Marina Collection @ Sentosa Cove - Singapore - District 01 - 08

Marina Collection @ Sentosa Cove - District 01 - 08 - Singapore Property

Located at Sentosa Cove, one of the world’s most exclusive oceanfront residential community
Situated right at the water’s edge and within the vibrant hub of Sentosa Cove’s quayside community, the marina collection is the only residential site fronting the marina.
It will be a low rise of 4 storeys of luxury waterfront residences.

There will be about 170 units ranging from 1700sqft to 2000sqft in size.

Developers bet big on Sentosa Cove condos
(SINGAPORE) Sentosa will be home to Singapore’s second integrated resort with casino by 2010 - but the gambling has already started.

Betting on huge profit margins at Sentosa Cove, Lippo Realty recently bid 130 per cent more than the price paid for the first condominium site in December 2003; while Ho Bee Group - which launched the first condo there - will soon launch The Coast at around $1,400 psf, 75 per cent more than an apartment cost there less than three years ago.

The odds are in favour of even higher prices. Last month, Lippo bid a new benchmark price of $234.7 million for the 240,000 sq ft, 99-year leasehold site. Based on data compiled by CB Richard Ellis (CBRE), the price works out to be $818 psf per plot ratio, 28 per cent more than the price for the most recent site sold about a year ago.

Joseph Tan, director (residential) at CBRE, also noted that Lippo’s bid price matches those of recent freehold sites sold in District 9. He even believes that Sentosa Cove could become a ‘pace-setter’ in the movement of prime prices in the residential market.

Lippo has not been awarded the site yet but BT estimates that based on its bid price, the new condo could be launched at around $1,600 psf. When Ho Bee Group launched the first condo The Berth by the Cove in November 2004, average price was just $800 psf. When The Azure by Frasers Centrepoint was launched in September 2005, prices had risen by as much as 25 per cent. By July, City Developments’ The Oceanfront @ Sentosa Cove was selling for $1,300-$1,350 psf, about 60 per cent more than The Berth.

Ho Bee should not be too sore, though. A financial analyst who did not want to be named projected a profit of about $173 million for the group from proceeds of The Coast. She is not too concerned about rising land prices at Sentosa either: ‘In the near term, we do not foresee any risks.’

Based on estimated construction costs and building efficiency, Ho Bee’s project could have a profit margin of between 35 and 40 per cent. Indeed, BT estimates the margins for the previous two developments were also in this region while The Berth enjoyed a margin of around 25 per cent.

Ho Bee is said to have been outbid by Lippo for the latest Marina Collection site by 7 per cent but Lippo will not be expected to take a haircut.

Colin Tan, head of research and consultancy at Chesterton International, said: ‘Given the way the market is moving, I would not even rule out prices hitting the $2,000 psf mark.

‘Developers would normally factor at least a 25 per cent profit margin in their planning but depending on how the market pans out or takes off, returns of 50 per cent or more would not be surprising.’

This could explain Lippo’s bullish bid for the Marina Collection site.

‘In the case of Sentosa, developers probably see this site as being less risky - although the price is many times higher - than say a suburban site in an off-location, given the lukewarm conditions in that segment of the market presently,’ he added.

A property consultant who did not want to be named agreed. ‘Sentosa has not reached its full potential yet. Even in the prime districts, you don’t see this potential because it has already been capitalised,’ she said. Outside Sentosa, developers generally work with a 10-15 per cent margin, she said.

There are several more residential sites at Sentosa Cove to be released at strategically timed intervals in the future, and two developments are unlikely to ever be launched together.

‘Who will Lippo’s competitor be?’ asks Nicholas Mak, director of research and consultancy at Knight Frank, highlighting that it is very much a sellers’ market. Still, buyers will be gambling too. Says Mr Mak: ‘The higher the purchase price, the higher the risks for investors.’

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Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse & land right here.

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Correction? What correction? - Singapore

Correction? What correction? - Singapore

By JOSEPH CHONG
GLOBAL equity markets have been volatile in the past few months. Losses on sub-prime mortgages have morphed into a more general credit crunch problem arising from the loss of confidence within the global financial system.
Due to the lack of transparency, banks find it difficult to determine what sub-prime exposure banking counterparties have, although this has become more apparent recently as more billion dollar mea culpas emerge. Indeed, each announcement brings the problem closer to a close as the ultimate loss is a fairly deterministic amount (US$200-300 billion).

Moreover, a bailout by the US government is highly probable as 2008 is an election year and no politician is interested in throwing four million Americans out of their homes. Unlike the Asian Financial Crisis, where borrowers had to find US dollars to repay, the US has full control over its monetary printing presses. What is interesting is the cause of all this - an oversupplied real estate market which responded to excessive demand stoked by easy credit and lax lending standards. Indeed, this appears very much like what we had in Singapore in 1996.

Before we discuss the Singapore residential property market, let’s examine the US situation.

Is there a US bottom? Too much supply relative to demand and inventories bloat and prices fall. For prices to bottom, inventories must stabilise. Will US home inventories stabilise soon, then?

Core demand is a function of demographics and jobs (one needs to service the mortgage). The US has a growing population. As for jobs, the weak US dollar has boosted exports. It has also reduced imports, thus allowing local US companies to regain market share and create even more jobs. The chart on new home sales show that the support level stands at around 800,000 annualised units for single-family homes, which is about the rate of new household formation. Interestingly, new home sales for single-family homes are running around 750,000 annualised units.

On the supply side, housing starts are falling as developers cut back rapidly. At the margin, this supply is needed to meet the needs of new households and replacement housing. From the accompanying chart support stands at around 1.1 million units. Currently, starts have fallen to around this level on an annualised basis, of which 880,000 are single-family homes. Thus, inventories appear to be stabilising - which has been the case in the past few months.

Indeed, when asked in Congress as to when he expected housing to bottom, Fed chairman Ben Bernanke was quite forthright - 2Q2008. His reason: US demographics and falling housing starts. Indeed, if his prediction is correct, the stock market which forecasts events 6 to 12 months ahead, would be putting a bottom on US home builders soon (currently trading at 0.65 times book value!). This could only be good for all equity markets.

Is Singapore peaking?

There has been a hiatus in the residential property market in the past few months, but is this the peak or the pause that refreshes? For the market to go down, supply must overwhelm demand. Let’s look at demand first. Demand is expected to be very firm. Singapore will have a growing population and labour force (mainly foreign-sourced); and strong job creation growth over the next five years. Strong investment flows (especially exciting are those in alternative energy) amounting to at least 3 to 5 per cent of GDP annually over the next three to five years are your kicker. This would translate to at least 5 to 7 per cent real GDP growth over next five years.

