Monday, December 10, 2007

浩然大厦Horizon Towers 获准出售

《联合早报》Dec 10, 2007

分层地契局推翻少数业主反对论据 分层地契局昨天批准浩然大厦(Horizon Towers)集体出售的申请,意味这场折腾了将近半年的交易终于有望成交,成功出售。

经过上个月为期两个多星期的听审,分层地契局在斟酌了一个多星期后,昨天基于五个论点不成立而推翻了少数业主所提出的反对论据。

分层地契局认为,批准申请并没有损害少数业主的利益,申请也符合法律所需的至少80%屋主同意出售的要求。此外,参考上个月上诉遭驳回的凤凰楼(Phoenix Court)集体出售案子为背景,同时以法律的意义为考量,该局因此认为少数业主的反对论据并不成立。

60多名浩然大厦业主昨天傍晚聚集在分层地契局听取判决。买方Horizon Partners私人有限公司(HPPL)的董事林先禄也亲临现场。

闻判后,现场异常寂静,鸦雀无声。只见好几名业主红着眼,眼泪几乎快夺眶而出,之后在细雨中匆匆离去,
与八月间该局决定不批准申请时,大多数业主和少数业主互相拥抱欢呼的情景形成强烈对比。

由旅店置业和两家外国投资基金Morgan Stanley及Qatar Investments组成的HPPL,在今年一月获得销售委员会的同意,以5亿元购买浩然大厦。不过,分层地契局于8月3日以技术上不符合规定的理由,不批准集体出售委员会的集体出售令申请。

HPPL之后入禀高庭告业主违反选购权,要求同意出售的业主尽其所能重新向分层地契局申请并获得集体出售令,否则得归还之前所收取的5000万元定金,还可能面对10亿元的索赔官司。

在面对官司的压力下,同意出售的业主后来同意把交易完成期限延迟到12月11日,同时向高庭上诉分层地契局的决定。高庭后来批准上诉,该局于上个月30日继续审理申请。

少数业主失望未决定是否上诉

过去几个月力争保住家园的少数业主昨天在判决后受访时表示很失望。他们目前还没决定是否要上诉。据了解,少数业主以及个别代表律师将在下个星期集体会面商讨对策,并决定是否向上诉庭提出申请。

其中一名少数业主陈小姐说:“这个决定并非出乎意料。我们已尽力做应该做的,同时也会采取必要的行动。”

原本还抱着一线希望的另一名少数业主则表示,消息来得太突然,目前屋价也已飙升了许多,在短时间内相信无法找到合心意的新家,可能会暂时寄宿在亲戚家,等到市场有更多新供应后再进场。

另一边厢,同意出售的业主表示这个决定让他们如释重负,但还是难掩失望之情。由于本地房地产价格自今年初以来直线飙升,在分层地契局批准出售后,浩然大厦的业主得接受比目前市价低的价格,也无法以集体出售所得在市面上买到同等替代房子。

约80名同意出售的业主昨天发表声明:“我们对分层地契局的决定感到高兴,也很满意交易能有机会完成。我们盼望买方能够确定会完成交易,同时撤消与一些业主的官司。”

代表买方的艾伦格禧(Allen & Gledhill)律师事务所高级律师尚穆根则说:“我们的客户抱着诚信进入这个交易,所开出的是当时市场的最高价,申请因此理应顺利进行。然而,市场之后转势,使这个交易经历了好几个关键波折,但我们很欣慰,审理团最后还是决定让交易通过。”

买方HPPL董事林先禄过后也通过律师说:“我们很满意分层地契局批准集体出售申请,不接受反方的论据,包括交易诚信缺失(bad faith)。”

至于买方是否会撤消与同意出售业主的现有官司,据了解,由于少数业主还有一个月的时间向上诉庭提出上诉,因此买方相信会等到交易成交后才决定是否撤消。

12年前首批获选选择性整体重建 文忠路组屋转售价比当年认购价涨一倍

《联合早报》Dec 10, 2007

本地首批获选进行选择性整体重建计划的文忠路组屋,昨天举行竣工仪式。由于新组屋位于抢手的黄金地段,目前的转售价已比1995年宣布重建消息后新组屋的认购价高出一倍左右。

首批获选进行选择性整体重建计划的组屋位于目前抢手的黄金地段。 

政府是在1995年8月宣布在文忠路展开这项计划,分两个阶段进行。当时有意购买重建后的新组屋居民,平均以18万9000元认购90平方米的四房式组屋、21万9000元认购100平方米的四房式组屋、32万6000元认购五房式组屋。

Dennis Wee房地产经纪行董事许家荣透露,该地段有四房式组屋今年9月份的转售价约44万元,有五房式组屋则转手价约59万元,相当于当年认购价格的一倍。

一位受访的老居民透露,自己在1977年以2万1000元购买文忠路的旧组屋。30年后,经过重建,居民的组屋资产获得增值。

文忠路地段重建前建有16座屋龄超过40多年的组屋,每座四层楼高,共384个单位,三房式和四房式各半。重建后的新邻里名为Boon Tiong Arcadia,8座组屋分别是第2A、2C、4A、4B、6A、6B、8A和8B座组屋,共521个四房式和432个五房式单位。

