Source : The Straits Times, 20 September 2007
FRASERS Hospitality is set to open 10 new service residences in China by 2009.
Half of them will be ready before the Beijing Olympics next year, the Singapore-based service apartment operator said in a statement yesterday.
The company, a subsidiary of Frasers Centrepoint, will invest US$130 million (S$197 million) in one of the properties. The 23-storey building will be located in the heart of Beijing's Central Business District, and boast 357 units.
Frasers bought the property in June and will open it in April as Fraser Suites Beijing, said Frasers Hospitality chief executive Choe Peng Sum.
The other nine residences will be managed by Frasers but owned by other companies, including property developer Yanlord Land Group, global private equity firm The Carlyle Group, and Chinese food company Cofco.
Besides Beijing, the 10 new service apartment properties will be located in the cities of Chengdu, Guangzhou, Hong Kong, Nanjing, Shanghai and Tianjin.
Two will open in November, one each in Beijing and Nanjing. Three more will open next year before the Olympics: Frasers Suites Beijing and two others in Shanghai.
Frasers already operates two properties in Shenzhen.
'We will have more than 12 properties under the Fraser brand as we are still actively pursuing other suitable properties in China,' said Mr Choe in the statement.
'We expect that by 2010, Frasers will be operating more than 4,000 service residence units in over a dozen cities across China.'
Frasers is also talking to property owners in secondary cities like Chongqing, Dalian, Hangzhou, Suzhou, Wuxi and Xian.
Thursday, September 20, 2007
MGPA Puts In Record $2.02b Bid For Office Site
Source : The Business Times, 20 September 2007
Macquarie Global Property Advisors (MGPA) is enlarging its footprint in the Singapore office market, putting in a record bid yesterday of $2.02 billion, or $1,409 psf of potential gross floor area, for a site slated for mostly office use.
Market watchers reckon MGPA's all-in investment including land, construction costs and fees could be around $3 billion. The project could be completed around 2010.
The one-hectare plot, which is behind the One Shenton development and dubbed Marina View Parcel A, attracted just three bids in all. The 99-year leasehold plot can be developed into a maximum gross floor area (GFA) of 1.43 million sq ft, at least 70 per cent of which has to be set aside for offices.
Sources suggest Macquarie could be looking at an all-office scheme. Based on this, the sources estimate that Macquarie's breakeven cost could be around $2,500 psf of net lettable area, and that it could be looking at exiting the investment at about $3,500 to $4,000 psf.
Said MGPA managing director Simon Treacy in a release yesterday evening: 'The site presents a rare opportunity to develop a Grade A+ office building in the prime business district of Singapore where strong demand coupled with limited supply makes now an ideal time for high quality office development.'
Office industry watchers reckon that on a project-average basis, the development could fetch a monthly gross rent of around $12 per square foot and based on that, the net yield works out to 4.7 per cent on breakeven cost.
An all-office project could yield about 1.2 million sq ft net lettable area of offices. 'An all-office configuration would provide opportunities to maximise the floor plate,' said CB Richard Ellis executive director Li Hiaw Ho.
Macquarie's bid was nearly 10 per cent higher than the second highest offer, believed to be from a joint venture between Mapletree Investments and CapitaLand ($1.8 billion, or $1,281 psf per plot ratio). The only other bid came from Malaysia's IOI Group, at $1.6 billion or $1,128 psf ppr. Property consultants say that all eyes are now on the next-door, Marina View Land Parcel B, which is being offered for sale at an Urban Redevelopment Authority tender that will close on Nov 13. The 0.9-hectare plot can be developed into a maximum GFA of 1.22 million sq ft, of which at least 60 per cent has to be set aside for offices, and 25 per cent for hotel use.
MGPA's bid yesterday of $2.02 billion is the highest ever for a state land sale in Singapore, pipping the total of $1.91 billion paid for the Marina Bay Financial Centre site in two phases, excluding the option fee.
The unit land price of $1,409 psf ppr is also said to be the highest for a primarily office site, surpassing the $1,104 psf ppr set in 1995 when Straits Steamship Land (now Keppel Land) bid for a site in the China Square area, which it later developed into what is today Prudential Tower.
