Saturday, November 10, 2007

Gardens @ Marina South - Super Sky-Creepers

Source : The Straits Times, Nov 10, 2007

The 18 SuperTrees at the upcoming Gardens at Marina South are the first of their kind in the world












TREE THINGS YOU SHOULD KNOW: Mostly ranging from 25m to 35m tall, the SuperTrees serve not only an aesthetic purpose but will also collect rain water for recycling and tap on solar energy through solar panels. -- PHOTO: GRANT ASSOCIATES, ST PHOTO: ALAN LIM


IMAGINE enjoying a glass of champagne in a bar atop a giant tree, surrounded by lush greenery and with a bird's-eye view of the new Marina Bay Sands Integrated Resort and the whirling Singapore Flyer.

The 50m-tall tree atop which you quaff a drop is not actually a real one though, but one of 18 similar structures called SuperTrees, which have been built to resemble trees, complete with flowers entwining a concrete 'trunk'.

That towering vision of the high life is among the plans unveiled yesterday for Gardens at Marina South, the first of three gardens for the Marina Bay waterfront. It spans 54ha and is smaller than the 63ha Singapore Botanic Gardens.

The three gardens, to be built by the National Parks Board (NParks), are intended to add vibrancy to the new financial hub emerging at the bay, adding to its 'live-work-play' concept.

Work on Phase 1 of Gardens at Marina South - covering an initial 30ha to 35ha and due to open in 2010 - began yesterday at a ground-breaking ceremony by Mr Mah Bow Tan, Minister for National Development.

He told reporters after the ceremony that building Gardens at Marina South is expected to cost $900 million.

When the project was awarded last year, initial estimates of the cost for the three gardens were about $300 million to $400 million.

But Mr Mah pointed out yesterday that they are set to be a major tourist attraction, 'with an estimated annual visitorship of 2.7 million, contributing approximately $1billion to the economy over a period of 10 years'.

According to him, they will also add value to the surrounding real estate and will also boost Singapore's standing as a premier garden city.

Gardens at Marina South is the largest of the three gardens. The others are Gardens at Marina East, which will have terraced water gardens, and Gardens at Marina Centre, which does not have a design yet.

British firm Grant Associates won the contract for Gardens at Marina South last year in a contest involving international landscape architects, architects and planners.

In an interview with Life!, Grant Associates director Andrew Grant, 49, painted a picture of the garden that would turn any visitor green with envy - and make a greenie even more so.
















HIS GOAL: Mr Andrew Grant, whose Grant Associates thought up the SuperTrees concept, says the firm's goal is to make the garden the most popular space in Singapore.

For example, as well as being an awesome sight, the SuperTrees are also functional, explains Mr Grant, whose firm, established in 1996, is known for its ecological park, Earth Centre, near Doncaster in Britain.

Some will collect rain water, which will be recycled and used in the garden. Others will have solar panels on top to trap sunlight for energy. Others will double as exhaust systems.

As well as the SuperTrees - which will be the first such structures in the world, says Mr Grant - there will be two conservatories: a cool, dry one for plants from the Mediterranean environment and a cool, moist one for tropical highland plants. These would be the largest such conservatories anywhere in the tropics, he adds.

The garden itself will be separated into three general areas. The first will have a 'plant and people' theme, exploring the cultural association of plants.

The plants will be split into four 'rooms' to reflect Singapore's multi-racial background. For example, one 'room' could have herbal plants that are used in traditional Chinese medicine, and another might have a coconut tree to reflect its Malay heritage, he says.

On another side of the garden will be a 'plant and planet' area that highlights the significant role of plants. A new rainforest will be created here and will include endangered species of plants found in Malaysia and Indonesia.

Between the two areas is what Mr Grant calls the central spine, where most of the SuperTrees are and where nature and technology meet.

Ah yes, those SuperTrees. Only one will be as high as 50m, and at this early stage, the idea of a bar atop it is only a possibility. The rest of the 18 will be about 25m to 35m tall.

Each consists of a concrete core surrounded by a net-like skin made of steel, where tropical ferns, orchids, climbers and bromeliads will grow, creating a 'trunk'.

