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Goodman Group set to manage Singapore JTC Reit
By UMA SHANKARI
JTC Corporation is set to appoint Australian-listed property and wealth management company Goodman Group to manage its upcoming real estate investment trust (Reit), sources say.
The news follows last month’s report in the Australian Financial Review that Goodman Group beat competitors - including Singapore’s CapitaLand and Mapletree Investments - to become the manager of Singapore government-owned JTC Corporation’s upcoming trust.
Other names in the running included Challenger Financial Services Group and CapitaLand subsidiary Australand, both of which are listed on the Australian stock exchange, the report said.
The report also said that UBS, Goldman Sachs and DBS are in line to underwrite the offer.
Industry players said the Reit’s initial property portfolio is expected to be worth more than $1 billion.
When contacted by BT, JTC said that the selection is still ongoing. JTC said in July 2007 that it would announce the winning manager and underwriter by the end of that year.
‘We are in the process of selecting the Reit manager and we will give updates at the appropriate time,’ said a JTC spokeswoman.
Goodman already has substantial assets in Asia, including a 40 per cent stake in the manager of Singapore-listed Ascendas Real Estate Investment Trust (A-Reit).
Goodman is looking to expand in the region, market watchers have said. In mid-2007, Macquarie and Goodman ended a partnership that began in 2001. Macquarie paid more than A$730 million (S$922.4 million) to divest its investment in Goodman.
JTC, Singapore’s biggest industrial landlord, said last July that it will divest some $1.4 billion-$1.6 billion worth of assets and focus its attention on strategic developments with a longer payback time.
The bulk of the assets to be sold will be pumped into a Reit, chief executive Ow Foong Pheng told reporters at the time.
JTC also said at the same time that it has short-listed seven Reit managers and would announce the winning manager by the end of 2007. The Reit was scheduled to be listed on the Singapore Exchange (SGX) in the second quarter of this year.
A-Reit, Singapore’s second Reit, was set up by JTC unit Ascendas five years ago. The trust has since expanded by acquiring industrial buildings.
Source : Business Time - 04 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Market St Car Park may be redeveloped into offices-Singapore
The total project cost could range from $1 billion to $1.5 billion
By ARTHUR SIM
CAPITACOMMERCIAL Trust (CCT) has been granted outline planning permission by the Urban Redevelopment Authority (URA) to redevelop Market Street Car Park into an office tower that could cost up to $1.5 billion.
Ms Leong: Bullish about the office sector
Lynette Leong, chief executive of CCT’s manager CapitaCommercial Trust Management Ltd, said the viability of the project would depend on the development premium to be paid for changing the use of the 58,964 sq ft site from a car park to an office tower.
The premium will depend on the enhancement in land value as assessed by the chief valuer, which CCT expects to be made known by May.
Ms Leong said the outline permission is subject to the payment of 100 per cent of the enhancement in land value, instead of the standard 70 per cent, as well as there being no extension of the present lease, which runs to 2073.
Assuming a land value for 99-year commercial land of $900 psf per gross floor area, and adjusting for the shorter leasehold of the site, CCT estimates the land and development premium to be $800 psf.
Including construction and other costs, the project cost would be $1.25 billion.
But CCT said that depending on the development premium, the total project cost could range from $1 billion to $1.5 billion.
Assuming that necessary approvals are granted, a new office tower with an estimated gross floor area of 850,000 sq ft could be built within 36 or 40 months. Ms Leong said that existing tenants, who only moved into Market Street Car Park in end-2006 after a $14 million renovation, will be given notice soon.
Currently, there are 704 car parking spaces, 28 tenants, and 21,205 sq ft of net lettable area. As at June 1, it was valued at $59 million.
Saying that CCT has no plans to divest the office tower if built, Ms Leong added: ‘When completed, the property would augment the core assets in CCT’s portfolio which currently includes landmark office buildings such as Capital Tower and 6 Battery Road.’
She said she was bullish on the office sector. While she did not reveal estimated yields for the development, she said that it was looking at projected rents of $12-$14 psf per month.
The outline planning consent comes years after CCT parent CapitaLand first mooted plans to redevelop both Market Street Car Park and Golden Shoe Car Park.
It was reported that the URA first rejected redevelopment plans for the car parks as earlier as in the mid-1990s when the properties belonged to the now defunct Pidemco.
Ms Leong said there are currently no plans to redevelop Golden Shoe Car Park, although it has also applied for a change of use for the site
Source : Business Time - 04 Jan 2008
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Mindy Yong
(+65)91002985
Air China’s parent out to hijack S’pore SIA bid
It’ll vote against sale of stake in China Eastern and may make own offer
(SHANGHAI) China National Aviation Holding - Air China’s parent - has put an end to the suspense and laid its cards on the table. Not only will it vote against a plan by China Eastern Airlines to sell a HK$7.16 billion (S$1.3 billion) stake to Singapore Airlines and Temasek Holdings, but it’s prepared to make its own offer for a stake in the carrier.