It remains to be seen if MGPA will decide to team up with any partners for Marina View Land Parcel A. Assuming an all-in investment of $3 billion in developing this project, MGPA's all-in investment in Singapore over the past year would cross $4 billion.
In March this year, an MGPA fund bought Temasek Tower for $1.04 billion or $1,550 psf of net lettable area. Late last year, MGPA made its maiden foray into Singapore's real estate by buying 12 floors at Springleaf Tower on Anson Road for about $134 million, or $1,240 psf.
Macquarie Global Property Advisors (MGPA) is enlarging its footprint in the Singapore office market, putting in a record bid yesterday of $2.02 billion, or $1,409 psf of potential gross floor area, for a site slated for mostly office use.
Market watchers reckon MGPA's all-in investment including land, construction costs and fees could be around $3 billion. The project could be completed around 2010.
The one-hectare plot, which is behind the One Shenton development and dubbed Marina View Parcel A, attracted just three bids in all. The 99-year leasehold plot can be developed into a maximum gross floor area (GFA) of 1.43 million sq ft, at least 70 per cent of which has to be set aside for offices.
Sources suggest Macquarie could be looking at an all-office scheme. Based on this, the sources estimate that Macquarie's breakeven cost could be around $2,500 psf of net lettable area, and that it could be looking at exiting the investment at about $3,500 to $4,000 psf.
Said MGPA managing director Simon Treacy in a release yesterday evening: 'The site presents a rare opportunity to develop a Grade A+ office building in the prime business district of Singapore where strong demand coupled with limited supply makes now an ideal time for high quality office development.'
Office industry watchers reckon that on a project-average basis, the development could fetch a monthly gross rent of around $12 per square foot and based on that, the net yield works out to 4.7 per cent on breakeven cost.
An all-office project could yield about 1.2 million sq ft net lettable area of offices. 'An all-office configuration would provide opportunities to maximise the floor plate,' said CB Richard Ellis executive director Li Hiaw Ho.
Macquarie's bid was nearly 10 per cent higher than the second highest offer, believed to be from a joint venture between Mapletree Investments and CapitaLand ($1.8 billion, or $1,281 psf per plot ratio). The only other bid came from Malaysia's IOI Group, at $1.6 billion or $1,128 psf ppr. Property consultants say that all eyes are now on the next-door, Marina View Land Parcel B, which is being offered for sale at an Urban Redevelopment Authority tender that will close on Nov 13. The 0.9-hectare plot can be developed into a maximum GFA of 1.22 million sq ft, of which at least 60 per cent has to be set aside for offices, and 25 per cent for hotel use.
MGPA's bid yesterday of $2.02 billion is the highest ever for a state land sale in Singapore, pipping the total of $1.91 billion paid for the Marina Bay Financial Centre site in two phases, excluding the option fee.
The unit land price of $1,409 psf ppr is also said to be the highest for a primarily office site, surpassing the $1,104 psf ppr set in 1995 when Straits Steamship Land (now Keppel Land) bid for a site in the China Square area, which it later developed into what is today Prudential Tower.
It remains to be seen if MGPA will decide to team up with any partners for Marina View Land Parcel A. Assuming an all-in investment of $3 billion in developing this project, MGPA's all-in investment in Singapore over the past year would cross $4 billion.
In March this year, an MGPA fund bought Temasek Tower for $1.04 billion or $1,550 psf of net lettable area. Late last year, MGPA made its maiden foray into Singapore's real estate by buying 12 floors at Springleaf Tower on Anson Road for about $134 million, or $1,240 psf.
Kajima To Invest $900m In Asia Over 2-3 Years
Source : The Business Times, September 20, 2007
(SINGAPORE) Construction and property conglomerate Kajima Corp plans to invest around S$900 million in Asia over the next 2-3 years to further diversify outside of its Japan home base, a senior executive of the firm told Reuters yesterday.
The Asian arm of the group said it was also looking to double its contribution to overall revenue to 10 per cent in the next three years as it steps up investment in the region.
'We would look to invest first in Jakarta, Phuket and Singapore,' Masao Hashimoto, vice-MD of Kajima's overseas arm in Asia, told Reuters in an interview.
