Two more Singapore hotel sites put up for tender

Two more Singapore hotel sites put up for tender

By KALPANA RASHIWALA
TWO more hotel sites have been put on the market - a 99-year leasehold plot in Race Course Road, offered by the Urban Redevelopment Authority, and a freehold plot in Bencoolen Street now occupied by Peony Mansion.
 
On the block: Peony Mansion and the adjoining state sites can be redeveloped into a boutique hotel with about 200 rooms 
Peony Mansion’s owners want $50 million, which works out to about $850 per square foot of potential gross floor area including an estimated $2.65 million payable to the state for two smallish plots - one is a road ingress and the other houses an electrical substation - behind Peony Mansion.

The two plots total 2,760 square feet, while Peony Mansion runs to 11,964 sq ft. Peony Mansion comprises 33 apartments and two shop units.

Approval for a collective sale has been secured from owners controlling at least 80 per cent of share values - under the old en bloc rules.

Under Master Plan 2003, Peony Mansion is zoned for hotel use with a 4.2 plot ratio - the ratio of maximum potential gross floor area to land area.

Peony Mansion and the adjoining state sites can be redeveloped into a boutique hotel with about 200 rooms, assuming there are no food and beverage outlets. Peony Mansion will be marketed through a tender that closes on April 4.

Over in the Little India area, URA has launched the tender for a 0.9 hectare plot above Little India MRT station.

Jones Lang LaSalle regional director and head of investments Lui Seng Fatt says that assuming the plot is developed into a hotel of up to four-star standard and with about 500 rooms, the completed property would be worth about $600,000 a room or a total of $300 million.

Assuming construction costs of about $500 psf of gross floor area, the site’s land value works out to about $135 million or $400 psf per plot ratio (psf ppr).

However, CB Richard Ellis executive director Li Hiaw Ho reckons that top bids for the site will come in higher - around $600-700 psf ppr - given the plot’s location above an MRT station.

‘The plot can be developed into a four-star property. Bidders are also likely to include some retail/food & beverage facilities.’

The plot has a 3.5 plot ratio, resulting in a maximum gross floor area of 338,417 sq ft.

The tender for the confirmed list site closes on May 21.

Source : Business Times  - 28 Feb 2008

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CapitaLand plans US$300m Vietnam fund - Singapore

CapitaLand plans US$300m Vietnam fund - Singapore

It has also formed a partnership with a Vietnamese investment company
By UMA SHANKARI

CAPITALAND, South-east Asia’s largest property developer, plans to set up a US$300 million property fund in Vietnam.
The company also said yesterday it has forged a partnership with Vietnamese firm Nam Thang Long Investment Joint-Stock Company to seek investment opportunities in Vietnam.

With the new business initiatives, the developer aims to strengthen its presence in Vietnam, which it has identified as one of its key Asian markets.

The news sent CapitaLand’s shares up as much as 27 cents - or 4.2 per cent - yesterday. The stock closed the day 16 cents up at $6.56.

In its filing to the Singapore Exchange, CapitaLand said it will leverage on its real estate and fund management capabilities to set up its first property fund to invest in Vietnam. It intends to take a 30 per cent stake in the fund, which has a target size of US$300 million.

To secure other investors in the fund, CapitaLand has signed a memorandum of understanding with Citi Private Bank, one of the world’s largest wealth managers which serves high net worth individuals with more than US$10 million in net worth each.
 
The partnership with Nam Thang Long Investment Joint-Stock Company, on the other hand, will allow CapitaLand to seek further business opportunities in Vietnam with a real estate focus. The two companies hope to develop residential properties and commercial and residential mixed developments together.

CapitaLand already has a significant presence in Vietnam, mainly in the residential and service residences sectors in Hanoi and Ho Chi Minh City.

‘Our aim is to deepen CapitaLand’s presence in Vietnam to become a significant long term real estate player here,’ said CapitaLand chief executive Liew Mun Leong.

