Singapore rises to No. 3 financial centre in global index

Singapore rises to No. 3 financial centre in global index 

By Grace Ng 

SINGAPORE has been ranked the No. 3 financial centre in the world behind New York and London in a new survey, commissioned by the City of London.
It has risen one place from last year, thanks to its strong regulatory environment, and has overtaken rival Hong Kong, according to the Global Financial Centres Index released yesterday.

The half-yearly survey of 59 cities was conducted in July.

It found that the fallout from the credit crunch had narrowed the lead of London and New York over Asian and Middle Eastern financial centres.

Singapore enjoyed a rise of 26 points - more than any other centre in the top 20 ranking.

It was rated by the survey of 1,406 financial services professionals as being ‘competitive’ in the 57 factors used to rate each centre.

These factors included regulatory oversight and the tax environment.

Mr Stuart Fraser, head of policy for the City of London, told the Financial Times that Singapore was benefiting from a perception that it was already well regulated and hence less likely to face a regulatory crackdown.

‘London and New York are the two global cities and they are going to remain the global cities for a while yet, but (other centres) will close the gap a bit,’ he was quoted as saying.

‘Singapore and Dubai are recruiting people. That makes them look positive.’

Singapore scored 701 points in the ranking, 73 points behind New York and one ahead of Hong Kong.

The survey noted that Dubai was identified most frequently by respondents as ‘likely to become significantly more important in the next few years’.

Singapore was mentioned 10 times, compared to 22 times for Dubai. Shanghai was mentioned eight times.

The big losers in the rankings included Frankfurt, which slipped three places to ninth, and Paris, down six places to 20th.

Mr Anderson Jansen, who works in a major foreign financial institution in Singapore, said the city was definitely a ‘world-class financial hub’.

‘Singapore’s talent pool, infrastructure and open business environment definitely make it very attractive,’ he said.

Source : Straits Times - 26 Sept 2008

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38-storey tower to rise at Singapore Raffles Place

38-storey tower to rise at Singapore Raffles Place
 
New development will cost $540m and is due to be completed in 2011 

By Fiona Chan, Property Reporter 
  
Artist’s impression of the new tower that will come up next to the OUB Centre. The tower will offer 350,000 sq ft of top-quality Grade A office space and five floors of shops. — PHOTO: TANGE ASSOCIATES ASIA

A NEW office block will soon come up next to OUB Centre, with the two buildings to be packaged in a single prime development called One Raffles Place.
The tower, due to be completed in 2011, will offer 350,000 sq ft of top-quality Grade A office space and five floors of shops, said OUB Centre Limited, which is developing the 38-storey building along with United Overseas Bank (UOB).

Although none of the space has yet been leased, the company is not too concerned about securing tenants despite a large supply of new offices looming over the market next year and beyond.

‘This development is a long-term investment, we are confident of the location and the address, and we are confident of Singapore’s economy,’ said OUB Centre general manager Henry Kok yesterday.

Even amid the financial turmoil, Singapore office space is still in demand, added Mr Chris Archibold, regional director and head of markets at Jones Lang LaSalle (JLL), one of the building’s leasing agents along with CB Richard Ellis.

‘We are still seeing quite a number of expansions in the financial services industry, jobs being relocated to Asia out of Europe and the United States.’

The new block will cost $540 million to develop, which will be financed by a syndicated loan from financial institutions, said Mr Kok. OUB Centre’s shareholders are Overseas Union Enterprise, UOB, UOL Group, Khattar Holdings and the Kuwait Investment Office.

While none of the parties involved would reveal expected rents for the new building, JLL’s managing director for Singapore and South-east Asia, Mr Christopher Fossick, said rents would be pegged to the ‘market rate’ for Raffles Place.

Asking rents for Grade A offices in the area, including at the existing OUB Centre, are roughly between $17.50 and $18.50 per sq ft (psf), said Mr Donald Han, managing director of property consultancy Cushman & Wakefield.

