New URA master plan to provide more housing options

New URA master plan to provide more housing options
By Wong Siew Ying, Channel NewsAsia | Posted: 29 June 2007 2215 hrs
 

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New URA master plan to provide more housing options
 

SINGAPORE : More residential sites will be released in Marina South.

Besides providing more housing options in the downtown area, there will also be developments outside the city.

This is all part of the Urban Redevelopment Authority’s upcoming Master Plan Review 2008.

The plan will be put up for public feedback by the middle of next year and is expected to change the way Singaporeans live.

There will be city living in the midst of lush greenery, complete with breath-taking views when the Marina South Gardens by the Bay is ready.

Mah Bow Tan, National Development Minister, said: “We will be developing the area around the Gardens for very high-end, high rise residential use in the city area.

“This would be, I believe, very attractive, because it will not just have views of the Gardens, but it will also have views of the water, the Marina channel and across to the Straits. So that’s something we hope to start within the next five years.”

Analysts say the new sites will attract international players and the units are expected to sell very well.

But they will not come cheap. These areas will command premium prices, just like properties in Manhattan in New York or near Hyde Park in London.

Still, the move to set aside more land for residential use is welcomed as it could take the heat off the property market.

With the government releasing 41 sites in its recent land sales programme, analysts project that there will be potentially some 42,000 new residential units by 2010.

Donald Han, Managing Director, Cushman & Wakefield, said: “I think the government is focusing on the supply. Don’t rush out there (thinking that) there is going to be a supply crunch. Don’t worry, there is a lot of supply, not only in terms of the central area.

“There’s a lot of new areas that the government is developing and creating new residential enclave at Kallang Basin area.”

He said the government is releasing more land outside the central area, which is meant to cater to the mass market.

There are also plans to further develop Seng Kang and Punggol to offer more facilities and activities for residents.

But not everything will change.

The Housing Development Board says it will retain certain icons in old HDB estates, to preserve the memories of Singaporeans. - CNA/ch

Auction volumes grow on en bloc demand

Auction volumes grow on en bloc demand
Colliers says the same trend can be expected for the second half of ‘07
By UMA SHANKARI

THE auction market here is being fuelled by the en bloc fever.
Colliers International observed that the Singapore auction market has witnessed a burgeoning increase in the number of property owners choosing the auction route to sell properties with en bloc potential - a trend in tandem with the sizzling collective sale market. ‘Competitive bidding for properties with en bloc potential was seen among keen buyers, with final transacted price being 20-30 per cent above the opening price,’ said the property firm.

‘It is really an interesting phenomenon - we see a striking difference in the number of bidders present in the auction hall on the days when there are properties with en bloc potential being put up for sale, compared with those days when there are none,’ said Grace Ng, Colliers’ auctioneer. ‘The number of attendees jumps from the usual 100 to as many as 200 people, jam-packing the auction hall.’

Attendees comprise punters, ’specu-investors’, speculators, investors and home sellers/buyers alike, Ms Ng said.

Some examples of properties with en-bloc potential that were successfully sold at auctions include a unit in Watten Estate Condominium which was sold for $2.4 million, a residential unit in Lagoon View that went for $910,000 and a shop unit in Katong Shopping Centre which sold for $280,000.
 
The same trend can be expected for the second half of the year, Colliers said. ‘With the en bloc fever still running high, we can expect to see positive response for condominium and apartment units in the suburban areas from HDB upgraders and collective sale owners who are priced out of the prime areas, for the second half of this year,’ Ms Ng said. All this activity is adding to the robustness of the auction market. Colliers’ figures show that the total sale value of properties (owners’ sale and mortgagee sale) sold at auctions climbed 25 per cent to $263 million in the first half of 2007, up from $210.3 million in the second half of 2006.

Similarly, Knight Frank, which yesterday auctioned off a conservation bungalow at 781 Mountbatten Road for $13.95 million, said that the number and value of properties sold at auctions scaled new heights in the first half.

The firm estimates that with 132 properties sold in the first six months of the year, the number of properties sold rose by more than 36 per cent versus the second half of 2006.

It put total sales value for the first half of 2007 at about $286 million - also about 36 per cent higher than sales in the year ago period.

