Singapore DTZ 3Q 2007 Property Report

Singapore DTZ 3Q 2007 Property Report

Investors, owners, occupiers and developers | A quarterly report on the Singapore property market

Business space (office)

Growing demand for office space sent rents rising

In 3Q2007, the office market continued to face acute shortage of office space especially in the CBD with OUB Building undergoing additions and alteration works, and the demolition of two existing office blocks: Asia Chambers Building and Ocean Building. The completion of an 81,460 sf new office block at 135 Cecil Street during the quarter was the only new supply of office space in the CBD for 2007. Despite an inflow of new office supply, the office market still suffered a net loss of 455,390 sf of stock in 3Q2007.

Being one of the premier asset management centres in Asia Pacific, Singapore has attracted many asset management companies to expand their operations here to include middle to back office settlement functions and trading activities. According to a survey by the Bank for International Settlements (BIS), Singapore is the fifth-largest centre for foreign exchange trading. Several financial institutions have chosen Singapore as their Asian foreign exchange trading hub. Many global banks and financial institutions are bullish about establishing their physical presence or expanding their regional operations in Singapore. This has spurred demand for office space, especially quality office buildings in the CBD.

Islandwide occupancy rate for office space rose by 0.4%-points QOQ to 97.6%. In Raffles Place, occupancy rates rose by 1.1%-points QOQ with One Marina Boulevard and One Philip Street achieving 100% occupancies in 3Q2007. Driven by higher asking rents and lack of office space in the CBD, many companies sought office space in the CBD fringe and decentralized areas like Alexandra and Novena. Consequently, occupancy in Alexandra area rose by 3.5%-points and reached full occupancy during the quarter while Novena area achieved 98.5% occupancy.

Strong demand for office space has sent rents soaring. Office rents across Singapore have all breached historic highs. While office buildings in Raffles Place still command the highest monthly gross rents at an average $14.50 psf per month after rising 11% QOQ, the average monthly gross rents in Orchard Road has escalated considerably with the highest 25% QOQ increase to $10.60 psf per month. The average monthly gross rents for Alexandra area have also risen by 13% QOQ to $6.80 psf per month. The rise in rents in Orchard Road and Alexandra area reflects a shift in demand for office space outside the CBD.

To ease the office supply crunch, the Government introduced several interim initiatives to inject short-term lease office space into the market. URA launched two transitional office sites (1.45 ha) at Scotts Road and Tampines Concourse/Tampines Avenue 5 with a 15-year lease each. Strong demand for office space was seen in the launch of the first transitional office site (0.25 ha) in August which attracted 11 bidders. Additionally, SLA released seven State Properties to commercial firms solely for office use, bringing the total supply of short-term lease office space to an estimate 769,067 sf in 3Q2007. Besides introducing short-term measures, the Government also ensured that there is sufficient office supply to meet long-term demand. Through the Government Land Sales (GLS) program, URA has already awarded two sites at Anson Road/Enggor Street and Beach Road. The sites are expected to generate an estimate 1.03 mil sf GFA of office space. In the pipeline, another 5.7 million sf of commercial space from various Government sources will also be available in 2H2007.

With the influx of global investors and an expected strong performance in the financial sector in 2H2007, quality office buildings in the CBD remains much sought-after. The rapid rise of office rents is likely to impel prospective tenants to source for lower-cost alternatives outside the CBD.

Retail

Major shopping clusters to further support growth of retail market
The retail market remained stable in 3Q07, supported by the positive economic situation. Together with the new completions in 2006, there was more than 2.5 mil sf of new retail space completed since 2006.

Rents remained stable, with turnover rents of quality retail space continuing to increase. However, average fixed gross rents remained unchanged as competition increased with significant new completions. First-storey monthly fixed gross rents of retail space in Orchard/Scotts Road, Other City Areas and Suburban Areas averaged $40.30 psf, $25.90 psf and $32.20 psf respectively.

Retail sales in July declined 8.2% compared to June, as many shoppers purchased higher-order goods before the GST hike. This has affected turnover rents in some malls which specialise in selling bigger-ticket items. However, the retailing climate remains favourable with the economic situation poised to stay positive. The Weekly Saturday Late Night Shopping which commenced from September has also livened up weekend shopping. In addition, STB’s continual efforts to attract more MICE and weekend visitors to Singapore continues to lend support to consumer spending.

