Source : The Business Times, May 23, 2009
CapitaLand unit to develop site into 1,000-unit condo
THE $548 million sale of Gillman Heights Condominium to Ankerite Pte Ltd, a subsidiary of CapitaLand, was completed yesterday, the developer said in a statement. Ankerite will redevelop the site into a condominium with about 1,000 apartments.
The sale was not completed by the previous deadline of May 15, leading to some speculation that the collective sale might be off. But lawyers for the buyers and sellers quickly clarified that they were looking at the new deadline of May 22 instead.
The sale of the 99-year-leasehold estate on Alexandra Road dragged on for two years since the deal was first inked in 2007. The sale of Gillman Heights finally got the go-ahead this February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the deal.
But last week, last-minute hurdles emerged.
One sticking point was the transfer of $750,000 from the management corporation's (MCST) management fund to the sinking fund in August 2007 and March 2008, which was discovered during the due diligence exercise.
The lawyers for the buyers wanted the transfer reversed. That issue, and a separate suit by a local contractor against the MCST, were both eventually resolved - clearing the way for the sale to go through.
Earlier reports had indicated that owners of the estate's 607 units stood to receive between $870,000 and $950,000 for their apartments.
Saturday, May 23, 2009
Ferrell Puts 80 RiverGate Units Back On Market
Source : The Business Times, May 23, 2009
30 to 40 apartments have since been sold at private preview
FERRELL Asset Management, which counts Indonesia's Lippo Group as one of its investors, has put around 80 apartments at the RiverGate back on the market for sale, BT understands.
SELLING POINT - The 545-unit freehold condominium in the Robertson Quay area received Temporary Occupation Permit in March
According to agents, a private preview began a few days ago and around 30 to 40 units have been taken up. The 545-unit freehold condominium in the Robertson Quay area received Temporary Occupation Permit in March, and was a joint development between CapitaLand and Hwa Hong Corporation.
The apartments on sale are spread over several floors and comprise three-bedders, four-bedders and penthouses. They are selling at $1,450 - $1,550 psf, one source said. Prices of lower-level units may even start from $1,380 psf.
According to Urban Redevelopment Authority data on caveats lodged, recent transactions of RiverGate units took place between $1,150 - $1,470 psf.
The seller of the apartments is believed to be fund manager Ferrell Asset Management. One of its funds, the Ferrell Premier Real Estate Investment Fund, had paid over $180 million for 100 units in 2005, bought in two separate tranches of 80 and 20 units.
Previous reports did not mention the per-square-foot price of the fund's units. When RiverGate was first launched in 2005, units were priced at $1,080 psf on average. That subsequently rose to $1,600 psf in the final phase of release in 2006.
Ferrell Premier Real Estate Investment Fund's website states that the fund invests in the 'high-yielding sector' of Singapore's property market.
'The objective of this sub-fund is to achieve returns of 10 - 15 per cent per annum through investments in properties with medium to long-term capital appreciation potential.'
BT understands that associates of Knight Frank and DTZ are marketing the units. Savills could also be marketing the units.
30 to 40 apartments have since been sold at private preview
FERRELL Asset Management, which counts Indonesia's Lippo Group as one of its investors, has put around 80 apartments at the RiverGate back on the market for sale, BT understands.
SELLING POINT - The 545-unit freehold condominium in the Robertson Quay area received Temporary Occupation Permit in MarchAccording to agents, a private preview began a few days ago and around 30 to 40 units have been taken up. The 545-unit freehold condominium in the Robertson Quay area received Temporary Occupation Permit in March, and was a joint development between CapitaLand and Hwa Hong Corporation.
The apartments on sale are spread over several floors and comprise three-bedders, four-bedders and penthouses. They are selling at $1,450 - $1,550 psf, one source said. Prices of lower-level units may even start from $1,380 psf.
According to Urban Redevelopment Authority data on caveats lodged, recent transactions of RiverGate units took place between $1,150 - $1,470 psf.
The seller of the apartments is believed to be fund manager Ferrell Asset Management. One of its funds, the Ferrell Premier Real Estate Investment Fund, had paid over $180 million for 100 units in 2005, bought in two separate tranches of 80 and 20 units.
Previous reports did not mention the per-square-foot price of the fund's units. When RiverGate was first launched in 2005, units were priced at $1,080 psf on average. That subsequently rose to $1,600 psf in the final phase of release in 2006.
Ferrell Premier Real Estate Investment Fund's website states that the fund invests in the 'high-yielding sector' of Singapore's property market.
'The objective of this sub-fund is to achieve returns of 10 - 15 per cent per annum through investments in properties with medium to long-term capital appreciation potential.'
BT understands that associates of Knight Frank and DTZ are marketing the units. Savills could also be marketing the units.
Friday, May 22, 2009
Gillman Heights Sold
Source : The Straits Times, May 22, 2009
THE protracted and controversial sale of Gillman Heights finally came to an end on Friday, when owners and buyers legally completed the $548 million deal.
