Confusion over Causeway walk ban

Confusion over Causeway walk ban

ICA unaware of rule; Johor official says law in place but not enforced yet

By Esther Tan

PEOPLE are no longer allowed to walk between the Singapore and Malaysia checkpoints at the Causeway, but there seems to be some confusion about the new rule.
The ban was implemented by Malaysia after the opening of the Sultan Iskandar Customs, Immigration and Quarantine (CIQ) complex, which is about 500m further up the road from the old complex.

Johor state immigration director Mohd Nasri Ishak told The Straits Times yesterday that walking on the Causeway - from both directions - was not permitted.

But Singapore’s Immigration and Checkpoints Authority (ICA) said it was not aware of the rule and its officers do not stop people who opt to walk.

Mr Mohd Nasri said that although the law is already in place, it has yet to be enforced but it will be soon.

He did not give a specific date when enforcement will begin.

Security, police and immigration officers at the Malaysian checkpoint verbally inform those who pass through the complex about the new ruling, he added.

Mr Mohd Nasri explained that as the new complex was built for security reasons, people are not allowed to walk in unless they arrived in a vehicle.

‘The government doesn’t want just anyone to walk into the building,’ he said.

Mr Mohd Nasri also pointed out that the roads at the checkpoint were not designed for walking as they have no walkways. ‘The public should realise that walking to the new complex is very dangerous,’ he said.

Malaysia’s ban on walking on the Causeway has resulted in many Malaysians being stranded at the Singapore checkpoint during massive jams along the Causeway, The Star newspaper reported earlier this week.

Prior to the ban, people were able to walk across to the old Malaysian checkpoint when there was a lack of buses during the peak periods. It took about 15 minutes to walk between the two sides.

However when the new checkpoint opened, people on the Malaysian side found that they could not walk across, and this resulted in ugly scenes as people fought their way to board buses at the new CIQ complex.

When contacted, SBS Transit’s vice-president of corporate communications Tammy Tan said ridership in general has remained fairly constant.

But an SMRT spokesman said that the company has observed a general increase in passengers using its bus service 950, but did not give exact figures.

Malaysian Ng Wee Chin, a 22-year-old deliveryman who works in Singapore, said: ‘I’m not walking over to Singapore from the new checkpoint because it’s too far and dangerous.’

His sentiments were echoed by Singapore Institute of Management student Hau Siow Hoon.

The 22-year-old Malaysian has not taken the walk from the new checkpoint to Singapore and she does not intend to try.

‘Even the distance between the old checkpoint and the Singapore checkpoint is too far for me,’ said Miss Hau.

She added that the narrow roads and the lack of a walkway made it dangerous for pedestrians.

It’s no walk in the park

THE Straits Times took a hike between the Singapore checkpoint and the new Sultan Iskandar Customs, Immigration and Quarantine (CIQ) complex, and discovered that the roads in between made for a dangerous walk.

Starting from the Singapore Woodlands checkpoint, the 1km walk along the Causeway bridge was an easy one with a designated footpath on the side.

Midway along the bridge was an unofficial pick-up and drop-off point.

From here, people could either hitch a ride on to the new CIQ complex or alight to continue their journey to the Singapore checkpoint on foot.

After the bridge ended, the next 200m was a relatively safe, meandering walk on a pavement that passed through the old Malaysian checkpoint.

This led to a 150m-long road section that was cordoned off from passing vehicles with a row of cement barricades.

Problems began in the next 150m stretch.

Progress became markedly slower, with no proper footpath or walking area except for a 30cm-wide cement ledge.

With a metal fence on the immediate left of the ledge and motorcycles zipping by on the right, one has to be extremely alert and careful. At times, the motorbikes came within inches of those walking on the ledge.

In addition to that, the path towards the new CIQ meant walking in the same direction as the traffic. It was virtually impossible to look out for vehicles as they came from behind.

In order to make it to the bus bay that led to the immigration counters, the team had to head up a 100m-long ramp that led to the bay.