This would not only ensure full employment but real increases in wages as well as additional foreign labour imports. Indeed, the need is now to restrain further stimulus because of economic overheating. Maybe we should send 50 per cent of the Economic Development Board on sabbatical. The bottom line is that the demand for housing and better housing would be sustained at current high levels.

On the supply side, the URA data shows that the vacancy rate appears to be steadying at a low level of 5 per cent in 3Q2007 (against 10 per cent three years ago). The vacancy rate measures the availability of existing private residences and it cannot go to zero because some homes will always be vacant at any one time. Five per cent tells us that the current supply is not plentiful and that’s why rents continue to rise. But what about the future supply? Will there be a glut in two to three years?

‘Inventory’, which I define as ‘unsold homes which are completed or under construction’, continues to fall from 9,284 units to 8,443 units in 3Q2007, according to the URA. The rest of the 29,570 ‘uncompleted’ units is potential (uncertain) supply - they have planning approval but construction has not started. Indeed, as construction has not started, they would not count as ‘inventory’. This is because developers, whose cash flows are fairly strong, will defer projects (even with leasehold land) when demand becomes uncertain.

We have seen them doing this in the past and current media reports indicate that this is indeed occurring. Should only two-thirds of the 29,570 come on stream in the next three years and if current demand levels prevail, there will be no glut. For those waiting for a significant price correction in the next three years, I fear the wait would be futile.
Source : Business Times - 05 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

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mindy@mindyyong.com

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Singapore MAS stays sober despite data highs

Singapore MAS stays sober despite data highs

By SIOW LI SEN

THIS year’s Financial Stability Review by the Monetary Authority of Singapore (MAS) contained rather sober reading, despite the data on strong economic growth.
The MAS’s view, released on Monday, is that this year’s financial market turmoil has clouded the outlook for 2008. It sees greater uncertainty with increased risks to the region’s growth outlook.

Asia, which has been enjoying strong inflows - channelled into property, equity and other financial assets - could suffer ’shocks’ in the event of spikes in risk aversion, resulting in sharp reversal of these flows.

The MAS says that greater uncertainty may make it difficult for corporations and banks to sustain financial performance.

As for Singapore’s three local banks, the MAS warns of a challenging environment ahead in which there could be risks to their profits from volatile financial markets. It also says that the banks’ core interest income may fall if there is a sharp US economic slowdown.

‘Key short-term risks to banks’ profitability could stem from a spike in volatility of financial asset prices or a sharp US economic slowdown. Falling and volatile financial markets could lead to trading losses, markdowns in collateralised debt obligation (CDO) assets and lower fee income as customer trading activity diminishes.’

The three local banks are DBS Group Holdings, United Overseas Bank (UOB) and OCBC Bank.

For the third quarter, the banks reported net profits that were between 10 and 14 per cent lower than those for the previous quarter, before the credit market turmoil.

But the data on surging loans growth shows no signs of abating and there is much to cheer on the household debt front as the fall continues. Loans growth in October accelerated to 15.5 per cent, the fastest in almost 11 years, driven by broad-based demand. Home loan growth was up 14.4 per cent while business loans galloped at 18.5 per cent.

As for household debt - which accounts for about half of domestic non-bank loans - it grew in the second quarter of the year, but at a slower pace than remuneration and household assets.

Singaporeans, it seems, are still quite conservative about taking on high levels of debt as the decade-long property slump is probably still fresh in people’s mind. Credit card loans growth has actually fallen while car loans continue to shrink, notwithstanding the increasing numbers of fancy sports cars spotted on the road.

The negative housing equity situation also continues to improve, with the proportion of mortgage accounts where the sum borrowed is greater than the value of the home it is used to purchase having halved to 2.5 per cent in September 2007 from 5.1 per cent a year earlier.

It is interesting then that the MAS has sounded a rather sober note on the earnings prospects of local banks next year. It could be that the authority knows more than it is letting on. It could be that the MAS is less than happy that the double-digit growth of business loans is driven by the building and construction sector though it pointed out that the non-performing loans ratio of this industry has continued to fall.

It also notes that while the rise in banks’ property exposure has been driven mainly by loans to property-related firms, loans to individuals for investment purposes have also increased of late. Perhaps, as a central bank, it is only proper to sound cautious. Even when Christmas is only three weeks away.
Source : Business Times - 05 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com

South Beach project to cost $2.5b: CityDev - Singapore

South Beach project to cost $2.5b: CityDev - Singapore

By UMA SHANKARI

(SINGAPORE) City Developments’ upcoming mixed-use project along Beach Road will cost some $2.5 billion in all - including the land cost of some $1.69 billion - the company’s chairman Kwek Leng Beng said yesterday.
Futuristic: South Beach is envisaged to become ‘revolutionary New Eco-Quarter in Singapore’ when completed by 2012
Mr Kwek was speaking to reporters after signing the building agreement for the site.

CityDev, together with its partners Istithmar (part of the Dubai World Group) and US-based Elad Group, secured the 3.5-hectare site in a government land tender in September. The three partners hold a one-third stake each in the project.

The development, which will be called South Beach, is set to become a ‘revolutionary New Eco-Quarter in Singapore’ when it is completed by 2012, CityDev said. Construction will start next year.
South Beach will have premium office space, luxury hotels, residential apartments and retail space with a total gross floor area (GFA) of some 1.6 million square feet, CityDev said.

The partners are required to set aside at least 40 per cent of the total GFA for office use, and another minimum 30 per cent of the total GFA for hotel use.

In line with this, the consortium is planning two luxury hotels. One of the hotels will be a high-end boutique hotel with about 250 rooms, while the other will be a five-star hotel with about 450 rooms, CityDev said. The partners intend to bring in upmarket hotel brands for both hotels.

The partners are also looking to bring in branded residences for the luxury apartments they will be building on the site - such as The Plaza in New York, which is owned by Elad.

Looking ahead, Mr Kwek said he believed that the property market in Singapore is in a period of ‘consolidation’ brought on by the sub-prime mortgage crisis in the US. ‘In 2008, a lot will depend on how much the sub-prime recovers and whether the US will go into a deep recession,’ he said. ‘2008 will have a little storm here and there, but Asia Pacific will grow.’

For Singapore, Mr Kwek said that there is still a potential upside for mid-range home prices, which are still below their historical peaks.