The estate's owners were anxious that buyers got the cold feet, but Ankerite's lawyers Rajah and Tann said the buyers had every intention to complete the sale. -- PHOTO: CAPITALAND
Lawyers Lee and Lee, acting for the Alexandra Road estate's sales committee, told The Straits Times on Friday evening that the deal had finally gone through.
This comes after the fate of the estate seemed to hang in the balance when purchasers, Ankerite, led by property developer Capitaland, did not complete the sale by its due date last week on May 15.
The estate's owners were anxious that buyers got the cold feet, but Ankerite's lawyers Rajah and Tann said the buyers had every intention to complete the sale.
Ankerite's lawyers had raised some housekeeping matters regarding the estate's management funds, and wanted to get proof that these matters were resolved before going ahead with the deal.
This puts an end to a saga that lasted more than two years since the sale was first inked in February 2007.
THE protracted and controversial sale of Gillman Heights finally came to an end on Friday, when owners and buyers legally completed the $548 million deal.
The estate's owners were anxious that buyers got the cold feet, but Ankerite's lawyers Rajah and Tann said the buyers had every intention to complete the sale. -- PHOTO: CAPITALANDLawyers Lee and Lee, acting for the Alexandra Road estate's sales committee, told The Straits Times on Friday evening that the deal had finally gone through.
This comes after the fate of the estate seemed to hang in the balance when purchasers, Ankerite, led by property developer Capitaland, did not complete the sale by its due date last week on May 15.
The estate's owners were anxious that buyers got the cold feet, but Ankerite's lawyers Rajah and Tann said the buyers had every intention to complete the sale.
Ankerite's lawyers had raised some housekeeping matters regarding the estate's management funds, and wanted to get proof that these matters were resolved before going ahead with the deal.
This puts an end to a saga that lasted more than two years since the sale was first inked in February 2007.
5 Buildings Get Grants To Install Solar Panels
Source : The Business Times, May 22 2009
EDB has also given grants to four public sector projects.
FIVE commercial buildings for office, retail and manufacturing use have received grants from a $20 million scheme to install solar panels, the Economic Development Board said yesterday.
It did not reveal the amount disbursed from the fund, saying that it is a small percentage. It noted that firms can receive grants of up to 40 per cent of the cost for solar panels.
Grants to 14 private and public solar projects so far total $8 million. or 21.6 per cent, of $37 million of funds, EDB said. The $37 million combines the $20 million solar capability scheme and $17 million set aside for clean energy research and test-bedding (Cert).
The five private sector projects that have received grants are: City Developments Ltd's Tampines Grande, Lend Lease Retail's 313@Somerset, Robert Bosch's regional headquarters building, Lonza Biologics' manufacturing facility and Applied Materials' manufacturing facility.
By year-end, Applied Materials is set to put up the largest solar installation in Singapore at its operations centre at Changi. The 5.7 sq metre panel to be installed - about the size of a Western king-size bed - can generate 430 megawatt hours (MWh) per annum. This is enough to power 95 four-room HDB flats.
CDL's office building Tampines Grande will incorporate a solar power system to provide air-conditioning to the atrium, the company said. It expects to save 2.7 million kilowatt hours (kWh) of electricity per year.
Besides the five commercial projects, EDB has given grants to four public sector projects under Cert - Ngee Ann Polytechnic, Changi Airport budget terminal, the National Environment Agency's Meteorological Station and Khoo Teck Puat Hospital.
With the earlier five public sector projects, Singapore's total installed base of solar power systems stands at 5MWh, up from 200kWh in mid-2008.
EDB has also given grants to four public sector projects.
FIVE commercial buildings for office, retail and manufacturing use have received grants from a $20 million scheme to install solar panels, the Economic Development Board said yesterday.
It did not reveal the amount disbursed from the fund, saying that it is a small percentage. It noted that firms can receive grants of up to 40 per cent of the cost for solar panels.Grants to 14 private and public solar projects so far total $8 million. or 21.6 per cent, of $37 million of funds, EDB said. The $37 million combines the $20 million solar capability scheme and $17 million set aside for clean energy research and test-bedding (Cert).
The five private sector projects that have received grants are: City Developments Ltd's Tampines Grande, Lend Lease Retail's 313@Somerset, Robert Bosch's regional headquarters building, Lonza Biologics' manufacturing facility and Applied Materials' manufacturing facility.
By year-end, Applied Materials is set to put up the largest solar installation in Singapore at its operations centre at Changi. The 5.7 sq metre panel to be installed - about the size of a Western king-size bed - can generate 430 megawatt hours (MWh) per annum. This is enough to power 95 four-room HDB flats.
CDL's office building Tampines Grande will incorporate a solar power system to provide air-conditioning to the atrium, the company said. It expects to save 2.7 million kilowatt hours (kWh) of electricity per year.
Besides the five commercial projects, EDB has given grants to four public sector projects under Cert - Ngee Ann Polytechnic, Changi Airport budget terminal, the National Environment Agency's Meteorological Station and Khoo Teck Puat Hospital.
With the earlier five public sector projects, Singapore's total installed base of solar power systems stands at 5MWh, up from 200kWh in mid-2008.
