Horizon Sellers Miss Deadline; Hearing Expected In 2 Weeks

Source : The Business Times, September 14, 2007

Majority sellers still trying to form sales committee; some keen to contest suit

THE majority sellers of Horizon Towers missed a deadline to extend the completion date for the collective sale of the development.

The enormous personal liability has splintered the sellers as a group.

And the buyers are now set to make good on their threat to haul each and every one of the sellers to court and sue them for millions of dollars.

The buyers of the Leonie Hill property - Hotel Properties Ltd (HPL), Morgan Stanley Real Estate-managed funds and Qatar Investment Authority - had given the majority sellers until Tuesday this week, Sept 11, to meet their demands for an extension of the completion date.

The deadline was set after repeated requests earlier for an extension were ignored. BT understands the sellers did not respond to the latest deadline or extend the completion date.

It is understood that a High Court hearing is set for Sept 27. At the hearing, the buyers will ask the court to declare the majority sellers in breach of a collective sale agreement signed by both sides in February.

They will also ask the court to award them damages of between $800 million and $1 billion, as well as interest and costs.

This means the 270 owners - of 173 units - who signed off on the en bloc sale are now personally liable for $3.7 million each, or $5.78 million per unit. It is believed that the enormity of the personal liability has splintered the sellers as a group. Some owners have indicated they want to extend the deadline, while others are keen to contest the lawsuit.

This has driven several owners to seek their own legal representation - apart from group representation in the form of law firm Tan Rajah & Cheah.

The Horizon Towers sales committee disintegrated last week. The last three members resigned on Friday, after four other members quit in the days before.

The majority sellers are now scrambling to assemble a new sales committee so there will be some sort of representation for the entire group, to manage the en bloc saga going forward.

The en bloc sale collapsed in August after the Strata Titles Board (STB) refused to grant a collective sale order on the grounds that Horizon Towers filed a defective application.

STB's decision, just days before the sale completion deadline, meant there was no time to file a fresh en bloc application.

The buyers wanted the majority sellers to extend the sale completion deadline by four months, appeal against STB's decision and file a fresh application if needed.

The sellers have appealed against STB's decision but have not extended the deadline. Nor have they indicated whether they intend to file a fresh application with STB.

It has been reported that the majority sellers regretted their decision to sell Horizon Towers for $500 million to HPL and its partners after neighbouring developments began fetching much higher prices in the months that followed.

HPL and its partners allege that the sellers have not done everything in their power to file a proper application to STB - a condition of the sale agreement - and are suing them on this basis.

HDB Upgraders Are Back In Force

Source : The Business Times, September 14, 2007

Big hike in secondary market deals shows genuine demand: analysts














(SINGAPORE) The broad-based recovery in the property sector is gathering pace with data showing a spike in the number of property transactions by Housing and Development Board (HDB) upgraders.

Looking at data which captures transactions made by buyers with registered HDB addresses - traditionally considered HDB upgraders - Citigroup noted that, in Q2 2007, HDB upgraders made about 1,750 transactions in the secondary market, an increase of 75 per cent from the previous quarter when around 1,000 transactions were recorded.

On the significance of secondary market transactions, Citigroup analyst Wendy Koh said that these represented 'genuine demand as full payment is required for completed developments'.

Although there is always some level of speculation in a rising market, the mass market appears to be safe for now, with Citigroup noting that subsales in the mass market segment stood at about 9 per cent of total sales compared to 27 per cent at the peak of 1995/1996.

DTZ Debenham Tie Leung executive director Ong Choon Fah also believes buyers in this segment are genuine. 'Most speculation still takes place in the prime districts because price increases (in the mass market) are still not as significant,' she said

Mrs Ong added that the recovery of prices for the HDB resale segment has also boosted the number of upgraders and noted that about 70 per cent of resale flats transacted at above valuation in Q2.

DTZ's figures show that combined primary and secondary market transactions by upgraders increased by about 50 per cent in Q2 over the previous quarter. Popular new developments among upgraders were The Quartz near Buangkok MRT Station, Northwood in Sembawang and Ferraria Park Condo in Pasir Ris. Upgraders made up 80 per cent, 58 per cent and 54 per cent of the buyers respectively.

'There is also now more urgency to buy because there is the belief that prices seen in the prime areas will filter out into the suburban districts,' she added.

Upgraders have also bought into more upscale developments.

A spokesman for UOL said that they formed about 16 per cent of the buyers for Pavilion 11 at Minbu Road while Frasers Centrepoint said a similar 16 per cent have bought into The Soleil at Novena. Even at the more expensive The Seafront on Meyer, CapitaLand said that just under 5 per cent are buyers with HDB addresses.

