CityDev Says Its Investment In South Beach Project Will Hit S$2.73b

Source : Channel NewsAsia, 11 September 2007

City Developments (CityDev) says its new project at Beach Road will cost at least S$2.73 billion.

The figure was revealed by Executive Chairman Kwek Leng Beng at the Forbes Global CEO Conference on Tuesday.

CityDev and its partners edged out six other contenders for the mixed site at Beach Road with an aggressive bid that promises to add more buzz to the Marina area.

The South Beach development is set to change the landscape at the Marina area.

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CityDev says its investment in South Beach project will hit S$2.73b

CityDev and its partners are investing billions of dollars into the project which will stand out not only for its design, but also for its eco-friendly features.

Its subsidiary Scottsdale Properties has partnered Dubai World's Istithmar and US-based El-Ad to build the mixed development by 2012.

The Singapore developer is excited to be working with world-renowned names.

Mr Kwek said: "They came in because they knew me and they wanted a local partner and this is the Plaza owner, the new Plaza owner as well as Dubai World. They came in for the first time and I'm glad that we are able to target these two partners to create more good opportunities for investors all over the world."

As for the current property boom in Singapore, the CityDev chief said it is nowhere near the end of the cycle.

Mr Kwek said: "Prices mean opportunity, as the Chinese say, as Mr Forbes also said last night, and I am a bottom fisher. I like to go in when the market is bad. And I believe there's still a lot of upside. The mid-end is still below 19 per cent from the peak of 1996, and therefore I believe there is a lot of upside."

He added that though the high-end market looked like it has gone up some 70 per cent since the boom started in 2005, that is only 10 per cent in real terms.

Speaking to Channel NewsAsia, he said there is a silver lining to the recent market turmoil. "There was frenzy buying before but with the sub-prime, it's natural that our Singaporean as well as some overseas investors... will be a little bit more cautious. This is good - a win-win situation for the buyers because then they do not need to chase after runaway prices.

"It's good for the developer if they want to think in terms of sustainability as most of them would want to think of sustainability. It's good for the government because the market corrected itself, I think they're much relieved."

Market watchers have speculated that the consortium may bring in the Barneys New York retail brand through one of its partners Istithmar, and although Mr Kwek said 'anything is possible', he also revealed that they are looking at bringing in a 7-star luxury resort brand One & Only. - CNA/ch

Horizon Still Murky

Source : TODAY, Wednesday, September 12, 2007

Condo owners in last-ditch try for sale application

GROUPS of Horizon Towers majority owners have separately written to Hotel Property Ltd and its partners, expressing their willingness to extend the sale deadline so as to allow another collective sale application for the botched $500-million deal.

But their actions yesterday, which met a deadline set by the buyers, will not be enough to stave off the $1-billion lawsuit for the consortium’s loss of profits.

TODAY understands that what the buyers want is a collective commitment from the 255 sellers in the form of a formal resolution passed at a general meeting. As of press time yesterday, they had not received such a commitment. The case is set to go before the High Court on Sept 28.

The Horizon Towers deal fell through last month, after the Strata Titles Board refused to grant a collective sale order on the basis of a defective application. The buyers then sued the majority owners for failing to file a proper application.

Last Friday, a meeting of the majority owners aimed at coming up with a response to the lawsuit ended in disarray when the remaining sale committee members resigned.

Lawyer Shriniwas Rai, who represented five majority owners, said another meeting would be held on Sunday. Besides trying to form a new sale committee, the majority owners would seek to pass a resolution to extend the sale deadline. While they would have busted the buyers’ deadline, he said his clients hope the consortium “would be accommodating”. He told TODAY: “Many owners are hoping the High Court can give a resolution and we can move forward.

Spaceport : Lost In Transit?

Source : TODAY, Wednesday, September 12, 2007

Lack of local investment means Singapore may lose out to UAE in spaceport deal















PLANS for Singapore to be home to the world’s first commercial spaceport in 2009 have been grounded for now — because of a death of local investment.

Instead, the United Arab Emirates (UAE) will lay claim to the honour.