PRESS RELEASE

4 December 2007

SOUTH BEACH – A SYNERGISTIC AND DYNAMIC COLLABORATION OF UNIQUE DIVERSITY
Possibly the first of such an internationally dynamic collaboration of this scale in this part of the world,South Beach has elevated Singapore’s position in the global arena with City Developments Limited’s invitation to and successful bringing together of two prominent international conglomerates, Dubai World and Elad Group, in their largest Singapore investment to-date in a consortium led by City Developments Limited (CDL).
The tender price for this multi-billion dollar South Beach development project is
S$1,688,888,000 and is estimated to be completed by 2012.The equal partnership between these three unique conglomerates is made more dynamic by the extensive experience and contacts each has in the hotel, real estate and retail segments.

Likely to be the last major strategic site in the Civic District, South Beach will stand out on the city skyline with its revolutionary modern and environmentally sustainable architecture which is also sensitive to the preservation of the conserved buildings that it will encompass. As the Singapore economy grows from strength to strength, South Beach will be a beacon signalling exciting times ahead – with the introduction of prominent global investors and corporations making their mark in Singapore.

South Beach will house premium office space, two luxury hotels, exclusive city residences and exquisite retail space with a total gross floor area of 146,827 square metres in two tower blocks of up to 45 storeys and four conserved blocks. Designed by prominent architectural British firm, Foster + Partners, South Beach is designed to become a revolutionary New Eco-Quarter in Singapore, perhaps even establishing itself as a green icon in the region.

The strategic partnerships between these three global powerhouses has led to dramatic, vibrant and refreshing concepts such as South Beach, which will undoubtedly propel Singapore into its next lap of economic development and evolution to become a truly global city. In leveraging on the strengths of each partner to bring the best global brands to Singapore, South Beach will stand tall as an emblem of economic and business possibilities for Singapore.

CDL is a leading listed developer in Singapore, with over 40 years of experience. It has been helping to transform the landscapes of Singapore, setting new benchmarks of perfection, pioneering new lifestyle concepts and developing projects that display exceptional quality and standards. Some of its recent high profile developments include The Sail @ Marina Bay – one of the tallest residences in the world, One Shenton, The Oceanfront @ Sentosa Cove and the exclusive St. Regis Hotel and Residences. CDL is one of Singapore’s biggest landlords commanding over 4 million square feet of lettable office, retail, industrial and residential space island-wide. The CDL Group also has real estate investments in Moscow,
Thailand, Japan, South Korea and China.

CDL’s experience in hotel development and management has been global and extensive. Its Londonlisted subsidiary Millennium & Copthorne Hotels plc owns and manages over 100 hotels in 18 countries globally including the Millennium Biltmore in LA and Millennium Gloucester in London Kensington. The listed CDL Hospitality Trust is also the largest hotel owner in Singapore with over 2,300 rooms.

Mr Kwek Leng Beng, Executive Chairman of CDL, said, “The Government has strategically positioned Singapore as a global city to live, work and play. We are now starting to enjoy the fruits of this foresight and have successfully attracted high profile events such as the upcoming Formula One Grand Prix next September and the rolling out of the two mega-scale integrated resorts. With continued growth of the economy, vigorous job creation and attraction of foreign talent, Singapore is indeed making a dramatic transformation into an energetic and dynamic city in Asia-Pacific. Naturally, this has attracted global investors to make serious investments in Singapore. Singapore’s investment magnetism is illustrated no
better than by the investment of Dubai World and Elad Group in South Beach.”

Dubai World, holding company for Istithmar Group, has an extraordinary global portfolio such as luxury hospitality investments like Kerzner International Hotel, Atlantis, The Palm, Dubai, Mandarin Oriental, New York and IHI Europe PLC. Their commercial properties include Park Avenue, New York and Trafalgar Square, London, with retail investments such as the famous Barneys New York and Loehmann’s among others. With such extensive and strong credentials in investments all over the world, Dubai World’s wide-ranging experience and resources will be invaluable to help shape South Beach into a spectacular development.

His Excellency Sultan Ahmed Bin Sulayem, Chairman of Dubai World, the holding company for Istithmar Group, said, “In our quest for excellence, we always seek to partner with the best and the most reputed business partners in different business arenas worldwide. By joining hands with global conglomerates,we are sure to utilise our collective expertise in developing a state-of-the art project that would be pivotal in the development and growth of the Singapore economy, particularly in the tourism, real estate and hospitality sectors and in creating numerous employment opportunities. This project, like any other venture by Dubai World, would clearly reflect our strategy of making the places we operate in better environments for living and working. Meant to be an Iconic eco-friendly structure, the South Beach will be a testament of our commitment to promoting green initiatives around the globe.”

Similarly, the Elad Group is one of the leading privately owned real estate companies headquartered in North America with an outstanding track record for creating value through defining new construction and the restoration of magnificent landmark properties. It is presently moving forward with the second largest development in the world, the 16 million square foot Plaza Las Vegas. In addition to an elegant 7-star Plaza branded resort hotel, the extraordinary mixed-use development on a superb 35-acre site, the last available on The Strip, will also contain luxury residences, and a spectacular casino, spa and convention
centre. It will be the first of the highest end Plaza branded developments in restored landmarks and magnificent new structures in key cities in North America, such as Boston, Washington, DC, Los Angeles and San Francisco, and around the world, such as Paris, London, Singapore, Shanghai, Tokyo and Rome. The broad spectrum of Elad’s reach and experience in creating the highest end residential, hotel and mixed-use developments will be invaluable in assuring the highest standards of luxury and elegance in the creation of the south beach complex.

Prime among Elad’s high profile projects is the US$400 million lobby to roof renovation of the celebrated landmark Plaza hotel in New York City. The iconic castle on the park is being restored to its 1907 glory and will continue to house the 7-star hotel, exclusive residences as well as a retail segment offering only high-end boutiques and restaurants, making it a “must-visit” destination for New Yorkers and tourists alike. Other key New York projects include the restoration of the O’neill building, the restoration and conversion of the Grand Madison and 21 Astor Place. In Los Angeles, Elad is developing the Carlyle, a luxury high rise condominium with commanding 360 degree views on the last such available site on the
famed Wilshire corridor. Elad’s portfolio of prime residential and commercial properties also extends to numerous other key cities across North America.

“We have come from different parts of the world to this global economic hub and tourist destination to join forces with the best talent in Singapore to create a landmark residential, commercial, retail and hotel complex at the strategic crossroads of the Civic District and Marina Centre,” said Miki Naftali, President and CEO of Elad Group. “Our partnership is based on complementary strengths, rooted in an understanding of the region and driven by a passion to achieve excellence in design, a defining standard for ‘green’ architecture and unparalleled luxury and service. We are signing on for a journey that will build
on the area’s great tradition and fulfil its limitless potential,” he said.

