Singapore Amber Glades up for en bloc sale at $145m

Singapore Amber Glades up for en bloc sale at $145m
JUDGING by the asking prices of new collective-sale sites, it would seem there is no shortage of confidence in the property market.
Amber Glades: The site can be redeveloped into 88 residential units of 1,300 sq ft each. Based on the asking price, the breakeven price is $1,700-$1,800 psf.
Amber Glades, off Amber Road on the East Coast, has just been put up for collective sale at an indicative price in the region of $145 million. And the buyer can also expect to pay a development charge of about $9 million on top of that.

Amber Glades is on a 40,917 sq ft site with a 2.8 plot ratio. At the indicative price, the cost works out to $1,345 per square foot per plot ratio (psf ppr).

In August, a smaller site off Meyer Road sold for $58 million or an estimated unit land price of $882 psf per plot ratio including a development charge.

Marketed by Colliers International, the Amber Glades site can be redeveloped into 88 residential units of 1,300 sq ft each. Colliers executive director of investment sales Ho Eng Joo estimates that based on the indicative price, the breakeven price is about $1,700-$1,800 psf. This would put the launch price at over $2,000 psf.

But a selling price of $2,000 psf would not be a new benchmark for the East Coast area. Mr Ho believes some new developments have already been transacting at this price.

Market watchers claim that the Aalto on Meyer Road is one development achieving such prices - though a check of the latest data for on the Urban Redevelopment Authority’s website reveals that only one unit was sold in September and the transacted price was $1,570 psf. Whether subsequent sales have been done at a higher price will be known next month.

For now, according to caveats lodged, The Seafront on Meyer has had units transacted at over $2,000 psf but these have been penthouse units.

Closer to the Amber Glades site are the residential developments One Amber and The Esta. Recent transactions in these developments are in the range of $1,000 psf and $700 psf respectively.

Source : Business Times - 24 Oct 2007

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Singapore Reserve site up for sale, sparked by $7.8m bid

Singapore Reserve site up for sale, sparked by $7.8m bid

Committed sum for 17conservation shophouses comes to just $460K each
By ARTHUR SIM

With property prices hitting new peaks in recent times, it is rare to see a committed bid of just $7.8 million for a 15,200 sq ft site near the city centre.
Based on the committed bid received by the Urban Redevelopment Authority (URA), each of the 17 two-storey shophouses on this Jalan Sultan site could, theoretically, go for as little as $460,000 a unit.

The committed bid is not the transacted price for the reserve list site as it will now be put up for public tender. Still, it gives an indication of the range of bids that could eventually come in.

The 17 shophouses have been gazetted for conservation and the successful tenderer is required to restore and reconstruct these conservation shophouses in accordance with the tender conditions and the Urban Redevelopment Authority’s Conservation Guidelines for Historic District.

Zoned for commercial use, the shophouses could be used for office or even as hotels.

Colliers International executive director (investment sales) Ho Eng Joo believes the winning bid could be around $14 million or roughly $800,000 a unit. Add to this renovation and restoration costs of about $300,000 per unit and the potential winning bidder could be looking at spending about $1.1 million per unit.

But as Mr Ho notes: ‘The area is changing.’ Highlighting that KeyPoint, formerly known as Jalan Sultan Centre, was sold recently for $1,186 psf of net lettable area, Mr Ho believes the 17 shophouses could give an investor a yield of over 5 per cent if each unit is rented out for at least $5,000 a month.

‘Only the lack of carparking could be an issue,’ he added.

Over in Woodlands, the Singapore Land Authority has released a 172,223 sq ft residential development site at Woodlands Avenue 2/Rosewood Drive and developers could also be looking at a bargain.

Mr Ho reckons the site, which is on the confirmed list of the Government Land Sales programme, could go for between $250 - $280 psf ppr. With a plot ratio of 1.4, the gross floor area could be up to 241,112 sq ft, giving the site a price tag of between $60.2 million and $67.5 million.

The site may not be directly next to an MRT station but Mr Ho believes a future development would have good rental potential as it is close to the Singapore American School.
Source : Business Times - 24 Oct 2007

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Genting seeking $3.2b loan for Sentosa resort

Genting seeking $3.2b loan for Sentosa resort

GENTING International plc, a unit of Asia’s biggest casino operator by market value, is seeking to borrow a record S$3.2 billion to fund a casino resort in Singapore, three people with knowledge of the transaction said.

The overseas unit of Kuala Lumpur-based Genting Bhd is adding to S$2.17 billion raised in a rights offer in August, and S$450 million of convertible bonds it sold in April to partly fund the resort.

Genting International’s loan will push lending to Asia’s casino industry to about US$9.1 billion, more than double the total for last year, according to data compiled by Bloomberg. Lending to the region’s industry is set to grow as countries including Japan consider joining Singapore in lifting bans on casinos.