据建屋发展局发言人透露,Boon Tiong Arcadia的居民有40%是从整体重建前的旧组屋搬来,其余575个单位由通过申请购屋的新居民。

Boon Tiong Arcadia居民委员会主席郑翰泽告诉本报,新居民为组屋区注入新活力,但组屋区也保留了旧有的甘榜精神和人情味。

国防部政务部长兼丹戎巴葛集选区议员顾蔡矶昨天受邀为Boon Tiong Arcadia整体重建计划主持竣工仪式。

他致词时说,当年政府在文忠展开这项计划时,有许多居民抱怨获得的赔偿太少,新组屋的售价却太高。如今,组屋的价格比当年政府卖给居民的价格高出许多,可见一些政策需要长远的眼光,不是一两年内就会见效。

建屋发展局在去年12月和今年1月展开一项调查,以找出Boon Tiong Arcadia居民对选择性整体重建计划是否满意。接受调查的301户居民当中,有91%的居民对计划和新组屋表示满意。

住在第4A座组屋的居民陈珠兴(58岁)说,新组屋的电梯在每层楼停留,对于那些行动不便的老人来说,这是非常重要的。

HDB Survey Shows Strong Satisfaction With SERS

Source : Channel NewsAsia, 09 December 2007

Most Singaporeans are satisfied with the Selective En Bloc Redevelopment Scheme (SERS), according to a Housing and Development Board survey.

The poll was conducted from December 2006 to January 2007 among residents living in the new SERS blocks at Boon Tiong Road.

To mark the SERS Completion Ceremony at Boon Tiong Arcadia, MP for Tanjong Pagar GRC, Associate Professor Koo Tsai Kee, joined residents for a party.

Their area was the first site announced under SERS and many are happy with the estate's look.

Over 300 households responded to the HDB survey and about 91 percent of them said they were in favour of the SERS scheme.

Almost 90 percent were satisfied with the new facilities such as a pavilion, playground, fitness corner and elderly friendly facilities.

More than nine in ten respondents also liked the block layout, the new mail boxes, block orientation and facade design and finishes. - CNA/so

Room For More Green Reits: Study

Source : The Business Times, December 10, 2007

Need to push for more eco-friendly practices in real estate, especially Reits sector: NUS report

REAL estate investment trusts (Reits) are becoming increasingly ubiquitous in Singapore, thanks to their popularity. But more could be done to improve their environmental impact, given their growing significance in the property scene.

Dr Joseph Chun of law firm Shook Lin & Bok has noted - in a recent study he undertook while he was then employed by the NUS’s Department of Real Estate - that the legal framework in which Reits operate has the likely effect of undermining the Singapore government’s efforts to encourage green property development and management.

And he has suggested that there may be a need to consider measures to counteract these presumably unintended adverse environmental effects.

‘Real estate is one of the most significant asset classes in Singapore … However, the land is more than an investment asset to be managed for maximum income; it is also our abode in which we live, work, and play. Investment decisions that enhance or degrade this abode have serious impacts on our lives that go beyond financial returns,’ Dr Chun said, in his article Are Reits Built to be Green?.

He suggests that more needs to be done to encourage environmentally friendly practices within the property sector in general, and the Reits sector in particular.

The popularity of Reits as an investment tool in Singapore has encouraged the growth and creation of such trusts. The number has grown from just one - CapitaMall Trust, listed in July 2002 - to 20 Reits now listed on the Singapore Exchange.

There have been estimates that Reits could eventually constitute up to 70 per cent of the listed real estate in Singapore - in line with international trends.

‘As Reits increase their dominance of the urban environment, the need to avoid or at least mitigate those aspects of Reit law that encourage unsustainable behaviour will correspondingly become more urgent,’ Dr Chun proposed in his article.

He believes the nature of Reits as an investment tool and the legal framework governing them significantly restrict the scope of any green agenda.

He observed that Reits are designed to appeal to investors looking for short-term, steady cash returns - with little to motivate the Reit manager to invest in measures that benefit the public or the occupants of the Reit’s properties, ie. green measures, if these do not increase the Reit’s income.

‘As long as tenants who pay the utility charges are not willing to pay a premium for energy efficiency or healthier indoor environment, investing in green refurbishments that do not provide significant quantifiable financial returns is simply not an attractive use of limited funds,’ he noted.

The short-term orientation is further encouraged via the reporting requirements placed on Reits - with managers having to report the trust’s financial performance every quarter, value each property of the trust at least once a year and report the annual value in the annual report. These act as a barrier towards a life cycle approach to investing in environmental performance.

There are also funding constraints to pursuing a green agenda, with Reits having to distribute most of their taxable income to unit holders in order to maintain their tax transparent status.

‘The legal limit on the amount of its funds a Reit can invest in property development coupled with the relatively risky nature of property development also doesn’t help the green cause as it means that a Reit is more likely to seek out existing buildings to acquire rather than opportunities to develop new properties,’ Dr Chun said.