‘We believe other minority shareholders will also vote against the deal,’ said Gao Jianming, a Beijing-based spokesman for China National Aviation, which has a controlling stake in Air China, China Eastern’s biggest rival. It is also the owner of 3.8 per cent of China Eastern.
China National may also make a proposal for a stake in China Eastern if the carrier’s shareholders reject a plan to sell stock to SIA and Temasek.
China National said in a statement that it was ‘going to put forward our proposal’ if the shareholders on Jan 8 vote against the plan.
China Eastern has defended plans to sell a minority stake to SIA, saying that criticism by China National that the sale price was too low was biased. Air China’s parent and its affiliate, Cathay Pacific Airways, last year considered making a bid for China Eastern so as to use its Shanghai hub to further their position in the world’s second-largest aviation market.
‘As long as the Singapore Airlines deal is scrapped, Air China wins,’ said Jim Wong, an analyst at Nomura International in Hong Kong. ‘China National has been trying to talk down the deal and sway the minority shareholders to vote against for several months.’
China Eastern fell 11 per cent to HK$7.16 in Hong Kong trading yesterday, and Air China fell 7.8 per cent to HK$10.64. SIA closed 0.6 per cent down at $17.10 in Singapore.
SIA, the world’s second-largest carrier by market value, wants to buy a stake in the Shanghai-based carrier to expand into the world’s most populous nation and fastest-growing major aviation market.
The new shares will be sold to SIA and its parent, Temasek, at HK$3.80 apiece, a 53 per cent discount to Wednesday’s closing price. The deal needs approval of two-thirds of China Eastern’s H and A shareholders at a meeting in Shanghai next Tuesday before becoming effective.
‘If we do offer a counter bid, we would offer what the current deal is lacking,’ Mr Gao said in a phone interview. He declined to comment on the HK$5 minimum sale price as suggested by its adviser, China International Capital Corp. — Bloomberg, Xinhua
Source : Straits Time - 04 Jan 2008
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Mindy Yong
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Circle Line key to higher plot ratios: JLL-Singapore
Study looks at how Master Plan 2008 could change landscape, usher in new initiatives
By KALPANA RASHIWALA
(SINGAPORE) When Master Plan 2008 is unveiled sometime this year, certain areas are likely to see an increase in plot ratios. A study by Jones Lang LaSalle has tried to zero in on which areas could be allowed more intensive use of land.
Its conclusion: Look out for undeveloped state sites within walking distance of Circle Line MRT stations, particularly those that intersect with existing MRT lines. They are the top candidates for higher plot ratios.
The property consulting group specifically highlighted the areas near Paya Lebar MRT Station, Buona Vista MRT Station (which will see the Circle Line intersecting with the existing East-West Line) and HarbourFront MRT Station (Circle Line crosses North-East Line). Also, while Buona Vista is shaping into an R&D/commercial hub, the HarbourFront district’s redevelopment potential is increasing because of projects in Sentosa and Keppel Bay nearby.
Another promising area is in the vicinity of the Circle Line Station at Telok Blangah. Although it does not intersect with an existing MRT line, it will benefit from a spillover from the ongoing redevelopment in Sentosa and HarbourFront.
JLL does not see major, across-the-board increases in plot ratios in MP 2008. But it argues that intensifying land use for undeveloped state plots along these stations will spread social benefits from the government’s investment in the Circle Line to more people and also improve accessibility.
Raising plot ratios (ratio of maximum potential gross floor area to land area) will also address the issue of rising demand for Singapore’s properties and prevent overcrowding in specific areas such as the central and CBD regions.
Although the Circle Line also touches locations near Dhoby Ghaut and Bishan MRT stations, JLL excludes them as these areas already have high plot ratios.
The study also suggests that white sites - with a range of uses and change in use mix allowed - will be more readily available islandwide instead of being confined largely to the CBD. ‘It further promotes creativity in future projects,’ says JLL’s head of research (South-east Asia) Chua Yang Liang.
He also sees the Urban Redevelopment Authority introducing more mixed use, rather than traditional single-use zones, to ‘further provide the flexibility needed to accommodate changing demand patterns as a result of shifting demographics’. MP 2008 could also be more tolerant of non-traditional types of residences. For instance, obsolete industrial buildings could be re-modelled along the lines of New York’s Manhattan lofts. ‘This will accommodate shifting market forces and tastes,’ Dr Chua argues.
