| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| « Dec | Feb » | |||||
| 1 | 2 | 3 | 4 | 5 | 6 | |
| 7 | 8 | 9 | 10 | 11 | 12 | 13 |
| 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| 21 | 22 | 23 | 24 | 25 | 26 | 27 |
| 28 | 29 | 30 | 31 | |||
Carlton now part of Worldhotels network - Singapore
It is the third S’pore hotel to do so, after Goodwood and York
By GEOFFREY LEE
(SINGAPORE) From tomorrow, Carlton Hotel Singapore will join the prestigious Worldhotels ‘First Class Collection’ marketing network.
Worldhotels is a European-based global hotels group bringing together individual and independent hotels and regional hotel brands. With an existing base of about 500 hotels worldwide, this partnership with Carlton adds a landmark property in Singapore to Worldhotels’ 78 other members in the Asia-Pacific region.
This is the group’s third tie-up with a Singapore hotel, with Goodwood Park Hotel and York Hotel already on board as members.
Carlton Hotel Singapore’s general manager, Ronald Loges, said yesterday that the hotel was entering into the partnership at a time when Singapore was expecting a big influx of visitors.
He said: ‘The sophisticated needs of travellers within Asia-Pacific today and the latest developments in Singapore, ranging from the Singapore Flyer to the integrated resorts and Sports Hub, creates tremendous energy that will draw unprecedented numbers of visitors to this island.’
He said the partnership would enable Carlton, as an independent hotel, to compete with top international hotel organisations like the Hilton and Hyatt groups.
Apart from the Worldhotels partnership, Carlton is also developing a new Tower Wing at the corner of Bras Basah and North Bridge Road, scheduled for completion in late 2009.
The new wing will add 285 rooms to the current total of 630. The hotel also has 880 square metres of function space in a pillarless grand ballroom, and function rooms designed by the Hirsh Bedner & Associates interior design firm.
News of the expansion comes just less than a year after the Carlton group, in May 2007, emerged as the top bidder for a 99-year hotel site at Gopeng Street next to the Amara Hotel in the Tanjong Pagar area, where it intends to develop a new hotel.
Worldhotels (Asia-Pacific) vice-president Roland Jegge said that Carlton was strategically located, with the Suntec Singapore International Convention & Exhibition Centre just down one road, and the busy financial district minutes down another. The hotel is also just a five-minute walk from CityLink mall - Singapore’s largest underground shopping mall - and the City Hall MRT station, he added.
Meanwhile, Worldhotels is also understood to be in talks with Singapore Airlines regarding a frequent flyer partnership programme.
Source : Business Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Future leadership a concern for firms globally - Singapore
For many firms in Asia-Pacific, it is a primary workforce challenge: IBM study
By MATTHEW PHAN
COMPANIES worldwide are confronting their inability to cultivate future leaders, and nowhere is this frustration felt more strongly than in Asia-Pacific, according to IBM’s latest global study on human capital.
Three-quarters of firms responding to a survey by the information technology company felt future leadership was a concern. But in Asia-Pacific, the percentage rises to 88 per cent, the highest for any region.
‘Two groups are particularly vulnerable to growth constraints resulting from a lack of leadership,’ said IBM. These are firms operating in Asia-Pacific and companies in the industrial sector.
Almost half the respondents from Asia-Pacific said a lack of leadership capability was a ‘primary workforce challenge’.
In fact, ‘leadership at all levels is problematic’, IBM quoted a vice-president of human resources at a Singapore technology company as saying.
Similar issues are arising in the global industrial sector, which means firms struggle when they try to expand overseas.
Given this, many firms are trying to improve their in-house training, either by classroom training, mentorship schemes or rotations.
But it needs the cooperation of the whole organisation. ‘There is a noticeable reluctance by the releasing manager for individuals to rotate jobs - (there is a) fear of losing talent,’ IBM quoted another HR manager as saying.
IBM also said three key capabilities will affect a workforce’s adaptability.
The first is that firms must be able to predict their future skill requirements. Second, they need to identify and locate specialists. Third, they need to collaborate across the organisation, connecting groups from different divisions, time zones and cultures.
The first task does not sound easy, nor is it. Only 13 per cent of firms interviewed said they have ‘a very clear understanding of the skills they will require in the next three to five years’, according to IBM.
Firms believe they understand their current businesses, but are less sure of being able to predict skills needed for new or emerging markets. Pace of change is another factor - the half-life of knowledge is now 18 months, an executive at a European bank said, reported IBM.
Likewise, only 13 per cent of respondents felt they are ‘very capable of identifying individuals with specific expertise within the organisation’.
Many felt they could not ’systematically’ do this, and one financial services HR manager said it was more a matter of ‘who knows who’ and anecdotal information, said IBM.
As for the third task, only 8 per cent of respondents felt they were ‘very effective at fostering collaboration’. Technology was not the issue, rather, organisational silos, time pressure, and misaligned performance measures were the most common obstacles.
Besides skills management, firms can try less formal solutions, like online employee profiles, or informal interest groups, to promote collaboration, said IBM.
The survey covered over 400 human resource executives from 40 countries, from public, private and non-profit organisations ranging from under 1,000 to over 50,000 employees in size.
