Two Residential Sites Off Mandai Rd Up For Auction

Source : The Business Times, January 8, 2008

PROPERTY firm Colliers International yesterday announced the auction of two residential sites off Mandai Road. Both plots have 999-year leases from Oct 16, 1884. The sites are being sold on a non-vacant basis. This means the buyers will be responsible for vacating the tenants.

20-28 Meng Suan Rd: Expected to cost about $5.3m, including a development charge

The two sites are at 20-28 and 43-56 Meng Suan Road. Each is expected to go for about $250 per sq ft (psf), said Colliers auctioneer Grace Ng.

This means the smaller plot at 20-28 Meng Suan Road, which is 21,066 sq ft, will cost about $5.3 million including a development charge (DC). The site is now occupied by a row of nine single-storey terrace houses.

The larger plot at numbers 43-56, which is 31,043 sq ft, will cost about $7.8 million, also including a DC. The land is occupied by a row of 14 single-storey terrace houses.

'The successful buyer can consider developing a row of 10 terrace houses on the smaller plot of land of about 1,938 sq ft each for the inter-terrace units and about 2,583 sq ft each for the corner units,' said Ms Ng. 'The larger plot of land can accommodate up to nine similar terrace houses, as well as four other semi-detached houses of about 2,583 sq ft each. Given the limited supply of land, freehold and 999-year leasehold, this is a rare opportunity for developers and investors to acquire two huge plots.' And with the government about to release a 30-hectare site at Mandai for nature-themed attractions, the area will become more vibrant, she said.

The auction will be held on Jan 30 at Amara Hotel.

Paragon In $82m Facelift, Expansion

Source : The Business Times, January 8, 2008

SPH investment to yield contemporary facade, more retail, commercial space

THERE will be a new look for Paragon shopping centre come October. The Orchard Road mall will get a $45 million makeover - to update its building facade and increase retail space.

Spiffier look: Paragon's move is in line with the transformation of Orchard Rd into a shopper's paradise for the increasing number of well-heeled international visitors

The facelift will begin this month, and is expected to be completed in October.

In addition, the commercial space above its retail podium will be expanded - at a cost of $37 million, including the payment of land premium. This is scheduled to be completed by end-2008.

The total cost of the facade makeover and the addition of commercial space is $82 million.

Singapore Press Holdings, which owns and manages the prime retail and office complex, says that the makeover is part of Paragon's continuous efforts to enhance its retail environment and shopping experience for customers.

And shoppers need not fret: Paragon will remain open and operate as it normally does during the renovation period.

The shopping centre's current glass and granite facade cladding will make way for a 'contemporary yet elegant' look with the installation of pop-out glass boxes.

They will be made of multi-faceted layers of aluminium panels and fritted glass with in-built energy-saving LED lights.

The new three-dimensional facade will comprise multiple transparent, glazed and volumetric external shop-fronts installed above the walkway level.

Five duplexes of designer stores facing Orchard Road will front the mall and each will see its shop front increase by three times the current height. 'At the busy intersection of Orchard Road and Bideford Road, a luxury brand's flagship store will enjoy a looming five storeys of shopfront starting from ground floor, providing a dramatic visual interest at this significant landmark junction,' said SPH.

Paragon's renovation and higher concentration of sophisticated designer stores are in line with the transformation of Orchard Road into a shopper's paradise for the increasing number of well-heeled international visitors coming to Singapore.

'The design is also prompted by luxury brand retailers looking for more space to expand and build their signature flagship stores and an opportunity to do something different,' said Linda Kwan, general manager of Paragon.

'Paragon's facade, when expanded forward by four metres towards the Orchard Road pedestrian walkway and spanning 115 metres in total length, will provide these tenants with significant visibility and brand expression.'

The facade project is undertaken by DP Architects, which also oversaw the integration of Paragon and the former Promenade into a single shopping mall in 2003.

There will be minor upgrading works within Paragon, including the addition of new balustrades for a contemporary look.

Upon completion of the enhancement works, the nett lettable area at the retail podium will increase by about 11,600 square feet.