But he said rents for the new tower will ‘have to reflect the expected market situation in 2011, given the supply coming onstream in 2010 and beyond’.

However, with the building’s high specifications, he still expects rents to be ‘near the top of the range’.

‘There will always be a demand for buildings like the new OUB tower, as the Raffles Place location will be the first stop for companies moving to Singapore.’

Other new upcoming offices in Raffles Place include the 28-storey Straits Trading Building in Battery Road, whose redevelopment will be completed by this year, and Ocean Building in Collyer Quay, due for completion in 2011.

The OUB tower, with smaller floor plates of 11,000 sq ft, will target tenants with smaller space requirements, said Mr Fossick. ‘There’s been an enormous explosion of hedge funds, investment management groups and private banks, who take 5,000 sq ft to 20,000 sq ft of space.’

In an interesting twist, the new tower is being designed by Japanese firm Tange Associates’ Paul Tange, the son of Mr Kenzo Tange, who designed the original OUB Centre more than 20 years ago.

Source : Straits Times - 26 Sept 2008

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Bush ropes in McCain, Obama

Bush ropes in McCain, Obama 
Candidates asked to join talks as lawmakers clear key obstacles to a deal 
  
The talks set up by Mr Bush are seen as unneeded by key negotiators who say a deal has practically been made.

WASHINGTON: President George W. Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on a US$700 billion (S$1 trillion) rescue of Wall Street as Democrats and Republicans near agreement on a bailout plan with more protection for taxpayers.
Senior lawmakers and Bush administration officials have cleared away key obstacles to a deal on the unprecedented rescue, agreeing to include widely supported limits on pay packages for executives whose companies benefit.

‘The package is basically done,’ Representative Paul Kanjorski, a Pennsylvania Democrat, told CNBC last night. ‘The hard issues are resolved. They have to shake hands. They have to smile and they have to have the photo set.’

Nonetheless, lawmakers are still wrangling over major elements, including how to phase in the eye-popping cost - a measure demanded by Democrats and some Republicans who want stronger congressional control over the bailout - without spooking markets.

A plan to let the government take an ownership stake in troubled firms as part of the rescue, rather than just buying bad debt, was also under intense negotiation.

Treasury Secretary Henry Paulson, however, has agreed to the demand that the government take equity stakes in companies it assists. A bipartisan meeting was set yesterday to begin drafting a compromise, which top Democrats said they hoped could pass within days.

The core of the plan envisions the government buying up sour assets of shaky financial firms in a bid to keep them from going under and to stave off a recession.

President Bush acknowledged in a major television address on Wednesday that the bailout would be a ‘tough vote’ for lawmakers. But he said failing to approve it would risk dire consequences for the economy and most Americans.

‘Without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold,’ Mr Bush said. ‘Our entire economy is in danger.’

His warning came soon after he invited Mr Obama and Mr McCain, one of whom will inherit the economic mess in four months, as well as key congressional leaders to a White House meeting yesterday to work on a compromise.

With the administration’s original proposal considered dead in Congress, House leaders said they were making progress towards revised legislation that could be approved.

House Financial Services Committee chairman Barney Frank, who has led negotiations with Mr Paulson on the package, called the White House meeting a distraction. ‘We’re going to have to interrupt a negotiating session between the Democrats and Republicans on a Bill where I think we are getting pretty close, and troop down to the White House,’ he said. ‘I wish they’d checked with us.’

Mr Paulson and Federal Reserve Chairman Ben Bernanke have been crisscrossing Capitol Hill, shuttling from public hearings on the proposal to private meetings with lawmakers, to sell the proposal.

Mr Obama and Mr McCain are calling for a bipartisan effort to deal with the crisis, little more than five weeks before national elections in which the economy has emerged as the dominant theme.

‘This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe,’ they said in a joint statement on Wednesday night.

