Draycott Eight - Draycott Park- SIngapore -District 09 - 10

Draycott Eight - Draycott Park- SIngapore -District 09 - 10

Draycott Eight is attractively located on an elevated site along Draycott Drive with just a few minutes’ walk from Orchard Road – Singapore’s bustling shopping and entertainment belt. Prestigious clubs such as The Tanglin Club and The American Club are just a stone’s throw away. Top schools and institutions are also within the vicinity. Just a few minutes’ walk from the Central Business District (CBD), this exquisite 136-unit condominium is also well served by major roads such as Steven Road, Scotts Road, Orchard Road and the Central Expressway. The Orchar

Developer: Wing Tai Holdings Limited

Singapore Real Estate - Buy ,Sell, Rent ,invest ,Singapore Property

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.

MINDY YONG

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Amaryllis Ville - Newton Road - Singapore - District 11 - 21

Amaryllis Ville - Newton Road - Singapore - District 11 - 21

Amaryllis Ville is uniquely positioned as an attractive investment. It sits strategically
in the premium Newton district. This together with its proximity to Orchard Road and the city will make it highly appealing to any astute investor. So you can live it up at Amaryllis Ville and enjoy many happy returns.
Amaryllis Ville is designed to meet the high expectations of those who are focused on seeking the best in life. Whether you choose to relax indoor and enjoy the spectacular views or step out to challenge yourself in our sizeable lap pool, you can expect nothing less than the biggest and the best at Amaryllis Ville.

Developer: Wing Tai Holdings Limited

Singapore Real Estate - Buy ,Sell, Rent ,invest ,Singapore Property

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.

MINDY YONG

( +65 ) 91002985

mindy@hotvictory.com ( email me )

http://www.hotvictory.com

Callista - Singapore -District 12-14

Callista - Singapore -District 12-14

Introducing The Callista, a stunning new development that will change the face of Serangoon.
Designed to be the epitome of contemporary architecture, The Callista features 87 stylish freehold apartments.

More than just an astute investment, The Callista is an opportunity to embrace a
new age modern lifestyle. It is an invitation to live the future now.

Developer: Evansville Investments Pte Ltd

Singapore Real Estate - Buy ,Sell, Rent ,invest ,Singapore Property

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.

MINDY YONG

( +65 ) 91002985

mindy@hotvictory.com ( email me )

http://www.hotvictory.com

D’Dalvey -Singapore- District 09 - 10

D’Dalvey -Singapore- District 09 - 10

D’Dalvey is an exclusive development located at Dalvey estate , off Stevens Road. Situated on the fringe of Orchard and surrounded by landed houses, D’Dalvey offers privacy, peace and tranquility living. offers a lifestyle living for the exclusive few.

D’Dalvey has a “see through” glass lap pool with a “floating gymnasium”. Apartments sizes ranges from 667 sq. ft. to 3,714 sq. ft.with 1-bedroom, 2-bedrooms, 3-bedrooms and Penthouses with roof garden. D’Dalvey are decked out in top-notch designer fixtures and fittings from Miele cooking appliances, Leicht kitchen system, Catalano sanitary wares and Ulti electrical switches.

D’Dalvey is situated within a 5-minute drive to the American Club and Orchard Road. A short stroll will lead you to the nearest bus stop located at Stevens Road whereby a short bus ride will get you to Orchard Road. Nearby landmarks also included The Pines , Shangri-la Hotel, Raffles Town club, and famous school like ACGS, Raffles Girls and ACS.

Singapore Real Estate - Buy ,Sell, Rent ,invest ,Singapore Property

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.

MINDY YONG

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mindy@hotvictory.com ( email me )

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GIC places $430m with US property hedge fund Rosen

GIC places $430m with US property hedge fund Rosen
It steps up buying of foreign real estate assets as values plunge, growth slows
LONGSTANDING TIES: GIC president Dr Seek says the firm is investing in the Rosen real estate fund as he has known Prof Rosen (above) and his team for a very long time.
SAN FRANCISCO - THE Government of Singapore Investment Corporation (GIC) is investing in the United States property market, where values have fallen heavily in the past year.
GIC committed US$300 million (S$429.2 million) to hedge fund Rosen Real Estate Securities to invest in US real estate.

