months to Dec 31 increased by 25.5 per cent to $76.5 million from the same period in 2008.
Distribution per unit (DPU) was 2.4 cents, 24.4 per cent higher than the 1.93 cents paid out for the fourth quarter of 2008. Payouts will be made on Feb 26.
Fourth-quarter gross revenue increased 4.2 per cent to $140.1 million while net income rose 32.5 per cent to $61.8 million over a year ago.
Property operating expenses decreased by 9.3 per cent to $44 million. Full-year gross revenue rose 8.2 per cent to $552.7 million while net property income was up by 10.4 per cent at $376.8 million.
It sent full-year DPU 17.7 per cent higher to 8.85 cents from the previous year's 7.52 cents.
The retail landlord maintained 99.8 per cent occupancy throughout last year and renewed 614 leases.
Positive rental reversions of 3.4 per cent in the last quarter and an overall 2.3 per cent increase in rental rates for the year were good achievements in a tough year, said Mr Ho.
'Retail rents are likely to remain stable. In addition to active lease management, we will continue to drive DPU growth through asset enhancements, selective acquisitions of yield-accretive properties and prudent capital management,' he added.
CMT units dropped four cents to $1.78 after the results were announced.
New Jurong leisure centre gets go-ahead
Plans to rebuild old complex shelved last year during downturn
By Harsha Jethnani
A LAVISH new entertainment complex for Jurong has received the green light after being put on the back burner during the financial crisis.
The manager of CapitaMall Trust (CMT) told a results briefing yesterday that the facility - including its Olympic- sized ice-skating rink - should be ready in early 2012. Demolition of the old Jurong Entertainment Centre will be completed soon.
The new centre has been designed by Benoy Architects, the group that conjured up the Ion Orchard look.
Besides the ice-skating rink, which will be visible from the surrounding eateries, the centre will have a rooftop garden plaza and cinema alongside retail outlets.
Mr Simon Ho, chief executive of CapitaMall Trust Management Limited, which manages CMT, said the centre will have five storeys and three basement levels. There will be a 24-hour linkway to the Jurong East MRT station.
He said that plans for the centre were reactivated after a deferment last year due to the economic crisis and sky-high construction costs. But he said the retail sector is looking up again.
The retail sales index - an industry measure - was up 4 per cent last November from a year earlier. This was the first increase in 13 months.
CMT's positive fourth-quarter results also increased confidence about tackling the Jurong centre.
It will have retail floor space of 204,153 sq ft with average rent per sq ft estimated at $12.26, a 123 per cent increase from the $5.49 psf level at the old centre. The project is expected to cost $200.3 million and generate 8 per cent in return on investment.
CMT's manager also said yesterday that reconfiguration works at Basement 1 of Raffles City Shopping Centre has started. This is to facilitate the building of a linkway from Basement 2 to the upcoming Esplanade MRT station. It will open in the third quarter of this year. About 63 per cent of the retail floor space in the link is pre-committed.
Shopping malls certainly delivered the goods for CMT in the last quarter.
Increases in revenue from five CMT centres - Bugis Junction, IMM Building, Lot One Shoppers' Mall, Plaza Singapura and Tampines Mall - coupled with savings boosted the bottom line. Distributable income for the three months to Dec 31 increased by 25.5 per cent to $76.5 million from the same period in 2008.
Distribution per unit (DPU) was 2.4 cents, 24.4 per cent higher than the 1.93 cents paid out for the fourth quarter of 2008. Payouts will be made on Feb 26.
Fourth-quarter gross revenue increased 4.2 per cent to $140.1 million while net income rose 32.5 per cent to $61.8 million over a year ago.
Property operating expenses decreased by 9.3 per cent to $44 million. Full-year gross revenue rose 8.2 per cent to $552.7 million while net property income was up by 10.4 per cent at $376.8 million.
It sent full-year DPU 17.7 per cent higher to 8.85 cents from the previous year's 7.52 cents.
The retail landlord maintained 99.8 per cent occupancy throughout last year and renewed 614 leases.
Positive rental reversions of 3.4 per cent in the last quarter and an overall 2.3 per cent increase in rental rates for the year were good achievements in a tough year, said Mr Ho.