Mr Grant says: 'I wanted to create something that will have a 'wow' factor. At night, they can be used as landmark structures when they are lit.'

At their height, these trees will be taller than real ones. Two of the SuperTrees will be connected by a walkway 20m to 25m above ground that visitors could take a stroll on.

As for the conservatories, more awe is in store there, too.

Their designer, architect Paul Baker of Wilkinson Erye Architect, says they will allow plants that are not usually seen in Singapore to be planted.













PROVIDING SHADE: 'Ribs' on the exterior of the conservatories(Above), which are designed by architect Paul Baker (Next)will provide shade and regulate the amount of heat entering the structures. -- ST PHOTO: ASHLEIGH




















The 1.4ha cool, dry conservatory will contain an astonishing range of plants and flowers commonly found in the Mediterranean and semi-arid sub-tropical regions, such as rosemary, lavender, roses and proteas. It will also have a large central space in which a display of flowers will change every four to six weeks.

Dr Tan Wee Kiat, NParks' project director and adviser, says this conservatory will allow spring flowers to be grown in Singapore's tropical climate.

The 0.9ha cool, moist conservatory will have a tropical highland environment, with a rainforest inside and a lattice covered with orchids and mosses. It will also boast a 35m waterfall.

Mr Baker, 48, says both conservatories will have 'ribs' on their exterior that provide shade and control the heat entering them.

The temperatures in both conservatories will be kept at 23 degC in the day. 'It will always be at a comfortable temperature for visitors, regardless of whether it is sunny or raining outside,' says Mr Baker. This is his first project in Singapore.

At night, the temperatures will drop to 10 to 13 degC. 'The plants need a cooler environment to flower,' says Mr Grant.

Mr Mah says the conservatories are expected to cost $300 million to build, and to recover the cost of building and maintenance, visitors are likely to pay a fee to enter.

He adds that the conservatories will be built to be energy-efficient, and will consume less energy than an equivalent air-conditioned office building.

Mr Grant says the garden is his firm's most significant project to date, and the goal is to make it the most popular open space in Singapore. Grant Associates beat 170 firms from 24 countries to land the project, and was chosen for its vibrant and colourful concept.

Indeed the garden will be one of many hues. Mr Grant says there will be colourful shrubs planted around the garden, and especially in the conservatories. He will also be introducing new species of plants that have yet to be seen in Singapore. 'There will be thousands of species in the garden,' he says.

An existing lake will also be expanded, with a timber walkway surrounding it.

The garden will be more than a place for green lovers. In the works are also food-and-beverage outlets along the waterfront.

Mr Mah told reporters that work on the Gardens at Marina East and Marina Centre will start only after 2010.

As for Gardens at Marina South and its tree-mendous towers, Mr Grant says: 'I hope visitors go 'cor blimey' or the Singapore equivalent when they see it.'

Bay In Bloom

Source : The Straits Times, Nov 10, 2007

A guide on what to expect at the upcoming Marina Bay gardens
















COOLING OFFERINGS: The cool, moist conservatory will house a rainforest and a lattice covered with orchids and mosses. -- PHOTO: GRANT ASSOCIATES


# Gardens at Marina South

THE largest of the three gardens, this 54ha garden is located next to the Marina Bay Sands Integrated Resort. It is designed by Britain-based design firm Grant Associates and highlights include its 18 SuperTrees and two conservatories - one will be dry, the other moist.

# Gardens at Marina East

LOCATED on the western bank of the Marina Barrage, this 32ha garden by Britain-based design firm Gustafson Porter will have a more serene ambience with terraced water gardens. Work on the garden will start after Gardens at Marina South is completed.

# Gardens at Marina Centre

AT 15ha, this is the smallest of the three gardens. Its 2.8km waterfront promenade starts near the Esplanade - Theatres by the Bay and winds towards Kallang Basin. Its design will be firmed up at a later date.

Hugo Boss Leads The Way With IR Boutique

Source : The Business Times, November 7, 2007

LUXURY brand Hugo Boss will set up a 2,000 square feet boutique in the upcoming Marina Bay Sands integrated resort (IR) - the first luxury brand to confirm taking space there - as it seeks to grow its sales in Singapore by as much as 50 per cent over the next three years.