Singapore will have to wait at least “another year or two” to get a spaceport after a similar facility opens in the emirate of Ras Al Khaimah, which is an hour’s drive from Dubai — the Republic’s main rival in its aim of attracting the rich.

Even then, the Singapore project is “not a done deal”, Space Adventures’ president and chief executive officer Eric Anderson told reporters on the sidelines of the Forbes Conference yesterday.

“We have a plan; we don’t have financing. We are still looking for local financial partners,” Mr Anderson said.

In February last year, Space Adventures — a Virginia-based adventure tourism firm —announced, to much fanfare, plans to build the spaceports in the UAE and Singapore at the cost of US$265 million ($404 million) and US$130 million respectively.

At the time of the announcement, the UAE spaceport had already received clearance from the emirate’s rulers and the UAE Department of Civil Aviation. Ras Al Khaimah’s Crown Prince Sheikh Saud Bin Saqr Al Qasimi also pledged US$30 million to the project.

For Singapore, the negotiations between Space Adventures and the authorities began in 2003 through the Singapore Tourism Board.

Spaceport Singapore — a consortium comprising firms Octtane, Batey, Lyon Capital, DP Architects, ST Medical and KPMG Corporate Finance — was set up with the target of being the first commercial spaceport. Space Adventures agreed to commit US$10 million to the venture.

Upon completion, the spaceport — which is to be located on two hectares of land adjacent to Changi airport — is also slated to offer a wide range of space and high-altitude experiences for those hankering after a taste of astronaut training.

The sub-orbital flights themselves, which cost about $100,000 per person, will take passengers on a parabolic flight some 100km above the Earth.

However, to date, the Civil Aviation Authority of Singapore (CAAS) has not granted the approval. It was “studying the regulatory requirements ... to ensure that these activities can be carried out safely”, said a CAAS spokesman, who added that local investment was not a requirement.

But Mr Anderson told TODAY that as far as he was aware, regulatory approval was “not an issue” at this point.

He declined to give a definite time frame as to when the UAE and Singapore spaceports would be completed, but confirmed that suborbital flights would not be launched from Singapore by 2009 — although the building of the training centre at Changi would be on track for completion.

While he remained “absolutely” confident that the project could take off here, Mr Anderson said his firm was also looking at other Asian locations for its spaceport,
including China, Japan and Korea.

Mr Anderson added: “The first of these spaceports that will get the first vehicles will be in the Middle East. It will take another year or two to build the vehicles required (for the next spaceport).

“Singapore remains a possibility. We are trying to get it done as soon as possible.” Maintaining that there was “significant investor interest”, the consortium’s managing director Michael Lyon, founder of Lyon Capital, told TODAY by email that they have not given up hope of pipping the UAE.

Said Mr Lyon: “We are still seeking to complete fundraising. Singapore can be first if funding can be quickly completed.”

Octtane’s founder Nick Marrett said that so far, two thirds of the “over US$100 million” needed has been raised, and the consortium feels more confident now as compared to a year ago, since there are “commitments on the table”.

He said: “We are looking to raise the final third. Ideally, it should come from local investors but we are speaking to overseas investors as well. The bottom line is, the spaceport which gets the funding first will launch first.”

Plunge In August Auction Sales Partly Due To US Sub-Prime Woes

Source : The Straits Times, Sep 12, 2007

Total value hits $11m, one-fifth of previous month's showing: Colliers























SALES of properties on auction here plummeted last month, in one of the first signs that the global credit crunch may be taking a toll on Singapore's property market.
Only $10.79 million of properties were sold under the hammer in the month, less than one-fifth of what was fetched in each of June and July, said property firm Colliers International, one of the biggest auctioneers here.

Since March, the value of properties sold via auction each month has ranged from $33 million to $108 million. But this plunged last month, said Colliers, which released a report on auction sales yesterday.

In previous years, August has traditionally been a slow month for property sales due to the Hungry Ghost Festival.

But superstitious buyers were not the reason auction sales turned in an exceptionally poor showing in this year's hungry ghost month, which stretched from Aug 13 to Monday.

Colliers said the nosedive in sales was mainly due to the recent stock market volatility caused by United States sub-prime mortgage worries, new government policies, and higher asking prices by sellers.

