Source : Today, Tuesday, November 27, 2007
The URA yesterday announced the sale of two transitional office sites at Mountbatten Road and Aljunied Road/Geylang East Avenue 1 to ease the office space supply crunch in the short to medium term.
With a site area of 2.12 ha, the land parcel at Mountbatten Road can yield a maximum gross floor area of 20,000 sq m.
It is situated beside the site of the future Mountbatten MRT station on the Circle Line, expected to be completed by 2010.
The second land parcel at Aljunied Road/Geylang East Avenue 1 sits on a 1.88-ha site adjacent to the Aljunied MRT station. It can yield a maximum permissible gross floor area of 18,885 sq m.
Both sites are available on 15-year leases.
The office buildings that can be developed on these two sites are subjected to three-storey height restrictions.
The tender for the Mountbatten Road site closes at noon on Jan 9, 2008, while the tender for the Aljunied Road/Geylang East Avenue 1 land parcel closes at noon on Jan 16.
The successful tenders will be based on tendered land price only.
Tuesday, November 27, 2007
Tap S’pore Reit Market, Aussie Investors Urged
Source : The Business Times, November 27, 2007
AUSTRALIAN fund managers have been encouraged to tap the opportunities in Singapore’s real estate investment trust (Reit) market.
A recent seminar at the Sydney Opera House highlighted to Australian investors the burgeoning Singapore Reit market and the opportunities available.
The seminar was co-hosted by Australian companies Freehills, nabCapital and Trust. These companies said they are leveraging on the strong working relationship between Australia and Singapore to help Australian fund managers understand the legal and regulatory requirements and to take advantage of the opportunities provided by the Reits market in the Republic.
Keynote speakers included Singapore High Commissioner to Australia Eddie Teo, Monetary Authority of Singapore financial markets strategy executive director Kola Luu and Singapore Exchange senior director Kevin Gin.
According to Trust, the Singapore Reit market has grown around 90 per cent per year since commencing in 2002.
‘While Australia has extensive expertise in this asset class, Australian fund managers are few on the ground in Singapore.
‘As a result of this seminar, I am aware of approximately 20 companies looking to leverage their local strengths and expertise in the Australian listed property trust market to take advantage of the phenomenal growth and future potential in Singapore,’ said Trust’s executive general manager for institutional services Vicki Allen.
AUSTRALIAN fund managers have been encouraged to tap the opportunities in Singapore’s real estate investment trust (Reit) market.
A recent seminar at the Sydney Opera House highlighted to Australian investors the burgeoning Singapore Reit market and the opportunities available.
The seminar was co-hosted by Australian companies Freehills, nabCapital and Trust. These companies said they are leveraging on the strong working relationship between Australia and Singapore to help Australian fund managers understand the legal and regulatory requirements and to take advantage of the opportunities provided by the Reits market in the Republic.
Keynote speakers included Singapore High Commissioner to Australia Eddie Teo, Monetary Authority of Singapore financial markets strategy executive director Kola Luu and Singapore Exchange senior director Kevin Gin.
According to Trust, the Singapore Reit market has grown around 90 per cent per year since commencing in 2002.
‘While Australia has extensive expertise in this asset class, Australian fund managers are few on the ground in Singapore.
‘As a result of this seminar, I am aware of approximately 20 companies looking to leverage their local strengths and expertise in the Australian listed property trust market to take advantage of the phenomenal growth and future potential in Singapore,’ said Trust’s executive general manager for institutional services Vicki Allen.
Sub-Prime Crisis Takes Its Toll On European Markets
Source : The Business Times, November 27, 2007
But stability can be expected if the US avoids recession: DTZ
Shockwaves from the US sub-prime mortgage crisis a few months ago are reverberating through the real estate markets of the UK and Europe, with deals shelved or abandoned.
In its European Quarterly 2007 report, DTZ says the volume of transactions could fall at least 15-20 per cent in the third and fourth quarters this year, from record volumes of 48 billion euros (S$102.7 billion) and 53 billion euros in the first and second quarters respectively.
However, if the US avoids recession, stability can be expected.
DTZ group chief executive Mark Struckett says that in the UK other than central London, a price correction in commercial estate market has been underway since the second half of 2006, so the sub-prime fallout is less of a shock.
The current situation is also being 'accepted by vendors', he says.
DTZ says the effect so far is not so much the delaying of deals but renegotiation of price with the re-pricing of risk as providers of debt capital become much more risk-averse.
Given upward pressure on yields in many locations, DTZ believes property returns will be heavily dependent on sound occupier fundamentals and effective asset management.
Making a comparison between current market conditions and the period following the Sept 11, 2001 terrorist attacks in the United States, Mr Struckett says that unlike five years ago, 'occupational demand still looks good'.
In general, DTZ does not expect rental prospects to be substantially undermined by recent developments, though there may be increased downside risk for areas such as London's West End, where hedge funds and private equity firms are important players.
There could be wider adverse repercussions in the City of London and in Canary Wharf if reduced profitability affects the expansion plans of some banking sector firms.