GIC also acquired a minority stake in the California-based firm run by Professor Kenneth Rosen, chairman of the University of California’s Fisher Centre for Real Estate and Urban Economics, he said in a statement.

Singapore is increasing investment in real estate companies in the US and other markets, where slowing growth and a contraction of global credit markets battered values. The Bloomberg Real Estate Investment Trust Index of 126 companies has dropped by 30 per cent in the past year.

‘US property had a huge fall last year and now would certainly be a better time to buy than last year,’ said Mr Shane Oliver, who helps manage the equivalent of US$113 billion at AMP Capital Investors in Sydney. ‘Whether we have seen a bottom remains to be seen, but there’s certainly value to be had now.’

Dr Seek Ngee Huat, president of GIC’s real estate unit, said in a statement on Monday that his company chose to invest in the fund because he has known Prof Rosen and his team for ‘a very long time’.
Prof Rosen said in an interview: ‘GIC is not in a controlling position. It has a passive stake.’

The fund invests in US real estate investment trusts, homebuilders, mortgage companies and other securities, he said.

The transaction follows GIC’s 11 billion Swiss franc (S$14.4 billion) investment in UBS, which made it the single-largest shareholder of Europe’s largest bank with a 9 per cent stake.

GIC also owns a 3 per cent stake in British Land, Europe’s largest property trust.

The latest investment adds to the portfolio of GIC, one of the world’s 10 biggest real estate investors with properties in 30 countries.

The Singapore Government’s fund manager, set up in 1981 to run the nation’s foreign reserves, holds about a 10th of its more than US$100 billion of investments in real estate.

Growing portfolio

The latest investment, in the Rosen fund, adds to the portfolio of GIC, one of the world’s biggest real estate investors with properties in 50 countries.

The Singapore fund manager holds about 10 per cent of its investments in real estate.

The Rosen fund invests in US real estate investment trusts
BLOOMBERG NEWS
Source : Straits Times - 16 Jan 2008

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Three foreign funds to invest $9.4b in Merrill -TOKYO

Three foreign funds to invest $9.4b in Merrill -TOKYO

Bank continues to look overseas to shore up capital as it reels from sub-prime fallout
SECOND ROUND: Merrill’s latest issuance of shares, to Kuwaiti, South Korean and Japanese entities, comes after last month’s stake sales to Singapore’s Temasek and asset manager Davis Selected Advisers. — PHOTO: BLOOMBERG NEWS

TOKYO - MERRILL Lynch said yesterday that it would issue US$6.6 billion (S$9.44 billion) in preferred shares to investors, including the Kuwait Investment Authority, as the subprime-hit bank continues to look overseas to boost its capital.
Merrill, which is due to report earnings tomorrow, secured as much as US$6.2 billion last month by selling a stake in itself to Singapore’s Temasek Holdings and an asset manager.

The latest deal would amount to a stake in the bank of about 14 per cent, based on its current market capitalisation.

Merrill said it would also issue shares to the Korean Investment Corp and a unit of Mizuho Financial Group, Japan’s second-largest bank.

Merrill chief executive John Thain said in a statement that the deal would help shore up the company’s capital base.

‘These transactions make certain that Merrill is well-capitalised,’ he said. He also said the investment would increase the bank’s strategic opportunities overseas.

The stock has a reference price of US$52.40 and a maturity of 23/4 years. It will pay a yearly dividend of 9 per cent.

Merrill also said the stock would have a lock-up period of one year, where investors would not be permitted to sell, transfer or hedge it, directly or indirectly.

This is the second round of capital raising Merrill has announced in the past month.

On Dec 24, Merrill said it would sell a stake in itself of up to US$5 billion to Temasek and an additional US$1.2 billion stake to Davis Selected Advisers.

The deal also underscores the growing importance of Asian financial institutions.

‘How the times have changed. It’s a mere five years since Merrill was investing in Mizuho,’ said Mr David Threadgold, a banking analyst at Fox-Pitt, Kelton in Tokyo.

‘The people with money are the people who haven’t been dragged down themselves by sub-prime problems,’ he said. ‘And those tend to be sovereign funds and Asian financial institutions.’