Source : Business Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
MMP Reit posts 15.7% rise in distributable income for Q4- Singapore
By WEE JUN KAI
MACQUARIE MEAG Prime Real Estate Investment Trust (MMP Reit) has reported a 15.7 per cent year-on-year rise in distributable income to $16.2 million for the fourth quarter ended Dec 31, 2007. The Q4 distribution brought 2007 full year’s distributable income to $59 million, up 7.5 per cent.
Distribution per unit (DPU) for the quarter rose 14.3 per cent to 1.68 cents, bringing full-year DPU to 6.19 cents, a rise of 6.9 per cent. ‘This is a result of our regional diversification strategy and focused asset management efforts,’ said Franklin Heng, CEO of MMP Reit’s manager Macquarie Pacific Star.
On an annualised basis, the latest distribution represents a yield of 6.06 per cent based on MMP Reit’s traded unit price of $1.10 on Dec 31, 2007. An increase in the valuations of MMP Reit’s portfolio of 10 properties raised group net asset value (NAV) per unit to $1.61 as at Dec 31, 2007, up 38.8 per cent from end-2006’s $1.16.
Gross revenue for Q4 2007 was $29.8 million, up 32.1 per cent year-on-year. This was due to higher rental rates from renewals, new leases and revenue from new acquisitions. Full-year gross revenue rose 14.6 per cent to $103 million. Net property income for Q4 rose 29.1 per cent to $22.1 million, despite higher year-on-year expenses. This brought full year’s net property income to $76.8 million, up 10.9 per cent. Mr Heng said: ‘As at Dec 31, 2007, our Singapore properties enjoyed full occupancy for retail space and 99 per cent occupancy for office space. The 79,100 square feet of office leases which expired in 2007 had average quarterly passing rents of $4.90 to $5.30 per square foot per month (psfpm) and these were renewed or contracted at average rents of $7.70 to $12.10 psfpm.
MMP Reit’s portfolio includes a 74.23 per cent strata title interest in Wisma Atria and a 27.23 per cent strata title interest in Ngee Ann City. In 2007, it acquired seven prime properties in Tokyo and a retail property in Chengdu in China, growing its asset portfolio to $2.2 billion.
The Reit said it continues to exercise prudent capital management by maintaining a low gearing and strong balance sheet. ‘Our gearing of 29 per cent is at a healthy level. To shield MMP Reit from interest rate volatility, 89 per cent of our debt is fixed and the average interest rate is 2.69 per cent. Interest cover is 4.4 times. The recent establishment of a $2 billion multi-currency medium term note (MTN) programme will provide additional sources of funding,’ said Mr Heng.
On MMP Reit’s outlook, Stephen Girdis, chairman of Macquarie Pacific Star, said: ‘MMP Reit has in the past year laid the foundations for strong organic growth for the next couple of years, through its maiden acquisitions in Japan and China, and its tenancy remix and asset enhancement initiatives for MMP Reits’s Singapore properties, Wisma Atria and Ngee Ann City.’
Source : Business Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
CDLHT Q4 distributable income up 83.4% - Singapore
Trust hopes to add Copthorne Orchid to portfolio this year
By KALPANA RASHIWALA
CDL Hospitality Trusts (CDLHT), the biggest owner of hotel rooms in Singapore, yesterday posted strong Q4 and full-year results.
‘My favourite acquisition markets at the moment are Singapore, Vietnam and India. These are high-octane growth markets.’
- Vincent Yeo, CEO of M&C Reit Management
Distributable income for the quarter ended Dec 31, rose 83.4 per cent from a year before to $22.7 million. CDLHT, a stapled entity, is hoping to acquire this year Copthorne Orchid in the Bukit Timah area from parent Millennium & Copthorne Hotels, the London-listed hotel arm of Singapore property giant City Developments.
CDLHT’s plan is to build up its assets over three to five years from about $1.6 billion as at the end of last year to around $3 billion, with increasingly more overseas acquisitions.
‘My favourite acquisition markets at the moment are Singapore, Vietnam and India. These are high-octane growth markets,’ said Vincent Yeo, CEO of M&C Reit Management.
The company is the manager of CDL Hospitality Real Estate Investment Trust, which is stapled to CDL Hospitality Business Trust to form CDLHT.
With CDLHT’s current gearing ratio (debts-to-assets) only at about 19 per cent, it has debt headroom of $792 million to fund acquisitions before it reaches its self-imposed gearing threshold of 45 per cent.
‘Given our strong balance sheet position, we’re well placed to seize acquisition opportunities as they present themselves,’ Mr Yeo said.
CDLHT has a right of first refusal to buy parent M&C’s Singapore hotels. M&C owns the 445-unit Copthorne Orchid at Dunearn Road, as well as a 370-room new hotel being built in the Mohamed Sultan Road vicinity slated for opening in the first quarter of next year.
Mr Yeo indicated that CDLHT would like to acquire Copthorne Orchid this year ‘if it’s possible’. He reckons the property is worth over $200 million. ‘The ball is in M&C’s court … We’re waiting to hear from them,’ he added.
The trust would acquire the Mohamed Sultan hotel only after it has opened and even then, this is likely to include initial income support if necessary, he said.
Copthorne Orchid had once been earmarked for development into a condo but it now continues to operate as a hotel as there is a shortage of hotel rooms in Singapore.