Even so, Mr Struckett says a slowdown in new developments could lead to a supply shortage in 2010-2011, possibly curtailing any prolonged crisis.
So while debt-driven investors will find it more difficult to make deals add up, DTZ believes a correction in yields in some markets could present attractive opportunities for equity buyers such as life insurance and pension funds which to some extent may have been priced out of the market by highly leverage investors.
Quality assets in prime locations could benefit in a generally more risk-averse market.
DTZ believes a flight to quality is likely to put deals involving secondary locations or older stock most at risk, with investors increasingly willing to pay a premium for covenant strength and reliable rental income.
But stability can be expected if the US avoids recession: DTZ
Shockwaves from the US sub-prime mortgage crisis a few months ago are reverberating through the real estate markets of the UK and Europe, with deals shelved or abandoned.
In its European Quarterly 2007 report, DTZ says the volume of transactions could fall at least 15-20 per cent in the third and fourth quarters this year, from record volumes of 48 billion euros (S$102.7 billion) and 53 billion euros in the first and second quarters respectively.
However, if the US avoids recession, stability can be expected.
DTZ group chief executive Mark Struckett says that in the UK other than central London, a price correction in commercial estate market has been underway since the second half of 2006, so the sub-prime fallout is less of a shock.
The current situation is also being 'accepted by vendors', he says.
DTZ says the effect so far is not so much the delaying of deals but renegotiation of price with the re-pricing of risk as providers of debt capital become much more risk-averse.
Given upward pressure on yields in many locations, DTZ believes property returns will be heavily dependent on sound occupier fundamentals and effective asset management.
Making a comparison between current market conditions and the period following the Sept 11, 2001 terrorist attacks in the United States, Mr Struckett says that unlike five years ago, 'occupational demand still looks good'.
In general, DTZ does not expect rental prospects to be substantially undermined by recent developments, though there may be increased downside risk for areas such as London's West End, where hedge funds and private equity firms are important players.
There could be wider adverse repercussions in the City of London and in Canary Wharf if reduced profitability affects the expansion plans of some banking sector firms.
Even so, Mr Struckett says a slowdown in new developments could lead to a supply shortage in 2010-2011, possibly curtailing any prolonged crisis.
So while debt-driven investors will find it more difficult to make deals add up, DTZ believes a correction in yields in some markets could present attractive opportunities for equity buyers such as life insurance and pension funds which to some extent may have been priced out of the market by highly leverage investors.
Quality assets in prime locations could benefit in a generally more risk-averse market.
DTZ believes a flight to quality is likely to put deals involving secondary locations or older stock most at risk, with investors increasingly willing to pay a premium for covenant strength and reliable rental income.
Riverwalk, Cairnhill Mansion And Site Next Door Up For Sale
Source : The Business Times, November 27, 2007
Three prime sites - one zoned for commercial use and two for residential use - went on the market yesterday.
On the block: The guide price for Cairnhill Mansion (above) and the adjoining site is $443.6 million and $139.4 million respectively, or $2,800 psf per plot ratio
The Riverwalk near Clarke Quay is offered through a collective sale, said property firm Jones Lang LaSalle (JLL) which is marketing the project.
Market watchers reckon that the project could fetch about $700 million or $1,735 per square foot (psf). The 82,317 sq ft site has a 4.9 plot ratio. It can be redeveloped into a commercial building with a gross floor area of 403,351 sq ft, subject to approval and payment of development charge (DC) of about $3 million and premium for topping up the lease.
The Riverwalk is now zoned for residential and commercial use. It comprises 181 commercial units ranging from 54 sq ft to 20,161 sq ft, 118 apartments ranging from 818 sq ft to 3,821 sq ft and 290 parking lots.
'The potential purchaser may redevelop the property into a part commercial/part residential development or a Soho development,' said JLL regional director Lui Seng Fatt. 'The options available for this site are extensive.'
Elsewhere, Cairnhill Mansion and a separate adjoining site are being offered for sale. Cairnhill Mansion is being offered through a collective sale and the adjoining site is being offered by an individual owner, said Knight Frank, which is marketing both sites.
The guide price for Cairnhill Mansion is $443.6 million. As there is no DC payable, the price works out to $2,800 psf per plot ratio (ppr). The guide price for the adjoining site is $139.4 million. Including a DC of about $16 million, this works out to $2,800 psf ppr. Together, the sites add up to 62,903 sq ft.
The successful developer of the combined sites could build 100 units averaging 2,000 sq ft each, Knight Frank said.
'Strong demand for high-end, luxury condominium developments coupled with the rosy outlook for the property market, should increase the site's attractiveness to developers.'
The Cairnhill area, being a stone's throw from Orchard Road, is attracting super-luxury developments like The Hamilton and Ritz Carlton Residences.
Selling prices for these projects are expected to start from at least $4,000 to $4,500 psf, said Knight Frank. Recent launches like Hilltops are already achieving prices in the mid to high $4,000s psf, it said.