US stocks rose in early trading, with the Dow Jones Industrial Average rising 192.35 points to 11,017.52 as at 11pm Singapore time. But a credit market squeeze remained.

The cost to insure the debt of Washington Mutual, a large US savings and loan crippled by mortgage losses, rose yesterday, on concern about its rating profile. US regulators are trying to quickly broker a deal for Washington Mutual, the New York Times said yesterday.

Extracts from Bush’s bailout speech

DESPERATE TIMES, DESPERATE MEASURES
‘I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business.

Under normal circumstances, I would have followed this course. But these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence, and major sectors of America’s financial system are at risk of shutting down.’

PAY UP NOW OR PAY MORE LATER

‘I know that an economic rescue package will present a tough vote for many members of Congress. It is difficult to pass a Bill that commits so much of the taxpayers’ hard-earned money. I also understand the frustration of responsible Americans who pay their mortgages on time, file their tax returns every April 15th, and are reluctant to pay the cost of excesses on Wall Street. But given the situation we are facing, not passing a Bill now would cost these Americans much more later.’

THIS CRISIS WILL BE OVERCOME

‘Our economy is facing a moment of great challenge, but we’ve overcome tough challenges before, and we will overcome this one. I know that Americans sometimes get discouraged by the tone in Washington and the seemingly endless partisan struggles, yet history has shown that, in times of real trial, elected officials rise to the occasion.’
ASSOCIATED PRESS, BLOOMBERG NEWS, REUTERS

Source : Straits Times - 26 Sept 2008

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Bailout deal reached

Bailout deal reached 

WASHINGTON: Warned that time was running short to bolster the distressed economy, congressional Republicans and Democrats reported agreement in principle early this morning (Singapore time) on a bailout of the US financial industry.

It will be presented to the Bush administration in hopes of a vote within days, they said.

The news came as congressman here emerged from a two-hour negotiating session.

Democratic Senator Chris Dodd said: ‘We are very confident that we can act expeditiously.’

Sen Bob Bennett, a Republican, said: ‘I now expect that we will indeed have a plan that can pass the House, pass the Senate (and) be signed by the President.’

The progress was reported just hours before President George W. Bush was to meet presidential contenders Barack Obama and John McCain at the White House to clear obstacles to the unpopular rescue plan.

Crucial lawmakers said few obstacles remain.

Associated Press

 
Source : Straits Times - 26 Sept 2008

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Amid GOP revolt, bailout deal breaks down

Amid GOP revolt, bailout deal breaks down

By JENNIFER LOVEN and JULIE HIRSCHFELD DAVIS, Associated Press Writers

 
WASHINGTON - A Republican rebellion stalled government efforts Thursday to avoid economic meltdown, a chaotic turnaround that disrupted the choreography of an extraordinary White House meeting meant to show joint resolve from the president, the political parties and the presidential candidates. Instead, the summit broke up so bitterly that Treasury Secretary Henry Paulson got on one knee before Democratic leaders in a theatrical attempt to salvage talks.

 
After six days of bare-knuckled negotiations on the $700 billion financial industry bailout proposed by the Bush administration, with Wall Street tottering and presidential politics intruding six weeks before the election, there was far more confusion than clarity.

An apparent breakthrough was announced with fanfare at midday by key members of Congress from both parties — but not top leaders. Wall Street cautiously showed its pleasure, with the Dow Jones industrials closing 196 points higher.

But the good news and the market close were followed by a rash of less-positive developments.

Washington Mutual Inc. was seized by the Federal Deposit Insurance Corp. in the largest failure ever of a U.S. bank, after which JPMorgan Chase & Co. Inc. came to its rescue by buying the thrift’s banking assets.

And the late-afternoon White House gathering of President Bush, presidential contenders John McCain and Barack Obama, and top congressional leaders turned into what one person in the room described as “a full-throated discussion” and McCain’s campaign called “a contentious shouting match.”

