《联合早报》Jan 09, 2008
密驼路(Middle Road)一栋办公楼建筑打算转手，预示价格约为2300万元。
这座位于密驼路33号的办公大楼，共有五层楼，包括停车场设施在内。办公楼目前有两个租户，都是教育集团。两个租户会分别在今年6月和7月迁出。
密驼路俗称海南一街，靠近武吉士(Bugis)地铁站。办公楼占地3749平方英尺，可建筑楼面大约是1万6954平方英尺，地契租约是999年。
负责销售这个项目的高力国际(Colliers)将邀请有兴趣的买家提呈标价，截止日期是1月31日。
高力国际投资销售部主管何永裕透露，目前已收到4至5个询问，主要来自本地和海外的机构投资者。
他指出，目前这一带的类似单位的“续约”租金，介于每平方英尺7元至7.50元之间，由于中央商业区的租金高涨，同时，这两三年来市场相信依然面对办公楼供应不足的情况，因此他相信，96年的历史将重演，越来越多的公司会搬迁到这些中央商业区外围（fringe)的办公楼。
何永裕说，目前其实已出现这样的趋势，一些觉得中央商业区租金太高的公司，已开始搬迁到中央商业区外围的地区，如丹戎巴葛、密驼路、美芝路等，一些公司甚至搬迁到樟宜和裕廊的商业园，因为租金相对便宜许多。
据了解，有意脱售这个产业的卖家，是一名本地投资者。在2003年的发展总蓝图下，这个地段的容积率是4.2，最高可建达6层楼的商用建筑。
何永裕接受本报询问时也指出，若以较符合经济原理的角度来看，投资者应该不会将这栋少过十年的建筑拆除重建。他相信地段能吸引有意将单位出租，以收取租金的海外或本地投资者，或是打算自己使用这些单位的企业。
何永裕也相信，当城市发展(CDL)、迪拜政府旗下投资公司Istithmar及美国的Elad集团组成的财团所发展的美芝路大型综合商业项目竣工后，将能带动这个地区的商业活力。目前，附近的其他商用建筑还包括白沙浮广场、桥北商业大厦和首轮中心（Premier Centre)等。
Wednesday, January 9, 2008
万礼路两地段拍卖
《联合早报》Jan 09, 2008
与此同时，两幅万礼路（Mandai Road）一带的重新发展私人住宅地段，将通过拍卖的形式出售。这两幅地皮拥有999年地契（从1884年10月算起）。
分别位于明碹路（Meng Suan Road)20至28号，以及43至56号的两幅地段，土地面积分别是2万1066平方英尺和3万1043平方英尺。较小的地段上目前有9间单层的排屋，较大的43至56号的地段上有14间单层的排屋，但这两幅地段都不“包空”出售。
负责拍卖这两幅地皮的高力国际拍卖师黄黎明在接受本报询问时指出，两幅地皮的预示价格分别是530万元和780万元，以尺价来算，大约是容积率每平方英尺2.50元，（包括发展费在内）。
黄黎明说：“成功的买家能在较小的地皮上发展一排10间，每间大约1938平方英尺的排屋，角落头的单位面积可达约2583平方英尺。较大幅的地段能容纳9间差不多同等面积的排屋，以及四间每间约2583平方英尺的半独立式洋房。
根据2003年的发展蓝图，这个地段可发展不超过三层楼的混合有地住宅项目。
黄黎明指出，在2008年上半年的政府售地计划中，只有两幅有地住宅地皮，能容纳约144个单位。新加坡土的永久地契和999年地契的地皮供应非常有限，对发展商和投资者来说，这两幅面积颇大、供发展有地住宅的地皮应该会具有吸引力。
新加坡旅游局去年11月宣布，把富有丰富绿色遗产的万礼，发展为适合全家大小游玩、设有住宿设施的自然休闲旅游区。拟议发展的地段占地30多公顷。
黄黎明认为，这将为这个地段增添活力和加强吸引力。拍卖活动1月30日于安国酒店（Amara Hotel)内举行。
与此同时，两幅万礼路（Mandai Road）一带的重新发展私人住宅地段，将通过拍卖的形式出售。这两幅地皮拥有999年地契（从1884年10月算起）。
分别位于明碹路（Meng Suan Road)20至28号，以及43至56号的两幅地段，土地面积分别是2万1066平方英尺和3万1043平方英尺。较小的地段上目前有9间单层的排屋，较大的43至56号的地段上有14间单层的排屋，但这两幅地段都不“包空”出售。
负责拍卖这两幅地皮的高力国际拍卖师黄黎明在接受本报询问时指出，两幅地皮的预示价格分别是530万元和780万元，以尺价来算，大约是容积率每平方英尺2.50元，（包括发展费在内）。
黄黎明说：“成功的买家能在较小的地皮上发展一排10间，每间大约1938平方英尺的排屋，角落头的单位面积可达约2583平方英尺。较大幅的地段能容纳9间差不多同等面积的排屋，以及四间每间约2583平方英尺的半独立式洋房。
根据2003年的发展蓝图，这个地段可发展不超过三层楼的混合有地住宅项目。
黄黎明指出，在2008年上半年的政府售地计划中，只有两幅有地住宅地皮，能容纳约144个单位。新加坡土的永久地契和999年地契的地皮供应非常有限，对发展商和投资者来说，这两幅面积颇大、供发展有地住宅的地皮应该会具有吸引力。
新加坡旅游局去年11月宣布，把富有丰富绿色遗产的万礼，发展为适合全家大小游玩、设有住宿设施的自然休闲旅游区。拟议发展的地段占地30多公顷。
黄黎明认为，这将为这个地段增添活力和加强吸引力。拍卖活动1月30日于安国酒店（Amara Hotel)内举行。
恒茂Link(THM)Holdings 以3110万元买下万源园集体出售项目
《联合早报》Jan 09, 2008
新加坡恒茂企业（Link(THM)Holdings)以约3110万元，买下荷兰路一带的万源园（Ban Guan Park)集体出售项目。
恒茂企业是通过其独资子公司恒茂Prestige Homes同每名业主达成私下协议，买下这个占地超过3万2900平方英尺的永久地契项目。
这个项目共有18个分层地契，包括9间商店和9个住宅单位，集团同业主经过约两年的协商后，才在去年12月，以约3110万元买下这个项目。若加上约900万元的发展费，收购尺价大约是容积率每平方英尺870元。
在过去十年内，万源园有几回尝试集体出售，但都由于价格、搬迁日期和公平与否等问题谈不拢，而最终都没有成功。
恒茂企业董事陈恒茂说，2005年底集团尝试同各别单位的业主协商，了解他们的需求，最终这些业主分别同意将单位和商店卖给恒茂企业。最后一个单位会在2008年6月底迁出。
集团打算将地段重新发展成拥有20个豪华精品住宅单位，单位将包括两层楼的半独立式洋房（每个单位的可销售面积约为4300平方英尺），单位也将包括游泳池、阁楼和地下室。项目估计会在2008年第三季展开，并在2011年初竣工。
2001年创立的恒茂企业，原经营服装时尚业务，拥有本地和区域制造和分销手提袋的执照和零售店面。在2005年初也进军精品房地产发展领域，主要发展黄金地段的有地房产。
新加坡恒茂企业（Link(THM)Holdings)以约3110万元，买下荷兰路一带的万源园（Ban Guan Park)集体出售项目。
恒茂企业是通过其独资子公司恒茂Prestige Homes同每名业主达成私下协议，买下这个占地超过3万2900平方英尺的永久地契项目。
这个项目共有18个分层地契，包括9间商店和9个住宅单位，集团同业主经过约两年的协商后，才在去年12月，以约3110万元买下这个项目。若加上约900万元的发展费，收购尺价大约是容积率每平方英尺870元。
在过去十年内，万源园有几回尝试集体出售，但都由于价格、搬迁日期和公平与否等问题谈不拢，而最终都没有成功。
恒茂企业董事陈恒茂说，2005年底集团尝试同各别单位的业主协商，了解他们的需求，最终这些业主分别同意将单位和商店卖给恒茂企业。最后一个单位会在2008年6月底迁出。
集团打算将地段重新发展成拥有20个豪华精品住宅单位，单位将包括两层楼的半独立式洋房（每个单位的可销售面积约为4300平方英尺），单位也将包括游泳池、阁楼和地下室。项目估计会在2008年第三季展开，并在2011年初竣工。
2001年创立的恒茂企业，原经营服装时尚业务，拥有本地和区域制造和分销手提袋的执照和零售店面。在2005年初也进军精品房地产发展领域，主要发展黄金地段的有地房产。
嘉德CapitaLand将全面收购雅诗阁 Ascott Group
《联合早报》Jan 9, 2008
新加坡嘉德置地（CapitaLand）的全资子公司Somerset Capital将以每股1.73元现金全面收购嘉德置地所未持有的雅诗阁集团（Ascott Group）股票，并将其私有化。
每股1.73元现金的收购价比雅诗阁上星期的闭市价高出43％，也比它过去一个月的成交量加权平均价高出41.8％。以1.73元计算，雅诗阁的市值为28亿元。
嘉德置地目前通过三家全资子公司，分别为Somerset Capital、Somerset Land和Areca Investment，持有雅诗阁的66.53％股权。这项收购计划不包括雅诗阁公寓信托（Ascott Residence Trust）。
嘉德置地昨天告表示，将通过银行贷款和集团及其子公司的内部资源来资助这一回的收购计划。
雅诗阁将私有化
嘉德置地在文告中解释将雅诗阁私有化的原因时指出，环球服务公寓市场的竞争越来越激烈，雅诗阁有必要巩固它在国际市场的领先地位，并加速在主要市场里的增长。不过，若雅诗阁继续上市，它将面对挂牌和遵循（compliance）的需求，这会限制它运用嘉德置地所能带来的资本、资源和商机的伸缩性。
嘉德置地一直在其住宅和综合用途发展项目里包括服务公寓，并为雅诗阁提供很多商机。不过，由于雅诗阁是家上市公司，这些商机都必须被列为“有相关利益人士”（interested person）的交易，间接影响了工程项目的进展。
嘉德置地表示，雅诗阁的业务今后将能够全面融入嘉德置地集团，允许嘉德置地更有效地在集团内部署资金和人力资源，以把握本身为综合房地产发展商的竞争优势。嘉德置地今后在管理和部署其住宅发展项目为销售单位、企业租赁、或服务公寓时，也能按各市场的需要和情况，迅速地作出调整。
此外，身为上市公司，雅诗阁也有上市、遵循条例和其他的相关开支。私有化后，雅诗阁与嘉德置地的其他非上市子公司将能够分享服务和资源，从而带来成本效益。与此同时，嘉德置地和雅诗阁也能全面综合双方的基金和房地产投资信托（REIT）业务，以争取营运效益和节省开支。
嘉德置地集团总裁廖文良说：“这次的收购计划将使嘉德置地成为一家最国际化的房地产公司、以及在亚洲的领先房地产投资信托和房地产基金经理。嘉德置地一向通过建立整体的房地产价值链和有效的资本商业模式来为股东取得显著的价值，雅诗阁在增长时也采取了同样的策略。雅诗阁在私有化后，这个策略将取得进一步的进展。”
“雅诗阁私有化后，嘉德置地也将能够更有效地在集团内部署资金和人力资源，允许集团和其策略性商业单位更有好地综合它们的资源和专长，以在环球房地产市场里开拓新商机。”