Typically, it is easier and less costly for developers to incorporate environmentally friendly features into new buildings than it is to improve the energy efficiency of existing buildings.

A cue could be taken from the US, where several states offer tax credits for buildings that meet certain green standards.

Dr Chun believes the law can be amended to encourage the development of more environmentally friendly buildings. He suggests relaxing the legal requirements on the minimum distribution of dividends and limits on borrowings in respect of retained earnings or borrowings invested in refurbishment, retrofitting and renovation activities that lead to a property achieving a green rating.

He also believes that measures could be put in place to mandate annual assessments of the environmental performance of the properties owned by Reits, alongside the current annual valuations needed of the properties owned by Reits. ‘(This will) help ethical investors make informed decisions about the green value of a Reit, thereby giving the Reit looking to attract the ethical investors’ dollar a motivation to upgrade its environmental performance,’ he said.

Dr Chun concludes, in his piece: ‘Sustainable development requires us to integrate the environmental considerations into all our development decisions, including our investment decisions, so it is unsatisfactory when the law encourages investment in real estate that has the potential to cause environmental harm without simultaneously providing for compensating measures to avoid or mitigate the harm.’

Possible US Recession Key Concern For S'pore's Growth In 2008

Source : Channel NewsAsia, 10 December 2007

The Singapore economy has continued to show strong growth this year, surprising even the experts.

Economists have had to revise their forecasts upwards several times over the course of 2007.

The latest MAS survey of professional forecasters showed they expect the economy to grow by 8 percent for the full year, up from the 7.5 percent predicted three months earlier.

Analysts are keeping a positive tone for 2008, although there are downside risks.

Jimmy Koh, Head of Economics-Treasury Research, UOB, said: "The construction side will continue to outperform... services side, I think, will be fine. We're still getting about 7 to 8 percent growth. Manufacturing is still going through structural changes. I think getting about 5 to 6 percent growth should not be difficult. I think one of the main risks going forward for Singapore economy is how the global environment will look like."

A potential spanner in the works next year could be the continued fallout from the US housing credit crisis - with the US economy expected to see a slowdown.

Economists said Singapore's open economy will not be spared but the effect might be delayed till the second half of 2008, buffered by diversified growth drivers and strong domestic demand.

Chua Hak Bin, Director of Asia Pac Economic & Market Analysis, Citigroup Global Markets Singapore, said: "We like the domestic demand a lot more. We are probably still fairly positive on the marine offshore engineering side. That sector is driven less by the US business cycle, it's more dependent on what's happening in oil prices and oil prices remain pretty elevated.

"I think it looks like a demand from oil and all that will remain pretty high given the pace at which China and India is going. The other sector is banks."

But along with robust growth, Singapore has seen its highest inflation rate since 1994 at 2.9 percent in August.

This is expected to hit as high as 5 percent in the first six months of 2008 before easing off in the second half.

Higher food prices, in particular, are seen to be taking a toll on the lower income group.

But analysts said the government can afford to be generous.

"I think the good news is, with the GST hike last year, the windfall from the fiscal side has been tremendous. The government has been raking in (a lot) in terms of tax revenue and so on, so the government actually has a lot of room to be a lot more generous... to provide help and rebates for the low-income group (that is) really struggling with a high cost of living, so we should see some handouts on that front," said Chua.

And while rising rents and business costs are on the watchlist, economists do not expect this to erode Singapore's competitiveness - yet.

Koh said: "It's important to note that globally, we're not seeing a runaway in inflation. Two things - global technological advancement has increased productivity in every area and able to bring prices down significantly; at the same time, you have low-cost centres like China and India entering the global system. These factors will, by and large, put a cap on broad-based, non-food inflation globally."

The government expects the Singapore economy to grow by between 4.5 and 6.5 percent in 2008. Inflation next year is forecast to hit 3.7 percent, up from 2 percent this year. - CNA/so

Analysts Not Worried About Singapore's Competitiveness

Source : Channel NewsAsia, 10 December 2007

With rising inflation and business costs, there are concerns that Singapore may lose its competitiveness as a business hub.

But analysts said the city is still able to attract foreign companies to set up shop, citing the government's online framework as a key element in this debate.

David Cohen, Asia Economic Forecasting Director, Action Economics, said: "Singapore's costs in financial services are still competitive to its key competitors such as Hong Kong and Tokyo. Singapore is still reasonably affordable compared to those two sectors. The costs are accompanied by the attractiveness of Singapore as a business centre.

"The ability to attract skilled workers of various varieties is an appeal of Singapore as a business centre, together with a reasonably efficient government with little corruption and an efficient transportation hub."

From January till August, 17,543 companies were set up in Singapore, out of which, 30 percent were foreign companies.

Foreign companies are defined as enterprises with over 50 percent capital share from foreign countries.

Over the past year, big global corporate names such as Shell, ExxonMobil and GlaxoSmithKline have expanded their footprint in Singapore.

And there are also new players like Renewable Energy Corporation setting up teams here.

Jimmy Koh, Head of Economics-Treasury Research, UOB, said: "I think what foreign investors really look for when they come is not how much they are paying per square foot... they'd be looking at ratings in particular to gauge whether Singapore is competitive or not."