While each of all three partners brings to the table renowned hospitality brand names, the South Beach JV Consortium will remain open to evaluating other premium international brands and operators outside their combined portfolio. The consortium will jointly decide on the best combination and most appropriate brand and concept that would complement the overall concept and enhance the value of the project.

The Consortium intends to unveil South Beach on the global stage at MIPIM in March next year, as a key development under the Singapore Pavilion. The consortium will be leveraging on the opportunity to engage with international investors at MIPIM, and has confirmed its participation in this premier international real estate summit that is held annually in Cannes, France. In 2007, MIPIM saw the participation of over 2,500 companies in the exhibition, with a visitorship of more than 26,000 delegates from over 80 countries across the globe.
_____________________________________________________________________________

About City Developments Limited (CDL)

A property pioneer since 1963, City Developments Limited (CDL) is a listed international property and hotel conglomerate involved in real estate development and investment, hotel ownership and management, as well as the provision of hospitality solutions.
With a global presence in over 20 countries spanning Asia, Europe, North America and Australasia, CDL has more than 250 subsidiaries and associated companies together with 5 listed companies on notable stock exchanges.

Backed by a track record of some 20,000 luxurious and quality homes to its name, CDL’s properties are synonymous with prestige, good value, outstanding quality and a choice investment
.
CDL is one of the biggest landlords in Singapore with over 4 million square feet of lettable office,industrial, retail and residential space. It also owns one of the largest land banks amongst private developers with almost 4.5 million square feet that has the potential of being developed into more than 9 million square feet of gross floor area.

CDL strongly advocates a “Safe and Green” culture and has strict adherence to its Environmental, Health and Safety (EHS) policy which was instituted in 2003. CDL was the first private property developer in Singapore to be awarded the ISO 14001 (Environmental Management System) certification by the Building and Construction Authority for its commitment to raising environmental standards in its projects and incorporating eco-friendly features into its developments. CDL also received the OHSAS 18001 (Occupational Health and Safety Management System) certification for establishing an EHS policy to monitor the environmental impact of its operations and improve workplace safety.

Millennium & Copthorne Hotels plc (M&C), the London-listed international hotel arm of CDL, is a dynamic hotel group that owns and operates over 100 hotels in 18 countries around the world, with a number of them being located in major gateway cities. In Singapore, CDL Hospitality Trust is the largest hotel owner with over 2,300 rooms. CDL also has a dedicated subsidiary, the Hong Konglisted City e-Solutions Limited, which provides technology solutions for the global hospitality industry.

Beyond its business operations, CDL believes in giving back to the community. It remains
committed to an extensive range of Corporate Social Responsibility (CSR) programmes aimed at caring for the needy, raising awareness about the environment, nurturing the youth and promoting the arts. It has been listed on the coveted FTSE4Good Social Responsibility Index since 2002 and was conferred the prestigious Corporate Citizen Award by the National Volunteer & Philanthropy Centre in 2006.

About Dubai World

Dubai World is a holding company that manages and supervises the portfolio of businesses and projects for Dubai Government and works towards making Dubai the leading hub for the commerce and trading industry.

Dubai World contributes to the rapid economic growth of Dubai across a wide range of strategic industry segments ranging from Nakheel’s unique real estate concepts; the iconic development of The Palm, DP World the third largest port operator in the world to segments as diverse as Investments, Leisure and Financial Services. In the past decade, creation of wealth has undergone a paradigm shift, with greater importance placed on acquisition and application of knowledge as the primary engine for economic growth all over the world.
Our business strategy is driven by a combination of acquisition and investment in diverse fields and is designed to deliver real, measurable results to Dubai World’s business units and investment partners. A strong, visionary leadership has ensured that our ideas have always been innovative,ambitious and well thought out.

Our corporate philosophy is based on strong fundamentals, best ethical practices, integrity, healthy relationship between the management and workers and continuous interaction with stakeholders and partners.
Dubai World is firmly committed to make every country and community in which it operates a better place to live and work, knowing that the ongoing vitality of our host nation and local communities has a direct impact on the long term health of our business.

About Elad Group

The New York headquartered Elad Group is a leading international developer and owner of prime real estate including an impressive collection of luxury residential properties valued at more than US$7 billion. The highlight of Elad’s portfolio—of any portfolio—is New York’s iconic Plaza Hotel which is completing a US$400 million lobby to roof renovation restoring the storied landmark to its 1907 glory. The Plaza has achieved remarkable success. The Plaza Residences have recorded the highest sales prices in the United States - more than US$6,500 per square foot. The 282 room 7-star hotel will be opening shortly and the high end 160,000 square foot Plaza Retail Collection will be opening early 2008.

Elad also purchased the best, last remaining site on The Strip in Las Vegas and plans a colossal US$7 billion mixed-use residential, hotel, casino, resort, spa and convention complex on 35 acres.

With some 16 million square feet of space, it is the second largest development in the world. The Plaza Las Vegas will be built on the former site of the frontier hotel which was demolished by implosion in a ceremony in November. The implosion drew many noted guests and was televised live and broadcast around the world and seen by more than 35 million viewers.

Elad will be introducing the Plaza brand to Las Vegas and all that it signifies in terms of defining elegance, luxury and lifestyle. The Plaza Hotel Las Vegas, opening in 2011, is the first planned expansion of the Plaza brand to great cities throughout the world, including Boston, Los Angeles, Paris, London, Singapore, Tokyo and Shanghai. Elad is also developing the last high-rise luxury condo on the world famous Wilshire corridor in Los Angeles, and with City Developments Limited, The Futura, a super luxury high rise residential condominium on the periphery of Orchard Road,Singapore’s Fifth Avenue.

Elad owns additional quality residential and commercial properties in Europe, Asia and North
America. It is the largest private real estate company in Canada. As a growth enterprise investing in high quality residential and commercial real estate, Elad’s holdings are primarily located in the key Canadian markets of greater Montreal, Toronto and Ottowa. The portfolio comprises more than 20,000 rental apartments in Toronto and Montreal, as well as 8 million square feet of commercial buildings and strip malls. In addition, Elad is currently developing more than 8,000 new residential units in key locations. The company also has a major presence in Florida with a spectacular collection of more than 4,000 residential units with a market value in excess of US$1billion.

Source : Business Times - 05 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com

Singapore Govt sees potential in Rochor area remake

Singapore Govt sees potential in Rochor area remake

Plans not firm but it intends the area to complement Marina Bay development
By UMA SHANKARI
(SINGAPORE) The government intends to remake the Ophir Road/Rochor Road corridor into a commercial centre that will complement the Marina Bay area, Minister of State for National Development Grace Fu said yesterday.
‘This area could be developed as a mixed-use corridor featuring offices, hotels and other supporting uses, connecting the established commercial node at Marina Centre to the Bugis area.’