Conservatives were in revolt over the astonishing price tag of the proposal and the hand of government that it would place on private markets.

Sen. Richard Shelby of Alabama, the top Republican on the Senate Banking Committee, emerged from the White House meeting to say the announced agreement “is, obviously, no agreement.” McCain’s campaign issued a statement saying, “the plan that has been put forth by the administration does not enjoy the confidence of the American people as it will not protect the taxpayers and will sacrifice Main Street in favor of Wall Street.” The White House, too, acknowledged there was no deal, only progress.

Meanwhile a group of House GOP lawmakers circulated an alternative that would put much less focus on a government takeover of failing institutions’ sour assets. This proposal would have the government provide insurance to companies that agree to hold frozen assets, rather than have the U.S. purchase the assets.

Inside the White House session, House Republican leader John Boehner announced his concerns about the emerging plan and asked that the conservatives’ alternative be considered, said people from both parties who were briefed on the exchange.

Financial Services Chairman Barney Frank, the feisty Democrat who has been leading negotiations with Paulson, reacted angrily, saying Republicans had waited until the last moment to present their proposal.

McCain, who dramatically announced Wednesday that he was suspending his campaign to deal with the economic crisis, stayed silent for most of the session and spoke only briefly to voice general principles for a rescue plan.

After the session, Paulson, hoping to prevent any chance for agreement from being torpedoed, pleaded with Democratic leaders not to publicly disclose how poorly the session had gone, said three people familiar with the episode. Frank and House Speaker Nancy Pelosi responded angrily, and Paulson, in an attempt to lighten the mood, got down on one knee, said the sources who spoke on condition of anonymity, like the others, because the conversations were private.

Weary congressional negotiators then resumed working with Paulson into the night in an effort to revive or rework the proposal that Bush said must be quickly approved by Congress to stave off “a long and painful recession.” They gave up after 10 p.m. EDT, more than an hour after the lone House Republican involved, Rep. Spencer Bachus of Alabama, left the room.

Talks were to resume Friday morning on the effort to bail out failing financial institutions and restart the flow of credit that has begun to starve the national economy.

The Bush administration plan’s centerpiece remained for the government to buy the toxic, mortgage-based assets of shaky financial institutions in a bid to keep them from going under and setting off a cascade of ruinous events, including wiped-out retirement savings, rising home foreclosures, closed businesses and lost jobs.

The earlier bipartisan accord establishing principles and important details would have given the Bush administration just a fraction of the money it wanted up front, subjecting half the $700 billion total to a congressional veto. The treasury secretary would get $250 billion immediately and could have an additional $100 billion if he certified it was needed, an approach designed to give lawmakers a stronger hand in controlling the unprecedented rescue.

The Bush administration had already agreed to several concessions based on demands from the right and left, including that the government take equity in companies helped by the bailout and put rules in place to limit excessive compensation of their executives, according to a draft of the outline obtained by The Associated Press.

Democrat Obama and Republican McCain, who have both sought to distance themselves from the unpopular Bush, sat down with the president at the White House for the hourlong afternoon session that was striking in this brutally partisan season. By also including Congress’ Democratic and Republican leaders, the meeting gathered nearly all Washington’s political power structure at one long table in a small West Wing room.

“All of us around the table … know we’ve got to get something done as quickly as possible,” Bush declared optimistically at the start of the meeting. Obama and McCain were at distant ends of the oval table, not even in each other’s sight lines. Bush, playing host in the middle, was flanked by Congress’ two Democratic leaders, Pelosi and Senate Majority Leader Harry Reid.

But neither Bush, McCain nor Obama have been deeply involved so far in this week’s scramble to hammer out a package. The meeting was intended more to provide bipartisan political cover for lawmakers to support a plan in the face of an angry public and their own re-election bids in six weeks.

At day’s end, Frank said he told Paulson “this whole thing is at risk if the president can’t get members of his own party to participate.”