JLL also suggests that URA may realign traditional industrial estates to support demand needs of the knowledge-based economy or rezone them for other uses. ‘For example, industrial areas within housing estates such as those found in Jalan Pemimpin could potentially be rezoned to residential or possibly an education hub,’ it said. After all, the area is near Raffles Institution and Raffles Junior College.
MP 2008 could also extend the ‘work, live and play’ concept beyond Marina Bay into the suburbs as Singapore cannot live by its business image alone, JLL predicts. ‘We can expect to see more areas designed for cultural developments, for example, the civic, cultural and retail complex in Buona Vista, and new conservation areas that serve to retain the fabric of the collective memory,’ Dr Chua said.
JLL also expects to see many more recreational zones across Singapore. ‘The likes of the recent Punggol announcement will be more common,’ the study said.
On the back of Sentosa Cove’s success, JLL expects other islets around Singapore like Southern Islands and Pulau Ubin to be put for waterfront residential use.
In the existing CBD, JLL suggests that Shenton Way will see a further shift towards a mixed-use (including residential) district, once the current office supply crunch eases. In May last year, URA announced a temporary ban on conversion of office use in the central area, including the CBD, to other uses until end-2009.
Last year, the government identified Jurong East and Paya Lebar for development into business hubs. Dr Chua says land around Paya Lebar MRT Station will be intensified in line with government plans to transform it into a sub-regional centre and that the location will be ideal for cost-conscious office tenants.
However, Dr Chua suggests that the area around Jurong East MRT Station is more suited for research and development because of its proximity to universities, the Science Park and one-north rather than as an alternative backoffice hub along the lines of Tampines.
National Development Minister Mah Bow Tan last year also ruled out massive, across-the-board islandwide increases in plot ratios for MP 2008 to cope with a higher population target of 6.5 million. The Master Plan, a detailed land use plan that guides Singapore’s medium-term physical development, is reviewed every five years.
Source : Straits Time - 04 Jan 2008
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Mindy Yong
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Air China’s parent ’seeking to foil Singapore SIA bid with counteroffer’
CNAC slams joint bid for China Eastern stake; Air China has made HK$5 a share offer, say sources
By Vince Chong, Hong Kong Correspondent
MOTIVATIONS: The parent of Air China, the world’s largest airline by market value, reportedly wants to add China Eastern, China’s No. 3 airline, to its books to bolster industry consolidation, as well as grab a share of the lucrative Shanghai aviation market. — PHOTO: THE BOEING COMPANY
THE parent company of Air China - the world’s largest airline by market value - is reportedly determined to thwart a bid by Singapore Airlines (SIA) and Temasek Holdings for Air China’s rival, China Eastern, with a counteroffer.
Air China’s proposed bid stood at HK$5 a share, sources told Hong Kong’s Chinese-language Mingpao Daily, more than SIA’s and Temasek’s HK$3.80 a share offer but still lower than China Eastern’s current market price.
On New Year’s Day, China National Aviation Corp (CNAC), which controls China’s No 1 airline, Air China, slammed the joint bid as too cheap. It added that the deal could also ‘place a potential obstacle to the future development of the domestic industry’.
In a statement released yesterday, China Eastern hit back by saying that its plan to sell a 24 per cent stake to SIA and Temasek for HK$7.2 billion (S$1.3 billion) followed lengthy, market-based talks.
‘We must point out the price of HK$3.80 for the new share issue is reasonable,’ it said. ‘The alliance with SIA would not hinder cooperation with other domestic carriers in any way… The theory that it would pose a potential hindrance to industry development is unsupported.’
Observers say CNAC wants to add China Eastern, China’s No. 3 airline, to its books to bolster industry consolidation, as well as grab a share of the carrier’s lucrative Shanghai aviation base.
NEW SANCTION
A counterbid for China Eastern, if ever CNAC pushes through with one, will have to be approved by the same China central leadership that has already sanctioned the deal with SIA and Temasek.
STILL TOO LOW
China Eastern’s Hong Kong-listed stock slumped by 11 per cent, after investors deemed the speculated HK$5 per share offer lower than expected.
CNAC currently has a market share of 37 per cent at Shanghai. Still, some within the central government are believed to prefer attracting much-needed international carrier expertise.
Last year, Air China itself teamed up with Hong Kong’s Cathay Pacific in a two-way investment deal.
CNAC, which owns over 12 per cent of China Eastern, is likely to vote against the SIA-Temasek deal in shareholders’ meetings scheduled on Tuesday, market watchers said.
It can then put in a new bid, which will also have to be approved by the same China central leadership that has already sanctioned the deal with SIA and Temasek.
