UE Considers Retail Reit Backed By Malls

Source : The Straits Times, 7 Aug 2007

UNITED Engineers (UE) is mulling over starting a retail real estate investment trust (Reit) backed by malls in its new mixed development in one-north and UE Square.

Alternatively, it could sell the retail space of about 100,000 sq ft at the mixed development to an existing Reit or another party, its managing director and chief executive officer, Mr Jackson Yap, told The Straits Times yesterday.

UE Square is a mixed development with 78,737 sq ft of retail space.

He said this after the builder announced that it has sold all 366 homes at The Rochester, which is located at the same 99-year leasehold development as the one-north mall.

The residential units were sold at an average price of $1,300 per sq ft (psf), UE said in a statement yesterday. Prices ranged from $900 psf to about $1,600 psf.

The Rochester, designed by famed architect Paul Noritaka Tange of Tange Associates, is the second condominium to be marketed at the 200ha research hub one-north.

The first - the 405-unit One North Residences - was sold in March at $850 psf to $950 psf on average. Like the first condominium, The Rochester was bought mainly by locals. Its nine penthouses that come with private lap pools, however, were purchased mostly by foreigners, at $4 million to $8 million each.

UE’s one-north mixed development also consists of 125 service apartments and a 250-room hotel. The company last launched a residential project - at UE Square - more than a decade ago. But more will come, said Mr Yap.

For now, UE is focusing on its next project, a high-end one located at Balmoral Crescent.

It plans to launch and market this 40-unit development in Hong Kong and Jakarta at about $2,500 psf in October.

UE had tied up with Kajima Overseas Asia to buy the Balmoral site in a collective sale last August for $52 million or just $733 psf of potential gross floor area, inclusive of development charge