MM Lee receives lifetime achievement award in Washington DC

MM Lee receives lifetime achievement award in Washington DC

By Channel NewsAsia’s Daniel Ryntjes

WASHINGTON: Singapore’s Minister Mentor Lee Kuan Yew has been given a lifetime achievement award in Washington.

He used the occasion at the US-Asean Business Council event on Wednesday to urge the United States to remain engaged in Asia or risk losing its global influence.

Former US presidents George H W Bush and Bill Clinton sent messages of support, as did President Obama whom he will meet at the White House on Thursday.

Mr Clinton said: “His work as Prime Minister and now as Minister Mentor has helped literally millions of people from Singapore and all across Southeast Asia live better, more prosperous lives.”

Mr Bush said: “All of us who have worked with him have benefited from his wisdom, his insight and his dedication.”

The Minister Mentor received the lifetime achievement award, witnessed by US foreign policy giants like Henry Kissinger.

Mr Kissinger said: “He has become a seminal figure for all of us. As I’ve said, I’ve known him for 40 years. I would say I have learned, I’ve not learned as much from anybody as I have from Lee Kuan Yew.”

After receiving the award, Mr Lee praised President Obama for effectively replacing the Group of Eight group of nations with the broader G20 at a recent summit in Pittsburgh.

Mr Lee said: “The American President has taken a realistic view of the changed world, although for the next two or three decades, America will remain the sole superpower.”

And on the evening before his visit to the White House, the minister mentor also offered some advice to President Obama.

Mr Lee said: “If the US does not recognize that the Asia-Pacific is where the economic centre of action will be, then it loses that economic superiority or that lead that it has in the Pacific; it will lose it worldwide.”

The advice comes as America’s Commander-in-Chief prepares to visit Asia, where he will attend the Asia-Pacific Economic Cooperation (APEC) summit in Singapore.

- CNA/ir

Source : Channel NewsAsia - 29 October 2009

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Far East Organization to add 15 overseas properties under new brand

Far East Organization to add 15 overseas properties under new brand

By Ryan Huang

SINGAPORE : Property developer Far East Organization is banking on local culture to grow its new hospitality brand.

Under its new concept, Village Hotels & Residences, it aims to provide guests with a taste of the local culture in the surrounding community.

Far East is hoping to add 15 new overseas properties under the brand in the next five years, in markets such as China, Indonesia, Malaysia and Vietnam.

An experience that draws on the culture of the local community - that is what Far East aims to offer guests at its Village Hotels & Residences. For example, guests at the Albert Court Village Hotel will be able to learn more about Little India through guided tours or dining options.

It is one of three hotels, along with four residences in Singapore, that have been selected by Far East to spearhead its new hospitality branding. The other two hotels are Changi Village Hotel, and the Golden Landmark Hotel which will be renamed to Landmark Village Hotel.

The four residences comprise those in Central Square, Hougang, Robertson Quay, and West Coast Road.

Chan Iz-Lynn, assistant director (Hospitality Operations and Service Quality), Far East Organization, said: “We work very closely with the community around the precinct. One example we have, we have specially commissioned this local walking guide for our customers so they can actually move around the precinct on their own on feet, and we recommend them places to eat, to visit and to shop.”

The Village brand will be targeting the mid-range segment and is expected to have an equal mix of leisure and business guests.

Far East aims to have 15 new properties around the region in the next five years - tapping into the strong growth expected in the Asian hospitality market.

Raphael Saw, director, Hospitality Operations, Far East Organization, said: “We are positive that we are moving into a time whereby the demand is on the upward trend.

“There are a lot of demand generating activities, and demand generating attractions that are going to come on-stream, some of them we are very familiar - the integrated resorts, and the remaking of Orchard Road…

“So if we look forward from here, we are optimistic in terms of demand coming to Singapore. Thereby, it will reflect in a positive trend for occupancy.”

A recent study by Pacific Asia Travel Association forecasts that international arrivals will grow to nearly 77 million by 2011, compared to 62.2 million in 2007. For Northeast Asia, international arrivals are expected to hit almost 240 million by 2011.