- Ms Grace Fu

‘This area could be developed as a mixed-use corridor featuring offices, hotels and other supporting uses, connecting the established commercial node at Marina Centre to the Bugis area,’ Ms Fu said. ‘The corridor will inject vibrancy and activities into this part of the city.’

Ms Fu was speaking at the signing of the building agreement for a 3.5-hectare mixed-use site along Beach Road.

The Urban Redevelopment Authority (URA) awarded the site to Singapore-listed City Developments and its foreign partners Istithmar (part of the Dubai World Group) and Elad Group in September for some $1.69 billion.

‘The government intends to build on the momentum by developing the land parcels along Beach Road and at the Ophir Road/Rochor Road corridor,’ Ms Fu said.

The URA will release more details of the plans for the Beach Road/Ophir Road corridor early next year, Ms Fu said, but she did not provide a timeline for the development of the area.

The authorities could partner both local and foreign developers to draw up development plans, she said.
In fact, there is increasing foreign interest in real estate investment in Singapore, Ms Fu said.

Foreign real estate investment in Singapore has come to about $8.8 billion for the year-to-date, Ms Fu said. The amount is an increase of 66 per cent over the 2006 total of $5.3 billion.

The amount also represents a huge jump over the amount of foreign real estate investments seen in 2005 and 2004. For 2005, foreign investment came to $4.1 billion and in 2004, the figure was only $800 million.

‘This dramatic increase reflects the optimistic economic outlook and development potential in Singapore,’ Ms Fu said.

The Beach Road project marks the first participation of Istithmar and Elad, two major international investors, in a government land tender in Singapore.

Dubai World - which is the investment holding firm of the Dubai government - and Elad Group each have a one-third stake in the Beach Road project.

Together with CityDev, the consortium will invest some $2.5 billion in all to build the project, CityDev said yesterday. The amount includes the land cost of $1.69 billion.

Dubai World is merging its two subsidiaries Nakheel and Istithmar Real Estate into a single unit as it looks to increase its property portfolio in Asia, Yu Lai Boon, the group’s chief investment officer, said. He added that the group hopes to invest some US$50 billion in Asia over the next 10 to 15 years.

Dubai World is set to raise $300 million with its first listed property trust by June next year.

The real estate investment trust, which will be based on Dubai World’s residential properties in the United Arab Emirates, will be listed in Dubai and have a secondary listing in either London or Singapore.
Source : Business Times - 05 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com

2008 Singapore seen as year of mass market homes

2008 Singapore seen as year of mass market homes

Developers, consultants predict 10-20% hikes for this segment in 2008, high-end gains seen tapering to 0-10%
By KALPANA RASHIWALA

(SINGAPORE) As the year draws to a close, developers and property consultants are cautiously optimistic about prospects for the Singapore property market next year despite the US sub-prime mortgage crisis and rising oil prices.

Full-house: Minister for Trade & Industry Lim Hng Kiang speaking at Redas’ 48th anniversary dinner last night, where he was the guest-of-honour.
For the residential sector, they expect the action to be concentrated in the mass market next year, after the stellar increases in high-end home prices this year.

They also generally expect the authorities to adopt a more measured approach to the Government Land Sales programme in the first half of next year, given the relatively thin bidding seen for most state sites recently.

CB Richard Ellis chairman (Asia) Willy Shee predicts high-end home prices will likely remain more or less at current levels next year - after a nearly 50 per cent price gain this year - on the back of new supply coming into the market. Prices of mass-market private homes are likely to appreciate 10 to 15 per cent in 2008, after rising about 25 per cent this year, he added. ‘I think building costs have already gone up over 30 per cent so far this year,’ he says.

Similarly, Ho Bee Investment executive director Ong Chong Hua says: ‘We cannot see the same magnitude of price growth in 2008 that we’ve seen in the past two years. It’s not sustainable. We’ll see more steady growth next year.’
‘If the external forces turn out to be quite benign, the Singapore property market recovery will continue. But if the external forces turn out to be malignant, then all bets are off.’

- Knight Frank managing director Tan Tiong Cheng

Overseas Union Enterprise chief executive officer Thio Gim Hock says: ‘High-end prices will at least maintain or go up by 5 to 10 per cent, while the mass market will rise between 10 and 20 per cent in 2008.

‘By next year, sub-prime will be behind us and confidence will recover again.’

Mr Ong predicts a 10 per cent price gain for both upmarket and mass-market homes next year. ‘The increase in mass market home prices will be very measured until the sub-prime cloud clears,’ he says.

Knight Frank managing director Tan Tiong Cheng expects the fate of the high-end market to be determined by foreign investors (and their reading of the global economic outlook) as well as the extent to which those who’ve sold their prime district homes through en bloc sales buy replacement homes in the high-end of the market.

Hong Leong Group executive chairman Kwek Leng Beng says: ‘Even in a period of consolidation, the market will come back. The fundamentals of real estate in Singapore are still very good. There’s still upside for mid-range home prices, which are still below their peaks.’

Knight Frank’s Mr Tan said: ‘Fundamentally, Singapore is in a very sound position, property-wise. But what will determine the state of the market will be external events, especially sub-prime, oil prices and the US economy. If the external forces turn out to be quite benign, the Singapore property market recovery will continue. But if the external forces turn out to be malignant, then all bets are off.’

Mr Kwek stresses that because developers have enjoyed good profit margins over the past three to four years, they are now in a strong financial position and can afford to take longer to sell their projects.

After the current lull, Knight Frank’s Mr Tan expects developers to resume launches next year when the market’s direction becomes clearer. ‘They’re likely to start launching closer to Budget time, when the Government gives its official reading of the Singapore economy,’ he says.

Chesterton International’s head of research and consultancy, Colin Tan, reckons that high-end residential property will weather any market downturn better than the mass market, as luxury homes typically offer a more resilient long-term investment proposition because of their superior location. ‘Someone who buys a high-end home can always rent it out, even if he has to accept a lower rent,’ he says.

Market expectations have been running so high that the authorities will step up the Government Land Sales Programme to stem rising property prices and rents. However, some property players suggest the uncertainty may make the authorities think again. ‘Supply will continue to be released mostly through the reserve list, but some new housing sites in the city may be introduced in the confirmed list, as developing the Marina Bay area and rejuvenating the existing CBD seem to be a priority,’ Knight Frank’s Mr Tan suggests.