HDB upgraders are still, however, price sensitive and Mrs Ong attributed the spike in secondary market transactions to this as the secondary market offers lower-cost private residential alternatives.

Speculation could, of course, raise prices. A recent report by Credit Bureau (Singapore) revealed that people living in the heartlands of Serangoon Gardens, Hougang and Punggol recorded the highest number of borrowers with multiple property loans, suggesting that they owned homes for reasons other than to live in.

Savills Singapore director (marketing and business development) Ku Swee Yong, who also believes speculation has yet to hit the mass market, reckoned that the increase in the number of borrowers with multiple loans could be due to the fact that several developments in the area, including Kovan Melody and Tangerine Grove, have obtained temporary occupation permits (TOP), requiring existing homeowners who opted for deferred payment schemes to apply for loans.

He also noted that some collective sale beneficiaries have had to apply for housing loans because more banks are refusing to give bridging loans.

CB Richard Ellis executive director Li Hiaw Ho does believe that speculation is increasing in new suburban projects like One Rochester and Sky@Eleven. Although Mr Li said that it is still 'quite minimal', he believed that it will impact overall prices, and that mass market projects will not be spared. 'You just have to look at the recent land sales price at Ang Mo Kio,' he added. The site in question sold for about $600 per square foot per plot ratio and is expected to sell for over $1,000 psf.

Coming Up In Marina South - 'Next Generation' Housing

Source : The Buiness Times, Sep 13, 2007

A giant 60-hectre site has been earmarked for the landmark residential district which will enjoy 'water-garden living'.



















THE development of Singapore's 'next-generation' housing has begun.

The government today announced a giant 60-hectare site at Marina South earmarked for a landmark residential district - what it calls 'waterfront-garden living' in the heart of the city.

As many as 11,000 apartments are expected to be built in the midst of other commercial, hotel and community facilities.

This marks a new chapter for Marina South - known for its bowling alleys, seafood restaurants and wide open spaces. The existing buildings on the site will now make way for the new residential district.

To garner fresh ideas and designs for the development, the Urban Redevelopment Authority (URA) and the Singapore Institute of Architects (SIA) have launched a design competition for the site, located between the Garden at Marina South and the Straits of Singapore, near the existing Marina South Pier and upcoming Marina Barrage.

The winning ideas may be included into URA's 2008 Master Plan for Marina South.

Up to 10 winning designs will be selected, and a cash prize of $50,000 will be shared among the winners.

The designs must focus on achieving the experience of living in a waterfront garden, and emphasise environemntal sustainability and a strong community feel.

Budding student and professional architects alike - local and foreign - are invited to participate and the winners will be announced during the Singapore Design Festival 2007 in November.

A URA spokesman said details of the launch date will be announced later.

Waterfront-Garden Living by the Bay

Marina Bay is the centrepiece of Singapore's urban transformation into a vibrant, global city.

Several prime sites have already been earmarked for exciting new developments, including the Marina Bay Sands Integrated Resort and the 100-ha Gardens By the Bay.

Ciity living with magnificent views of the waterfront or greenery is the lifestyle choice of many Singaporeans.

It is in line with the Concept Plan 2001- URA's long term plan that guides Singapore's development over the next 40 to 50 years - which called for more city living options for Singaporeans.

Related Link - http://www.ura.gov.sg/pr/text/2007/pr07-97.html
URA News Release - Waterfront-Garden Living Planned at Marina South

New Seafront Site Released

Source : TODAY, Friday, September 14, 2007

Site at Marina South to feature mixed facilities, 11,000 residential units

SENTOSA Cove could soon lose its monopoly on luxury seafront living in Singapore, after the authorities unveiled yesterday a 60-ha site at Marina South for a similar development.

Located next to the upcoming Garden at Marina South and the Marina Barrage a stone's throw away, the waterfront site is slated to host about 11,000 residential units, likely to be private housing.

Many developers who went into Sentosa Cove on a first-mover basis have made a lot of money.- Cushman and Wakefield MD Donald Han

But, in contrast to the secluded Sentosa Cove, urban planners have in mind a mix of facilities — such as retail, food-and-beverage, offices, hotels, even schools — for residents and the public to enjoy at the proposed Marina South residential district.

The plot is next to Marina South Pier, which some expect to make way for a new international passenger cruise terminal.