Going forward, the auction market will remain robust in the second half given the strong performance in the economy and property market as well as assurance from the government that it will not clamp down on the current buzzing property market, predicted Mary Sai, Knight Frank’s auctioneer. She expects a greater variety of properties will be offered at auctions in the coming months.
Source: The Business Times, 30 June 2007

Cashback property scam: Veteran lawyer found guilty

Cashback property scam: Veteran lawyer found guilty 
By Chong Chee Kin 
WENT ALONG: Singh had continued to act for his client even though he knew about the cashback deal. — LAU FOOK KONG
 
A VETERAN lawyer has been convicted for his role in a ‘cashback’ property deal, with the judge admonishing him for carrying on with what was clearly a scam.
Bachoo Mohan Singh, a lawyer for more than 30 years, was convicted in a district court yesterday of helping a Housing Board flat owner make a false declaration in April 2004.

Although the agreed selling price of Mr Koh Sia Kang’s five- room Redhill flat was $390,000, it was inflated by $100,000 as part of the so-called cashback scam.

Such a scam involves a pro- perty seller declaring a higher price in order to secure a higher loan for the buyer.

The cash difference between the actual and declared price is either kept by the buyer or split with the seller. These scams were rife before the relevant law was tightened two years ago.

Singh, 59, got into trouble as a result of the sale falling through. He acted for Mr Koh, 53, a taxi driver, who sued the buyers.

Mr Koh went to court, claiming he was cheated of money in the transaction. He also sued the pro- perty agent who had arranged the aborted sale to a couple.

Property agent Kereen Teo Pei Pei, 28, was the first person to be convicted. She was fined $8,000 last year for trying to cheat DBS Bank by inflating the selling price of Mr Koh’s flat by $100,000. Her manager was similarly fined.

Mr Koh has yet to be charged with any offence.

In arriving at his decision, District Judge Bala Reddy agreed with the prosecution that Singh knew all along about the cashback deal.

The judge added that when Mr Koh went on to make the false $490,000 claim against the couple, Singh continued to act for him to sue them based on the false claim. Singh had thus abused the judicial process, he added.

He showed no emotion when the judge announced his decision.

Soon after, he sought permission through his lawyer to return to Perth in Australia. His immediate family is in Perth.

His lawyer, Mr Ang Cheng Hock, said Singh was not a flight risk as his sister and mother are still living here.

However, Deputy Public Prosecutor Vincent Leow objected, arguing that because Singh’s family is in Perth, he was a potential flight risk.

The judge will decide on Tuesday if Singh may leave the country. The mitigation hearing is set for July 27.

Singh is now out on $20,000 bail. He could be jailed up to two years and fined.

Source: The Straits Times, 30 June 2007

In S’pore: 11,660 new millionaires

In S’pore: 11,660 new millionaires 
By Alvin Foo 
SINGAPORE’S population of United States dollar millionaires surged by a staggering 21.2 per cent last year to 66,660 - the fastest growth rate of any nation in the world.
The dramatic boost in the membership of this once highly exclusive club came amid a booming stock market, strong economy and the start of the property rebound last year.

This is the second time in three years that the Republic has posted the highest growth globally in the annual World Wealth Report compiled by Merrill Lynch and research firm Capgemini.

About 11,660 newly minted millionaires joined the ranks here last year, the survey of the well-to-do in 71 countries has found. A million greenbacks currently converts to about S$1.54 million.

‘Singapore is a little boat of 4.5 million people that floats very nicely when the global economy is doing well,’ said Merrill Lynch’s chief Asia strategist and senior director Mark Matthews yesterday. ‘The country’s growth has accelerated - not only economic growth, but also savings.’

The 66,660 millionaires account for about 1.5 per cent of the population. This means three out of every 200 people here are millionaires.

To qualify, these well-heeled types must have a million bucks in assets not counting that widely used barometer of wealth - the home. Other investments in real estate are included.

Singapore was followed closely by India with 20.5 per cent growth, Indonesia (16 per cent) and Russia (15.5 per cent). Asia was home to some of the fastest-growing millionaire markets, occupying five out of the top 10 spots - a repeat of 2005.

The number of millionaires in the region pushed their combined wealth up 10.5 per cent to US$8.4 trillion. This was largely driven by strong expansion of the China and India economies, robust foreign direct investments and growing confidence in Asia.

In 2005, Singapore ranked eighth, having posted 13.4 per cent growth. It also took top spot in 2004 with a 22.4 per cent rise.