Merrill is likely to suffer losses of around US$15 billion on its subprime-related investments, almost twice its original estimate, the New York Times said last Friday.

Merrill has been raising capital after losing billions of dollars on bad bets in the mortgage market.

Rising delinquencies and defaults among mortgages have forced banks to write down the value of bonds and debt backed by the troubled loans, and look for new cash to boost balance sheets.

Last October, the company booked a third-quarter net loss of US$2.3 billion on sub-prime investments.

By contrast, Tokyo’s big banks have avoided the worst of the credit crisis, due to smaller investments in sub-prime-related products.

Mizuho has about US$7.4 billion invested in products related to residential mortgage-backed securities, with US$982 million of that exposed to sub-prime mortgages.

REUTERS, ASSOCIATED PRESS

Source : Straits Times - 16 Jan 2008

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Stanchart lowers Singapore growth forecast

Stanchart lowers Singapore growth forecast

By Bryan Lee

STANDARD Chartererd Bank (Stanchart) expects Singapore’s economy to slow even further this year - to 4.5 per cent - as fears of a recession in the United States loom ever larger.
Weaker exports to the world’s largest economy will drag down trade-related services in Singapore, said the British lender, which cut its forecast from 5.7 per cent previously.

‘The US economy is heading into a recession,’ Stanchart chief economist Gerard Lyons yesterday told 200 of the bank’s clients in a seminar.

‘An American downturn directly hits exports from Asia. An American downturn also indirectly impacts confidence,’ he said.

Stanchart’s lower Singapore estimate follows a cut in the bank’s forecast for US growth this year from 1.4 per cent to 0.5 per cent. Its China and India forecasts are unchanged.

The new Singapore prediction is at the bottom end of the Government’s forecast range of 4.5 per cent to 6.5 per cent growth this year.

It is also more pessimistic than the estimates of most economists in Singapore, which generally hover at around 6 per cent.

Goldman Sachs, which slashed its US forecast to 0.8 per cent on Monday, has a 6.4 per cent bet on Singapore, down from 7.3 per cent previously.

Stanchart Singapore economist Alvin Liew said a US slowdown would hit Singapore manufacturers and trade-related services, such as logistics.

Financial services and other growth drivers, such as transport engineering, will also moderate after the high base they set last year.

Strong domestic demand, however, will keep Singapore in the black, unlike in 2001 when the Republic was dragged into the red by a contracting US economy.

Growth in sectors such as construction provided 80 per cent of the country’s economic expansion last year, said Stanchart South-east Asia economist Hui Cheung Tai.

Stanchart expects the US slowdown to be a protracted one, lingering on to next year.

Dr Lyons reckons the severe downturn will prompt the US Federal Reserve to slash its benchmark interest rate to 3 per cent by the middle of the year.

‘In my view, they should go even lower. Do not rule out US rates going all the way down to 1 per cent,’ he said, noting that current economic conditions were worse than the last time the Fed rate was that low.
Source : Straits Times - 16 Jan 2008

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Hedge fund gets into property development -Singapore

Hedge fund gets into property development -Singapore

By Gabriel Chen
PRELUDE: When completed, Ferrell Residence will provide about 30 luxury flats and penthouses. — PHOTO: FERRELL ASSET MANAGEMENT

HEDGE funds do not usually get into property development, but a home-grown firm is venturing into the real estate game despite signs the roaring high-end market is slowing.
Ferrell Asset Management will develop Ferrell Residence, a project consisting of luxury flats and penthouses on a 31,371 sq ft site opposite Anglo-Chinese School (Barker Road), next to City Tower.

The freehold estate in Bukit Timah will have about 30 units worth at least $2,300 per sq ft.

Ms Jeanna Chan, executive director of Ferrell Asset Management, which manages more than US$700 million (S$1 billion) worth of assets, said the project would be launched around the middle of the year.

It signals a major shift for Ferrell. It has been a big investor in existing properties and counts real estate players such as Indonesia’s Lippo Group as investors, but developing has not been in its game plan.

Ms Chan, however, sees it as a logical move.

‘Development is a natural and strategic extension of our experience in managing properties,’ she explained. ‘I feel this is an opportunistic move in light of our outlook for local and regional properties.’