'Retail rents are likely to remain stable. In addition to active lease management, we will continue to drive DPU growth through asset enhancements, selective acquisitions of yield-accretive properties and prudent capital management,' he added.
CMT units dropped four cents to $1.78 after the results were announced.
ST : Office and shop prices stop falling
Jan 23, 2010
Office and shop prices stop falling
OFFICE and shop prices appear to have bottomed out at the end of last year.
Both categories of commercial property saw small price rises in the fourth quarter, ending five quarters of decline.
Office prices rose by 1 per cent while shop prices inched up 0.6 per cent, said the Urban Redevelopment Authority. But office prices were still down 16.4 per cent for last year as a whole, and are 24 per cent lower than their peak in 2008. Similarly, shop prices fell 6.1 per cent for the whole of last year, and are still 11 per cent down from their 2008 highs.
'On the whole, the office market weathered the storm much better than anticipated,' said Mr Li Hiaw Ho, executive director of CB Richard Ellis Research.
But while sellers of commercial property may be cheerier, landlords are less so.
Office and shop rentals continued to fall in the fourth quarter, for the sixth consecutive time. Office rentals fell another 3.3 per cent, bringing the full-year decrease to a sharp 23.6 per cent. Shop rentals fell 1.4 per cent in the quarter, ending the year down 7.4 per cent.
But property consultants noted that the rate of decrease is slowing, and rents may even rise next year. 'The expected economic recovery in 2010 will give a boost to business sentiment,' said Ms Tay Huey Ying, Colliers International's director for research and advisory.
Still, the upcoming supply of more than 2.5 million sq ft of office space will weigh on the market in the short term, she said. She expects office rents to ease by another 5 per cent in the first half of the year before bottoming out.
One good sign: With lower rents, tenants are taking up more office space.
The amount of office space taken up in the fourth quarter jumped 10 times from that in the third quarter, from 32,292 sq ft to 301,392 sq ft. This meant the office vacancy rate dipped to 12.1 per cent in the fourth quarter, even though an extra 226,044 sq ft of new office space was completed, said Mr Li.
Office and shop prices stop falling
OFFICE and shop prices appear to have bottomed out at the end of last year.
Both categories of commercial property saw small price rises in the fourth quarter, ending five quarters of decline.
Office prices rose by 1 per cent while shop prices inched up 0.6 per cent, said the Urban Redevelopment Authority. But office prices were still down 16.4 per cent for last year as a whole, and are 24 per cent lower than their peak in 2008. Similarly, shop prices fell 6.1 per cent for the whole of last year, and are still 11 per cent down from their 2008 highs.
'On the whole, the office market weathered the storm much better than anticipated,' said Mr Li Hiaw Ho, executive director of CB Richard Ellis Research.
But while sellers of commercial property may be cheerier, landlords are less so.
Office and shop rentals continued to fall in the fourth quarter, for the sixth consecutive time. Office rentals fell another 3.3 per cent, bringing the full-year decrease to a sharp 23.6 per cent. Shop rentals fell 1.4 per cent in the quarter, ending the year down 7.4 per cent.
But property consultants noted that the rate of decrease is slowing, and rents may even rise next year. 'The expected economic recovery in 2010 will give a boost to business sentiment,' said Ms Tay Huey Ying, Colliers International's director for research and advisory.
Still, the upcoming supply of more than 2.5 million sq ft of office space will weigh on the market in the short term, she said. She expects office rents to ease by another 5 per cent in the first half of the year before bottoming out.
One good sign: With lower rents, tenants are taking up more office space.
The amount of office space taken up in the fourth quarter jumped 10 times from that in the third quarter, from 32,292 sq ft to 301,392 sq ft. This meant the office vacancy rate dipped to 12.1 per cent in the fourth quarter, even though an extra 226,044 sq ft of new office space was completed, said Mr Li.
ST : Private home rents pick up
Jan 23, 2010
Private home rents pick up
Reasons: Return of expat honchos; rise in demand for completed homes
By Fiona Chan
While private home rents are set to rise this year, those in suburban areas, like these in Lentor Avenue, are unlikely to see a big increase. -- ST PHOTO: ALPHONSUS CHERN
THINGS are looking up for landlords of private homes, such as condominiums and landed houses.
After suffering through five quarters of rental decline and a 20 per cent drop in rents since 2008, they may finally be able to raise their rates this year.