When CDLHT launched its initial public offer in July 2006, it had four hotels Singapore in its portfolio - Orchard, Grand Copthorne Waterfront, Copthorne King’s and M. In June last year, it acquired Novotel Clarke Quay.
Revenue per available room for the four IPO hotels rose 33.5 per cent year-on-year to $195 in Q4 2007. That together with a full quarter’s contribution from Rendezvous Hotel Auckland (acquired in December 2006), and the contribution from Novotel Clarke Quay provided the fillip to CDLHT’s Q4 distributable income in the fourth quarter. Gross revenue jumped 65.2 per cent to $27.96 million in Q4 last year.
Unit holders will receive a total distribution per unit of 4.61 cents for the July 19-Dec 31 period, which works out to 10.14 cents on an annualised basis, reflecting a distribution yield of 4.97 per cent based on CDLHT’s $2.04 closing price yesterday, when the shares ended 8 cents lower.
For the year ended Dec 31, distributable income was $68.7 million, or 75.7 per cent above the trust’s forecast. Gross revenue of $90.65 million was also 61.1 per cent ahead of forecast.
Source : Business Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
State properties for office use see healthy take-up- Singapore
SLA to release more sites this quarter to further ease office space crunch
By ARTHUR SIM
(SINGAPORE) Offices in state-owned properties seem to be catching on. After a quick turnaround time of about six months and about $2 million spent, Phillip Securities has opened its new Phillip Investor Hub at the former Moulmein Community Centre this week.
More space: the phillip investor hub was leased to phillip securities after it emerged as the top bidder in a public tender with a bid of $35,000 a month for the 22,593 sq ft gross floor area building, or just $1.55 psf per month.
And following the healthy take-up of state-owned properties - 12 out of 15 properties put up for dedicated office use were awarded in 2007 - the Singapore Land Authority says it expects to release another 32,300 square feet of space for potential office use in the current quarter. Properties that have been earmarked include the former Siglap-Changi Community Centre.
SLA says that of the 12 properties, which have a total of over 1.1 million sq ft of floor area, half have achieved full occupancy.
Foster Wheeler, a US engineering and construction services consultancy, is another company that will move to the former ITE Pasir Panjang site, taking up 70,000 sq ft. SLA believes the company’s move will free up 50,000 sq ft in the central business district or CBD.
SLA director of land operations Simon Ong said: ‘More importantly, the relief supply met the immediate need of tenants decanting from prime locations.’
The new Phillip Investor Hub was leased to Phillip Securities after it emerged as the top bidder in a public tender with a bid of $35,000 a month for the 22,593 sq ft gross floor area (GFA) building, or just $1.55 psf per month.
Phillip Securities will still maintain its corporate offices in the CBD, but it is quite happy to expand part of its operations to SLA properties. Phillip Securities business development director for consumer services Lisa Lee said: ‘Since we have spent close to $2 million to renovate the place, we intend to lease the state property from SLA for as long as we can.’
While the new Phillip Investor Hub will occupy 100 per cent of its leased premises, ERC Holdings, which was awarded the former River Valley Primary School property, plans to sub-let part of the property to other companies to cover some of its costs.
ERC chief executive Andy Ong said that it would have spent between $3.5 million and $5 million when the refurbishment is completed.
Already, it has signed tenants including luxury watch maker Audemars Piguet, which will set up a service centre, and restaurant group Senso Holdings.
While occupying old buildings does come with certain challenges - power supply and plumbing being the main issues - ERC has nevertheless decided to move a substantial part of its offices out. Mr Ong said that ERC would give up three-quarters of its 20,000 sq ft office in Robinson Road ‘after the rent was increased by 350 per cent’.
Knight Frank director of business space Agnes Tay said that push factors notwithstanding, these state properties may not be for everyone. ‘Most of these tenants are very clear about what sort of location they want,’ she added.
Knight Frank is the leasing agent for the former ITE Pasir Panjang site, which has a GFA of 218,891 sq ft, at Alexandra Road. The site was awarded to master tenant RichZone Properties for $288,999 a month or $1.30 psf per month.
Ms Tay said that leasing operations began in Q4 last year. About 40 per cent of the property has been leased out so far. Apart from Foster Wheeler, other tenants include electronics giant LG.
Early-bird tenants were also offered rents at about $4 psf per month but potential interest has bolstered rents and Ms Tay said that the asking rent has now gone up to $5-5.50 psf per month.
But because of the capital investment involved in undertaking such a large site, Ms Tay notes that there is little ‘immediate profit’ for the master tenant. ‘This is not a yield-type play,’ she said.
Hean Nerng Investments, which is in the business of managing properties, has leased the former Gan Eng Seng School at Raeburn Park - with a GFA of 160,000 sq ft - for about $200,000 per month or $1.25 psf per month. It is sub-letting the property at about $5 psf per month and sub-tenants include a government agency.
The property is already 60 per cent leased. Refurbishment of the property will be completed by end-February and Hean Nerng expects to have no problem filling it up. Hean Nerng managing director Kelvin Lim noted that his potential tenants are either escaping high CBD rents or looking for space to expand.
And CBD rents are expected to continue rising this year. Ms Tay said that asking rents for some prime Raffles Place office space is now as high as $19-20 psf per month, ensuring that at least a few more old state buildings are likely to get a new lease of life.