Mr Hashimoto said the group was keen to develop a shopping mall in Singapore, where it already has about S$1 billion in assets, but had yet to find a suitable plot of land.
Related Link - http://tinyurl.com/ytao8m
Kajima's News Release
'We would like to build an office, hotel and convention centre on our vacant land in Jakarta, which is almost five hectares,' he said. The company also wants to develop villas and a hotel on its land in the Thai resort island of Phuket. Outside of Singapore and Japan, the group holds about US$600 million in Asian assets.
Like rival builders Obayashi Corp and Shimizu Corp, Kajima is facing a cut in public works spending in its domestic market as Tokyo looks to shore up its ailing finances. The group is targeting the Middle East and Africa to grow its construction business.
Kajima, which has a market capitalisation of US$3.8 billion, said yesterday that it had teamed up with US investment bank Lehman Bros to build a Singapore office building for S$450 million. -- Reuters
(SINGAPORE) Construction and property conglomerate Kajima Corp plans to invest around S$900 million in Asia over the next 2-3 years to further diversify outside of its Japan home base, a senior executive of the firm told Reuters yesterday.
The Asian arm of the group said it was also looking to double its contribution to overall revenue to 10 per cent in the next three years as it steps up investment in the region.
'We would look to invest first in Jakarta, Phuket and Singapore,' Masao Hashimoto, vice-MD of Kajima's overseas arm in Asia, told Reuters in an interview.
Mr Hashimoto said the group was keen to develop a shopping mall in Singapore, where it already has about S$1 billion in assets, but had yet to find a suitable plot of land.
Related Link - http://tinyurl.com/ytao8m
Kajima's News Release
'We would like to build an office, hotel and convention centre on our vacant land in Jakarta, which is almost five hectares,' he said. The company also wants to develop villas and a hotel on its land in the Thai resort island of Phuket. Outside of Singapore and Japan, the group holds about US$600 million in Asian assets.
Like rival builders Obayashi Corp and Shimizu Corp, Kajima is facing a cut in public works spending in its domestic market as Tokyo looks to shore up its ailing finances. The group is targeting the Middle East and Africa to grow its construction business.
Kajima, which has a market capitalisation of US$3.8 billion, said yesterday that it had teamed up with US investment bank Lehman Bros to build a Singapore office building for S$450 million. -- Reuters
71 Robinson Rd To Be Developed For $450m
Source : The Business Times, September 20, 2007
Lehman Brothers- Kajima office project will be up by mid-2009
71 Robinson Road: The 280,000 sq ft building is aimed mainly at finance and banking companies
US INVESTMENT bank Lehman Brothers and Japan-based Kajima Corporation said yesterday they will spend about $450 million developing their upcoming office project at 71 Robinson Road.
The 280,000 sq ft building - aimed mainly at finance and banking companies - will be up by mid-2009, beating the nearby Marina Bay Financial Centre (MBFC) by about six months.
The price includes the $163.4 million the partners paid last year for the plot, which was the site of SingTel's Crosby House.
Lehman and construction and property conglomerate Kajima have equal stakes in the venture.
The 15-storey building in the Central Business District (CBD) is designed to meet growing demand for space from global banks and financial institutions that want to establish or expand regional operations. For example, it will have purpose-built trading floors.
The building will come to market ahead of MBFC, which will offer some 1.6 million sq ft of office space in 2010. MBFC has proved popular with financial institutions but is not fully leased yet.
'There is no question there is an advantage in being quick to market,' said Chris Archibold, regional director at Jones Lang LaSalle (JLL), which is marketing 71 Robinson Road. Space in the building will be leased at 'market rate', he said.
The project will benefit from rising office rents in the CBD amid a supply shortage.
JLL's research shows Singapore will have about 2.3 million sq ft of new office space over the next three years - far short of the 5.1 million sq ft that will be needed, which will push rents up.
In just the first half of this year, Prime Grade A office rents in the CBD rose 44 per cent to $13.80 per square foot (psf), JLL said. It expects rents to hit $15.80 psf by year-end.