Layered over the White House meeting was a complicated web of potential political benefits and consequences for both presidential candidates.

McCain hoped voters would believe that he rose above politics to wade into nitty-gritty and ultimately successful dealmaking at a time of urgent crisis, but he risked being seen instead as either overly impulsive or politically craven, or both. Obama saw a chance to appear presidential and fit for duty but was also caught off guard strategically by McCain’s surprising campaign gamble.

___

Associated Press writers Deb Riechmann, Martin Crutsinger, Christopher Wills and Beth Fouhy in Washington and researcher Judy Ausuebel in New York contributed to this story.

Source : AP - 26 Sept 2008

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Pulsating Singapore Marina Bay

Pulsating Singapore Marina Bay

This new prime area for living, working and playing will become even more vibrant once Marina Bay Sands is ready, writes HAN HUAN MEI

FOR a long time, when the question was asked, ‘where do wealthy Singaporeans live’? The answer would either be ‘the bungalows in Tanglin, Bukit Timah and Holland Road’ or ‘the luxurious apartments in Orchard, Cairnhill and Grange Road’. This is set to change.
 
 
While these prestigious addresses evolved through Singapore’s history over several decades, two new prime residential areas have emerged in recent times as a result of brilliant land use planning based on the government’s vision of lifestyles in the new millennium. These are the New Downtown and Sentosa Cove.

The properties in the traditional prime residential areas are largely freehold estates, but those in the New Downtown and Sentosa Cove are mainly 99-year leasehold estates. Not only are they among the most expensive leasehold properties, their price levels are almost on par with the new freehold projects in the Orchard area and 25-30 per cent below those of new luxury properties.

The evolution of these two new prime residential locations was partly fuelled by the sharp growth of local high net worth individuals (HNWIs) as a result of the global wealth effect in 2005-2007. Most of them would have invested in real estate in one way or another during this period.

In the past few years, not only have locals invested in property, but the Singapore property market boom has also attracted a lot of permanent residents (PRs) and foreigners as the government relaxed rules on foreign ownership. There is no restriction on the purchase of any non-landed property in Singapore but a foreigner or PR who wishes to purchase a restricted residential property still needs to obtain the approval from the Land Dealing (Approval) Unit. A restricted property refers to vacant residential land, landed property (such as a detached house, semi-detached house, terrace house and landed property in strata developments which are not approved condominium developments under the Planning Act).

However, PRs and foreigners who wish to purchase landed property on Sentosa island have been able to obtain fast track approval from the government since 2005.

Between the emerging prime areas of Sentosa and the New Downtown, the New Downtown possesses a dynamic multi-faceted character that makes it a more ‘happening’ place. This is because it is being developed into a place where living, working and playing will be blended together into an exciting mix of diverse activities. The Esplanade - Theatres By The Bay provides for the enjoyment of the arts. The Marina Bay Financial Centre (MBFC), the purpose-built financial district of the New Downtown, will offer nearly three million sq ft of prime Grade A office space and two residential towers comprising 649 upmarket apartments to complement the newly completed iconic skyscraper, The Sail @ Marina Bay. Both The Sail and MBFC will also provide some 20,000 sq ft and 105,000 sq ft of retail space respectively.

To top it all, the proposed Marina Bay Sands integrated resort will feature three hotel towers with 2,500 suites, over a million sq ft of space for conventions and meetings, the ArtScience Museum designed like ‘floating’ crystal pavilions, more than 800,000 sq ft of retail space known as Marina Bay Shoppes as well as a 160,000 sq ft casino. There is no doubt that Marina Bay will be a focal point of business, recreation and living for many years to come.

While the concept of in-city living has hogged the headlines in recent times, the number of residential units in the New Downtown is still rather limited. Around Marina Bay, only The Sail (1,111 units), Marina Bay Residences (428 units) and Marina Bay Suites (221 units) are available. The first two projects are fully sold while the third is not for sale yet. One Shenton (341 units) at One Shenton Way is 93 per cent sold to date while The Cliff (312 units) at McCallum Street is 76 per cent sold. In the Tanjong Pagar area, Lumiere (168 units) is 58 per cent sold.