The easy part - the 1km walk along the Causeway bridge with a designated footpath on the side. — ST PHOTO: LAU FOOK KONG

After the bridge is this 150m-long section of road that has been cordoned off by a row of cement barricades, offering pedestrians some form of protection against vehicles zipping by.

The section of road that follows the stretch with just a 30cm-wide ledge for walking. In order to reach the ramp leading to the bus bay, pedestrians must run across the buy three-lane road.
This meant a run across the three-lane road, which had a constant stream of traffic, to reach the ramp that also did not have a footpath.

On the way up the ramp, The Straits Times team was spotted by four CIQ officers at the immigration kiosks for cars.

However, no one called out or signalled for us to stop.

The hike ended at the top of the ramp, where buses stopped for passengers to alight. No other pedestrians were spotted along the walk, which took about 45 minutes.

The walk from the CIQ complex to the Singapore checkpoint was observed to be just as hazardous as there were no proper footpaths along the way.

ESTHER TAN

Source : Straits Times - 07 Jan 2009

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Gaza staring at humanitarian crisis

Gaza staring at humanitarian crisis

Red Cross issues warning as many of the territory’s 1.5 million people run short of food, water and power

Israeli mobile artillery firing towards targets in the southern Gaza Strip yesterday as the death toll on both sides rose.

GAZA: The Red Cross yesterday warned of a ‘full-blown’ humanitarian crisis as Israel entered a southern Gaza town and said there could be no ceasefire unless Hamas was prevented from re-arming.
‘That is the make-or-break issue,’ Mr Mark Regev, a spokesman for Israeli Prime Minister Ehud Olmert, said about ensuring an end to weapons smuggling along the Gaza-Egypt frontier.

On its part, Hamas has demanded a lifting of Israel’s blockade of Gaza as a condition for any ceasefire.

But there was a glimmer of hope that the 11-day-old conflict in which hundreds of Palestinians have been killed could be brought to an end, as a senior Israeli official said French President Nicolas Sarkozy, in partnership with Egypt, was pursuing ‘a serious initiative’ for a ceasefire.

‘We are now working on something concrete,’ the official said, disclosing talks on the size of an ‘international presence’ along the blockaded Gaza-Egypt border, where Israel wants to stop rockets and other weapons from reaching Hamas through tunnels.

Mr Sarkozy said he also asked Syria yesterday to help convince Hamas to cooperate in international efforts to end the Israeli assault in the Gaza Strip.

‘I know the importance of Syria in this region and its influence on a number of players. I don’t have any doubt that President Bashar Al-Assad will throw all his weight to convince everyone to return to reason,’ Mr Sarkozy said, after meeting the Syrian leader in Damascus.

Even as ceasefire efforts gathered speed, however, an Israeli air strike killed three Palestinians in a school run by the United Nations Relief and Works Agency in the Gaza Strip, where people had sought refuge from the fighting, medical officials said. Two people had been killed in a strike on another school earlier in the day, while a third school was hit later, with at least 20 deaths reported.

And Mr Pierre Kraehenbuehl, director of operations for the International Committee of the Red Cross, said: ‘There is no doubt in my mind that we are dealing with a full-blown and major crisis in humanitarian terms.

‘The situation for the people in Gaza is extreme and traumatic as a result of days of uninterrupted fighting.’

At the same time, Palestinian witnesses said Israeli forces have pushed into Khan Younis in southern Gaza as the army widened the ground assault it launched four days ago against Hamas militants after a week of air strikes failed to stamp out cross-border rocket fire.

There was also intense fighting overnight on the outskirts of Gaza City, where residents huddled indoors in fear. Deaths recorded by Palestinian medics were yesterday hovering at around 580.

Most of the several dozen deaths reported by hospitals in the Hamas-run Gaza Strip in recent days have been civilians.

The Israeli military said it has killed 130 militants since last Saturday, a figure that suggested the total Palestinian death toll since Dec 27 might be close to 700 and that bodies could still be on the battlefield.

Meanwhile, many of the Gaza Strip’s 1.5 million people are suffering from lack of food, water or power.

In southern Israel, schools remain closed and hundreds of thousands of people have been rushing to shelter at the sound of alarms heralding incoming rockets.

