Source : The Business Times, April 22, 2008
Region has enough in its tank to ride out global downturn, he says
INFLATION is the No 1 risk for Asia, ranking even higher than the current credit squeeze and global economic slowdown, a top Australian economist said yesterday.
But inflation can be managed if countries allow greater appreciation of their currency, according to Roger Donnelly, chief economist of the Australian Export Finance and Insurance Corporation (EFIC).
Although the likes of Singapore and China have recently strengthened their currencies against the US dollar, this has to be seen in the 'broader context of the US dollar sinking against every other currency', he said.
'Asian currencies are still very weak, and in many people's judgment there is scope to combat inflation by allowing greater exchange rate flexibility,' Mr Donnelly told reporters during a discussion here yesterday while on a two-day visit.
The EFIC - the Australian government's export credit agency - has been supporting the international growth of Australian businesses for 50 years. It also provides finance and insurance to Australian companies exporting and investing overseas.
Acknowledging that a stronger currency can hurt competitiveness, Mr Donnelly said: 'Yes, it will not help export industries. But domestic demand will be supported, and that will cause a re-balance in these economies, which is healthy.'
On how the global economic slowdown could affect growth in Asia, and particularly Singapore, he said: 'I'm a cautious optimistic. I think Asia will be able to weather the storm. Back in 1997 you were a big importer, but this time round you are suppliers of capital to the rest of the world. And since 1997 your relative economic weight in the world has increased.'
Asia, as a whole, has enough in its tank to 'ride out' the international downturn, said Mr Donnelly, thanks to increasing intra-regional trade making up for a dip in exports to the US.
Singapore is Australia's seventh-largest trading partner, with Japan topping the list.
Tuesday, April 22, 2008
Mubadala, CapitaLand In Property Venture
Source : The Business Times, April 22, 2008
US$300m JV with Abu Dhabi agency will develop property projects
(ABU DHABI) Singapore- based CapitaLand and Abu Dhabi investment agency Mubadala Development Co said that they had set up a US$300 million joint venture to develop property projects.
The new venture, in which Mubadala has a 51 per cent stake, will focus on developing projects in the United Arab Emirates (UAE) capital Abu Dhabi, Mubadala chief financial officer Carlos Obeid said at a news conference yesterday.
CapitaLand, South-east Asia's largest developer, will begin with a US$4 billion mixed-use project in Abu Dhabi, Mr Obeid said.
'Through this joint venture, we will turn property development ideas into reality,' he said. 'Our strategy of making capital-intensive investments with long-term horizons will contribute to the regeneration of property in Abu Dhabi as well as enhance the real estate sector in the emirate.'
CapitaLand reported a surprise 49 per cent jump in quarterly earnings on strong home sales in February and said that it planed to dig into its $4.4 billion cash pile for expansion in countries such as India and China.
Mubadala is one of the state-owned agencies Abu Dhabi and other members of the UAE federation are using to invest their windfall from an almost sixfold increase in oil prices since 2002.
In March, it set up a new company with Chicago- based John Buck Co to develop projects across the Middle East. - Reuters
US$300m JV with Abu Dhabi agency will develop property projects
(ABU DHABI) Singapore- based CapitaLand and Abu Dhabi investment agency Mubadala Development Co said that they had set up a US$300 million joint venture to develop property projects.
The new venture, in which Mubadala has a 51 per cent stake, will focus on developing projects in the United Arab Emirates (UAE) capital Abu Dhabi, Mubadala chief financial officer Carlos Obeid said at a news conference yesterday. CapitaLand, South-east Asia's largest developer, will begin with a US$4 billion mixed-use project in Abu Dhabi, Mr Obeid said.
'Through this joint venture, we will turn property development ideas into reality,' he said. 'Our strategy of making capital-intensive investments with long-term horizons will contribute to the regeneration of property in Abu Dhabi as well as enhance the real estate sector in the emirate.'
CapitaLand reported a surprise 49 per cent jump in quarterly earnings on strong home sales in February and said that it planed to dig into its $4.4 billion cash pile for expansion in countries such as India and China.
Mubadala is one of the state-owned agencies Abu Dhabi and other members of the UAE federation are using to invest their windfall from an almost sixfold increase in oil prices since 2002.
In March, it set up a new company with Chicago- based John Buck Co to develop projects across the Middle East. - Reuters
K-Reit Q1 Distributable Income Soars 165.9%
Source : The Business Times, April 22, 2008
This was attributed mainly to income from its stake in One Raffles Quay
K-REIT Asia has reported distributable income of $11.4 million for the quarter ended March 31, a 165.9 per cent increase from the same period in 2007.
This was attributed mainly to income from its one-third interest in One Raffles Quay Pte Ltd, the acquisition of which was completed on Dec 10, 2007.
K-Reit said the contribution from One Raffles Quay was $10.9 million, comprising income support received from the vendor, interest income and dividend income.
Distribution per unit (DPU) for the quarter was 4.6 cents, or 1.3 percentage points more than forecast. K-Reit said this amount will be included in the advance distribution payout, estimated to be 6.45 to 6.5 cents per unit, for the period Jan 1 to May 7, 2008.
Net property income for the quarter was $9.1 million, or 41.5 per cent higher than $6.5 million in the corresponding quarter in 2007. This was underpinned by higher gross rental income from properties, K-Reit said. Gross rental income increased 30.2 per cent year on year to $11.2 million in Q1 2008.
Committed occupancy of K-Reit's portfolio is 99.6 per cent. With the contribution of the one-third interest in One Raffles Quay, the average monthly gross rent of its portfolio grew 69.4 per cent year on year and 14 per cent from end-2007 to $6.86 per square foot in March 2008.
K-Reit is now engaged in a rights issue. The expected gross proceeds of $551.7 million will be used to partly repay a bridging loan of $942 million drawn down for the acquisition of the one-third stake in One Raffles Quay.
This will reduce K-Reit's aggregate leverage from 53.9 per cent to 27.7 per cent and provide it with additional funding capacity to acquire further properties.
The rights units are expected to be issued on May 8.
K-Reit said it expects to benefit from positive rental revisions, given its current rents are below market rates and that 42.2 per cent and 20.2 per cent of its portfolio's net lettable area is due for lease expiry and rent review respectively between 2008 and 2010.
K-Reit's units closed one cent higher at $1.41 yesterday.
This was attributed mainly to income from its stake in One Raffles Quay
K-REIT Asia has reported distributable income of $11.4 million for the quarter ended March 31, a 165.9 per cent increase from the same period in 2007.
This was attributed mainly to income from its one-third interest in One Raffles Quay Pte Ltd, the acquisition of which was completed on Dec 10, 2007.
K-Reit said the contribution from One Raffles Quay was $10.9 million, comprising income support received from the vendor, interest income and dividend income.
Distribution per unit (DPU) for the quarter was 4.6 cents, or 1.3 percentage points more than forecast. K-Reit said this amount will be included in the advance distribution payout, estimated to be 6.45 to 6.5 cents per unit, for the period Jan 1 to May 7, 2008.
Net property income for the quarter was $9.1 million, or 41.5 per cent higher than $6.5 million in the corresponding quarter in 2007. This was underpinned by higher gross rental income from properties, K-Reit said. Gross rental income increased 30.2 per cent year on year to $11.2 million in Q1 2008.
Committed occupancy of K-Reit's portfolio is 99.6 per cent. With the contribution of the one-third interest in One Raffles Quay, the average monthly gross rent of its portfolio grew 69.4 per cent year on year and 14 per cent from end-2007 to $6.86 per square foot in March 2008.
K-Reit is now engaged in a rights issue. The expected gross proceeds of $551.7 million will be used to partly repay a bridging loan of $942 million drawn down for the acquisition of the one-third stake in One Raffles Quay.
This will reduce K-Reit's aggregate leverage from 53.9 per cent to 27.7 per cent and provide it with additional funding capacity to acquire further properties.
The rights units are expected to be issued on May 8.
K-Reit said it expects to benefit from positive rental revisions, given its current rents are below market rates and that 42.2 per cent and 20.2 per cent of its portfolio's net lettable area is due for lease expiry and rent review respectively between 2008 and 2010.
K-Reit's units closed one cent higher at $1.41 yesterday.
Meltdown Fears Pass, But Worst May Not Be Over Yet: IMF
Source : The Business Times, April 22, 2008
Although the risk of a financial meltdown has passed, the worst of the US banking and economic crisis may not yet be over, as the crisis moves into new phases, according to a senior official from the International Monetary Fund.
In an interview with BT, Charles Collyns, the Fund's deputy director of research, pointed out that there are still downside risks arising from the interaction between the weak financial system and the weakening real economy. The US housing market could get weaker for at least another year, he said. In addition, unemployment is rising, as are the risks of corporate defaults. 'Those developments could put further pressure on the financial system,' he said.
Mr Collyns: Countries should avoid imposing export taxes and export bans on food items
In its latest World Economic Outlook released this month, the IMF forecasts that US GDP growth will slow to 0.5 per cent this year (from 2.2 per cent in 2007) and the economy 'could tip into mild recession' before recovering gradually in 2009. Under this scenario, the IMF estimates that total losses for the US financial system arising from the sub-prime crisis (but including losses in non-sub-prime related areas) would total US$945 billion. However Mr Collyns acknowledged that if the US recession were deeper and longer - as some economists predict - the losses 'could be substantially larger'.
The IMF forecasts that other advanced economies will also slow down this year, but by less than the US; it forecasts growth in both the Euro area and Japan at 1.4 per cent in 2008 (compared with 2.6 per cent and 2.1 per cent, respectively in 2007).
Global growth is predicted to come in at 3.7 per cent this year, compared with 4.9 per cent in 2007.
Mr Collyns pointed out that while emerging market economies will experience some slowdown in the wake of weaker growth in advanced countries, they will still grow above their average trend growth during the last ten years.
The IMF forecasts emerging economies will grow by 6.7 per cent this year, compared with 7.9 per cent in 2007.
Mr Collyns pointed out that these economies will be less adversely affected by the current crisis than by previous US recessions such as those in 2001 and 1991. 'Emerging markets are stronger now than they were ten years ago,' he said, pointing to stronger public sector balance sheets, large current account surpluses, substantial foreign exchange reserves and better macro policies, particularly in Asia - which also enjoys strong domestic demand growth. Developing Asia is projected to enjoy 8.2 per cent growth this year, compared with 9.7 per cent in 2007. Growth in Africa, Latin America and the Middle East is also expected to stay resilient, partly because of higher commodity prices.
Mr Collyns attributed the commodity price surge - which is fuelling higher inflation everywhere - mainly to a supply-demand imbalance. Strong demand, particularly from large emerging economies like China and India and the rising demand for biofuels, has not been accompanied by commensurate increases in supply. Food price inflation has been aggravated by the weakening of the US dollar and increased interest among investors in commodities as an asset class.
The Fund has called for urgent action to tackle rising food prices, including increased financing for poor countries - including via its own loan facilities - and higher funding for the United Nations' World Food Programme.
Mr Collyns also said countries should avoid imposing export taxes and export bans on food items. By keeping domestic prices artificially low, such measures inhibit much-needed increases in food production and prevent farmers from benefiting from higher food prices. Globally, they also exacerbate food shortages, as well as inflation.
Although the risk of a financial meltdown has passed, the worst of the US banking and economic crisis may not yet be over, as the crisis moves into new phases, according to a senior official from the International Monetary Fund.
In an interview with BT, Charles Collyns, the Fund's deputy director of research, pointed out that there are still downside risks arising from the interaction between the weak financial system and the weakening real economy. The US housing market could get weaker for at least another year, he said. In addition, unemployment is rising, as are the risks of corporate defaults. 'Those developments could put further pressure on the financial system,' he said.
Mr Collyns: Countries should avoid imposing export taxes and export bans on food itemsIn its latest World Economic Outlook released this month, the IMF forecasts that US GDP growth will slow to 0.5 per cent this year (from 2.2 per cent in 2007) and the economy 'could tip into mild recession' before recovering gradually in 2009. Under this scenario, the IMF estimates that total losses for the US financial system arising from the sub-prime crisis (but including losses in non-sub-prime related areas) would total US$945 billion. However Mr Collyns acknowledged that if the US recession were deeper and longer - as some economists predict - the losses 'could be substantially larger'.
The IMF forecasts that other advanced economies will also slow down this year, but by less than the US; it forecasts growth in both the Euro area and Japan at 1.4 per cent in 2008 (compared with 2.6 per cent and 2.1 per cent, respectively in 2007).
Global growth is predicted to come in at 3.7 per cent this year, compared with 4.9 per cent in 2007.
Mr Collyns pointed out that while emerging market economies will experience some slowdown in the wake of weaker growth in advanced countries, they will still grow above their average trend growth during the last ten years.
The IMF forecasts emerging economies will grow by 6.7 per cent this year, compared with 7.9 per cent in 2007.
Mr Collyns pointed out that these economies will be less adversely affected by the current crisis than by previous US recessions such as those in 2001 and 1991. 'Emerging markets are stronger now than they were ten years ago,' he said, pointing to stronger public sector balance sheets, large current account surpluses, substantial foreign exchange reserves and better macro policies, particularly in Asia - which also enjoys strong domestic demand growth. Developing Asia is projected to enjoy 8.2 per cent growth this year, compared with 9.7 per cent in 2007. Growth in Africa, Latin America and the Middle East is also expected to stay resilient, partly because of higher commodity prices.