Ferrell’s property portfolio includes The Trillium, 100 condominium units at RiverGate and 52 per cent of strata units in 79 Anson.

Ferrell is one of the few funds that have spent big money on single residential projects.

One play involved outlaying more than $182 million to buy units at RiverGate three years ago.

While non-property firms have ventured into real estate development - publisher Eastern Holdings is one - it is unusual for hedge funds.

Most funds typically invest in properties directly or via other property funds or team up with developers to take stakes in projects.

‘When we have a property boom, it is not surprising that we have more players going into property development than the traditional developers,’ said Daiwa Institute of Research analyst David Lum.

While industry watchers do not doubt Ferrell’s ability to profit by buying and selling properties, they say developing is a different ball game altogether.

‘You have to market the building. You need coordinators with real estate experience to manage the building. It’s a case of specialising in what you do best,’ Knight Frank director of research and consultancy Nicholas Mak said.

‘Ferrell has always been deemed to be different compared to our peers in this market. Our principals are business-oriented in outlook other than being hedge fund managers,’ Ms Chan said.

Ferrell’s move may encourage other funds with the financial muscle to develop their own properties.

With assets so pricey, spotting an undervalued real estate deal becomes more difficult, so hedge funds would rather develop their own to sell.

‘Now that interest rates have gone down, liquidity will be improved, and that will be an excellent time for the likes of private equity firms and funds to come back again,’ said Jones Lang LaSalle Asia Pacific head of investments Lui Seng Fatt.

With interest rates being driven down further, sources of funding are becoming more attractive for hedge funds, he added.

Source : Straits Times - 16 Jan 2008

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Singapore again ranked world’s second-freest economy

Singapore again ranked world’s second-freest economy

The Republic closes in on HK and comes out tops in business and labour freedom

By Nicholas Fang
SINGAPORE has closed the gap on long-time rival Hong Kong in a ranking of the world’s freest economies - a key indicator of a business-friendly environment.
The Republic came second in the ranking, finishing behind Hong Kong for the 14th straight year.

Singapore scored 87.4 on the Index of Economic Freedom, which is published annually by The Wall Street Journal and American conservative think-tank The Heritage Foundation. This was a 0.2 percentage point gain over its score last year and narrows the gap with Hong Kong to 2.9 percentage points.

The gap last year had widened to 3.4 percentage points, due partly to Singapore’s lower scores on the degree of freedom in its financial sector and taxation.

This year, the editors of the index lauded Singapore as the top scorer in terms of business and labour freedom.

Besides those two factors, the index takes into consideration eight other types of freedom, including trade and monetary, as well as the size of the government and freedom from corruption.

Scores between zero and 100 are given, and the ratings in each category are averaged to produce an overall score. A total of 157 economies were surveyed.

Publishers of the index say that economic freedom has long been related to good economic performance. Hong Kong scored the highest in four of the 10 categories to top the rankings.

And while it may be easy to dismiss the latest index as one of many disparate economic rankings that use a wide range of measure, experts say that it has special significance for Singapore.

Action Economics economist David Cohen said: ‘It is a reflection of the attractiveness of a location to conduct business in. It indicates little government interference and a low tax rate, among other factors.’

CIMB-GK economist Song Seng Wun agreed, saying: ‘With two small open economies like Singapore and Hong Kong, which are dependent on external investment for growth, it’s no surprise that they are at the top.

‘The two economies share much of the same mindset, which is to be open, transparent, flexible and accommodating in order to attract more business and investment. It is a reminder of some of the factors and foundation of Singapore’s success and progress.’

With Australia coming in fourth, the Asia-Pacific has three of the world’s five freest economies.
Source : Straits Times - 16 Jan 2008

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Building boom may lift deals to new high -Singapore

Building boom may lift deals to new high  -Singapore

Record $24.5b in contracts last year, with private sector leading the way

By Joyce Teo, Property Correspondent

ROCKETING demand propelled the construction industry to record levels last year, eclipsing even the glory days of 1997, with even more to come this year.
Contracts totalling $24.5 billion were awarded last year, up 46 per cent from the $16.8 billion in 2006 and just above the $24 billion in the boom year of 1997.