Last year, the main driver of this growth came from the increase in the total value of stock market shares, up 49.3 per cent after an 18.3 per cent rise in 2005. Other factors included low inflation, low taxes and a rise in savings.

The report also showed that wealthy investors worldwide had shifted more money into property, lured by high returns from commercial real estate investments. This was most evident in the Asia-Pacific, with 29 per cent of assets of the wealthy held in property, up from 16 per cent a year earlier.

Mr Matthews said the biggest threat to this boom in wealth would be an unexpected slowdown in the Chinese economy.

Here, the growth in the ranks of millionaires is expected to continue this year, as property prices surge and more expatriates make Singapore home, industry experts say.

Said CIMB-GK economist Song Seng Wun: ‘The en bloc sales have made some people instant millionaires.’

Added Mr Ku Swee Yong, director of marketing and business deve- lopment at Savills Singapore: ‘This growth is not surprising, given the rise in the equity market.

‘I expect more middle and senior management executives to join the millionaire ranks this year, as the equity market continues to surge.

‘The expansion of the private wealth business here is expected to continue, and we’ll see more wealthy people relocating here as a result.’
 

Source: The Straits Times, 29 June 2007

Farrer Court en bloc sale reaps $1.34 billion

Farrer Court en bloc sale reaps $1.34 billion 
Farrer Court’s (above) sale price is above the owners’ reserve price of $1.2 billion but below their asking price of $1.5 billion. — ST PHOTO: ARTHUR LEE CH
 
PROPERTY giant CapitaLand paid $1.34 billion for the sprawling Farrer Court estate on Thursday - the biggest lump sum ever shelled out for a residential site here.
Owners at the 618-unit complex will get about $2.15 million each, depending on the size of their flats, which range from 1,453 to 1,615 square feet.

The bumper price for the ex-HUDC block beat the reserve of $1.2 billion but fell short of the owners’ $1.5 billion asking price.

It also signals how high and how fast prices have risen this year. The owners’ had demanded $900 million earlier this year but revised that to $1.5 billion when the estate was put up for sale in May.

The deal broker Credo Real Estate said the sale is also the largest in terms of land area, number of units and buildable gross floor area.

Farrer Court, which is 30 years into a 99-year lease, sits on 838,488 sq ft near the junction of Farrer and Holland Roads and the upcoming Farrer MRT Station.

CapitaLand plans to build a 36-storey condominium with about 1,500 flats on the site, which will be ready for launch in early 2009.

Existing Farrer Court owners will have first right of refusal to buy units at the new development.

Capitaland president and chief executive Liew Mun Leong said the deal would further jack up its residential landbank, allowing it to benefit from Singapore’s ‘growth story’.

The site also gives the firm the chance to work with world-renowned architects to create a unique landmark project, said Mr Liew.

The Farrer Court tender closed on Wednesday and attracted two bids, both above the reserve.
Source: The Straits Times, 28 June 2007

Some 1,700 Clementi homes to be redeveloped en bloc

Some 1,700 Clementi homes to be redeveloped en bloc 
CLOSE to 1,700 households in Clementi have been selected for relocation in one of the Housing Board’s largest redevelopment exercises.
Under the Selective En-bloc Redevelopment Scheme (Sers), households in the 30-year-old precinct at Clementi Avenue 1 will be relocated to a new site nearby.

The current site comprises eight blocks of flats, two rental blocks and some shops.

Apart from a Sers exercise in March last year which involved about 1,800 units, earlier exercises typically involved relocation of about 600 to 1,000 units.

The new estate is due for completion by the end of 2011.

It will feature a new park and is situated near the Clementi MRT station, bus interchange and town centre.
Source: The Straits Times, 28 June 2007

Apartment sale smashes record at $5,100 psf

Apartment sale smashes record at $5,100 psf 
SINGAPORE’S most expensive condominium project - The Marq on Paterson Hill - has been fully sold in its first phase, with one unit fetching a record $5,100 per sq ft (psf).
This smashes the week-old record of $4,653.50 psf set by an apartment from St Regis Residences.

The new record set by The Marq also breaches. for the first time, the $5,000 mark for the highest psf unit price.

The Marq’s initial phase, which consists 21 units - or a third of all available apartments - achieved an average selling price of $4,137 psf, said developer SC Global in a statement.

