Prime state sites in Toa Payoh, Alexandra for sale

Prime state sites in Toa Payoh, Alexandra for sale

By Tan Hui Yee, Housing Correspondent

TWO prime state sites - an Alexandra Road residential plot and a commercial one in Toa Payoh - are now available for sale.
The Alexandra site is a 99-year leasehold plot near Tanglin View, Tanglin Regency and the upcoming Metropolitan just a stone’s throw away from the Redhill MRT station.

The site area is 0.86ha and has a maximum gross floor area of 451,428 sq ft. With these dimensions, a condominium 40 storeys high with 360 to 400 homes can be developed on the site.

The Urban Redevelopment Authority is marketing the site, which is on the Government’s reserve list.

It will go to tender once a developer commits to an acceptable bid.

Analysts agree that the site is a prime one but have given wide-ranging estimates on how much it will fetch.

Mr Nicholas Mak, director of consultancy and research at Knight Frank, expects a top bid of $375 to $400 per sq ft per plot ratio (psf ppr).

CB Richard Ellis executive director Li Hiaw Ho, however, tips it at $650 to $750 psf ppr, while Jones Lang LaSalle’s regional director and head of investments, Mr Lui Seng Fatt, forecasts a bullish $1,000 psf ppr or more. That values the plot at $451 million.

Mr Li likened the condo that could be built on the site to the one going up next door - the 99-year leasehold Metropolitan, which drew long queues when it was launched.

‘We expect the new project to be popular among prospective home buyers. Investors will be attracted to this project, too, as apartments in the locality are popular among tenants,’ he said.

Mr Li expects the condo units to each sell for an average price of $1,200 psf to $1,300 psf.

The Toa Payoh commercial land, meanwhile, is a 99-year leasehold site in Lorong 6 with an area of about 0.14ha.

It can take up to 45,105 sq ft of built-up space comprising retail, food and beverage, office and entertainment outlets.

The tender, which is being handled by the Housing Board, closes on Oct 16.

Mr Lui of Jones Lang LaSalle estimated that the site could yield about 30,000 sq ft of lettable space and would fetch at least $70 million in the tender.

The small site near the bustling HDB Hub can accommodate a three- to four-storey development suitable for retail or food outlets serving the mature housing estate and offices nearby, he said.

Source : Straits Times - 30 Aug 2007

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Good class bungalow sold for record $29m

Good class bungalow sold for record $29m

By Fiona Chan, Property Reporter

A BIT OF HISTORY : Glencaird - a restored, 105-year-old Victorian bungalow - was completed in 1999 as part of The Glencaird Residences. — PHOTO: WHEELOCK PROPERTIES

A GOOD class bungalow at 15 White House Park has become mainland Singapore’s most expensive, after it was sold for a record $1,308 per sq ft (psf) - eight years after the historic property was restored and put on sale.
The 22,000 sq ft conservation bungalow - called Glencaird - was sold to a Singaporean for $28.8 million, Wheelock Properties said in a statement yesterday.

Wheelock has been managing the property for Oroll, a wholly-owned unit of The Wharf (Holdings), which is also owned by Wheelock’s parent, Wheelock and Company.

Glencaird is one of 12 luxury bungalows that make up The Glencaird Residences and the only conservation bungalow in the series.

Oroll developed the bungalows.

The other 11 bungalows have already been sold at an average price of $838 psf.

Before it finally found a buyer, Glencaird - a restored, 105-year- old Victorian bungalow with five bedrooms - had sat empty since its completion in 1999.

‘We received several offers for Glencaird over the years,’ said Mr David Lawrence, Wheelock’s chief executive officer, in the statement.

‘However, we felt they were not reflective of the value, given that this is a very unique conservation piece in an excellent location.’

Prior to Glencaird’s sale, the record for mainland Singapore’s priciest bungalow was held by 63 Dalvey Road - sold in March for $16.45 million, or $1,091 psf.

On Sentosa, the highest price fetched by a bungalow plot is $1,473 psf.

Good class bungalows, Singapore’s most prestigious homes, are now enjoying astronomical asking prices amid the property boom.

Source : Straits Times - 30 Aug 2007

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Wing Tai full-year income soars to $382m

Wing Tai full-year income soars to $382m

By Tan Hui Yee, Housing Correspondent

PROPERTY and retail group Wing Tai Holdings almost tripled its full- year net profit to $382 million on sparkling home sales and revaluation gains.
Revenue grew 10 per cent to $982 million.

