More Singapore land leased out to hostel tenants to meet demand from int’l students

More Singapore land leased out to hostel tenants to meet demand from int’l students

By Lee Khai Yan,
SINGAPORE : International students in Singapore will soon have more housing options.

With more students from overseas studying here, demand for hostels has increased. So the Singapore Land Authority (SLA) doubled the tenders awarded to hostel tenants between 2006 and 2007.

The camp site at Jalan Bahar in Jurong used to belong to the Singapore Civil Defence Force. It now has a new lease of life - as apartments for students, particularly those from the nearby Nanyang Technological University (NTU).

Those unable to get a room on campus can rent one for between S$250 and S$400 a month. This is slightly more than the cost of a room at NTU, which ranges from S$160 to S$280. The apartments come with attached toilets and kitchens.

The SLA awarded the site to a local company last year for a monthly fee of S$77,000. The lease is for three years.

The latest land leased out for hostel use is in Ulu Pandan. It was awarded in February this year to EM Services, fetching a bid of S$122,725, about 60 percent more than the guide rental.

“The students we are targeting at are from NTU and NUS… We managed to hit 90 percent of the occupancy rates in six months. There are also many private schools that have approached us,” said Yang Tse Pin, Managing Director of Jian Yu Construction. - CNA /ls

Source : Channel NewsAsia  - 09 May 2008

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Developers test waters with Singapore condo launches

Developers test waters with Singapore condo launches

Sale of Floridian, Quartet on Vanda and Parc Seabreeze have begun
By KALPANA RASHIWALA

DEVELOPERS are gingerly testing the water for residential launches this week. Far East Organization’s listed unit Orchard Parade Holdings and Wing Tai have begun the official launch of their Floridian condo in Bukit Timah, marked by the start of an advertising campaign.
 
Resort living: The Floridian is inspired by the Miami coast and will be surrounded by water features 
Prices start at $1,615 psf. BT understands the average net price is in the range of $1,600 to $1,700 psf after discounts.

The freehold project has 336 units in 11 towers on a site of 230,000 sq ft. The preview for the development began a few months ago, with six units sold at $1,640 to $1,770 psf.

This week’s official launch sees the release of 75 units in Towers 2 and 9. Units range from two-bedders of 840 sq ft to apartments with four bedrooms (plus study) of 2,373 sq ft. Floridian, designed by DP Architects, is inspired by the Miami coast and will be surrounded by water features. Ground-floor units will have the water’s edge outside their living and dining spaces. The project is near Hwa Chong Institution, Methodist Girls’ School, Nanyang Girls’ High School, Raffles Girls’ Primary School and the Canadian International School.

Another freehold project being previewed this week is Quartet on Vanda, a cluster development of four bungalows in Vanda Crescent off Dunearn Road (near Eng Neo Avenue). Each two-storey unit has an attic, a basement and a swimming pool.

Built-up areas range from 4,844 sq ft to 4,919 sq ft. The units are understood to be priced around $6 million each. Quartet on Vanda is being developed by Stanley Quek’s Region Development.

Over in the eastern part of Singapore, Tiong Aik is understood to have begun the preview of Parc Seabreeze in the Marine Parade/Joo Chiat area last week. The average price for the freehold project is understood to be in the $1,600-1,700 psf range.

Source : Business Times  - 09 May 2008

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Ho Bee Q1 net earnings dive 62% to $26.1m - Singapore

Ho Bee Q1 net earnings dive 62% to $26.1m - Singapore

Sharp drop in property development revenue
By EMILYN YAP
 

HO BEE Investment yesterday reported a 62 per cent plunge in net earnings for the first quarter ended March 31, 2008, to $26.1 million, from $69.1 million in Q1 2007. Earnings per share were 3.54 cents, down from 9.37 cents the year before. Revenue was $94.2 million, a 62 per cent fall from $245.8 million a year earlier.
 
The Coast at Sentosa Cove: The project recognised revenue of $26.5m in the first quarter of 2008, down from $209m in Q1 2007 
The drop in group turnover was largely due to lower recognition of revenue from property development project The Coast at Sentosa Cove.

The Coast project recognised revenue of $26.5 million in Q1 2008, down from $209 million in Q1 2007. This was the main reason for property development revenue falling 64 per cent to $88 million.

Turnover on property investment fared better, driven by higher rental income from office units at Samsung Hub and industrial buildings at HB Centre II and One Tannery Road. At $4.1 million, it was almost 2.6 times that of the $1.6 million recorded last year.

Related link: 

 Click here for Ho Bee’s unaudited financial statements
 

Ho Bee saw strong overall occupancy rates and increasing rents for its investment properties in Q1.

Room and cafe revenue from its hotel operation also did well, rising 71 per cent to $2.1 million.

Sounding a note of caution, Ho Bee said: ‘The global economic and financial uncertainties caused by the US sub-prime crisis will continue to affect the sentiment of both the stock and property markets. With property transactions expected to remain weak in the short term, the group will monitor the market closely.’

