Allco REIT Acquiring 3 More Properties In Japan

Source : Channel NewsAsia, 14 September 2007

SINGAPORE : Allco REIT is acquiring three more properties in Japan for 11.7 billion yen or S$153 million.

The largest of the three properties is in Osaka, while the remaining two are in Tokyo.

The acquisition will be funded entirely by debt.

The deal is in line with Allco's regional growth strategy.

Allco expects Japanese property assets to account for at least 16 percent of its total property assets when the acquisition is completed. - CNA/ms

DBS Decides Not To Participate In Recapitalisation Of TMB Bank

Source : Channel NewsAsia, 15 September 2007

DBS has decided not to participate in the proposed US$1 billion recapitalisation of Thailand's TMB Bank.

The decision comes after several months of extensive discussions with Thailand's Ministry of Finance as well as the board and management of TMB.

In a statement out on Friday, the Singapore lender said it did not receive adequate assurance that it would have sufficient management control to effect the business and operational changes necessary to improve TMB's performance.

TMB is planning a rights issue as part of efforts to raise 35 billion baht or S$1.6 billion.

Discussions were held for DBS to participate in the rights issue and raise its shareholding to 20 percent.

But the Singapore lender was reported to be disappointed with TMB's performance.

TMB will be talking with other potential investors to complete its recapitalisation by the end of 2007.

DBS said it expects its stake to be diluted, but it remains committed as a significant shareholder of TMB. - CNA/ms

Free Essential Upgrading To Repair Wear And Tear In HDB Flats

Source : Channel NewsAsia, 14 September 2007

Yishun and Tampines are the first two estates to enjoy the new Home Improvement Programme or HIP.

Under HIP, the Housing and Development Board will improve flats that were built some 20 years ago.

Mr Ng Chee Hock’s 3-room unit in Tampines Street 41 which was built in 1985 will be one of the first to benefit from this programme.

His flat will receive a free makeover by the HDB with his waste pipes replaced and spalling concrete and cracks repaired.

In addition, Mr Ng may also get his toilet fixed at a subsidised price of about $550.

He can either choose to replace his toilets, doors or grille gates or do all that at one go.

Mr Ng can pick from three choices of toilet tiles and metal gates and two types of toilet pedestals.

According to the HDB, seven out of 10 flat-owners have said that they would even opt to install this water saving toilet pedestal which has a hand-wash function.

The full range of options cost about $550 for a 3-room flat whereas the cost for an executive flat, could go up to $1,375.

Residents can choose to pay in full or in instalments of up to ten years, using their Central Provident Fund savings or cash.

But the upgrading can only be possible if 75 per cent or more of the residents in the block vote in favour of the upgrading.

The Home Improvement Programme is expected to benefit 300, 000 units built in 1986 and before.

It would also come in handy for the first generation of HDB home buyers who wanted to improve their flats but were unable to afford the renovation costs. –CNA/vm

New Flats Under DBSS To Be Built At Boon Keng

Source : Channel NewsAsia, 14 September 2007

The latest flats under the HDB Design, Build and Sell Scheme (DBSS) were unveiled on Friday.

The three 40-storey public housing blocks to be developed will be located at Boon Keng, minutes away by MRT from the Dhoby Ghaut interchange.

The apartments, with a panoramic view of the city, will come with built-in wardrobes, kitchen cabinets, and air-conditioning in the entire house.

Most of the five-room units will also have balconies with plants outside the living and dining area, in line with the "garden in the sky" concept.

The project is expected to be launched next January, but the developers have not determined the pricing of the units.

The DBSS allows private developers to be responsible for the entire flow of the public housing development process.

The project at Boon Keng will be developed by a consortium comprising Hoi Hup Realty, Oriental Worldwide Investments, and Malaysian conglomerate Sunway Concrete Products. - CNA/ms

Greenspan Says Critics 'Mistaken', Defends His Fed Policies

Source : Channel NewsAsia, 14 September 2007

NEW YORK : Former Federal Reserve chief Alan Greenspan says he had few tools to contain the spread of sub-prime mortgages, and dismisses critics who blame the Fed for keeping interest rates too low.

In the text of an interview released on Thursday, Greenspan said he failed to realise the importance of the sub-prime loan problems "until very late in 2005 and 2006," as he was preparing to step down as Fed chairman, but that in any case he could not have stopped them.

Greenspan, in the interview with CBS television, noted that one of the Federal Reserve governors raised a red flag on those lending practices, but that there was little he could do.

"Well, it was nothing to look into particularly because we knew there was a number of such practices going on, but it's very difficult for banking regulators to deal with that," says Greenspan.

Many of the sub-prime loans, often made to people with shaky credit, were made outside the banking system. The high rate of failure of these adjustable-rate loans is blamed for the financial market turmoil and recent squeeze in credit markets.

Greenspan, in his first US media interview since stepping down in January 2006, said his successor Ben Bernanke "is doing an excellent job."

He also took a swipe at critics who argue that his move to slash the federal funds rate to as low as one percent fuelled too much speculation, and contributed to the housing collapse and current economic turmoil.

"They are mistaken," Greenspan said in remarks to be broadcast on the "60 Minutes" programme on Sunday.

"It was our job to unfreeze the American banking system if we wanted the economy to function. This required that we keep rates modestly low."

On Bernanke, Greenspan said he endorsed the current Fed chairman's tougher monetary policy stand, saying the current situation is not the same as when he began cutting rates.

"We were dealing in an environment back there where inflation was easing," he said.

"We could have acted without the fear of stoking inflationary pressures. You can't do that anymore. I'm not certain I would have done anything different" thank Bernanke under the current circumstances. - AFP/de