Financial Crisis Not Over Yet, Says Greenspan
Source : The Business Times, May 22, 2009
Banks need more money, mortgage crisis still serious
(NEW YORK) Former Fed chairman Alan Greenspan signalled that the financial crisis has yet to end even as borrowing costs tumble, warning that US banks must raise 'large' amounts of money.
'There is still a very large unfunded capital requirement in the commercial banking system in the United States and that's got to be funded,' Mr Greenspan said in an interview yesterday in Washington. He also said that 'until the price of homes flattens out, we still have a very serious potential mortgage crisis'.
Mr Greenspan's comments suggest that he sees a bigger capital shortfall in the banking system than reflected in regulators' stress tests on the 19 biggest US lenders. Treasury Secretary Timothy Geithner told lawmakers on Wednesday that banks have issued more than US$56 billion in new stock or debt since the tests found 10 firms needed to raise about US$75 billion.
A lack of capital at banks may inhibit lending to consumers and businesses, tempering any economic recovery. The former Fed chief said that the continued slump in home prices is putting at risk millions of borrowers.
Home prices will only start to stabilise once the 'liquidation' rate of single-family homes has peaked, he said. 'I don't think we're there yet.'
More broadly, 'things have unquestionably improved' across the economy and financial markets, he said.
The London interbank offered rate, or Libor, for three-month US dollar loans fell three basis points on Wednesday to 0.75 per cent, the British Bankers' Association said, the 35th straight drop. The Libor-OIS spread, a gauge of banks' reluctance to lend, narrowed to 55 basis points, the least since February 2008. It was as high as 364 basis points in October.
That's an 'extraordinary improvement', said Mr Greenspan, who last year said that the credit crisis would be at an end once the Libor-OIS spread narrowed past 25 basis points. 'Virtually all of the various credit spreads, not only in the US but globally, have come down.'
Alan Blinder, a former Fed vice-chairman, also said that 'if there are no more reversals, history will judge that by May 2009, we will have passed the worst of the crisis.'
'My current guess would be in terms of GDP the second quarter will be a bottom and by the third quarter we're eking out a positive,' he said.
Mr Greenspan agreed, estimating that US gross domestic product will decline at an annual rate of one per cent in the second quarter.
Members of the Fed's Open Market Committee who met in Washington April 28-29 saw 'some signs pointing towards economic stabilisation', and some officials detected prospects for 'a trough' in the housing market's downturn, according to minutes of the meeting released on Wednesday in Washington.
Fed governors and district-bank presidents project that the economy will shrink 1.3-2 per cent this year and grow 2-3 per cent in 2010, according to median estimates released on Wednesday. -- Bloomberg
Banks need more money, mortgage crisis still serious
(NEW YORK) Former Fed chairman Alan Greenspan signalled that the financial crisis has yet to end even as borrowing costs tumble, warning that US banks must raise 'large' amounts of money.
'There is still a very large unfunded capital requirement in the commercial banking system in the United States and that's got to be funded,' Mr Greenspan said in an interview yesterday in Washington. He also said that 'until the price of homes flattens out, we still have a very serious potential mortgage crisis'.
Mr Greenspan's comments suggest that he sees a bigger capital shortfall in the banking system than reflected in regulators' stress tests on the 19 biggest US lenders. Treasury Secretary Timothy Geithner told lawmakers on Wednesday that banks have issued more than US$56 billion in new stock or debt since the tests found 10 firms needed to raise about US$75 billion.
A lack of capital at banks may inhibit lending to consumers and businesses, tempering any economic recovery. The former Fed chief said that the continued slump in home prices is putting at risk millions of borrowers.
Home prices will only start to stabilise once the 'liquidation' rate of single-family homes has peaked, he said. 'I don't think we're there yet.'
More broadly, 'things have unquestionably improved' across the economy and financial markets, he said.
The London interbank offered rate, or Libor, for three-month US dollar loans fell three basis points on Wednesday to 0.75 per cent, the British Bankers' Association said, the 35th straight drop. The Libor-OIS spread, a gauge of banks' reluctance to lend, narrowed to 55 basis points, the least since February 2008. It was as high as 364 basis points in October.
That's an 'extraordinary improvement', said Mr Greenspan, who last year said that the credit crisis would be at an end once the Libor-OIS spread narrowed past 25 basis points. 'Virtually all of the various credit spreads, not only in the US but globally, have come down.'
Alan Blinder, a former Fed vice-chairman, also said that 'if there are no more reversals, history will judge that by May 2009, we will have passed the worst of the crisis.'
'My current guess would be in terms of GDP the second quarter will be a bottom and by the third quarter we're eking out a positive,' he said.
Mr Greenspan agreed, estimating that US gross domestic product will decline at an annual rate of one per cent in the second quarter.
Members of the Fed's Open Market Committee who met in Washington April 28-29 saw 'some signs pointing towards economic stabilisation', and some officials detected prospects for 'a trough' in the housing market's downturn, according to minutes of the meeting released on Wednesday in Washington.
Fed governors and district-bank presidents project that the economy will shrink 1.3-2 per cent this year and grow 2-3 per cent in 2010, according to median estimates released on Wednesday. -- Bloomberg
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