Mr Collyns attributed the commodity price surge - which is fuelling higher inflation everywhere - mainly to a supply-demand imbalance. Strong demand, particularly from large emerging economies like China and India and the rising demand for biofuels, has not been accompanied by commensurate increases in supply. Food price inflation has been aggravated by the weakening of the US dollar and increased interest among investors in commodities as an asset class.
The Fund has called for urgent action to tackle rising food prices, including increased financing for poor countries - including via its own loan facilities - and higher funding for the United Nations' World Food Programme.
Mr Collyns also said countries should avoid imposing export taxes and export bans on food items. By keeping domestic prices artificially low, such measures inhibit much-needed increases in food production and prevent farmers from benefiting from higher food prices. Globally, they also exacerbate food shortages, as well as inflation.
GIC Sets Up Three Panels To Oversee Operations, Investments And Risks
Source : The Business Times, April 22, 2008
Lim Siong Guan to chair management committee
The Government of Singapore Investment Corp (GIC) has set up three new committees to help it better manage its business operations, investments and risks.
+2.jpg)
The group management committee, group investment committee and group risk committee will have oversight over their respective areas for the entire GIC group.
GIC deputy chairman and executive director Tony Tan announced the move yesterday in his opening address at the inaugural GIC Staff Conference at Swissotel The Stamford.
'GIC runs a tight ship, minimising risks where possible and taking advantage of our strengths as a long-term investor to manage one portfolio with good coordination among our various investment activities,' he said.
The group management committee will be chaired by GIC's group managing director Lim Siong Guan. It will tackle organisational, business and personnel issues.
The group investment committee will be chaired by GIC's group chief investment officer Ng Kok Song. It will develop and implement asset allocation policies and investment strategies at group level. This committee will also review the risk and performance of the various asset classes on a regular basis.
The group risk committee will be chaired by GIC's chief risk officer Sung Cheng Chih. It will provide oversight and guidance for the development and implementation of risk-management policies and practices for the entire group.
'This management structure enables GIC to have the group-wide oversight on our business operations, investments and risks, while giving sufficient autonomy to our investment subsidiaries so they can respond in a timely fashion to changes in investment circumstances,' Dr Tan said yesterday.
The new committees will be in addition to GIC's three subsidiaries - GIC Asset Management, which looks after public market assets; GIC Special Investments, which looks after private equity and infrastructure investments; and GIC Real Estate, which is responsible for its real-estate investments.
Such a structure has provided GIC with the flexibility and responsiveness to make investment decisions when it needed to act quickly in the face of rapidly changing market circumstances, Dr Tan said.
The new group committees - with GIC's three subsidiaries - will report to the group executive committee, chaired by Dr Tan.
The group executive committee will deliberate and decide on major investment and risk policy issues before submission to relevant board committees and the GIC board. It will also review and approve major personnel and business policies that apply to the entire group.
Dr Tan acknowledged that management structures by themselves will not ensure GIC succeeds in its mission to look after Singapore's reserves.
'The most important factor that will determine the success of GIC is our people,' he said. 'GIC's creditable performance over the past 27 years, since our formation in 1981, would not have been possible without the dedication and hard work that you (the staff) have all put in.'
Lim Siong Guan to chair management committee
The Government of Singapore Investment Corp (GIC) has set up three new committees to help it better manage its business operations, investments and risks.
+2.jpg)
The group management committee, group investment committee and group risk committee will have oversight over their respective areas for the entire GIC group.GIC deputy chairman and executive director Tony Tan announced the move yesterday in his opening address at the inaugural GIC Staff Conference at Swissotel The Stamford.
'GIC runs a tight ship, minimising risks where possible and taking advantage of our strengths as a long-term investor to manage one portfolio with good coordination among our various investment activities,' he said.
The group management committee will be chaired by GIC's group managing director Lim Siong Guan. It will tackle organisational, business and personnel issues.
The group investment committee will be chaired by GIC's group chief investment officer Ng Kok Song. It will develop and implement asset allocation policies and investment strategies at group level. This committee will also review the risk and performance of the various asset classes on a regular basis.
The group risk committee will be chaired by GIC's chief risk officer Sung Cheng Chih. It will provide oversight and guidance for the development and implementation of risk-management policies and practices for the entire group.
'This management structure enables GIC to have the group-wide oversight on our business operations, investments and risks, while giving sufficient autonomy to our investment subsidiaries so they can respond in a timely fashion to changes in investment circumstances,' Dr Tan said yesterday.
The new committees will be in addition to GIC's three subsidiaries - GIC Asset Management, which looks after public market assets; GIC Special Investments, which looks after private equity and infrastructure investments; and GIC Real Estate, which is responsible for its real-estate investments.
Such a structure has provided GIC with the flexibility and responsiveness to make investment decisions when it needed to act quickly in the face of rapidly changing market circumstances, Dr Tan said.
The new group committees - with GIC's three subsidiaries - will report to the group executive committee, chaired by Dr Tan.
The group executive committee will deliberate and decide on major investment and risk policy issues before submission to relevant board committees and the GIC board. It will also review and approve major personnel and business policies that apply to the entire group.
Dr Tan acknowledged that management structures by themselves will not ensure GIC succeeds in its mission to look after Singapore's reserves.
'The most important factor that will determine the success of GIC is our people,' he said. 'GIC's creditable performance over the past 27 years, since our formation in 1981, would not have been possible without the dedication and hard work that you (the staff) have all put in.'
Malaysia Reviewing Cost Of Development Projects
Source : The Business Times, April 22, 2008
KUALA LUMPUR - Malaysia is reviewing some projects under a state development blueprint, the prime minister said on Tuesday, reviving concerns the government may shelve them after its shock electoral setback in last month's poll.
'There are many projects that are being reviewed at the moment,' Abdullah Ahmad Badawi told reporters, referring to jobs under a US$54 billion, five-year state development plan.
He did not elaborate but government officials said the state was reconsidering some projects due to the rising cost of building materials and to give priority to food projects to ensure sufficient supply and help curb rising prices.
Last week, state-linked builder UEM Builders said work on a bridge it is developing to link Malaysia's northern island state of Penang with the peninsula would be finished later than planned.
Mr Abdullah said completion of the bridge had been delayed due to various factors including land acquisition, design and cost of materials. 'We have to review the costs,' he told reporters on the sidelines of a meeting with Asian and European culture ministers. 'The costs have changed because the prices of materials have gone up.'
Under the state development plan, he had pledged to cut red tape, upgrade infrastructure and improve the investment climate to boost an economy that is losing its edge in electronics manufacturing.
But investors are worried the government may call off some projects after the ruling coalition recorded its worst-ever performance in its 50-year rule in last month's poll.
The ruling coalition lost its two-thirds parliamentary majority and five states to the opposition in the election.
With water and land matters under the purview of state governments, investors fret that the coalition's setback could scupper some projects.
A fund manager said Mr Abdullah's comments could further stoke investor worries.
'More likely than not it will be taken negatively because things are still very fragile,' said Raymond Tang, chief investment officer of CIMB-Principal Asset Management. -- REUTERS
KUALA LUMPUR - Malaysia is reviewing some projects under a state development blueprint, the prime minister said on Tuesday, reviving concerns the government may shelve them after its shock electoral setback in last month's poll.
'There are many projects that are being reviewed at the moment,' Abdullah Ahmad Badawi told reporters, referring to jobs under a US$54 billion, five-year state development plan.
He did not elaborate but government officials said the state was reconsidering some projects due to the rising cost of building materials and to give priority to food projects to ensure sufficient supply and help curb rising prices.
Last week, state-linked builder UEM Builders said work on a bridge it is developing to link Malaysia's northern island state of Penang with the peninsula would be finished later than planned.
Mr Abdullah said completion of the bridge had been delayed due to various factors including land acquisition, design and cost of materials. 'We have to review the costs,' he told reporters on the sidelines of a meeting with Asian and European culture ministers. 'The costs have changed because the prices of materials have gone up.'
Under the state development plan, he had pledged to cut red tape, upgrade infrastructure and improve the investment climate to boost an economy that is losing its edge in electronics manufacturing.
But investors are worried the government may call off some projects after the ruling coalition recorded its worst-ever performance in its 50-year rule in last month's poll.
The ruling coalition lost its two-thirds parliamentary majority and five states to the opposition in the election.
With water and land matters under the purview of state governments, investors fret that the coalition's setback could scupper some projects.
A fund manager said Mr Abdullah's comments could further stoke investor worries.
'More likely than not it will be taken negatively because things are still very fragile,' said Raymond Tang, chief investment officer of CIMB-Principal Asset Management. -- REUTERS
Mapletree, JTC Scrap Plans To List Reit
Source : The Business Times, April 22, 2008
JTC Corporation has announced that it is proceeding to divest $1.71 billion of assets to Temasek unit Mapletree Investments Pte Ltd.
However, JTC and Mapletree will not be proceeding with the proposed listing of the portfolio of properties through a Real Estate Investment Trust (Reit) 'at the present time', a release issued by JTC and Mapletree said.
'This in light of the current volatile market conditions which are not conducive for a Reit IPO. Instead, JTC will divest the portfolio of properties to a private trust sponsored by Mapletree,' the release said.
The properties to be divested comprise 39 blocks of flatted factories in various locations including Kaki Bukit, Kallang Way, Loyang, Serangoon North and Tanglin Halt, 12 amenity centres, six stack-up buildings, a ramp-up building, The Synergy and The Strategy at International Business Park in Jurong and The Signature at the Changi Business Park, plus one warehouse building at Clementi West. The transfer of properties to Mapletree is expected to be completed by July 1. -- BT newsroom
JTC Corporation has announced that it is proceeding to divest $1.71 billion of assets to Temasek unit Mapletree Investments Pte Ltd.
However, JTC and Mapletree will not be proceeding with the proposed listing of the portfolio of properties through a Real Estate Investment Trust (Reit) 'at the present time', a release issued by JTC and Mapletree said. 'This in light of the current volatile market conditions which are not conducive for a Reit IPO. Instead, JTC will divest the portfolio of properties to a private trust sponsored by Mapletree,' the release said.
The properties to be divested comprise 39 blocks of flatted factories in various locations including Kaki Bukit, Kallang Way, Loyang, Serangoon North and Tanglin Halt, 12 amenity centres, six stack-up buildings, a ramp-up building, The Synergy and The Strategy at International Business Park in Jurong and The Signature at the Changi Business Park, plus one warehouse building at Clementi West. The transfer of properties to Mapletree is expected to be completed by July 1. -- BT newsroom
London Homes The Most Expensive
Source : The Business Times, April 22, 2008
Survey puts Monaco and St Jean Cap Ferrat in France in 2nd and 3rd spots
(LONDON) London is the world's most expensive place in which to buy a home, followed by Monaco and St Jean Cap Ferrat in southern France, an annual global survey by real estate consultant Knight Frank LLP showed.
The average price of a property in the best locations of central London was US$6,191 a square foot, according to the firm's Prime International Residential Index, published yesterday. Monaco averaged US$5,888 a square foot and properties five miles west along the Mediterranean coast in St Jean Cap Ferrat cost US$5,853 a square foot, the London-based firm said.
Waning: The most expensive London houses and apartments rose 0.1 per cent in value last month, the smallest increase in four months
London benefited from its position as a global centre for finance while its nearest contenders are attractive as Mediterranean second-home 'hot spots', according to the survey compiled by Knight Frank and Citi Private Bank.
Growth in property values has been 'strongest in the main global financial centres and those with benign tax jurisdictions', Liam Bailey, Knight Frank's head of residential research, said in the note.
Average prime home prices in London increased 29 per cent last year, trailing the 31 per cent annual gain in Singapore and exceeding the 25 per cent increase for New York, Knight Frank's index showed.
Luxury-home prices in London may only rise 3 per cent this year as thousands of bankers and financial services workers in the UK capital lose their jobs in the wake of losses and writedowns from investments in sub-prime mortgages, Knight Frank estimates.
The most expensive London houses and apartments rose 0.1 per cent in value last month, the smallest increase in four months, Knight Frank said April 1. The gain of 20 per cent in the 12 months to March 31 was the smallest since June 2006, it said.
Average prime residential prices gained 11 per cent globally last year as the number of high-net-worth individuals, those with more than US$1 million of assets, increased by 4.5 per cent, Knight Frank said, citing a study it compiled with Scorpio Partnership.
UK house prices fell in April, led by London and the northwest of England, as the seizure in credit markets starved homebuyers of mortgages, Rightmove plc said yesterday.
The average asking price slipped 0.1 per cent from March to £239,521 (S$644,260), the first decline at this time of year since the survey started in 2002, Britain's most-used property website said in a statement yesterday. Prices in London fell 0.9 per cent. -- Bloomberg
Survey puts Monaco and St Jean Cap Ferrat in France in 2nd and 3rd spots
(LONDON) London is the world's most expensive place in which to buy a home, followed by Monaco and St Jean Cap Ferrat in southern France, an annual global survey by real estate consultant Knight Frank LLP showed.