‘There are quite a few countries in Asia where gambling is banned,’ said Harsh Agarwal, a credit analyst with Lehman Brothers. ‘If more countries legalise gambling, we should see an increase in bank lending for casinos.’

Las Vegas Sands, the world’s largest casino operator by market value, hired eight banks last month to arrange a loan of about S$5 billion for its Singapore gaming resort.

Genting International’s loan will be a record for the Singapore-listed company. The gaming operator has yet to pick arrangers, said the people, who declined to be identified because the information is private.

Tan Hee Teck, chief executive officer of Resorts World at Sentosa Pte, Genting International’s S$5.2 billion casino project in Singapore, didn’t return calls made to his office yesterday.

The regulated gambling market in the Asia-Pacific region is expected to expand 15.7 per cent a year to US$30.3 billion in 2011, according to PricewaterhouseCoopers. The region will replace Europe, the Middle East and Africa as the second-biggest gaming market after the US by 2011, PwC says.

Genting International will be building the casino on Sentosa island, known for its golf courses and beaches. The resort will include South-east Asia’s first Universal Studios theme park.

Singapore’s government lifted a four-decade ban on casinos two years ago and issued licences to Genting International and Las Vegas Sands.

‘Bankers will take a lot of comfort in that Genting does have a history in casinos,’ Mr Agarwal said. - Bloomberg

Source : Business Times - 24 Oct 2007

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Mapletree plans to list Reits, snap up new assets

Mapletree plans to list Reits, snap up new assets

Commercial trust may include VivoCity; company eyes big growth overseas
By UMA SHANKARI
(SINGAPORE) Mapletree Investments intends to list a commercial trust with a $3-$3.5 billion portfolio in the next six months as it moves to grow its fee income and expand its footprint overseas, says chief executive Hiew Yoon Khong.
Mr Hiew: The greatest opportunities are in China, where Mapletree is looking at second-tier cities
‘Over the next four years we want to scale up our capital management business by being very active in key markets,’ he told The Business Times in a recent interview.

Besides Singapore, the company is looking at China, India and Vietnam for acquisitions. And in the slightly longer term it is also interested in Taiwan, South Korea and Thailand - particularly their logistics and industrial sectors.

The plan is to bump up revenue from fee income to 50 per cent of overall revenue in the next three to five years - from just 9 per cent in Mapletree’s last financial year.

To grow the capital management business, the company has opted to look abroad. Right now only about 20 per cent of its portfolio is outside Singapore. But Mr Hiew said the proportion could be as high as 80 per cent in five years.

‘As a group, we hope to be able to break into one or two new markets a year,’ he said. The greatest opportunities, he believes, are in China, where Mapletree is now looking at second-tier cities. First-tier cities are ‘too crowded and the values are too high,’ he said.

In particular, Mapletree is trying to expand its commercial presence in Singapore and the region.

‘People know us as a logistics player, but as a company we are a lot more than that,’ Mr Hiew said. ‘Looking forward, we will be bidding for land to do development work. In Singapore, we are keen to have a bit more exposure to the office sector in particular.’

One way to do this is through the upcoming commercial trust - which the market has been waiting for.

The trust will likely contain VivoCity - Mapletree’s largest asset, with a book value of about $1.6 billion - as well as other commercial properties including office buildings Harbourfront Centre and PSA Building and nightspot St James Power Station, Mr Hiew said.

Mapletree is already lining up a pipeline of assets for the trust. In a break from tradition, the company this year started bidding for commercial land sites in Singapore.

In July it won a government land sales site at Anson Road/Enggor Street in a public tender that drew other big names such as CapitaLand and Keppel Land. Mapletree’s offer was 23 per cent higher than the next highest bid.

In addition, Mapletree is likely to launch a Reit based on assets in India, with its Indian property development partner Embassy Group, by the first half of 2008.

Market talk of Embassy’s Reit, which will be managed through a joint-venture partnership between Embassy and Mapletree, has been around since early this year. Mr Hiew confirmed plans for the Reit.

‘We will probably hold some sort of equity stake in the trust but that is not finalised yet,’ he said.

Mapletree has also secured a deal to co-manage the Lippo Group’s Indonesia-focused retail Reit. The prospectus for this Reit was lodged with the Monetary Authority of Singapore (MAS) last Friday.

Mr Hiew is also committed to growing Mapletree’s private equity franchises. For example, the company - together with its partner CIMB - will be launching its second Malaysia fund in the next six months.

Mapletree’s growing portfolio in Singapore and overseas will serve as an asset pipeline for both the existing Mapletree Logistics Trust and the new commercial trust, as well as any funds the company might set up in future.

‘We are very keen to support the growth of our Reits and fund business,’ Mr Hiew said.