As for projects in the pipeline, 76 Shenton Way has obtained written permission to be converted into a 179-unit apartment block while the owners of 5 Shenton Way (UIC Building) are waiting for the lifting of the moratorium on the conversion of office buildings to residential use at end-2009 before they proceed. Two new projects at Enggor Street in Tanjong Pagar have also obtained written permission as at June this year.

Over at Icon in Tanjong Pagar, one-bedroom units (570-800 sq ft) were recently leased at $5-$7.50 psf while two-bedroom units (900-940 sq ft) were leased at $5.50-$7 psf. This works out to a gross yield of 4-5 per cent. Using these as a proxy for the possible rental range for the recently completed The Sail (Tower 2), it is likely that similar-sized units may be leased at $7-$8.50 psf. This would translate to a lower yield of 3-4 per cent due to their higher capital values.

For 2009, modest growth is expected as the US financial and housing slumps ripple through the rest of the world, affecting employment, business confidence, consumer spending and overall demand. The slowdown in the global economy and inflation woes are likely to curtail residential sales and cause overall home prices to dip by 10-15 per cent.

Despite the current tentative sentiment in the residential market, there are several fundamental merits for living in the new prime area of Marina Bay. And momentum should pick up again once the Marina Bay Sands commences operations at the end of next year. The lure of living, working and playing in an area that never sleeps would once again prove too attractive for home buyers to ignore.

The writer is by associate director of CBRE Research

Source : Business Times - 26 Sept 2008

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Singapore prime areas beckon

Singapore prime areas beckon

High-end homes in these exclusive areas appeal to foreign buyers whose numbers have risen over the years

 
IN Singapore, Districts 9, 10 and 11 are traditionally recognised as prime residential areas.
 
 
Districts 9 and 10 are located around the main shopping belt of Orchard Road (Orchard, Cairnhill, River Valley, Ardmore, Holland Road, Tanglin), while District 11 is situated to the north of Orchard Road, in the Bukit Timah, Watten Estate, Novena and Thomson areas.

Since 2005, District 1 (the financial district) and Sentosa Cove have been new additions to Singapore’s prime residential market.

While offering a much-admired lifestyle like no other in Singapore, developments in these prime areas offer an exclusive sanctuary for an individual or family, amid the bustle of city life.

Ranked high on appeal, prices of homes in these areas also come with a hefty price tag. It is not surprising that the developments surrounding or within the Orchard Road area have been some of the most expensive properties in Singapore. With Orchard Road renowned as the epicentre of Singapore’s shopping and entertainment district as well as upcoming malls that seek to titillate one’s senses, the heart of the 1,650ha urban landscape of the Central Area is set to undergo a slew of changes.

On the same note, older prestigious residential projects in the area are usually situated on a five-minute drive from Orchard Road, typically nestled in quiet enclaves. This has changed over the years as we see newer projects planned to be visually apparent from Orchard Road itself compared to those built in the 1980s.

Likewise, Orchard Road is gradually being transformed with new malls such as Orchard Central and Ion Orchard set to enhance the shopping scene. Not only has this led to an alteration of Orchard Road’s urban landscape, but it has also enhanced the nature of high-end developments in Singapore. While still able to furnish a level of opulence, exclusivity and uniqueness, high-end developments are now embedded into the flurry of urban activity, with Orchard Road as its backdrop.

To buttress these claims, the large number of collective sales in recent years would eventually contribute to the remodelling of high-end urban areas.

From 2005 to 2007, a total of 116 residential projects in District 9,10 and 11 were sold in collective sales for re-development. Given this substantial number, and with freedom to re-develop, older residential buildings in the high-end districts would increasingly give way to modern and taller apartment blocks that feature modern architectural designs with complete range of recreational facilities.