‘We’re confident of doubling our residential pipeline in Vietnam from the present 2,800 homes to about 6,000 in the next three years and we’re also looking for opportunities in the office, retail, and integrated leisure, entertainment and conventions sectors.’
Source : Business Times  - 28 Feb 2008

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Keppel Land unveils Viet project plans - Singapore

Keppel Land unveils Viet project plans - Singapore
KEPPEL Land, one of the largest property developers in Vietnam, on Tuesday presented the concept plans for its Saigon Centre in Ho Chi Minh City to a group of delegates led by Singapore President SR Nathan and Vietnam Deputy Prime Minister Hoang Trung Hai.
 
Distinguished guests: (From left) Vietnam Ambassador to Singapore Nguyen Trung Thanh; Singapore President SR Nathan; Skidmore, Owings & Merrill managing partner Anthony Vacchione; Keppel Corporation executive chairman Lim Chee Onn; and Vietnam Deputy Prime Minister Hoang Trung Hai at Keppel Land’s concept plan presentation on Tuesday
Located in the central business district of Ho Chi Minh City, Saigon Centre is a mixed-use development on a two-hectare site fronting Le Loi Boulevard, the city’s main thoroughfare.

Phase One, completed in 1996, is a 25-storey building that includes a three-storey retail podium and 89 units of service apartments. KepLand said that it and local partners Sowatco and Resco would develop an iconic landmark integrating subsequent phases of Saigon Centre.

Source : Business Times  - 28 Feb 2008

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Singapore HDB urged to be more compassionate in arrears cases

Singapore HDB urged to be more compassionate in arrears cases

By Chio Su-Mei,

SINGAPORE: The Housing and Development Board (HDB) came under the spotlight in Parliament on Tuesday with MP Ong Kian Min urging it to exercise compassion in cases of mortgage arrears.

The MP for Tampines GRC said that while the lower income group in other countries could move to cheaper housing, Singaporeans do not have that option as HDB flats are already the cheapest form of housing.

He recounted how nine families in his constituency approached him for help on Monday night, having received compulsory acquisition notices from HDB due to mortgage arrears.

Among them was 53-year-old Judy Mitchell, a single parent with a working daughter and an aged mother.

“When I lost my job, I had a hard time finding a job. A lot of it was due to age. If I did get a job, it was not adequate to survive, but I would just take it on, so that at least I could get the momentum moving,” said Judy.

She is behind in her mortgage payments for almost six months now, and her arrears come up to almost S$11,000.

She had offered to repay the HDB some S$800 a month, but she said the housing board insisted on a repayment scheme of S$2,000 a month.

Judy said: “I would like HDB to look at my actual situation. I am the sole breadwinner in this family, and looking at what my total salary package is, (I hope) they could compromise on an amount I know I am able to pay monthly without a default, and also able to at least go to work, pay for my water and lights. This is my home. I really want to save my home.”

Mr Ong has written two appeals to the HDB on her behalf, but these have been rejected.

For now, Judy and her family are waiting a valuation of their five-room flat before deciding on their next step.

Mr Ong said even if Judy decides to sell her current flat, she would still be unable to purchase a smaller flat, and is unlikely to get a loan from HDB or a commercial bank due to her age.

“I cannot imagine in Singapore, where we pride ourselves in our home ownership policy that a family of two working adults supporting one elderly family member would have their HDB flat repossessed and be left homeless. What is our social compact? There are those among us like Mdm Judy Mitchell who are trying their best, working hard, wanting to be self-reliant. I believe the government should step in and give them a helping hand,” Mr Ong said.

The need for a more supportive housing board was also brought up by Mr Yeo Guat Kwang, an MP for Aljunied GRC.

Speaking in Mandarin, Mr Yeo touched on the problems faced by Singaporeans who have problems selling off a bigger flat to downgrade to a smaller unit.

Saying that HDB should help Singaporeans downgrade, Mr Yeo reminded the housing board that its mission is to help Singaporeans own their homes.
- CNA/so

Source : Channel NewsAsia  - 27 Feb 2008

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4-room Singapore flats available at Punggol Spring

4-room Singapore flats available at Punggol Spring

By Lynda Hong

SINGAPORE: The Housing and Development Board is offering 494 four-room flats at Punggol Spring under the Build-To-Order (BTO) System – the first BTO launch for this year.

HDB has received 278 applications so far. Interested applicants have until 17 March to apply for a unit there. Prices of units range between S$204,000 and S$259,000.