Ten Israelis, including three civilians hit in Palestinian rocket attacks, have been killed in the conflict.

At least five rockets fired from the Gaza Strip landed in Israel yesterday, including one that hit the town of Gadera, 28km from Tel Aviv, police said. A three-year-old girl was wounded.

Mr Regev said Hamas, which seized the Gaza Strip from rival group Fatah in 2007, had used the previous six-month ceasefire brokered by Cairo to double the range of its rockets from 20km to 40km.

Israel launched the current offensive after Hamas called off the six-month truce last month and stepped up cross-border rocket attacks in response to Israeli raids and a blockade of the Gaza Strip.

Israel, whose leaders will fight a parliamentary poll on Feb 10, has made clear that its priority is securing the safety of its citizens, but heavy casualties could erode strong public support for the operation.

Israel pulled its troops and more than 8,000 settlers out of Gaza in 2005 after 38 years of occupation in a move that many at the time hoped would lead to a breakthrough for relations between the Jewish state and the Palestinians.

EXTREME SITUATION
‘There is no doubt in my mind that we are dealing with a full-blown and major crisis in humanitarian terms. The situation for the people in Gaza is extreme and traumatic as a result of 10 days of uninterrupted fighting.’

Mr Pierre Kraehenbuehl, director of operations for the International Committee of the Red Cross

REUTERS, AGENCE FRANCE-PRESSE

Source : Straits Times - 07 Jan 2009

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Property analysts expect public housing market to do well in 2009

Property analysts expect public housing market to do well in 2009

By Ng Baoying,

SINGAPORE: Singapore’s public housing market is expected to do well this year, compared to the slumping real estate markets across Asia.

The economic slowdown means homebuyers are likely to opt for cheaper units from the Housing and Development Board (HDB) over more expensive housing like condominiums.

On the private housing front, transaction volumes and prices have fallen at an increasing pace in recent months following the financial sector’s collapse in the US.

The last time demand for HDB resale flats shot up was in 1998, a year after the Asian financial crisis hit Singapore’s economy. 49,000 resale flats were sold then, compared to 31,000 in 1997.

Numbers have since stabilized to about 30,000 sales a year on average.

ERA expects to see transaction volumes increase to 34,000 in 2009 from about 30,000 last year, given the current financial turmoil.

Eugene Lim, associate director, ERA Asia Pacific, said: “More than 80 per cent of the population base is in HDB flats. The support level is there. HDB flats is basic housing for everyone. So it’s a basic commodity, regardless of whether the market is up or down, the basic demand is still there.”

Compared to private properties, the cost of public housing is unbeatable. Even after price increases of late, HDB units still cost less than S$300 per square foot on average, compared to at least S$750 per square foot for a private apartment.

HDB prices grew about 14 per cent last year and 17 per cent in 2007.

PropNex expects price increases to be less aggressive this year at between five and eight per cent for three- and four-room flats. That is still far better than private properties, which are seeing falling prices.

However, the real estate agency warns that prices for five-room and executive flats may be at risk of echoing trends in private homes.

Mohamed Ismail, CEO, PropNex Realty, said: “Some of the bigger flats are in the market, floating for more than two months with no takers, even at zero cash (above valuation).

“And if this trend continues…, what is likely to happen in the third quarter, midway through this year, will be bigger flats will start to fall or even go below value.”

Analysts noted that location-wise, buyers tend to avoid pricey areas like Queenstown and Bukit Merah in such tough times, in favour of places like Jurong and Woodlands. - CNA/vm

Source : Channel NewsAsia - 07 Jan 2009

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Obama’s in-tray is piling up - fast -WASHINGTON

Obama’s in-tray is piling up - fast -WASHINGTON
Problems have been snowballing as he prepares to take power in two weeks

(WASHINGTON) Nobody said this was going to be easy. From his suite at the historic Hay-Adams Hotel, US President-elect Barack Obama is watching problems pile up as he prepares to take power in two weeks.

A plan to spend up to US$1 trillion to stimulate the sagging US economy will not be ready for Mr Obama to sign as soon as he takes office on Jan 20. Instead, negotiations could stretch into mid-February.

