Jet Li buys $20m bungalow in Bukit Timah

Jet Li buys $20m bungalow in Bukit Timah

Actor’s new Binjai Rise home was once owned by FJ Benjamin founder

By Joyce Teo

Li, who used to live in Los Angeles, moved his family to Singapore in 2007 and set up a branch of his charity foundation here last year.

MARTIAL arts movie star Jet Li and his wife, former actress Nina Li Chi, have bought a sprawling bungalow in Bukit Timah for $19.8 million.

The freehold property is a 22,723 sq ft good class bungalow (GCB) in Binjai Rise - a house with past links to another global celebrity, football star David Beckham.

GCBs are a prestigious class of bungalows in limited supply here, found only in gazetted prime residential areas such as Nassim Road and Ridley Park. They have a minimum land area of 15,000 sq ft.

Li, 46, who is taking a break from acting to focus on charity work, launched the Jet Li One Foundation Project in April last year jointly with the Red Cross Society of China to raise funds for victims of natural disasters worldwide.

The Beijing-born actor, whose Chinese name is Lianjie, then set up a branch of One Foundation in Singapore last year.

In 2007, he had moved his wife and two younger daughters to Singapore. He is now understood to be a Singapore citizen, according to the Business Times, which broke news of the sale yesterday.

The two younger daughters - he has two other teenage daughters from an earlier marriage - attend the Singapore American School.

Li, who previously lived in Los Angeles, has starred in numerous Hollywood and Chinese movies. Recent releases include The Mummy: Tomb Of The Dragon Emperor (2008) and Fearless (2006).

His first Hollywood leading role was in the hip hop, gongfu film Romeo Must Die.

A check yesterday showed that Li’s GCB deal was sealed in the middle of last month. The seller had suffered a loss of $1.2 million on the deal.

The seller, who has a pre-school childcare business, had bought the property in the fast-rising market of early 2007 for $21 million, or $924 per sq ft (psf). The sale price to Li works out to $871 psf.

Market sources said the previous owner had bought it from the founder of luxury goods retailer FJ Benjamin, Mr Frank Benjamin, who had lived there for many years. He now lives in the high-rise condominium Ardmore Park.

In 2001, Mr Benjamin hosted a party at this Binjai Rise house, where two models claimed in media reports to have met football star David Beckham and later had separate trysts with him. The football star did not comment on the allegations.

Market observers said the price that Li paid for the GCB is fair. With prices rising amid improved property market sentiment, the value of the Binjai Rise GCB could even be a bit higher now, said one.

Li’s purchase and the 2007 deal are the only occasions the bungalow has changed hands since 1995 - the period when records are available.

Foreigners cannot easily buy a GCB or any other landed home here as the Government restricts foreign ownership of residential property.

Permanent residents are permitted to buy landed property, but only with permission from the Government. Foreigners who take out Singapore citizenship may also buy landed property.

The exception to the restrictions is the gated residential enclave of Sentosa Cove, where ownership rules were eased to allow foreigners who are not PRs to buy landed homes or land plots, though permission is still needed.

Other Asian movie stars living in Singapore include Chinese actress Gong Li, who is married to a Singaporean. She became a Singapore citizen late last year.

Another famous gongfu star, Jackie Chan, also owns properties here, though he is not based here.

Source : Straits Times - 18 June 2009

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US unveils sweeping new financial rules

US unveils sweeping new financial rules

Fed gets strong oversight powers; new agency to protect consumers

By Bhagyashree Garekar, US Correspondent

WASHINGTON: President Barack Obama yesterday laid out the most sweeping overhaul of US financial regulations since the Great Depression to prevent a repeat of last year’s market meltdown that wreaked havoc around the world.
As part of the overhaul, the Federal Reserve, the country’s central bank, will be given expansive new powers to supervise powerful financial firms whose failure can bring the entire economy to its knees.

At the other end, a new consumer financial watchdog will look after the interests of small investors in products from mortgages to credit cards.

‘We seek to create a framework in which markets can function freely and fairly, without the fragility in which normal business cycles bring the risk of financial collapse; a system that works for businesses and consumers,’ said Mr Obama, with Treasury Secretary Timothy Geithner by his side, at the East Room of the White House.

The centrepiece of the effort involves giving the Fed oversight of the biggest banks and financial companies, including imposing exacting capital and liquidity requirements.

‘If you can pose a great risk, that means you have a great responsibility,’ the President said.

