Employers to receive S$900m in second payment of Jobs Credit

Employers to receive S$900m in second payment of Jobs Credit

SINGAPORE: More than 100,000 employers will be getting the second payment of Jobs Credit next Tuesday.

These employers, with 1.4 million local workers on their payroll, will receive S$900 million.

The Jobs Credit Scheme is part of a S$20.5 billion Resilience Package announced in this year’s Budget.

Under the one-year scheme, employers will get four cash grants to help them save jobs.

Employers will receive a 12 per cent cash grant on the first S$2,500 of each month’s wages for every employee on their CPF payroll.

The first Jobs Credit payment was made on March 31. The remaining two payments will be made on September 30 and December 31.

The Inland Revenue Authority of Singapore (IRAS) will notify eligible employers by Thursday.

A Finance Ministry statement said some employers might see adjustments to the amount that they had received in the first payment.

These changes could be due to extension of CPF contribution deadline to qualify for the first Jobs Credit payment, or adjustment to Jobs Credit for employees who have worked for multiple employers or who are shareholder-directors of the company.

Shareholders who are also directors of companies are not eligible for Jobs Credit payment.

- CNA/yt

Source : Channel NewsAsia - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

344 sign up for HDB Lease Buyback Scheme

344 sign up for HDB Lease Buyback Scheme

By Desmond Wong

SINGAPORE: 344 Singaporeans have signed up for the Housing and Development Board’s Lease Buyback Scheme since its launch in March.

HDB gave out its first batch of upfront payment of $5,000 to flat owners on Tuesday.

Residents in the 30-year-old Queenstown estate were the first to receive the initial payouts from the HDB Lease Buyback Scheme.

Under the scheme, senior citizens aged 62 years and above from low-income households can sell their remaining flat lease to the government.

They can use the proceeds to buy an annuity plan that will provide them with a lifelong income stream of about $550 a month.

Those who have signed up for the scheme said it allows them to be more financially independent.

One of the scheme participants is Ng Siew Yong. She said: “I’m still working, and he’s (her husband) not working. So this scheme is good for us, because it gives us some money to save. So, if there are any problems, we can solve them.”

HDB said its goal is to ensure that elderly Singaporeans understand the options available to supplement their income.

Tay Kim Poh, HDB CEO, said: “Our objective is to reach out to the elderly residents that this is a scheme they can consider if they do not have other monetisation options… In fact there are some cases where after we have explained to them…, they felt that the scheme doesn’t quite meet their needs.”

The HDB said it has managed to reach out to about 90 per cent of the 25,000 eligible households.

The programme is applicable to 3-room flats and below. But the HDB said it would consider expanding the programme to residents of four- to five-room flats, depending on the feedback.

- CNA/ir

Source : Channel NewsAsia - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Fund managers willing to pay premium for good investor relations

Fund managers willing to pay premium for good investor relations

By Timothy Ouyang,

SINGAPORE: Most Singapore-based fund managers are willing to pay a premium to invest in shares of companies with good investor relations, according to a survey by the Singapore Management University and the Investor Relations Professionals Association of Singapore.

However, the survey also found that Singapore firms are still lagging in investor relations when compared to their counterparts in the US and UK.

SingTel, CapitaLand and Singapore Airlines are ranked among the top Singapore-listed firms when it comes to investor relations.

Two-thirds of respondents in the recent survey said they are willing to pay up to 15 per cent more on top of their market value to invest in these firms. An additional 25 per cent said they are willing to pay a premium of more than 15 per cent.

Mark Chong, associate professor, Corporate Communication Practice, Lee Kong Chian School of Business, Singapore Management University, said: “The key finding that we’ve uncovered from this survey is that investor relations plays an important role in institutional investors’ decision to invest in a particular company.

“The other key finding that we’ve been able to derive from the survey is that institutional investors are willing to pay a quantifiable premium for good investor relations.”

However, the study also showed that the level of investor relations here is only rated as average. Some respondents to the survey added that the level of corporate transparency amongst Singapore-listed firms can be improved.

So, industry watchers said companies should devote more resources to help create more business value for their firms. That is likely to help boost a firm’s credibility, a quality that respondents value the most.

Joseph Chia, general manager, Investor Relations, Professionals Association (Singapore). Said: “Long-term credibility doesn’t mean that they come to you to tell you good news or they come to you only when they need to raise funds. Long-term credibility is established when you actually communicate with investors honestly - whether it is good or bad news.”

Mr Chong added: “If they are only communicating when times are good, investors may attach less credibility to statements made when times are bad or when the news is not so pleasant.”