Private home rents halted their slump and started to turn around with a 0.6 per cent rise in the fourth quarter of last year, according to figures released by the Urban Redevelopment Authority (URA) yesterday.
Although rents still haemorrhaged 14.6 per cent for the whole of last year, consultants say they have stabilised and are on the way to recovery.
'From September last year, we started seeing more landlords raise rents off the lows of the first and second quarters of last year,' said Mr Donald Han, managing director of Cushman & Wakefield.
'I think the trend will probably continue this year in anticipation of an economic recovery.'
As economic growth picks up, businesses, including multinationals, are stepping up hiring and are likely to bring in more expatriates, who form the bulk of tenants of private homes in Singapore, Mr Han said.
'Usually the first to come in are the heads of divisions, the top honchos, who will be hired to start operations in Singapore,' he said, adding that this will start pushing up rental demand for high-end properties.
Already, landlords of some luxury homes - from high-end apartments to good-class bungalows with rents of $8,000 per month or more - have raised their rates by 5 to 6 per cent in the fourth quarter of last year, Mr Han said.
Rents are also rising because the demand for completed homes outstripped the supply of such homes last year, noted Ms Tay Huey Ying, Colliers International's director for research and advisory.
The stock of private homes increased by 8,285 units last year, the biggest net increase in five years, she said.
But that was not enough for home seekers. The increase in demand for physically completed homes hit a nine-year high of 10,520 units, Ms Tay said.
Colliers calculates the demand for completed homes by taking the total number of completed units available and deducting the number of vacant units left on the market.
Any increase in this number of occupied homes is deemed an increase in demand. This pushed the occupancy rate of private homes to an all-time high of 95 per cent at the end of last year, from 93.9 per cent at the end of 2008.
The surge in demand for completed homes allowed rents to inch up towards the end of last year, added Ms Tay. She expects the tight supply of homes to continue pushing up rents by 5 to 10 per cent this year.
High-end homes in central areas, which are traditionally more popular with expats, will lead the charge, she said. Rents there are projected to grow by 8 to 12 per cent this year due to their proximity to the upcoming integrated resorts, international schools, the Central Business District as well as the rejuvenated Orchard Road shopping belt.
But Mr Han said rent increases this year will depend on whether the economy continues to grow in the second half of the year.
Between now and June, 'homes in the upper mid-tier to luxury range will see a rental uptick of 5 to 8 per cent', he said. If the economic recovery maintains its strength past June, rents could rise another 5 to 10 per cent.
Mid-tier homes on the city-fringe region, which include expat-friendly areas such as Tanjong Rhu and Marine Parade, are expected to see rents rise by 5 to 8 per cent, said Ms Tay.
But rents of suburban homes are expected to stay soft for a while, rising by at most 3 per cent this year, she added.
These trends are in line with what URA data showed from the fourth quarter of last year.
Rents of non-landed properties in the prime districts - Orchard, Holland, Newton, Novena, Bukit Timah, Marina Bay and Sentosa - led the market increase by rising 0.9 per cent in the quarter, according to URA data.
But rents in the city-fringe areas, which range from Marine Parade to Queenstown to Bishan, were largely flat, as were rents of suburban homes.
For the full year, rents of prime homes plunged 15.9 per cent. Those in city-fringe areas slumped 14.9 per cent and suburban rents dropped 14 per cent.
Private home rents pick up
Reasons: Return of expat honchos; rise in demand for completed homes
By Fiona Chan
While private home rents are set to rise this year, those in suburban areas, like these in Lentor Avenue, are unlikely to see a big increase. -- ST PHOTO: ALPHONSUS CHERN
THINGS are looking up for landlords of private homes, such as condominiums and landed houses.
After suffering through five quarters of rental decline and a 20 per cent drop in rents since 2008, they may finally be able to raise their rates this year.
Private home rents halted their slump and started to turn around with a 0.6 per cent rise in the fourth quarter of last year, according to figures released by the Urban Redevelopment Authority (URA) yesterday.
Although rents still haemorrhaged 14.6 per cent for the whole of last year, consultants say they have stabilised and are on the way to recovery.
'From September last year, we started seeing more landlords raise rents off the lows of the first and second quarters of last year,' said Mr Donald Han, managing director of Cushman & Wakefield.