Furthermore, some of the new high-end condominiums also offer the luxury of space as seen in developments in the Ardmore Park and Draycott area where the units are larger than 200 sq m.

High-end luxury homes in the traditional prime districts, with their enduring charm, have always been highly regarded by those with large coffers and a distinct taste for the luxuriant high life. With chicly designed homes that offer a lush and lavish lifestyle, residential developments in these areas have drawn the interest of both locals and foreigners alike.

Over the past three years, the number of homes bought by foreigners has risen from around 3,600 in 2005 to about 9,100 in 2007. The proportion of foreign buyers islandwide for all landed and non-landed homes stood at 25.6 per cent as at 2Q 2008, a marginal fall of 2.3 percentage points from the previous quarter.

Over the last 13 years, the proportion of foreigners that purchased all types of private homes (excluding executive condominium units) islandwide reached its peak in 2007 when this figure registered at 25.7 per cent. Regardless of this slight slackening in terms of the proportion of foreign buyers in Singapore, the 25.6 per cent registered in 2Q 2008 is still 3.6 percentage points higher than the five-year quarterly average figure.

Foreign buyers originate from various continents and based on 1H 2008 statistics, the majority, 17.7 per cent, were from Indonesia. Not far behind, Malaysians also formed a significant proportion at 17.6 per cent followed by those from India and China. Farther across oceans and land masses, buyers from the UK and the US are also evident in Singapore’s private residential property market with a proportion of 8.7 per cent and 2.3 per cent respectively as at 1H 2008.

Most foreign home-buyers and investors would prefer to acquire a condominium unit in the prime districts, and figures indicate that for District 9, 10 and 11, the proportion that has purchased both landed and non-landed homes in these two districts was a considerable 35 per cent in 2007.

Driving forces behind foreigners’ interest in residential properties here can stem from a multitude of reasons. One major compelling reason is the efficiency, safety and open business environment in Singapore. There are also Singapore government policies in place to welcome foreigners to live here.

The service industry, especially the financial services segment has seen robust growth over the past decade. This has seen an increase in high-paying jobs, which have attracted many highly skilled foreigners to work in Singapore.

Coupled with various other socio-political reasons, the cosmopolitan city-state of Singapore is endless in its appeal. Not only was Singapore ranked as the best place for Asian expatriates to reside in earlier on in the year, but a recent poll also highlights that expatriates have rated Singapore to be the best place in the world to live, especially in terms of the quality of accommodation. With the introduction of the two integrated resorts and added casinos to boot, the F1 night races and a host of other initiatives, Singapore is also gradually becoming a more interesting place to work, live and play.

In addition, well-heeled investors prefer real estate in the prime districts because property prices in these areas would always be among the first to increase during a property boom. Moreover, investment in Singapore’s real estate is deemed to be relatively low risk in Asia.

With prime residential districts timeless in their appeal, it is still not too late to buy a property in these swanky, plush neighbourhoods within a city that is becoming more enchanting and cosmopolitan. An urban oasis in Singapore’s private residential landscape, these prime areas offer a splendour and lifestyle like no other.

This article is contributed by Knight Frank Consultancy & Research Dept

 
Source : Business Times - 26 Sept 2008

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Singapore MAS lays out scope for FI’s trustees

Singapore MAS lays out scope for FI’s trustees

By LEE U-WEN

FINANCIAL institutions (FI) that are appointing independent bodies to help complainants who have bought certain complex products from them have been told to update their terms of reference before engaging these third parties.
In a statement issued late last night, the Monetary Authority of Singapore (MAS) laid out the scope for the independent parties, asking them to ensure that the FIs deal with complaints ‘fairly, effectively and promptly’.