A two-thirds majority approval by shareholders of both China Eastern’s Hong Kong- and Shanghai-listed stock must be achieved at the meetings for the deal to pull through.
Neither China Eastern nor its parent, which owns over 50 per cent of the carrier, is allowed to vote.
Central to the deal is dominant control of booming Shanghai’s commercial airspace, which is expected to grow given Shanghai’s stature as an important cog in the mainland economic juggernaut.
Last year’s third-quarter figures showed that some 52 million passengers flew with China’s domestic carriers, a 15.3 per cent year-on-year rise, according to airline regulator the General Administration of Civil Aviation.
In 2010, the Shanghai World Expo is expected to draw 70 million visitors, while the appreciation of the Chinese yuan - which has climbed more than 10 per cent against the US dollar since a peg was scrapped in July 2005 - also helps to boost the bottom lines of mainland carriers, as these typically carry US dollar-denominated debts.
Not everybody is happy with Air China’s rumoured counterbid, though. The price of China Eastern’s Hong Kong-listed stock slumped by 11 per cent to HK$7.16 yesterday, after investors deemed the speculated HK$5 per share offer lower than expected.
Source : Straits Time - 04 Jan 2008
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Mindy Yong
(+65)91002985
Bridging Keppel Bay to mainland - Singapore
PRESIDENT SR Nathan opened a $30 million bridge last night linking Keppel Bay to mainland Singapore for the first time.
The ceremony to open Keppel Bay Bridge - spanning 250m - was witnessed by more than 300 guests.
During the ceremony, the President activated a launch sequence, which kick-started a pyrotechnics and bridge- lighting display.
The bridge links Marina at Keppel Bay and future waterfront residences on Keppel Island to the mainland.
The bridge is part of major development in the area aimed at transforming Keppel Bay into a premier waterfront precinct that integrates exclusive waterfront residences, a private marina and prime offices, said Keppel Corp’s group senior executive director, Mr Teo Soon Hoe, at the ceremony yesterday.
Source : Straits Time - 04 Jan 2008
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Mindy Yong
(+65)91002985
Financial centre warns of persons posing as its staff - Singapore
By Lorna Tan, Finance Correspondent
BE WARY: When contacted, banks reiterated the warning that consumers should exercise caution over releasing any personal banking information.
FINANCIAL Industry Disputes Resolution Centre (Fidrec) has issued a new alert about fraudsters posing as Fidrec and bank staff.
These conmen try to solicit personal banking information from unsuspecting consumers. Fidrec has already lodged a police report.
Fidrec is an independent institution which specialises in resolving disputes between financial institutions and their customers.
The latest case is similar to an instance in June last year when several Central Provident Fund (CPF) members were contacted via their mobile phones by a person pretending to be a CPF officer.
In one case, a woman was conned of $2,700 after she was approached by a woman falsely claiming to be a CPF staff member.
The conmen impersonating Fidrec staff claimed that the consumers owed money to banks and other financial institutions, and asked for personal information such as bank account numbers.
In its statement yesterday, Fidrec warned that unless consumers have lodged a complaint with the centre, they should not expect to be contacted by any of its staff.
‘Fidrec would like to state that Fidrec’s staff would not contact any consumer unless he or she had first lodged a complaint with Fidrec,’ it said.
As the matter is currently under police investigation, Fidrec declined to provide details of the incidents leading to this warning.
It stated only that it has been recently brought to Fidrec’s attention that several consumers have been contacted by persons posing as bank staff and Fidrec staff, even though these consumers had not lodged any complaints with the disputes resolution centre.
Consumers who have queries should call Fidrec on 6327-8878.
When contacted, various banks in Singapore reiterated the warning that consumers should exercise caution over releasing any personal banking information.
Said Citibank Singapore head of corporate affairs Adam Rahman: ‘We would like to advise customers not to release their personal banking information to individuals whom they have no prior association with.’
OCBC Bank’s head of planning and customer assurance, Mr Ng Kwok Leong, said that it is not the bank’s policy to make unsolicited requests for any account details from customers via telephone or e-mails. These include asking for a customer’s confidential information such as Internet banking, phone banking or ATM PINs, user IDs or passwords.
Standard Chartered Bank Singapore’s country chief risk officer, Ms Xie Wen, also said that it is not its practice to call customers to verify personal account information over the phone.
If such contact is made, or if the customer has any doubts, he is advised to contact the bank immediately.
A spokesman at United Overseas Bank also reminded customers that they should not release any personal banking information to any purported bank staff over the telephone, as such information would already be available to the bank.