The retail market continues to offer more choices to shoppers. With increasing competition, owners are re-positioning and re-inventing malls. Besides rationalizing larger stores to accommodate flagships and specialty concept stores and re-locating lower-yielding stores to occupy less-prime locations, mall managers are sourcing for additional retail space. When there is unused GFA, plans are made to develop to the fullest potential, while in the case of re-development, some are applying to planning authorities to increase overall development space. Mall managers are also applying for permission to classify libraries and entertainment hangouts as civic and communal uses. These collaborative efforts with the authorities will result in more efficient retail space planning.

Looking ahead, rental prospects will remain positive on a selective basis. Rents are expected to be increasingly dichotomized, as ubiquitous malls have limited growth opportunities but rents in well-positioned malls at prime locations may continue to escalate. These include Orchard Road, where efforts to re-position the premier shopping district are gathering pace. Rents have been estimated to hit $60 psf for some retailing space in ION-Orchard and Orchard Central. There will be opportunities for some comparable retail space to benchmark and achieve similar rents.

Rents are also expected to be increasingly positive in three other shopping clusters, namely Raffles City/Marina Centre, Marina Bay and Harbourfront-Sentosa. There are opportunities for rents in these clusters to increase as their attractions are radically enhanced. For example, retailers in Harbourfront vicinity will also have more opportunities when all the private homes in the largest waterfront residential enclave, i.e. the Keppel Bay area and Sentosa Cove, are completed. Similarly, Marina Bay Shoppes will benefit when the development of Marina Bay is fully completed. Luxury residences such as Marina Bay Residences, MBFC, as well as leisure hotspots like Gardens by the Bay, Singapore Flyer and Marina Barrage, are expected to synergistically integrate and provide opportunities for upward rental movements of retail space in the vicinity.

Residential

Stronger broad-based recovery as mass-market continues to recover
Sales activity in the private residential market slowed vis-à-vis the record high in 2Q07. Notwithstanding, prices still reflect encouraging increase in 3Q07, backed by a healthy demand. There were also further signs of broad-based recovery, with mid-end projects such as The Parc Condominium and Soleil @ Sinaran receiving strong buying interest.
Several prime projects were officially launched in the quarter. The fifth condominium in Sentosa Cove, Turquoise, was also previewed for $2,400 to $2,700 psf. Meanwhile, the release of King’s 8 and Hillcrest Villa livened up the landing housing market. Before the official launch, Hillcrest Villa was almost fully sold for about $2.7-$2.8 mil per cluster terrace.

Monthly rents of prime apartments/condominiums enjoyed 14.9% QOQ increase, to average $4.40 psf. Average capital values of prime freehold apartments/condominiums increased by 15.0% QOQ to $1,380 psf, with the greatest increases of 18.2% and 15.1% for luxury ($2,600 psf) and 4bedroom ($1,370 psf) apartments respectively. Outside the prime districts, capital values of 3-bedroom freehold ($700 psf) and leasehold ($565 psf) apartments/condominiums increased by 8.5% and 8.7% QOQ respectively.

The prime leasing market will continue to thrive amid a tight supply. Choices in the prime districts will be limited as developments which were collectively sold are torn down for redevelopment, until new developments are completed from 2009. This will encourage strong investor interest and augurs well for the prime resale market. However, annual completions are estimated to peak in 2009 and 2010, with a number offering exclusive concepts.

The high-end residential market will continue to perform although projects which offer unrivalled concepts will have greater opportunities. Buyers will be more cautious and are less likely to purchase with the intention to sub-sell. The sub-sale market will be increasingly competitive, as choices have generally increased. Besides high-profile projects, there may be new growth areas for the sub-sale market. These include choice locations such as the eastern districts, where prices took a major upturn.

The interest for private residential properties is set to extend to homes outside the prime areas. Besides rents which will continue to escalate, the sales market for suburban homes is expected to further perform. The tight leasing market is encouraging some tenants to purchase. The mid-end sales market is likely to stage one of the stronger growths, partly supported by collective sale owners who are priced out of the prime areas and are seeking replacement homes. Meanwhile, new projects in the vicinity will continue to serve as useful benchmarks for mid-end resale properties.