For a second year in a row in 2007, Singapore topped the World Bank's Doing Business rankings as the easiest place to do business in, out of 178 economies worldwide.

The rankings were based on ten indicators which tracked time and cost to meet government regulations throughout the business process – from start-up to even closure.

World Bank said e-governance is the key element that makes Singapore stand out.

Sabine Hertveldt, Private Sector Development Specialist, The World Bank, said: "(One of the) factors that make Singapore top the rankings on the Doing Business rankings is e-governance - the fact that everything happens online, that businesses can comply with all regulatory requirements by using the internet. There is no waiting time and it's very cheap, very low cost to obtain a building permit, apply for registration and so forth.

"They can focus on their businesses rather than deal with requirements of a regulatory nature. That's the one factor that a lot of countries can still learn from Singapore. I think it's very likely Singapore can maintain its ranking if it continues to perform."

In a separate ranking on competitiveness by the World Economic Forum, Singapore came in 7th overall, but it topped the countries in Asia.- CNA/so

Most Flats Offered In HDB Balloting Snapped Up

Source : The Straits Times, Dec 10, 2007

WHO says HDB flat applicants are choosy? They are not, going by the almost full take-up rate of 3,034 units of four-room and bigger flats offered in the past four bi-monthly sales carried out by the Housing Board.

Even the Board is pleased with the response to the sales under the combined balloting and walk-in system, describing it as 'very good' in a statement on Monday.

The units were snapped up in the bi-monthly sales exercises which were introduced by the HDB in April.

The overall take-up rate of the 3,034 units in four different zones was 96 per cent, or 2,917 units.

In two of the balloting exercises for 843 flats offered in established towns and the North and West zones , all the units were taken up.

The HDB is offering another 315 flats in the North-East zone for sale in December.

Interested flat buyers can submit their applications online from Monday till Dec 17.

HDB will conduct a computer ballot of all the submitted applications after the closing date to determine the queue positions of the applicants.

Applicants will then be notified of their appointments to book a flat, subject to availability.

Those who have missed the application period can submit their applications online from 8 am on Dec 18.

Households with gross monthly income of up to $8,000 are eligible to buy the 4-room and bigger flats offered for sale, subject to eligibility conditions such as citizenship, family nucleus, and non-ownership of private property.

Eligible first-timers can also apply for the Additional CPF Housing Grant (AHG) of up to $30,000. To qualify, they must have been in continuous employment over the past 24 months prior to the date of the flat application, and have an average gross monthly income of $4,000 or less over the same period.

Applicants can visit HDB's e-sales website to get more details on the December bi-monthly sales exercise or e-mail hdbsales@hdb.gov.sg.

HDB Launches Sale Of 4-Room, Bigger Flats In Northeast Zone

Source : Channel NewsAsia, 10 December 2007

The Housing and Development Board (HDB) has launched the sale of more than 300 four-room and bigger flats in the Northeast zone.

The flats are in Punggol, Sengkang and Hougang.

This is the second sales exercise for the Northeast zone under the combined balloting/walk-in system.

Interested flat buyers may submit their applications online from Monday until December 17.

HDB will conduct a computer ballot of all the submitted applications to determine the queue positions of the applicants.

Applicants will then be notified of their appointments to book a flat, subject to availability and ethnic quota when their turns are due.

Those who have missed the application period can submit their applications online from 8am on December 18. They will be given appointments to book a flat after those who have earlier submitted their applications within the application period.

HDB said there has been an overall take-up rate of 96 per cent for its four bi-monthly sales exercises for four-room and bigger flats under the combined balloting/walk-in system. - CNA/ac

YTL ties up with Lehman to develop Thai resort

Source : The Straits Times, Dec 10, 2007

KUALA LUMPUR - MALAYSIA'S largest builder, YTL Corp, and Lehman Brothers have agreed to jointly develop a RM270 million (S$117.3 million) luxury resort on Thailand's Koh Samui island.

They might team up again for more such projects across South-east Asia, YTL managing director Francis Yeoh said after signing the agreement last Thursday.

He said YTL is looking for properties in Vietnam, Cambodia and the Philippines. In Malaysia, it is looking at Sabah, Sarawak and Pahang.

Lehman, which has a strong property portfolio in Thailand, hopes to announce some investments in Malaysia in before long, said Mr Charles Rubin, the head of its global real estate group in South-east Asia. Lehman is also interested in moving into Indonesia, he added.

The New Straits Times quoted Tan Sri Dr Yeoh as saying: 'We're looking forward to more joint ventures with Lehman. Independently, we're both moving in the same direction'.

He strongly believes that real estate in Asia has yet to realise its full potential.

'While the Mediterranean and the Caribbean took 25 years to develop and realise their full potential - and property prices there have appreciated by 15,000 per cent over the period - I foresee South-east Asia will take only 10 to 15 years to realise its potential.'

Apart from Malaysia, YTL has luxury hotels in regional tourist hot spots such as Phuket in Thailand and Bali in Indonesia.