In the scam involving the CPF Board, the victim ended up transferring money into a stranger’s account, after the fraudster called her and said that she needed to make some ATM transactions in order to receive her GST credits.
The fraudster claimed to be from the GST Credits department, and was even able to provide the bank account numbers of the victim and her husband and to say how much money the latter had in his bank account.
The CPF Board’s advice to members then was not to respond to such calls as it would not make calls instructing people to conduct ATM transactions, especially fund transfers.
On the alert
============
CONMEN impersonating Financial Industry Disputes Resolution Centre (Fidrec) staff claimed that consumers owed money to banks and other financial institutions, and asked for personal information such as bank account numbers.
‘Fidrec would like to state that Fidrec’s staff would not contact any consumer unless he or she had first lodged a complaint with Fidrec,’ it said.
As the matter is currently under police investigation, Fidrec declined to provide details of the incidents leading to this warning.
Consumers who have queries should call Fidrec on 6327-8878.
Source : Straits Time - 04 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
Oil price may head to US$120 in the next few months
They could then fall back to about US$80 due to slowing external demand, say experts
By Yang Huiwen
LIQUID GOLD: Both oil and gold struck fresh records yesterday. For the first time, oil hit US$100 a barrel, while gold shot past its all-time high of US$850 an ounce. — PHOTO: AFP
ANALYSTS offered a stark warning yesterday after oil briefly touched the US$100 a barrel mark - it’s going to get worse before it gets better.
They believe crude oil prices will keep rising over the next few months, driven by high demand and concerns over supply disruption and political tensions in oil-producing countries such as Nigeria, Iran and Algeria.
Speculative trading by hedge funds, thought to be behind the jump to US$100 on Wednesday, will also continue to play a part.
But economists believe prices will ease by the end of the year, while Singapore’s rising dollar should also take some of the sting out of pricier crude.
CIMB-GK economist Song Seng Wun said: ‘US$100 a barrel looks like an impressive number. That’s higher than any time before, but it’s probably not going to be a one-way street.’
He expects oil prices to average US$80 a barrel by the end of this year.
It is just the next few months that will test the nerves of economists, governments and consumers already shaken by the 57 per cent rise in prices last year.
‘There will be a short-term propensity for prices to overshoot,’ said OCBC Bank economist Selena Ling, who added that the high prices reflect the economic and political risks being faced across the globe.
‘There is about a US$10 to US$15 risk premium on crude oil prices now,’ she said.
She pointed out that, as the Organisation of Petroleum Exporting Countries (Opec) seems reluctant to ramp up production, prices could easily shoot up to US$110 a barrel over the next month.
Singapore-based economist David Cohen at Action Economics sees prices going even further north: ‘US$120 a barrel could be well within reach from now till the middle of the year.
‘Weakness in the US dollar has aggravated the pressure on oil prices, which are quoted in US dollars, in recent months.’
He added that continued softness in the greenback and general inflation fears will give oil prices a further upward nudge.
But it is not all a doomsday scenario. The possibility of an economic slowdown in the United States, the world’s largest importer of oil, and easing growth in oil guzzlers China and India could suck off some of the steam.
Prices eased off in September and October due to heightened concerns about a US recession, said Mr Cohen.
Ms Ling, who forecasts oil will ease to about US$85 a barrel by year-end, added: ‘It will be very hard to sustain this upward trend in the longer run, with the US, Europe and Japan slowing down. It will be very hard for just China and India to sustain the high prices.’
Standard Chartered economist Alvin Liew echoes her sentiments and predicts prices will go even lower, to an average of US$75 a barrel by the end of the year.
Mr Liew added there are other undetermined factors in play that could swing prices either way, including geopolitical tensions and the levels of speculative money in the market.
While higher oil prices and rising inflation generally batter consumer sentiment and constrict spending, the domestic picture is slightly rosier than it might seem.
‘A strong Singapore dollar has somewhat compensated for higher oil prices,’ said Mr Song. ‘A lot will depend on how much further the Singapore dollar will strengthen to contain imported inflation.’
The strong economy has translated into more jobs and greater income growth for the past year, which have allowed people to live with the higher costs, he added.
Source : Straits Time - 04 Jan 2008
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Mindy Yong
(+65)91002985
Singapore Changi to invest in up to 15 overseas airports
CHANGI Airports International, the overseas investment unit of Singapore’s main airport operator, plans to buy stakes in as many as 15 airfields, about half in China, said its chief executive officer Chow Kok Fong.
The company aims to manage US$700 million (S$1 billion) of airport assets in the next three years, said Mr Chow, 55, in an interview in Singapore on Wednesday. Overseas revenue may climb to as much as 20 per cent of sales in five years, from less than 5 per cent now.