The study conducted in April surveyed some 38 fund managers representing 27 institutional investors with equity assets under management in Asia totalling over US$30 billion. - CNA/vm

Source : Channel NewsAsia - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Techkon to sell units in Westech Building

Techkon to sell units in Westech Building

(SINGAPORE) Techkon Investment is selling a new eight-storey light industrial building at Pandan Loop.

Marketing agent Colliers International said yesterday that the property - Westech Building - comprises 70 units, with sizes starting from 1,000 square feet. Prices start at $510 per sq ft (psf).

Most of the units have a column-free layout with a loading capacity of 7.5 kN per sq m to 15 kN per sq m and a floor-to-ceiling height of 4.5 m to 6.8 m.

The 999-year leasehold property has 120 parking lots and two loading bays with levellers.

Temporary Occupation Permit is expected in the first quarter of 2010.

Colliers said that the project is suitable for companies in the research and development, electronics, pharmaceutical and information technology sectors.

Ground-floor units, with full glass frontage, can be used as showrooms.

Units on the second to eighth storeys have windows that reach almost three-quarters of the way down from the ceiling.

Westech, in the West Coast area, has access to the Central Business District and other parts of Singapore via the West Coast Highway and Ayer Rajah Expressway, as well as the nearby Clementi MRT station and bus interchange.

It is also reasonably close to major business centres including International Business Park, Singapore Science Park and Jurong Industrial Park.

Source : Business Times - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

New projects enjoy strong weekend sales

New projects enjoy strong weekend sales

8@ Woodleigh drew mostly S’poreans, specu-vestors due to its location

By KALPANA RASHIWALA

(SINGAPORE) There seems to be no let-up in home sales.

Selling like hotcakes: 302 of the total 330 units in the 8@ Woodleigh condo were sold between Friday and Sunday. The average price of the 99-year leasehold project near Potong Pasir MRT Station is about $780 per square foot

Frasers Centrepoint is said to have sold 302 of the total 330 units in its 8@Woodleigh condo since Friday. The average price of the 99-year leasehold project near Potong Pasir MRT Station is about $780 per square foot. Buyers who opt for an interest absorption scheme (IAS) offered by the developer have to pay 3 per cent more.

The 15-storey development comprises five blocks. About 40 per cent of the units are studios, two-bedders as well as apartments with two-bedrooms plus study. The remaining 60 per cent are three- and four-bedders.

The average price of a studio unit is around $400,000 while a two-bedder typically costs between $650,000 and $670,000.

The project drew mostly Singaporean buyers. In addition to attracting those who bought units for their own occupation, the project is said to have drawn a fair bit of specu-vestors.

8@Woodleigh’s location next to the future Stamford American International School gives it a strong investment appeal.

‘Some people bought with a view to leasing the units to expat families (for the bigger units) or to the single teachers at the school (for studios and two-bedders),’ a market watcher said.

The project is being marketed by DTZ and ERA.

Over at Devonshire Road, Allgreen Properties sold 130 units last week at One Devonshire, a 36-storey freehold condo with a total 152 units.

The average price of the units sold is understood to be $1,800 psf, assuming a normal progress payment scheme.

Allgreen is charging buyers a 2 per cent price premium for IAS. For those who opt for the deferred payment scheme, the price premium is 3 per cent.

Around 65 per cent of the 130 buyers have opted for normal progress payment. Knight Frank is marketing the development.

Chip Eng Seng group’s Oasis @ Elias condo is expected to be released soon, as early as this week. The 99-year project has a total 388 units and should give some competition to City Developments’ Livia condo nearby.

Over at Flora Road, in the Upper Changi area, Tripartite Developers is getting ready to launch its freehold condo, The Gale. A Facebook page for the project will be launched to help market the project.

The Gale comprises 329 units in nine blocks. The eight-storey project has a range of unit sizes, from one-bedders to four-bedroom apartments with a roof terrace.

Buyers will have the option of signing up for IAS. Buyers and current owners of a Tripartite property will enjoy a loyalty bonus (a 0.5 per cent price discount) if they buy a unit at The Gale, and a referral fee (0.5 per cent of purchase price) if they get a friend or family member to buy a unit in the condo.

Tripartite is a joint venture involving Hong Leong Holdings, City Developments and TID Pte Ltd. Hong Leong Holdings, which issued a press statement on the project yesterday, did not give an indication of pricing. ‘The project is expected to be launched to the public in July,’ it added.