The commercial space above the Paragon retail podium will be expanded by another 29,000 square feet - with the construction of two more floors for medical and office use.

Businesses Stay Upbeat On S'pore Economy: Survey

Source : The Business Times, January 8, 2008

Optimism balance is still at 84% despite greater uncertainty

Despite a gloomier outlook and inflation fears, Singapore businesses remain optimistic about the local economy, a global survey of private businesses has found.















Accounting firm Grant Thornton International's latest International Business Report ranked Singapore fourth, with an optimism balance of 84 per cent, unchanged from the previous year.

The optimism balance is the proportion of upbeat respondents less those who report negative sentiments on prospects for the country's economy in the next 12 months.

The survey of 7,800 businesses in 34 economies worldwide found an average optimism score of 42 per cent, three percentage points lower than in January last year.

The most bullish responses were from the Philippines and India (95 per cent), Vietnam (87 per cent) and Hong Kong (82 per cent).

Japanese businesses were among the most pessimistic (minus 44 per cent, from minus 5 per cent last year). Thai businesses, perhaps reflecting concern over the country's unstable political climate, reported a score of minus 30 per cent.

Despite a housing downturn and a shuddering credit market, sentiment in the US improved slightly, from 14 per cent to 22 per cent.

Aw Eng Hai, a partner with Foo Kon Tan Grant Thornton, the Singapore member firm of the global group, said: 'Although we have entered a period of greater uncertainty, amid concern over fallout from the US sub-prime mortgage crisis and the increased business costs, it is encouraging to know that businesses in Singapore remain confident in the country's economy.'

In Singapore, there were mixed expectations for prospects in specific business areas. Turnover expectations were slightly down at 71 per cent from 79 per cent last year, but businesses were just as optimistic on profitability as in 2007 (64 per cent).

In the present tight labour market, businesses reported lower expectations of employment growth (31 per cent against 38 per cent last year), but also said they were more optimistic regarding investments in new buildings, plants and machinery compared to 2007.

The relatively upbeat survey findings show a markedly different picture from an earlier business confidence survey. The BT-UniSIM quarterly survey found last November that confidence had slumped amid emerging signs of a slowdown in business activity.

The prospects net balance in that survey, reflecting sentiment in the third quarter last year for the next six months, was just 39 per cent, down 17 percentage points from the previous quarter. The figures from different surveys are not comparable.

The purchasing manager's index, a leading indicator for the manufacturing industry, showed the sector expanded but at a slower pace in December. Manufacturing grew just 0.5 per cent in Q4, pulling down early estimates for the quarter's GDP growth to just 6 per cent, the slowest in three years.

High-Density Homes May Complement Paya Lebar Hub

Source : The Business Times, January 8, 2008

Study says they may come up on sites that are currently industrial estates

The development of vacant state sites already zoned for commercial use immediately around Paya Lebar MRT Station will spearhead the transformation of the area into a commercial hub.

More interestingly, however, high-density homes may also come up slightly further away on sites currently occupied by industrial estates to support an expected influx of population as Paya Lebar shapes up as a sub-regional centre.

Jones Lang LaSalle (JLL), in a recent study of likely changes in the upcoming Master Plan 2008, identified three sites - two currently part of Eunos industrial estate owned by the Housing and Development Board (HDB) and the third also in an industrial estate but privately owned - that could be developed into high-rise homes, whether public or private. Despite the fact that the three plots are currently being used as industrial facilities, two of these sites are actually zoned for residential use under the existing Master Plan 2003, while the third is slated for reserve use.

The need to inject a bigger live-in population to complement the development of Paya Lebar as a sub-regional centre may see HDB offering the three sites for development into housing, especially if the plots are accorded relatively high plot ratios of 3.5 to 4.0 to optimise their proximity to Paya Lebar MRT Station, which will be an interchange station, at the cross section of the new Circle Line and existing East-West Line.