The mass-market is likely to recover further, underpinned by economic recovery, increasing affluence and a strong recovery in the prices of HDB resale flats. Besides a strong demand for mass-market projects, the mass resale market will further recover. As resale properties in the mass-market offer immediate occupation and are lower-cost alternatives, they will be preferred by owners who tap onto the current situation to upgrade into private residential and who will have to vacate their flats in due course when the sale is legally completed. An increasing number of HDB dwellers for resale private apartments will also show that upgrading from public to private residential is in place. With the mass-market poised to take off, this will affirm a broad-based recovery in the private residential market.

Investment sales

Investment deals poised to be increasingly diversified

Investment Sales totalled 29% more compared to the previous quarter, with over $12.1 billion worth of investment deals transacted in 3Q07. This was 111% higher than the $5.74 billion posted the same period a year ago. Total investment sales in the first three quarters of 2007 have already exceeded that of 2006 by approximately 40%.

The residential and office sectors continued to be the key drivers, accounting for 70% of total transactions during the quarter. However, with the significant decline in collective sales activity, the share of the residential sector has fallen from 69% in 2Q07 to 24% in 3Q07. On the other hand, the buoyant office market spurred investment deals, with the share of office investment value increasing from 14% in 2Q07 to 46% in 3Q07. Supported by the tight supply in the office market, foreign institutional funds and S-REITS continued to focus on investment-grade office buildings in prime locations. A Goldman Sachs fund purchased Chevron House, the former Caltex House, for $730 million. At a record price of $2,780 psf of net lettable area, this exceeded the previous high of $2,640 psf for 1 Finlayson Green in 2Q07 purchased by UK-based Develica. Meanwhile, K-REIT Asia and Suntec Reit have bought a one-third stake each in One Raffles Quay for a total of $1.88 billion. This far exceeds the $462 million that KepLand, Cheung Kong and Hongkong Land paid for in equal stakes for the 99-year leasehold project.
There was significant slowdown in collective sales in 3Q07, totalling some $1.77 billion compared to $4.75 billion in 2Q07. This decline was partly due to developers who had actively replenished their landbanks and are more selective in purchasing sites for residential development. Meanwhile, the escalation in residential property prices have raised owners’ expectations for higher prices, taking into account the increasing cost for getting replacement homes and rising rents for temporary alternative accommodation.

Prospects for the investment sales market is expected to remain positive, supported by increasing interest from institutional funds and listing of potential REITS as Singapore remain attractive to foreign investors. Developers will continue to be interested in sites for residential development. These include leasehold sites that are available through the Government Land Sales. Besides being less-costly alternatives, this will be supported by the private mass residential market which has staged a notable recovery.

While changes to the collective sales procedure may lengthen the sale process, it will safeguard the interest of sellers. Meanwhile, developers will remain receptive to sites which are well-located and offer higher growth potential. These include some choice locations outside the prime districts, where prices took a major upturn in recent times. However, the pace of acquisition may also slow as these developments are generally larger. Meanwhile, some ageing strata malls are also actively planning for collective sales.

Like the increasing foreign interest for investment-grade properties, the profile of potential bidders is also expected to be more diversified. Besides developers, property funds and individuals with sound financial knowledge are also increasingly interested in participating in real estate investment and development activities.

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

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Singapore Mandarin Oriental benefits from upgrading

Singapore Mandarin Oriental benefits from upgrading

By NISHA RAMCHANDANI
THE Mandarin Oriental hotel here has enjoyed a significant increase in the number of international corporate and free and independent travellers (FITs) since it was upgraded and rebranded as a member of the worldwide Mandarin Oriental Hotel Group.
‘After the hotel was relaunched in 2005 we saw a two to three-fold increase in the number of business travellers in 2006, compared with 2004 and 2005,’ says Rajesh Jhingon, general manager of the Mandarin Oriental, Singapore.

‘Demand for rooms will continue to increase as the hotel is constantly upgrading its facilities and service.’

Guests have responded positively to the transformation of the hotel and the improved facilities, he said.

The hotel, previously The Oriental, Singapore, was renamed Mandarin Oriental, Singapore on Sept 25 to align it with the Mandarin Oriental Hotel Group, which is in the process of developing 17 new hotels worldwide.

The multi-million-dollar upgrade of the Singapore hotel - which included all rooms and suites, dining and meeting facilities, public areas and the fitness studio - is one of the most significant since the hotel opened in 1987.

The hotel was closed for refurbishment for three months from end-August 2004 until December 2004, when it reopened softly.