Wing Tai proposed a one-for-10 rights issue at a price of $2.05 a share - a discount of 41 per cent - as well as a special rights dividend of 25 cents per share, on top of the final dividend of three cents per share and a special dividend of five cents per share.

A revaluation of assets - mainly of its Winsland House property - alone lifted Wing Tai’s income by $189 million.

More income was also booked from homes sold in its developments - Draycott Eight, Kovan Melody, The Light@Cairnhill and Amaryllis Ville.

The company sold 1,311 homes worth $1.79 billion in Singapore in the 12 months ended June 30. It sold a further 313 units worth $219 million in Malaysia, Hong Kong and China.

Among its projects under development or completed, Wing Tai has only 30 unsold units in VisionCrest Residence in Oxley Rise and 70 left among the 140 units in Helios Residences in Cairnhill Circle.

The company has residential projects covering one million sq ft of floor area in the pipeline in Singapore, including Belle Vue Residences in Oxley Walk and L’viv in Newton Road, and a further 11.3 million sq ft in Malaysia and China.

It aims to launch most of these within the next 12 to 18 months.

Earnings per share grew from 17.84 cents last year to 53.12 cents, while net asset value per share grew 30 per cent to 2.07 cents.

Chairman Cheng Wai Keung did not appear too concerned yesterday when asked if the impending tightening of rules on collective sales would affect the company’s prospects.

He said the rules would lengthen the procedure for collective sales, increasing the risk that developers face.

Developers who cannot buy enough land will find it hard to expand, but Wing Tai is in a ‘reasonable position’, he said.

Mr Cheng added that the subprime crisis in the United States had temporarily affected the take- up rate of properties.

‘But it’s actually not a bad thing,’ he said, adding that the prices of high-end homes had risen very fast over the past few months and that the market needed some consolidation.

Mr Cheng believes that there is still room for property prices to grow if the US sub-prime crisis resolves itself within ‘a reasonable period of time’.

He said Singapore’s economy is performing well, and property prices here are lagging behind in cities with similar developments.

Source : Straits Times - 30 Aug 2007

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Ascott to buy Wilkie Road serviced apts for $79m

Ascott to buy Wilkie Road serviced apts for $79m
Property to take on Citadines brand, will open in 2009

By CHEN HUI FEN

THE Ascott Group has agreed to buy a 99-year leasehold serviced residence in town for $79.3 million, the company announced yesterday.

Strategic location: The property is part of lifestyle complex Wilkie Edge, a mixed development consisting of offices, retail, and F&B outlets currently being built
The property, located at Wilkie Road, is part of lifestyle complex Wilkie Edge, which is under construction. Wilkie Edge is a mixed development consisting of offices, retail, and food and beverage outlets.

The acquisition, to be funded from internal resources and external borrowings, will bring Ascott’s property portfolio in Singapore to 11, with a combined 1,042 units. It will be named Citadines Singapore Mount Sophia and open in the first half of 2009.

‘Citadines Singapore Mount Sophia is strategically located in the heart of Singapore’s upcoming arts, learning and entertainment hub in the Bras Basah-Bugis area,’ said Ascott president and CEO Jennie Chua. ‘It is in the city centre with excellent access to the central business district and the shopping and entertainment attractions of Orchard Road.’

The Ascott Group had earlier inked a memorandum of understanding to manage Wilkie Edge’s serviced residences for an initial 10-year term with an option to extend it for another 10 years.

‘Strong demand for extended-stay accommodation, the vibrant real estate market, and the property’s attractive location are reasons for Ascott to acquire leasehold interests in the serviced residence instead of only managing the property for fee income,’ added Ms Chua. ‘This will enable us to maximise shareholder returns.’

The new property will have 154 units and be Ascott’s first Citadines-branded serviced residence in Singapore. It will cater to the young and trendy, expatriates working in the creative services community as well as foreign students and academics from the nearby Singapore Management University, Nanyang Academy of Fine Arts and LaSalle College of The Arts.

The acquisition agreement is inked between Ascott’s indirect wholly owned subsidiary Ascott Scotts Pte Ltd, CapitaLand Selegie Pte Ltd and HSBC Institutional Trust Services, which is the trustee of CapitaCommercial Trust (CCT).

Just last month, CCT had announced that it is buying Wilkie Edge for $262 million. The pact comes with an option to lease the serviced apartments for a $79.3 million consideration. When this option is exercised, CCT’s purchase price for Wilkie Edge will be reduced to $182.7 million.