The most expensive condominium sale on record is the uber penthouse at Marina Bay Residences, which was said to have fetched about $28.6 million, or $2,600 psf.

On a psf basis, only three projects have breached the $4,000 level: Orchard Residences in Orchard Turn, Parkview Eclat in Grange Road and St Regis Residences in Cuscaden Road.

Previews to The Marq’s first phase was offered to invited buyers only, said SC Global.

Of the 21 units sold, eight apartments were within The Signature Tower, housing a 15-metre private lap pool in every unit.

The rest of the 21 units were from Premier Tower.

The record-smashing $5,100 psf sale came from an apartment in The Signature Tower.

Prices for the entire development ranged from approximately $11 million to $31 million.

The three penthouses on the top two floors of the 24-storey-high building and apartments on the higher floors were not released in the first phase, SC Global said.

The Signature Tower will be home to 21 five-bedroom apartments averaging 6,195 sq ft.

Beside it will stand the Premier Tower with 42 four-bedroom apartments averaging 3,000 sq ft.

SC Global Developments said it has no confirmed date for the release of the second phase of units.
Source: The Straits Times, 28 June 2007

Land-use intensity: No sudden changes

Land-use intensity: No sudden changes 
THE Government has no plans for a major exercise to raise plot ratios anytime soon.
In the lead-up to next year’s announcement of the Master Plan for Singapore’s physical development, National Development Minister Mah Bow Tan quashed expectations in some quarters that plot ratios are headed upwards.

This was to make room for a future population of 6.5 million.

The plot ratio of a site decides how much total floor area it can support.

In other words, whether its buildings can be high-rise or low-rise.

It is also known as a site’s development intensity.

In an interview this week, Mr Mah said there was no need for a massive across-the- board change in development intensity.

This is because the land available today is more than enough to meet needs over the next 10 to 15 years.

That is the time-frame for the upcoming Master Plan 2008, to be unveiled around the middle of next year.

The statutory document regulates what land parcels across the island can be used for and their density.

It is reviewed every five years.
 
Source: The Straits Times, 28 June 2007

Singapore: Who wants to be a millionaire?

Singapore: Who wants to be a millionaire? 
SINGAPORE’S population of US dollar millionaires surged by a staggering 21.2 per cent last year to 66,660 - the fastest growth rate of any nation in the world. The dramatic boost in the membership of this once highly exclusive club came amid a booming stock market, strong economy and the start of the property rebound last year.
This is the second time in three years that the Republic has posted the highest growth globally in the annual World Wealth Report, compiled by Merrill Lynch and research firm Capgemini.

About 11,660 newly minted millionaires joined the ranks here last year, the survey of the well-to-do in 71 countries has found.

A million greenbacks currently converts to about S$1.54 million. The 66,660 millionaires account for about 1.5 per cent of the population ? and that means three out of every 200 people here are millionaires.

The number of millionaires in the world increased by 8.3 per cent in 2006, with about 9.5 million individuals now estimated to have more than a million dollars in financial assets.

The financial assets owned by the group totalled US$37.2 trillion (S$57.3 trillion), an increase of 11.4 per cent from 2005.

Singapore, India, Indonesia and Russia produced the greatest number of new millionaires.

The survey said strong global economic growth and gains on the stock market explained the expansion of the exclusive club of ‘High Net Worth Individuals’ (HNWIs).

‘Real GDP and market capitalisation growth rates, two primary drivers of wealth generation, accelerated throughout 2006, which helped to increase the total number of HNWIs around the world as well as the amount of wealth they control,’ the report said.

The number of Ultra-HNWIs - individuals with financial assets exceeding US$30 million - increased by 11.3 per cent in 2006.

The global population of this extremely affluent group is now estimated at 94,970 people.

The financial assets of Ultra-HNWIs increased by 16.8 per cent compared with 2005, illustrating a trend whereby wealth is increasingly concentrated in the hands of the already wealthy, the report said.

‘Global wealth continued to consolidate in 2006, a trend we have reported for the past 11 years,’ the report said.

Capgemini and Merrill Lynch define a millionaire as someone with more than one million dollars in financial assets such as cash, equities, bonds or funds.

They do not include the value of an individual’s primary residence or private collections of objects such as art, antiques or coins.