Israel’s invasion of Gaza to quell Hamas rocket fire on its cities has pushed the Middle East higher on Mr Obama’s already long list of foreign challenges that includes Iraq, Afghanistan and Russia. Mr Obama’s silence on the Israeli action has led to some sniping abroad.

And his relatively smooth transition to power took a hit when his choice for Commerce secretary, New Mexico Governor Bill Richardson, withdrew because of a federal investigation into a state government contractor who contributed to Mr Richardson’s political committees.

While Mr Obama’s inauguration is much-anticipated and could draw more than one million Americans to Washington, he takes office at a time of great national anxiety.

Developing a stimulus plan to jolt the US economy back to life and get Americans back to work remains top priority. The package could quickly become the subject of partisan bickering in Congress - a fate that Mr Obama wants to avoid.

Aides said that Mr Obama is expected to make his case for a stimulus this week in a major speech. He made the rounds on Capitol Hill on Monday to stress that he believes the plan should not ‘get bogged down in a lot of old-style politics on either side. There’s not going to be a lot of finger-pointing or posturing. The American people need action now,’ he said.

Conservative Republicans who oppose bigger government are interpreting Mr Obama’s statement that he would like to create three million new jobs, 80 per cent of them in the private sector, to mean that he would like to to create 600,000 new government jobs.

The Obama team says these workers would rebuild bridges and roads, a plan reminiscent of President Franklin Roosevelt’s public works programmes of the 1930s.

‘I’m no math genius,’ wrote Daniel Mitchell of the libertarian CATO Institute in a Web posting. ‘But 20 per cent of three million works out to be 600,000 new bureaucrats to harass the American people. This is hope and change?’

Mr Obama defended his silence on the Gaza war on Monday, telling reporters that when it comes to foreign policy, he would adhere to the principle of ‘one president at a time. You can’t have two voices coming out of the United States when you have so much at stake.’

And an Obama transition aide added: ‘During this transition period, we are not engaging in any action that could send confusing signals to the world about who speaks on behalf of the United States.’

Some critics say Mr Obama missed a chance to break from President George W Bush’s pro-Israel stance, others that he missed a moment to stand with Israel. ‘Mr Obama’s silence during these 10 deadly days in Israel has been deafening and heard all over the world,’ said Republican strategist Scott Reed. ‘I think it’s caution in that there’s one president at a time but the lack of even supporting the president’s position has been shocking to all Americans.’

But Shibley Telhami, of the Saban Center for Middle East Policy, said Mr Obama was correct to keep quiet.’It’s very wise for him to say nothing,’ Mr Telhami said. ‘You don’t want to be defined by the immediate crisis when you can’t do much anyway to influence what is going on on the ground.’ - Reuters

Source : Business Times - 07 Jan 2009

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Brazil drums up Singapore investments

Brazil drums up Singapore investments

Increasing flow reinforces two-way trade, which hit US$2.6b in 2007

By CHUANG PECK MING

SINGAPORE has the second biggest Asian direct investments in Brazil with an estimated US$200-plus million there, according to Tatiana Rosito, the economic and trade counsellor at the Brazilian embassy in Singapore.

But the sum, while still growing, is a drop in the bucket compared to the amount Singapore is pouring elsewhere, she says in a special embassy report, It’s time for Brazil in Singapore.

And this gives her hope. ‘Looking into the stock of outward direct investments by Singaporean companies, one can be optimistic about the potential of future investments in Brazil, which today represent only a small fraction of the total US$137.5 billion,’ Ms Rosito says.

Over half - 51 per cent - of the US$137.5 billion Singapore has committed overseas is pumped into Asia, especially China, Malaysia, Indonesia and Hong Kong.

Singapore has invested some US$31 billion - just over one fifth of its total investments - in Central/South America and the Caribbean, including Brazil.

This is likely to jump in the near future, as Temasek Holdings recently announced it is opening an office in Brazil to explore investment opportunities in Latin America.

But for now, Singapore’s investments in Brazil are a distant second to the Japanese, among Asians.