The average price of a property in the best locations of central London was US$6,191 a square foot, according to the firm's Prime International Residential Index, published yesterday. Monaco averaged US$5,888 a square foot and properties five miles west along the Mediterranean coast in St Jean Cap Ferrat cost US$5,853 a square foot, the London-based firm said.
Waning: The most expensive London houses and apartments rose 0.1 per cent in value last month, the smallest increase in four monthsLondon benefited from its position as a global centre for finance while its nearest contenders are attractive as Mediterranean second-home 'hot spots', according to the survey compiled by Knight Frank and Citi Private Bank.
Growth in property values has been 'strongest in the main global financial centres and those with benign tax jurisdictions', Liam Bailey, Knight Frank's head of residential research, said in the note.
Average prime home prices in London increased 29 per cent last year, trailing the 31 per cent annual gain in Singapore and exceeding the 25 per cent increase for New York, Knight Frank's index showed.
Luxury-home prices in London may only rise 3 per cent this year as thousands of bankers and financial services workers in the UK capital lose their jobs in the wake of losses and writedowns from investments in sub-prime mortgages, Knight Frank estimates.
The most expensive London houses and apartments rose 0.1 per cent in value last month, the smallest increase in four months, Knight Frank said April 1. The gain of 20 per cent in the 12 months to March 31 was the smallest since June 2006, it said.
Average prime residential prices gained 11 per cent globally last year as the number of high-net-worth individuals, those with more than US$1 million of assets, increased by 4.5 per cent, Knight Frank said, citing a study it compiled with Scorpio Partnership.
UK house prices fell in April, led by London and the northwest of England, as the seizure in credit markets starved homebuyers of mortgages, Rightmove plc said yesterday.
The average asking price slipped 0.1 per cent from March to £239,521 (S$644,260), the first decline at this time of year since the survey started in 2002, Britain's most-used property website said in a statement yesterday. Prices in London fell 0.9 per cent. -- Bloomberg
Florida Luxury Home Market Showing Strain
Source : The Business Times, April 22, 2008
Dropping prices signal that US housing woes may have spread to high-end real estate market
(MIAMI) The surprisingly healthy market for oceanfront mansions and palatial condos in Florida, one of the most toxic states in America's housing meltdown, may finally be showing some cracks.
While many luxury properties are selling briskly thanks to Europeans and Canadians pouring their strong currencies into Florida, billionaire Donald Trump recently dropped the price on a Palm Beach mansion by 20 per cent, and some market watchers say the US housing woes have finally touched the wealthy.
Showing cracks: Miami's water-view properties had previously held their value better than cheaper houses and inland condos
At a recent luxury property auction in Fort Lauderdale, the auctioneer took home after home off the block within moments after opening the bidding when nobody made an offer.
On one high-rise condo in the Miami enclave of Williams Island, a 3,100 square foot penthouse previously listed at US$5.6 million, the auctioneer opened bidding at US$5 million, lowered his price to US$3.5 million, US$3 million, US$2.5 million, and then closed the auction, all within a minute.
'There's just not that much enthusiasm or activity in the luxury market,' said Jack Winston, a real estate analyst with Goodkin Consulting in Miami.
After the local real estate market peaked two years ago, local brokers said high-end real estate was the only thing propping up the condo market in Miami, one of the most overbuilt and overpriced in the United States.
Sales figures from the Florida Association of Realtors supported that notion.
The median price of Miami condos gained 6 per cent last year while price declines of 25 per cent or more were seen elsewhere in the state amid the US mortgage crisis, soaring property taxes and hurricane insurance woes.
Miami's vast Atlantic Ocean and Biscayne Bay shoreline offers thousands of water-view properties that have held their value better than cheaper houses and condos inland, where the foreclosure crisis has battered homeowners. The Miami condo market finally had a bad month in December, when the median price fell 10 per cent.
Auctioneers sold 'north of 20' of the 50-plus properties on sale at the Fort Lauderdale auction, said SKY Sotheby's president, Chad Roffers. The event offered up an estimated US$300 million in properties ranging from a US$2.45 million, one-bedroom on ritzy Fisher Island, to mansions in the US$15 million range.
'The high end is resilient,' Mr Roffers said. 'Certainly the market has corrected since the peak of 2005. What we are seeing is that quality waterfront inventory is holding value.' But many properties were quickly pulled from the auction when no one bid. And bargain hunters had an open field.
One man, in short order, snapped up two bayfront houses in Miami Beach's pricey Venetian Islands, one for US$500,000 and the other for US$1 million. The homes sold for US$2.75 million and US$2 million respectively in mid-2005, according to county records.
Guido Teichner, a would-be buyer who said he attended the auction looking to make a killing, put in a US$500,000 bid on a two-story, 4,000 square foot (370 square metre) penthouse condo in downtown Fort Lauderdale that had previously been listed at US$3 million.
'At that price I'd be thrilled. That would be a killing,' he said of the bid, which was accepted at auction but still awaited seller approval because it was below the minimum bid.
'Fifty cents on the dollar is not good enough in this market,' he said. 'I don't think we've hit bottom yet so you've got to get a real steal to allow for a little remaining downside.' There were signs of both strength and weakness in Florida's luxury market.
In Palm Beach, one of the priciest postal codes in the United States, the average price of a single-family home climbed to US$5.11 million in 2007, up US$618,000, according to The Evans Report, a closely watched monitor of the town's market.
An oceanfront estate owned by philanthropist Sidney Kimmel sold this month for US$81.5 million, the full asking price, broker Dana Koch of Corcoran Group said. He would not reveal the buyer, but a local newspaper identified him as John Thornton, former president of Goldman Sachs. -- Reuters
Dropping prices signal that US housing woes may have spread to high-end real estate market
(MIAMI) The surprisingly healthy market for oceanfront mansions and palatial condos in Florida, one of the most toxic states in America's housing meltdown, may finally be showing some cracks.
While many luxury properties are selling briskly thanks to Europeans and Canadians pouring their strong currencies into Florida, billionaire Donald Trump recently dropped the price on a Palm Beach mansion by 20 per cent, and some market watchers say the US housing woes have finally touched the wealthy.
Showing cracks: Miami's water-view properties had previously held their value better than cheaper houses and inland condosAt a recent luxury property auction in Fort Lauderdale, the auctioneer took home after home off the block within moments after opening the bidding when nobody made an offer.
On one high-rise condo in the Miami enclave of Williams Island, a 3,100 square foot penthouse previously listed at US$5.6 million, the auctioneer opened bidding at US$5 million, lowered his price to US$3.5 million, US$3 million, US$2.5 million, and then closed the auction, all within a minute.
'There's just not that much enthusiasm or activity in the luxury market,' said Jack Winston, a real estate analyst with Goodkin Consulting in Miami.
After the local real estate market peaked two years ago, local brokers said high-end real estate was the only thing propping up the condo market in Miami, one of the most overbuilt and overpriced in the United States.
Sales figures from the Florida Association of Realtors supported that notion.
The median price of Miami condos gained 6 per cent last year while price declines of 25 per cent or more were seen elsewhere in the state amid the US mortgage crisis, soaring property taxes and hurricane insurance woes.
Miami's vast Atlantic Ocean and Biscayne Bay shoreline offers thousands of water-view properties that have held their value better than cheaper houses and condos inland, where the foreclosure crisis has battered homeowners. The Miami condo market finally had a bad month in December, when the median price fell 10 per cent.
Auctioneers sold 'north of 20' of the 50-plus properties on sale at the Fort Lauderdale auction, said SKY Sotheby's president, Chad Roffers. The event offered up an estimated US$300 million in properties ranging from a US$2.45 million, one-bedroom on ritzy Fisher Island, to mansions in the US$15 million range.
'The high end is resilient,' Mr Roffers said. 'Certainly the market has corrected since the peak of 2005. What we are seeing is that quality waterfront inventory is holding value.' But many properties were quickly pulled from the auction when no one bid. And bargain hunters had an open field.
One man, in short order, snapped up two bayfront houses in Miami Beach's pricey Venetian Islands, one for US$500,000 and the other for US$1 million. The homes sold for US$2.75 million and US$2 million respectively in mid-2005, according to county records.
Guido Teichner, a would-be buyer who said he attended the auction looking to make a killing, put in a US$500,000 bid on a two-story, 4,000 square foot (370 square metre) penthouse condo in downtown Fort Lauderdale that had previously been listed at US$3 million.
'At that price I'd be thrilled. That would be a killing,' he said of the bid, which was accepted at auction but still awaited seller approval because it was below the minimum bid.
'Fifty cents on the dollar is not good enough in this market,' he said. 'I don't think we've hit bottom yet so you've got to get a real steal to allow for a little remaining downside.' There were signs of both strength and weakness in Florida's luxury market.
In Palm Beach, one of the priciest postal codes in the United States, the average price of a single-family home climbed to US$5.11 million in 2007, up US$618,000, according to The Evans Report, a closely watched monitor of the town's market.
An oceanfront estate owned by philanthropist Sidney Kimmel sold this month for US$81.5 million, the full asking price, broker Dana Koch of Corcoran Group said. He would not reveal the buyer, but a local newspaper identified him as John Thornton, former president of Goldman Sachs. -- Reuters
Finland Gardens En Bloc Sale Called Off
Source : TODAY, Tuesday, April 22, 2008
Developer, majority owners back down
AFTER a string of legal tussles, the Finland Gardens en bloc sale has been called off.
Lawyers for residents opposing its sale said a High Court appeal ended yesterday when the majority owners in the 48-unit condo withdrew their petition.
Joint-venture developers Sing Holdings and Eastern Summer have also backed off. The duo had thought they successfully bought the East Coast Terrace site in 2006. Both sides will pay the legal costs incurred during the court proceedings.
Mrs Valerie Chia, one of the minority of eight owners against the sale, was over the moon. “I haven’t spoken to any of the majority owners, but I think they should be happy now the case is over, because if they sell now, they will fetch a better price that that offered during the collective sale.”
The 47-year-old clinic manager opposed the sale because she had bought her four-bedroom apartment in 1996 for $1.22 million. The $1.268 million offered during the collective sale meant she would have lost out after taking costs into account.
“In our area, we can easily get $700 to $800 per square foot, whereas the collective sale would have given me $504 per square foot,” she explained.
This decision means all owners are now free to sell their apartments at a higher price.
This turn of events closes a long-running dispute that made headlines last November when the Strata Titles Board threw out the en bloc sale after eight owners called the sale “rushed” and not conducted in “good faith”.
Lawyers for those against the sale also argued that there was no 80-per-cent majority, as three owners backing the sale did not agree on the $49-million agreed price.
Mr Donald Han, managing director of real estate consultants Cushman and Wakefield, observed that the Finland Gardens episode implied that no en bloc process is absolute. Minority owners now know “they can contest the en bloc process as the courts will reward the outcome based on a merit basis.”
Developer, majority owners back down
AFTER a string of legal tussles, the Finland Gardens en bloc sale has been called off.
Lawyers for residents opposing its sale said a High Court appeal ended yesterday when the majority owners in the 48-unit condo withdrew their petition.
Joint-venture developers Sing Holdings and Eastern Summer have also backed off. The duo had thought they successfully bought the East Coast Terrace site in 2006. Both sides will pay the legal costs incurred during the court proceedings.Mrs Valerie Chia, one of the minority of eight owners against the sale, was over the moon. “I haven’t spoken to any of the majority owners, but I think they should be happy now the case is over, because if they sell now, they will fetch a better price that that offered during the collective sale.”
The 47-year-old clinic manager opposed the sale because she had bought her four-bedroom apartment in 1996 for $1.22 million. The $1.268 million offered during the collective sale meant she would have lost out after taking costs into account.
“In our area, we can easily get $700 to $800 per square foot, whereas the collective sale would have given me $504 per square foot,” she explained.
This decision means all owners are now free to sell their apartments at a higher price.
This turn of events closes a long-running dispute that made headlines last November when the Strata Titles Board threw out the en bloc sale after eight owners called the sale “rushed” and not conducted in “good faith”.
Lawyers for those against the sale also argued that there was no 80-per-cent majority, as three owners backing the sale did not agree on the $49-million agreed price.
Mr Donald Han, managing director of real estate consultants Cushman and Wakefield, observed that the Finland Gardens episode implied that no en bloc process is absolute. Minority owners now know “they can contest the en bloc process as the courts will reward the outcome based on a merit basis.”
Worst Recession In 30 Years: GIC
Source : TODAY, Tuesday, April 22, 2008
JUST weeks before global financial markets were first sucked into a vortex last August, Dr Tony Tan (picture) was sounding alarm bells about “dark clouds”, which had already prompted the Government of Singapore Investment Corp (GIC) to cash out of some of its multi-billion-dollar investments.
Yesterday, GIC’s deputy chairman was back with an even more harrowing prediction. “We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,” he said.
Dr Tan delivered this warning during his opening speech at the fund’s inaugural staff conference yesterday, the only part of the one-day programme open to the media.
GIC, which manages over US$100 billion ($135 billion) of Singapore’s foreign reserves, has spared itself some of the pain.
In the third quarter last year, it sold some of its equities before financial markets nose-dived. This helped provide the funds for GIC to pump a total of about
US$16 billion into sub-prime-hit Citigroup and UBS over January and December, in exchange for bonds convertible into shares.