Investments of passion
This year’s report included a section looking at the money spent by millionaires on so-called ‘investments of passion,’ meaning investments in luxury goods.

More than a quarter of such investments were in private jets, sports teams, yachts or race horses, with the remainder in art, fine wine and jewelry.

‘On average, art investments comprised 20 per cent of HNWIs’ investments of passion - outlays that were dwarfed by the huge prices paid for private aircraft and yachts,’ the report said.

The survey also highlighted a trend among millionaire investors to put money into the real estate market in 2006, particularly commercial real estate, to take advantage of surging rental and property prices.

The collective fortune of the HNWI population is forecast to hit US$51.6 trillion in 2011, compared with US$37.2 trillion last year.
Source: The Straits Times, 28 June 2007

No plans to ease curbs on foreign buying of landed homes: Govt

No plans to ease curbs on foreign buying of landed homes: Govt 
IN RESPONSE to a recent report by Goldman Sachs suggesting a review of the Residential Property Act to relax restrictions on foreigners buying landed property, the Ministry of Law said that there were ‘no plans to liberalise the existing system’.
‘In land scarce Singapore, landed properties have to be treated as a special category where purchases by foreigners are subject to special approval,’ said the Ministry of Law in a statement on Wednesday.

Goldman Sachs’ report had suggested that Singapore’s increasing popularity with foreigners could signal that it is time to relax restrictions on overseas ownership of landed properties.

The giant investment bank said in a research note that if curbs are relaxed across the board, it could spur further foreign buying of private properties.

It could also boost the residential property market by having ‘positive spillover from rising landed property prices to condominiums and apartments’.

Under the Residential Property Act, foreigners and permanent residents are forbidden from buying landed property without Government approval.

And a foreigner who does win approval can own only one landed property at a time and they must occupy the home, not rent it out.

If the rules are relaxed, developers with land banks for landed projects would benefit, the bank said.

Responding to media queries on the Government’s position on Goldman Sach’s proposal, a Ministry of Law spokesman said on Wednesday that ‘there are no plans to liberalise the existing system’.
 
Source: The Straits Times, 27 June 2007

$128m en-bloc sale windfall for Hakka clan

$128m en-bloc sale windfall for Hakka clan

By Lee Chee Keng WHILE the recent en-bloc property boom is making a million or two each for home owners, one of Singapore’s major Hakka clan associations has really hit the jackpot.The Char Yong (Dabu) Association will pocket a cool $128 million from the sale of the 93,300 sq ft Char Yong Gardens condominium in the Cairnhill area.

The association - which owned 36 of the 106 units in the condominium sold to CapitaLand recently for $420 million - is now looking at how to best use the windfall.

Discussions have started on enriching clan activities, developing its youth wing, providing better care for old or needy members, as well as expanding its charity work.

The need for these talks nearly did not arise as some clan members had opposed the sale, despite the support of the 41-strong management council, said association president Lang Chin Ngau, 59.

If the dissenters had prevailed, the sale would have failed as the clan’s 36 units gave it more than the 20 per cent of votes needed to scrap the deal.

The opponents had noted that the flats sat on ancestral land and wanted it to stay that way. They also said a tree planted on the grounds in 1963 by Mr Lee Kuan Yew, now the Minister Mentor, should not be disturbed.

The issue was put to a vote in a special general meeting on Aug 27 last year. Of the 209 members who showed up, 168 voted for the sale and 23 opposed it. The other votes were declared void.

The Char Yong (Dabu) Association, founded in 1857, now has more than 2,000 members.

It bought the land in 1947 to house its office and the Khee Fatt School founded in 1906. But pupil numbers kept dropping and the school was handed over to the Ministry of Education in 1985.

The same year, the clan struck a deal with DBS Land and Char Yong Gardens was built in 1991. The clan’s 36 units were managed by The Ascott Group as service apartments, earning $4,000 a month each in 1995 - but rents slid to $1,500 in 2005.

Talks to sell the property began the next year.

Although the deal has now been sealed, the clan’s link to the land will not be completely lost

Said Mr Lang: ‘CapitaLand will give us priority to buy a few units in the development before it is open to the public.’

The tree planted by MM Lee will stay at the site or be relocated.

The focus now is on how to best use the $128 million, which the clan will get in 11/2 years’ time.