嘉德置地、雅诗阁集团和雅诗阁公寓信托的股票昨天全日暂停交易。嘉德置地的股价去年全年略增1％，雅诗阁集团的股价同期则下跌了24％。
新加坡嘉德置地（CapitaLand）的全资子公司Somerset Capital将以每股1.73元现金全面收购嘉德置地所未持有的雅诗阁集团（Ascott Group）股票，并将其私有化。
每股1.73元现金的收购价比雅诗阁上星期的闭市价高出43％，也比它过去一个月的成交量加权平均价高出41.8％。以1.73元计算，雅诗阁的市值为28亿元。
嘉德置地目前通过三家全资子公司，分别为Somerset Capital、Somerset Land和Areca Investment，持有雅诗阁的66.53％股权。这项收购计划不包括雅诗阁公寓信托（Ascott Residence Trust）。
嘉德置地昨天告表示，将通过银行贷款和集团及其子公司的内部资源来资助这一回的收购计划。
雅诗阁将私有化
嘉德置地在文告中解释将雅诗阁私有化的原因时指出，环球服务公寓市场的竞争越来越激烈，雅诗阁有必要巩固它在国际市场的领先地位，并加速在主要市场里的增长。不过，若雅诗阁继续上市，它将面对挂牌和遵循（compliance）的需求，这会限制它运用嘉德置地所能带来的资本、资源和商机的伸缩性。
嘉德置地一直在其住宅和综合用途发展项目里包括服务公寓，并为雅诗阁提供很多商机。不过，由于雅诗阁是家上市公司，这些商机都必须被列为“有相关利益人士”（interested person）的交易，间接影响了工程项目的进展。
嘉德置地表示，雅诗阁的业务今后将能够全面融入嘉德置地集团，允许嘉德置地更有效地在集团内部署资金和人力资源，以把握本身为综合房地产发展商的竞争优势。嘉德置地今后在管理和部署其住宅发展项目为销售单位、企业租赁、或服务公寓时，也能按各市场的需要和情况，迅速地作出调整。
此外，身为上市公司，雅诗阁也有上市、遵循条例和其他的相关开支。私有化后，雅诗阁与嘉德置地的其他非上市子公司将能够分享服务和资源，从而带来成本效益。与此同时，嘉德置地和雅诗阁也能全面综合双方的基金和房地产投资信托（REIT）业务，以争取营运效益和节省开支。
嘉德置地集团总裁廖文良说：“这次的收购计划将使嘉德置地成为一家最国际化的房地产公司、以及在亚洲的领先房地产投资信托和房地产基金经理。嘉德置地一向通过建立整体的房地产价值链和有效的资本商业模式来为股东取得显著的价值，雅诗阁在增长时也采取了同样的策略。雅诗阁在私有化后，这个策略将取得进一步的进展。”
“雅诗阁私有化后，嘉德置地也将能够更有效地在集团内部署资金和人力资源，允许集团和其策略性商业单位更有好地综合它们的资源和专长，以在环球房地产市场里开拓新商机。”
嘉德置地、雅诗阁集团和雅诗阁公寓信托的股票昨天全日暂停交易。嘉德置地的股价去年全年略增1％，雅诗阁集团的股价同期则下跌了24％。
总值10亿元 吉宝濒水公寓由和合承建
《联合早报》Jan 9, 2008
吉宝置业(Keppel Land)把濒水共管公寓项目——Reflections at Keppel Bay总值10亿元的主要建筑承包工程，颁给本地老字号建筑公司和合(Woh Hup)。这相信是本地历来最大宗的私宅建筑合约。
昨天举行动土仪式，预计在2013年之前建成的Reflections，由美国建筑大师林贝斯金(Daniel Libeskind)操刀，设计犹如“从水中升起灯火”。
由于项目的设计弯曲奇特，具挑战性，而吉宝置业又指定使用名顶级材料，如德国知名品牌Miele，Hansgrohe Axor，Duravit Starck和Kaldewei的装置，和合（私人）有限公司副主席兼项目主管杨添荣表示，建筑成本要比一般私宅建筑费用来得高。
这是和合成立80年以来所承包的最大建筑工程。公司曾负责兴建前红灯码头(Clifford Pier)、海洋大厦(Ocean Building)等，目前手上的项目则包括地铁环线、城市雅居(City Square Residences)和滨海湾居(Marina Bay Residences)等。
Reflections的1129个单位分布在六栋高24层楼至41层楼的玻璃高楼，以及11栋高6至8层的公寓楼。整幅地段的海岸线长达750公尺，最小的公寓单位是面积约732平方英尺的套间公寓（studio apartment），最大的则是一间面积达1万2900平方英尺、位于其中一栋大楼41楼的五卧房式超级顶层豪宅（super penthouse)。
由美国建筑大师林贝斯金(Daniel Libeskind)操刀的Reflections at Keppel Bay，设计弯曲奇特，非常具挑战性，主要建筑承包工程总值10亿元。
620个单位已售出
去年4月推出市场的Reflections，至今已售出了620个单位，平均售价接近每平方英尺2000元，最高售价则超过每平方英尺2700元。集团计划在今年内推出其余的单位。
吉宝置业新加坡私宅部主管陈佩强对本地房地产市场充满信心，看好在第二阶段推出的单位将取得每平方英尺2000元以上的售价。
他说：“虽然今年将是大众化和中档私宅表现的一年，但高档私宅的需求依然不减。何况，不管在世界任何地方，濒水住宅是极为稀有的，而物以稀为贵。我们把最好的都留到最后，超级顶层豪宅也还未出售，相信将能取得更高的价格。”
至于何时将推出第二阶段的单位，陈佩强透露，将视市场情况而定，相信会在今年第一季推出Marina Bay Suites的221个三和四个卧房式单位单位，以及集团位于武吉知马和经禧路(Cairnhill Road）一带的较小型项目之后才上架。
他也指出，第一阶段的买家当中有三分之二是外国人，过去几个月还继续接获海外买家的询问，显示他们依然对本地房地产感兴趣。
陈佩强表示，过去一年来本地成功更吸引越来越多来自欧美的投资者。Reflections第一阶段推出的单位，有至少5％的买家来自欧美等国家，集团因此计划在推出第二阶段单位时，到欧美和中东市场举行展销会。
除了海外买家外，吉宝置业在去年7月把56个单位，以2亿8600万元出售给科威特金融公司，成交价介于每平英尺2000元至2500元。陈佩强表示，如果价格合理，第二阶段推出的单位不排除出售给外国基金。
另一方面，吉宝企业高级执行董事兼集团财务董事张顺和昨天透露，集团预定在本月19日为吉宝湾滨海俱乐部(Marina @ Keppel Bay)举行开幕。集团刚在上个星期为连接吉宝岛（Keppel Island）和本岛的吉宝湾桥（Keppel Bay Bridge），举行启用仪式。
吉宝置业(Keppel Land)把濒水共管公寓项目——Reflections at Keppel Bay总值10亿元的主要建筑承包工程，颁给本地老字号建筑公司和合(Woh Hup)。这相信是本地历来最大宗的私宅建筑合约。
昨天举行动土仪式，预计在2013年之前建成的Reflections，由美国建筑大师林贝斯金(Daniel Libeskind)操刀，设计犹如“从水中升起灯火”。
由于项目的设计弯曲奇特，具挑战性，而吉宝置业又指定使用名顶级材料，如德国知名品牌Miele，Hansgrohe Axor，Duravit Starck和Kaldewei的装置，和合（私人）有限公司副主席兼项目主管杨添荣表示，建筑成本要比一般私宅建筑费用来得高。
这是和合成立80年以来所承包的最大建筑工程。公司曾负责兴建前红灯码头(Clifford Pier)、海洋大厦(Ocean Building)等，目前手上的项目则包括地铁环线、城市雅居(City Square Residences)和滨海湾居(Marina Bay Residences)等。
Reflections的1129个单位分布在六栋高24层楼至41层楼的玻璃高楼，以及11栋高6至8层的公寓楼。整幅地段的海岸线长达750公尺，最小的公寓单位是面积约732平方英尺的套间公寓（studio apartment），最大的则是一间面积达1万2900平方英尺、位于其中一栋大楼41楼的五卧房式超级顶层豪宅（super penthouse)。
由美国建筑大师林贝斯金(Daniel Libeskind)操刀的Reflections at Keppel Bay，设计弯曲奇特，非常具挑战性，主要建筑承包工程总值10亿元。620个单位已售出
去年4月推出市场的Reflections，至今已售出了620个单位，平均售价接近每平方英尺2000元，最高售价则超过每平方英尺2700元。集团计划在今年内推出其余的单位。
吉宝置业新加坡私宅部主管陈佩强对本地房地产市场充满信心，看好在第二阶段推出的单位将取得每平方英尺2000元以上的售价。
他说：“虽然今年将是大众化和中档私宅表现的一年，但高档私宅的需求依然不减。何况，不管在世界任何地方，濒水住宅是极为稀有的，而物以稀为贵。我们把最好的都留到最后，超级顶层豪宅也还未出售，相信将能取得更高的价格。”
至于何时将推出第二阶段的单位，陈佩强透露，将视市场情况而定，相信会在今年第一季推出Marina Bay Suites的221个三和四个卧房式单位单位，以及集团位于武吉知马和经禧路(Cairnhill Road）一带的较小型项目之后才上架。
他也指出，第一阶段的买家当中有三分之二是外国人，过去几个月还继续接获海外买家的询问，显示他们依然对本地房地产感兴趣。
陈佩强表示，过去一年来本地成功更吸引越来越多来自欧美的投资者。Reflections第一阶段推出的单位，有至少5％的买家来自欧美等国家，集团因此计划在推出第二阶段单位时，到欧美和中东市场举行展销会。
除了海外买家外，吉宝置业在去年7月把56个单位，以2亿8600万元出售给科威特金融公司，成交价介于每平英尺2000元至2500元。陈佩强表示，如果价格合理，第二阶段推出的单位不排除出售给外国基金。
另一方面，吉宝企业高级执行董事兼集团财务董事张顺和昨天透露，集团预定在本月19日为吉宝湾滨海俱乐部(Marina @ Keppel Bay)举行开幕。集团刚在上个星期为连接吉宝岛（Keppel Island）和本岛的吉宝湾桥（Keppel Bay Bridge），举行启用仪式。
Need Cash? Rent Out Your HDB Flat
Source : The Electric New Paper, January 08, 2008
HDB's new rules enable owners to generate income from their units The downside? You may have to move in with your relatives
Pssst. Over here.