Since then, Citi and UBS have unveiled more losses and writedowns, causing their share prices to fall about 7 per cent and 38 per cent respectively.
But Dr Tan said yesterday that GIC believes the two “longterm” investments will bring “good returns when markets stabilise and economic conditions return to more normal levels”. Until then, however, these one to two years will be “extremely nervous and volatile”.
He revealed yesterday that GIC had set up three group committees to oversee risks, organisational issues and investments.
The group risk committee, which will be chaired by chief risk officer Sung Cheng Chih, provides oversight and guidance for the development and implementation of policies and practices for the entire group.
Lack of oversight has shown up as a major weakness in the financial industry since the collapse of United States’ sub-prime mortgage market, as certain banks and investment firms have only recently discovered the extent of complicated, high-risk instruments on their balance sheets.
As banks continue to reduce lending activities and cause the credit supply to contract, the world economy is fraught with “considerable downside risks”, said Dr Tan, adding that “a period of extreme uncertainty” is afoot.
However, he said a sharp turnaround in sentiment and the markets could take place if policymakers in the US and elsewhere respond “strongly and appropriately”.
On the other hand, “if such actions by the authorities are not taken within the next three to four months, it will be left to the market forces of supply and demand to stabilise the US housing market before we can see the light at the end of the tunnel”, said Dr Tan.
“This will be a considerably more painful and long drawn process.”
He told some 500 staff in the audience: “The next few years may well be among the most challenging years for GIC since our establishment in 1981. We have to brace ourselves for trying and difficult times, but we are well prepared.”
UBS ADMITS LAX CONTROLS
Excessive risk-taking and a failure to see the severity of the American housing downturn – these were key factors behind UBS’ US$37 billion ($50 billion) writedowns on sub-prime-linked investments, according to a Swiss bank report.
UBS has been the world’s worst-hit bank in the subprime crisis. In December, UBS received a cash infusion of 11 billion Swiss francs ($15 billion) from Singapore’s GIC.
The 50-page report released yesterday pinpointed the key culprit as Dillon Read Capital Management, the bank’s nowdefunct hedge fund; and its investment banking unit, where senior management meetings had an “asymmetric focus” on revenue and profit-and-loss.
The report comes just before tomorrow’s shareholders’ meeting to vote on a second cash injection of 15 billion Swiss francs.
JUST weeks before global financial markets were first sucked into a vortex last August, Dr Tony Tan (picture) was sounding alarm bells about “dark clouds”, which had already prompted the Government of Singapore Investment Corp (GIC) to cash out of some of its multi-billion-dollar investments.
Yesterday, GIC’s deputy chairman was back with an even more harrowing prediction. “We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,” he said.
Dr Tan delivered this warning during his opening speech at the fund’s inaugural staff conference yesterday, the only part of the one-day programme open to the media.
GIC, which manages over US$100 billion ($135 billion) of Singapore’s foreign reserves, has spared itself some of the pain.
In the third quarter last year, it sold some of its equities before financial markets nose-dived. This helped provide the funds for GIC to pump a total of about
US$16 billion into sub-prime-hit Citigroup and UBS over January and December, in exchange for bonds convertible into shares.
Since then, Citi and UBS have unveiled more losses and writedowns, causing their share prices to fall about 7 per cent and 38 per cent respectively.
But Dr Tan said yesterday that GIC believes the two “longterm” investments will bring “good returns when markets stabilise and economic conditions return to more normal levels”. Until then, however, these one to two years will be “extremely nervous and volatile”.
He revealed yesterday that GIC had set up three group committees to oversee risks, organisational issues and investments.
The group risk committee, which will be chaired by chief risk officer Sung Cheng Chih, provides oversight and guidance for the development and implementation of policies and practices for the entire group.
Lack of oversight has shown up as a major weakness in the financial industry since the collapse of United States’ sub-prime mortgage market, as certain banks and investment firms have only recently discovered the extent of complicated, high-risk instruments on their balance sheets.
As banks continue to reduce lending activities and cause the credit supply to contract, the world economy is fraught with “considerable downside risks”, said Dr Tan, adding that “a period of extreme uncertainty” is afoot.
However, he said a sharp turnaround in sentiment and the markets could take place if policymakers in the US and elsewhere respond “strongly and appropriately”.
On the other hand, “if such actions by the authorities are not taken within the next three to four months, it will be left to the market forces of supply and demand to stabilise the US housing market before we can see the light at the end of the tunnel”, said Dr Tan.
“This will be a considerably more painful and long drawn process.”
He told some 500 staff in the audience: “The next few years may well be among the most challenging years for GIC since our establishment in 1981. We have to brace ourselves for trying and difficult times, but we are well prepared.”
UBS ADMITS LAX CONTROLS
Excessive risk-taking and a failure to see the severity of the American housing downturn – these were key factors behind UBS’ US$37 billion ($50 billion) writedowns on sub-prime-linked investments, according to a Swiss bank report.
UBS has been the world’s worst-hit bank in the subprime crisis. In December, UBS received a cash infusion of 11 billion Swiss francs ($15 billion) from Singapore’s GIC.
The 50-page report released yesterday pinpointed the key culprit as Dillon Read Capital Management, the bank’s nowdefunct hedge fund; and its investment banking unit, where senior management meetings had an “asymmetric focus” on revenue and profit-and-loss.
The report comes just before tomorrow’s shareholders’ meeting to vote on a second cash injection of 15 billion Swiss francs.
Building Green - Nuts And Bolts Of Green Buildings
Source : The Business Times, April 22, 2008
A perfect orientation is best but architects can also use other means to reduce energy consumption
IT IS hard to pin down exactly what green architecture entails. Each building is a case study in itself, with specific surroundings, usage patterns, client requirements and weather conditions. One might use a north-south alignment to block off the sun's heat. Another, forced by circumstance to face the rising or setting sun, might use glazing or shades to achieve the same. Light and temperature controls for a residential apartment block differ from those for retail malls or industrial facilities. Still, certain principles run throughout.
Going green: City Square Mall's glass facade uses double-glazed low-emission glass to mitigate excessive heat and glare, plus an automatic sun-screen that will come down in the afternoon and rise back up in the evening
Architects approach a design in two ways - passive and active. 'If you have the passive side right, half the battle is won. Then you actively use technology to manage the things you couldn't solve with the passive approach', says Tang Kok Thye, senior principal architect at ADDP Architects.
Passive refers to elements like site layout, the facing of a building and how it is structured to allow for natural lighting and ventilation. Active refers to add-ons, like special glass to keep out heat and glare, solar panels or green roofing and the building's mechanical and electrical (M&E) guts.
Because air-conditioning is typically the largest user of energy in a building, the biggest energy savings come from temperature control. In a local context, this means figuring out how to stop a building from getting too hot. The right orientation is critical. 'If a building is facing east-west, a lot of money is spent just to make it comfortable to live in', says Mr Tang. Site layout and surroundings are also important. A building next to the sea or a park is cooler than one standing next to another building that might reflect heat and light.
In the early stages of design, architects often simulate how the sunlight and wind might flow into a structure, using techniques known as Computational Fluid Dynamics.
Sun-path and wind analysis are the most common analyses. A third kind, which examines the amount of energy a building uses under varying conditions and people movements, is far more expensive and rare in Singapore.
But even the more basic analyses, due to cost, are not always done, says Mr Tang. In contrast, architectural firms in the US, where the green building movement is more advanced, often conduct environmental analysis as part of the design process.
If a building cannot have a perfect north-south orientation, which is often the case due to site constraints, architects can use other means to protect the main activity areas.
For example, Xilinx's Asia-Pacific Headquarters building - winner of the Building & Construction Authority's Green Mark Platinum award in 2007 - is diagonally oriented.
But its designer, RSP Architects Planners & Engineers, cleverly placed the stairwells and M&E rooms at the corners of the building facing the east and west, protecting the offices and chip-testing facilities at the centre of the building from the direct sun.
Xilinx also invested in doubled-glazed, low-emissive glass that helped it achieve an envelope thermal transfer value (ETTV) - a calculation how much heat a building gains through walls and windows - of 38.53 W per square metre.
This is remarkably low, said Vivien Heng, a director at RSP. There is a mandatory standard of 50 W/sq m, but most buildings don't achieve lower than 45 W/sq m, she said.
The wind flow simulation also showed up a 'dead space' with poor cross-ventilation at one portion of the building, said Ms Heng. The firm jigged the design by opening up external gaps in the facade, resulting in vastly improved wind movement through this part of the building and up and out through the central atrium. The building's internal courtyards and 'shallow' offices - no work space is more than 10 metres from the glass walls - allow wind and natural light to flow through the space, Ms Heng said.
Lend Lease Retail, the design consultant for City Square Mall, City Developments' eco-mall at Serangoon, faced similar challenges on that project. Because of the site's peculiar square shape and orientation, the mall has to contend with a main entrance facing the hot afternoon sun, though it is blocked from the rising sun by the adjacent City Square Residences, which were separately designed.
Malls are typically designed in a 'dumb-bell' layout, to maximise shop frontage, said Felix Lim, principal architect at Lend Lease Retail. This means that they are laid out in a linear strip, with speciality shops on both sides, and anchor tenants, like supermarkets or department stores, at the far ends.
The squarish site constrains an effective linear layout. So instead, Lend Lease Retail created an 'L-shape', with smaller speciality shops along the east and south sides of the square to achieve linearity, and large anchor tenants at the north-west corner.
Compared with speciality shops, anchor tenants need less 'transparency' or glass windows that allow passers-by to look in. Since the west side was largely occupied by anchor tenants, the layout meant that half or more of the mall's western front could be solid, rather than glass. This shields the mall from the western sun, and allows for advertising space on the external facade, Mr Lim explained.
For the rest of the facade - part was glass to make for an attractive entrance and allow natural light to flood the mall's large atrium - Lend Lease Retail used double-glazed low-emission glass to mitigate excessive heat and glare.
It also planned an automatic, timed sun-screen that will come down in the early afternoon and rise back up in the evening, to allow evening pedestrian traffic to look into the mall.
Both Xilinx's building and City Square Mall feature Pre-cooled Air-Handling Units (AHUs) to contain energy bills.
Air-conditioning is energy consuming because the air here is warm and humid. A Pre-cooled AHU system first brings in outside air, cools it via cooling coils and mixes it with treated return air in a separate chamber. The pre-cooled air is then further cooled in the AHU system proper and piped into the building.
The process is capital intensive upfront but results in long-term savings. Thanks to such measures, as well as other green innovations, City Square Mall, which won the Building and Construction Authority's Green Mark Platinum award last year, saves the equivalent of 11.4 million kWH per year or equivalent to the total consumption of nearly 2,400 four-room HDB flats.
ADDP Architects incorporated light screens, solar panels and rainwater harvesting into its design for Cliveden, a CDL condominium project and another 2007 Green Mark Platinum award winner.
On Cliveden's clubhouse, solar panels reduce energy dependence on the main grid, while a green roof not only helps to reduce heat inside the clubhouse but also the surrounding environment. The centre was planned as an educational centre for public awareness on using green power, said Mr Tang.
The condo collects rainwater from its roof and reuses it for landscaping, saving about 10 swimming pools of water a year. The total water and energy saved, about 30 per cent, is equivalent to saving 77,475 trees.
Another green building, from a water conservation point of view, is Temasek Polytechnic. The school installed a $1.6 million rainwater harvesting system when its 30 hectare campus was being built in the early 1990s, with the water used to for the school's extensive gardens.
Ultimately, though, the greenest of green architecture is conservation and restoration, because a lot of energy is required to knock down a building and erect a new one, architects say.
'Building is one of the most energy-intensive activities around', says Ms Heng. And ADDP's Mr Tang agrees. 'As an architect. you would like to preserve nature but it depends on the developers' needs,' he said. 'Buildings should be made to last more than 50 to 100 years.'
A perfect orientation is best but architects can also use other means to reduce energy consumption
IT IS hard to pin down exactly what green architecture entails. Each building is a case study in itself, with specific surroundings, usage patterns, client requirements and weather conditions. One might use a north-south alignment to block off the sun's heat. Another, forced by circumstance to face the rising or setting sun, might use glazing or shades to achieve the same. Light and temperature controls for a residential apartment block differ from those for retail malls or industrial facilities. Still, certain principles run throughout.
Going green: City Square Mall's glass facade uses double-glazed low-emission glass to mitigate excessive heat and glare, plus an automatic sun-screen that will come down in the afternoon and rise back up in the eveningArchitects approach a design in two ways - passive and active. 'If you have the passive side right, half the battle is won. Then you actively use technology to manage the things you couldn't solve with the passive approach', says Tang Kok Thye, senior principal architect at ADDP Architects.
Passive refers to elements like site layout, the facing of a building and how it is structured to allow for natural lighting and ventilation. Active refers to add-ons, like special glass to keep out heat and glare, solar panels or green roofing and the building's mechanical and electrical (M&E) guts.