Ion Orchard plans to kick off ad campaign in Q108

Source : The Business Times, December 10, 2007

Ion Orchard intends to launch an advertising campaign to promote the mall in the first quarter of next year - almost a whole year before the Orchard Road mall opens its doors to shoppers in end-2008.

Bold and fashionable: The ad campaign will seek to market Ion Orchard as a world-class retail destination

For starters, the mall will run a print ad campaign in selected international publications such as the Wall Street Journal Asia and the Financial Times.

Designed to convey a mood of luxury and sophistication, the campaign will feature international models dressed in specially produced couture outfits and accessories whose design inspiration comes from the mall itself - or rather, the mall's facade which aims to light up the building once it is up. Closer to the day of the mall's opening, ads will also run in the local newspapers.

The mall is owned by a joint venture (JV) between Singapore-listed CapitaLand and Hong Kong's Sun Hung Kai Properties.

'Our new marketing campaign reflects our vision to be a world-class retail destination that will bring a truly unique retail experience to shoppers,' said Soon Su Lin, chief executive of the JV company. 'Even though Ion Orchard is still under construction, we are happy to be adding to the vibrancy of Orchard Road, and look forward to delighting shoppers in the near future.'

The mall also unveiled four-metre high hoardings last week at the site.

The campaign account was won by marketing communications agency DDB after its contest against six agencies.

'I think Ion Orchard will light up Orchard Road in a bold and fashionable way,' said David Tang, chief executive of DDB Group Singapore. 'The campaign will have to be just as bold and fashionable.'

Ion Orchard is part of a retail-cum-residential development located at the heart of Orchard Road. When opened in end-2008, the mall will offer some 400 retail, F&B and entertainment stores. Marketing for the retail space has already begun, BT understands.

Private Equity Prefers China

Source : The Business Times, December 10, 2007

61% of respondents to KPMG survey of 119 funds have assets in China

China is, and will continue to remain, the market of choice for private equity investors in Asia, says the latest report from KPMG - although Singapore is set to remain a firm favourite.





















KPMG's survey this year of 119 private equity funds across the region, titled Private Equity: Implications for Economic Growth in Asia Pacific, saw 61 per cent of respondents saying that they have assets in China.

Coming in second was India - with 37 per cent of respondents saying that they have assets there - followed by Australia and Singapore with 29 per cent, Taiwan with 28 per cent and Japan with 21 per cent.

The survey's least penetrated markets were Vietnam with 10 per cent, the Philippines with 8 per cent and Mongolia with 3 per cent.

KPMG also asked private equity firms to project five years out into the future. In this respect, China was still their prime target market - with an even higher proportion, 74 per cent, saying that they expected to have assets in the country.

India became far more popular with the extended time frame, with 63 per cent. Thirty-eight per cent picked Taiwan, 37 per cent chose Australia and 34 per cent picked Singapore.

'What is significant is that even with the rise of China and India, Singapore should remain attractive as an investment destination,' said Diana Koh, head of the KPMG Private Equity Group in Singapore, noting that even more respondents indicated that they would target Singapore in the future.

Five years on, private equity funds were also likely to diversify their risks - looking at pan-regional investments, rather than those focused on a single country.

In terms of sectors, consumer markets were likely to overtake financial services, telecommunications and media as a key target sector - with a quarter of the respondents saying that they would invest in this sector in five years' time.

Other sectors which were expected to dominate in the next five years include environmental technologies, health care, telecommunications, media and technology.

Ms Koh observed: 'The growing wealth and personal disposal income of the middle class has elevated interest in personal consumption in markets like mainland China and India. Market players are also seeing a bright future for environment technologies amid escalating concerns about sustainable development and global warming.'

Overall, the attractiveness of Asia has increased as an investment location for private equity funds. In 2006, total private funds under management across the region were valued at US$158 billion, up 30 per cent from 2005.

Private equity funds in the region also raised US$32.9 billion in new capital last year - up 39 per cent from 2005, and five times the total just four years ago. Deal volumes jumped 79 per cent in 2006, with a total of 1,495 transactions completed and average deal size was up by 8 per cent to US$41.3 million.

And it is the region's economic growth - particularly that of China and India - that was cited as the key factor driving this interest. Almost all respondents said that the economic potential here was the main attraction, far above other factors such as favourable pricing or dealflow. Eighty-three per cent said that they expected to see deal sizes increase in the next two years.

The growth of private equity in Asia has also had a positive effect in driving economic gains across the region. KPMG's report suggested that private equity is fulfilling an important development function in mentoring entrepreneurs and mid and late-stage managements about operational best practices, transparency and corporate governance, and achieving regional and global competitiveness.

However, with the growth of private equity globally comes growing criticism. KPMG noted that there had been a growing perception that private equity firms saddled their acquisitions with heavy debt.

But respondents in this survey said that leverage was being adopted prudently in Asia and there was an appropriate balance between equity and debt. This could indicate that the US sub-prime crisis would have less of an impact in Asia than elsewhere in the world where deals have been more highly leveraged, the report noted.

STB Approves Sale Of Farrer Court

Source : The Business Times, December 10, 2007

The Strata Titles Board (STB) has given the go-ahead for the sale of Farrer Court to a CapitaLand-led consortium.