With its asset-light strategy in place, the company will now be able to take on bigger projects and move faster on them.

Right now, assets under management stand at $2.2 billion, while Mapletree owns a further $4.8 billion of assets. Mr Hiew’s aim is to grow by $1 billion or so each year.

‘Four years ago we mapped out strategic initiatives for the company to enhance our value,’ he said. ‘When we review the programme now, we are happy with the progress to date but will look to scale up these businesses much more.’
Source : Business Times - 24 Oct 2007

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Singapore Govt puts residential site in Woodlands up for sale

Singapore Govt puts residential site in Woodlands up for sale

THE Government has launched for sale a residential site in Woodlands, which has been enjoying a buoyant property market of late despite its far-flung location.
The Singapore Land Authority offered the 172,223 sq ft site in-between Woodlands Avenue 2 and Rosewood Drive in a tender that closes on Nov 20.

The site can accommodate a condo of up to five storeys with a gross floor area of 241,112 sq ft.

Mr Ho Eng Joo of marketing agent Colliers International said an apartment there could sell for more than $600 per sq ft (psf).

Already, some 20 units at Far East Organization’s executive condo, La Casa, were sold at a median price of $564 psf last month. La Casa was launched in 2005 at $380 psf on average.

While Woodlands may be far from town, properties there have registered rising rents, as the Singapore American School is in the vicinity, consultants say.

The Woodlands site comes under the Government’s confirmed list, where sites are put up for tender on a specific date.

The Government also sells sites on its reserve list, which are put up for tender only if a developer commits to submitting a minimum acceptable bid.

Yesterday, a developer did just that with a 99-year leasehold commercial site in Jalan Sultan involving the restoration of 17 two-storey conservation units.

The Urban Redevelopment Authority has an offer from a developer willing to bid at least $7.8 million for the 0.14ha site to be tendered out in two weeks.

In Amber Road, where property values continue to rise, a freehold site housing the 63-unit Amber Glades has been launched for sale at a guide price of $145 million. The tender for the 40,917 sq ft site closes on Dec 5.
Source : Straits Times - 24 Oct 2007

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KepLand reports 113% increase in third-quarter profit

KepLand reports 113% increase in third-quarter profit

Developer chalks up $82m gain on strong sales; another player, CCT, reports steady growth
By Joyce Teo, Property Correspondent
PROFIT DRIVER: Sales at Reflections at Keppel Bay and Park Infinia at Wee Nam contributed to KepLand’s bottom line. — PHOTO: KEPPEL GROUP

SINGAPORE’S booming residential home market sent Keppel Land’s (KepLand’s) net profit in the third quarter rocketing by 112.5 per cent to $81.8 million.
Turnover was at $382 million, up nearly 50 per cent from $255.6 million a year earlier.

Singapore proved especially lucrative.

KepLand earned $56.4 million in Singapore on strong contributions from sales at its Reflections at Keppel Bay and Park Infinia at Wee Nam condo projects. The company has sold 600 of the 1,129 units at Reflections.

KepLand sold 750 residential units in Singapore in the first nine months of the year and more than 2,200 homes overseas, mainly in China and India.

Earnings per share for the nine months ended Sept 30 reached 28.8 cents, up from 16.6 cents a year earlier.

KepLand believes demand for quality housing across Asia remains robust, supported by economic growth, home-owner aspirations, urbanisation and a rising middle class.

Net asset value per share stood at $2.34 as at Sept 30, up from $2.12 at the end of last year.

KepLand will launch the posh Marina Bay Suites early next year and release other residential projects in line with market demand. There is also a slew of launches coming up in China, Vietnam and India later this year.

KepLand said demand for quality housing across Asia remains robust, supported by economic growth, home-owner aspirations, urbanisation and a rising middle class.

KepLand has interests in the Marina Bay Financial Centre, K-REIT Asia and Ocean Financial Centre.

Another property player, CapitaCommercial Trust (CCT), reported yesterday that it is achieving steady growth and expects to benefit from a strong office market.

It reported a distributable income of $29.6 million in the third quarter, up 52 per cent from a year earlier and 13.5 per cent above forecast.

Distribution per unit was 2.14 cents in the third quarter and 8.49 cents on an annualised basis, up 18.9 per cent from a year ago.

Third-quarter net property income was at $59.7 million.

CCT’s yield-accretive acquisition of Raffles City last year also helped lift its results.

Rentals committed at CCT’s prime assets have crossed $11.50 per sq ft a month, the highest rate reached during the office market’s peak in 1990, it said.

CCT said its acquisition of Wilkie Edge, if approved, will bring its asset size to $4.8 billion. It expects to grow this further to between $5 billion and $6 billion by 2009.