Mr Chow wants to tap growth in the Middle East, China and India, where governments are upgrading airports as rising incomes enable more people to fly. Global passenger air traffic may jump 29 per cent by 2011, threatening to overwhelm airports, according to an October forecast by the International Air Transport Association.
‘Travel numbers are going to keep growing,’ said Mr Michael Birch, who oversees about US$140 million at Wallace Funds Management in Sydney. ‘In countries where there is only one airport, it makes sense to buy such assets because it’s a monopoly.’
Changi Airports was set up as Changi Airport Managers and Partners (Singapore) in 2004 by the Civil Aviation Authority of Singapore (CAAS), and renamed two years later.
The company secured its first direct investment in China last month, acquiring a 29 per cent stake in Nanjing Lukou International Airport for US$138 million.
Funding for future purchases will come mainly from its parent, said Mr Chow. The CAAS had a net income of $415 million for the year ended March 2007, compared with $448 million the year before.
‘We are looking at several deals, which we hope will crystallise over the next three years,’ he said. ‘A lot of the growth that we expect in China will come from the central and western region. So, we will be spending a lot of our efforts in that region.’
Changi Airports shifted its focus in 2006 to investing overseas, instead of just offering consulting and advisory services. The company may consider setting up a trust for its assets, said Mr Chow.
In China, Changi Airports is seeking stakes outside of the main airports in Beijing, Shanghai, Guangzhou and Shenzhen.
It also has a venture with Shenzhen Airport Group to invest in and manage smaller airports.
BLOOMBERG
Source : Straits Time - 04 Jan 2008
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Mindy Yong
(+65)91002985
Condo-like flats in Boon Keng going on sale in Singapore
Hot demand expected for second lot of public housing offered by private developers
By Tan Hui Yee, Housing Correspondent
A FLURRY of applications is expected for the latest batch of flats that look like condominiums but sell for just about two-thirds the price of condo units in the same area.
The second batch of public housing being offered by private developers goes on sale tomorrow, one year after the first lot was launched to overwhelming demand.
Like the first project in Tampines, the latest 714-unit project in Boon Keng, to be ready in September 2011, offers condo-like trappings such as timber flooring, built-in wardrobes and kitchen cabinets, and air-conditioning.
In fact, some boast features condo owners would love.
Some flats will have wall-to-wall balconies in living rooms and master bedrooms that look out onto the Kallang River and beyond.
Large bay windows will extend to all bedrooms - and even the shower stalls in the bathrooms. And lift lobbies will come equipped with a card access system.
Design, build, sell
UNDER the Design, Build and Sell Scheme, private developers are free to design, price and sell the flats as long as they work within the confines of public housing rules.
This means that buyers must be families earning not more than $8,000 a month. They have to meet an ethnic quota. The development cannot be fenced off and its common facilities must be easy to maintain. Swimming pools, therefore, are not allowed.
Giving a sneak peak of showflats at the development called City View @ Boon Keng yesterday, developer Hoi Hup Sunway Development said it is offering 72 three-room flats, 168 four-room flats, and 474 five-room flats - housed in three 40-storey blocks.
Under this programme, private developers are given a free rein over the design, pricing and sale of the homes, as long as they adhere to the general rules of public housing.
For the Boon Keng development, three-room flats units are priced at $349,000 to $394,000; four-room units at $523,000 to $597,000; five-room units at $536,000 to $727,000. On average, they are going for $520 psf.
Their prices are wedged between those of resale Housing Board flats and private 99-year leasehold condos in the same area.
A five-room, 11-year-old HDB flat near the project site changed hands for $545,000 in November, for example, while units at private condo Kerrisdale in Sturdee Road sold for $731 psf to $786 psf late last year.
Property agency chief Chris Koh, from Dennis Wee Properties, expects demand to be good. He said that the prices are ‘very reasonable’, considering the flats are near central Singapore and owners of HDB flats in the area are asking for $50,000 to $70,000 above the valuation of their properties, even if they are more than 10 years old.
Potential buyers are also watching closely. Hoi Hup Sunway has received about 1,000 inquiries in the past month. Those who sign up for a unit face a computer ballot to decide who books a unit.
The 616-unit project in Tampines attracted nearly 6,000 applications - just before the property market recorded a huge upswing. Last month, 316 surplus flats offered by the HDB in the outlying towns of Hougang, Sengkang and Punggol attracted a staggering 5,147 applications.
Competition for these Boon Keng flats is expected to be intense. Businesswoman Serene Sia, 38, wants a unit ‘badly’ as she thinks private property is out of her reach. Asked what she thought her chances would be, she said: ‘I seriously don’t know.’