Can you use some spare cash?
What? You want to know the interest rate?
Don't worry. There is no interest.
Payment terms? There is also no need to repay. That's because it is your money anyway.
Have you guessed?
I am talking about taking money out of your CPF account before age 55.
As you know, this has always been impossible. Until now.
AH BENG NEEDS CASH
I will explain how it is done with the story of Goh Ah Beng.
He is 30 years old and urgently needs $3,500 to repay loan sharks.
But he is not exactly broke.
He and his wife, Ah Soh, own a 4-room flat and also have $5,000 in their CPF ordinary accounts.
Ah Beng goes to the nearest CPF office and asks: 'Can my wife and I please withdraw $3,500 from our CPF accounts? We desperately need the money.'
The CPF lady is sympathetic but tells him the rule: 'You must wait until you are 55 before withdrawing your CPF money.'
Ah Beng is only 30. He can't wait another 25 years. He needs the money now.
Fortunately, there is a way:
Step 1: Each month, Ah Beng pays his $1,200 mortgage from his ordinary account (CPF).
Step 2: Under HDB's new rules, he qualifies to rent out his entire flat.
Step 3: He finds a tenant who pays $1,200 monthly rent into Ah Beng's bank account (cash).
The effect is that $1,200 per month is converted from CPF money into cash. Simple.
Safety Valve: Are the new HDB rental rules a loophole (bad) or a safety valve (good)?
I would say the latter. It offers a way for the truly needy to access their CPF money.
Of course, it requires moving out of one's home, which is not fun or easy.
But that is as it should be. The inconvenience assures that people will not dip into their CPF balances frivolously.
By the way, you don't want the rent expense for your new place to eat into your rental income.
The best is to live with relatives and pay nothing.
That is what most people do. HDB tells me that 58 per cent of people who rent out their flats move in with relatives.
History: Until recently, you had to live abroad to get permission to rent your entire flat.
In March 2005 it got easier. The minimum occupancy was set at 5 years for flat owners without an outstanding HDB loan and 10 years for all others.
In March 2007, the rules were relaxed further by de-linking rental from the home owner's loan status, so it was no longer necessary to pay down the loan in order to rent out the flat.
Now there are two categories:
(i) If you purchased from HDB directly OR from the open market with a CPF housing grant, you can rent your flat after living in it for 5 years.
(ii) If you purchased from the open market (without a CPF housing grant), you can rent your flat after living in it for 3 years.
It is an important change and makes more than three quarters of the 830,000 HDB flats eligible to be rented.
--------------------------------------------------------------------------------
Cash kickbacks
THERE is another way to convert CPF money into cash.
You may have seen newspaper ads like, 'CPF highest returns, up to 7 %' and 'CPF Investment. Best returns, 7 %.'
But when I called, the financial advisers hardly mentioned investments.
What they really sell is a way for you to withdraw cash from your CPF account.
It works like this: Using your CPF money, you buy a unit trust.
The 3 per cent commission is included in the price. Then, the agent returns 0.75 per cent of the commission to you in cash.
They encourage you to buy and sell your unit trust frequently, like every two weeks.
It brings monthly commission and cash to 6 and 1.5 per cent.
If you trade $50,000 of unit trusts, the monthly cash received is $750(.015 x $50,000).
Not bad.
Two problems: First, it is expensive. The annual interest cost comes to 54 per cent (.06 - .015) x 12 months.
Second, it is not permitted by the CPF Board.
In fact, if you turn in the firm that sold you this deal, the CPF Board will require it to deposit into your CPF account an amount equal to the cash kickback that it paid you earlier.
The CPF Board tells me it is not really the Board's intent to offer a bounty on these firms.
But still, the money is good. It could make for a lot of whistle-blowers.
--------------------------------------------------------------------------------
RENTALS FOR HDB FLATS
3-room: $1,200
4-room: $1,400
5-room: $1,600
Executive: $1,700
Note: Figures are average monthly rents from 1 Jul to 31 Sep 2007.
Source: Housing Development Board
HDB's new rules enable owners to generate income from their units The downside? You may have to move in with your relatives
Pssst. Over here.
Can you use some spare cash?
What? You want to know the interest rate?
Don't worry. There is no interest.
Payment terms? There is also no need to repay. That's because it is your money anyway.
Have you guessed?
I am talking about taking money out of your CPF account before age 55.
As you know, this has always been impossible. Until now.
AH BENG NEEDS CASH
I will explain how it is done with the story of Goh Ah Beng.
He is 30 years old and urgently needs $3,500 to repay loan sharks.
But he is not exactly broke.
He and his wife, Ah Soh, own a 4-room flat and also have $5,000 in their CPF ordinary accounts.
Ah Beng goes to the nearest CPF office and asks: 'Can my wife and I please withdraw $3,500 from our CPF accounts? We desperately need the money.'
The CPF lady is sympathetic but tells him the rule: 'You must wait until you are 55 before withdrawing your CPF money.'
Ah Beng is only 30. He can't wait another 25 years. He needs the money now.
Fortunately, there is a way:
Step 1: Each month, Ah Beng pays his $1,200 mortgage from his ordinary account (CPF).
Step 2: Under HDB's new rules, he qualifies to rent out his entire flat.
Step 3: He finds a tenant who pays $1,200 monthly rent into Ah Beng's bank account (cash).
The effect is that $1,200 per month is converted from CPF money into cash. Simple.
Safety Valve: Are the new HDB rental rules a loophole (bad) or a safety valve (good)?
I would say the latter. It offers a way for the truly needy to access their CPF money.
Of course, it requires moving out of one's home, which is not fun or easy.
But that is as it should be. The inconvenience assures that people will not dip into their CPF balances frivolously.
By the way, you don't want the rent expense for your new place to eat into your rental income.
The best is to live with relatives and pay nothing.
That is what most people do. HDB tells me that 58 per cent of people who rent out their flats move in with relatives.
History: Until recently, you had to live abroad to get permission to rent your entire flat.
In March 2005 it got easier. The minimum occupancy was set at 5 years for flat owners without an outstanding HDB loan and 10 years for all others.
In March 2007, the rules were relaxed further by de-linking rental from the home owner's loan status, so it was no longer necessary to pay down the loan in order to rent out the flat.
Now there are two categories:
(i) If you purchased from HDB directly OR from the open market with a CPF housing grant, you can rent your flat after living in it for 5 years.
(ii) If you purchased from the open market (without a CPF housing grant), you can rent your flat after living in it for 3 years.
It is an important change and makes more than three quarters of the 830,000 HDB flats eligible to be rented.
--------------------------------------------------------------------------------
Cash kickbacks
THERE is another way to convert CPF money into cash.
You may have seen newspaper ads like, 'CPF highest returns, up to 7 %' and 'CPF Investment. Best returns, 7 %.'
But when I called, the financial advisers hardly mentioned investments.
What they really sell is a way for you to withdraw cash from your CPF account.
It works like this: Using your CPF money, you buy a unit trust.
The 3 per cent commission is included in the price. Then, the agent returns 0.75 per cent of the commission to you in cash.
They encourage you to buy and sell your unit trust frequently, like every two weeks.
It brings monthly commission and cash to 6 and 1.5 per cent.
If you trade $50,000 of unit trusts, the monthly cash received is $750(.015 x $50,000).
Not bad.
Two problems: First, it is expensive. The annual interest cost comes to 54 per cent (.06 - .015) x 12 months.
Second, it is not permitted by the CPF Board.
In fact, if you turn in the firm that sold you this deal, the CPF Board will require it to deposit into your CPF account an amount equal to the cash kickback that it paid you earlier.
The CPF Board tells me it is not really the Board's intent to offer a bounty on these firms.
But still, the money is good. It could make for a lot of whistle-blowers.
--------------------------------------------------------------------------------
RENTALS FOR HDB FLATS
3-room: $1,200
4-room: $1,400
5-room: $1,600
Executive: $1,700
Note: Figures are average monthly rents from 1 Jul to 31 Sep 2007.
Source: Housing Development Board
Ascott On A Roll After Buyout Offer
Source : TODAY, Wednesday, January 9, 2008
Shares of Ascott Group surged 41.3 per cent yesterday after its parent CapitaLand offered to buy out minority owners and take the luxury residences operator private.
The shares rose 50 cents to $1.71, just 2 cents below the $1.73 that CapitaLand, South-east Asia’s largest property firm, is dangling before Ascott shareholders in an unconditional cash offer that values the luxury residences operator at $2.8 billion.
Nearly 63 million Ascott shares changed hands yesterday, making it the most actively traded stock.
Ascott shareholders are likely to accept CapitaLand’s offer, said a UBS research note yesterday. “We believe the offer is not unreasonable and is 20 per cent above the three-month volume-weighted average price of $1.44 a share. Given the fragmented shareholding and volatile market outlook, we think the probability of investors rejecting the bid and a higher offer is low.”
According to analysts, the developer sees value in Ascott - whose shares fell more than 24 per cent last year - that has not been recognised by the market.
CapitaLand shares fell 33 cents, or 5.3 per cent, to $5.92 yesterday amid concerns that it may be overpaying for its 66.5 per cent unit.
Shares of Ascott Group surged 41.3 per cent yesterday after its parent CapitaLand offered to buy out minority owners and take the luxury residences operator private.