'I think the trend will probably continue this year in anticipation of an economic recovery.'
As economic growth picks up, businesses, including multinationals, are stepping up hiring and are likely to bring in more expatriates, who form the bulk of tenants of private homes in Singapore, Mr Han said.
'Usually the first to come in are the heads of divisions, the top honchos, who will be hired to start operations in Singapore,' he said, adding that this will start pushing up rental demand for high-end properties.
Already, landlords of some luxury homes - from high-end apartments to good-class bungalows with rents of $8,000 per month or more - have raised their rates by 5 to 6 per cent in the fourth quarter of last year, Mr Han said.
Rents are also rising because the demand for completed homes outstripped the supply of such homes last year, noted Ms Tay Huey Ying, Colliers International's director for research and advisory.
The stock of private homes increased by 8,285 units last year, the biggest net increase in five years, she said.
But that was not enough for home seekers. The increase in demand for physically completed homes hit a nine-year high of 10,520 units, Ms Tay said.
Colliers calculates the demand for completed homes by taking the total number of completed units available and deducting the number of vacant units left on the market.
Any increase in this number of occupied homes is deemed an increase in demand. This pushed the occupancy rate of private homes to an all-time high of 95 per cent at the end of last year, from 93.9 per cent at the end of 2008.
The surge in demand for completed homes allowed rents to inch up towards the end of last year, added Ms Tay. She expects the tight supply of homes to continue pushing up rents by 5 to 10 per cent this year.
High-end homes in central areas, which are traditionally more popular with expats, will lead the charge, she said. Rents there are projected to grow by 8 to 12 per cent this year due to their proximity to the upcoming integrated resorts, international schools, the Central Business District as well as the rejuvenated Orchard Road shopping belt.
But Mr Han said rent increases this year will depend on whether the economy continues to grow in the second half of the year.
Between now and June, 'homes in the upper mid-tier to luxury range will see a rental uptick of 5 to 8 per cent', he said. If the economic recovery maintains its strength past June, rents could rise another 5 to 10 per cent.
Mid-tier homes on the city-fringe region, which include expat-friendly areas such as Tanjong Rhu and Marine Parade, are expected to see rents rise by 5 to 8 per cent, said Ms Tay.
But rents of suburban homes are expected to stay soft for a while, rising by at most 3 per cent this year, she added.
These trends are in line with what URA data showed from the fourth quarter of last year.
Rents of non-landed properties in the prime districts - Orchard, Holland, Newton, Novena, Bukit Timah, Marina Bay and Sentosa - led the market increase by rising 0.9 per cent in the quarter, according to URA data.
But rents in the city-fringe areas, which range from Marine Parade to Queenstown to Bishan, were largely flat, as were rents of suburban homes.
For the full year, rents of prime homes plunged 15.9 per cent. Those in city-fringe areas slumped 14.9 per cent and suburban rents dropped 14 per cent.
ST : Home buyers turn up in droves for Cube 8 apartments
Jan 23, 2010
Home buyers turn up in droves for Cube 8 apartments
By Jonathan Kwok
The 36-storey Cube 8 in Thomson Road comprises 177 apartments that include four sky villas worth $3.6 million to $3.8 million each. -- PHOTO: CITY DEVELOPMENTS
UNITS at City Developments' Cube 8 in Thomson Road have been selling like hot cakes since the developer opened its doors for previews on Thursday.
The Straits Times understands that all 80 units released in Phase One have been snapped up. A further 40 released in Phase Two have mostly been sold as well.
The average price of the units sold is $1,250 per sq ft, valuing the three-bedroom units at $1.6 million to $1.8 million, while the four-bedders cost around $2.5 million. The penthouses or sky villas will set buyers back by $3.6 million to $3.8 million.
City Developments will be releasing more units this weekend.
'The actual units sold would have crossed 100 already,' said Mr Joseph Tan, executive director for residential at CB Richard Ellis, the project's marketing agent.'From the look of things, maybe around 20 per cent of the buyers are foreigners, with the rest locals. We also see an equal 50-50 mix of owner-occupiers and investors.
'All the one-bedroom apartments have been sold, as have most of the two-bedders.'