Source : Business Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Smoother rides to come with sharper S’pore ERP teeth
More gantries, higher charges to kick in; car growth to slow but vehicle taxes reduced
By LYNETTE KHOO
(SINGAPORE) Motorists will soon have to pay more for a hassle-free drive on the roads as the government rolls out electronic road pricing (ERP) changes from July onwards and adds new gantries in phases to reduce the number of cars on the roads.
But new capacity on public and premium transport services will be added by June ahead of these changes to provide an attractive alternative to motorists.
This forms the third thrust of the Land Transport Review unveiled by Transport Minister Raymond Lim yesterday, after major changes to improve bus and rail services were announced over the past two weeks.
These changes come at a time when congestion levels have risen by about 25 per cent since 1999, with more roads being congested during the peak hours. The problem is compounded by the intensive use of cars here.
Singapore’s growing traffic problems will not be solved soon, Mr Lim said. ‘The surging economy could feel the crunch.’
The impact on inflation is likely to be small, given that vehicle operating costs make up a small component of the consumer price index.
With past ERP rate hikes seen as providing only temporary respite, the government is raising the ERP base charge from the current $1 to $2 and the incremental charges from $0.50 to $1.
Last year, there were 25 ERP rate changes, compared to nine in 2006. With a larger jump in ERP charges, the government can refrain from frequent rate adjustments, Mr Lim said.
He assured that the impact on inflation is likely to be small, given that vehicle operating costs make up a small component of the consumer price index (CPI).
To enhance the ERP system, the LTA is changing the way it measures traffic speeds, from the arithmetic mean method to an 85th percentile method, which is an international practice. This ensures at least 85 per cent of the motorists travel at or above the optimum threshold speeds.
‘We are raising the performance bar to ensure that motorists are getting better driving experience, to give them the buffer so that less motorists will fall into start-stop conditions,’ Mr Lim said.
The new criteria will be applied first to the CBD and Orchard Cordon (on weekdays) and Orchard and Marina Centre Cordon (on Saturdays) in July before being extended progressively to other roads.
The LTA will be rolling out a total of 16 new gantries in phases, including the five existing gantries that have not been activated.
They are located at Upper Bukit Timah Road, Toa Payoh Lorong 6, Upper Boon Keng Road, Geylang Bahru Road and Kallang Bahru Road and will commence operating come April 7 in the morning peak hours.
To address congestion in the city area, the LTA will also introduce five new gantries to run roughly along the Singapore River from Clemenceau Avenue to Fullerton Road to discourage through-traffic that makes up about 38 per cent of the traffic.
These five new gantries will begin operating on July 7 during evening peak hours on weekdays. Two of them - at Eu Tong Seng Street and Fullerton Road - will also operate on Saturdays, from 10 am to 8pm.
Six other new gantries outside the city area will begin operating in November.
Three gantries will be on arterial roads - Commonwealth Avenue, Jalan Bukit Merah and Alexandra Road - and two will be on the AYE (westbound) near Alexandra Road and along PIE (westbound) near Eunos. All five will operate in the morning.
A new gantry on Serangoon Road will operate in the evening.
These changes to the ERP system are expected to raise ERP revenue by $70 million a year.
Stressing that ERP is not a measure to raise revenue but to address congestion, the government said that it would more than offset this increase with a permanent 15 per cent reduction in road tax for all vehicles from July onwards. This will cost the government $110 million annually.
The upfront cost of car ownership will also be cut by lowering additional registration fee (ARF) for vehicles from 110 per cent to 100 per cent of the Open Market Value (OMV), which means the government would collect about $200 million less annually. An estimated 6,000 car trips of the total 3.3 million per day are likely to be displaced by the ERP measures.
To facilitate the transfer from private to public transport, the government is increasing the frequencies of all bus services along affected corridors and allowing bus services to ply along sections of the North-South and East-West lines where there is more crowding.
Premium bus services will be expanded from the current 42 services to at least 72 by June, especially along affected routes.
An additional 93 train trips per week will run during the morning and evening periods from February onwards.
LTA said that it would continue to improve roads across Singapore. The new 21 km North South Expressway (NSE), which costs $7-8 billion, will be ready by 2020 and is expected to reduce travelling time along the North-South corridor by 30 per cent during the morning peak hours.
To rein in the growth of car numbers, LTA is lowering the growth quota from the current 3 per cent to 1.5 per cent for the next three years starting from quota year 2009. This will not translate into a proportionate reduction of the Certificate of Entitlement quota as the bulk of COEs in any year is made up of replacement COEs. Only 19 per cent of the 125,000 COEs in FY2007 accounted for the 3 per cent growth.
Industry players said that they welcome the government’s move to cut road tax. Both ComfortDelGro and SMRT announced yesterday that they would pass on the cost savings to their taxi drivers in full.
Source : Business Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Office rents lift MMP Reit’s income -Singapore
By Joyce Teo, Property Correspondent
MACQUARIE Meag Prime real estate investment trust (MMP Reit) yesterday reported a distributable income per unit of 1.68 cents for the fourth quarter, up 14.3 per cent from a year earlier.
This took its full-year distributable income per unit to 6.19 cents, up from 5.79 cents the previous year. The annualised yield is at 6.06 per cent.