The shares rose 50 cents to $1.71, just 2 cents below the $1.73 that CapitaLand, South-east Asia’s largest property firm, is dangling before Ascott shareholders in an unconditional cash offer that values the luxury residences operator at $2.8 billion.
Nearly 63 million Ascott shares changed hands yesterday, making it the most actively traded stock.
Ascott shareholders are likely to accept CapitaLand’s offer, said a UBS research note yesterday. “We believe the offer is not unreasonable and is 20 per cent above the three-month volume-weighted average price of $1.44 a share. Given the fragmented shareholding and volatile market outlook, we think the probability of investors rejecting the bid and a higher offer is low.”
According to analysts, the developer sees value in Ascott - whose shares fell more than 24 per cent last year - that has not been recognised by the market.
CapitaLand shares fell 33 cents, or 5.3 per cent, to $5.92 yesterday amid concerns that it may be overpaying for its 66.5 per cent unit.
Never A Better Time For Home Loans?
Source : TODAY, Wednesday, January 9, 2008
With rising inflation and escalating asset prices, prospective homebuyers should take advantage of relatively low interest rates to finance their purchases, according to UOB’s head of loans Kevin Lam.Mr Lam said the economy had developed into a “negative interest-rate situation”, where asset prices rise very quickly while interest rates remained low.
“With interest rates at 3 to 4 per cent, inflation loosely predicted to be 4 to 5 per cent and mortgage rates at 3.5 to 4 per cent, homeowners enjoy effectively negative interest rates,” he said.
UOB has launched a loan product called the FlexiMortgage that enables borrowers to use an overdraft facility as a low-interest credit line.
With rising inflation and escalating asset prices, prospective homebuyers should take advantage of relatively low interest rates to finance their purchases, according to UOB’s head of loans Kevin Lam.Mr Lam said the economy had developed into a “negative interest-rate situation”, where asset prices rise very quickly while interest rates remained low.
“With interest rates at 3 to 4 per cent, inflation loosely predicted to be 4 to 5 per cent and mortgage rates at 3.5 to 4 per cent, homeowners enjoy effectively negative interest rates,” he said.
UOB has launched a loan product called the FlexiMortgage that enables borrowers to use an overdraft facility as a low-interest credit line.
Lian Beng, LaSalle Buy Singapore Site For $148m
Source : The Business Times, January 9, 2008
LaSalle Investment Management and Lian Beng Group have bought a residential site in Singapore's prime shopping district for $148 million (US$104 million), the construction firm said on Wednesday.
Lian Beng, which has 10 per cent equity in the Emerald Hill site off Orchard Road, said in a statement that it is also the main contractor for the development.
The latest construction contract, worth about $34 million, brings Lian Beng's orderbook to about $608 million. -- REUTERS
LaSalle Investment Management and Lian Beng Group have bought a residential site in Singapore's prime shopping district for $148 million (US$104 million), the construction firm said on Wednesday.
Lian Beng, which has 10 per cent equity in the Emerald Hill site off Orchard Road, said in a statement that it is also the main contractor for the development.
The latest construction contract, worth about $34 million, brings Lian Beng's orderbook to about $608 million. -- REUTERS
Ascott Shares Surge On News Of Offer
Source : The Business Times, January 9, 2008
CapitaLand falls 5.3%; analysts say deal is positive for offeror in longer term
NEWS of CapitaLand’s offer to buy out minority owners of its subsidiary Ascott Group sent Ascott’s shares surging yesterday, as CapitaLand’s stock price dropped.
CapitaLand shares shed 33 cents or 5.3 per cent to close at $5.92 on news that the property giant could pay up to $989.5 million to acquire all remaining shares in Ascott. CapitaLand now owns 66.5 per cent of the company.
By contrast, Ascott’s shares gained 50 cents or 41.3 per cent to close at $1.71 yesterday. CapitaLand is offering $1.73 for each Ascott share.
Ascott’s shares rose because the offer is attractive to the company’s minority shareholders, analysts said. But CapitaLand’s shares took a beating because there is uncertainty over whether the deal is equally positive for CapitaLand.
‘We believe the deal looks very positive for Ascott shareholders,’ said Credit Suisse analysts Tricia Song and Teo Leng Chye. ‘For CapitaLand, it is slightly dilutive for pro forma earnings.’
Analysts were also split on whether the CapitaLand’s offer is on the pricey side. At least some think that the offer does not look cheap.
CapitaLand’s offer of $1.73 per share is 43 per cent higher than the last-traded price of Ascott’s stock before the offer was made and represents a premium of about 145 per cent to Ascott’s unaudited net asset value per share at Sept 30, 2007.
Other analysts, however, reckoned that CapitaLand’s offer is ‘fair’.
‘We believe the offer price of $1.73 share is reasonable and falls within the lower band of the fair value range for Ascott Group of $1.72-$2.29 a share,’ UBS Investment Research said in a note.
The deal is likely to be positive for CapitaLand in the longer term, some analysts said.
‘We view the move positively from a strategic standpoint,’ said Deutsche Bank analysts Gregory Lui and Elaine Khoo.
The privatisation of Ascott will allow CapitaLand to expand its service residence business more aggressively and is in line with its long-term plan to grow its fund management business in the long run, some analysts said.
CapitaLand falls 5.3%; analysts say deal is positive for offeror in longer term
NEWS of CapitaLand’s offer to buy out minority owners of its subsidiary Ascott Group sent Ascott’s shares surging yesterday, as CapitaLand’s stock price dropped.
CapitaLand shares shed 33 cents or 5.3 per cent to close at $5.92 on news that the property giant could pay up to $989.5 million to acquire all remaining shares in Ascott. CapitaLand now owns 66.5 per cent of the company.
By contrast, Ascott’s shares gained 50 cents or 41.3 per cent to close at $1.71 yesterday. CapitaLand is offering $1.73 for each Ascott share.
Ascott’s shares rose because the offer is attractive to the company’s minority shareholders, analysts said. But CapitaLand’s shares took a beating because there is uncertainty over whether the deal is equally positive for CapitaLand.
‘We believe the deal looks very positive for Ascott shareholders,’ said Credit Suisse analysts Tricia Song and Teo Leng Chye. ‘For CapitaLand, it is slightly dilutive for pro forma earnings.’
Analysts were also split on whether the CapitaLand’s offer is on the pricey side. At least some think that the offer does not look cheap.
CapitaLand’s offer of $1.73 per share is 43 per cent higher than the last-traded price of Ascott’s stock before the offer was made and represents a premium of about 145 per cent to Ascott’s unaudited net asset value per share at Sept 30, 2007.
Other analysts, however, reckoned that CapitaLand’s offer is ‘fair’.
‘We believe the offer price of $1.73 share is reasonable and falls within the lower band of the fair value range for Ascott Group of $1.72-$2.29 a share,’ UBS Investment Research said in a note.
The deal is likely to be positive for CapitaLand in the longer term, some analysts said.
‘We view the move positively from a strategic standpoint,’ said Deutsche Bank analysts Gregory Lui and Elaine Khoo.
The privatisation of Ascott will allow CapitaLand to expand its service residence business more aggressively and is in line with its long-term plan to grow its fund management business in the long run, some analysts said.
Middle Road Office Block Up For Sale
Source : The Straits Times, Jan 9, 2008
A FIVE-storey office building in the Beach Road district has been launched for sale amid a severe shortage of office space in Singapore.
The freehold building is the former P H building at 33 Middle Road and has an indicative price of $23 million, said marketing agent Colliers International.
'We forsee strong interest from investors who are attracted by the opportunity posed by the current tight office supply in the market,' said the firm's executive director of investment sales, Mr Ho Eng Joo.
The property is owned by a trading company, added Mr Ho.
The site is near the upcoming mega mixed-development South Beach, developed by a City Developments-led consortium, and within a short stroll to the City Hall and Bugis MRT stations.
It sits on an area of 3,749 sq ft and has a gross floor area of 16,954 sq ft. The site is zoned for commercial use with a gross plot ratio of 4.2 and can be built up to six storeys.
The property has showroom space on the ground floor and offices from the second to fifth storeys. It also has carpark facilities.
Mr Ho said rents of similar grade office space along Middle Road are priced from $7 per sq ft (psf) to $7.50 psf.
The building is fully tenanted, but all the tenancies are due to expire by the third quarter of this year, said Mr Ho.
A FIVE-storey office building in the Beach Road district has been launched for sale amid a severe shortage of office space in Singapore.
The freehold building is the former P H building at 33 Middle Road and has an indicative price of $23 million, said marketing agent Colliers International.
'We forsee strong interest from investors who are attracted by the opportunity posed by the current tight office supply in the market,' said the firm's executive director of investment sales, Mr Ho Eng Joo.
The property is owned by a trading company, added Mr Ho.
The site is near the upcoming mega mixed-development South Beach, developed by a City Developments-led consortium, and within a short stroll to the City Hall and Bugis MRT stations.
It sits on an area of 3,749 sq ft and has a gross floor area of 16,954 sq ft. The site is zoned for commercial use with a gross plot ratio of 4.2 and can be built up to six storeys.
The property has showroom space on the ground floor and offices from the second to fifth storeys. It also has carpark facilities.
Mr Ho said rents of similar grade office space along Middle Road are priced from $7 per sq ft (psf) to $7.50 psf.
The building is fully tenanted, but all the tenancies are due to expire by the third quarter of this year, said Mr Ho.
Queenstown Flat Sold For Record $890k
Source : The Straits Times, Jan 9, 2008
21st-storey executive flat in Mei Ling Street was bought for $300,000 in 1992
THE brief for the property agent was simple: Find an HDB flat with great views and near an MRT station. Top floors only - and, it appears, never mind the price.
The owners, Mr David Ho Khoi Seng, 72, and wife Judy, 64, had paid just over $300,000 for the 1,614 sq ft flat, which has four bedrooms, a living room and a study, in 1992. -- ST PHOTO: MUGILAN RAJASEGERAN
Two intense days of door-knocking and a record $890,000 later, the buyer has his dream home - and the most expensive Housing Board flat in the country.
For his money, he gets a spacious 21st-storey executive flat in Queenstown, with expansive views towards Sentosa and leafy Mount Faber on one side and Queenstown Stadium on the other.
The 13-year-old flat in Block 150, Mei Ling Street, is just a few minutes away from Queenstown MRT via a sheltered walkway, and a swimming complex is just around the corner.