Source : Business Times - 30 Aug 2007

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Alexandra condo site up for tender

Alexandra condo site up for tender
HDB also invites bids for sale of commercial plot at Toa Payoh Lorong 6

By LYNETTE KHOO

THE Urban Redevelopment Authority yesterday asked for tenders for a 99-year leasehold residential plot at Alexandra Road, close to the Redhill MRT station and opposite the Metropolitan, after receiving a minimum bid price that triggered the launch from the Reserve List.

The Alexandra site may draw strong interest as it is located at the fringe of the Tanglin housing district.

The site occupies some 8,559 square metres with a gross plot ratio of 4.9, which can generate a maximum permissible gross floor area of 41,939 square metres.

It is zoned for development of condominium or serviced apartments. Property consultancies said the site could be developed into a 40-storey condominium.

Knight Frank managing director Tan Tiong Cheng said that he expects the project to have some 380 units averaging 1,200 square feet in size, given that its height and plot ratio are similar to those of the Metropolitan - a joint project between CapitaLand and Lippo Group.

Mr Tan reckons that bids for the site could have been in the region of $400 per square feet per plot ratio (psf ppr) or a lump sum of $180 million and expects the units to fetch average prices of $950-1,000 psf when they are put on the market, given that units in the nearby Metropolitan are fetching some $924 psf in resale prices in the third quarter.

CB Richard Ellis executive director Li Hiaw Ho estimates that the site could have drawn bids in a higher range of $650-750 psf ppr.

‘This will translate to an average selling price of between $1,200 psf and $1,300 psf, which could be attainable in the second half of 2008,’ he said, expecting strong demand to come from upgraders and investors who are looking to rent out the units given its proximity to the city and amenities.

In comparison, the Metropolitan site was purchased by the developers at $350 psf ppr in November 2005.

Based on the strong demand seen in Metropolitan where all 382 units were sold within six months, market watchers said that they expect the Alexandra site to draw strong interest from developers given that it is located at the fringe of the established Tanglin housing district which is within a five to 10 minute drive to Orchard Road, the Central Business District, Marina Bay, and the southern waterfront area.

Yesterday, the Housing & Development Board invited tenders for the sale of a commercial site at Toa Payoh Lorong 6, under the Confirmed List of the Government Land Sales Programme.

The 99-year leasehold site has a land area of 1,396.8 square metres with maximum allowable gross floor area of 4,190.4 square metres, and is located near the HDB Hub.

Its tender will close on Oct 16 and the project is expected to be completed by 66 months from the date of tender acceptance.

Mr Li from CBRE estimates that the site could yield about 34,000 square feet of net lettable area of commercial space and can be developed for a variety of uses including retail, F&B, office and entertainment facilities such as cinemas, bowling alleys and fitness centres.

‘It is likely that the successful bidder would devote 100 per cent of the maximum gross floor area for retail use, so as to tap on the large population catchment within the Toa Payoh housing estate as well as workers and visitors at HDB Hub,’ he added.

‘We expect bids to range between $600 and $700 psf ppr. Assuming that the mall is able to fetch a monthly rent of about $7-9 psf per month, this would provide the developer with a stabilised yield of about 5.5-6 per cent.’

Source : Business Times - 30 Aug 2007

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Wing Tai chief cautiously upbeat on property prices

Wing Tai chief cautiously upbeat on property prices

WING Tai Holdings’ head honchos yesterday said the US sub-prime woes have slowed property transactions across the whole market here but believe that property prices are still on a growth path ‘if the sub-prime (crisis) stabilises within a reasonable period’.

Mr Cheng: Sub-prime crisis has temporarily affected property market
Wing Tai chairman Cheng Wai Keung said: ‘Yes, temporarily, it has affected some of the take-up rates. But it is actually not a bad thing. The market needs a bit of consolidation. High-end home prices have gone up 100 per cent within the last six to nine months. It’s just not sustainable. But if sub-prime settles within a reasonable period, I believe there is still room to grow in the property market. We are not at the end of the property cycle.’

Mr Cheng and his brother, Edmund, the group’s deputy chairman, were fielding questions during the group’s full-year results briefing.

‘On the other hand, if sub-prime or the credit market continues to be in turmoil and it affects confidence in general, then of course it will be a completely different scenario,’ he added.

Mr Cheng also acknowledged that Wing Tai had seen an increase in buyers not exercising options but the rate is ‘not alarming’, at ‘just a handful’.

Buyers giving up options is a factor of two things: how aggressively a developer pushes for a sale and its selling price. ‘Our style is that given that the market is slow, there’s no point to push for a sale (and then have the buyer) back out later. Secondly, our pricing maximises our profit but we also leave something on the table (for the buyer) so at least he has a hope that the price is supportable,’ Mr Cheng said.