Those interested can apply online at www.hoihup.com from 9am tomorrow. Applications close on Jan 16.
Other similar developments - which could house about 2,500 more units - are being planned for Ang Mo Kio, Bishan, Toa Payoh, Simei and Bedok.
But Hoi Hup Sunway spokesman Wong Chee Herng does not think it will dent the response to his project. ‘The demand is still very much greater than supply,’ he said.
Source : Straits Time - 04 Jan 2008
Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
CapitaCom plans to redevelop car park complex into office building
By Ng Baoying
CapitaCommercial Trust is preparing to spend up to S$1.5 billion to convert the Market Street Car Park into an office tower.
Whether the project will go ahead or not depends on feasibility studies, but a major regulatory hurdle has been cleared.
The URA has lifted restrictions for the site, which originally requires the land to be used mainly for car parks.
CapitaCom, which owns the car park complex, plans to build a 240-metre-high office tower on the site, with an estimated total gross floor area of 850,000 square feet.
The new project comes despite the building having been just renovated in 2006 for some S$14 million.
“We plan to redevelop this into a state-of-the-art Grade A office building to cater to the demand of tenants such as financial and business institutions,” said CapitaCommercial Trust’s CEO, Lynette Leong.
However, the redevelopment is subject to conditions. The trust will have to pay 100 per cent of the enhancement in land value, and will not be allowed to extend the existing lease on the site beyond 2073.
The usual charge is 70% of the enhanced value. The entire project is estimated to cost between S$1 billion and S$1.5 billion.
CapitaCom says it will study financing options, like a joint venture, business trust or even issuing convertible bonds.
Should the project go forward, the building will be ready in four years’ time, and the trust is optimistic about office space demand then.
Ms Leong noted that recent reports by international property consultants had forecast an office occupancy rate of between 91% and 95% despite the seemingly large supply of office space available by 2012.
She also said: “Demand, from our experience talking to our tenants, is still strong. The take-up at the new MBFC (Marina Bay Financial Centre), recently it has been announced that they’ve got 50% pre-commitment. So, we are still very optimistic of office demand.
“In addition to that, the Singapore economy is still very strong and we are attracting lots of financial institutions and MNCs wanting to set up operations in Singapore, and that’s driving demand for office space.”
The trust says it will give its current tenants at least six months’ notice and help them in relocating to other spaces within its portfolio
Source : Channel NewsAsia - 04 Jan 2008
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Costs to go up as oil prices briefly breach US$100 per barrel
By Asha Popatlal
SINGAPORE: For the first time, world oil prices briefly crossed the psychologically important level of US$100 a barrel on Wednesday.
Analysts attribute the surge to tight supplies and continued strong demand.
One analyst said consumers are being hit by a double whammy, with the high oil prices and the recent spike in food prices.
Song Seng Wun, CEO and Regional Economist, CIMB-GK Research, said: “I suppose if it had been any other time, say six months ago, it probably would not have meant that much because crude oil prices had been going up steadily for the last five years.
“It only became a lot more significant now, coupled with the inflation in food prices. We have seen food prices go up significantly in the second half of last year and food prices, unfortunately, will stay high.
“CPI (consumer price index) may go up 2 percent or even beyond 5 percent year-on-year. Young Singaporeans may not have seen that kind of inflation in a long, long time.”
“Even a small amount of inflation – such as what we are seeing today – can have a big impact on what you can do with your money.
“For example, S$100 today is reduced to just S$88 spending power by 2010 if we experience an inflation rate of 4 percent. And if that inflation rate is moved from 4 percent to 8 percent, that S$88 is reduced to just S$77 in 2010,” said Gary Harvey, CEO of Ipac Wealth Management Asia.
The solution, however, is basic – see what you are spending on and budget carefully to stretch that dollar further.
While rising fuel and food prices will continue to have an upward impact on one’s day-to-day costs, economists said there is a slight silver lining in that prices for consumer goods such as flat-screen TVs and mobile phones have remained unchanged or have even gone down.
This is because big manufacturers have managed to keep the prices down. But economists said that may not necessarily be the case in 12 months’ time, if material or wage costs continue to climb.
Source : Channel NewsAsia - 04 Jan 2008
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S$30m Keppel Bay Bridge opens to much fanfare - Singapore
By Satish Cheney
SINGAPORE: A new S$30 million bridge to link Marina Bay and Keppel Island has been officially opened by President SR Nathan.
The Keppel Bay Bridge forms part of the new waterfront living experience in the Marina Bay area.
The 250-metre bridge links Keppel Island with the mainland. But it’s more than just a bridge. The new link is adorned with special lights which can be programmed to enhance the atmosphere.