The figures cover private projects and public works, such as new MRT lines, but private sector demand was the key driver behind the record numbers.

Mega projects like the Marina Bay Sands integrated resort (IR), Marina Bay Financial Centre and Somerset Central lifted private commercial contracts to a record $5.1 billion, according to official figures announced at an industry seminar yesterday.

Demand shows no sign of slowing, with contracts for this year forecast at between $23 billion and $27 billion, depending on whether some large projects get held back.

The bulk of the demand this year and next will come from developments such as the IRs and the Downtown MRT line.
Construction stocks also prospered. Chip Eng Seng closed at 55 cents yesterday, below its high last year but up from a low of 31 cents last March. Lian Beng Group has risen from a low of 22 cents in March to 63.5 cents yesterday.

But there are concerns amid the bright outlook, including rising costs.

Dr Mohamad Maliki Osman, Parliamentary Secretary for National Development, told the Construction and Property Prospects 2008 seminar that high demand will keep exerting pressure on resources.

This demand has already placed ‘a tremendous strain’ on resources and has led to a ‘chaotic price escalation’, said Mr Seah Choo Meng, executive chairman of Davis Langdon & Seah Singapore, one of the seminar speakers.

He warned that if prices are not reined in, they will hurt the industry and even the overall Singapore economy.

‘There will be some negative impact this year, but we have built up a momentum which can be maintained for the next two years,’ he said.

The Government has reduced some pressure by putting more than $2 billion worth of projects on the backburner until 2010 at least, with more to come.

‘All ministries are currently combing through their list of projects to identify more projects for rescheduling,’ said Dr Maliki.

He urged the industry to move towards sustainable construction, which is environmentally friendly and can enhance Singapore’s resilience against supply fluctuations in basic construction materials.

He also said the Building and Construction Authority (BCA) will release information on demand to enable the industry to get a better feel of the market and plan more efficiently.

It has all been a stark turnaround for a sector that was in the doldrums just three years ago. Now that things are rosier, contractors are facing new challenges.

The industry continues to grapple with the uncertainty of material prices, said Singapore Contractors Association president Desmond Hill.

Ready-mixed concrete is around $130 a cu m, compared with about $190 during the Indonesian sand ban last year and $74.40 at the end of 2006. Prices could rise to $150 per cu m in the next few years.

Steel bars cost about $1,000 a tonne, up from $744 a year ago, said the BCA.

There is also a lack of middle management staff as many bailed out of the sector in the last downturn, Mr Hill said.
Source : Straits Times - 16 Jan 2008

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Record sales of new Singapore private homes in 2007

Record sales of new Singapore private homes in 2007

Total of 14,826 sold, mostly in first nine months, before sales slid sharply at year-end

By Fiona Chan, Property Reporter
HOMEBUYERS picked up a record number of new private homes last year - before demand dipped sharply at year-end.
They bought 14,826 new homes in the year, up from 11,147 the year before, according to the latest figures from the Urban Redevelopment Authority (URA).

This all-time high figure was boosted by sales in the first nine months, when 90 per cent of last year’s deals were done, said property consultancy CB Richard Ellis (CBRE).

Demand then went into a freefall in the last months of the year amid a slew of worries, including concerns over the United States sub-prime mortgage crisis.

New home sales, which had averaged 1,480 a month between January and September, fell to below 600 per month in October and November.

Last month, a mere 305 deals were done, the lowest number since the URA started tracking monthly new home sales in June. All the figures exclude executive condominiums.
December also saw a dip in the median price of new homes. Price gaps within each category of new homes also narrowed, said consultancy Jones Lang LaSalle (JLL). It noted that the gap between the highest and lowest prices for city-centre and mid-tier homes narrowed to its smallest in recent months.

But the year-end decline was ‘expected’, said JLL’s head of Singapore research, Mr Chua Yang Liang. He said the ‘looming uncertainty from the US sub-prime issue’, coupled with the usual ‘lull period’ in December led to fewer launches of new projects and fewer home sales.

Developers tend to launch fewer projects at the end of the year because of the holidays. They launched only 1,673 units in the fourth quarter last year, about a third of that in each of the first three quarters.