Because air-conditioning is typically the largest user of energy in a building, the biggest energy savings come from temperature control. In a local context, this means figuring out how to stop a building from getting too hot. The right orientation is critical. 'If a building is facing east-west, a lot of money is spent just to make it comfortable to live in', says Mr Tang. Site layout and surroundings are also important. A building next to the sea or a park is cooler than one standing next to another building that might reflect heat and light.
In the early stages of design, architects often simulate how the sunlight and wind might flow into a structure, using techniques known as Computational Fluid Dynamics.
Sun-path and wind analysis are the most common analyses. A third kind, which examines the amount of energy a building uses under varying conditions and people movements, is far more expensive and rare in Singapore.
But even the more basic analyses, due to cost, are not always done, says Mr Tang. In contrast, architectural firms in the US, where the green building movement is more advanced, often conduct environmental analysis as part of the design process.
If a building cannot have a perfect north-south orientation, which is often the case due to site constraints, architects can use other means to protect the main activity areas.
For example, Xilinx's Asia-Pacific Headquarters building - winner of the Building & Construction Authority's Green Mark Platinum award in 2007 - is diagonally oriented.
But its designer, RSP Architects Planners & Engineers, cleverly placed the stairwells and M&E rooms at the corners of the building facing the east and west, protecting the offices and chip-testing facilities at the centre of the building from the direct sun.
Xilinx also invested in doubled-glazed, low-emissive glass that helped it achieve an envelope thermal transfer value (ETTV) - a calculation how much heat a building gains through walls and windows - of 38.53 W per square metre.
This is remarkably low, said Vivien Heng, a director at RSP. There is a mandatory standard of 50 W/sq m, but most buildings don't achieve lower than 45 W/sq m, she said.
The wind flow simulation also showed up a 'dead space' with poor cross-ventilation at one portion of the building, said Ms Heng. The firm jigged the design by opening up external gaps in the facade, resulting in vastly improved wind movement through this part of the building and up and out through the central atrium. The building's internal courtyards and 'shallow' offices - no work space is more than 10 metres from the glass walls - allow wind and natural light to flow through the space, Ms Heng said.
Lend Lease Retail, the design consultant for City Square Mall, City Developments' eco-mall at Serangoon, faced similar challenges on that project. Because of the site's peculiar square shape and orientation, the mall has to contend with a main entrance facing the hot afternoon sun, though it is blocked from the rising sun by the adjacent City Square Residences, which were separately designed.
Malls are typically designed in a 'dumb-bell' layout, to maximise shop frontage, said Felix Lim, principal architect at Lend Lease Retail. This means that they are laid out in a linear strip, with speciality shops on both sides, and anchor tenants, like supermarkets or department stores, at the far ends.
The squarish site constrains an effective linear layout. So instead, Lend Lease Retail created an 'L-shape', with smaller speciality shops along the east and south sides of the square to achieve linearity, and large anchor tenants at the north-west corner.
Compared with speciality shops, anchor tenants need less 'transparency' or glass windows that allow passers-by to look in. Since the west side was largely occupied by anchor tenants, the layout meant that half or more of the mall's western front could be solid, rather than glass. This shields the mall from the western sun, and allows for advertising space on the external facade, Mr Lim explained.
For the rest of the facade - part was glass to make for an attractive entrance and allow natural light to flood the mall's large atrium - Lend Lease Retail used double-glazed low-emission glass to mitigate excessive heat and glare.
It also planned an automatic, timed sun-screen that will come down in the early afternoon and rise back up in the evening, to allow evening pedestrian traffic to look into the mall.
Both Xilinx's building and City Square Mall feature Pre-cooled Air-Handling Units (AHUs) to contain energy bills.
Air-conditioning is energy consuming because the air here is warm and humid. A Pre-cooled AHU system first brings in outside air, cools it via cooling coils and mixes it with treated return air in a separate chamber. The pre-cooled air is then further cooled in the AHU system proper and piped into the building.
The process is capital intensive upfront but results in long-term savings. Thanks to such measures, as well as other green innovations, City Square Mall, which won the Building and Construction Authority's Green Mark Platinum award last year, saves the equivalent of 11.4 million kWH per year or equivalent to the total consumption of nearly 2,400 four-room HDB flats.
ADDP Architects incorporated light screens, solar panels and rainwater harvesting into its design for Cliveden, a CDL condominium project and another 2007 Green Mark Platinum award winner.
On Cliveden's clubhouse, solar panels reduce energy dependence on the main grid, while a green roof not only helps to reduce heat inside the clubhouse but also the surrounding environment. The centre was planned as an educational centre for public awareness on using green power, said Mr Tang.
The condo collects rainwater from its roof and reuses it for landscaping, saving about 10 swimming pools of water a year. The total water and energy saved, about 30 per cent, is equivalent to saving 77,475 trees.
Another green building, from a water conservation point of view, is Temasek Polytechnic. The school installed a $1.6 million rainwater harvesting system when its 30 hectare campus was being built in the early 1990s, with the water used to for the school's extensive gardens.
Ultimately, though, the greenest of green architecture is conservation and restoration, because a lot of energy is required to knock down a building and erect a new one, architects say.
'Building is one of the most energy-intensive activities around', says Ms Heng. And ADDP's Mr Tang agrees. 'As an architect. you would like to preserve nature but it depends on the developers' needs,' he said. 'Buildings should be made to last more than 50 to 100 years.'
Commercial Unit, GCB For Sale By Tender
Source : The Business Times, April 22, 2008
A LARGE commercial unit at The Riverwalk, Upper Circular Road, is up for sale at an indicative price of $23 million.
The unit, which has a strata area of 20,161 sq ft that represents a 12.11 per cent ownership stake, is owned by private investors. The indicative price works out to about $1,140 per square foot.
CB Richard Ellis (CBRE), which is marketing the 99-year leasehold property, says rent of $5 to $6 per sq ft is being asked for comparable office space in the area. Assuming rent of $5.50 psf, the $1,140 psf guide price reflects a net yield of about 5.5 per cent.
The current lease expires in mid-July this year.
In March, a unit at High Street Centre was sold for about $1,500 psf.
CBRE associate director of investment properties Liau Wee Boon said of the Riverwalk unit: 'In addition, there is collective sale potential as the development is undergoing an en bloc exercise. The potential payout is more than 50 per cent above the guide price.'
The Riverwalk comprises 181 commercial units ranging from 54 sq ft to 20,161 sq ft, plus 118 apartments ranging from 818 sq ft to 3,821 sq ft, plus 290 parking lots. It was put up for collective sale late last year at an indicative price of about $700 million or $1,735 psf per plot ratio (psf ppr) and zoned for residential and commercial use.
Meanwhile, in the Victoria Park area off Holland Road, a good class bungalow (GCB) has been put up for sale by DTZ Debenham Tie Leung (DTZ).
The 999-year leasehold GCB sits on a site of 32,687 sq ft. DTZ said that a recent valuation put the value of the site at $26.5 million.
The land is now occupied by an old two-storey detached house with a garage and swimming pool.
DTZ said recent transactions of GCB land in the area include sites in Leedon Park for $914 psf and Victoria Park Road for $920 psf.
DTZ director (Investment Advisory Services) Quek Soh Hoon said: 'Given the positive attributes and distinctive location, the subject property would be an attractive and choice acquisition for high-net-worth individuals looking for land to build their dream house or investment property.'
A LARGE commercial unit at The Riverwalk, Upper Circular Road, is up for sale at an indicative price of $23 million.
The unit, which has a strata area of 20,161 sq ft that represents a 12.11 per cent ownership stake, is owned by private investors. The indicative price works out to about $1,140 per square foot.
CB Richard Ellis (CBRE), which is marketing the 99-year leasehold property, says rent of $5 to $6 per sq ft is being asked for comparable office space in the area. Assuming rent of $5.50 psf, the $1,140 psf guide price reflects a net yield of about 5.5 per cent.
The current lease expires in mid-July this year.
In March, a unit at High Street Centre was sold for about $1,500 psf.
CBRE associate director of investment properties Liau Wee Boon said of the Riverwalk unit: 'In addition, there is collective sale potential as the development is undergoing an en bloc exercise. The potential payout is more than 50 per cent above the guide price.'
The Riverwalk comprises 181 commercial units ranging from 54 sq ft to 20,161 sq ft, plus 118 apartments ranging from 818 sq ft to 3,821 sq ft, plus 290 parking lots. It was put up for collective sale late last year at an indicative price of about $700 million or $1,735 psf per plot ratio (psf ppr) and zoned for residential and commercial use.
Meanwhile, in the Victoria Park area off Holland Road, a good class bungalow (GCB) has been put up for sale by DTZ Debenham Tie Leung (DTZ).
The 999-year leasehold GCB sits on a site of 32,687 sq ft. DTZ said that a recent valuation put the value of the site at $26.5 million.
The land is now occupied by an old two-storey detached house with a garage and swimming pool.
DTZ said recent transactions of GCB land in the area include sites in Leedon Park for $914 psf and Victoria Park Road for $920 psf.
DTZ director (Investment Advisory Services) Quek Soh Hoon said: 'Given the positive attributes and distinctive location, the subject property would be an attractive and choice acquisition for high-net-worth individuals looking for land to build their dream house or investment property.'
Residential Sector Seen Taking Hit
Source : The Business Times, April 22, 2008
Prices expected to fall further, with the high-end most at risk due to a lack of foreigner interest
RESIDENTIAL markets across Asia are expected to take a hit in the wake of the credit crunch in the US. While the residential sectors in key Asian cities are forecast to continue to grow strongly, as they have since the start of 2007, equity bull markets were the main contributing factor to well-received launches last year, industry sources say. 'Without the sentiment that has pushed up capital values and rents of residential property across the region, there will obviously be some slackening,' a market player says.
However, the fundamentals of the region - including Singapore - are strong, which means residential markets should not take too hard a beating, analysts point out.
Dimmed prospects: The residential collective sales market virtually ground to a halt in Q1, with just one deal - that of Ban Guan Park for $31.1 million
'The story of real estate in Asia is one of continuing investment - particularly by foreigners. Occupier demand remains in place, and with limited supply in most developing cities, the future looks fine,' property firm Cushman & Wakefield (C&W) says in a recent report.
The report notes, however, that Hong Kong and Singapore are the two cities expected to be most affected by the credit crunch and global economic slowdown
In Singapore, the impact on the residential market is already being felt, with slowing sales and price cuts.
The number of new homes sold in the first quarter of 2008 was 787, or about half the 1,449 sold in the previous quarter, official data shows.
DTZ Debenham Tie Leung, for one, points out that the numbers represent the second-lowest quarter of developer sales since Sars-hit Q1 2003.
The lacklustre performance is expected to continue, say property analysts.
'The current market sentiment is likely to continue into the second quarter,' says Li Hiaw Ho, executive director for research at CB Richard Ellis (CBRE).
Nicholas Mak, director of research and consultancy at Knight Frank, agrees. 'Sales are expected to stay thin in the coming few months due to the continuing uncertainty about the US economic outlook and financial market problems. Home-buyers, especially in the mass-market segment, are expected to remain cautious until there is a sustained recovery in financial markets and economic conditions, which would spill over to the property market.'
Interestingly, news has emerged that some developers are starting to cut their prices - a sure sign of weakening market sentiment.
A recent media report says property heavyweight Far East Organization has achieved encouraging sales for three 99-year leasehold suburban projects - after it trimmed their prices 3-5 per cent after the Chinese New Year.
'If the credit crisis or economic slowdown deepens, launches and take-up would remain subdued and prices are likely to ease,' according to DTZ. 'Some smaller developers have lowered prices to dispose of their units and this may spread as the residential property market is largely affected by sentiments.'
UBS Investment Research notes similarly that it expects mass-market projects to be launched at lower-than-expected prices. Sentosa Cove prices have also fallen - 13-20 per cent in Q1 2008, potentially wiping out the profit of Sentosa sites bought by SC Global and Ho Bee, UBS notes.
'We expect the negative news to motivate sellers to close the wide bid-ask spreads and home prices to fall further, with high-end prices most at risk due to a lack of foreigner interest,' UBS analyst Regina Lim says in a recent note.
Her research team has downgraded its residential price forecasts for 2008 and 2009 by as much as 20 per cent - expecting prices in prime and mid-range segments to fall 20 per cent and 10 per cent respectively. Mass-market prices are expected to hold steady.
Rent increases for private residential property are also likely to moderate due to budget constraints and the slower influx of expatriates, analysts say.
And residential investment sales also fell hard in Q1 2008, data from property firm Colliers International shows.
'Investment sales value dipped some 35.7 per cent in Q1 2008 to $2.27 billion, from $3.54 billion in the preceding quarter,' the firm says.
Colliers notes, in particular, that the residential collective sales market virtually ground to a halt in Q1, with just one deal - that of Ban Guan Park for $31.1 million or $871 per square foot per plot ratio. This was a big slide from $1.16 billion sealed in Q4 2007 from 10 collective sale sites, and a dramatic plunge from 41 collective sale transactions totalling some $6.53 billion sealed during the peak in Q2 2007.
Despite all the negative news, there seems to be some optimism. DBS Group Research, for example, recently upgraded its call on the Singapore property sector from 'neutral' to 'overweight'.
But many are taking a wait-and-see approach to the market, including the residential segment.