Distributable income was at $16.2 million for the Reit, which owns about 74 per cent of Wisma Atria and 27 per cent of Ngee Ann City.
These favourable results were, in part, helped by Singapore’s strong office market.
Average office rents at the two buildings rose from $7 to $8 per sq ft (psf) in the first half to slightly above $12 psf at the end of last year, said Mr Franklin Heng, chief executive of the Reit’s manager.
Their asking rents are now $16 psf. They will be able to take advantage of the strong market in the next two years, he said.
The Reit’s performance was also boosted by income from newly acquired properties in Japan and China.
MMP Reit’s portfolio valuation increased 18.1 per cent to $2.2 billion in the fourth quarter, while net asset value per unit rose 27.8 per cent to $1.61 at the end of last year.
The Reit is set to benefit from the reconfiguration of the Ngee Ann city space occupied previously by the National Library. They are carving out at least eight new stores and will get average rents of $16.50 psf, up from $7.10 psf.
However, the big uplift this year will come from the June rent review of Toshin Development, which holds a master lease in Ngee Ann City, said Mr Heng.
Acquisitions are also on the cards.
Source : Straits Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
GuocoLand earnings sink 25% to $34m -Singapore
INVESTORS might be tempted at first to blame a slowing housing market for a 25 per cent slide in GuocoLand’s second-quarter earnings.
A closer scrutiny of the property developer’s accounts, however, shows that for the quarter ended Dec 31, it actually reaped higher revenue from its property development projects in Singapore and China.
In fact, the explanation for the profit slump was the sale of its long-term investment in BIL International in the second quarter ended Dec 31, 2006, which boosted its bottom line in the earlier period to the tune of a $19.3 million one-off gain.
GuocoLand’s net profit for the second quarter ended Dec 31 plunged to $33.9 million, from $45.4 million a year earlier. With the one-off gain stripped out, net profits were well up this year.
Revenue soared 112 per cent to $211.1 million, up from $99.6 million in the previous period.
Gross profit rose from $16.4 million to $40.2 million, with contribution from its West End Point project in Beijing.
West End Point, an 810-unit development in the Xicheng District of Beijing, is almost fully sold, GuocoLand said yesterday.
In Singapore, GuocoLand has three launched developments on the market: Le Crescendo, The View@Meyer and The Quartz.
As at this month, it achieved sales of about 90 per cent for Le Crescendo, The View@Meyer and the launched units in The Quartz.
GuocoLand said it has, in the pipeline, ‘prestigious’ residential developments in prime districts which will be built on the sites of the existing Sophia Court and Leedon Heights.
Earnings per share for the quarter fell from 7.31 cents to 4.02 cents, while net asset value per share remained unchanged at $2.30.
GuocoLand said that although the spectre of a recession is looming over the United States, the major economies of China and India are nonetheless expected to remain resilient.
Still, it noted that with the withdrawal of the deferred payment scheme in October, buyers are turning ‘more cautious’ in view of the ‘downside risks’ arising from the continuing global credit fallout, high oil prices, weak equity market sentiments and rising inflation.
Source : Straits Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
CDL’s hotel trust to pay out 57% more per unit -Singapore
By Fiona Chan
HOTEL EXPANSION: CDL H-Trust is launching 24 new rooms at the Grand Copthorne Waterfront Hotel between next month and April. Shown here is a mock-up of what the rooms might look like. They are targeted at extended-stay visitors. H-Trust’s fourth-quarter revenue jumped 65 per cent to $28 million. — PHOTO: CDL HOSPITALITY TRUSTS
NEW property acquisitions and asset revaluations last year helped push up income for City Developments’ (CDL) hotel trust.
CDL Hospitality Trusts (H-Trust) yesterday said revenue for its fourth quarter was $28 million, 65 per cent more than a year ago. Revenue per available room for all its Singapore hotels went up 34.5 per cent to $191 for the three months ended Dec 31.
Net property income rose 73 per cent over the same period to $26.9 million. The trust also recorded a net surplus of $239.4 million for the quarter on the revaluation of its investment properties.
Distribution per unit for the quarter was 2.76 cents, up 57 per cent from the previous year.
This brings distribution per unit to 4.61 cents for the period from July 19 to Dec 31, of which 4.22 cents is taxable and the rest is tax-exempt. This will be paid out on Feb 29.
The trust had earlier distributed income for the period up to July 18, ahead of issuing new units in an equity fund-raising exercise on July 19.
Earnings per unit for the fourth quarter came to 31.53 cents, up from 20.55 cents the previous year.
Net asset value per unit was $1.61 as at Dec 31, from $1.03 a year ago.
For the full year, gross revenue was $90.7 million, almost 60 per cent over pro-forma revenue for the previous year. CDL H-Trust was listed only in July 2006.
Net property income for the year was $85.8 million, 62.9 per cent over the pro-forma figure in 2006.
CDL H-Trust’s distributable income will be $68.7 million for the full year, which works out to 8.98 cents per unit.
The annualised distribution yield is 4.12 per cent as at last Friday’s closing price of $2.18, the trust said.
CDL H-Trust now owns seven hotels, including recent additions Novotel Clarke Quay and Rendezvous Hotel Auckland.