Source : Business Times - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Starhill is latest Reit to take rights route

Starhill is latest Reit to take rights route

$337m rights issue will cut gearing further; Reit may add retail space to Wisma Atria

By UMA SHANKARI

(SINGAPORE) Starhill Global Reit, which owns stakes in Wisma Atria and Ngee Ann City in Singapore, yesterday said it will raise $337.3 million through a rights issue - making it the fifth real estate investment trust (Reit) this year to raise funds by issuing new units.

Wisma Atria: Starhill may add up to 40,000 sq ft of retail space, which could cost $100 million

Together, the five property trusts have said that they will raise some $2.5 billion in all.

Two of property giant CapitaLand’s trusts account for the bulk of the amount. The group’s retail Reit CapitaMall Trust (CMT) said it will raise $1.23 billion in a rights issue in February this year, while office trust CapitaCommercial Trust (CCT) announced plans to raise $828 million last month.

The two other Reits which have announced rights issues so far are Ascendas Real Estate Investment Trust, or A-Reit (which in January said it will raise $400 million, including $108 million via a preferential offering) and Saizen Reit, which announced a much smaller $41 million rights issue.

Starhill Global Reit’s announcement took the market by surprise.

‘This rights issue was not expected as Starhill Global Reit’s gearing was one of the lowest in the sector at 31.3 per cent prior to this rights issue,’ said Macquarie Research analysts Elaine Cheong and Tuck Yin Soong yesterday.

The Reit does not have any refinancing requirements in 2009, although the bulk of its $670.1 million of borrowings are due in 2010.

The trust also had the option of refinancing its debt through traditional bank loans as banks are now more willing to lend than 12 months ago. ‘Financing conditions have definitely eased up,’ noted one analyst.

DMG & Partners Securities analyst Brandon Lee said that Reits seem to be going ahead with rights issues - even in cases where they have secured refinancing - in a bid to boost their balance sheets.

For Starhill Global Reit, the rights issue will substantially reduce gearing. Gearing would have climbed to 33.4 per cent following a 7.1 per cent fall in the value of the property portfolio at latest revaluation exercise - where the trust’s property portfolio saw its value fall from $2.1 billion at end-2008 to $1.95 billion as at June 15, 2009.

With the rights issue and the repayment of some debt, Starhill Global Reit’s gearing will be reduced to 20.7 per cent.

Likewise, CCT’s rights issue last month came as the office trust saw the value of its portfolio fall 10.15 per cent in the latest valuation exercise. The fall in portfolio value - which came about as the valuers factored in falling market rents - would have pushed the Reit’s gearing from 38.3 per cent to 43.1 per cent. But with the rights issue, the gearing instead fell to 30.7 per cent.

‘There could be more devaluations when they (Reits) do their year-end revaluations,’ said CIMB analyst Janice Ding.

Undertaking rights issues now to reduce gearing therefore provides some kind of ’safety margin’ in case property values drop further and push gearing levels higher, she said.

The market reaction to rights issues has been positive so far, which is another incentive for Reits to go ahead with rights issues, Ms Ding added.

Two of Singapore’s biggest Reits, A-Reit and CMT, saw their share prices rally after they announced rights issues.

For Starhill Global Reit, the rights issue is part of its long term proactive capital management strategy, said Franklin Heng, chief executive of the trust’s manager. The lower gearing, for one, will put the trust’s management in a better bargaining position when it comes to seeking refinancing for remaining loans.

The trust might also need to seek fresh funds as it is on the lookout for new properties to buy in both the markets it now has a presence in - Singapore, Japan and China - as well as in Malaysia and Australia, where the Reit is eyeing properties.

The Reit also said that plot ratio at Wisma Atria is not fully utilised and will look at adding up to 40,000 square feet of retail space, although the maximum allowed is up to 100,000 square feet. This could cost the trust another $100 million or so.

The rights issue is priced at 35 cents for each unit, which represents a discount of about 45.3 per cent to the trust’s closing price of 64 cents per unit on Friday, June 19. The stock was suspended from trading yesterday.

Looking ahead, more rights issues by Reits could be in the works, market watchers said.

Analysts identified Frasers Commercial Trust (FCOT) as one Reit that could soon make a cash call. The trust’s gearing rose to 58 per cent at end-Q1 2009 as its property portfolio booked a net revaluation deficit.

The write-downs FCOT has made to date may still not be enough, warned Nomura analyst Tony Darwell in a June 12 note. ‘On our numbers, we expect FCOT to book a further revaluation deficit of $247 million, pushing gearing to 0.73 times,’ he said.