But a bigger reason for the slowdown could be the fact that recent asking prices have soared so much, said Mr Ku Swee Yong, director of business development and marketing at Savills Singapore. ‘A lot of recent new home transactions are at record-high prices,’ he said.

Last year, developers sold almost 200 new homes at more than $4,000 per sq ft (psf), Savills said - a level never reached in previous years.

Even in December, three units at the Ritz-Carlton Residences in Cairnhill went for more than $5,000 psf.

Units at the Marina Collection also fetched record prices for Sentosa Cove last month at a median price of $2,734 psf, said CBRE.

‘There is now a 15 to 20 per cent gap between what developers are asking for and what buyers seem willing to pay,’ Mr Ku said.

This has led to a ’stand-off’ and a more cautious mood among buyers which may persist well into this year, he added.

Already, the median prices of new uncompleted units have started to slide, said Knight Frank. They eased from $1,110 psf in November to $1,063 psf last month.

New home sales last month dropped off most in the mid-tier and suburban regions, consultants said.

Only 56 mid-tier units were sold in December, 80 per cent less than in November. For suburban projects, the number of units sold fell 35 per cent to 60.

In the prime city centre, new home sales jumped 36 per cent to 175, boosted by a bulk purchase of 97 units in Goodwood Residences at a median price of $3,200 psf.

New launch Zenith in Zion Road also helped city-centre sales, with 37 units sold at a median price of $1,665 psf.

Source : Straits Times - 16 Jan 2008

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GIC pumps $9.8b into troubled Citigroup

GIC pumps $9.8b into troubled Citigroup
By Grace Ng, Finance Correspondent
THE Government of Singapore Corporation (GIC) is investing US$6.88 billion (S$9.82 billion) in the troubled American banking giant Citigroup, it said last night.
It is GIC’s second largest investment and came on a day of dreadful news for Citi, which has been battered by the credit crisis rocking the global financial system.

Citi reported US$9.83 billion in net losses for the fourth quarter, and is reportedly planning to axe 20,000 staff or more. It also took a massive US$18.1 billion write-down for exposure to dodgy sub-prime mortgages.

But GIC stressed yesterday that what at first glance might look like a risky investment has built-in safeguards that will protect its downside. The use of a certain kind of security means GIC gets a relatively lower rate of return, but has more protection if Citi’s share price plummets further.

Indeed, the investment’s structure ‘gives appropriate downside protection’ and meets GIC’s ‘long-term investment objective in terms of risk and return’, said Dr Tony Tan, GIC deputy chairman and executive director, in a statement yesterday.

Dr Tan described Citigroup as ‘an excellent addition to GIC’s portfolio as it is one of the largest banks in the world with an attractive global franchise’. He added that GIC has confidence in Citigroup’s board of directors, who have taken ‘decisive action to… strengthen the balance sheet and profitability of the bank’.

The Straits Times understands that the long-standing ties between GIC senior executives and Citi’s leadership were partly why GIC was one of the first institutions the US bank approached during this most recent round of cash-raising.

Citi chief executive Vikram Pandit told a results briefing in New York yesterday that GIC is ‘a widely respected, long-term oriented investor’ and that he has ‘known the principals for years’. The announcement caps a dismal period for Citi, which has been desperate to shore up its capital base.

GIC’s investment was the largest in a new round of fund-raising that netted a total of US$12.5 billion from private investors, including the Kuwait Investment Authority, Saudi Prince Alwaleed bin Talal and asset management firm Capital Research & Management.

Citi is also raising US$2 billion more from a public offering.

GIC made a similar strategic investment less then a month ago, spending 11 billion Swiss francs (S$14.45 billion) to buy a stake of about 9 per cent in the beleaguered Swiss bank UBS, another victim of the sub-prime meltdown.

The two deals are structured differently. The UBS investment is in the form of ‘convertible notes’, which pay an annual return of 9 per cent. These must be converted into UBS stock within two years of the date of issue.

The Citi deal employs a type of security called a perpetual convertible security. This provides a fixed annual dividend of 7 per cent and allows GIC to hold the securities for as long as it chooses, subject to certain conditions. GIC may convert these securities into shares at a fixed price, which will be 20 per cent above the stock’s average price over the next few trading days.