The project is being touted as "a landmark residential district" offering residents the best of both worlds: Waterfront living in a lush, green setting by the Garden at Marina South, according to a news release by the Urban Redevelopment Authority (URA) and Singapore Institute of Architects.

Demand for an alternative city lifestyle at Marina South will be high, judging by the record-breaking prices set for Sentosa Cove, predicted Cushman and Wakefield's managing director Donald Han.

"It is more of an extension of — rather than competition for — Sentosa Cove, which is smaller and has a limited number of residences.

"This is a residential enclave with a dual premium view of the sea and lush gardens. It also offers close access to the business and financial district."

Interest would be keen, especially from developers well-versed in high-end projects, he told Today. "A lot of the developers who went into Sentosa Cove on a first-mover basis have made money."

The Marina Bay area has been a work-in-progress in recent years, due to the authorities' rejuvenation efforts. In the works are the Marina Barrage, the Marina Bay Sands integrated resort and the 101-ha Gardens by the Bay.

A competition was launch-ed yesterday to gather ideas for the Marina South residential district. Participants have to submit their take on high-density city living in a waterfront garden environment, with environmental sustainability and community bonding among factors to be taken into account.

Up to 10 ideas will be awarded a shared prize of $50,000. These may be incorporated in the URA Master Plan next year. The competition closes Nov 12. More details are at www.ura.gov.sg or www.sia.org.sg/marina.

Source : Singapore Institute of Architects (www.sia.org.sg/marina)

Singapore's City Centre
















Developments Around Marina Bay
















Water Activities At The Bay
















Gardens By The Bay

Gardens And Sea To Frame New Marina South Homes

Source : The Business Times, September 14, 2007

60 hectares set aside for 11,000 units in latest makeover move























(SINGAPORE) A landmark residential district - with lush gardens by its side, a spectacular view of the sea and the Sands Integrated Resort a mere stone's throw away - will rise over the next few years to add further gloss to the Marina Bay area.

Some 60 hectares of land, on which 11,000 homes will be built, has been set aside for the project. The Marina South Residential District (MSRD) will also have 1.6 million sq ft set aside for hotel use, another 678,000 sq ft of commercial space and even a primary and a secondary school. There will also be community facilities for all to enjoy, the government announced yesterday.

The entire project will be developed over a 15 to 20-year period once the supporting infrastructure has been put in place, said the Urban Redevelopment Authority (URA).

URA also said given the size of the area, it is likely that the land parcels will be released in phases.

The government agency is master planning the project as the next stage of development for the Marina Bay area.

Marina Bay, which is touted as the centrepiece of Singapore's urban transformation into a vibrant, global city, is already home to several upcoming prime projects - including the Marina Bay Sands Integrated Resort and the 100-ha Gardens By the Bay.

This residential site is located between the upcoming Garden at Marina South and the Straits of Singapore. URA hopes that MSRD will offer its residents the best of both worlds - a rare opportunity to experience waterfront living together with the lush greenery provided by the garden.

'Obviously, it is a choice location - right between the garden and the sea,' said Knight Frank managing director Tan Tiong Cheng. 'The view will be even better than that from the Marina Bay integrated resort.'

Said Colliers International's director for research and consultancy Tay Huey Ying: 'The area will provide a very wholesome residential environment.'

The bid to develop MSRD is in line with the government's 2001 Concept Plan - a long term plan that guides Singapore's development over the next 40 to 50 years - which called for more city living options for Singaporeans.

Then, URA said that those who like the downtown buzz can look forward to having 90,000 more units to choose from, mostly in the New Downtown at Marina South.

Experts expect that homes in MSRD will be popular, especially with foreigners.

'It is possible that the primary and secondary schools could be foreign schools,' said Colin Tan, Chesterton International's head of research and consultancy.

However, market watchers mostly said that even when boosted by this latest news, home prices in the Marina Bay area are not likely to reach those fetched by luxury projects in the Orchard Road vicinity anytime soon.

'I don't think the development will overtake Orchard Road in terms of prices and appeal to foreigners,' said Ms Tay. Facilities catering to foreign residents, such as foreign schools and embassies, are now located in the Orchard Road vicinity, she said.

Knight Frank's Mr Tan agreed: 'At the end of the day, Marina South is a new district; it is not tested.'

In addition, concerns exist about the infrastructure in the area. For one, the road network in the Marina Bay area will have to be improved, analysts said.

Right now, URA is looking to garner new and innovative ideas to distinguish MSRD.

Together with the Singapore Institute of Architects, it is organising a competition, which will close on November 12, for design ideas for the district. A sum of $50,000 has been set aside to be awarded for up to 10 best ideas.