Its constitution dictates that one-third will go to the association for its operations, activities and charity work. The rest will go to the Char Yong (Dabu) Foundation for educational and cultural work.

Every year, the association hands out $250,000 in scholarships to pupils from Qifa Primary and Da Qiao Primary schools, and to members’ children. It also donates to charitable and cultural groups.

It recently gave $300,000 to the Confucius Institute Fund, making it the largest donor to the fund set up this year to establish a World Chinese Literature Award, and to fund the institute’s research projects and other events.

Mr Lang said plans to use and invest the money from the sale will be discussed thoroughly at management council and general meetings.

The association has three other properties which it rents out.

Source: The Straits Times, 27 June 2007

HK firm wins tax battle over sale of upscale Leedon Rd homes

HK firm wins tax battle over sale of upscale Leedon Rd homes

By CONRAD RAJ

(SINGAPORE) A Hong Kong company has won a case against the Comptroller of Income Tax who slapped it with a $3.3 million-plus tax bill after it sold 17 units in upscale Leedon Road.
The tax department said the sale by Madison Lighters & Watches Company, a wholly-owned subsidiary of Hong Kong property developer Far East Consortium International, was in the ordinary course of business and the profit was taxable.

But the company’s lawyer Edwin Lee, of Rajah & Tann, argued that the property was an investment and the gains were therefore capital in nature and non-taxable.

Madison appealed against the Inland Revenue Authority of Singapore’s (IRAS) ruling.

And the Income Tax Board of Review, chaired by former High Court Judge Goh Joon Seng, ruled in favour of the company.

Madison bought 17 of the 18 units at Leedon Court in September 1987 for a total of $10.77 million. Being a foreign entity, it could not buy the whole block, so the remaining unit was bought by a related company, Hepworth Investment.

All the units were sold en bloc to unrelated Glory Development on Nov 25, 1993 for $24 million, with Madison getting $22.67 million. IRAS served the company with a demand for $3.34 million tax in June 1995, being 27 per cent of its profit of $12.38 million for Year of Assessment 1995.

Madison’s auditors lodged an objection on July 4, 1995 saying the gains were capital in nature and therefore not taxable.

They also said that loan interest incurred in buying the property ought to have been tax deductible against rental income, and that with the exception of one item, IRAS had failed to convert the figures from Hong Kong dollars into Singapore dollars.

The review board, in finding in favour of Madison, notes that the company had consistently classified the property as an investment and ‘fixed assets’.

It also notes that the property was held for six years and was sold collectively in one lot to an unrelated buyer who made an unsolicited offer, that Madison was in a position to hold the property for the long-term and that it ‘was actually in a tax-paying position for most of the years during which it held the property’.

The board said: ‘We therefore find that it was the intention of the appellant (Madison) to acquire the property for long-term investment and for resale at a profit.’

It allowed the expenses to be deductible with the tax to be discharged on account of the bank loan interest agreed at $87,635.52.

The board also said IRAS wrongly used Hong Kong dollars in its computation of chargeable income and the tax to be returned as a result of this error was agreed at $265,009.59.

Source: The Business Times, 27 June 2007

Movie director to tap S’pore market for US$500m

Movie director to tap S’pore market for US$500m
Shekhar Kapur will outline his plans in the next 3-6 months

(SINGAPORE) Shekhar Kapur, the director of Oscar-nominated film Elizabeth, is in talks to raise a US$500 million fund in Singapore to invest in the entertainment industry including movies and music across Asia.
Investors in Singapore are more willing to bet on businesses that may take a longer period of time to make a profit, unlike hedge funds or private equity firms, the Indian director said in an interview here.

‘Singapore’s capital markets have the kind of maturity to sit for long-term investments,’ he said. ‘Most of the hedge funds and private equity are like foam, little bubbles that form, take the money and off they go.’

Mr Kapur aims to capitalise on rapid economic growth in Asia, home to 3.8 billion people, or 60 per cent of the global population.

In India, the second fastest growing major economy after China, he directed Bandit Queen in 1994, a controversial film that gained international attention when it was banned by the Indian government.

Startup companies with innovative ideas and technology need time to nurture their businesses, said Andrew Craissati, a former investment banker and chief executive officer of US-based Transpac Media Ltd, which advises companies on listing on the London Stock Exchange’s alternative investment market.