Nevertheless, Ho Bee said that revenue and earnings for the next two to three years will be supported by substantial progressive recognition of income from the sale of residential projects such as Vertis at Amber Gardens and Quinterra in Holland Road.

Ho Bee’s share price closed at $1.03 yesterday, two cents down.

Source : Business Times  - 09 May 2008

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Oil industry trips on spiralling power rates

Oil industry trips on spiralling power rates

With tariffs likely to rise further, cogeneration plants could be the answer
By RONNIE LIM

(SINGAPORE) What goes around, comes around. On the back of the hike in oil prices which almost touched US$124 yesterday, electricity tariffs in Singapore have climbed to uncomfortable heights. And ironically, the oil industry here - which uses a lot of electricity - is feeling the most pain.
 
 
BT has learnt that the worst may not be over as electricity rates are likely to face more upward pressure in the coming months.

This was disclosed by Energy Market Company (EMC) CEO Dave Carlson yesterday in response to queries from BT. He said that the rising crude prices had pushed up the price of high-sulphur fuel oil, which is used by some power stations here. But the bigger impact came through the hike in the price of natural gas - the main feedstock - which is pegged to the price of high-sulphur fuel oil.

The impact has been obvious. The average monthly electricity tariffs stood at just over $140 a megawatt hour last December, he said. They shot to $158 in January, before cooling to $149 in February and $147 in March. In April, the spike was the steepest as this rate climbed to $173.

‘With electricity demand in the second and third quarters traditionally higher, more upward pressure on tariffs is expected,’ Mr Carlson added. Last year’s surprise 6 per cent dip in tariffs is now just a distant memory.

Separately, an oil industry source later said ‘we are feeling the pain - it’s a significant increase’, when asked if the latest run-up in electricity tariffs was starting to hurt.

Oil refineries and petrochemical complexes are big power users, with electricity costs accounting for as much as 25-30 per cent of total operating costs, the source said. ‘So the 25 per cent jump in tariffs in the last few months is significant,’ he added.

‘But we have no control over electricity prices and have to manage our costs. One option, however, will be to build our own cogeneration plant, and this is something we are looking at,’ he added.

BT had earlier reported that oil companies here like ExxonMobil are already building additional cogen plants to supply power to their big expansion projects, including its US$5 billion-plus new petrochemical cracker. And this is clearly the industry’s answer to ever-rising electricity and other utility costs.

EMC’s Mr Carlson, who was giving a media briefing on the electricity market here, earlier indicated that average electricity prices dipped in 2007 to $124.57/MW hour - after climbing from $82.35 in 2004 to $109.90 in 2005 and $132.42 in 2006.

The 2007 dip was attributed to efficiency gains and increased competition among the generation companies, spurred by the entry of new player Keppel Merlimau Cogen with its 500 MW station.

He, however, declined to project how much electricity tariffs could go up by this year, as this depends on various factors, including whether oil prices will rise further.

Another factor is electricity demand growth, which tends to follow Singapore’s gross domestic product growth. Latest official indications are that Singapore’s GDP is expected to moderate this year to 4-6 per cent - lower than last year’s 7.5 per cent.

But this doesn’t mean that electricity demand growth is also going to slow down this year, Mr Carlson said. He added that a decision by a big investor - say, another oil refinery coming into Singapore - would affect demand as well.

Hopefully, increased competition in electricity generation, ‘with new investment entering the market’, will help temper electricity tariff increases, he said.

This includes the entry of new players - like China Huaneng Group, China’s largest power producer, which recently took over Tuas Power - as Temasek Holdings continues with the divestment of the two remaining big gencos, Senoko Power and PowerSeraya.

More players here, like Senoko Power, are also converting more of their older plants to more efficient cogeneration plants, while others like Sembcorp Cogen are also looking into cheaper alternatives like waste-derived fuels to stay competitive amid a high oil price environment.

Source : Business Times  - 09 May 2008

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Royal Peacock Hotel in Singapore Chinatown could fetch around $38m

Royal Peacock Hotel in Singapore Chinatown could fetch around $38m 
GOOD LOCATION: The hotel, which opened in 1995, occupies 10 restored shophouses in Keong Saik Road. Room rates are from $105 to $185 a night. — ST PHOTO: EDWIN KOO
 
THE Royal Peacock Hotel in Chinatown’s Keong Saik Road is likely to be sold soon - with a potential price tag of about $38 million.
The owners of the boutique hotel called for expressions of interest, which closed on Wednesday, after attracting at least five bidders.

The keen interest underlined rising interest in the hotel sector in Singapore, analysts said.

The 74-room hotel’s marketing agent, Cushman & Wakefield, said the property’s guide price is $38 million, or more than $500,000 a room.

While the wider property market is quiet, as many buyers and sellers are remaining on the sidelines, the hotel sector offers a different picture.