Accordingly, banks and financial firms will be asked to set aside larger amounts to offset possible losses and to adhere to executive compensation standards to rein in excessive risk-taking of the kind that toppled several banks and financial institutions last year.

And for the first time, a council of regulators will be created to monitor the stability of the financial system as a whole. The government also wants the authority to be able to wind down firms of importance to the system, if they are in trouble.

Last year, the government took the heat for allowing investment giant Lehman Brothers to collapse while a debate raged on whether the authorities had the powers to dismantle the company so as to cushion the larger economy.

A crucial piece of the reforms is a new agency with powers to protect consumers’ interests in such products as mortgages, credit cards and annuities. With this, the administration hopes to address weaknesses that leave the man in the street unclear about the risks in loans and the lenders in a position to exploit them.

‘You’ll be able to compare products and see what is best for you. The most unfair practices will be banned. Those ridiculous contracts - pages of fine print that no one can figure out - will be a thing of the past. And enforcement will be the rule, not the exception,’ said Mr Obama.

The financial reforms also include regulation of hedge funds and derivatives, and tighter scrutiny of the over-the-counter market for such products.

Failure to regulate credit default swaps was responsible for toppling US insurance giant AIG.

Mr Obama said he expected resistance to the reforms because the sting of the crisis had begun to fade.

The administration is seeking Congressional approval by the end of the year but will face a sharp partisan divide. House Republican leader John Boehner said the government presence was intrusive.

‘We’ll have the federal government deciding what interest ought to be charged on credit cards, what kind of financial products are available. It’s just going to be too big of a foot on an industry that already is having financial problems.’

Source : Straits Times - 18 June 2009

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Top-end bungalows going, going, gone

Top-end bungalows going, going, gone

7 good class bungalows sold in April and May, more deals in the works

By UMA SHANKARI

(SINGAPORE) The most prestigious segment of Singapore’s residential property sector has picked up over the past two months.

Hot sale: Movie star Jet Li bought this Binjai Rise bungalow last month for $19.8m

Seven good class bungalows (GCBs) were sold in April and May - up from just two transactions in Q1 2009 - according to Savills Singapore’s analysis of caveats captured by URA Realis.

The numbers are for bungalows with the minimum plot size of 1,400 square metres (about 15,069 square feet) stipulated for GCBs in the 39 GCB areas (GCBAs) here gazetted by the Urban Redevelopment Authority (URA). However, if bungalows with land areas below 1,400 sq m are also included, the April-May period saw 10 caveats - again significantly higher than the three caveats lodged in Q1.

‘The higher GCB sales in April and May reflect the general improvement in investment sentiment on the back of the stockmarket rally. Some GCB buyers could also be savvy investors who made money in the stock market. Going ahead, they may feel that there’s more upside than downside for GCB prices,’ says Savills’ director for prestige homes Steven Ming.

The biggest GCB transaction in May (and also so far this year) was the $30 million sale of 2A Ridley Park, which has 27,233 sq ft land area. The price works out to $1,101 per square foot (psf) of land area - also the highest on a unit land price basis in 2009.

At least one other transaction has been done at above $1,000 psf recently, although it has yet to be reflected in caveats: 1 Cluny Hill, which was sold for $16.2 million or $1,081 psf based on its 14,985 sq ft plot size. Forbes Property Realty Network brokered the deal.

Douglas Wong, director, luxury homes at CB Richard Ellis, notes that GCB investors in Singapore often own two or more such properties - one for their own residence and the rest for investment. ‘With the recent increase in activity, they may consider it opportune to liquidate some of their GCB holdings and get some cash back to plough into other investments or their business,’ he said.

Compared with just three GCB transactions in Q1, Mr Wong expects some 14-17 deals in Q2. ‘Assuming the stock market is able to hold up till the end of 2009, we estimate that some 38-45 GCBs could be sold for the whole of 2009, amounting to a total quantum of some $700-800 million,’ he added. This would not be far off from the $827 million from the sale of 51 GCBs last year.

Other notable GCB transactions in May include a property at Jervois Road that sold for $13 million ($862 psf), and another bungalow at Binjai Rise that was sold for $19.8 million ($871 psf) to international action star Jet Li.

The highest ever psf price attained for a bungalow in a GCB area is $1,899 psf for 32H Nassim Road in October 2007. But the area of that plot is 13,423 sq ft, less than the minimum GCB plot size. That’s why the GCB benchmark is generally considered $1,308 psf - the price obtained for 15 White House Park, with 22,012 sq ft land area, in August 2007.