'We believe Singapore's property secular uptrend is still intact, thanks to its ongoing efforts to transform itself into a globalised city-state,' says DBS Vickers Securities analyst Lock Mun Yee. 'However, in the near term, spillover uncertainties from the credit crunch and talks of a possible US recession have affected sentiment.'
According to Margaret Thean, DTZ's executive director for residential: 'It is still too early to gauge the residential sector performance as this is just the first quarter.'
Prices expected to fall further, with the high-end most at risk due to a lack of foreigner interest
RESIDENTIAL markets across Asia are expected to take a hit in the wake of the credit crunch in the US. While the residential sectors in key Asian cities are forecast to continue to grow strongly, as they have since the start of 2007, equity bull markets were the main contributing factor to well-received launches last year, industry sources say. 'Without the sentiment that has pushed up capital values and rents of residential property across the region, there will obviously be some slackening,' a market player says.
However, the fundamentals of the region - including Singapore - are strong, which means residential markets should not take too hard a beating, analysts point out.
Dimmed prospects: The residential collective sales market virtually ground to a halt in Q1, with just one deal - that of Ban Guan Park for $31.1 million'The story of real estate in Asia is one of continuing investment - particularly by foreigners. Occupier demand remains in place, and with limited supply in most developing cities, the future looks fine,' property firm Cushman & Wakefield (C&W) says in a recent report.
The report notes, however, that Hong Kong and Singapore are the two cities expected to be most affected by the credit crunch and global economic slowdown
In Singapore, the impact on the residential market is already being felt, with slowing sales and price cuts.
The number of new homes sold in the first quarter of 2008 was 787, or about half the 1,449 sold in the previous quarter, official data shows.
DTZ Debenham Tie Leung, for one, points out that the numbers represent the second-lowest quarter of developer sales since Sars-hit Q1 2003.
The lacklustre performance is expected to continue, say property analysts.
'The current market sentiment is likely to continue into the second quarter,' says Li Hiaw Ho, executive director for research at CB Richard Ellis (CBRE).
Nicholas Mak, director of research and consultancy at Knight Frank, agrees. 'Sales are expected to stay thin in the coming few months due to the continuing uncertainty about the US economic outlook and financial market problems. Home-buyers, especially in the mass-market segment, are expected to remain cautious until there is a sustained recovery in financial markets and economic conditions, which would spill over to the property market.'
Interestingly, news has emerged that some developers are starting to cut their prices - a sure sign of weakening market sentiment.
A recent media report says property heavyweight Far East Organization has achieved encouraging sales for three 99-year leasehold suburban projects - after it trimmed their prices 3-5 per cent after the Chinese New Year.
'If the credit crisis or economic slowdown deepens, launches and take-up would remain subdued and prices are likely to ease,' according to DTZ. 'Some smaller developers have lowered prices to dispose of their units and this may spread as the residential property market is largely affected by sentiments.'
UBS Investment Research notes similarly that it expects mass-market projects to be launched at lower-than-expected prices. Sentosa Cove prices have also fallen - 13-20 per cent in Q1 2008, potentially wiping out the profit of Sentosa sites bought by SC Global and Ho Bee, UBS notes.
'We expect the negative news to motivate sellers to close the wide bid-ask spreads and home prices to fall further, with high-end prices most at risk due to a lack of foreigner interest,' UBS analyst Regina Lim says in a recent note.
Her research team has downgraded its residential price forecasts for 2008 and 2009 by as much as 20 per cent - expecting prices in prime and mid-range segments to fall 20 per cent and 10 per cent respectively. Mass-market prices are expected to hold steady.
Rent increases for private residential property are also likely to moderate due to budget constraints and the slower influx of expatriates, analysts say.
And residential investment sales also fell hard in Q1 2008, data from property firm Colliers International shows.
'Investment sales value dipped some 35.7 per cent in Q1 2008 to $2.27 billion, from $3.54 billion in the preceding quarter,' the firm says.
Colliers notes, in particular, that the residential collective sales market virtually ground to a halt in Q1, with just one deal - that of Ban Guan Park for $31.1 million or $871 per square foot per plot ratio. This was a big slide from $1.16 billion sealed in Q4 2007 from 10 collective sale sites, and a dramatic plunge from 41 collective sale transactions totalling some $6.53 billion sealed during the peak in Q2 2007.
Despite all the negative news, there seems to be some optimism. DBS Group Research, for example, recently upgraded its call on the Singapore property sector from 'neutral' to 'overweight'.
But many are taking a wait-and-see approach to the market, including the residential segment.
'We believe Singapore's property secular uptrend is still intact, thanks to its ongoing efforts to transform itself into a globalised city-state,' says DBS Vickers Securities analyst Lock Mun Yee. 'However, in the near term, spillover uncertainties from the credit crunch and talks of a possible US recession have affected sentiment.'
According to Margaret Thean, DTZ's executive director for residential: 'It is still too early to gauge the residential sector performance as this is just the first quarter.'
Act Fast Or Face Deep Recession: Tony Tan
Source : The Business Times, April 22, 2008
World could see worst recession in 30 years unless policymakers intervene urgently
The global economy will run into even more turbulence if policy makers don't act quickly and decisively to ease the credit crunch spilling over from the United States, says the Government of Singapore Investment Corp (GIC).
But the sovereign wealth fund is standing by its substantial investments in UBS and Citigroup after the sub-prime crisis ravaged the two mega banks.
Dr Tan: 'I am confident GIC will emerge stronger and more resilient, and take its place as one of the most competent and respected investment bodies in the world.'
Speaking to some 1,000 employees at the inaugural GIC Staff Conference yesterday, GIC deputy chairman and executive director Tony Tan warned that the world may face a recession 'longer, deeper and wider than any we have encountered in the past 30 years'.
'We are entering a period of extreme uncertainty in the world economy and global financial markets. As banks continue to de-leverage, cutting their lending activities and causing a contraction in credit supply, the prospects for the US economy - and possibly the world economy - are fraught with downside risks.'
But Dr Tan believes the economic downturn can be mitigated if the authorities in the US and elsewhere take decisive and timely action. 'If policymakers respond strongly and appropriately, investment markets and sentiments can turn around sharply.
'However, if such actions by the authorities are not taken within the next 3-4 months, it will be left to the market forces of supply and demand to stabilise the US housing market before we can see the light at the end of the tunnel. This will be a considerably more painful and long-drawn process.'
Despite the uncertainty, GIC is standing by its decision to invest billions of dollars in troubled banks UBS and Citigroup.
'We regard our investments in UBS and Citicorp as long-term investments that will give us good returns when markets stabilise and economic conditions return to more normal levels,' Dr Tan said.
GIC pumped 11 billion Swiss francs (S$14.7 billion) into UBS last December via a convertible bond issue that would eventually give it a stake in the bank. It has also not ruled out injecting more cash into UBS, which is looking to raise 15 billion Swiss francs through a rights issue, after reporting a second straight quarterly loss this month. GIC has said that it would examine the terms of the rights issue before deciding.
GIC also invested US$6.88 billion in Citigroup in January this year through a private offering of convertible preferred securities.
Dr Tan yesterday reiterated that GIC was able to make such investments because it was well prepared for the current credit crisis.
'We had moved to a more conservative posture in our portfolio by liquidating a portion of our equity holdings in the third quarter of 2007 and moving into cash - a measure we had not taken for quite some time. This provided us the liquidity to make substantial investments in UBS and Citicorp when these opportunities arose.'
He added, however, that financial and investment markets would be nervous and volatile over the next 1-2 years.
'Instead of the rising tide that broadly benefited financial and investment markets for the past 10-20 years, we are now facing choppy seas that could engulf the broader economy globally. Policymakers, business managers and investors will require fortitude and nimbleness to navigate safely through the turbulence.'
Still, he expressed optimism for GIC's future. 'Working together as a team and with the right policies, we will successfully navigate the treacherous currents that lie ahead with sufficient ballast to be able to take advantage of opportunities as they arise. When this turbulent period is over, I am confident that GIC will emerge stronger and more resilient and take its place as one of the most competent and respected investment organisations in the world.'
Dr Tan's speech yesterday to staff and the media, at Swissotel The Stamford, is seen as part of GIC's efforts to be more open about its investments. Set up in 1981 to manage Singapore's foreign reserves, the company is not required to give the same level of detail about its activities as a publicly listed company. But it has made overtures in recent months to be more transparent, without compromising its competitiveness.
GIC is the world's third- largest sovereign wealth fund, with US$330 billion in assets under management, according to Morgan Stanley in February. It ranks behind the Abu Dhabi Investment Authority with US$875 billion and Norway's Government Pension Fund with US$380 billion.
World could see worst recession in 30 years unless policymakers intervene urgently
The global economy will run into even more turbulence if policy makers don't act quickly and decisively to ease the credit crunch spilling over from the United States, says the Government of Singapore Investment Corp (GIC).
But the sovereign wealth fund is standing by its substantial investments in UBS and Citigroup after the sub-prime crisis ravaged the two mega banks.
Dr Tan: 'I am confident GIC will emerge stronger and more resilient, and take its place as one of the most competent and respected investment bodies in the world.'Speaking to some 1,000 employees at the inaugural GIC Staff Conference yesterday, GIC deputy chairman and executive director Tony Tan warned that the world may face a recession 'longer, deeper and wider than any we have encountered in the past 30 years'.
'We are entering a period of extreme uncertainty in the world economy and global financial markets. As banks continue to de-leverage, cutting their lending activities and causing a contraction in credit supply, the prospects for the US economy - and possibly the world economy - are fraught with downside risks.'
But Dr Tan believes the economic downturn can be mitigated if the authorities in the US and elsewhere take decisive and timely action. 'If policymakers respond strongly and appropriately, investment markets and sentiments can turn around sharply.
'However, if such actions by the authorities are not taken within the next 3-4 months, it will be left to the market forces of supply and demand to stabilise the US housing market before we can see the light at the end of the tunnel. This will be a considerably more painful and long-drawn process.'
Despite the uncertainty, GIC is standing by its decision to invest billions of dollars in troubled banks UBS and Citigroup.
'We regard our investments in UBS and Citicorp as long-term investments that will give us good returns when markets stabilise and economic conditions return to more normal levels,' Dr Tan said.
GIC pumped 11 billion Swiss francs (S$14.7 billion) into UBS last December via a convertible bond issue that would eventually give it a stake in the bank. It has also not ruled out injecting more cash into UBS, which is looking to raise 15 billion Swiss francs through a rights issue, after reporting a second straight quarterly loss this month. GIC has said that it would examine the terms of the rights issue before deciding.
GIC also invested US$6.88 billion in Citigroup in January this year through a private offering of convertible preferred securities.
Dr Tan yesterday reiterated that GIC was able to make such investments because it was well prepared for the current credit crisis.
'We had moved to a more conservative posture in our portfolio by liquidating a portion of our equity holdings in the third quarter of 2007 and moving into cash - a measure we had not taken for quite some time. This provided us the liquidity to make substantial investments in UBS and Citicorp when these opportunities arose.'
He added, however, that financial and investment markets would be nervous and volatile over the next 1-2 years.
'Instead of the rising tide that broadly benefited financial and investment markets for the past 10-20 years, we are now facing choppy seas that could engulf the broader economy globally. Policymakers, business managers and investors will require fortitude and nimbleness to navigate safely through the turbulence.'
Still, he expressed optimism for GIC's future. 'Working together as a team and with the right policies, we will successfully navigate the treacherous currents that lie ahead with sufficient ballast to be able to take advantage of opportunities as they arise. When this turbulent period is over, I am confident that GIC will emerge stronger and more resilient and take its place as one of the most competent and respected investment organisations in the world.'
Dr Tan's speech yesterday to staff and the media, at Swissotel The Stamford, is seen as part of GIC's efforts to be more open about its investments. Set up in 1981 to manage Singapore's foreign reserves, the company is not required to give the same level of detail about its activities as a publicly listed company. But it has made overtures in recent months to be more transparent, without compromising its competitiveness.
GIC is the world's third- largest sovereign wealth fund, with US$330 billion in assets under management, according to Morgan Stanley in February. It ranks behind the Abu Dhabi Investment Authority with US$875 billion and Norway's Government Pension Fund with US$380 billion.
Buyers, Sellers Call Off Collective Sale Of Finland Gardens
Source : The Straits Times, Apr 22, 2008
Buyers, sellers call off collective sale of Finland Gardens; Both sides decide to let deal die; developer said to be bearing most of legal costs
ANOTHER collective sale has fallen through. This time, however, there were smiles all around - a reflection of how sharply sentiment has changed in the property market.
Both the majority sellers at Finland Gardens in Siglap and the intended buyer, Sing Holdings, agreed yesterday it would be best to just let the deal die. And the minority sellers, who were against it from Day One, were thrilled.
The sellers rung the death knell when they halted a High Court appeal yesterday.
They went to court last year to overturn a Strata Titles Board (STB) decision made in November last year.
The STB had thrown out the $49.5 million sale, ruling the deal lacked 80 per cent approval and that the price had not been obtained in good faith.
Sing Holdings initially backed the court appeal but withdrew yesterday its application to intervene in the appeal.
Managing director Lee Sze Hao said Sing Holdings told the sellers late last week that Sing Holdings no longer wanted them to continue with the appeal.