‘However, renovation works were still going on and we relaunched the hotel in May 2005,’ says Mr Jhingon. Upgrading of facilities continued after that, the latest being the renovation of the fitness studio, which was completed in June this year.

There will be further renovations in 2008 to the hotel’s rooms, including new furniture and the latest audio visual facilities in every room.

Source : Straits Times - 23 Oct 2007

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Singapore Holland Village site seeks $2,153 psf ppr

Singapore Holland Village site seeks $2,153 psf ppr

By ARTHUR SIM

AS the collective sales push powers on, a new benchmark for the Holland Village area could be set if Willyn Ville achieves its asking price of $120 million.

Willyn Ville: About 25 units of 2,200 sq ft each can be built on the 39,802 sq ft freehold site which is close to the Holland Village MRT station now being built
This works out to about $2,153 per square foot per plot ratio (psf ppr) for the 39,802 sq ft freehold site with a 1.4 plot ratio and gross floor area of 55,722 sq ft. No development charge is payable.

The breakeven price for the future development would be around $2,500 psf, putting it clearly in the luxury league of homes, said Dev Raj, senior manager of investments at Chesterton International, which is marketing Willyn Ville.

The collective sales market may not be showing signs of a full recovery since the US sub-prime crisis put a damper on investor confidence but Mr Raj says: ‘We have tested the asking price with both local and overseas investors - mainly from the Middle East - and the interest has been strong.’

The asking price is higher than other developments in the area also for sale, including Villa delle Rose at $1,758 psf ppr and The Estoril for $1,536 psf ppr.

However, anyone going to Holland Village will have noticed Willyn Ville’s extremely close proximity to the upcoming Holland Village MRT station and Mr Raj believes this is one of the site’s key attributes.

He estimates that about 25 units of about 2,200 sq ft can be built. This puts the asking price of each unit at about $6 million, based on the indicative price.

Over in the East Coast, on Upper East Coast Road, Credo Real Estate is marketing Rich East Garden for collective sale and the indicative price is between $90 million and $95 million. This works out to about $619 to $653 psf ppr (including development charge) for the 105,000 sq ft site with a 1.4 plot ratio.

Credo managing director Karamjit Singh estimates that the site may be configured into about 100 apartment units with an average size of 1,400 sq ft.

According to a study by an architect Credo commissioned, the developer of the site could also choose to build 3 1/2-storey strata mixed landed houses, with a combination of strata terraces, strata semi-detached and strata detached houses.

The property was put up for sale by tender earlier in July and Mr Singh said that there were a number of interested parties. But market sentiment had turned due to the volatility in the local and global stock markets then. This has impacted the new indicative price $95 million slightly. It was $92 million previously.

‘Now that sentiment has improved significantly, and with the launches of other redevelopment sites recently at relatively high asking prices, we feel that developers will find Rich East Garden to be an attractive proposition,’ he added.
Source : Straits Times - 23 Oct 2007

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Heftier property tax bills for hotels from 2008 - Singapore

Heftier property tax bills for hotels from 2008 - Singapore

Taxman’s new formula simplifies rules but means big tax hike for major hotels
By KALPANA RASHIWALA

(SINGAPORE) The property tax bills for many hotels here will go up by at least 33 per cent starting next year as the taxman tweaks his calculations.
The rate for hotels remains at 10 per cent of annual value (AV). But the formula to calculate the AV itself is set to undergo a change.

Starting next year, the AV for the rooms component of all hotels will be calculated as 20 per cent of their previous year’s gross room receipts. And from 2009, this rate will be raised further to 25 per cent of the preceding year’s takings.

Effectively, it means that most major hotels will shell out more, said industry watchers. Currently, the AV for gazetted hotels that have not been leased out by their owners - apparently the majority of big hotels in town fall in this category - is 15 per cent of the previous year’s gross room receipts. When this rate is raised to 20 per cent next year, it straightaway means that the AV for rooms alone will work out to a third more than it is now. There will be a further jump in 2009.

That’s not all. From next year, estimated market rent will form the basis for determining the AV for a hotel’s food & beverage (F&B) areas. Currently, the AV is calculated as 5 per cent of the preceding year’s gross F&B receipts. Other lettable areas in a hotel will continue to be assessed based on estimated current market rent.

The new formula for determining AV will apply uniformly to all licensed hotels, whether they are gazetted or not and let out or not, a spokeswoman for the Inland Revenue Authority of Singapore (IRAS) told BT. Currently, the AV for some categories of hotels is based on the estimated current market rent for rooms, F&B areas and other lettable areas.