Through emigration, Japan has not only built up a Japanese community in Brazil but also got to own a sizeable piece of the country’s economy through some US$11 billion in direct investments (according to figures by the Japan External Trade Organisation).

And Japan’s share, which accounts for about 1.5 per cent of the total foreign investment stock in Brazil, is peanuts compared to the United States’ investments in the country.

Uncle Sam’s share is around 25 per cent, according to Brazil’s central bank.

Ms Rosito says that notable among Singapore’s investments is Keppel Offshore & Marine’s acquisition of the former Verolme shipyard in 2000, which has more than 6,000 workers on its payroll.

‘Jurong Shipyard, which previously had a partnership with Maua shipyard, recently announced McLaren shipyard as a new partner,’ she says. ‘In addition, there are significant investments in the area of paper and pulp.’

In the electrical and electronics sector, Creative Technology and Flextronics - a world leading manufacturer of parts for major brands in telecommunications equipment - have a presence.

‘There are, moreover, companies in the field of shipment and storage of commodities, such as APL, Olam and Noble,’ Ms Rosito says.

‘Finally, Raffles Design Institute has also established a branch in Sao Paulo (Brazil’s largest city). In total, there are over 20 companies.’

The increasing flow of Singapore investments into Brazil has also ‘reinforced’ the thriving trade between the country and Singapore.

Singapore-Brazil trade rose 20 per cent from 2006 to reach US$2.6 billion in 2007.

Brazil’s exports to Singapore totalled US$1.38 billion and its imports from Singapore added to US$1.21 billion.

Fuel oil, meats and ‘other machines’ make up the bulk of Brazil’s exports to Singapore.

It imports mainly electrical and electronic goods from Singapore.

Source : Business Times - 07 Jan 2009

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Research house upbeat on property stocks

Research house upbeat on property stocks

It cites falling interest rates and possible favourable Budget measures

By EMILYN YAP

INVESTORS can re-visit property stocks as falling interest rates and possible Budget measures improve the operating environment for real estate companies this year, said Kim Eng Research in a report yesterday.

In favour: Kim Eng Research sees the possibility of property re-emerging as the sector to watch from as early as 2H09
The report came on a day when property stocks retreated after a rally in earlier sessions. CapitaLand, one of Kim Eng’s top picks within the sector, ended a five-day rally with a 19-cent fall to $3.40. City Developments also shed 10 cents to close at $7.15.

In its report, Kim Eng said that transactions across all property asset classes are likely to remain at a standstill at least until mid-2009. But ‘we think that there are opportunities for an increased risk appetite . . . the share prices seem to suggest that investors have been overly risk-averse’, it said.

‘When economies emerge from the recession and market confidence returns, the property markets will be quick to react, possibly re-emerging as the sector to watch from as early as 2H09.’

The research house believes that property companies can benefit as economies cut interest rates to battle recession. It noted that the three-month Libor is now at its lowest level since June 2004.

‘These measures will lower the developers’ interest payments for loans taken up for land acquisitions and construction. Furthermore, when sufficient risk appetite has returned, the developers may also find it easier to access credit for new investments,’ it explained.

Banks may also introduce more attractive mortgage packages in the low interest rate environment, encouraging genuine homebuyers to enter the market, said Kim Eng.

This year’s Budget may also contain help measures for the property sector - for instance, the government could reinstate the deferment of stamp duties until projects are complete, said Kim Eng.

And compared with the days of the Asian financial crisis, many property developers today have healthier balance sheets, it added. ‘Overall, our picks for the property sector are City Developments and CapitaLand.’

But another research house OCBC Investment Research downgraded its rating for CapitaLand from ‘buy’ to ‘hold’ on Monday. Valuing the counter at $3.27, analyst Foo Sze Ming said that ‘we see little upside to its share price at the moment’.

Source : Business Times - 07 Jan 2009

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CapitaCommercial Trust lands $580m refinancing

CapitaCommercial Trust lands $580m refinancing

Separately, it aborts plans to redevelop Market Street Car Park

By UMA SHANKARI

CAPITACOMMERCIAL Trust (CCT) has secured refinancing for $580 million of loans due in March 2009.