Occupancy rate for all of CDL H-Trust’s hotels stood at an average of 89 per cent in the fourth quarter. The average daily rate for the quarter rose 32 per cent to $216.
In general, Singapore hotels also did well. A record 10.3 million visitors visited Singapore last year, 5.4 per cent more than in 2006.
Upcoming attractions this year, such as the Formula One Grand Prix and the opening of the Singapore Flyer, are expected to keep Singapore’s tourism industry buoyant.
This year, CDL H-Trust will also launch 24 new extended-stay rooms at the Grand Copthorne Waterfront Hotel, which are to be ready between next month and April.
Source : Straits Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Singapore Medisave use for cancer scans lauded
Tapping medical savings of cancer patients for outpatient treatment is helpful as many need multiple scans, say docs
By Lee Hui Chieh
WHEN Mr Michael Koh, 55, was diagnosed with colon cancer in November last year, he had to have a chest X-ray and a body scan to check if the cancer had spread.
The computed tomography (CT) scan at a private hospital cost him about $800.
He had to pay for it out-of-pocket because he did not need to be hospitalised for it, and so he could not draw on his hospitalisation insurance or Medisave.
But should he need another outpatient scan done after he completes chemotherapy in June, he will be able to use his compulsory medical savings to pay part of the cost of his cancer scans in future.
Health Minister Khaw Boon Wan announced on Tuesday, that from April this year, cancer patients can draw up to $600 a year out of their Medisave to pay for scans such as magnetic resonance imaging (MRI), CT scans and positron emission tomography (PET) scans.
Only those with a confirmed diagnosis of cancer can use Medisave for scans. About 40,000 cancer patients are expected to do so, and to withdraw a total of about $25 million every year.
Mr Koh, who is semi-retired, said: ‘Medisave is still my money. But it does help me pay less cash. Every little bit helps.’
Doctors say that the move will help most cancer patients, as many need at least one scan to see how far the cancer cells have spread in their bodies, which helps doctors decide on the appropriate treatment.
But depending on what cancer they have, some may need more than one scan, said Dr Ang Peng Tiam, an oncologist in private practice. Lung cancer patients, for example, need three CT scans: for the brain, chest and abdomen.
Patients prescribed chemotherapy, especially those with advanced cancers for whom it is the main treatment, need scans more frequently to see if the treatment is working, said Dr Robert Lim, chief and senior consultant of the Cancer Institute at the National University Hospital (NUH).
Typically, a cancer patient prescribed chemotherapy goes through six cycles in four to six months, and will need four scans - one before treatment, and after every two cycles.
At private hospitals, CT scans can cost $400 to $600 each, so $600 can pay for fewer than two scans, which Dr Ang described as ‘grossly inadequate’. But even if $600 a year may not cover the total costs of the scans, ‘any help is better than no help’, said Dr Joanna Lin, another oncologist in private practice.
A Health Ministry spokesman said that it had determined the cap based on its estimate that $600 would cover 90 per cent of the cost of subsidised outpatient diagnostic scans for a cancer patient in a year, on average.
Subsidised patients pay about $70 for a CT scan of the head at NUH, and not more than $150 per visit for CT scans of one or more areas of the body at the National Cancer Centre.
The use of Medisave is already allowed for costly outpatient treatments such as chemotherapy, dialysis and most recently, chronic diseases such as diabetes, high cholesterol, high blood pressure and stroke. Limits are placed on the amount that can be used, such as up to $300 a year for chronic disease treatment.
Source : Straits Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Some cheer for new car buyers but not for long -Singapore
Industry players say cut in COE numbers will up premiums
By Christopher Tan, Senior Correspondent
FOLLOWING cuts announced yesterday to road taxes and registration fees, car industry players expect buyers to be happier initially, although car prices may not necessarily fall in the long term.
‘Buying a car now will probably save you some bucks compared to buying next year,’ said Motor Traders Association president Michael Wong, referring to shrinking COE supplies ahead, which would push premiums up.
But the 15-per-cent cut in road tax taking effect from July will cheer new buyers and existing car owners alike.
The road tax cut is meant to offset the addition of 16 ERP gantries coming up this year, bringing the total in operation to 71.
Those who drive more powerful ‘green’ cars, like hybrid sedans, could enjoy savings of around 35 per cent on road taxes under the new plan.
Mr Mark Choong, managing director of Toyota distributor Borneo Motors, said this would make bigger hybrids more attractive.
TOO AGGRESSIVE
‘The reason the 50-cent increases were not effective was that there was no real alternative to driving. But with all the plans to improve public transport now, you may not need to go for $1 increases.” - MR BERNARD TAY, Automobile Association of Singapore president
‘One of the main issues with these cars is the high road tax,’ he said. ‘Buyers feel they’re being punished.’
Besides the road tax reduction, which will cost Government coffers $110 million a year, car buyers can look forward to a 10 percentage point cut on a car’s Additional Registration Fee (ARF) - the main car tax.
That translates to a savings of $1,650 for a car like a Toyota Corolla and $5,000 for a luxurious Mercedes E-class.
But Automobile Association of Singapore president Bernard Tay said the registration fees could have been cut more.
He also said the decision to raise future ERP prices by at least $1 at a time - up from the current increment of 50 cents - was too aggressive.
‘The reason the 50-cent increases were not effective was that there was no real alternative to driving.