While FCOT is looking to divest assets, ‘we believe the Reit will need to do more; consequently, we believe a rights issue or asset injection from the parent is likely,’ Mr Darwell added.

Source : Business Times - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Simon Cheong sells Village Centre, again

Simon Cheong sells Village Centre, again

Property helps developer strike gold for second time

By KALPANA RASHIWALA

(SINGAPORE) Developer Simon Cheong has pulled a rabbit out of his hat by making money from the same set of properties for a second time.

The Village Centre: Mr Cheong’s family vehicle sold it for $26m in 1996, bought it back for $10.8m in 2004 and sold it for $23m recently

Mr Cheong’s privately-held vehicle recently sold The Village Centre at Pasir Panjang and a site next door for $23 million.

This is double the $10.8 million he paid a NatSteel associate for the assets in 2004.

Mr Cheong’s family vehicle had sold the freehold properties to NatSteel in 1996 for $26 million.

He is not the only one to have made two rounds of money from The Village Centre and the site next door.

Property consultancy group DTZ brokered the latest deal as well as the one in 2004.

In the latest transaction, Mr Cheong’s Ridge Investments has sold the properties to Hume Homes Pte Ltd, a boutique property developer controlled by Ching Chiat Kwong, Low See Ching and Tee Wee Sien.

The Village Centre, at No 3 South Buona Vista Road, is a four-storey commercial and residential building comprising shop units on the first to third levels, seven apartments on the top level and 29 basement carpark lots.

The apartments are currently vacant while retail tenants include Cold Storage, Harry’s Bar and Thai restaurant Lemon Grass.

About 92 per cent of the total 23,363 sq ft net lettable area for the shop units are currently leased.

The next door plot at No 7 South Buona Vista Road is currently a surface carpark with 30 lots.

The properties can be redeveloped.

Under Master Plan 2008, The Village Centre plot is zoned for commercial and residential use with a 3.0 plot ratio (ratio of maximum potential gross floor area or GFA to land area).

The next door plot, No 7 South Buona Vista Road, is zoned for residential use with a 1.4 plot ratio.

An estimated development charge (DC) of $7 million is payable to redevelop the two plots to their maximum potential.

However, there is a major road line sitting on the two sites, which means that Hume would have to make setback provisions if it redevelops the properties.

Assuming the properties are redeveloped to their maximum Master Plan 2008 potential, the $23 million purchase price reflects a unit land price of $351 per square foot of potential GFA inclusive of the $7 million DC.

There is at least one other instance in recent years of a property trader making profit from selling the same property twice.

Lippo group sold One Phillip Street, a 999-year leasehold office block, in early 1996 for $76.8 million to Kewalram Group.

Then Lippo unit Auric Pacific bought back the 16-storey office block from Kewalram in 2006 for $37.6 million.

Last year, Auric sold the asset to New Star International Property Fund for about $99 million.

Source : Business Times - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com

Call for Singapore to tap growth market for seniors

Call for Singapore to tap growth market for seniors

By Kate Lim

Singapore can be a trend-setter and provide services for ageing populations in Asian countries.

SINGAPORE needs to reposition itself to take advantage of rising affluence, urbanisation and ageing populations in Asia, according to Economic Development Board (EDB) managing director Beh Swan Gin.

He said Singapore stands to reap significant rewards by positioning the nation as a home for innovation aimed at addressing key demographic changes across the region.

‘The rising middle class in China, India and Asean will result in tremendous economic affluence…they will demand better health care, lifestyle products and services which will create tremendous new market growth opportunities here.’

Dr Beh was speaking at a luncheon organised by the Singaporean-German Chamber of Industry and Commerce.

Singapore will benefit from developing innovations that will meet the unique needs of these Asian customers, he said.

Such services are also expected to be in demand by ageing Asians from countries with greying populations, such as China and Japan.

One way of capturing the Asian markets would be for Singapore to become what Dr Beh terms a ‘lead market’ - where popular trends here catch on in the rest of Asia as well.

To become a lead market requires a transformation of domestic demand such that it can set the pace for Asian tastes, which will in turn kick-start Singapore on its way to becoming a lifestyle hub, said Dr Beh.

‘Businesses go where talent aggregates,’ he noted. ‘Being a lifestyle hub will make Singapore an attractive place for people who wish to stay and develop their careers here.

‘At the same time, it will also confer yet another comparative advantage that will hold us in good stead as we strive to be the business centre in Asia.’

Source : Straits Times - 23 June 2009

Buy Sell Rent invest In Singapore Property Real Estate

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com