JLL argued these plot ratios - which reflect the ratio of maximum potential gross floor area to land area - are similar to the plot ratios granted for housing projects in the Tiong Bahru vicinity. 'Injecting more homes in the Paya Lebar area will help maintain a balance between residential and commercial uses in the location,' JLL said.

And with the increased live-in population will arise the need for having more schools, which can be developed on a plot already zoned for education under the current master plan, JLL's study suggests.

The property consultancy also suggests that two sites currently zoned for Business 1 (suitable for clean and light industrial/ warehouse use) - one each in Aljunied and Eunos industrial estates - are likely to be rezoned to Business Park or Logistics Park to better complement the proposed commercial developments that will be built closer to Paya Lebar MRT Station.

The plot ratios of these two sites are also likely to be raised from 2.5 currently to 2.5 to 2.8, JLL said.

'The improved accessibility of the Paya Lebar location that will result from the area serving as an interchange between two MRT lines will boost the location's image and attractiveness as an alternative office location in the longer term,' JLL said.

The property consultancy does not envisage a plot ratio increase for the vacant state sites currently zoned for commercial use immediately around Paya Lebar MRT Station, as their existing 4.2 plot ratios are in sync with the Tampines Finance Park.

Last year, the government said Paya Lebar will be developed into a business hub to provide space for Singapore's continued growth as a global business centre. Plans for its transformation are expected to be fleshed out in Master Plan 2008, which will be ready later this year.

National Development Minister Mah Bow Tan in June last year ruled out massive, across-the-board hikes in plot ratios islandwide in Master Plan 2008.

US Slowdown Won't Eat Into S'pore Growth: MM Lee

Source : The Business Times, January 8, 2008

Temasek, GIC comfortable with Merrill, UBS, he says

A slowdown in the American or European economy will not reduce the rate of Singapore's economic growth, according to Minister Mentor Lee Kuan Yew.

Barring a 'big recession', China and India - where the economies are tipped to expand by 8-10 per cent yearly - will provide the dynamism to pull the rest of Asia's economies along in the next five years, Mr Lee said last night at a dialogue session hosted by the Institute of Southeast Asian Studies (ISEAS).

At the end of the five years, Singapore will reach a new plateau, leaving the 'old Singapore' behind as more Singaporeans can enjoy the finer things in life, including arts and culture.

Mr Lee said the economy should then do well as the two integrated resorts (IRs) will be in full operation to give the tourism and hospitality sectors a big boost.

And if things go well in another five years, he said Singapore will be like Italy or Austria today.

Which is not a bad thing, considering where it had started from - zero resources and given a low chance of survival, according to Mr Lee.

Singapore must now consolidate what it has achieved, and not risk it, he said. When it had few 'chips' in the early days, it could take more risk; now that it has more, Singapore should move cautiously, Mr Lee said.

With no natural resources like oil to fall back on, he said Singaporeans have been toughened and motivated to succeed. If Singapore had been rich in oil, Mr Lee said it would not be where it is today.

Responding to a question on the Government of Singapore Investment Corporation's (GIC) acquisition of a 9 per cent stake in Swiss bank UBS in the wake of the US sub-prime mortgage woes, Mr Lee said Singapore is not averse to American banks or financial institutions.

He noted that Temasek invested US$4.4 billion in Merrill Lynch, the American investment banking giant.

GIC paid $14 billion for a 9 per cent stake in UBS - making it the biggest shareholder - because GIC has confidence in the bank's management and growth potential, Mr Lee said. 'It is comfortable with UBS.'

But he also pointed out that Temasek is also comfortable with Merrill Lynch and believes that the investment bank will recover from the losses it suffered.

Touching on the United States presidential race, Mr Lee said whoever is elected the next US president will have a plateful of foreign policy issues to deal with, including a more assertive Russia and a rising China and India.

Still, at the end of the day, he said the US remains an unbeatable economic and military power. Time and again, the US economy has made a strong comeback after showing signs of faltering.

Mr Lee said the US economy stays resiliently strong and that it is well ahead on the technology front.

The Chinese are keenly aware of this - and would not engage the Americans in a confrontation that would upset China's economic development, he indicated.