Far East has already invested some S$12.5 million since 2005 on areas such as refurbishing its properties, and service training. It plans to pump in about the same amount over the next three years as it continues to build the brand.

The brand will be officially launched on October 30. Going forward, Far East expects growth for its local properties to be driven by arrivals particularly from Malaysia, Indonesia, and China.

It said one of its fastest growing segments are visitors from Malaysia, and it expects that customer base to double by the end of 2010. - CNA/ms

Source : Channel NewsAsia - 29 October 2009

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Wing Tai’s first-quarter profit up 42%

Wing Tai’s first-quarter profit up 42%

THE residential property boom and the robust sales it has delivered gave Wing Tai Holdings plenty to cheer about in the first quarter of its financial year.

Profit and turnover posted healthy growth as buyers snapped up more homes developed by Wing Tai in the three months to Sept 30 than in the whole of last year.

Net profit jumped 42 per cent to $46.33 million, up from $32.59 million the same quarter last year, while revenue surged 106 per cent to $277.18 million, up from $134.3 million.

The group sold about 300 units, with sale proceeds totalling around $650 million from three projects - Belle Vue Residences in Oxley Walk, Ascentia Sky off Alexandra Road and The Floridian in Bukit Timah. Progressive sales were also recognised from The Riverine by the Park.

This compares with sales of 100 residential units worth $208.5 million for the 12 months to June 30, the end of its financial year.

Some developments were also commanding higher prices. In August, the firm noted that the selling price for units in the upmarket Belle Vue Residences rose from an average of $1,700 per sq ft (psf) to $1,900 psf, with some units being sold for as high as $2,400 psf.

The group told the Singapore Exchange yesterday that it ‘will continue to keep a close watch on the market and will release more residential units for sale at the most appropriate time’.

Earnings per share was 5.96 cents, up from 4.13 cents in the first quarter last year, while net asset value per share stood at $2.07 as at Sept 30, up from $2.03 at June 30.

Wing Tai’s share price fell three cents to $1.64 ahead of the earnings announcement yesterday.

The stock is up 97.6 per cent this year compared with the 50.38 per cent gain in the Straits Times Index.

Source : Straits Times - 29 October 2009

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Far East gears up to go regional

Far East gears up to go regional
New Village brand for its mid-range hotels, residences
By Joyce Teo, Property Correspondent

Albert Court Village Hotel is one of three hotels and four residences that make up the new brand so far.

PROPERTY giant Far East Organization is spending $25 million to refurbish and re-badge its mid-range hotels and residences into a new brand that can be expanded overseas.

A range of the firm’s local properties is being grouped under the name Village Hotels & Residences, which will give the firm a launch pad for expansion.

Three hotels - Albert Court Village Hotel, Changi Village Hotel and Landmark Village Hotel or the former Golden Landmark Hotel - and four residences aimed at long-stay guests make up the new brand so far.

Far East said the Village brand will offer guests a local experience.

It has commissioned its own Village Walking Guide, which highlights interesting attractions near the hotels, said the firm’s director of hospitality operations, Mr Raphael Saw.

The aim is to expand the made-in-Singapore brand to 15 properties around the region over the next five years.

Far East’s hospitality unit - it has six hotels and 11 serviced residences - has kept largely to the Singapore market, where branding is not necessarily crucial, market observers reckon.

But making a mark overseas requires grouping hotels and residences around a brand name that can be promoted.

Far East, Singapore’s largest private property developer, hatched the branding plan about two years ago and has spent about $12.5 million on refurbishing the properties, service training and other operations.

A similar sum will be laid out over the next three years to strengthen the brand’s presence, said executive director Chia Boon Kuah.

The Village hotels are mid-range and aimed at business and leisure travellers.

The hotels have average room rates of about $140 to $160 a day but the rates should rise as demand increases, said Mr Chia.

Far East has a serviced residence property in Kuala Lumpur, where it will establish the Village brand next.

Village properties in China, Indonesia and Vietnam are also on the cards.

Mr Chia said the firm will be keen on cities with about three to five million people, which would include Surabaya and Medan in Indonesia.