‘But with all the plans to improve public transport now, you may not need to go for $1 increases,’ he said.
While the ARF cut will help buyers save money up front, owners will get back less when they eventually scrap their cars. This is because the scrap rebate is based on the ARF.
While most motor traders welcome the tax cuts, they said a decision announced yesterday by Transport Minister Raymond Lim to limit the growth of the number of new cars on the road to 1.5 per cent annually could drive COE prices up. The old rate, in place since 1990, was 3 per cent.
Motor Traders Association’s Mr Wong said the cut was ’steep’, and reckoned car COE premiums would eventually rise to the $30,000-$40,000 region - from around $14,000 now. Car dealers said this could have a profound effect on the popularity of certain makes.
Singapore Vehicle Traders Association president Neo Nam Heng said sales of high-end cars will be least affected, while a $5,000 increase in COE rates could wipe out ‘one third’ of entry-level models.
This trend emerged in the mid-1990s, when COE prices shot to as high as $110,000. Back then, Mercedes-Benz was a bestseller with an unprecedented market share of up to 14 per cent. It is now back to more earthy levels of 4-5 per cent.
The COE back then cost much more than the car itself, pricing many ordinary buyers out.
Going down
ROAD TAX
Road taxes will be cut by 15 per cent for all vehicles from July. Motorists will save $110 million.
The owner of a $30,000 0.8 litre Chery QQ will pay $354 a year instead of $417, saving $63.
For a 1.6 litre Toyota Corolla, the tax will go down from $874 to $743, saving $131.
At the other end of the scale, the owner of a $1.5 million 6.75 litre Rolls-Royce Phantom will pay $8,248 instead of $9,704, saving $1,456.
Owners of green cars will benefit too. For example, road tax for a Lexus RX400h, which has a 3.3 litre engine and two electric motors, will be $2,870 - 36 per cent less than the current $4,482.
ADDITIONAL REGISTRATION FEE
The Additional Registration Fee for new cars will be lowered from 110 per cent of the open market value to 100 per cent from March. The Government will forgo $200 million in revenue.
This translates to a possible cut in price of about $1,600 for a car like a Toyota Corolla and $5,000 for a luxurious Mercedes E-class.
Source : Straits Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
More cars causing jam, so Singapore ERP changes a must
Current system coming under strain after 10 years, says Transport Minister
By Goh Chin Lian
ENSURING SMOOTH FLOW: Following the opening of the Kallang-Paya Lebar Expressway’s maiden 3km stretch from Sims Avenue to Fort Road in the East Coast Parkway last October, the rest of the KPE will open on Sept 20 this year. But even with the addition of new expressways, motorists are not assured of smooth travel without ERP charges. — PHOTO: LIANHE ZAOBAO
HAVING paid the Electronic Road Pricing (ERP) charges, some motorists still find themselves still stuck in a jam on roads and expressways here.
Transport Minister Raymond Lim said yesterday that this happens because there are many more cars on the road today than 10 years ago when the ERP system was introduced.
‘Our ERP system has served us well, but it is coming under strain,’ said Mr Lim.
Cars are also used more intensively here, clocking 21,000km a year on average, compared to 9,100km in London.
Also, the 50-cent increases to ERP rates are no longer enough to keep traffic going, seeing as how after it went up nine times in 2006, another 25 rate hikes were needed last year.
The new changes announced yesterday aim to fix this problem:
ERP will kick in much earlier under a new formula;
The basic ERP charge will go up from July to $2, from $1 now, and each subsequent jump will be $1, instead of 50 cents;
Sixteen more gantries will be put up, all to help ease congestion in the city area as well as on major roads islandwide.
Currently, the gantries go active once the speed of half the motorists travelling on a particular stretch over a 30-minute period falls below the optimal level of 45kmh for expressways and 20kmh for major roads.
However, in practice, many motorists will be travelling far slower. For example, speeds measured from 7.30am to 8am on a stretch of the Pan-Island Expressway this month showed that up to 38 per cent of the motorists were actually travelling below 45kmh, despite paying the ERP.
‘This also explains why there is at times a disconnect between what the Land Transport Authority says and motorists’ actual driving experience,’ said Mr Lim.
Under the new formula, ERP charges will kick in when, in line with international practice, just over 15 per cent of vehicles fall below ideal speeds.
So, at least 85 per cent of motorists will be assured of smooth travel when they pay the ERP charges,Mr Lim said.
Mr Lim expects that with the higher basic charge and larger increments, rate changes will be less frequent.
The new formula and higher charges will be phased in to give people time to adjust.
They will start in July in the Central Business District (CBD) and Orchard Road, after more bus and train trips come on line, and then to other roads in due time.
The number of gantries will also go up in phases, from 55 now, to 60 in April, 65 in July and 71 in November.
The focus is on the city area. Speeds on major roads in the CBD have fallen by over 25 per cent, from five years ago.
To cross major junctions, say, between North Bridge Road and Bras Basah Road, motorists must wait for three or more traffic light changes.
So, ERP will be used to discourage those motorists who are just passing through the already packed Suntec City, Bugis and Marina Square shopping areas in the evenings, and on Saturdays. They make up a third of the traffic now.
The ERP changes will have an effect on motorists like retiree William Chan, 65.