It took two years to complete the bridge, which is part of the master plan to transform Keppel Bay into a premier waterfront precinct.
Teo Soon Hoe, Senior Executive Director of Keppel Corporation, said: “We wanted to build a bridge between the mainland and the island. The island is now linked with a marina clubhouse. The boats are already in. It’s just been completed and will be open soon. And we have the whole island which will provide more space to our tenants.”
The bridge will come in handy when more water sports events are held here. And come January 19, the 10-team Clipper fleet presently racing from Australia to Singapore will be arriving at Marina Bay, and this bridge will be a central figure for the welcome party.
Apart from scenic views of Sentosa Island as well as the upcoming integrated resort, pedestrians can also get insights into the historical surroundings from the plaques placed along the walkway.
Source : Channel NewsAsia - 04 Jan 2008
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Second batch of condo-style Singapore HDB flats to be launched this weekend
By Wong Siew Ying
SINGAPORE: The second batch of condo-style public apartments will be launched on 5 January.
The apartments at City View @Boon Keng, which will be completed in 2011, promise the trappings of private residential homes. But they will not come cheap.
The project is part of HDB’s Design, Built and Sell Scheme (DBSS), where private developers build and market the flats.
City View @Boon Keng is the second DBSS project; the first is at Tampines.
At 40 storeys high, the City View @Boon Keng apartments will tower over many HDB flats in the area.
The mixed development will comprise 714 units, two-thirds of which will be 5-room flats and the remainder 3- and 4-room units.
The average cost of the apartments is S$520 per square foot, a record for new HDB flats.
Hoi Hup Realty Pte Ltd’s director, Wong Chee Herng, said: “It goes all the way from just slightly below S$350,000 to, I think, the most expensive unit is very close to S$740,000. We don’t see an issue of pricing here, because when the buyers come to see the layout, the design, I think they will appreciate what they will pay for.”
Buyers will pay for the view of the city and features commonly found in private condominiums.
JGP Architecture (s) Pte Ltd’s director, Chan Sze Chin, said: “A buyer who comes in here does not have to spend any more money or time to hack the walls to install things like air-con pipes or water heater pipes and even kitchen cabinets. In addition, we’ve also provided quite a fair bit of plants to the balconies to add to the greening of the development.”
Industry players believe City View @Boon Keng will draw good response due to its location.
Knight Frank’s property consultant, Nicholas Mak, said: “The price is about half of that of some of the 99-year (leasehold) condominiums in that area, such as City Lights and South Bank. But, at the same time, they (prices of City View @Boon Keng apartments) are also a bit higher than those for the EC, executive condo.
“From the launch of the first DBSS flats in Tampines till now, I think, it would be reasonable to assume that prices of DBSS would have gone up by about the same quantum as HDB resale flats, which is between 20 and 30 per cent.”
Analysts say the price of a 5-room HDB flat in the resale market in the Boon Keng area will cost about S$450,000.
The City View @Boon Keng project is expected to attract the interest of young, middle-income families. Its marketing agents are confident the apartments will be a hit with home buyers.
They say the project is likely to be oversubscribed by more than 10 times, attracting 8,000 to 10,000 buyers.
Sales will be conducted by way of a ballot. Application starts on 5 January and will end at midnight on 16 January.
All applicants must meet public housing guidelines, among them an average monthly household income cap of S$8,000. - CNA/ir
Source : Channel NewsAsia - 04 Jan 2008
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The Lincoln Modern For Sale Apartment / Condo, District 11 , 04.01.2008
TY : [C]ondo [D]uplex [H]iRise [L]oRise [T]ownHse [P]enthse [W]alkUp [M]asionette
TNR=Tenure, DT=District, BDRM=Bedroom, AREA=Built-In, STR=Storey, Price $K=In Thousand
Price are subject to changes , please call (+65) 91002985 for lastest update
Type — H
District — 11
Street — THE LINCOLN MODERN, #07 ABOVE
Tenure — FH
Area — 1410
Age — 03+
Room — 3
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #15
Tenure — FH
Area — 1410
Age — 02+
Room — 3
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #18 TO #30
Tenure — FH
Area — 1300
Age — BN
Room — 3
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #18
Tenure — FH
Area — 1410
Age — 02+
Room — 2
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #20 ABOVE
Tenure — FH
Area — 3600
Age — 03+
Room — 4
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #23 ABOVE
Tenure — FH
Area — 3391
Age — 03+
Room — 4
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #27 ABOVE
Tenure — FH
Area — 3600
Age — 3
Room — 4
Psf — 0
PRICE$ — 0
Type — H
District — 11
Street — THE LINCOLN MODERN, #27 ABOVE
Tenure