‘That’s what Google did at the beginning,’ Mr Craissati said. ‘They said, ‘if you are a short-term investor, don’t buy our stocks because we are not interested’.’

Mr Kapur plans to hire professionals to manage the fund, while he focuses on wooing global entertainment partners from the West. He expects to unveil his plan in the next three to six months.

In November 2005, Mr Kapur joined UK billionaire Richard Branson, who owns Virgin Group Ltd, author Deepak Chopra and US-based Gotham Entertainment to form Virgin Comics, a media company that creates original stories and epic myths for a global audience.

He was in Singapore as part of an international advisory panel to the Media Development Authority, which is mapping out the country’s master plan for the media industry.

‘The media industry in Asia is going through an explosive phase and what we are seeing is not even the tip of an iceberg,’ Mr Kapur said on June 21.

‘The next YouTube and Google, the future technology, will originate from Asia.’

The global entertainment and media industry will expand at a 6.4 per cent annual rate to total US$2 trillion in 2011, PricewaterhouseCoopers said in a report last week.

Asia-Pacific will be the fastest-growing region, expanding 13.5 per cent a year, it said.

The plan also reflects increasing difficulty for film-makers in raising large sums of money from movie studios.

‘Every director now realises that they can’t rely on studio funding because studios are not interested in making films - they’re interested in distributing films,’ Mr Kapur said.

‘I and other directors would love to have funding so we can invest in films and explore unpredictable opportunities such as mobile space.’ - Bloomberg

Source: The Business Times, 27 June 2007

Leng Beng sees rising hotel rates

Leng Beng sees rising hotel rates

SINGAPORE’S hotel room rates may rise by ‘quite a bit’ as the island-state draws more tourists, said Kwek Leng Beng, chairman of City Developments Ltd, one of the country’s biggest hotel operators.

The city will be short of about 3,000 hotel rooms, Mr Kwek said, referring to the government’s sale of land sites for new hospitality developments. Mr Kwek, who spoke at a briefing in yesterday, wasn’t more specific on the time frame for the hotel room shortage.

Singapore, prospective host to Formula One’s first night Grand Prix and two casino-resorts that will help draw more convention delegates, may face a shortage of hotel rooms as the government expects the number of visitors to double to 17 million by 2015.

‘The meetings, incentives, conventions and exhibitions business is going forward, and with Formula One, rates will go up quite a bit,’ Mr Kwek said.

Hotel operators may charge tourists an average $600 daily from $170 now as occupancy increases in the next eight years, according to Merrill Lynch & Co. About 3,300 rooms are expected to be added annually, falling short of the average 4,100 units needed, a team led by Merrill Lynch analyst Melinda Baxter wrote in a June 18 report.

Singapore is adding new attractions, including a Universal Studios theme park and the world’s largest Ferris wheel, to tap an increase in global travel. The government expects to triple tourism spending to $30 billion by 2015.

City Developments is the parent company of Millennium & Copthorne Hotels plc, the UK operator of the Biltmore in Los Angeles. - Bloomberg

Source: The Business Times, 27 June 2007

Singapore Watten Estate Condo up for en bloc sale

Singapore Watten Estate Condo up for en bloc sale

WATTEN Estate Condominium at Shelford Road off Dunearn Rd has been put up for collective sale through an expression of interest exercise.

So far, owners with more than 70 per cent of share values, but short of the minimum 80 per cent required, have signed the collective sale agreement, at a price believed to be around $400 million. This works out to $1,297 per square foot of potential gross floor area inclusive of development charges.

The 220,241 sq ft freehold site is zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area) and a five-storey maximum height. No development charge is payable, according to DTZ Debenham Tie Leung, which is marketing Watten Estate Condo. The site can be redeveloped into a new condo with about 200 units averaging 1,500 sq ft, market watchers reckon.

Currently, Watten Estate Condo has a total of 104 units comprising a block of apartments and four blocks of townhouses. Property tycoon Ng Teng Fong, who controls Far East Organization, is believed to own two units in the development. The expression of interest for Watten Estate Condo closes on July 20.

The property is near Raffles Girls’ Primary School, Nanyang Primary School, Hwa Chong Institution and National Junior College. The Botanic Gardens is a short drive away.

Lippo Realty recently paid $1,280 psf per plot ratio for Aura Park at Holland Road, which is also near Botanic Gardens.

Source: The Business Times, 27 June 2007