As for the proposed changes to legislation governing collective sales, Mr Cheng reckons they will slow down en bloc sales since such deals will now take longer to execute. ‘From a positive angle, it will slow down supply of land with redevelopment potential which means there will be less competition for companies that already have some landbank. But on the other hand, if you have less land to buy, then you cannot grow your business as fast as you would like to.

‘But given the recent run-up in property prices, people will be a lot more cautious in buying more development land. So in a nutshell, I think it’s good. At least it allows the market to consolidate and adjust itself, and also takes away some of the uncertainty under old en bloc rules.’

Source : Business Times - 30 Aug 2007

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Property firms record good H1 gains, outlook bright

Property firms record good H1 gains, outlook bright
Progressive booking of profits from projects sold will underpin results

By KALPANA RASHIWALA

ALL the big listed property groups have reported substantial gains in net earnings for the period ended June 30, 2007.

And the earnings outlook for the second half is positive, as developers continue to progressively recognise profits from Singapore residential projects already sold based on percentage of completion, enjoy higher rents from their Singapore office portfolios and book fair value gains on investment properties, says DBS Vickers Securities analyst Wallace Chu.

In fact, in the latest results reason, bottom lines were substantially boosted in many instances by revaluation gains on investment properties - particularly office properties that have gone up sharply in price - arising from the implementation this year of Financial Reporting Standard 40 (FRS 40).

This standard requires that fair-value gains and losses on investment properties be recorded in the profit-and-loss account. Some companies chose to do valuations and book gains on investment properties for their financial periods ended June 30 this year, such as CapitaLand and UOL Group, while others, such as Keppel Land and Singapore Land, have said they will do so at the end of the year.

The biggest revaluation gains seen this reporting season came from CapitaLand. It booked fair value gains of $645.4 million for Q2 ended June 30, 2007 and $647.4 million in H1 2007. But that’s not surprising since the group, including its listed unit CapitaCommercial Trust, has one of the biggest office portfolios in Singapore.

In the latest results reason, bottom lines were substantially boosted in many instances by revaluation gains on investment properties

But even without such gains, CapitaLand’s net earnings were up substantially year-on-year for Q2 and H1, due to the strength of its overall operations, especially residential development sales in Singapore and China, and higher fee-based income from commercial and retail operations.

City Developments, too, posted the best result in its history - with strong showings from residential property development, rental properties and hotel operations under listed Millennium & Copthorne Hotels and CDL Hospitality Trusts. Q2 net earnings rose 333 per cent year on year to $194.4 million, and CityDev’s H1 bottom line improved 272 per cent to $320.5 million.

Management emphasised that the sterling results were achieved without booking any revaluation gains on the group’s substantial investment property portfolio, including offices.

CityDev said it is continuing its conservative accounting policy of stating investment properties at cost less accumulated depreciation and impairment losses, an option allowed under FRS 40.

KepLand, which has said it will revalue its investment properties at year-end, saw its Q2 and H1 net earnings go up 42 per cent and 56 per cent respectively on the back of strong residential sales in Singapore and overseas and the robust Singapore office market.

Analysts expect the group to book gains of $221.6 million in the second half of this year from the divestment of its one-third stake in One Raffles Quay to K-Reit Asia - if the transaction is approved by shareholders of both companies.

As well, KepLand’s second-half earnings are expected to be boosted by fair-value gains on revaluation of its investment properties at year-end under FRS 40, given the group is a major office landlord.

Most Singapore listed developers, which have enjoyed strong Singapore residential sales in the recent past, can look forward to continue progressively booking profits from these projects in accordance with the percentage of completion. CityDev will start booking from its Solitaire condo from Q4 2007 onwards, while profits from One Shenton will be recognised in stages starting next year.

The group sold 1,315 homes valued around $2.4 billion in H1 2007 - about three times the value in the same period last year. The group’s share of pre-tax profit from residential sales yet to be booked is about $1.4 billion. This is expected to be recognised progressively over the next few years.

So far, the sub-prime woes and ensuing credit crunch in the US do not appear to have cooled developers’ residential sales in Singapore or prices - as is evident from the strong take-up rate for Frasers Centrepoint’s Soleil @ Sinaran launch, despite the benchmark price for the location.

But if and when they do, that could cast a pall on developers’ residential profits going forward. ‘Sentiment and strength of the equity market will be more important share price drivers for listed property groups,’ an analyst with a foreign broking house says.

Source : Business Times - 30 Aug 2007

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