The owners, Mr David Ho Khoi Seng, 72, and wife Judy, 64, had paid just over $300,000 for the 1,614 sq ft flat, which has four bedrooms, a living room and a study, in 1992.
Mr Ho, who runs a stationery shop, said he had no intention of selling when PropNex agent David See and his son came knocking last Thursday.
The couple tried to deter the buyers - believed to be an elderly couple who own private property - by asking for what they felt was a ridiculous $900,000.
'We thought $900,000 was too high a price for anyone, but the buyers seemed pretty desperate to find a suitable flat,' said Mr Ho.
Mr See, 47, said he roped in his 20-year-old son Wilson for the quest to give him some work experience before he starts university later this year.
But knocking on doors, he said, is something he would only do for 'genuine buyers'.
'It was a challenge. It's not easy to get people to sell high-floor units at this time,' he added.
Demand had sent HDB resale prices up 17.4 per cent last year, the highest in a decade, but executive flats in coveted districts near the central city like Queenstown and Bukit Merah have been extra hot.
The old record for an HDB flat was $780,000 - also for an executive flat in Mei Ling Street - achieved last November.
Five other such flats in Mei Ling Street changed hands between November and December, ranging in price from $728,000 to $765,000.
Median resale prices of executive flats in Queenstown hit $719,000 between July and September last year, a jump from $609,000 in the previous quarter. This type of flat in Queenstown commanded $120,000 in cash over their valuation in the same period.
A five-roomer in Kim Tian Place in nearby Bukit Merah changed hands for $720,000 last June.
With prices of resale HDB flats expected to climb further, the latest deal has prompted some people to ask when a public housing unit will cross the $1 million mark.
Agents reckon that is a way off yet.
Mr See thinks his record deal was more a reflection of the buyers' eagerness, rather than market sentiment.
Meanwhile, Mr Ho and his wife will live with their 35-year-old son in his Siglap terrace house until they find a suitable home.
When they move, Mr Ho will have to give up a pastime of his: Watching S-League football matches at Queenstown Stadium from the balcony of his Mei Ling Street flat's master bedroom.
$1m flat? Not yet
THE latest deal has some people asking when a public housing unit will cross the $1 million mark.
Mr Eric Cheng, executive director of HSR Property group, said it was unlikely to happen in the next two years.
PropNex agent David See, the agent for the Mei Ling Street deal, thinks the record sale was more a reflection of the buyers' eagerness, rather than market sentiment.
21st-storey executive flat in Mei Ling Street was bought for $300,000 in 1992
THE brief for the property agent was simple: Find an HDB flat with great views and near an MRT station. Top floors only - and, it appears, never mind the price.
The owners, Mr David Ho Khoi Seng, 72, and wife Judy, 64, had paid just over $300,000 for the 1,614 sq ft flat, which has four bedrooms, a living room and a study, in 1992. -- ST PHOTO: MUGILAN RAJASEGERANTwo intense days of door-knocking and a record $890,000 later, the buyer has his dream home - and the most expensive Housing Board flat in the country.
For his money, he gets a spacious 21st-storey executive flat in Queenstown, with expansive views towards Sentosa and leafy Mount Faber on one side and Queenstown Stadium on the other.
The 13-year-old flat in Block 150, Mei Ling Street, is just a few minutes away from Queenstown MRT via a sheltered walkway, and a swimming complex is just around the corner.
The owners, Mr David Ho Khoi Seng, 72, and wife Judy, 64, had paid just over $300,000 for the 1,614 sq ft flat, which has four bedrooms, a living room and a study, in 1992.
Mr Ho, who runs a stationery shop, said he had no intention of selling when PropNex agent David See and his son came knocking last Thursday.
The couple tried to deter the buyers - believed to be an elderly couple who own private property - by asking for what they felt was a ridiculous $900,000.
'We thought $900,000 was too high a price for anyone, but the buyers seemed pretty desperate to find a suitable flat,' said Mr Ho.
Mr See, 47, said he roped in his 20-year-old son Wilson for the quest to give him some work experience before he starts university later this year.
But knocking on doors, he said, is something he would only do for 'genuine buyers'.
'It was a challenge. It's not easy to get people to sell high-floor units at this time,' he added.
Demand had sent HDB resale prices up 17.4 per cent last year, the highest in a decade, but executive flats in coveted districts near the central city like Queenstown and Bukit Merah have been extra hot.
The old record for an HDB flat was $780,000 - also for an executive flat in Mei Ling Street - achieved last November.
Five other such flats in Mei Ling Street changed hands between November and December, ranging in price from $728,000 to $765,000.
Median resale prices of executive flats in Queenstown hit $719,000 between July and September last year, a jump from $609,000 in the previous quarter. This type of flat in Queenstown commanded $120,000 in cash over their valuation in the same period.
A five-roomer in Kim Tian Place in nearby Bukit Merah changed hands for $720,000 last June.
With prices of resale HDB flats expected to climb further, the latest deal has prompted some people to ask when a public housing unit will cross the $1 million mark.
Agents reckon that is a way off yet.
Mr See thinks his record deal was more a reflection of the buyers' eagerness, rather than market sentiment.
Meanwhile, Mr Ho and his wife will live with their 35-year-old son in his Siglap terrace house until they find a suitable home.
When they move, Mr Ho will have to give up a pastime of his: Watching S-League football matches at Queenstown Stadium from the balcony of his Mei Ling Street flat's master bedroom.
$1m flat? Not yet
THE latest deal has some people asking when a public housing unit will cross the $1 million mark.
Mr Eric Cheng, executive director of HSR Property group, said it was unlikely to happen in the next two years.
PropNex agent David See, the agent for the Mei Ling Street deal, thinks the record sale was more a reflection of the buyers' eagerness, rather than market sentiment.
CapitaLand Shares Fall After News Of Offer For Ascott
Source : The Strait Times, Jan 9, 2008
IT WAS a tale of two share prices yesterday, after Monday night's surprise announcement that CapitaLand wanted to take The Ascott Group private.
The property giant's stock dropped by 5.3 per cent to $5.92, while Ascott shares rocketed 41.3 per cent to $1.71.
That price almost matched CapitaLand's offer of $1.73 a share for the 33.5 per cent of Ascott it does not already own. When the offer was announced, the price was 43 per cent ahead of Ascott's closing level on Monday of $1.21.
The move comes as property stocks in Singapore are being hit by fears of a possible United States recession. Mr Vikrant Pandey, an investment analyst at UOB Kay Hian Research, believes those jitters were the main reason behind yesterday's selldown on CapitaLand.
Bears were in the market on Monday but they did not have a chance to trade CapitaLand shares due to a trading halt, he said.
Other analysts, though, maintain the Ascott acquisition is partly to blame for CapitaLand's fall.
OCBC Investment Research analyst Winston Liew said the market 'could be looking for a more conservative growth strategy'.
'Some players think CapitaLand is overpaying but Ascott is in a sector that will continue to grow,' another analyst added.
A UBS report said Ascott shareholders were likely to accept the offer.
JPMorgan said the benefit to CapitaLand of the Ascott move lies in a tidying-up of its group structure.
CapitaLand will be acquiring a subsidiary that pursues a similar asset-light, real estate funds model and strategy at a time when the market is undervaluing the stock, JPMorgan said.
In a note yesterday, Mr Liew said CapitaLand's acquisition price was not cheap, as it represented a 145 per cent premium over Ascott's book value of 70.6 cents and about 17 times Ascott's earnings in the 2007 financial year. He asked: The key question is why?
One possibility is that it allows CapitaLand to use Ascott as a vehicle to park all its residential assets, including recent ones in China.
Mr Liew said Ascott would then eventually divest itself of its developments to Ascott Residence Trust, an investment trust holding service apartments and other real estate across Asia.
As for Ascott itself, the general offer is expected to strengthen further its market leadership in the service apartment business, said a Macquarie Securities report.
IT WAS a tale of two share prices yesterday, after Monday night's surprise announcement that CapitaLand wanted to take The Ascott Group private.
The property giant's stock dropped by 5.3 per cent to $5.92, while Ascott shares rocketed 41.3 per cent to $1.71.
That price almost matched CapitaLand's offer of $1.73 a share for the 33.5 per cent of Ascott it does not already own. When the offer was announced, the price was 43 per cent ahead of Ascott's closing level on Monday of $1.21.
The move comes as property stocks in Singapore are being hit by fears of a possible United States recession. Mr Vikrant Pandey, an investment analyst at UOB Kay Hian Research, believes those jitters were the main reason behind yesterday's selldown on CapitaLand.
Bears were in the market on Monday but they did not have a chance to trade CapitaLand shares due to a trading halt, he said.
Other analysts, though, maintain the Ascott acquisition is partly to blame for CapitaLand's fall.
OCBC Investment Research analyst Winston Liew said the market 'could be looking for a more conservative growth strategy'.
'Some players think CapitaLand is overpaying but Ascott is in a sector that will continue to grow,' another analyst added.
A UBS report said Ascott shareholders were likely to accept the offer.
JPMorgan said the benefit to CapitaLand of the Ascott move lies in a tidying-up of its group structure.
CapitaLand will be acquiring a subsidiary that pursues a similar asset-light, real estate funds model and strategy at a time when the market is undervaluing the stock, JPMorgan said.
In a note yesterday, Mr Liew said CapitaLand's acquisition price was not cheap, as it represented a 145 per cent premium over Ascott's book value of 70.6 cents and about 17 times Ascott's earnings in the 2007 financial year. He asked: The key question is why?
One possibility is that it allows CapitaLand to use Ascott as a vehicle to park all its residential assets, including recent ones in China.
Mr Liew said Ascott would then eventually divest itself of its developments to Ascott Residence Trust, an investment trust holding service apartments and other real estate across Asia.
As for Ascott itself, the general offer is expected to strengthen further its market leadership in the service apartment business, said a Macquarie Securities report.
Woh Hup Wins $1b Keppel Contract To Build Reflections
Source : The Strait Times, Jan 9, 2008
KEPPEL Corp and its property arm, Keppel Land (KepLand), yesterday said the main contract for its huge Reflections at Keppel Bay condominium - awarded to Woh Hup Holdings - is worth a whopping $1 billion.
It is the largest condo construction contract in Singapore for Keppel, as well as for Woh Hup, which was started 80 years ago.
The project will add to the strong growth momentum of the construction sector in Singapore, said Knight Frank director of research and consultancy Nicholas Mak.
Indeed, the news - announced at yesterday's ground-breaking ceremony for the condo - comes at a busy time for Singapore's construction sector. Costs have risen significantly and most contractors are fully booked in the months ahead.