New look in 2009: CapitaLand wants to turn the site into a 36-storey condominium with about 1,500 apartments

At a price tag of $1.34 billion, it is the largest amount ever fetched for a collective sale. The approval was granted last Saturday.

The consortium - comprising CapitaLand, Hotel Properties and US-based Wachovia Development Corporation - said in June that they would pay a record-setting $1.34 billion for the 618-unit development.

This beat the reserve price of $1.2 billion but is still lower than the owners' asking price of $1.5 billion.

Farrer Court owners had upped their reserve price from $700 million to $840 million at the start of the year, and then increased it to $1.2 billion in March.

The unit land cost to the developers for the leasehold District 10 site works out to $762 to $783 psf of potential gross floor area.

BT understands that owners of two units objected to the sale, on grounds that the price was not high enough.

The privatised HUDC estate has 618 existing apartments of two sizes - 1,615 sq ft and 1,453 sq ft - and their owners will get $2.238 million and $2.122 million per unit, respectively. Based on the apartments' existing strata areas, the proceeds to owners work out to $1,386 psf and $1,460 psf, respectively.

Credo Real Estate brokered the sale, and law firm Rodyk & Davidson represented the majority owners.

CapitaLand wants to turn the site into a new 36-storey condominium with about 1,500 apartments, likely to be ready for launch in the first half of 2009.

Beach Road Could Be Next Prime Hot Spot

Source : The Straits Times, Dec 9, 2007

District, set for a snazzy makeover, boasts a good mix of shophouses and strata-titled commercial and residential units on the market for the average investor

FORGET the Central Business District. Property investors priced out of prime zones but still hunting for a good buy should look to downtown's upcoming hot spot - the Beach Road, Ophir-Rochor district.

This hotchpotch of an area - with old shophouses dotting its landscape, juxtaposed with towering modern office blocks - is set for a snazzy makeover, as announced by the Government this week.

Already, property experts have identified strong potential upside for properties in the district.

Minister of State for National Development Grace Fu said it would be 'an extension of Bugis', complementing the Marina Bay financial district.

Although most major buildings, including The Gateway, Shaw Towers and the Bugis Junction office tower, are owned by single developers, there is a good mix of shophouses and strata-titled commercial and residential units on the market for the average investor.

The 101, Premier Centre and The Plaza, for example, are all strata-titled properties with a mix of commercial and residential units.

One shop owner, Mr Thomas Tan, who purchased a 1,300 sq ft unit on the ground floor of The 101 for $1.4 million - or $1,077 per sq ft (psf) - in April, told The Sunday Times he was glad he had taken the bold move to buy earlier this year.

The same unit now costs more than $2 million - or $1,539 psf - on the market, said the 61-year-old retiree.

Over at The Plaza, residential units are currently priced at around $933 to $1,222 psf.

While Singapore's property bull run seems to be taking a breather, prices in the Beach Road, Ophir-Rochor area are likely to stay strong and move upwards in the long run with new developments, said Savills Singapore's director of business development and marketing, Mr Ku Swee Yong.

Beach Road already has its own crown jewel in South Beach - an eco-friendly, $2.5 billion mixed project developed by a City Developments consortium. By 2012, South Beach will boast two towers of up to 45 storeys, two luxury hotels, service apartments and conserved military buildings of the old Beach Road camp.

On Thursday, the Government said it would release one more 2.74ha plot - between Rochor and Ophir Roads, surrounding Parkview Square - as a multi-use 'white site' next year, yielding 495 hotel rooms and 139,740 sq m of commercial space.

CBRE Research executive director Li Hiaw Ho said the new projects would complement each other and add much vibrancy to the area.

'A mini-Raffles City on the white site is likely to do very well,' added Mr Ku.

Shophouses are now particularly attractive, especially those facing the new plot, he said.

Currently, trendy eateries and drinking spots occupy shop houses along Haji Lane and Tan Quee Lan Street.

The area, with its proximity to Bugis Junction, has, in recent years, developed into a fashionable hang-out famed for good food and cheap beer.

Shophouses in the area have been going for $800 to $1,000 psf, and other surrounding commercial units have been sold for about $1,600 psf, said Mr Ku.

Considering that just across the street, Suntec is commanding up to $2,500 psf, there is much potential for capital values of properties in the area to appreciate.

Still, before that can happen, certain parts of the district have to be 'spruced up' and polished, added Mr Ku.

Some small commercial buildings, shophouses and independent hotels there are old and shoddy and will need facelifts to match the area's new trendy image.

Although the area does not command Grade A rents or tenants, it still gets a good mix of quality tenants with occupancy rates at a high 95 per cent, Savills director of commercial services June Chua said.

Office rents are now in the range of $9 to $11 psf a month, up from $4 to $5 psf more than a year ago. This translates into good rental yields for owners.

Mr James Smith, managing director of a media company based at the Evershine & Century Complex, is one tenant who has had his rent doubled in the last six months, and he may consider investing.

While the latest news will likely translate into higher rents in the future, Mr Smith says the upside is that more quality offices will sprout in the area, and this will have a good 'trickle-down effect'.