The freehold project in Thomson Road is on the site of the former The Albany and Thomson Mansion and next to City Developments' The Arte at Thomson, which was launched for sale in March last year.
While the two projects are adjacent, The Arte is in District 12 while Cube 8 is in District 11.
City Developments opened the doors to Cube 8 on Thursday to former owners of The Albany and Thomson Mansion. Staff and directors were also invited to the private preview.
The public preview started yesterday.
The 36-storey Cube 8 has 177 apartments, comprising 39 one-bedroom units, 58 two-bedders, 67 three-bedders, nine four-bedroom apartments and four sky villas.
Sizes range from about 560 sq ft for a one-bedder to 893 sq ft to 926 sq ft for two-bedroom units. and 1,335 sq ft to 1,475 sq ft for three-bedders. The four-bedroom apartments will be around 1,905 sq ft, while the sky villas will be 3,025 sq ft to 3,229 sq ft.
Ms Tay Huey Ying, director of research and consultancy at Colliers International, said: 'The strong demand for Cube 8 does not come as a surprise.
'The market has been rather quiet over the last few months in terms of launch activity. Now that people have come back from their holidays, they are ready to look into serious commitments such as home purchases again.
'With the economy looking up, job prospects looking up, and wages going up... all these contribute to the positive sentiment.'
Ms Tay added that if the economic recovery remains on track and there are no external events or new government cooling measures, buying should stay healthy this year, although new sales volume is unlikely to repeat last year's bumper figure.
She expects 7,000 to 9,000 new sales this year, as opposed to the 14,688 new units sold last year
Home buyers turn up in droves for Cube 8 apartments
By Jonathan Kwok
The 36-storey Cube 8 in Thomson Road comprises 177 apartments that include four sky villas worth $3.6 million to $3.8 million each. -- PHOTO: CITY DEVELOPMENTS
UNITS at City Developments' Cube 8 in Thomson Road have been selling like hot cakes since the developer opened its doors for previews on Thursday.
The Straits Times understands that all 80 units released in Phase One have been snapped up. A further 40 released in Phase Two have mostly been sold as well.
The average price of the units sold is $1,250 per sq ft, valuing the three-bedroom units at $1.6 million to $1.8 million, while the four-bedders cost around $2.5 million. The penthouses or sky villas will set buyers back by $3.6 million to $3.8 million.
City Developments will be releasing more units this weekend.
'The actual units sold would have crossed 100 already,' said Mr Joseph Tan, executive director for residential at CB Richard Ellis, the project's marketing agent.'From the look of things, maybe around 20 per cent of the buyers are foreigners, with the rest locals. We also see an equal 50-50 mix of owner-occupiers and investors.
'All the one-bedroom apartments have been sold, as have most of the two-bedders.'
The freehold project in Thomson Road is on the site of the former The Albany and Thomson Mansion and next to City Developments' The Arte at Thomson, which was launched for sale in March last year.
While the two projects are adjacent, The Arte is in District 12 while Cube 8 is in District 11.
City Developments opened the doors to Cube 8 on Thursday to former owners of The Albany and Thomson Mansion. Staff and directors were also invited to the private preview.
The public preview started yesterday.
The 36-storey Cube 8 has 177 apartments, comprising 39 one-bedroom units, 58 two-bedders, 67 three-bedders, nine four-bedroom apartments and four sky villas.
Sizes range from about 560 sq ft for a one-bedder to 893 sq ft to 926 sq ft for two-bedroom units. and 1,335 sq ft to 1,475 sq ft for three-bedders. The four-bedroom apartments will be around 1,905 sq ft, while the sky villas will be 3,025 sq ft to 3,229 sq ft.
Ms Tay Huey Ying, director of research and consultancy at Colliers International, said: 'The strong demand for Cube 8 does not come as a surprise.
'The market has been rather quiet over the last few months in terms of launch activity. Now that people have come back from their holidays, they are ready to look into serious commitments such as home purchases again.
'With the economy looking up, job prospects looking up, and wages going up... all these contribute to the positive sentiment.'
Ms Tay added that if the economic recovery remains on track and there are no external events or new government cooling measures, buying should stay healthy this year, although new sales volume is unlikely to repeat last year's bumper figure.
She expects 7,000 to 9,000 new sales this year, as opposed to the 14,688 new units sold last year
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