Still, Woh Hup vice-chairman Yong Tiam Yoon said rising costs are manageable - made easier by the fact that the firm has reliable suppliers.
As for the 1,129-unit Reflections condo, he said the costs are higher due to the construction of curved structures.
The condo is set for completion before 2013, with 509 unsold units due to go on the market 'some time this year'.
The second phase will be priced higher as there will be units facing better directions, said Mr Augustine Tan, chief executive, Singapore residential for KepLand.
KEPPEL Corp and its property arm, Keppel Land (KepLand), yesterday said the main contract for its huge Reflections at Keppel Bay condominium - awarded to Woh Hup Holdings - is worth a whopping $1 billion.
It is the largest condo construction contract in Singapore for Keppel, as well as for Woh Hup, which was started 80 years ago.
The project will add to the strong growth momentum of the construction sector in Singapore, said Knight Frank director of research and consultancy Nicholas Mak.
Indeed, the news - announced at yesterday's ground-breaking ceremony for the condo - comes at a busy time for Singapore's construction sector. Costs have risen significantly and most contractors are fully booked in the months ahead.
Still, Woh Hup vice-chairman Yong Tiam Yoon said rising costs are manageable - made easier by the fact that the firm has reliable suppliers.
As for the 1,129-unit Reflections condo, he said the costs are higher due to the construction of curved structures.
The condo is set for completion before 2013, with 509 unsold units due to go on the market 'some time this year'.
The second phase will be priced higher as there will be units facing better directions, said Mr Augustine Tan, chief executive, Singapore residential for KepLand.
When US Sneezes, Asia Now Does Not Catch Cold
Source : The Business Times, January 9, 2008
THE axiom 'when the US sneezes, Asia catches cold' does not hold true any more.
Asian economies have become less dependent on the United States market, though not completely immune to its changes.
That, at least, was the consensus at the 6th Annual Business Outlook Forum, jointly organised by the Singapore Chinese Chamber of Commerce & Industry and The Business Times on Monday.
Benjamin Yeo, executive director and head of UBS Wealth Management Research, highlighted the growing importance of emerging markets like China against the declining export markets of the US.
Mr Yeo said: 'As far as Asian growth is concerned, we remain cautiously optimistic.'
He attributed his optimism to several factors including the increase in export diversification away from the US in Asia.
Currency strategist Idris Nizam analysed the possible directions of the US dollar versus the Singapore dollar and other Asian currencies like the Chinese yuan and the Malaysian ringgit.
Mr Nizam, director of foreign exchange research at UBS AG, said: 'In my view, global growth has peaked.'
He does not expect a recession in the US, but slower growth is likely.
Asian Property Equities fund manager Frankie Lee discussed the structural growth of the region and the fundamentals of domestic property.
He said that it is not too late to invest in Asia-Pacific property as valuation becomes favourable.
In fact, the timing now is as good as at any point in the past 18 months, Mr Lee said.
Vikram Khanna, associate editor of The Business Times, chaired the panel discussion that followed the analysts' speeches.
THE axiom 'when the US sneezes, Asia catches cold' does not hold true any more.
Asian economies have become less dependent on the United States market, though not completely immune to its changes.
That, at least, was the consensus at the 6th Annual Business Outlook Forum, jointly organised by the Singapore Chinese Chamber of Commerce & Industry and The Business Times on Monday.
Benjamin Yeo, executive director and head of UBS Wealth Management Research, highlighted the growing importance of emerging markets like China against the declining export markets of the US.
Mr Yeo said: 'As far as Asian growth is concerned, we remain cautiously optimistic.'
He attributed his optimism to several factors including the increase in export diversification away from the US in Asia.
Currency strategist Idris Nizam analysed the possible directions of the US dollar versus the Singapore dollar and other Asian currencies like the Chinese yuan and the Malaysian ringgit.
Mr Nizam, director of foreign exchange research at UBS AG, said: 'In my view, global growth has peaked.'
He does not expect a recession in the US, but slower growth is likely.
Asian Property Equities fund manager Frankie Lee discussed the structural growth of the region and the fundamentals of domestic property.
He said that it is not too late to invest in Asia-Pacific property as valuation becomes favourable.
In fact, the timing now is as good as at any point in the past 18 months, Mr Lee said.
Vikram Khanna, associate editor of The Business Times, chaired the panel discussion that followed the analysts' speeches.
US Headed For Worst Recession In A While: Jim Rogers
Source : The Business Times, January 9, 2008
(LONDON) The US economy is heading for a recession that may be the worst 'in a while' and investors should sell the dollar as global currencies weaken, investor Jim Rogers said.
'It's going to be one of the worst recessions we've had in a while because we had so many excesses going into it,' Mr Rogers, chairman of New York-based Rogers Holdings, said in a Bloomberg Television interview on Monday from Singapore.
'It's going to be bad for all of us as currencies come under more and more stress and we have more inflation in the world,' he said.
The US and UK governments have been 'lying' about inflation, Mr Rogers said, adding that he is selling their respective currencies.
The dollar dropped for a second straight year in 2007, falling 8.3 per cent on a trade-weighted basis as the collapse of the US sub-prime mortgage market prompted the US Federal Reserve to cut interest rates three times. Rising energy and food prices have pushed up inflation in Europe.
'I hope by the end of this year all of my assets will be out of the US dollar,' Mr Rogers said. 'The dollar is a currency that's terribly flawed and it's going to be under duress for many years to come.'
Mr Rogers said in a Nov 15 interview that investors should sell the dollar and that he expects to be rid of all his US currency assets this year. He reiterated that he is also buying the Chinese yuan and the Swiss franc as other currencies weaken.
Mr Rogers, who has been a commodity bull since 1999, said that agriculture may be the best investment among commodities in the event of a world recession.
'If you're worried about a recession, you might think about buying agricultural commodities,' Mr Rogers said. 'I suspect agriculture is going to do well no matter what happens to the world economy.'
Cotton, coffee and sugar may gain the most, he said, adding that he wouldn't buy crude oil after prices rose above US$100 a barrel last week, or industrial metals such as tin or lead because a slowing US economy would curb demand.
Mr Rogers said commodities will gain even if the dollar declines, because of supply shortages.
'All commodities are going to be in much shorter supply for another decade,' he said. 'So even if the dollar goes up, commodities are going to go higher.' - Bloomberg
(LONDON) The US economy is heading for a recession that may be the worst 'in a while' and investors should sell the dollar as global currencies weaken, investor Jim Rogers said.
'It's going to be one of the worst recessions we've had in a while because we had so many excesses going into it,' Mr Rogers, chairman of New York-based Rogers Holdings, said in a Bloomberg Television interview on Monday from Singapore.
'It's going to be bad for all of us as currencies come under more and more stress and we have more inflation in the world,' he said.
The US and UK governments have been 'lying' about inflation, Mr Rogers said, adding that he is selling their respective currencies.
The dollar dropped for a second straight year in 2007, falling 8.3 per cent on a trade-weighted basis as the collapse of the US sub-prime mortgage market prompted the US Federal Reserve to cut interest rates three times. Rising energy and food prices have pushed up inflation in Europe.
'I hope by the end of this year all of my assets will be out of the US dollar,' Mr Rogers said. 'The dollar is a currency that's terribly flawed and it's going to be under duress for many years to come.'
Mr Rogers said in a Nov 15 interview that investors should sell the dollar and that he expects to be rid of all his US currency assets this year. He reiterated that he is also buying the Chinese yuan and the Swiss franc as other currencies weaken.
Mr Rogers, who has been a commodity bull since 1999, said that agriculture may be the best investment among commodities in the event of a world recession.
'If you're worried about a recession, you might think about buying agricultural commodities,' Mr Rogers said. 'I suspect agriculture is going to do well no matter what happens to the world economy.'
Cotton, coffee and sugar may gain the most, he said, adding that he wouldn't buy crude oil after prices rose above US$100 a barrel last week, or industrial metals such as tin or lead because a slowing US economy would curb demand.
Mr Rogers said commodities will gain even if the dollar declines, because of supply shortages.
'All commodities are going to be in much shorter supply for another decade,' he said. 'So even if the dollar goes up, commodities are going to go higher.' - Bloomberg
Sub-Prime Woes Won't Hit Asia-Pac Growth: World Bank
Source : The Business Times, January 9, 2008
Developing countries robust enough to pull advanced economies along
EAST Asia and Pacific economies will be hardly deflected from their growth path this year by fallout from the US sub-prime mortgage crisis, the World Bank says in its latest Global Economic Prospects report published today.
It also maintains an upbeat tone about prospects for the global economy, arguing that developing country growth in Asia and elsewhere is robust enough to pull advanced economies along. This optimism echoes that expressed by the Organisation for Economic Cooperation and Development (OECD) last month in its latest Economic Outlook, and in the World Bank's East Asia and Pacific Update last November.
But the bank does acknowledge growing risks, such as that of a sudden collapse of the dollar or even the failure of a 'key' financial system. So far, the sub-prime crisis and related financial market distress have taken only a slight toll on the world economy, the latest report says.
Global growth slowed 'modestly' last year to 3.6 per cent from 3.9 per cent in 2006 and should decline gently again this year, to 3.3 per cent, it argues. 'World output should pick up in 2009, expanding by 3.6 per cent as the US economy regains momentum.'
GDP in East Asia and the Pacific is expected to grow about 10 per cent in 2007, with China set to grow by more than 11 per cent. Growth for the region should ease to 9.7 per cent in 2008 and 9.6 per cent by 2009.
'Effects from turmoil in world financial centres may be small in most economies in the region. Except in China, direct exposure of financial institutions in the region to mortgage-based securities or the sub-prime crisis is limited,' says the report.
Growth in South Asia edged down slightly in 2007 to 8.4 per cent, with industrial production and GDP growth driven by strong domestic demand. 'An expansion of credit, rising incomes, and strong worker remittances are buoying private consumption.'
Meanwhile, 'improvements in business sentiment along with rising corporate profits are providing a further boost', the World Bank says. Growth in Latin America should also ease only slightly this year while output is predicted to expand in 2008 in the Middle East and much of Africa, owing to high oil prices and to strong domestic demand.
'Overall, we expect developing country growth to moderate only somewhat over the next two years,' commented Uri Dadush, director of the World Bank's development prospects group.