At Ho Bee, Mr Ong says that recent bidding at state tenders shows ‘developers are re-calculating the risk premium because of uncertainty created by sub-prime’.

‘(The) government will be careful about the confirmed list,’ he says.

Source : Business Times - 05 Dec 2007

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Industrial output gauge climbs on strong exports - Singapore

Industrial output gauge climbs on strong exports - Singapore

By Erica Tay, Economics Correspondent

FACTORY orders continued to pour in for local manufacturers last month, despite the spectre of a global economic slowdown.
This was among the key findings of a forward-looking indicator called the Purchasing Managers’ Index (PMI).

Strong export orders pushed the PMI from 52.9 in October to 53.8 last month, the sixth straight month that the index had gained.

Compiled from a monthly survey of purchasing executives at more than 150 manufacturing companies, a PMI reading above 50 indicates an expansion in the industrial sector.

The overall new orders index was 57.6, the highest reading since August 2004.

Besides more orders, factories also reported higher output last month, the index indicated.

Despite entering its ninth month of export decline, the electronics industry, according to the PMI, appears to be in the pink of health.

The electronics sector PMI was 53.7, indicating a 16th month of expansion, buoyed by rising orders.

The Singapore Institute of Purchasing and Materials Management produces the report.

Its executive director, Ms Janice Ong, said the PMI showed that ‘the local manufacturing economy is likely to be on a path of growth towards the end of the year’.

There was a concern earlier that demand for overall new orders in the overseas market was slowing down, she noted.

‘However, it may not be the time to pop the champagne yet, given that the United States economy may well experience a sharp slowdown due to the sub-prime problem, deteriorating housing demand, as well as escalating oil prices,’ Ms Ong added.

Manufacturers must also contend with rising input costs and supply shortages, which will affect their bottom lines, she said.

Source : Straits Times - 05 Dec 2007

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Easing in property rally can be good: Developers - Singapore

Easing in property rally can be good: Developers - Singapore

By Joyce Teo & Tan Hui Yee

PROPERTY developers are so rushed off their feet that they say the idea of the United States sub-prime crisis taking some froth out of the exuberant market can only be good.
CapitaLand’s chief executive, Mr Liew Mun Leong, said in Ho Chi Minh City yesterday that market confidence has been affected a little by the sub-prime issue but a slowdown may not be bad.

‘If the economy moderates, the property market will moderate… It is not necessarily a bad thing,’ he said.

‘Sometimes you need a little bit of slowdown,’ he added. This is so that businesses can be sustained.

Mr Liew also said that developers will probably not pay bumper high prices for collective sale sites and that supply volume may slip.

However, prices have been holding and he does not see them falling next year.

A similar note was struck by Mr Simon Cheong, the president of the Real Estate Developers’ Association (Redas).

He told the Association’s 48th anniversary dinner last night that the build-up of new projects has left the industry a little breathless.

‘We are now the victims of our own success. Our biggest worry is now rising costs, shortage of construction materials and inadequate skilled labour,’ said Mr Cheong at the Ritz-Carlton Millenia Singapore hotel.

He added that developers share the Government’s concerns about rising exuberance in the market and backed its efforts to apply a touch of the brakes.

Mr Cheong was also quick to add that it has taken almost 10 years for the property market to turn around.

‘Redas is of the view that it is difficult to micro-manage, especially in a global context where the flow of funds into Singapore property is driven by a bigger picture than just short-term opportunistic buy-ins,’ he said.

Singapore is no different from other major gateway cities, where prime real estate commands premium rents, he added.

Trade and Industry Minister Lim Hng Kiang, who was the guest-of-honour, said rising costs are a challenge that accompanies the growth in all parts of the property market.

The Government, he reiterated, is ensuring there will be a sufficient supply of office, residential and hotel space.

Mr Cheong also said that Redas has created a foreign investment committee, to be chaired by Hongkong Land director Robert Garman, to encourage foreign companies to come to Singapore and stay invested.

He warned that developers should take stock of the storm brewing globally as they respond to local opportunities.

‘Rising oil prices, a weakening US dollar, the sub-prime crisis and occasional shocks in the supply of construction materials cannot be taken too lightly.’

Source : Straits Times - 05 Dec 2007

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CDL chief won over by Norman Foster’s eco-friendly approach - Singapore

CDL chief won over by Norman Foster’s eco-friendly approach - Singapore

By Jessica Cheam

GREEN ALL THE WAY: South Beach, designed by acclaimed architect Norman Foster, will incorporate comprehensive, cutting-edge eco-friendly features, such as an ‘environmental filter’ canopy that will cover the open spaces. — PHOTO: CITY DEVELOPMENTS

IT ALL began with an inspiring speech by celebrated architect Norman Foster two years ago in Monaco.
City Developments (CDL) executive chairman Kwek Leng Beng was there to hear it and vowed that one day he would team up with the renowned Briton, who designed Singapore’s Supreme Court.

‘I was fascinated by his speech on creating eco-friendly buildings. I thought to myself that, someday, I would work with him as he has great in-depth knowledge and expertise, which complement CDL’s green philosophy,’ said Mr Kwek.

That dream was realised yesterday when CDL and two partners - Dubai World’s Istithmar and United States-based Elad Group - signed a contract to build the landmark South Beach project.

The 3.5ha site with a gross floor area of 146,827 sq m sits on an entire block bounded by Nicoll Highway and Beach, Bras Basah and Middle roads.

Designed by Lord Foster’s architectural firm, Foster & Partners, South Beach won over the authorities with a design that incorporated comprehensive, cutting-edge green features without compromising on aesthetics.

While CDL’s $1.69 billion bid was not the highest, the group clinched the deal based on ‘an impressive use of green technologies’ and striking designs, said Minister of State for National Development Grace Fu yesterday.

South Beach will be made up of two towers, 45 and 42 storeys high, with slanting facades that will allow them to maximise ventilation and to channel air flow to ground-level spaces. A huge, wave-shaped ‘environmental filter’ canopy will cover the open areas that integrate the towers with the low-rise conserved buildings.

CDL, which already has several Green Mark awards under its belt, will be gunning for the highest accolade - the platinum Green Mark - with this project, said Mr Kwek.

The Green Mark scheme, launched in 2005, rates buildings for their environmental impact and performance.

South Beach will cost more than $2.5 billion to build, including the land price, and will be completed in 2012.

Construction will begin next year.