Citigroup shares closed in New York on Monday at US$29.06, a drop of 47 per cent over the last year.

GIC, which manages Singapore’s reserves, already holds a 0.3 per cent stake in Citi. The new investment will allow it to raise its holding to about 4 per cent, making it one of the largest single shareholders. But GIC stated that it is not seeking a board seat at Citi.
Source : Straits Times - 16 Jan 2008

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Half of workers to get full subsidy -Singapore

Half of workers to get full subsidy  -Singapore

Bottom earners will still get 80% subsidy in C-class wards and 65% in B2 class

By Salma Khalik, Health Correspondent

JUST how much of your hospital bill will be covered by Government subsidies after means testing kicks in is clearer now, after Health Minister Khaw Boon Wan yesterday gave more details of the scheme.
The bottom half of all workers will continue to get full subsidy at public hospitals - 80 per cent in a C-class ward and 65 per cent in a B2-class ward.

The top 20 per cent of earners will still get subsidised, but by a lower amount - 65 per cent in C- class and 50 per cent in B2.

And if your income falls between these groups, the subsidy level will be on a sliding scale, between what the top and bottom earners pay.

How will these income levels be decided? Mr Khaw told 250 union leaders yesterday that using the current month’s salary was not a good idea, because people who fall sick in a month when they get a bonus would be penalised.

Instead, he will look at the average of the past 12 months’ salary.
The details are still being worked out, but using the June 2006 Labour Force survey as an indicator, the bottom half of earners have monthly incomes of $2,040 or less.

Mr Khaw said he decided on the upper and lower limits after getting feedback from more than 1,000 people in the past week, after he announced plans for means testing.

He has explained that basing the amount of subsidy on income levels for the employed, and housing types for retirees, housewives, children and the unemployed, is inevitable.

It will enable the Government to provide better care for the poor in the future, without also attracting the well-off to compete for scarce resources.

Yesterday’s session at NTUC Centre, his third so far, was a lively one. Exchanges were fiery and humorous at times during the 21/2-hour session, as Mr Khaw fielded questions such as how the subsidy levels would be decided, whether there would be enough subsidised beds, and whether the asset-rich but cash-poor elderly could cope with the high cost of outpatient care.

He spent much of the night reassuring the audience that he prefers to err on the side of generosity, and that the majority of people will not need to worry.

This led one unionist, Mr Philip Soh, to jokingly urge the minister to ‘please make more errors’.

But to another suggestion that older people should get more subsidy, or even free treatment, Mr Khaw gave an emphatic ‘no’.

‘There are rich elderly and poor young,’ he said. That is why he has decided to use personal income or housing-type to determine their ability to pay.

At the end of the dialogue, NTUC secretary-general Lim Swee Say promised to support means testing when Mr Khaw raises the subject in Cabinet.

‘After tonight’s session, I feel very reassured,’ said Mr Lim, who is also Minister in the Prime Minister’s Office.

While the Government is willing to help, he said people must also help themselves.

He urged the union leaders present to get members, especially casual workers, to contribute to their Central Provident Fund (CPF) savings and to use their Medisave to buy MediShield, the national health insurance scheme.

He said that last year, the union managed to persuade 6,000 casual workers to open CPF accounts and to contribute to Medisave.

Different subsidies

Bottom 50% income bracket:

Source : Straits Times - 16 Jan 2008

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CapitaLand, NUS sell Hitachi Tower - Singapore

CapitaLand, NUS sell Hitachi Tower - Singapore

By UMA SHANKARI
CAPITALAND has sold its 50 per cent stake in Hitachi Tower for $403.5 million, the property giant said yesterday.
Upon the deal’s completion, CapitaLand will recognise a gain of $110.1 million, it said.

The National University of Singapore, which owns the remaining 50 per cent of the Collyer Quay office building, also sold its stake.

The deal took into consideration the agreed value of the 999-year leasehold Hitachi Tower at $811 million, or about $2,900 per square foot (psf) of net lettable area. The consideration was arrived at on a willing-buyer willing-seller basis, CapitaLand said.

The developer did not name the buyer in its filing to the Singapore Exchange, but sources said that the building was bought by a fund linked to Goldman Sachs.