Source : Straits Times - 24 Oct 2007

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‘I’m a legend - better than Warren Buffett’ - Singapore

‘I’m a legend - better than Warren Buffett’ - Singapore

A charismatic James Phang, confident in spite of probe, boasts over $439m in assets
By Lorna Tan, Finance Correspondent

MR JAMES Phang is pumped up with self-belief and confidence, even though a business linked to him is now under scrutiny by the Singapore authorities.
‘I’m a legend. I’m very good - better than Warren Buffett,’ he declares, referring to the United States investment guru.

Mr Phang claims to control more than US$300 million (S$439 million) in assets.

‘We acquire companies like you go to market buying beancurd,’ says Mr Phang, a motivational speaker who claims to have over one million students worldwide.

‘When I begin my seminars, my loyal participants would shout: ‘Father, I love you!’,’ he says.

Mr Phang, 48, is a charismatic adviser to Sunshine Empire, a multilevel marketing (MLM) firm that has proven to be very popular - but also controversial.
BARELY 16 months into operations here, his MLM arm, Sunshine, was last month placed on the Monetary Authority of Singapore’s (MAS’) investor alert list. This list names people or firms who may be conducting activities regulated by the MAS without authority.

Mr Phang, who works from a huge office in the Toa Payoh hub, is the founder, director and international president of Empire Group Alliance, a group spanning several Asian countries.

Sunshine is part of the group, but Mr Phang does not own it.

The group has interests in network marketing, entertainment, energy, real estate, telecommunications, health and beauty, insurance, and finance.

Its property arm, Empire Property Venture, is involved in several projects in Malaysia worth US$200 million. These include the 30-storey Empire State Tower in Kuala Lumpur, Sunshine Villa - which will house a medical centre - as well as a marine theme park with underwater accommodation in Malacca.

Empire Group’s assets exceed US$300 million, he says.

Mr Phang is careful to emphasise that he ‘will not harm anyone and my businesses are legal’.

He says it has taken five years to conceive Sunshine’s business model, which he calls revolutionary and superior to others.

At Sunshine, people signing up as merchants under specific plans to shop on its online shopping platform get consumer rebates known as ‘e-points’, which can be used for online shopping or converted to cash. The rebates are not guaranteed.

Core belief

UNLIKE other MLM firms, Sunshine does not require its ‘merchants’ to meet a certain sales volume every month - part of its attraction.

Sunshine’s online shopping platform reflects Mr Phang’s belief in creating wealth.

‘We have entered into an era whereby imagination is much more important than knowledge and creativity, much more effective than productivity,’ he says.

Humble roots

MR PHANG’S vast business empire belies a humble beginning. Growing up at a vegetable farm in Lim Chu Kang, he worked hard to pay for his studies through various jobs, including construction work.

He left school after O levels and worked at a shipyard while studied for his A levels at night. A medical condition caused his left eye to go blind when he was sitting for his final exams at the National University of Singapore (NUS).

After graduating from NUS with a degree in economics and statistics, he joined the Chinese evening paper, Shin Min Daily News, where he worked as a features writer from 1984 to 1990.

He, however, found his niche in sales, starting at age 19 with door-to-door sales, selling AMC stainless steel cooking utensils, health items and other various products.

‘I’ve sold everything. I’m a walking MLM dictionary. My aim is to grow Sunshine to be a global leading MLM firm with US$2 billion by next year,’ he says.

He started MLM firm Number One Product, which sold magnetic mattresses, in 1990.

The Empire Group Alliance was set up in 2003.

Mr Phang is married with four children, ages 13 to 21.
Source : Straits Times - 24 Oct 2007

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Record 766,000 tourists last month - Singapore

Record 766,000 tourists last month - Singapore

By Arlina Arshad

MORE tourists are coming here from Vietnam, China and Australia. Attractive travel promotions and airline packages have also increased tourist numbers.
The result - a 7.1 per cent spike in visitor arrivals last month, over the same period last year.

This figure is the highest in the month of September since records started in the 1970s.

In a statement yesterday, the Singapore Tourism Board (STB) said there were 766,000 visitors here last month.

Most came from Indonesia, China, Australia, India and Japan, accounting for just over half of total arrivals.

Vietnam charted the highest visitor arrival growth with 16,000 visitors, a 24.3 per cent increase over the same period last year.

Together, these 766,000 visitors spent about three million days here - a 17.7 per cent hike over September last year.

Last month also set a new record in terms of room revenue. Hotels raked in room revenue of about $152.2 million - a 7.4 per cent rise over September last year.

Room rates and occupancy were also higher. The average room rate was $201. The average occupancy rate was about 85 per cent.

Mr Robert Khoo, chief executive of the National Association of Travel Agents Singapore (Natas), said the record growth was due to the better regional economy, and STB efforts to promote Singapore as a travel destination.
Source : Straits Times - 24 Oct 2007

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