HDB advises those unsuccessful in recent sales exercises to consider applying for this and other BTO projects in the new towns, where the larger supply of flats gives buyers more choices.

Punggol Spring is within walking distance from Damai LRT station. Residents can also look forward to the upcoming Punggol Town and easy access to the MRT station and bus interchange.
- CNA/so

Source : Channel NewsAsia  - 27 Feb 2008

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Singapore HDB launches executive condo housing site in Yishun Ave 11

Singapore HDB launches executive condo housing site in Yishun Ave 11

By Margaret Perry,

SINGAPORE : The HDB is launching an executive condominium housing site in Yishun.

The land at Yishun Avenue 11 is being made available under the Reserve List System.

This means developers interested in purchasing the land, must submit their application with the minimum price they are willing to bid for the land.

The site has an area of 15,080 square metres and a gross plot ratio of 2.8.

Upon acceptance of the applications, HDB will release the land for sale by tender.

The sale has a lease term of 99 years. - CNA/ch

Source : Channel NewsAsia  - 27 Feb 2008

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Singapore SLA to move out of Shenton Way to Revenue House

Singapore SLA to move out of Shenton Way to Revenue House 

Agency cuts amount of office space it needs and will likely save on rental costs

By Fiona Chan, Property Reporter 
 
THE Singapore Land Authority (SLA) will move its offices from Shenton Way to Novena this year, freeing up precious downtown office space for the private sector.
It will take up five floors, or 6,600 sq m, at Revenue House in Thomson Road. This is about three-quarters of what it occupies currently at 8 Shenton Way - formerly known as Temasek Tower.

The move is in line with the Government’s efforts to ease the shortage of office space in the central area. The acute supply crunch, coupled with rising space demands from expanding businesses, has sent prime office rents soaring in the last year.

SLA said yesterday that it is able to cut its space requirements at Revenue House as it is moving towards space-efficient work practices.

As an added benefit, SLA is also likely to save on rental costs with the relocation, property consultants said.

SLA said it will be paying ‘market rent’ for the space at Revenue House, owned by the Inland Revenue Authority of Singapore (Iras). This is likely to be in the ’single-digit’ per sq ft (psf), said Mr Donald Han, managing director of property consultancy Cushman & Wakefield.

In contrast, asking rents at 8 Shenton Way are $11 to $12 psf - roughly what SLA would have had to pay to renew its lease there.

The 24-storey Revenue House, Iras’ headquarters, is now full, so information on its asking rent is not available.

Other buildings in the area go for as little as $9 psf, depending on their age, said Mr Han.

Goldhill Plaza, which is about 30 years old, offers single-digit rents. Newer buildings such as United Square and Novena Square are said to be asking for $10.50 to $11.50 psf.

Revenue House, which opened in 1996, is likely to command ‘high single-digit rents’ psf, Mr Han estimated.

He said prime office rents in Novena are not much lower than in some downtown buildings as the area is becoming popular with multinational corporations that do not need to be in the heart of the city.

However, SLA may get a bulk discount in Revenue House. The space was set aside by Iras, which may have decided not to renew the leases of some tenants when they expired, Mr Han said.

Other agencies moving out of the Central Business District include the Infocomm Development Authority and the Economic Development Board.

Fittingly, SLA is one of the state departments tasked with tackling the office crunch by leasing out the vacant properties it manages. It has tendered out 104,000 sq m of space to meet immediate office needs.

The agency will release another 32,300 sq ft of space in the current quarter, including the former Civil Aviation Authority of Singapore office in Upper Changi Road North and the former Siglap-Changi Community Centre.
Source : Straits Times  - 27 Feb 2008

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A place for residents - and birds and trees - Singapore

A place for residents - and birds and trees  - Singapore

Part of Sungei Ulu Pandan woodland to be cleared for flats, but nature lovers’ concerns also heeded
By Tania Tan 
BEST OF BOTH WORLDS: HDB promises a ‘green buffer’ separating the residential area from the woodland.
 
THEY wanted to save the birds and the trees.
The Housing Board needed the area to build five new blocks of flats to replace old ones.

The 1,330 people who signed a petition to save the flora and fauna in the Sungei Ulu Pandan woodland did not get their way.

A part of the area will be cleared, with work having begun last month.