So from next year the rooms component of property tax for gazetted hotels that are not leased out will increase by 33 per cent, assuming the same gross receipts, said the IRAS spokeswoman. But some hotels in the other category may see a slight drop in property tax.

‘However, the actual impact on each hotel’s property tax bill may vary depending on its gross receipts,’ she added.

Industry players said that the increase in AV for F&B areas could be even steeper. This will especially be the case for five-star properties with substantial ballroom and function-room facilities.

‘This is because the ballrooms will now be assessed for property tax, regardless of whether they are occupied or not,’ explains the CFO of a major hotel in the Orchard Road belt, who forecasts a 200 per cent increase in AV for the F&B areas of his hotel under the new formula.

Or as DTZ Debenham Tie Leung executive director (consultancy and statutory valuation) Ng Poh Chue puts it: ‘The market-rent approach does not give consideration to low-occupancy periods for ballrooms and function rooms.’

The CFO of the major Orchard Road hotel estimates that on the whole (rooms, F&B and other areas), the AV for his hotel will go up by nearly 60 per cent from next year and by more than 90 per cent from 2009 - other things remaining the same.

Some market watchers say that the hikes will eat into hotel owners’ bottom lines at a time when operating costs including labour have also been on the rise.

The Singapore Hotel Association said it is currently gathering feedback from its members.

IRAS’s spokeswoman said that both the Ministry of Trade and Industry and the Singapore Tourism Board were consulted and their feedback was taken into account, including phasing in the change over a two-year period instead of an immediate change.

She pointed out that the current formula to compute AV of hotels was introduced in 1986. ‘The 15 per cent on room receipts and 5 per cent on F&B receipts were found to be a close proxy to the standard valuation method, that is, estimated current market rent. This is the method of determining AV for other classes of property, such as residential, commercial and industrial.

‘However, given the passage of over 20 years, an update in the formula for computing hotels’ AV is needed to ensure it reflects an AV that does not vary too widely from one that is based on standard valuation method, as analysed from rentals paid for hotels that have been let,’ she explained.

As for changing the method of assessing AV for F&B areas to estimated market rent instead of a percentage of F&B receipts, IRAS said: ‘Restaurants and food outlets are widely tenanted today. So the AVs of such properties are easily determined from comparable market rents.’

However, Jones Lang LaSalle Hotels (Asia) EVP Chee Hok Yean had a different take. ‘The change will likely introduce more room for dispute due to the fact that most hotel F&B outlets are not leased to third parties, so there may not be (enough) precedent rentals. F&B outlets in hotels don’t enjoy the same traffic flow as restaurants in malls, hence there must be a distinction when comparing current market rents in these two types of properties,’ Ms Chee reasons.

Another issue is that not all hotel F&B space such as banquet halls and meeting rooms will be used on a daily basis and the authorities will have to allow for vacancy for these unoccupied periods. ‘That will create more admin work for the hotels when making submissions to IRAS,’ she added.

IRAS collected $37.3 million property tax on hotels for the year ended Dec 31, 2006, up from $33.4 million in the preceding year.

Source : Straits Times - 23 Oct 2007

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S’pore Yishun mall to get bigger, better with new Northpoint 2

S’pore Yishun mall to get bigger, better with new Northpoint 2

Extension is one of three malls Frasers Centrepoint will inject into its trust

By Lee Su Shyan, Assistant Money Editor

YISHUN residents, who for years managed with only Northpoint to meet their shopping needs, will get a retail shot in the arm next year.
Frasers Centrepoint Trust (FCT), a real estate investment trust (Reit) that owns retail malls including Northpoint, plans to integrate the mall with upcoming Northpoint 2.

Northpoint 2 is set to be completed next year. Once it is fully integrated with Northpoint, it will create a single shopping mall with a total net lettable area of 232,000 sq ft.

FCT says the enlarged mall will be the ‘heartbeat of the north, infusing new life and vibrancy into the community that the mall has been serving over the past 14 years’.

The trust yesterday turned in a bumper maiden set of full-year financial results. Its distributable income for the year ended Sept 30 was $40.4 million, a hefty 11.1 per cent above forecast.

For the full year, distribution per unit came to 6.55 cents representing a yield of 4.4 per cent, based on yesterday’s closing price of $1.50.