'This district will remain attractive, especially to us, as it's a creative hub with lots of knowledge-driven businesses and schools in the vicinity,' he said. 'It's got a good vibe.'

Mr Tan recalled that the old Beach Road, in the 1950s to 1960s, was 'the' entertainment hub, with good food from the old Satay Club, and two cinema houses lining the road.

'Perhaps in the next decade, the hustle and bustle of the old Beach Road will be revived and it will regain its old glory,' he said.

Rents For State-Owned Homes Rise

Source : The Business Times, December 10, 2007

Now, you too can live like the colonial sahibs of old, as long as you are prepared to make the highest offer for monthly rental in an open bid.













But be warned, rents of homes under the Singapore Land Authority's (SLA) first bidding exercise held recently, increased by between 40 to 230 per cent over previous rents.

Before the open bidding system, the allocation of homes was done through a balloting exercise or on a first-come-first-serve basis.

But in October and November, SLA piloted the new open bidding system of allocating homes to make the process fairer and more transparent with five homes awarded so far. One of these, a bungalow on a 2,687 sq m site at King Albert Park, also set a new benchmark rent of $23,222 a month for a state-owned residential property.

On the new system, SLA deputy director of land lease private Teo Cher Hian said: 'This way, market forces decide the rental that can be fetched for the state properties.'

The new system appears to be popular with 84 bids received for the first five properties. Of these bidders, 64.3 per cent were locals, with companies and foreigners making up 22.6 per cent and 13.1 per cent of the bids respectively.

Mr Teo also said that many of the bids were higher than the guide rents set by SLA.

Although the widely held perception is that these state-owned properties are cheap to rent, SLA says that guide rents are determined by an independent valuer based on the size, condition, location and proposed tenure of each property.

The properties are also let in their existing condition, usually unfurnished with rents starting as low as $400 per month for a small flat. Enhancement of these properties is also not a primary objective as some of these units sit on sites that could eventually be redeveloped.

SLA has a total stock of 2,360 homes comprising landed and non-landed properties, representing about 19 per cent of the total estimated gross floor area of state properties it manages.

SLA's rental homes have an occupancy rate of about 91 per cent. But existing tenants are usually allowed to directly renew their leases although the rents may be increased.

In its last financial year (April 1, 2006 - March 31, 2007) SLA says that its residential rental revenue was $78 million, up 2.6 per cent or $2 million from the previous year. SLA added that rents increased by an average of 5 per cent in this period with the highest increase of 23 per cent recorded for just one property.

Previously, rents for apartments ranged between $400-$3,800. Terrace, semi-detached and bungalow rents ranged between $600-$3,333, $800- $11,500, and $1,100- $23,222 respectively.

But the impact of the new bidding system to SLA's rental revenue is, however, not likely to show any immediate significant increase, as so few of these properties actually come up for rent. For the first half 2008, SLA expects only about 36 homes to be made available for rent - upon being vacated - with six homes expected in January followed by seven in February and six in March.

Those interested in bidding for these can submit their bids to SLA at a stipulated time and date. The bidding period will be six days. More details will be available on SLA's website www.spio.sla.gov.sg from Dec 14.

But do take note that for a bid to qualify, the bidder's average monthly income has to generally be at least three times the monthly rental bid so only those earning over $60,000 a month need bother looking at those grand old black and white bungalows.

Want To Rent This? Make A Bid For It

Source : The Straits Times, Dec 9, 2007

New allocation system for select state-owned homes expected to cut long waiting lists

RENTERS who have long hankered after that state-owned black-and-white colonial bungalow but are put off by the long waiting list can now bid for their dream home.

NOT ALL SLA UNITS available for rent will come under the new bidding scheme; for a start, properties that have a two-year tenure and are in popular locations will be selected. -- PHOTO: COURTESY OF SINGAPORE LAND AUTHORITY

State landlord Singapore Land Authority (SLA) said it is opening up its properties for bidding to make their allocation more transparent.

Currently, tenants check SLA's portal www.spio.sla.gov.sg for information on available properties and then register their interest with SLA-appointed agents.

There is usually a long waiting list for these properties as demand is high. State properties can be 5 to 50 per cent cheaper than properties in the private market.

Renters have said that getting one is like winning the lottery - a tenant is selected either on a first-come, first-served basis or through a balloting exercise when a property is released.

Under the new scheme, anyone interested in these properties will be invited to view them during open houses. They then have up to one week to submit a private bid to the SLA. Bidding will close the following Friday and results will be announced the same day.

The new system will allow these buildings to be secured within a week or so of their being made available.

All in, SLA has 2,360 units available for rent and the occupancy rate is 91 per cent. However, not all of them will come under the bidding scheme.

An SLA spokesman said the new method 'encourages a fairer allocation process'. The bidding system also allows market forces to decide the value of the properties, ensuring a 'more accurate market value'.

At least 36 houses in popular locations - ranging from terraced and semi-detached houses to bungalows - will be open for bidding in the first half of next year.

Mr Kevin Barrios, 29, a postgraduate student from the United States due to start work in Singapore, expressed concern that the new procedure will drive up rents. He pays $700 for a one-bedroom apartment in the Portsdown Road area.