The controversy surrounds investment products DBS High Notes 5, Lehman Minibonds and Merrill Lynch Jubilee Series 3 LinkEarner Notes. When Lehman filed for bankruptcy recently, these products went belly up. Over $500 million worth were sold over the past two years to thousands of investors.

Other matters to be included in the terms of reference include giving everyone the ‘full opportunity’ to state his complaint. There must also be a proper follow-up procedure and the entire assessment has to be properly documented as well, said the statutory board.

In the event of shortcomings identified in the complaints handling and resolution processes, these have to be brought to the senior management of the FI’s attention and rectified. The MAS will only be notified if the shortcomings still persist after that.

In a separate statement, the MAS said that it was acting to help angry Lehman Minibond investors who claim they were misled by the way certain complex products were sold to them.

 
 
It confirmed yesterday that it received a petition signed by a group of them on Wednesday night that touched on two issues - misrepresentation and the taking over of Lehman Brothers’ role in the Minibond programme.

On the subject of misrepresentation, MAS said that its priority was to ensure consumers’ complaints are dealt with fairly and expeditiously. ‘Where there is clear evidence of regulatory breaches, MAS will hold the financial institution to account,’ it said.

MAS also said that it has reminded trustee HSBC Institutional Trust Services (Singapore) to act in the interest of investors.’The trustee is considering various options available, which are not limited to liquidating the underlying securities,’ it said.

‘The trustee has also stated that replacement of the swap counterparty is a possibility, and has explained the challenges involved.’

However, it added that it would ‘not be appropriate’ to require any particular institution to take over Lehman’s role. The petition called on MAS to lobby Japan’s biggest brokerage, Nomura Holdings, to take over the Minibonds as a pre-condition for granting it a licence to operate in Singapore.

Source : Business Times - 26 Sept 2008

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OUB Centre to get $540m adjacent office tower

OUB Centre to get $540m adjacent office tower

Development will add 350,000 sq ft of prime Grade A space in 2011
By EMILYN YAP

UNITED Overseas Bank and OUB Centre will invest $540 million to jointly develop a new commercial tower in the heart of Raffles Place.
 
Towering addition: The 38-storey development will take shape next to the existing OUB Centre tower and retail mall. The three components will together be known as One Raffles Place 
The 38-storey development will take shape next to the existing OUB Centre tower and retail mall. The three components will together be known as One Raffles Place.

Due for completion in 2011, the tower will provide 350,000 square feet of prime Grade A office space.

The site has a remaining tenure of around 75 years but there are plans to top this up to 99 years.

The $540 million investment excludes land cost and will be financed through syndicated loans from several financial institutions.

OUB Centre, which counts Overseas Union Enterprise, UOL Group and the Kuwait Investment Office among its shareholders, owns an 81.54 per cent stake in the partnership.

An anticipated economic slowdown and the US financial turmoil have affected outlook for the office property sector.

UBS Investment Research said in a report on Tuesday that demand for office space could weaken in the next 12 months as global financial institutions consolidate.

Prime office rents could be down as much as 47 per cent in 2012, it said.

But such forecasts have not dampened OUB Centre’s confidence in the new tower.

‘This is a long-term investment,’ said its general manager, Henry Kok. ‘This tower marks another milestone and reflects our confidence in Singapore’s growing business scene and this location.’

Marketing of the new building has started and target tenants include financial institutions and multinational companies.

Despite on-going consolidation within the financial sector, Mr Kok pointed out that ’some financial institutions are expanding quite aggressively . . . the gravity is slowly shifting to Asia’.

The new tower and the existing OUB Centre building will offer 760,000 sq ft of prime Grade A office space in total.

The OUB Centre building is near full occupancy and rents range from $17.50 to as close as $20 psf per month, Mr Kok said.

The principal architect for the new tower is Paul Tange, president of Tokyo-based architectural firm Tange Associates.

He is the son of Kenzo Tange, who designed the original OUB Centre tower more than 20 years ago.
 

Source : Business Times - 26 Sept 2008

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