For the quarter, distributable income was $10.3 million, while distribution per unit was 1.67 cents.

As the economy keeps thriving, new and renewed leases at malls such as Causeway Point, Northpoint and Anchorpoint have been sealed at 12 per cent above previous rates.

The trust’s growth strategy includes enlarging its portfolios. Three malls have been acquired by Frasers Centrepoint and are ready to be injected into the trust: Northpoint 2 in the fourth quarter of next year, Yew Tee Point and Bedok Mall.

These three new malls, together with Centrepoint shopping centre, will double the trust’s portfolio.

FCT will enhance its malls ‘to benefit tenants and pave the way for further rental growth’, said Mr Christopher Tang, chief executive of the trust’s manager.

One example is Northpoint. There is also Anchorpoint’s makeover into a village mall concept that is due to be completed next month.

Other than new food and beverage tenants such as a new Tung Lok concept Zhou’s Kitchen, Anchorpoint will feature a cluster of factory outlets from Charles & Keith and G2000 for example.

Yesterday, health-care Reit, First Reit, reported its third-quarter results.

Its distributable income was $4.61 million for the third quarter ended Sept 30. With distribution per unit of 1.72 cents , the annualised figure of 6.7 cents gives a distribution yield of about 8.65 per cent based on last Friday’s close of 77.5 cents.

The distribution per unit for the quarter exceeded its forecast by 7.5 per cent.

First Reit has four health-care facilities in Singapore.

Dr Ronnie Tan, chief executive of the trust’s manager, said: ‘Leveraging on the buoyant regional health-care markets, coupled with our strong acquisition pipeline, we are confident of raising our asset portfolio to $500 million before the end of 2009.’
Source : Straits Times - 23 Oct 2007

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Mindy Yong

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S’pore 70% of Jurong Point’s uncompleted wing leased out

S’pore 70% of Jurong Point’s uncompleted wing leased out

By Joyce Teo, Property Correspondent
MEGA MALL: Jurong Point is set to be the largest suburban mall in Singapore when its 290,000 sq ft new wing opens before Christmas next year. The combined 700,000 sq ft enlarged mall is part of a $720 million integrated project, which includes an air-conditioned bus interchange and a 610-unit condominium.

JURONG Point, which is set to be Singapore’s largest suburban mall, says its new extension is already 70 per cent taken up more than a year ahead of the wing’s completion.
One of the main tenants, supermarket retailer NTUC FairPrice, will open a FairPrice Xtra, its hypermarket brand.

It will take up more than 70,000 sq ft on the third floor of the new wing, said the mall’s development and marketing manager, Starmall Property Management.

The first FairPrice Xtra - a 77,000 sq ft outlet - opened late last year in Ang Mo Kio Hub. The second one is in Hougang Point.

Another anchor tenant is Popular Book Company, an existing tenant which has agreed to double its retail space and relocate to a unit of about 18,000 sq ft. It will also open a Harris bookstore of more than 8,000 sq ft in the new wing.

Department store Yue Hwa Chinese Products, which has three outlets in Hong Kong, will set up a 5,000 sq ft shop in the mall. It now has one store in Singapore, in Chinatown.

Property consultancy Knight Frank’s deputy managing director, Mr Danny Yeo, said the good take-up is expected as there is a dearth of good-quality suburban malls. ‘There is very strong interest in suburban malls, particularly large ones near MRT stations, where there is a lot of transient traffic.’

Analysts say rents at Jurong Point could be $11.50 to $12 per sq ft on average.

Opened in 1995, Jurong Point in Jurong West has 220 tenants occupying 410,000 sq ft of lettable area. The new wing - slated to be opened before Christmas next year - has 290,000 sq ft, of which 70 per cent has been leased out.

The combined 700,000 sq ft enlarged mall will be the largest suburban shopping centre in Singapore. It is part of a $720 million integrated project, which includes an air-conditioned bus interchange and a 610-unit condominium above the new wing.

The 99-year leasehold The Centris was released in late September last year and was fully sold by May.

Jurong Point will also have about 43,000 sq ft of non-profit space for charities and other similar bodies, which will pay a service charge, instead of market rents.

Under a government scheme, Jurong Point is granted extra lettable space - which it will use for a 24-hour eatery and a medical centre - in return for the donation of non-profit space.
Source : Straits Times - 23 Oct 2007

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Mindy Yong

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