The tenders for both sites closes at 4pm on Jan 15 next year. The tender for The Riverwalk closes at 3pm on Jan 22.
Three prime sites - one zoned for commercial use and two for residential use - went on the market yesterday.
On the block: The guide price for Cairnhill Mansion (above) and the adjoining site is $443.6 million and $139.4 million respectively, or $2,800 psf per plot ratioThe Riverwalk near Clarke Quay is offered through a collective sale, said property firm Jones Lang LaSalle (JLL) which is marketing the project.
Market watchers reckon that the project could fetch about $700 million or $1,735 per square foot (psf). The 82,317 sq ft site has a 4.9 plot ratio. It can be redeveloped into a commercial building with a gross floor area of 403,351 sq ft, subject to approval and payment of development charge (DC) of about $3 million and premium for topping up the lease.
The Riverwalk is now zoned for residential and commercial use. It comprises 181 commercial units ranging from 54 sq ft to 20,161 sq ft, 118 apartments ranging from 818 sq ft to 3,821 sq ft and 290 parking lots.
'The potential purchaser may redevelop the property into a part commercial/part residential development or a Soho development,' said JLL regional director Lui Seng Fatt. 'The options available for this site are extensive.'
Elsewhere, Cairnhill Mansion and a separate adjoining site are being offered for sale. Cairnhill Mansion is being offered through a collective sale and the adjoining site is being offered by an individual owner, said Knight Frank, which is marketing both sites.
The guide price for Cairnhill Mansion is $443.6 million. As there is no DC payable, the price works out to $2,800 psf per plot ratio (ppr). The guide price for the adjoining site is $139.4 million. Including a DC of about $16 million, this works out to $2,800 psf ppr. Together, the sites add up to 62,903 sq ft.
The successful developer of the combined sites could build 100 units averaging 2,000 sq ft each, Knight Frank said.
'Strong demand for high-end, luxury condominium developments coupled with the rosy outlook for the property market, should increase the site's attractiveness to developers.'
The Cairnhill area, being a stone's throw from Orchard Road, is attracting super-luxury developments like The Hamilton and Ritz Carlton Residences.
Selling prices for these projects are expected to start from at least $4,000 to $4,500 psf, said Knight Frank. Recent launches like Hilltops are already achieving prices in the mid to high $4,000s psf, it said.
The tenders for both sites closes at 4pm on Jan 15 next year. The tender for The Riverwalk closes at 3pm on Jan 22.
Cairnhill Mansion Up For Collective Sale
Source : The Straits Times, Nov 27, 2007
THE Cairnhill Mansion apartment block near the Goodwood Park Hotel, plus an adjoining site, have been put up for collective sale - a transaction that could total nearly $600 million.
The owners of Cairnhill Mansion, which is about 40 years old, want at least $443.6 million for their estate, comprising 60 apartments of 2,024 sq ft each and an 8,525 sq ft penthouse. The freehold block is on a site of 43,103 sq ft.
The adjoining site of 1,800 sq m has a guide price of about $139.4 million.
These price the land at about $2,800 per sq ft (psf) per plot ratio, inclusive of development charge, a level market observers feel may be too high for the area.
It suggests a break-even price of $3,500 psf to $3,600 psf. Last month, units at the luxury development Hilltops at Cairnhill Circle went for a median price of $3,711 psf.
Marketing agent Knight Frank said yesterday that Cairnhill Mansion, which has a plot ratio of 2.8, was earlier granted permission from the Government to raise the ratio to 3.675.
The adjoining site also has a plot ratio of 2.8.
Both sites will be sold by separate tenders, which will close on the same day - Jan 15.
Knight Frank said a developer buying both plots could expect to build about 100 apartments, each of about 2,000 sq ft. Future development there can go up to 36 storeys.
THE Cairnhill Mansion apartment block near the Goodwood Park Hotel, plus an adjoining site, have been put up for collective sale - a transaction that could total nearly $600 million.
The owners of Cairnhill Mansion, which is about 40 years old, want at least $443.6 million for their estate, comprising 60 apartments of 2,024 sq ft each and an 8,525 sq ft penthouse. The freehold block is on a site of 43,103 sq ft.
The adjoining site of 1,800 sq m has a guide price of about $139.4 million.
These price the land at about $2,800 per sq ft (psf) per plot ratio, inclusive of development charge, a level market observers feel may be too high for the area.
It suggests a break-even price of $3,500 psf to $3,600 psf. Last month, units at the luxury development Hilltops at Cairnhill Circle went for a median price of $3,711 psf.
Marketing agent Knight Frank said yesterday that Cairnhill Mansion, which has a plot ratio of 2.8, was earlier granted permission from the Government to raise the ratio to 3.675.
The adjoining site also has a plot ratio of 2.8.
Both sites will be sold by separate tenders, which will close on the same day - Jan 15.
Knight Frank said a developer buying both plots could expect to build about 100 apartments, each of about 2,000 sq ft. Future development there can go up to 36 storeys.
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