Source : Straits Times - 05 Dec 2007

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CapitaLand to double number of home built in Vietnam

CapitaLand to double number of home built in Vietnam

By Tan Hui Yee, Housing Correspondent

HO CHI MINH CITY - PROPERTY giant CapitaLand, which entered Vietnam’s booming residential market just last year, is gunning to be among the country’s top five foreign developers in the next three years.
It aims to double the number of homes it is building in Vietnam from 2,800 now to a projected total of almost 6,000 within the three-year period.

The Singapore firm also aims to move into other fields such as office and retail space as well as the leisure, entertainment and convention sectors.

CapitaLand, a major real estate investment trust (Reit) player, is also studying the possibility of setting up ‘incubator funds’ to buy properties in Vietnam to inject into Reits. Such a fund is likely to boast about US$300 million (S$435.2 million) in assets if it were to be set up.

Speaking to the media in Ho Chi Minh City yesterday during a trip to scout for new development sites, CapitaLand president and chief executive Liew Mun Leong said he was upbeat about the group’s prospects in Vietnam.

The country’s booming economy and fast-emerging middle class have caused demand for new homes to grow and residential prices to surge by 50 per cent or more this year.

CapitaLand is pitting itself against developers from markets such as South Korea, Taiwan and Japan, as well as Singapore’s Keppel Land and GuocoLand, among others, for a slice of the growing pie.

Within Ho Chi Minh City - where CapitaLand’s four upcoming developments are sited - the current supply of new homes is expected to meet only one-third of the demand for about 60,000 units in the next three years.

CapitaLand’s maiden housing project, The Vista - which is near the Saigon River and is being developed with Vietnamese partners - was launched earlier this year to an enthusiastic response.

A total of 550 out of the 750 apartments there have been sold so far, at prices ranging from US$1,200 per sq m to US$3,200 per sq m. Another 1,800 apartments and 300 villas are in the pipeline.

Mr Liew was unfazed by the possibility that cooling measures may be introduced by the Vietnamese government to control the rise in property prices.

In fact, he welcomed such measures as it would limit speculation and help CapitaLand in the long haul.

Meanwhile, the company is looking for suitable sites to build an equivalent of Singapore’s office development, Capital Tower, and a Raffles City mall in Vietnam.

It is also studying the possibility of developing a resort on one of the many islands off Vietnam, said Mr Liew.

The developer, which was unsuccessful in its bid to develop the integrated resorts in Singapore, may even team up with its bid partners Kerzner International and MGM Mirage again for a future Vietnamese development.

Source : Straits Times - 05 Dec 2007

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Record price for Singapore coffee shop means higher rents

Record price for Singapore coffee shop means higher rents

Stallholders living with lower margins as soaring rates, competition bite

By Fiona Chan, Property Reporter and Kua Zhen Yang
STILL WAITING: Renovation has yet to generate more business for Jurong East’s VariNice coffee shop. — MUGILAN RAJASEGERAN

THE record price recently fetched for a Jurong East coffee shop is putting pressure on its stallholders in the form of rocketing rents.
Since new owner Koufu paid $12 million for the large property two months ago, rents at the VariNice coffee shop at Jurong East Street 132 have shot up.

They are now close to those at food courts in glitzy malls, said property experts.

Stallholders grappling with higher rents also lost a week’s business when VariNice was closed for renovations following Koufu’s purchase.

The 4,700 sq ft coffee shop is now clean and sparkling, but tenants say the facelift has yet to generate more business.

Some have raised food prices to cover the rent hike, but others are afraid of driving customers to the competition. There are four other coffee shops in the vicinity.

VariNice has 13 lots. Some are taken up by a single stall paying about $6,000 a month. Other lots are split between two operators, each paying about $3,000. This gives Koufu an annual rental yield of 7 per cent to 8 per cent.

The rents compare with $5,000 to $8,000 for a typical food stall in a ‘good mall’ such as Marina Square, said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.

Madam Ren Huai Zhen, who runs a zi char - cooked food - stall at VariNice, is now paying $6,000 a month, $1,000 more than before.

‘Everything became more expensive, except the price of our food,’ she told The Straits Times yesterday.

‘We can survive, but our profit margins are low.’

Mr Xue Mingshou, who runs the Pin Wei Fishball Noodles stall, said he raised the prices of some dishes but had to lower them again when customers did not bite.

‘Competition here is very stiff,’ he said. ‘If I can break even, it’s very good already.’ His rent has gone up by $400 to $3,200 a month.

Mr Xue shares his lot with a duck rice stall, which pays $3,000 in rent and sells about $700 worth of dishes a day.

‘Your stall must sell really nice food in order to survive. There are at least 50 other stalls in the area,’ said the owner, who wanted to be known only as Mr Tan. But he called the rent ‘reasonable’.

Indeed, just next door to VariNice is an S-11 coffee shop, where rents are $7,000 to $8,000 a month.

Property agents say rents at prime coffee shops have escalated in recent months, and it is not uncommon for them to rival those in air-conditioned food courts.

‘In the prime areas such as Geylang, Toa Payoh, Bishan and Bukit Batok, fixed rents can go up to $6,000 or $7,000 a month,’ said Mr Eric Cheng of HSR property group.

Some coffee-shop chains even collect rent on a profit-

sharing basis, which means base rents could be $1,000 a month but stallholders may end up paying five figures if sales are good, he added.

On average, however, monthly coffee-shop rents range from $4,500 to $7,500. In low-end properties in the outskirts, they can go as low as $1,200, said Mr Cheng.

Clearly, there are limits to how much coffee-shop rents can be raised before stallholders are forced to pack it in. This may be why more expensive coffee shops on the market - three, in Yishun, Tampines and Bukit Batok, are said to be going for $15 million each - have yet to find takers.

So for VariNice in Jurong East to charge $6,000 in rent ‘is not excessive’, said Mr Ku of Savills. ‘Foot traffic is very high, and it is near an interchange MRT station, a library and business parks.’

Source : Straits Times - 05 Dec 2007

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Birthday cake made 23 family members sick in Singapore

Birthday cake made 23 family members sick in Singapore

They were among the many who were affected by contaminated chocolate cakes

By Lee Hui Chieh
STOP WORK: Mr Mohd Noor (right), a production manager at Prima Deli, says its food production operators have to suit up when handling food items. But two of the bakery’s workers have tested positive for the salmonella bacteria and the authorities have shut down its factory pending investigation.

IT WAS a birthday celebration one family will never forget - for all the wrong reasons.
Of the 30 family members at the gathering, 23 of them suffered severe food poisoning after eating the birthday cake, a 1.5kg salmonella-laced chocolate cake from bakery chain Prima Deli.

Among those struck down was an 11-month-old baby, who was so ill he had to be admitted to the National University Hospital for three days.