Staying put: Aborting redevelopment of Market Street Car Park because of uncertain market outlook
DBS Bank, Standard Chartered Bank, United Overseas Bank and The Bank of Tokyo-Mitsubishi UFJ will provide a secured three-year term loan of up to $580 million for CCT.

The trust intends to draw down the loan in March 2009 to refinance the borrowings under its commercial mortgage-backed securities (CMBS).

CCT also said yesterday that it would abort the redevelopment of Market Street Car Park into a Grade A office and commercial building.

The trust said in April last year that the decision on the planned redevelopment would be made only after mid-2009.

But after taking into consideration the uncertain market outlook, tight credit conditions, high redevelopment cost and significant size of the project, CCT’s manager has decided to abort the project immediately.

When the redevelopment was first announced in January 2008, CCT said that the total project cost could range from $1 billion to $1.5 billion, depending on the development premium.

Analysts said that it was no surprise that CCT has secured refinancing, as it is backed by property giant CapitaLand.

‘The news is definitely very positive for CCT as well as for the Reit (real estate investment trust) sector as a whole,’ said DMG & Partners Securities analyst Brandon Lee.

In a note yesterday, Kim Eng Research chose CCT as its top pick in the S-Reit sector.

‘We believe that CCT will be able to refinance its debt without much hassle, although inevitably at a higher rate due to the tight credit conditions,’ the firm said before CCT announced its refinancing deal.

CCT said that the all-in interest cost for the loan is well within the projections assumed in a circular to unitholders dated June 9, 2008.

The circular assumed an average interest rate of about 4 per cent per year (including margins and excluding the amortisation of debt issuance expenses) for the 2009.

CCT said that the CMBS is secured by seven of its properties. However, the term loan will only be secured by just one property - Capital Tower.

‘We believe that the banks’ willingness to lend to CCT with security over just one asset, Capital Tower, is an affirmation of their confidence in the quality and value of CCT’s portfolio as well as its bluechip tenant base,’ said Lynette Leong, chief executive of the trust’s manager.

As a result, out of CCT’s portfolio of 11 properties, eight properties with a total asset value of $2.8 billion will be free of any encumbrance.

This will provide the trust with financial flexibility in managing its capital and balance sheet, said Ms Leong.

And as for the decision to abort the redevelopment of Market Street Car Park, Ms Leong said that the move was in line with the need to conserve cash, adding: ‘This decision provides certainty to our investors in removing any overhang in capital requirement.’

CCT can also now enter into longer-term leases and adopt longer-term plans through repositioning the retail tenant mix, she said.

CCT shares lost 4.5 cents, or 4.6 per cent, to close at 93.5 cents yesterday amid a broad market pullback.

Source : Business Times - 07 Jan 2009

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Should Temasek’s thoughts turn closer to home?

Should Temasek’s thoughts turn closer to home?

By ARTHUR SIM
CORRESPONDENT

LONG before Temasek Holdings began investing in big banks and financial institutions, it was better known for investing in smaller local companies.

Now, with the recession here expected to be protracted, and investing in global business fraught with risk, the time could be right for Temasek to shift its focus back to Singapore, if only to help credible local businesses survive the downturn.

Temasek has championed specific initiatives to boost local businesses before.

In 1999, it revealed that it had created a $100 million fund called Century Private Equity Holdings (CPEH) 1999 to provide capital to local companies for international expansion. Shortly after, it invested about $18 million in fruit distributor FHTK Holdings. Plastic injection moulding specialist Sunningdale Precision Industries was another company in which CPEH held a stake.

Then, in 2004, Temasek again announced plans to pump in another $100 million into small and medium-sized enterprises (SMEs). This was on top of about $72 million it invested in five companies since 2002 based or listed in Singapore: electronics maker Autron Corp; water treatment company Hyflux; food ingredients supplier Olam International; shipping company Cosco Corp (Singapore); and automotive products distributor and manufacturer YHI International.

Of course, there are different reasons why Temasek invested in overseas companies like Merrill, Standard Chartered, Bank Danamon, Bank of China, and not forgetting Shin Corporation.