'The key determining reason for us is the uncertainty of the timing of the sale and market conditions,' said Mr Lee.
He added that the sale had dragged on for a long time and, considering market uncertainties ahead, it did not make sense to continue waiting.
The Sing Holdings statement said it considered uncertainties over the time needed to procure the order for the sale and market conditions, coupled with the rising costs of construction.
The sellers from 40 units met on Saturday. 'We agreed to the buyer's request to call off the deal amicably,' sales committee chairman Song Koon Poh told The Straits Times. 'Current market prices for our estate are still favourable... and the long waiting time has worn everyone down.
'We don't know how long this will drag on. Assuming the appeal is successful, we will need three months for final completion and another six months to vacate.'
The developer is said to be bearing most of the legal costs.
The minority owners, who fought hard against the sale and won the STB decision last year, were happy that it was over.
The deal for the freehold estate, with 48 units of walk-up flats, is now off. The move comes amid a flat market for private homes, with both buyers and sellers now cautious.
Sing Holdings bought the 98,309 sq ft Finland Gardens for $504 per sq ft on the land area in November 2006, just before prices surged in the first half of last year.
When the estate was launched for sale in July 2006, the owners were hoping for between $50 million and $55 million.
Meanwhile, Sing Holdings has completed the purchase of two collective sale sites - Bellerive and Hillcourt Apartments. Both are at the demolition stage.
Buyers, sellers call off collective sale of Finland Gardens; Both sides decide to let deal die; developer said to be bearing most of legal costs
ANOTHER collective sale has fallen through. This time, however, there were smiles all around - a reflection of how sharply sentiment has changed in the property market.
Both the majority sellers at Finland Gardens in Siglap and the intended buyer, Sing Holdings, agreed yesterday it would be best to just let the deal die. And the minority sellers, who were against it from Day One, were thrilled.
The sellers rung the death knell when they halted a High Court appeal yesterday.
They went to court last year to overturn a Strata Titles Board (STB) decision made in November last year.
The STB had thrown out the $49.5 million sale, ruling the deal lacked 80 per cent approval and that the price had not been obtained in good faith.
Sing Holdings initially backed the court appeal but withdrew yesterday its application to intervene in the appeal.
Managing director Lee Sze Hao said Sing Holdings told the sellers late last week that Sing Holdings no longer wanted them to continue with the appeal.
'The key determining reason for us is the uncertainty of the timing of the sale and market conditions,' said Mr Lee.
He added that the sale had dragged on for a long time and, considering market uncertainties ahead, it did not make sense to continue waiting.
The Sing Holdings statement said it considered uncertainties over the time needed to procure the order for the sale and market conditions, coupled with the rising costs of construction.
The sellers from 40 units met on Saturday. 'We agreed to the buyer's request to call off the deal amicably,' sales committee chairman Song Koon Poh told The Straits Times. 'Current market prices for our estate are still favourable... and the long waiting time has worn everyone down.
'We don't know how long this will drag on. Assuming the appeal is successful, we will need three months for final completion and another six months to vacate.'
The developer is said to be bearing most of the legal costs.
The minority owners, who fought hard against the sale and won the STB decision last year, were happy that it was over.
The deal for the freehold estate, with 48 units of walk-up flats, is now off. The move comes amid a flat market for private homes, with both buyers and sellers now cautious.
Sing Holdings bought the 98,309 sq ft Finland Gardens for $504 per sq ft on the land area in November 2006, just before prices surged in the first half of last year.
When the estate was launched for sale in July 2006, the owners were hoping for between $50 million and $55 million.
Meanwhile, Sing Holdings has completed the purchase of two collective sale sites - Bellerive and Hillcourt Apartments. Both are at the demolition stage.
World 'May Face Deepest Recession In 30 Years'
Source : The Straits Times, Apr 22, 2008
But govts can lessen the pain by acting swiftly to stabilise markets: Tony Tan
THE world could be facing its worst recession in three decades, but governments can lessen the effects of the downturn if they act decisively within the next three to four months.
The warning came from Dr Tony Tan, the deputy chairman of the Government of Singapore Investment Corporation (GIC), who urged policymakers to take strong action to stabilise investment markets and sentiment amid the extreme uncertainty surrounding the global economy.
'We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,' he said yesterday.
'The next few years may well be among the most challenging years for GIC since our establishment in 1981.'
As for the GIC's recent investments in global banks UBS and Citigroup, Dr Tan said these long-term investments will 'give us good returns when markets stabilise and economic conditions return to more normal levels'.
The world economy and its financial markets are in turmoil, triggered by a mortgage crisis in the United States that is still unfolding.
The crisis of confidence has led central banks, especially the US Federal Reserve, to intervene in unprecedented ways to avert a seizure in the world's banking system.
Dr Tan told about 500 staff at the GIC's first annual staff conference: 'The prospects for the US economy and possibly even the world economy are fraught with considerable downside risks.'
He warned that financial markets will be 'extremely nervous and volatile over the next one to two years'.
But the pain can be reduced and shortened if policymakers around the world act swiftly, he said. By doing so, 'investment markets and sentiments can turn around sharply'.
The alternative is that market forces would be left to themselves to stabilise the US housing sector, which would be a 'considerably more painful and long-drawn process'.
Dr Tan said the GIC has been alert to the prospect of the current problems since last year and moved its portfolio to a more conservative posture by selling some shares and holding on to the cash.
Such a move, said Dr Tan, had not been taken for 'quite some time'. And it provided liquidity for the GIC's subsequent investments into UBS and Citigroup.
The GIC has beefed up its management structure over the past nine months. After creating four senior posts in July last year, the GIC set up three group-level committees to oversee operations, investments and risks across its three main units.
The management committee is helmed by managing director Lim Siong Guan and looks into organisational, business and personnel issues.
The investment committee is charged with developing and implementing asset allocation policies and investment strategies. Led by chief investment officer Ng Kok Song, it also does regular reviews of the risk and performance of the GIC's various investments.
Finally, the risk committee provides oversight and guidance for the GIC's risk management policies and practices. It is led by chief risk officer Sung Cheng Chih.
Mr Ng's and Dr Sung's appointments were two of the new posts created last July. The other appointments were for GIC's asset management arm. GIC managing director Lee Ek Tieng was made chairman of the subsidiary and Mr Quah Wee Ghee, president.
'This management structure enables GIC to have groupwide oversight on our operations, investments and risks,' said Dr Tan.
But it also gives sufficient autonomy to the GIC's investment subsidiaries - asset management, real estate and special investments - so that they can respond in a timely fashion to changes in investment circumstances, he added.
CHALLENGES AHEAD
'The next few years may well be among the most challenging years for GIC since our establishment in 1981.' - DR TONY TAN, GIC's deputy chairman, who said prospects for the US economy and possibly world economy are fraught with downside risks
LONG-TERM INVESTMENT
Dr Tan said the GIC's recent investments in Citigroup and UBS will give 'good returns when markets stabilise and economic conditions return to more normal levels'.
But govts can lessen the pain by acting swiftly to stabilise markets: Tony Tan
THE world could be facing its worst recession in three decades, but governments can lessen the effects of the downturn if they act decisively within the next three to four months.
The warning came from Dr Tony Tan, the deputy chairman of the Government of Singapore Investment Corporation (GIC), who urged policymakers to take strong action to stabilise investment markets and sentiment amid the extreme uncertainty surrounding the global economy. 'We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,' he said yesterday.
'The next few years may well be among the most challenging years for GIC since our establishment in 1981.'
As for the GIC's recent investments in global banks UBS and Citigroup, Dr Tan said these long-term investments will 'give us good returns when markets stabilise and economic conditions return to more normal levels'.
The world economy and its financial markets are in turmoil, triggered by a mortgage crisis in the United States that is still unfolding.
The crisis of confidence has led central banks, especially the US Federal Reserve, to intervene in unprecedented ways to avert a seizure in the world's banking system.
Dr Tan told about 500 staff at the GIC's first annual staff conference: 'The prospects for the US economy and possibly even the world economy are fraught with considerable downside risks.'
He warned that financial markets will be 'extremely nervous and volatile over the next one to two years'.
But the pain can be reduced and shortened if policymakers around the world act swiftly, he said. By doing so, 'investment markets and sentiments can turn around sharply'.
The alternative is that market forces would be left to themselves to stabilise the US housing sector, which would be a 'considerably more painful and long-drawn process'.
Dr Tan said the GIC has been alert to the prospect of the current problems since last year and moved its portfolio to a more conservative posture by selling some shares and holding on to the cash.
Such a move, said Dr Tan, had not been taken for 'quite some time'. And it provided liquidity for the GIC's subsequent investments into UBS and Citigroup.
The GIC has beefed up its management structure over the past nine months. After creating four senior posts in July last year, the GIC set up three group-level committees to oversee operations, investments and risks across its three main units.
The management committee is helmed by managing director Lim Siong Guan and looks into organisational, business and personnel issues.
The investment committee is charged with developing and implementing asset allocation policies and investment strategies. Led by chief investment officer Ng Kok Song, it also does regular reviews of the risk and performance of the GIC's various investments.
Finally, the risk committee provides oversight and guidance for the GIC's risk management policies and practices. It is led by chief risk officer Sung Cheng Chih.
Mr Ng's and Dr Sung's appointments were two of the new posts created last July. The other appointments were for GIC's asset management arm. GIC managing director Lee Ek Tieng was made chairman of the subsidiary and Mr Quah Wee Ghee, president.
'This management structure enables GIC to have groupwide oversight on our operations, investments and risks,' said Dr Tan.
But it also gives sufficient autonomy to the GIC's investment subsidiaries - asset management, real estate and special investments - so that they can respond in a timely fashion to changes in investment circumstances, he added.
CHALLENGES AHEAD
'The next few years may well be among the most challenging years for GIC since our establishment in 1981.' - DR TONY TAN, GIC's deputy chairman, who said prospects for the US economy and possibly world economy are fraught with downside risks
LONG-TERM INVESTMENT
Dr Tan said the GIC's recent investments in Citigroup and UBS will give 'good returns when markets stabilise and economic conditions return to more normal levels'.
K-REIT Asia's Q1 Distributable Income Up 166% To S$11.4m On-Year
Source : Channel NewsAsia, 21 April 2008
K-REIT Asia has booked a first quarter distributable income of S$11.4 million, up 166 per cent from the same period a year ago.
The jump was mainly due to contributions from its one-third interest in One Raffles Quay, which was acquired in December 2007.
K-REIT said it saw strong rental and occupancy rates.
The company is hoping to raise almost S$552 million through a rights issue in March. Proceeds of the rights issue will be used to repay the loan for its stake in One Raffles Quay.
For the first quarter ended March, K-REIT Asia will distribute S$0.046 per unit.
K-REIT Asia's portfolio includes Prudential Tower, Keppel Towers, GE Tower, Bugis Junction Towers and one-third interest in One Raffles Quay, which were worth a total of S$2.1 billion as of December 2007. - CNA/ac
K-REIT Asia has booked a first quarter distributable income of S$11.4 million, up 166 per cent from the same period a year ago.
The jump was mainly due to contributions from its one-third interest in One Raffles Quay, which was acquired in December 2007. K-REIT said it saw strong rental and occupancy rates.
The company is hoping to raise almost S$552 million through a rights issue in March. Proceeds of the rights issue will be used to repay the loan for its stake in One Raffles Quay.
For the first quarter ended March, K-REIT Asia will distribute S$0.046 per unit.
K-REIT Asia's portfolio includes Prudential Tower, Keppel Towers, GE Tower, Bugis Junction Towers and one-third interest in One Raffles Quay, which were worth a total of S$2.1 billion as of December 2007. - CNA/ac
KepLand Secures Option To Develop Residential Site In Vietnam
Source : Channel NewsAsia, 21 April 2008
Property developer Keppel Land has secured an option to develop a residential site in Vietnam's Ho Chi Minh City.
The project is estimated to cost US$390 million.
Keppel Land signed the agreement through its wholly-owned subsidiary Earlsbay Investments.
Under the deal, the Singapore developer will hold a 60 percent stake, while local property developer Hong Quang takes on the remaining interest.
The project is expected to be launched next year and is targeted at the upper middle market.
The development is expected to yield 1,500 luxury apartments.
Keppel Land is one of the largest real estate investors in Vietnam.
Its portfolio there ranges from office developments and residential properties to serviced apartments. - CNA/ms
Property developer Keppel Land has secured an option to develop a residential site in Vietnam's Ho Chi Minh City.
The project is estimated to cost US$390 million.
Keppel Land signed the agreement through its wholly-owned subsidiary Earlsbay Investments. Under the deal, the Singapore developer will hold a 60 percent stake, while local property developer Hong Quang takes on the remaining interest.
The project is expected to be launched next year and is targeted at the upper middle market.
The development is expected to yield 1,500 luxury apartments.
Keppel Land is one of the largest real estate investors in Vietnam.
Its portfolio there ranges from office developments and residential properties to serviced apartments. - CNA/ms
IMF Says Asia Less Vulnerable To Shocks In Global Market
Source : Channel NewsAsia, 21 April 2008
In light of the ongoing sub-prime mortgage crisis in the United States, major global agencies have relooked their forecasts for this year.