The rest suffered fever, diarrhoea, shivering and even breathing difficulties, in between repeated visits to their family doctors.

Miss Anizah Yusof, 19, bought the cake from a Prima Deli franchise in Jurong Point for the Pasir Ris Park picnic, held two Sundays ago to celebrate the birthdays of her mother and her niece.

She said her four-day illness was the worst episode of diarrhoea she has ever had.
‘I was also very giddy and couldn’t walk properly, so I just lay down on the bed. It was also very difficult to breathe.’

She and her relatives were among 109 people here who, over the last two weeks, have come down with food poisoning from contaminated chocolate cakes baked by Prima Deli.

Of these, eight people were hospitalised, but have since been discharged.

Two of the bakery’s workers have tested positive for the salmonella strain that infected over 100 customers.

The authorities have since ordered a recall of all its products, and shut down its manufacturing facility until it is shown to have cleaned up its act.

The 39 franchises selling its cakes and bread will also be shut down for at least a week.

The cakes appear to have been contaminated, probably through poor hygiene, by a type of bacteria known as salmonella enteritidis.

It is usually spread through food made from infected animals, or food which has been exposed to the stool of infected people.

Those infected experience symptoms such as fever, diarrhoea, vomiting and stomach pains, usually over four to seven days.

So far this year, 1,088 people here, including the latest victims, have been afflicted by food poisoning, caused by various bacteria and viruses such as norovirus and campylobacter. None has died.

This latest incident came to light when an affected family contacted the National Environment Agency, which regulates food handling hygiene, on Nov 23.

The agency informed the Health Ministry, which began investigations after more complaints of the cakes surfaced.

Investigations are still ongoing, but evidence suggests that food handlers may have spread the bacteria to the cakes.

Consumers should throw away any food from Prima Deli.

People should also wash their hands before preparing food, cook food thoroughly before eating it, and avoid mixing or storing raw food with cooked food.

Those with enquiries can call the Health Ministry on 1800-225-4122 or the Agri-Food and Veterinary Authority on 1800-226-2250.

Miss Anizah said her family members are all back on their feet, and are now looking to see if they can get some compensation.

She called Prima Deli yesterday, and has been asked to submit the receipts of their medical treatment for consideration.
109

Number of people infected in the latest food poisoning outbreak caused by salmonella enteritidis. Most of them have recovered.
8

Number of people hospitalised, three of whom are children. All have since been discharged. Average length of hospitalisation: three to four days.
1,088

Total number of people hit by food poisoning so far this year. They were infected by different bacteria and viruses including salmonella, norovirus and campylobacter.
Source : Straits Times - 05 Dec 2007

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Singapore Bakery’s retail outlets: Closed until Tuesday

Singapore Bakery’s retail outlets: Closed until Tuesday
Bakery’s factory: Closed till futher notice

Recall extended to bread and other cakes; Prima initiates disinfection of factory premises

By Diana Othman & Maria Almenoar
TO SHUT: All 39 of the Prima Deli franchises islandwide will be closed from today. — ST PHOTO: LAU FOOK KONG

TWO food handlers from Prima Food have tested positive for the bacteria which infected at least 109 people in the latest food poisoning episode here.
The cases have been traced to chocolate cakes from the company’s Prima Deli bakery outlets, and the authorities have broadened an initial recall on such cakes to include all bread, pastries and cakes made by Prima, sold at 39 outlets islandwide.

The company has also been ordered to stop operations at its Keppel Road factory pending investigations, and its franchises will shut for at least a week.

Prima had to ’stop all production as a precautionary measure as investigations are still ongoing to establish the source of contamination’, said the Agri-Food and Veterinary Authority (AVA) yesterday.

At Prima’s factory yesterday, its 100 workers were sent home as operation ‘disinfect and sanitise’ swung into action. The process, which involves stripping away all surface materials and wiping all surfaces such as ceilings, floors, walls and production equipment with sanitiser concentrate, is likely to take two days, said a Prima spokesman.

AVA said, however, that the production facility will be allowed to reopen only when its inspectors have given it the thumbs up. AVA oversees food safety for both primary and processed food sold in Singapore.

With the Prima Deli outlets left with empty shelves, its management said it will close them from today until Tuesday.

Investigations into the food poisoning are continuing as the Ministry of Health (MOH) is still conducting tests on various samples from the factory.

The outbreak, first reported to MOH on Nov 23, eventually saw 109 people falling ill after eating Prima Deli’s chocolate cakes.

Eight were hospitalised but have since been discharged. They tested positive for salmonella enteritidis, which causes symptoms such as fever, diarrhoea, vomiting and abdominal pain.

Initial tests showed that the salmonella bacteria was a likely culprit.

Preliminary results singled out an employee who was discovered to be a carrier of the salmonella bacteria. Carriers show no symptoms of food poisoning, but can pass it on through stool.

The employee had handled butter cream, an ingredient used as a layer of cream in between sponges of the cakes. The cream is not cooked, unlike the cake itself, where baking kills the bacteria.

About 400 chocolate cakes have been recalled and disposed of since last Friday.

Ms Pansy Wong, deputy general manager of Prima Food, said this was the first such incident in the company’s largely clean history.

Its workers have to wear a standard suit consisting of a long-sleeved shirt and trousers, a long plastic tunic, plastic gloves, a face mask and even a cloth headgear.

They also have to disinfect their hands by washing, scrubbing their nails and applying hand sanitisers.

The company is sending all its workers for salmonella testing, including the 50 involved in cake-making.

It has also created a hotline on 6277-7171 for affected customers.

The 39 Prima Deli franchises were told last night that they would be shut for at least a week.

Miss Serene Oon, manager at a Clementi West outlet estimated that she would lose more than $5,000.

‘What to do? We have nothing to sell. We have no choice but to close,’ she said.

The owner of the Centrepoint outlet, Mr Pal Singh, said he would only lose a ‘few hundred dollars’, as most of his sales were through cake orders.

He said he would try to stay open so that he can explain the situation to customers.

‘It’s not something I’m going to lose a night’s sleep over,’ he said.

Source : Straits Times - 05 Dec 2007

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ComfortDelGro to increase S’pore taxi fares

ComfortDelGro to increase S’pore taxi fares

By Christopher Tan, Senior Correspondent

IT IS official. Taxi fares are going up.

Taxi giant ComfortDelGro Corp has notified the Public Transport Council (PTC) about an imminent fare increase. The PTC could not say more.

Commuters can expect to pay more from as early as the week before Christmas, as taxi operators have to inform the council at least two weeks before any