71 Robinson Road is Lehman's first direct property investment in Singapore, said Blake Olafson, senior vice-president of the bank's global real estate group.
Kajima, on the other hand, has been involved in more than 200 projects in Singapore and has two luxury residential projects for launch - one at Balmoral and the other at Bishopwalk.
Lehman Brothers- Kajima office project will be up by mid-2009
71 Robinson Road: The 280,000 sq ft building is aimed mainly at finance and banking companiesUS INVESTMENT bank Lehman Brothers and Japan-based Kajima Corporation said yesterday they will spend about $450 million developing their upcoming office project at 71 Robinson Road.
The 280,000 sq ft building - aimed mainly at finance and banking companies - will be up by mid-2009, beating the nearby Marina Bay Financial Centre (MBFC) by about six months.
The price includes the $163.4 million the partners paid last year for the plot, which was the site of SingTel's Crosby House.
Lehman and construction and property conglomerate Kajima have equal stakes in the venture.
The 15-storey building in the Central Business District (CBD) is designed to meet growing demand for space from global banks and financial institutions that want to establish or expand regional operations. For example, it will have purpose-built trading floors.
The building will come to market ahead of MBFC, which will offer some 1.6 million sq ft of office space in 2010. MBFC has proved popular with financial institutions but is not fully leased yet.
'There is no question there is an advantage in being quick to market,' said Chris Archibold, regional director at Jones Lang LaSalle (JLL), which is marketing 71 Robinson Road. Space in the building will be leased at 'market rate', he said.
The project will benefit from rising office rents in the CBD amid a supply shortage.
JLL's research shows Singapore will have about 2.3 million sq ft of new office space over the next three years - far short of the 5.1 million sq ft that will be needed, which will push rents up.
In just the first half of this year, Prime Grade A office rents in the CBD rose 44 per cent to $13.80 per square foot (psf), JLL said. It expects rents to hit $15.80 psf by year-end.
71 Robinson Road is Lehman's first direct property investment in Singapore, said Blake Olafson, senior vice-president of the bank's global real estate group.
Kajima, on the other hand, has been involved in more than 200 projects in Singapore and has two luxury residential projects for launch - one at Balmoral and the other at Bishopwalk.
Horizon Towers Owners To Meet On Thursday
Source : Channel NewsAsia, 19 September 2007
About 50 owners of units at Horizon Towers met Hotel Properties (HPL) chief Ong Beng Seng and his lawyers at Hilton Hotel on Wednesday.
Channel NewsAsia understands that about 30 of them are still keen to sell their units to the potential buyer - a consortium led by HPL.
They want to avoid the costly legal battle with the consortium, which has threatened to sue them after the en bloc deal hit a snag.
The Strata Titles Board (STB) had rejected their application to sell due to a technical error in the sale paperwork.
And the majority owners missed the subsequent deadlines to re-apply.
Lawyers say the owners cannot sell their units individually.
And to avoid going to court, they have to elect a new sales committee, get an extension from STB and re-submit the en bloc proposal.
Otherwise, the buyers would have no choice but to sue the sellers.
Channel NewsAsia understands the condominium's owners have scheduled a meeting on Thursday evening to discuss the issue and possibly elect a new sales committee. - CNA/ir
About 50 owners of units at Horizon Towers met Hotel Properties (HPL) chief Ong Beng Seng and his lawyers at Hilton Hotel on Wednesday. Channel NewsAsia understands that about 30 of them are still keen to sell their units to the potential buyer - a consortium led by HPL.
They want to avoid the costly legal battle with the consortium, which has threatened to sue them after the en bloc deal hit a snag.
The Strata Titles Board (STB) had rejected their application to sell due to a technical error in the sale paperwork.
And the majority owners missed the subsequent deadlines to re-apply.
Lawyers say the owners cannot sell their units individually.
And to avoid going to court, they have to elect a new sales committee, get an extension from STB and re-submit the en bloc proposal.
Otherwise, the buyers would have no choice but to sue the sellers.
Channel NewsAsia understands the condominium's owners have scheduled a meeting on Thursday evening to discuss the issue and possibly elect a new sales committee. - CNA/ir
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