But the HDB, heeding the views of nature lovers, has promised a ‘green buffer” of about 30 trees in a 30m strip separating the proposed residential area from the woodland.

It has also pledged to clear the area in stages so that birds and other animals can migrate to adjacent wooded areas.

The petitioners, ranging from students and retirees to architects and scientists, wrote to the Prime Minister earlier this month. They said they ‘truly value the presence and continued existence of this little remaining woodland’, and that its destruction would ‘be a great loss to our community and the nation’.

The construction will uproot around 150 trees in the 3.7ha stretch, which is tucked away next to Commonwealth Avenue West. There, some trees are almost 40 years old.

And a study of the area by The Nature Society last year uncovered many bird species, including a pair of endangered changeable hawk eagles, which call the woodland home.

But the area is also needed for Ghim Moh residents affected by the Selective En-Bloc Redevelopment Scheme (Sers).

The HDB had announced plans in 2006 for new two- to five-room flats for almost 1,000 households, to replace blocks in the area that were over 30 years old. Construction is slated for completion in 2011.

A check with the HDB revealed that it had no other suitable sites for the project.

Dr Kennedy Chew, an IT researcher who helped to coordinate the petition, conceded that new flats were needed.

‘But we are hoping that the Government will consider moving the development somewhere else nearby instead,’ added Dr Chew, a long-time resident of the area.

Dr Ho Hua Chew, who chairs the Nature Society’s conservation committee, said: ‘The woodland provides a home for birds that have otherwise been displaced in this urban jungle.’ There are only about five known changeable hawk eagle nesting sites in Singapore, he added.

But Mr Christopher de Souza, an MP for the Holland-Bukit Timah GRC and the area’s custodian, said the development was a much-needed one for the Ghim Moh precinct and one that many residents were looking forward to.

The site had been chosen, he said, as it was near the blocks that are to be demolished under Sers.

Nearly four in 10 of the area’s affected residents are elderly people who have lived there for decades. They want to continue residing among friends and family.

The HDB, responding to queries, said the eagles’ nest was not within the site, and it is working with the National Parks Board to ensure the nest’s well-being.

Said Mr de Souza: ‘We hope to achieve the best of both worlds
 

Source : Straits Times  - 27 Feb 2008

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Cut Singapore income tax to beat inflation, boost economy

Cut Singapore income tax to beat inflation, boost economy 
 
THE Government has been urged to cut personal income tax rates as a way of helping Singaporeans deal directly with the rising cost of living.
In making the call, Ms Lee Bee Wah (Ang Mo Kio GRC) said such a cut ‘will give them a more direct dosage of medicine to deal with inflation and this can, in turn, help to stimulate the economy further’.

It is a ‘better permanent solution’, she added, contrasting it to tax rebates.

She had earlier suggested that these rebates be made a continual feature of the annual Budget, which would be an improvement over the one-off rebate given this year.

The new Budget gave a 20 per cent income tax rebate, capped at $2,000, for the 2008 Year of Assessment instead of a much-anticipated permanent cut in income tax rates.

Ms Lee also felt that the lower income tax rates would attract talent to work in Singapore rather than in other places such as Hong Kong.

The Chinese territory has lower tax rates. Its top marginal personal tax rate is 15 per cent - 5 percentage points lower than Singapore’s top rate.

Source : Straits Times  - 27 Feb 2008

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Rent relief for businesses? - Singapore

Rent relief for businesses?  - Singapore
COSTLY SPACE: Blistering rent increases have hit small businesses hard and Dr Loo suggests that a double tax deduction be given to help them cope.
 
‘I wonder if the Finance Minister would consider giving businesses a little short-term help by allowing double deduction of their rental expenses.
This would effectively help them reduce 18 per cent of their high rental costs and help those whose rents were revised upwards sharply in the last year. This may actually help marginal business stay afloat…

I believe such a measure will also be helpful to the many retailers with high shop rents who may have to face lower demand when the economy slows this year…This rental assistance should be reviewed annually and be removed when supply comes on stream and rent becomes more affordable.’

NOMINATED MP LOO CHOON YONG, urging the Government to alleviate the pain caused by high rents
 
Source : Straits Times  - 27 Feb 2008

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