'I see a potential upside for growth of about 50 per cent over the next few years, especially with the new stores,' said Hugo Boss chief executive Bruno Salzer. 'We will definitely have a presence in the two casinos.'

In addition to the Marina Bay Sands boutique and the one targeted for Genting's Sentosa IR, Hugo Boss is also keen to have a presence in upcoming Orchard Road mall Ion Orchard, said Brian Ang, managing director for the Hugo Boss franchise in Singapore and Bangkok. 'It is important for us to be in Ion Orchard,' he said. 'Most probably we will be somewhere prominent in the mall.'

Hugo Boss recently celebrated its 20th anniversary in Singapore, for which Dr Salzer flew into town. The upcoming boutiques in Singapore are part of Hugo Boss's push to expand in the region at a fast clip.

The label has about 170 stores in Asia (excluding Japan) at present, but Dr Salzer wants to grow the number by about 15-20 stores yearly over the next few years, he said. 'Asia now contributes about 10-11 per cent of total sales, and I expect double-digit growth over the next couple of years,' said Dr Salzer.

Within the region, Japan and China are the biggest markets for the group. Of the 15-20 new stores the brand aims to add each year, the bulk are likely to be in China, he said. But Dr Salzer is also excited about the potential for growth in Singapore, especially with the new stores coming up.

Mr Ang said that in addition to the planned new stores, Hugo Boss is looking at revamping its existing boutiques.

Right now, the brand's flagship boutiques in Ngee Ann City are split across two levels. But by the end of next year, the brand hopes to have its space all on one floor, - with a 7,000 sq ft floor plate - Mr Ang said. He did not specify if the boutique will be in Ngee Ann City as well. In addition, there are also plans to revamp Hugo Boss's 1,600 sq ft store in Paragon. Mr Ang is looking at taking up more space. The brand also has a boutique at Changi Airport.

The Boss boutique in Marina Bay IR will be 'more luxurious' and will be designed to appeal to high-rollers, Mr Ang said.

Foreign Companies Still Keen On Commercial Property In CBD

Nov 10, 2007

This year is a year which witnessed a lot of buying activities of commercial buildings in the Central Business District (CBD) by foreign companies.

Goldman Sachs real estate fund

In August, a Goldman Sachs real estate fund acquired Chevron House at Raffles Place for $730 million or a record $2,780 psf of NLA. Chevron House is a leasehold 99-year project.

The same group is also believed to be laying its hands on the next door Hitachi Tower for about $3,000 psf. The 37-storey office tower facing Collyer Quay is on a 999-year leasehold tenure.

In November 2006, it paid $690 million for two buildings that house the headquarters of DBS Group Holdings.

Macquarie Global Property Advisors (MGPA)

The other major overseas investor who has been busy acquiring commercial property here is Macquarie Global Property Advisors (MGPA). In September, it paid $2.02 billion or $1,409 psf ppr for a mixed development site within the Marina Bay area just behind One Shenton in a Government Land Sale Programme.

The winning bid is a record for a 99-year leasehold commercial site slated primarily for office development.

Earlier in March, an MGPA fund bought Temasek Tower in the Anson Road area for $1.04 billion or $1,550 psf of NLA.

Later, MGPA sold 12 floors at the neighbouring Springleaf Tower for $225 million to a unit of German pension fund manager SEB, making a neat profit as it had bought the floors for only $134 million in January.

SEB also bought SIA Building in April for about $526 million or $1,783 psf from TSO Investment, a fully-owned subsidiary of a property fund managed by CLSA Capital Partners. TSO had purchased the office block from Singapore Airlines in June 2006.

CLSA Capital Partners

CLSA Capital Partners, a global private-equity investor, has equity of $430 million in its Asian operation and can borrow three times that to fund purchases. Unlike local Real Estate Investment Trusts (REITs) which are restricted by MAS’ strict borrowing rules (maximum 60% of asset value) and the time it takes to get shareholder approval to raise funds.

In June 2006, CLSA Capital Partners’ subsidiary TSO Investment bought SIA Building at Robinson Road for around $260 million.