'Given the good property market performance, many sellers have raised their expectations and upped their asking prices, especially for properties with en bloc potential,' said Ms Grace Ng, Colliers' auctioneer and deputy managing director.

She added that these properties have also become less appealing, thanks to the newly announced rules governing collective sales, which will make it more difficult for developments to sell en bloc.

In addition, the 'stock market turmoil amid the US sub-prime woes' has also contributed to the 'slowdown in the market, as buyers take a cautious stand', Ms Ng said.

Only 10 properties were sold via auction in this year's hungry ghost month, less than one-tenth of the 131 that were put up for sale in the period.

The properties that were sold fetched $9.56 million in all - a tiny fraction of the $133.86 million achieved in last year's double hungry ghost month and 'one of the lowest seen in the past 10 years', Colliers added.

Although the hungry ghost month typically sees fewer property sales due to superstitious buyers and sellers, the firm said this is unlikely to be the reason for the plunge in auction sales of property.

Indeed, the number of properties put up for auction by their owners in the period surged to 88, the highest level in at least a decade.

On the other hand, the number of repossessed properties - traditionally the main source of supply for auction sales - fell to 43, down from 239 last year and the lowest level since 1998. This was largely due to the buoyant economy and climbing property prices, said Colliers.

All this shows that auction sales in the hungry ghost month were being moved more by market conditions than superstitious beliefs, the firm added.

But Ms Ng was quick to point out that the firm is still receiving plenty of inquiries about auction properties from potential buyers.

'The inquiries are still there, but people are thinking twice before jumping in,' she said. 'They may be taking a step back and reassessing the prices.'

Colliers also noted that while auction sales may have plunged in the hungry ghost month, other segments of the property market appeared to still be going strong.

For instance, the total number of homes sold in the period is 'still at a very healthy level', although it has been falling since May, the firm said.

Third Site For Condo-Like Public Flats In Ang Mo Kio

Source : The Straits Times, Sep 12, 2007

A PLUM site close to amenities in Ang Mo Kio has been earmarked for the third public housing project to be designed, built and sold by private developers.

The site, which analysts estimate can fit about 550 flats, and blocks that rise up to about 36 storeys, will be launched for tender by the HDB today. The tender closes on Nov 27.

Already, property analysts expect strong demand from developers, and later, by home-hunters. This comes after red-hot demand when the first public-private project went on sale in Tampines last year.

The 1.7ha plot in Ang Mo Kio Street 52 is a stone's throw from Ang Mo Kio town centre and the recently-opened commercial and transport complex Ang Mo Kio Hub.

Some of the flats will appeal to homebuyers on lower budgets. The developer that snags the Ang Mo Kio site will have to reserve at least 30 per cent of the project for four-room or smaller units.

Property analysts say the site is set to be a winner. It is near the leafy Ang Mo Kio Town Garden East, as well as Ang Mo Kio MRT station and a host of shops in the mature town.

Property agency Propnex's chief executive, Mr Mohamed Ismail said: 'This is a sure-sell location.'

Dennis Wee Properties director Chris Koh expects the land to fetch $125 million, while Savills Singapore's director of marketing and business development Ku Swee Yong predicted a range of $100 million to $125 million.

Mr Mohamed expects the flats there to go for between $350,000 and $400,000 each.

The land parcel has a 103-year lease, and the developer will have to complete the project within four years of buying the land. The apartments will come with elderly-friendly features, as seen in new HDB flats now.

Under the hybrid scheme launched two years ago, developers design, build, price and sell flats built according to the broad rules of public housing. This means that common spaces have to be easy to maintain, that buyers have to meet ethnic quotas, and that only family units can buy the flats, for example.

Interest in these flats has been keen so far because they are located in mature estates and come with fittings more commonly found in private housing, such as bay windows.

The first batch of 616 Tampines units, being developed by Sim Lian Land, received close to 6,000 applications last year. Most were five-room units in blocks up to 17 storeys high, priced at between $308,000 and $450,000.

The second batch of about 700 flats in Boon Keng Road will be launched for sale later this year by a consortium led by Hoi Hup Realty. It will comprise three 40-storey blocks.