However, the criteria for investment has generally been growth and regional expansion. Do so few Singapore businesses match these criteria?

While Temasek has in recent years often said that it is a ‘commercially driven’ company, this may not always have been its raison d’etre.

Reading very closely between the lines of Temasek’s mission statement, one can argue that, unlike GIC, Temasek has a social mandate to support businesses.

‘As a long-term investor, we have a stake in the lives and well-being of our fellow men. We recognise that social, environmental and governance factors can impact the larger community as well as the long-term sustainability of companies and businesses,’ reads Temasek’s corporate profile.

So with the ‘larger community’ decidedly in need of help, could or should Temasek step up?

Interestingly, almost 10 years ago, Temasek chairman S Dhanabalan said in an interview: ‘I have always held the belief that regionalisation is only meaningful if there is a link with Singapore. Otherwise, they’d just be financial investments.’ This is a comment that could ring with new relevance today.

Source : Business Times - 07 Jan 2009

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Mapletree Business City snaps up big-name tenants

Mapletree Business City snaps up big-name tenants

HSBC, Unilever, SAP and Amex sign leases before park’s completion in 2010
By KALPANA RASHIWALA

(SINGAPORE) The business park space at Mapletree Business City coming up in the Alexandra Road area has been substantially pre-leased ahead of its expected completion in second half 2010.
Developer Mapletree Investments, a fully-owned unit of Temasek Holdings, is said to have secured big-name tenants for a total of about 570,000 sq ft - including HSBC (190,000 sq ft), Amex (100,000 sq ft), consumer products giant Unilever (150,000 sq ft) and German software major SAP (around 120,000 to 130,000 sq ft).

CB Richard Ellis is understood to have brokered the leasing deals for the first three tenants, but it declined to comment on specific commercial terms of the leases.

However, BT understands that monthly rents signed for the deals are in the single-digit range and the lease durations are longer than normal.

In contrast, the average monthly rental value for Grade A office stood at about about $15 psf at the end of last year, after a 20 per cent slide from Q3 2008.

‘Mapletree Business City offers high-quality commercial space in a lower-cost location. In these austere times, that resonates with many occupiers,’ CBRE executive director Moray Armstrong said.

 
 
In addition, the attraction of Mapletree Business City is the access tenants will have to a host of facilities - including an air-conditioned food court, child care centre, gym, swimming pool, a 350-seat auditorium and meeting rooms.

Industry observers suggest the space taken by the first four tenants signed up at Mapletree Business City could stem from a combination of expansion of existing space requirements and consolidation from some existing locations.

‘Mapletree Business City will have large floor plates, so it makes sense for big users to relocate to a single venue like this to optimise their space requirements, rather than be in different buildings with smaller floor plates. At the same time, they would be reducing occupancy costs by moving out of the CBD,’ said Cushman and Wakefield Singapore managing director Donald Han.

HSBC’s current locations include HSBC Building at Collyer Quay, Singapore Post Centre in Paya Lebar, Comtech (next to Mapletree Business City) and the Claymore area. Amex, which has leased space at Marina Bay Financial Centre, has operations in Hitachi Tower in Collyer Quay and The Concourse at Beach Road. Unilever’s business locations in Singapore include UE Square at Clemenceau Avenue and along Vision Crest in Penang Road. SAP is at Goldbell Tower at Scotts Road and 63 Market Street.

BT understands that Mapletree Investments is in talks with other potential tenants to take up business park space at Mapletree Business City. The development will have about 1.7 million sq ft net lettable area - of which nearly 1.3 million sq ft will be for business park space in three blocks and about 400,000 sq ft will be offices in an 18-storey block. The business park blocks comprise a 17-storey tower and two 14-storey blocks joined at the upper levels.

Mapletree Investments is developing the project on the site of the former Alexandra Distripark (Blocks 1-3) and on an adjacent plot at Alexandra Terrace.

The development will be integrated with Mapletree’s adjacent properties - The Comtech and PSA Building - to form the group’s Alexandra Precinct assets. PSA Building will be directly connected to Labrador MRT Station under the Circle Line opening in 2010.

Source : Business Times - 07 Jan 2009

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