In April 2007, it resold the national airline’s former Headquarters to a German pension fund manager SEB for around $525 million or about $1,780 psf of net lettable area.

This is a new record price for an office building in Raffles Place and Shenton Way areas.

Built in 1997, SIA Building is 35-storey tall and has a total net lettable area of about 295,000 sq ft. It comprises 31 levels of office space, some retail space and parking facilities. It has a leasehold status and still has a remaining lease of 86 years.

Experts Sanguine About Real Estate In Singapore

Nov 10, 2007

“To buy or not to buy?” This intriguing question has attracted a full-house turnout
of about 170 investors at a dinner hosted by financial advisory firm ipac.

While there may be some concerns about the withdrawal of deferred payment scheme for uncompleted projects, the good news is that none in the panel of experts at the evening event foresee a property bubble.

The surprise move by the government to withdraw the popular deferred payment scheme, the rocket fuel for the recent property bull-run has cast a cloud over residential property's upward price trend.

Here is a list of the panel’s observation
Positive factors

The economic fundamentals unpinning the recent property bull-run are growth in employment, strong wage rise and increase in personal spending power. The evidence is in the strong take up rate of mass market properties. If there is a property bubble, it is in the early stages.

With employment booming, wages soaring and the real mortgage rate at its lowest level since 1990, the outlook still looks very promising.

The cost of servicing mortgage debt is at just about 14% of household income, compared to 50% in mature markets like London. The healthy gauge for such a ratio is around 40% for borrowers in developed countries.

Property values are still lagging behind the levels of the 1996 boom. When adjusted for the growth in incomes, the private residential property price index is actually only more than half of what it was in 1996.

The price gap between new and resale homes in the prime districts has widened sharply in 2007, reaching a peak of 60%, against a medium to long-term premium gap of 32% to 38%. This has been caused by the old deferred payment scheme which tended to inflate prices a little.

Prices in the resale market tend to reflect genuine demand better as there is no deferred payment scheme to help buyer tide over the initial period. So, when a purchaser does not have sufficient cash or could not qualify for a bank loan, he simply cannot buy.

With prices soaring in the prime areas, rentals in that segment have edged below the 10-year Singapore bond yield.

With the elimination of a speculative element, i.e. the old deferred payment scheme, prices of new homes will take a breather in the near term of next two to three years. In addition, the higher supply of new stocks in the next two to three years will no doubt soften the price; but, a sharp correction is not likely.

However, it does not mean that investors should altogether exit the real estate investment. In fact, property's ability to help diversify a portfolio is unrivalled by other investments such as stocks and bonds.

For example, property provided a positive hedge against inflation between 1992 and 2007, a period in which stocks and bonds did not provide such a hedge.

While all types of property offered a more-than perfect hedge against inflation, the best hedge was that offered by detached housing, followed by semi-detached homes.

Concerns ahead
(i) Price gap widening

The price gap between new uncompleted homes and resale homes should narrow from now on with general prices easing. In the last one-and-a-half year, price hike was around 20% or more that was way above the country’s GDP growth. In the near time, price rise should be within 10% in line with nominal GDP.

(ii) Yield may be falling

In other words, retail investors going for yield should not risk their nest-egg if their portfolio is not huge enough. For better yield, investing in a global property fund or a local Real Estate Investment Trust (REIT) is better.

Forecast ahead

While sentiment will be weakened by the negative news originating from the US in the short term, property prices especially residential properties are supported by strong fundamentals such as high wage increases and the inherent constraint in physical supply of real estate.

However, Asia as a whole will be better off over the medium-term. Asian property prices were not high relative to per-capita income, and advances have been modest compared to those in the UK, the US and Australia. The drivers include low real interest rates and positive demographics.

Rental rates for residential units will continue to climb on the back of the relative net increase in housing stock due to low completion and relatively high demolition due to en bloc sale. The rise in rental rates will likely continue to support further price appreciation.

In the nutshell, where Singapore as an economic unit is heading will decide the direction of real estate investment. At the end of the day, it is whether Singaporeans will be able to keep their jobs or businesses and will their salaries/profits increase.