Goldman Sachs bought the next-door Chevron House, formerly known as Caltex House, for $2,780 psf in August last year. Chevron House is on a site that had a remaining lease of 81 years at the time of the transaction.

The 37-storey Hitachi Tower has a net lettable area of around 279,600 square feet. The building had close to 100 per cent occupancy as at Dec 31, 2007, and key tenants include Hitachi Asia and American Express.

Market watchers have said that it makes sense for Goldman to own two adjoining office blocks as it can take advantage of managing them together, as well as look into the possibility of redeveloping both properties collectively.

A Goldman Sachs real estate fund also bought DBS Towers 1 and 2 on Shenton Way in November 2005 for $690 million, or around $800 psf of net lettable area.

Based on CapitaLand’s unaudited financial statements for the nine months ended Sept 30, 2007, the group’s earnings per share would have increased from 74.4 cents to 78.3 cents assuming that the sale was effected on Jan 1, 2007, the company said.

CapitaLand’s shares shed 13 cents to close at a one-year low of $5.62 yesterday amid a broad fall in the Singapore stock market. The company’s stock price has dropped some 10.4 per cent since the start of the year.
Source : Business Times - 16 Jan 2008

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Soxal to build $250m hydrogen plant on Jurong Island - Singapore

Soxal to build $250m hydrogen plant on Jurong Island - Singapore

By MATTHEW PHAN
(SINGAPORE) Neste Oil’s decision, announced a month ago, to build the world’s largest biodiesel facility in Tuas, is already yielding add-on investment.
At a joint press conference yesterday, Singapore Oxygen Air Liquide (Soxal), a subsidiary of French- owned Air Liquide, said it would invest $250 million to build Singapore’s first world-class hydrogen facility on Jurong Island to support Neste, as well as other refiners in the area.

Hydrogen is used to reduce the sulphur content in automotive fuels, and refiners will need it to meet increasingly stringent vehicle emission standards in Singapore, like the Euro IV, Soxal’s regional director for South-east Asia, Lee Chun Wah, told BT.

It is also needed to process heavy crude oil into usable fuels, and is used by the chemical industry as well.

Soxal’s investment will more than double existing hydrogen capacity in the Jurong Island and Tuas area, said Mr Lee.

The plant, called a Steam Methane Reformer, will produce some 100,000 cubic metres of hydrogen per hour.

Soxal will also build a 30km-long pipeline network from the plant on Jurong Island to Neste’s upcoming biodiesel plant in Tuas. The pipeline will serve other refining customers along the way.

Currently, hydrogen capacity on Jurong Island is largely ‘merchant business’, which means the refiners build their own in-house hydrogen plants, said Mr Lee. There are a few small third-party providers, including Soxal, which have only about 5,000 cu m per hour of capacity.

Hydrogen production is capital intensive. The plant will employ 20-30 highly skilled engineers when completed, he said.

Soxal will start construction soon and complete the plant by 2010, in order to support Neste’s biodiesel plant, which is scheduled to come onstream by the end of that year.

Neste’s plant will cost some $1.2 billion and have a designed capacity of 800,000 tonnes a year of NExBTL, its proprietary clean diesel fuel.

Fielding several questions about the rising price of crude palm oil, which will be the plant’s main feedstock, Risto Rinne, president and CEO of Neste, said the firm’s technology allows it to use many different feedstock - from vegetable oils like jatropha, to algae, or even animal fat - to produce biodiesel.

When the plant comes onstream in 2010, ‘it won’t be only palm oil’, he said. ‘There will be other feedstock by that time.’

Nonetheless, over 50 per cent of the plant’s feedstock will be palm oil, he estimated.

According to Reuters, crude palm oil prices rose over 50 per cent in 2007, and touched recent highs of over $1,000 a tonne. In Singapore, a 600,000 tonne biodiesel plant owned by Australia’s Natural Fuel is running at just 10 per cent of capacity, Reuters said, quoting a market source close to the company.

Mr Rinne said Neste, which is based in Finland, will source palm oil from Malaysian and Indonesian suppliers certified by the Roundtable on Sustainable Palm Oil.
Source : Business Times - 16 Jan 2008

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