'Strong import demand across the developing countries is helping to sustain global growth,' said Hans Timmer, manager of the global trends team in the development prospects group. 'As a result, and given a cheaper US dollar, American exports are expanding rapidly. This is helping to shrink the US current account deficit and contributing to a decline in global imbalances.'
The World Bank admits, however, that 'a much sharper US slowdown is a real risk that could weaken mid-term prospects in developing countries'. A US recession, or an excessive easing of US monetary policy could contribute to further sharp declines in the dollar, it notes.
'A weaker dollar would benefit developing countries with dollar debt but impose losses on those holding dollar-denominated assets. It would hurt the competitiveness of firms exporting to the US.
However, 'the main impact of a precipitous decline in the dollar would likely stem from the increased uncertainty and financial market volatility it would provoke'. Recent financial turbulence has shown how 'sudden and pervasive adjustments in financial markets can be', the report says.
'Because the dynamics of financial behaviour are inherently difficult to control, and new securitised instruments have made identifying the location or magnitude of underlying risk difficult, the possibility of a breakdown in a key financial institution or system cannot be fully discounted.'
To date, the report adds, 'strong fundamentals in developing countries have helped mitigate the slowdown in the US but in the case of a major disruption, adverse effects in emerging markets are unlikely to be avoided, which at some point would exacerbate the US slowdown'.
Developing countries robust enough to pull advanced economies along
EAST Asia and Pacific economies will be hardly deflected from their growth path this year by fallout from the US sub-prime mortgage crisis, the World Bank says in its latest Global Economic Prospects report published today.
It also maintains an upbeat tone about prospects for the global economy, arguing that developing country growth in Asia and elsewhere is robust enough to pull advanced economies along. This optimism echoes that expressed by the Organisation for Economic Cooperation and Development (OECD) last month in its latest Economic Outlook, and in the World Bank's East Asia and Pacific Update last November.
But the bank does acknowledge growing risks, such as that of a sudden collapse of the dollar or even the failure of a 'key' financial system. So far, the sub-prime crisis and related financial market distress have taken only a slight toll on the world economy, the latest report says.
Global growth slowed 'modestly' last year to 3.6 per cent from 3.9 per cent in 2006 and should decline gently again this year, to 3.3 per cent, it argues. 'World output should pick up in 2009, expanding by 3.6 per cent as the US economy regains momentum.'
GDP in East Asia and the Pacific is expected to grow about 10 per cent in 2007, with China set to grow by more than 11 per cent. Growth for the region should ease to 9.7 per cent in 2008 and 9.6 per cent by 2009.
'Effects from turmoil in world financial centres may be small in most economies in the region. Except in China, direct exposure of financial institutions in the region to mortgage-based securities or the sub-prime crisis is limited,' says the report.
Growth in South Asia edged down slightly in 2007 to 8.4 per cent, with industrial production and GDP growth driven by strong domestic demand. 'An expansion of credit, rising incomes, and strong worker remittances are buoying private consumption.'
Meanwhile, 'improvements in business sentiment along with rising corporate profits are providing a further boost', the World Bank says. Growth in Latin America should also ease only slightly this year while output is predicted to expand in 2008 in the Middle East and much of Africa, owing to high oil prices and to strong domestic demand.
'Overall, we expect developing country growth to moderate only somewhat over the next two years,' commented Uri Dadush, director of the World Bank's development prospects group.
'Strong import demand across the developing countries is helping to sustain global growth,' said Hans Timmer, manager of the global trends team in the development prospects group. 'As a result, and given a cheaper US dollar, American exports are expanding rapidly. This is helping to shrink the US current account deficit and contributing to a decline in global imbalances.'
The World Bank admits, however, that 'a much sharper US slowdown is a real risk that could weaken mid-term prospects in developing countries'. A US recession, or an excessive easing of US monetary policy could contribute to further sharp declines in the dollar, it notes.
'A weaker dollar would benefit developing countries with dollar debt but impose losses on those holding dollar-denominated assets. It would hurt the competitiveness of firms exporting to the US.
However, 'the main impact of a precipitous decline in the dollar would likely stem from the increased uncertainty and financial market volatility it would provoke'. Recent financial turbulence has shown how 'sudden and pervasive adjustments in financial markets can be', the report says.
'Because the dynamics of financial behaviour are inherently difficult to control, and new securitised instruments have made identifying the location or magnitude of underlying risk difficult, the possibility of a breakdown in a key financial institution or system cannot be fully discounted.'
To date, the report adds, 'strong fundamentals in developing countries have helped mitigate the slowdown in the US but in the case of a major disruption, adverse effects in emerging markets are unlikely to be avoided, which at some point would exacerbate the US slowdown'.
Woh Hup Wins $1b Keppel Land Contract
Source : The Business Times, January 9, 2008
WOH Hup has been awarded the $1 billion main contract for Keppel Land's Reflections at Keppel Bay. The 1,129-unit development will take about five years to build and is expected to be completed by 2013.
On the challenges facing the construction industry in the next few years, Woh Hup vice-chairman Yong Tiam Yoon said: 'We are lucky because we lined up our sub-contractors at the tender stage. We have been around a long time and have the support of sub-contractors and suppliers.'
The $1 billion main contract covers all major construction works including, piling, structural, mechanical and electrical, and architectural. It is Woh Hup's biggest-ever contract - but Mr Yong said the company, which is also working on the MRT Circle Line, has no problem with projects of this size.
Estimating that Reflections will require about 10,000 cubic metres of structural concrete per month, he said Woh Hup is already handling projects of close to this magnitude.
The first phase of Reflections, comprising 620 waterfront homes, has been sold out and the second phase is expected to be launched this year.
On the expected date of completion, a Keppel Land spokesman said that while the target is 2013 he expects the development will be completed sooner. The time-frame of construction is not long considering the size of the development, which has a gross floor area of 2.1 million sq ft and a site area of 8.4 hectares, he said.
WOH Hup has been awarded the $1 billion main contract for Keppel Land's Reflections at Keppel Bay. The 1,129-unit development will take about five years to build and is expected to be completed by 2013.
On the challenges facing the construction industry in the next few years, Woh Hup vice-chairman Yong Tiam Yoon said: 'We are lucky because we lined up our sub-contractors at the tender stage. We have been around a long time and have the support of sub-contractors and suppliers.'
The $1 billion main contract covers all major construction works including, piling, structural, mechanical and electrical, and architectural. It is Woh Hup's biggest-ever contract - but Mr Yong said the company, which is also working on the MRT Circle Line, has no problem with projects of this size.
Estimating that Reflections will require about 10,000 cubic metres of structural concrete per month, he said Woh Hup is already handling projects of close to this magnitude.
The first phase of Reflections, comprising 620 waterfront homes, has been sold out and the second phase is expected to be launched this year.
On the expected date of completion, a Keppel Land spokesman said that while the target is 2013 he expects the development will be completed sooner. The time-frame of construction is not long considering the size of the development, which has a gross floor area of 2.1 million sq ft and a site area of 8.4 hectares, he said.
UOB Launches Home Loan With An Overdraft Feature
Source : The Business Times, January 9, 2008
AMID the current negative interest rate environment, where inflation is rising faster than interest rates, United Overseas Bank (UOB) has launched a housing loan with an overdraft (OD) feature.
The OD facility gives customers the flexibility to invest, to reap potentially higher returns.
Kevin Lam, head of UOB's loans division, said he expects interest rates to remain stagnant for 2008. 'This year, I think interest rate will remain flat, with the general trend of softening, as we see some correlation with US interest rates,' he said.
The key three-month interbank rate stood at 1.81 per cent yesterday, after hovering between 2.4 and 3.4 per cent last year.
Inflation rate - as measured by the Consumer Price Index (CPI) - surged 4.2 per cent in November, compared with a year ago.
In this environment where asset prices are rising quickly and interest rates are low, consumers can capitalise on it by putting their money into other instruments or other uses, said Mr Lam. He added that asset inflation will probably remain for some time, and that asset prices will appreciate at a more modest level now, after having surged in the past few years.
The FlexiMortgage loan, launched recently, combines a conventional housing loan and an overdraft facility. Customers can decide on how much will go to paying the housing loan, and how much the OD will be.
For the housing loan component, the customer pays a normal monthly instalment, but for the OD component, customers service only the interest. The principal is not paid down in this component, and customers can decide when they want to pay the full sum of the principal.
The interest rate for this loan comes up higher than an average home loan interest rate, but Mr Lam said the bank is not competing on the basis of rates.
'We don't want to compete on interest rates since whatever rate you can come up with, a competitor will go lower,' he explained. 'We are moving away from that to redefine and create a new competitive advantage with this loan.'
In a typical home loan, wealth is locked in. 'If you want to take out your money, you must sell your place and downgrade your house for the extra cash,' said Mr Lam.
Another alternative is to go to the bank and take out an OD facility on the home. All that takes time and the legal processes can drag on for months, he explained.
However, with this loan, he said, the OD facility that comes with it can be used to tap business or investment opportunities quickly.
The OD facility currently has a floating rate of 4.25 per cent and follows UOB's prime rate of 5 per cent. If the prime rate moves up or down, the OD follows accordingly. The interest rate on the OD facility is comparable with those of other banks.
Mr Lam said he expects this loan to contribute 10-20 per cent to the bank's loan business this year. He said UOB did well last year in terms of market share and growth for loans.
UOB 'does not depend on deferred payment loans to grow its loan book', he said, dismissing perceptions that the bank has a large pipeline of deferred payment loans. 'Our business growth is in secondary market transactions,' said Mr Lam.
AMID the current negative interest rate environment, where inflation is rising faster than interest rates, United Overseas Bank (UOB) has launched a housing loan with an overdraft (OD) feature.
The OD facility gives customers the flexibility to invest, to reap potentially higher returns.
Kevin Lam, head of UOB's loans division, said he expects interest rates to remain stagnant for 2008. 'This year, I think interest rate will remain flat, with the general trend of softening, as we see some correlation with US interest rates,' he said.
The key three-month interbank rate stood at 1.81 per cent yesterday, after hovering between 2.4 and 3.4 per cent last year.
Inflation rate - as measured by the Consumer Price Index (CPI) - surged 4.2 per cent in November, compared with a year ago.
In this environment where asset prices are rising quickly and interest rates are low, consumers can capitalise on it by putting their money into other instruments or other uses, said Mr Lam. He added that asset inflation will probably remain for some time, and that asset prices will appreciate at a more modest level now, after having surged in the past few years.