Activity in the landed housing market first started picking up this time around in the ‘low-end’ segment - meaning terraced and semi-detached houses - about three months ago, said Michael French, MD of Asia Premier Property Consultants.

‘We have not seen such buying levels in the market for a long time,’ he said.

The activity then filtered up to smaller bungalows of about 4,000-8,000 sq ft. Then, about four weeks ago, demand for GCBs took off, with several large deals being concluded in May.

More big GCB deals are on the cards. BreadTalk founder and chairman George Quek is looking to sell his 2 Swettenham Road GCB and the price tag could be as high as $33 million, or $991 psf. Mr Quek bought the property, with 33,293 sq ft land area, with his wife last year for $27 million or $811 psf. He has appointed Newsman Realty to handle the sale, and the firm’s managing director, KH Tan, hopes to get $33 million for the 1960s bungalow.

The property will be sold through a closed tender on June 30. Mr Tan has pre-selected 30 prospective buyers whom he intends to invite to view the property and to participate in the bidding exercise. Part of the proceeds from the sale will be donated to charity.

Source : Business Times - 18 June 2009

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More high-end properties up for auction

More high-end properties up for auction

They include Belmont Road bungalow, Fernhill Road site and condo units

By KALPANA RASHIWALA

(SINGAPORE) As action in the property market drifts up to the high end, more top-notch properties are surfacing at auctions.

Up for sale: This 30-year-old good-class bungalow on Belmont Road has been put up for sale at an indicative price of $26 million to $30 million
A good-class bungalow (GCB) on Belmont Road, a 7,000-square-foot freehold site on Fernhill Road and condo units at St Regis Residences, Leonie Towers and Gallop Gables are among properties that will go under the hammer next week.

The GCB at 62 Belmont Road has been put up for sale at an indicative price of $26 million to $30 million. This works out to $797 to $919 per square foot (psf) based on the sprawling site of 32,627 square feet.

The existing single-storey bungalow, which will be offered at Knight Frank’s auction on June 23, is more than 30 years old.

‘The property can be rebuilt into a new two-storey bungalow with a basement. And there’s space for a tennis court and swimming pool,’ says Knight Frank executive director and auctioneer Mary Sai.

Colliers International’s auction on June 24 will feature a recently renovated two-storey freehold bungalow with six bedrooms and a maid’s room at 2 Branksome Road, off Tanjong Katong Road.

The property is being offered at an indicative price of $9 million or $815 psf of land area, says Colliers deputy managing director and auctioneer Grace Ng. The bungalow has a swimming pool and Balinese-style decor.

A trustee sale of a 7,232-sq-ft freehold vacant site in Fernhill Road is indicatively priced at $6.5 million to $7 million, which reflects a unit land price of $641 to $691 psf of potential gross floor area (GFA). This excludes any development charge that may be payable.

The site is zoned for residential use with a 1.4 plot ratio - the ratio of maximum potential GFA to site area. It can be developed into a small apartment project or a landed housing development.

Jones Lang LaSalle (JLL) is auctioning the property on June 26.

Another property at the event will be a sheriff’s sale of a maisonette on the 12th floor of Leonie Towers, a freehold condo at Leonie Hill. The indicative price is $2.6 million to $2.8 million or $895-$964 psf of strata area.

The sheriff’s sale is being held to recover a debt owed by the owner, which is a company, to two individuals. The unit will be sold with vacant possession.

Colliers is also offering at its auction an apartment with four bedrooms plus a maid’s room on the 13th floor of St Regis Residences. It is also selling a two-bedroom unit with a utility room on the third level at Gallop Gables.

The Gallop Gables unit, which is leased until August 2013, has a prospective price of $1,400 to $1,500 psf of strata area, working out to $1.6 million to $1.7 million. That translates to a net annual yield of about 2.7 per cent.

The St Regis unit’s indicative pricing is $5 million or $2,358 psf. The property is subject to a two-year tenancy starting this month, with a monthly rental of $11,000.

If all of the above properties are sold at the various auctions next week, it would provide a fillip to auction sales this year, which totalled $47.7 million in the first five months.

The figure for the whole of last year was $83.7 million - an 11-year low.

JLL’s head of auctions Mok Sze Sze says ‘the competitive method of auction bidding is the best way to fetch the optimum price for owners of high-end properties, especially if they are rare and few in supply’.

Source : Business Times - 18 June 2009

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