.jpg)
According to the latest World Economic Report, the International Monetary Fund (IMF) is predicting a 3.7 percent growth in the global economy this year, down from a 4.9 percent expansion in 2007.
The IMF has also downgraded its growth projections for Singapore to just 4 percent this year.
It also said home prices in the US could see a further slide. Charles Collyns, Deputy Director, Research Department, IMF, said: "We are more concerned about the household sectors because of the impact of the housing correction.
"We've seen a 10 percent reduction in house prices on the index last year and another 10 percent could be on the way this year. That's a 20 percent reduction in housing prices and that will have an effect on household balance sheet and will tend to dampen household's willingness to spend going ahead."
According to the IMF, this will have a deep impact on the US economy and could even lead to a contraction. It has projected that the US is likely to face a mild recession this year, with a possible recovery towards the end of 2009.
Although there are some downside risks, the IMF said according to its forecast, there is only a one-in-four chance of a global recession. That is partly because growth in Asia is expected to hold up, albeit at a slower pace.
For Singapore, the IMF has cut its 2008 growth projections from 5.8 percent to 4 percent.
On the whole, it said emerging Asia will be less vulnerable to shocks in the market, compared to a decade ago.
Ranil Salgado, Resident Representative, Singapore, Asia & Pacific Department, IMF, said: "Most of these countries run substantial trade surpluses and they have large foreign reserves... Policy steps in Asia have created some space for policy adjustments in the event that large downside risks do materialise."
Besides the slowdown in the US, the IMF has warned that Asian economies need to address the concerns of inflationary pressures on food and oil. This includes re-thinking biofuel policies and boosting agricultural output to meet rising demand. - CNA/so
In light of the ongoing sub-prime mortgage crisis in the United States, major global agencies have relooked their forecasts for this year.
.jpg)
According to the latest World Economic Report, the International Monetary Fund (IMF) is predicting a 3.7 percent growth in the global economy this year, down from a 4.9 percent expansion in 2007. The IMF has also downgraded its growth projections for Singapore to just 4 percent this year.
It also said home prices in the US could see a further slide. Charles Collyns, Deputy Director, Research Department, IMF, said: "We are more concerned about the household sectors because of the impact of the housing correction.
"We've seen a 10 percent reduction in house prices on the index last year and another 10 percent could be on the way this year. That's a 20 percent reduction in housing prices and that will have an effect on household balance sheet and will tend to dampen household's willingness to spend going ahead."
According to the IMF, this will have a deep impact on the US economy and could even lead to a contraction. It has projected that the US is likely to face a mild recession this year, with a possible recovery towards the end of 2009.
Although there are some downside risks, the IMF said according to its forecast, there is only a one-in-four chance of a global recession. That is partly because growth in Asia is expected to hold up, albeit at a slower pace.
For Singapore, the IMF has cut its 2008 growth projections from 5.8 percent to 4 percent.
On the whole, it said emerging Asia will be less vulnerable to shocks in the market, compared to a decade ago.
Ranil Salgado, Resident Representative, Singapore, Asia & Pacific Department, IMF, said: "Most of these countries run substantial trade surpluses and they have large foreign reserves... Policy steps in Asia have created some space for policy adjustments in the event that large downside risks do materialise."
Besides the slowdown in the US, the IMF has warned that Asian economies need to address the concerns of inflationary pressures on food and oil. This includes re-thinking biofuel policies and boosting agricultural output to meet rising demand. - CNA/so
World May Face Deepest Recession In 30 years
Source : The Straits Times, Apr 21, 2008
GIC's deputy chairman Tony Tan warns of its biggest challenge yet
THE world could be facing its worst recession in three decades but governments can lessen the effects of the downturn if they act decisively within the next three to four months.
.jpg)
The warning came from the deputy chairman of the Government of Singapore Investment Corp (GIC), Dr Tony Tan, who urged policymakers to take strong action to stabilise investment markets and sentiment amid the extreme uncertainty surrounding the global economy.
'We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,' he said on Monday.
'The next few years may well be among the most challenging years for GIC since our establishment in 1981.'
As for GIC's recent investments into global banks UBS and Citigroup, Dr Tan said these long-term investments will 'give us good returns when markets stabilise and economic conditions return to more normal levels'.
The world economy and its financial markets are in turmoil, sparked off by a mortgage crisis in the United States that is still unfolding.
The crisis of confidence has led central banks, especially the US Federal Reserve, to intervene in unprecedented ways to avert a seizure in the world's banking system.
Dr Tan told about 500 staff at GIC's first annual staff conference: 'The prospects for the US economy and possibly even the world economy are fraught with considerable downside risks.'
He warned that financial markets will be 'extremely nervous and volatile over the next one to two years'.
But the pain can be reduced and shortened if policymakers around the world act swiftly, he said. If so, 'investment markets and sentiments can turn around sharply'.
Related Video - http://tinyurl.com/69h5ed
GIC warns of 'longer, deeper, wider' recession
Singapore Government Investment Corporation or GIC has pointed to a likely global financial crisis and recession this year.
Speaking at a staff meeting, GIC Deputy Chairman Tony Tan said however that the GIC is well prepared as it had moved to a more conservative posture in its portfolio by liquidating a portion of its equity holdings.
This provided the investment giant with the liquidity to take a substantial stake in global banks UBS and Citigroup.
Dr Tan pointed out that these investments are long term ones which will give the GIC good returns when the markets stabilise and economic conditions return to more normal levels.
Read the full report in Tuesday's edition of The Straits Times
GIC's deputy chairman Tony Tan warns of its biggest challenge yet
THE world could be facing its worst recession in three decades but governments can lessen the effects of the downturn if they act decisively within the next three to four months.
.jpg)
The warning came from the deputy chairman of the Government of Singapore Investment Corp (GIC), Dr Tony Tan, who urged policymakers to take strong action to stabilise investment markets and sentiment amid the extreme uncertainty surrounding the global economy. 'We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years,' he said on Monday.
'The next few years may well be among the most challenging years for GIC since our establishment in 1981.'
As for GIC's recent investments into global banks UBS and Citigroup, Dr Tan said these long-term investments will 'give us good returns when markets stabilise and economic conditions return to more normal levels'.
The world economy and its financial markets are in turmoil, sparked off by a mortgage crisis in the United States that is still unfolding.
The crisis of confidence has led central banks, especially the US Federal Reserve, to intervene in unprecedented ways to avert a seizure in the world's banking system.
Dr Tan told about 500 staff at GIC's first annual staff conference: 'The prospects for the US economy and possibly even the world economy are fraught with considerable downside risks.'
He warned that financial markets will be 'extremely nervous and volatile over the next one to two years'.
But the pain can be reduced and shortened if policymakers around the world act swiftly, he said. If so, 'investment markets and sentiments can turn around sharply'.
Related Video - http://tinyurl.com/69h5edGIC warns of 'longer, deeper, wider' recession
Singapore Government Investment Corporation or GIC has pointed to a likely global financial crisis and recession this year.
Speaking at a staff meeting, GIC Deputy Chairman Tony Tan said however that the GIC is well prepared as it had moved to a more conservative posture in its portfolio by liquidating a portion of its equity holdings.
This provided the investment giant with the liquidity to take a substantial stake in global banks UBS and Citigroup.
Dr Tan pointed out that these investments are long term ones which will give the GIC good returns when the markets stabilise and economic conditions return to more normal levels.
Read the full report in Tuesday's edition of The Straits Times
CapitaLand, Abu Dhabi's Mubadala Join Hands To Develop Properties
Source : Channel NewsAsia, 21 April 2008
Property developer CapitaLand is joining hands with Mubadala Development to invest in the property sector in Abu Dhabi.
The two partners have launched a joint venture company called Capitala. They are pumping in US$300 million into the joint venture.
Mubadala Development will hold a 51 percent stake, with CapitaLand holding the remaining 49 percent.
Capitala will develop mainly residential properties in Abu Dhabi.
Its flagship project, with a total project cost of US$4 billion to US$5 billion, is a mixed-use integrated development surrounding the Zayed Sports City Stadium.
Mubadala Development is a wholly-owned investment firm of the Abu Dhabi government. - CNA/ms
Property developer CapitaLand is joining hands with Mubadala Development to invest in the property sector in Abu Dhabi.
The two partners have launched a joint venture company called Capitala. They are pumping in US$300 million into the joint venture. Mubadala Development will hold a 51 percent stake, with CapitaLand holding the remaining 49 percent.
Capitala will develop mainly residential properties in Abu Dhabi.
Its flagship project, with a total project cost of US$4 billion to US$5 billion, is a mixed-use integrated development surrounding the Zayed Sports City Stadium.
Mubadala Development is a wholly-owned investment firm of the Abu Dhabi government. - CNA/ms
GIC Says World Could Be Facing Worst Recession In 30 Years
Source : Channel NewsAsia, 21 April 2008
The world could be facing its worst recession in 30 years, said Deputy Chairman and Executive Director of the Government of Singapore Investment Corp (GIC) Dr Tony Tan.
He shared this view with over 500 GIC staff at a conference on Monday.
Government of Singapore Investment Corporation
"The financial contagion has now spread beyond US shores, increasing the likelihood of a global financial crisis and recession. We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years," he said.
Dr Tan added that this could be mitigated if timely actions are taken by policymakers around the world, boosting both markets and investor sentiment.
If this does not happen within the next three to four months, it will be up to the markets to work out current problems, and this is expected to be a long, painful and drawn-out process.
He said: "What is clear is that the financial and investment markets will be extremely nervous and volatile over the next one or two years."
While that means GIC's multi-billion-dollar investments in UBS and Citigroup remain shaky in the short term, Dr Tan pointed out that these are long-term investments and they are expected to give good returns when markets stabilise and economic conditions return to normal levels.
GIC invested US$10.8 billion in UBS in December last year and US$6.88 billion in Citigroup this January.
At the staff conference, GIC also unveiled three new group committees – the Group Management Committee, the Group Investment Committee, and the Group Risk Committee.
The Group Management Committee, chaired by GIC's Group Managing Director Lim Siong Guan, will address and discuss organisational issues of the group.
The Group Investment Committee will be chaired by Group Chief Investment Officer Ng Kok Song. It will develop and implement asset allocation policies and investment strategies at the group level. It will also review risk and performance of asset classes regularly.
Chief Risk Officer Sung Cheng Chih will chair the Group Risk Committee which will oversee and guide the development and implementation of risk management policies.
These committees will report to an executive committee chaired by Dr Tan.
"This management structure enables GIC to have the group-wide oversight on our business operations, investments and risks while giving sufficient autonomy to our investment subsidiaries so that they can respond in a timely fashion to changes in investment circumstances," said Dr Tan.
Analysts said this is a natural move as companies around the world brace themselves for a rocky ride ahead.
GIC's investments are closely watched as the fund is seen as one of the largest sovereign wealth funds in the world.
It is estimated to have some US$330 billion in assets under management, behind Abu Dhabi Investment Authority and Norway's Government Pension Fund. - CNA/so
The world could be facing its worst recession in 30 years, said Deputy Chairman and Executive Director of the Government of Singapore Investment Corp (GIC) Dr Tony Tan.
He shared this view with over 500 GIC staff at a conference on Monday.
Government of Singapore Investment Corporation"The financial contagion has now spread beyond US shores, increasing the likelihood of a global financial crisis and recession. We could be facing a recession which is longer, deeper and wider than any recession that we have encountered in the last 30 years," he said.
Dr Tan added that this could be mitigated if timely actions are taken by policymakers around the world, boosting both markets and investor sentiment.
If this does not happen within the next three to four months, it will be up to the markets to work out current problems, and this is expected to be a long, painful and drawn-out process.
He said: "What is clear is that the financial and investment markets will be extremely nervous and volatile over the next one or two years."
While that means GIC's multi-billion-dollar investments in UBS and Citigroup remain shaky in the short term, Dr Tan pointed out that these are long-term investments and they are expected to give good returns when markets stabilise and economic conditions return to normal levels.
GIC invested US$10.8 billion in UBS in December last year and US$6.88 billion in Citigroup this January.
At the staff conference, GIC also unveiled three new group committees – the Group Management Committee, the Group Investment Committee, and the Group Risk Committee.
The Group Management Committee, chaired by GIC's Group Managing Director Lim Siong Guan, will address and discuss organisational issues of the group.
The Group Investment Committee will be chaired by Group Chief Investment Officer Ng Kok Song. It will develop and implement asset allocation policies and investment strategies at the group level. It will also review risk and performance of asset classes regularly.
Chief Risk Officer Sung Cheng Chih will chair the Group Risk Committee which will oversee and guide the development and implementation of risk management policies.
These committees will report to an executive committee chaired by Dr Tan.
"This management structure enables GIC to have the group-wide oversight on our business operations, investments and risks while giving sufficient autonomy to our investment subsidiaries so that they can respond in a timely fashion to changes in investment circumstances," said Dr Tan.
Analysts said this is a natural move as companies around the world brace themselves for a rocky ride ahead.
GIC's investments are closely watched as the fund is seen as one of the largest sovereign wealth funds in the world.
It is estimated to have some US$330 billion in assets under management, behind Abu Dhabi Investment Authority and Norway's Government Pension Fund. - CNA/so