He said: ‘If ERP prices keep rising, we may switch to public transport, but we’ll still retain the option of driving to places that are far away.’
Others, like manager Chua Xin Kai, 28, will not make a switch - yet.
‘I’m paying so much for the car and after driving for 10 years, I am just lazy to take public transport. Maybe when I have to scrap my car in three years, I’ll reconsider.’
Until then, the Government expects to collect from such motorists $70 million more a year as a result of the changes.
And to show that this is not an excuse to raise revenue, but really to curb congestion, road taxes will be cut 15 per cent to the tune of about $110 million.
Mr Lim said: ‘If motorists were to drive less, the Government would be happy to collect less ERP revenue.’
ERP changes
April 7: Five gantries in Upper Bukit Timah Road, Toa Payoh Lorong 6, Upper Boon Keng Road, Geylang Bahru Road and Kallang Bahru Road will be switched on from 7.30am to 9.30am on weekdays.
July 7: Five gantries along the Singapore River, from Clemenceau Avenue to Fullerton Road, will be switched on from 5pm to 8pm on weekdays.
Two of them, in Eu Tong Sen Street and Fullerton Road (towards Esplanade Drive), will operate on Saturday from 10am to 8pm.
ERP operation hours on weekdays will also start earlier for the Central Business District, at 7am, and Orchard Road, at 10am.
New ERP formula, including the possibility of a $1 rate increase, will apply to these roads.
Nov 3: Six gantries will be switched on in Commonwealth Avenue, Jalan Bukit Merah, Alexandra Road, Ayer Rajah Expressway (west-bound, near Alexandra Road), Pan-Island Expressway (west-bound, near Eunos) and Serangoon Road.
New formula will apply to more roads with gantries, including in such areas as Toa Payoh, Dunearn Road and Bendemeer Road.
February 2009: New formula will apply on all roads with gantries.
THE ONLY WAY OUT
‘Without ERP, Singaporeans would be spending many hours in traffic snarls, just like people in Tokyo, Los Angeles and many other US cities, who pay for congestion, not with their wallets, but with the time that they have lost, stuck in traffic gridlock.’
TRANSPORT MINISTER RAYMOND LIM
Road pricing through the years
1975
The first road pricing scheme, known as the Area Licensing Scheme (ALS), is introduced.
This scheme covers the more congested parts of the Central Business District, designated as the Restricted Zone.
Cars with three or more passengers, excluding the driver, are exempted.
Motorists must buy a paper licence at $3 a day, before passing through control points on the roads, monitored by enforcement personnel.
Operations hours are from 7.30am to 9.30am daily, except Sundays and public holidays. It is later extended to 10.15am.
JUNE 1989
The scheme is extended to evening peak hours, from 4.30pm to 7pm on weekdays, following rapid growth in vehicle population.
January 1994
Restricted hours are further extended to 10.15am to 4.30pm on weekdays and 10.15am to 3pm (later to 2pm) on Saturdays. Car pools are abolished because private cars are picking up bus commuters.
SEPTEMBER 1998
Electronic Road Pricing (ERP) system replaces the manual ALS, starting with 33 gantries.
SEPTEMBER 1999
ERP is extended to some key roads beyond the Restricted Zone.
AUGUST 2005
Evening ERP kicks in on the Central Expressway. In the Orchard Road area, more gantries are introduced and operation hours are extended to 8pm on weekdays, and on Saturdays, from noon to 8pm, to control traffic flow in and out of the shopping belt.
JANUARY 2008
Announcement of fundamental changes to ERP system.
Source : Straits Times - 31 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Valuation wrong, so Singapore Strata board rejects sale of Regent Garden
In an unusual case, it says $34m price agreed on by owners and developer is well below market value
By Joyce Teo, Property Correspondent
AN UNUSUAL battle over the en bloc sale of Regent Garden intensified yesterday when the Strata Titles Board (STB) threw out the sale - ruling the $34 million sale had not been done in good faith.
The showdown over the fate of the 31-unit West Coast Road condominium site is now headed for the High Court.
The case is unusual because all six dissenting minority owners had withdrawn their objections to the sale, which was inked last April.
It is now the majority owners, who signed off on the sale, who are trying to back out of the deal with buyer Allgreen Properties.
The STB said it rejected the deal because it was not done in good faith, as Regent Garden’s valuation - on which the final price was based - was wrong.
It said that Regent Garden’s $34 million sale price was well below its market value.
The deal needed STB’s formal approval as there had originally been objections to the sale.
The dispute also involves alleged extra payments made to minority owners to quell those objections.
The majority owners filed an originating summons in the High Court this month trying to overturn the sale.
They argued that the $34 million sale price was wrong partly because of a wrongly estimated $7.2 million development charge - a charge for redeveloping a site to enhance its value. The charge, payable by developers, turned out to be just $950,000.
The large disparity is not common, and a consultant said it could be due to historical reasons, as the Regent Garden site permits more space to be built than usual.
Unless those involved knew the project’s development history, they would have been unaware of this, he said.
Allgreen has also gone to the High Court to ask for an order requiring the majority owners to complete the sale deal by Feb 28.
The two cases are likely to be heard together on a date that has yet to be fixed, said a sale committee member.
Another high-profile disputed collective sale, at Horizon Towers, as well as smaller cases such as Finla