With rising tourist arrivals and room rates, investors are more than happy to pay ‘tomorrow’s price’ for a hotel located in the city centre, said Mr Donald Han, the managing director of Cushman & Wakefield in Singapore.

A five-star hotel typically sells for $700,000 to $800,000 a room, he said.

The bidders for the Royal Peacock, most of whom are foreigners, are not existing hotel players in Singapore, he said.

The hotel, which opened in 1995, is owned by Grace International, the local property offshoot of a family trading business based in Indonesia. The firm also owns The Scarlet, an 84-room boutique hotel in Erskine Road that opened in late 2004. This is set in 13 two-storey, restored shophouses built in 1868 and a four-storey shophouse.

The Royal Peacock occupies 10 restored shophouses in Keong Saik Road, which was once famous as a red-light district.

The rooms, ranging from 18 sq m to 30 sq m in area, boast period touches such as antique gilt-framed mirrors, plush purple carpets and red walls. They cost between $105 and $185 a night.

The eventual buyer will be looking to enjoy rising room rates, analysts say.

Room rates in Singapore have been rising steadily after staying low for a long period. Average rates are now hovering around $240 to $250, up from just $120 in 2004.

Mr Han said the outlook for the hotel industry remains upbeat, and Cushman & Wakefield is in the process of being appointed as the marketing agent for two other hotels over the next two months. These hotels, with fewer than 200 rooms, are also well-located.

JOYCE TEO
Source : Straits Times  - 09 May 2008

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Singapore Raffles Hotel looks set to be sold at hefty price tag

Singapore Raffles Hotel looks set to be sold at hefty price tag 

Consortium led by banker may buy hotel and adjoining arcade for $650m

By Joyce Teo, Property Correspondent 
RICH LEGACY: Raffles Hotel is a part of Singapore’s history and heritage. Staff and guests are unlikely to be directly affected by the sale. — ST PHOTO: JOYCE FANG
 
MYSTERY buyers are set to acquire the historic Raffles Hotel for more than treble the $200 million it sold for just three years ago.
The 121-year-old hotel and the adjoining shopping arcade are changing hands again after a consortium led by a Singapore-based banker agreed to buy the property, the American and Middle Eastern owners announced yesterday.

The eye-popping price tag is about $650 million, The Business Times (BT) reported yesterday.

The dramatic jump in value of the heritage property is the result of Singapore’s booming hotel industry, market watchers say. Average room rates are now about $240, way up from $136 in 2005.

The identities of the buyers are not yet clear, though the consortium is being led by prominent former Credit Suisse banker Mark Pawley, who declined to comment yesterday.

The BT cited unnamed sources as saying the consortium might be linked to a European family.
As a Credit Suisse banker, Mr Pawley helped arrange the $1.7 billion sale of the hotels of Raffles Holdings to US-

based Colony Capital in 2005. The hotel portfolio included Raffles Hotel and the adjacent shopping arcade - valued at $200 million then.

Mr Pawley is chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity. Oxley told Reuters yesterday that it was not the buyer.

After Colony bought Raffles Holdings, it combined the hotels, including Raffles Hotel, into Fairmont Hotels & Resorts, which it had also acquired.

Yesterday, Fairmont Raffles Hotels International (FRHI) announced that it had reached an in-principle agreement with the consortium led by Mr Pawley to sell its stake in Raffles Hotel.

The deal is expected to be completed by the end of the month, the firm - controlled by Saudi Arabian billionaire, Prince Alwaleed bin Talal - and Colony said in a statement.

FRHI said it continues to look for ways to ‘monetise its hotel real estate investments’.

These asset sales, it said, are ‘purely real estate transactions that provide an opportunity to realise the value of our very successful investments’.

Staff and guests at Raffles Hotel are unlikely to be directly affected by the change.

‘Similar to FRHI’s past estate transactions, any hotels that are sold will continue to be part of the company’s hotel collection and will be managed under long-term management contracts,’ it said.

The BT reported that the sale would come with a 40-year management contract for Raffles Hotels and Resorts, citing unnamed sources.

It also reported a sale price ‘in the mid-$600 million range’. The 999-year leasehold Raffles Hotel has 104 suites. The shopping arcade has a 99-year lease.

Mr Donald Han, Cushman & Wakefield’s managing director, said the hotel sale price would exceed $1 million per room, after taking out the retail component. Generally, a five-star hotel sells for about $700,000 to $800,000 a room.

Back in 2005, concerns were raised about securing the legacy of the hotel, which is a part of Singapore’s history and heritage. But the parties involved have said the hotel’s legacy remains intact.
PREVIOUS DEAL

Colony Capital bought Raffles Hotel and the shopping arcade in 2005 as part of the entire hotel business of Raffles Holdings.

POTENTIAL BUYERS

Former Credit Suisse banker Mark Pawley leads the consortium, but the identities of the buyers are not yet known.
Source : Straits Times  - 09 May 2008

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