But Mr Eric Cheng, executive director of property agency HSR Property Group, said the bidding system is fairer.

He said many of his clients faced months, or even years, of waiting for such properties to become available.

'If someone really needs a house and is willing to pay for it, it's fair that he should get it,' said Mr Cheng.

SLA held a pilot bidding exercise for five of its properties last month and Belgian pilot Bernard Latierre was one of the successful bidders.

The price he paid - $6,550 a month for a semi-detached house in Seletar with a land area of 738 sq m - is reasonable, he said.

He had waited more than eight months for it. 'It's near my children's school, has lush greenery and lovely architecture. We wouldn't have got to live here if not for this new bidding system,' he said.

SLA said properties that have a two-year tenure and are in popular locations will be selected for bidding. Wherever possible, SLA will also allow existing tenants to renew their tenancies directly, provided the rental is adjusted to the market rate.

jcheam@sph.com.sg



List of estates and price range

The SLA manages more than 2,300 residential state properties and has a 91 per cent occupancy rate.

Range of properties:

# Flat/Apartment - 1,090 units; rental from $400-$3,800

# Terrace - 340 units; rental from $600-$3,333

# Semi-detached - 390 units; rental from $800-$11,500

# Bungalow - 540 units; rental from $1,100-$23,222

Some of their locations:

# Alexandra Park

# Seletar Airbase

# Telok Blangah

# Scotts Road

# Malcolm Park

# Medway Park

# Goodwood Hill

# Bukit Timah

# Woodleigh Park

Most of the black-and-white bungalows are in Sembawang, Alexandra Park and Adams Park.

The next list of properties available for rental will be on the SLA portal, www.spio.sla.gov.sg, from Dec 14.

They include a bungalow in Hyderabad Road, three two-room apartments in Clemenceau Avenue North and a two-storey bungalow in Maidstone Road.

En Bloc Deals Top $13b But Pace Is Slowing

Source : The Business Times, December 10, 2007

Sales in H2 account for only $2.8b as price gap between owners, developers surfaces

It was the best of times, it was the worst of times.













With 82 en bloc deals worth $10.49 billion transacted in the first-half, and just 27 sites worth $2.81 billion transacted in the second-half so far, '2007 has been a 'tale of two halves' for the collective sales market,' says CB Richard Ellis executive director Jeremy Lake.

Nonetheless, the year- to-date tally for 2007 - 109 deals done at $13.3 billion - is a whopping jump from the 79 deals amounting to $8.2 billion transacted for the whole of last year.

'A price gap (between what owners were asking and what developers were prepared to pay) that was not there between January to June this year began to surface in July, so owners' price expectations had overshot, and this was compounded by the sub-prime crisis. By September/Octo-ber, developers took a back seat when it came to bidding for land,' Mr Lake said.

As for next year, CBRE's view is that the total value of en bloc sales for 2008 may not be as high as this year's all-time record.

A major highlight on the collective sale calendar this year was the introduction of new legislation in October which put in place more processes and safeguards to ensure the entire en bloc process is more transparent for all owners.

This led to a rush to sign collective sale agreements before the onset of the legislation - everything otherwise would be unwound and the process have to be restarted under the new law. As a result there was a flurry of en bloc sale tenders launched between September and November.

However, in the longer term, the new rules and procedures - which include how sales committees are formed and how they conduct their business - mean it could take a longer time to launch collective sale sites for sale.

As for next year, CBRE reckons 'developers will still remain interested in acquiring development sites, although they are likely to be much more selective and focus on acquiring reasonably-priced sites in good locations'.

Industry observers also predict the pace at which developers acquire more collective sale sites will be a function of how well their residential projects sell.

The top buyers of collective sale sites so far this year have been companies linked to banker Wee Cho Yaw (UOL Group, Kheng Leong, United Industrial Corp and Singapore Land), which collectively bought six collective sale sites for a total of $1.6 billion.

This was followed by Malaysian tycoon Quek Leng Chan's GuocoLand, which bought three sites (Leedon Heights, Palm Beach Garden in the East Coast area and Toho Garden at Yio Chu Kang Road) for a combined $972.5 million.

Property giant CapitaLand was in third position, with stakes in three sites (Char Yong Gardens, Gillman Heights and Farrer Court) purchased for a combined $953 million.

Up-and-coming property player, Bravo Building Construction, snapped up $824.5 million worth of en bloc sales deals.

The Kwek family's listed City Developments and privately-held Hong Leong Holdings have picked up a total of $672 million of collective sale sites.

Other sizeable buyers this year include Hotel Properties (about $640 million) and Lippo Group and its listed unit Overseas Union Enterprise ($681 million).

Property magnate Ng Teng Fong's Far East Organization has invested in about $400 million of collective sale sites so far this year, after buying close to $1 billion worth of such properties last year.

CBRE's analysis also shows that a total of 142 collective sale launches have been advertised so far this year, of which about half or 69 sites have been sold. The other 40 deals struck this year involved either sites launched prior to 2007 or sites whose launches were not advertised.