The FlexiMortgage loan, launched recently, combines a conventional housing loan and an overdraft facility. Customers can decide on how much will go to paying the housing loan, and how much the OD will be.
For the housing loan component, the customer pays a normal monthly instalment, but for the OD component, customers service only the interest. The principal is not paid down in this component, and customers can decide when they want to pay the full sum of the principal.
The interest rate for this loan comes up higher than an average home loan interest rate, but Mr Lam said the bank is not competing on the basis of rates.
'We don't want to compete on interest rates since whatever rate you can come up with, a competitor will go lower,' he explained. 'We are moving away from that to redefine and create a new competitive advantage with this loan.'
In a typical home loan, wealth is locked in. 'If you want to take out your money, you must sell your place and downgrade your house for the extra cash,' said Mr Lam.
Another alternative is to go to the bank and take out an OD facility on the home. All that takes time and the legal processes can drag on for months, he explained.
However, with this loan, he said, the OD facility that comes with it can be used to tap business or investment opportunities quickly.
The OD facility currently has a floating rate of 4.25 per cent and follows UOB's prime rate of 5 per cent. If the prime rate moves up or down, the OD follows accordingly. The interest rate on the OD facility is comparable with those of other banks.
Mr Lam said he expects this loan to contribute 10-20 per cent to the bank's loan business this year. He said UOB did well last year in terms of market share and growth for loans.
UOB 'does not depend on deferred payment loans to grow its loan book', he said, dismissing perceptions that the bank has a large pipeline of deferred payment loans. 'Our business growth is in secondary market transactions,' said Mr Lam.
F&N Reveals $5m Parting Gift For Former CEO Han
Source : The Business Times, January 9, 2008
Accountant Nicky Tan paid $3m for brokering Temasek investment
After much to-ing and fro-ing, the fee for accountant Nicky Tan's role in getting Temasek Holdings to invest $900 million for a 14.9 per cent stake in Fraser & Neave has been settled at $3 million.
Mr Tan, who is on F&N's board and received $99,000 in director's fees, is said to have earlier billed $5 million for his work but several other F&N board members reportedly felt that the figure was too high. They reportedly offered to pay $1.25 million instead, which Mr Tan refused.
The final fee for Mr Tan was disclosed in F&N's latest annual report which was released this week.
The report also showed that former deputy chairman and chief executive Han Cheng Fong, who quit suddenly last October, was given a parting gift of $5.05 million in addition to his remuneration of $3.8 million.
Dr Han, who has since joined property tycoon Ng Teng Fong's Hong Kong- based Sino Land, however, lost out on nearly $1 million worth of gains on share options when he quit.
Chairman Lee Hsien Yang, who is currently also the company's caretaker pending the appointment of a new CEO, has also decided to leave the fee package for the board to shareholders to decide at the company's annual general meeting on Jan 31.
The company has proposed that the chairman be paid $1.25 million compared with $250,000 now. Mr Lee has decided to incorporate the $1 million fee he now gets into the chairman's package. The former SingTel head honcho also received another $150,000 in his capacity as non-executive chairman of F&N's property arm, Frasers Centrepoint.
The report also showed that former chairman Michael Fam, who retired on Oct 14 after 24 years with the group, received $2.33 million of which 77 per cent was his salary.
Group company secretary Anthony Cheong, who will be relinquishing his board seat to make way for more independent directors, was paid nearly $1.8 million, comprising salary of 31 per cent, 28 per cent in bonuses and 36.5 per cent in long-term incentives (largely share options).
Asia Pacific Breweries CEO Koh Poh Tiong was paid $3.77 million in 2007 - 32 per cent of which was salary, 62.5 per cent came by way of bonuses and 4.4 per cent in long-term incentives. F&N effectively owns 39 per cent of APB.
Centrepoint CEO Lim Ee Seng got $2.98 million of which 33.4 per cent was salary, 46.5 per cent was a bonus and 19.5 per cent was a long-term incentive.
The report also revealed some other nuggets, including the purchase of three condominium units at St Thomas Suites by director Stephen Lee and/or his associates for $21.98 million, and two units at the same condo by Nicky Tan and/or his associates for $22.59 million. Mr Lee also bought a unit at Soleil@Sinaran for $2.22 million. Dr Han and/or his associates bought two units at the same condo for $3.85 million.
F&N, which reported a 28 per cent increase in net earnings to a record $378 million on a 25 per cent jump in turnover to $4.7 billion for the financial year ended Sept 30, 2007, disclosed that it had unutilised tax losses carried forward of about $351.59 million last year compared with $444.55 million the previous year. Just over $200 million was the result of writedowns by the Chinese arm of Frasers Properties.
In his maiden annual report statement, chairman Lee thinks the outlook for the current financial year, is fraught with uncertainties arising from the US sub-prime mortgage issue and the high price of crude oil.
'The group will need to address the challenges of more cautious consumer spending and higher costs of doing business. However, economic growth in Asia is expected to continue albeit at a slower rate,' he said.
Accountant Nicky Tan paid $3m for brokering Temasek investment
After much to-ing and fro-ing, the fee for accountant Nicky Tan's role in getting Temasek Holdings to invest $900 million for a 14.9 per cent stake in Fraser & Neave has been settled at $3 million.
Mr Tan, who is on F&N's board and received $99,000 in director's fees, is said to have earlier billed $5 million for his work but several other F&N board members reportedly felt that the figure was too high. They reportedly offered to pay $1.25 million instead, which Mr Tan refused.
The final fee for Mr Tan was disclosed in F&N's latest annual report which was released this week.
The report also showed that former deputy chairman and chief executive Han Cheng Fong, who quit suddenly last October, was given a parting gift of $5.05 million in addition to his remuneration of $3.8 million.
Dr Han, who has since joined property tycoon Ng Teng Fong's Hong Kong- based Sino Land, however, lost out on nearly $1 million worth of gains on share options when he quit.
Chairman Lee Hsien Yang, who is currently also the company's caretaker pending the appointment of a new CEO, has also decided to leave the fee package for the board to shareholders to decide at the company's annual general meeting on Jan 31.
The company has proposed that the chairman be paid $1.25 million compared with $250,000 now. Mr Lee has decided to incorporate the $1 million fee he now gets into the chairman's package. The former SingTel head honcho also received another $150,000 in his capacity as non-executive chairman of F&N's property arm, Frasers Centrepoint.
The report also showed that former chairman Michael Fam, who retired on Oct 14 after 24 years with the group, received $2.33 million of which 77 per cent was his salary.
Group company secretary Anthony Cheong, who will be relinquishing his board seat to make way for more independent directors, was paid nearly $1.8 million, comprising salary of 31 per cent, 28 per cent in bonuses and 36.5 per cent in long-term incentives (largely share options).
Asia Pacific Breweries CEO Koh Poh Tiong was paid $3.77 million in 2007 - 32 per cent of which was salary, 62.5 per cent came by way of bonuses and 4.4 per cent in long-term incentives. F&N effectively owns 39 per cent of APB.
Centrepoint CEO Lim Ee Seng got $2.98 million of which 33.4 per cent was salary, 46.5 per cent was a bonus and 19.5 per cent was a long-term incentive.
The report also revealed some other nuggets, including the purchase of three condominium units at St Thomas Suites by director Stephen Lee and/or his associates for $21.98 million, and two units at the same condo by Nicky Tan and/or his associates for $22.59 million. Mr Lee also bought a unit at Soleil@Sinaran for $2.22 million. Dr Han and/or his associates bought two units at the same condo for $3.85 million.
F&N, which reported a 28 per cent increase in net earnings to a record $378 million on a 25 per cent jump in turnover to $4.7 billion for the financial year ended Sept 30, 2007, disclosed that it had unutilised tax losses carried forward of about $351.59 million last year compared with $444.55 million the previous year. Just over $200 million was the result of writedowns by the Chinese arm of Frasers Properties.
In his maiden annual report statement, chairman Lee thinks the outlook for the current financial year, is fraught with uncertainties arising from the US sub-prime mortgage issue and the high price of crude oil.
'The group will need to address the challenges of more cautious consumer spending and higher costs of doing business. However, economic growth in Asia is expected to continue albeit at a slower rate,' he said.
Paragon To Get $82m Makeover
Source : The Straits Times, Jan 8, 2008
NEW LOOK, MORE SPACE
PARAGON Shopping Centre will soon sport a new look.
The icon along Singapore's Orchard Road shopping strip is embarking on an $82-million makeover that will give it a new facade and more retail and office space by the end of the year.
Its new front will include pop-out glass boxes that will lift shopfronts above the ground level.
Stores at the front of the building will sport windows three times taller than the current ones.
And a yet-to-be-disclosed flagship store will make its mark with a five-storey high shopfront.
The makeover 'will provide these tenants with significant visibility and brand expression,' said Mrs Linda Kwan, Paragon's general manager.
The new look for the mall at the junction of Orchard and Bideford roads is the work of DP Architects, which oversaw the integration of Paragon and the former Promenade into a single mall in 2003.
DP aims to create a modern and upmarket look for Paragon, to reflect its status as a leading mall for international luxury goods.
The latest renovation will also add 11,600 sq ft to Paragon's nett lettable area, which now stands at 650,000 sq ft. Besides the extra retail space, two more floors, or 29,000 sq ft, will also be added for use as offices and medical clinics.
The mall will remain open during the renovation.
NEW LOOK, MORE SPACE
PARAGON Shopping Centre will soon sport a new look.
The icon along Singapore's Orchard Road shopping strip is embarking on an $82-million makeover that will give it a new facade and more retail and office space by the end of the year.
Its new front will include pop-out glass boxes that will lift shopfronts above the ground level.
Stores at the front of the building will sport windows three times taller than the current ones.
And a yet-to-be-disclosed flagship store will make its mark with a five-storey high shopfront.
The makeover 'will provide these tenants with significant visibility and brand expression,' said Mrs Linda Kwan, Paragon's general manager.
The new look for the mall at the junction of Orchard and Bideford roads is the work of DP Architects, which oversaw the integration of Paragon and the former Promenade into a single mall in 2003.
DP aims to create a modern and upmarket look for Paragon, to reflect its status as a leading mall for international luxury goods.
The latest renovation will also add 11,600 sq ft to Paragon's nett lettable area, which now stands at 650,000 sq ft. Besides the extra retail space, two more floors, or 29,000 sq ft, will also be added for use as offices and medical clinics.
The mall will remain open during the renovation.
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