‘There are a lot of opportunities in China and we could go in now if we want to,’ he said.

In going regional, he said its ‘first preference is through management contracts’.

‘If we are offered an equity stake, we will consider it.’

While it does not rule out new-builds or purchases, these are not part of the plans for now.

Far East also plans to brand its high-end hotels and residences with the same goal of overseas expansion in mind, said Mr Saw.

Its high-end hotels include Orchard Parade Hotel and The Quincy Hotel.

Source : Straits Times - 29 October 2009

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Thomson Village strata units, site on collective sale

Thomson Village strata units, site on collective sale

Separate Colliers auction sees 2 shop units, 2 houses and 1 apartment sold

By KALPANA RASHIWALA

(SINGAPORE) The owners of eight freehold strata-titled commercial units and vacant site at Thomson Village, off Upper Thomson Road, have joined forces to sell their properties through a tender. The properties have a combined site area of 13,387 sq ft and an asking price of $24 million.

Under Master Plan 2008, the site is zoned for commercial use. ‘The plot ratio is not indicated but the site is under a streetblock plan, which means the potential developer will have to follow an envelope control guideline for the area set by Urban Redevelopment Authority. The properties could be redeveloped into a low-rise specialty retail mall,’ said Galven Tan, assistant manager (investment properties) at CB Richard Ellis, which is marketing the site.

‘Depending on the design of a new development, a 2.8 plot ratio could be achieved,’ according to Mr Tan. Plot ratio is the ratio of maximum gross floor area to land area. Assuming this plot ratio, an estimated development charge (DC) of $5 million would be payable to the state. The $24 million price works out to $774 psf per plot ratio inclusive of DC.

The owners of the strata commercial units and the vacant site have signed a collective sale agreement, which means the sale will not be subject to an application to the Strata Titles Board. The tender closes on Nov 25.

There is adjoining state land of about 6,400 sq ft that could potentially be purchased by the successful bidder, CBRE says.

Separately, at an auction conducted by Colliers International yesterday, five properties were sold - an apartment at The Horizon at Holt Road; two freehold landed houses at Jalan Taman and Lowland Road, both off Upper Serangoon Road; and a shop unit each at Sim Lim Square and Golden Landmark.

The ground floor unit at Sim Lim Square, which involved a liquidator sale, was sold to a private investor for $3.75 million, reflecting $6,970 psf based on the unit’s 538 sq ft strata area. The unit faces the main concourse. Last week, Second Chance Properties picked up 22 shop units at Sim Lim Square for $35 million or an average price of $3,644 psf based on their total area of 9,604 sq ft.

Over at Golden Landmark, near Bugis MRT Station, a 355 sq ft corner shop on the third floor with double frontage changed hands at $365,000 or $1,028 psf.

The third-floor freehold apartment at The Horizon was sold for $1.8 million or $1,154 psf. The two-storey intermediate terrace house at Jalan Taman was sold for $1.25 million or $630 psf of land area.

At 74 Lowland Road, which is next to a temple, the three-storey semi-detached house with six bedrooms was sold for $1.72 million or $636 psf of land area. The buyer is understood to be a former Chinese national who is now a Singapore citizen.

Source : Business Times - 29 October 2009

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New council set up to promote green buildings

New council set up to promote green buildings

Private-public sector initiative will help spearhead building industry’s efforts

By UMA SHANKARI

(SINGAPORE) Singapore has set up a new council to speed up the development of ‘green’ buildings in Singapore.

The new unit, the Singapore Green Building Council, is expected to increase collaboration between the private and public sectors in Singapore and push the building and construction industries towards environmental sustainability.

The council was set up with seed funding from Building and Construction Authority (BCA), but has also raised more than 10 times that amount from its private sector sponsors and members. The council has 141 founding members, including ‘diamond’ sponsors City Developments, CapitaLand and Keppel Land.

It aims to promote green building design as well as green practices and technologies, said its president Lee Chuan Seng.

Targets set out in the Singapore Sustainable Blueprint, which was released earlier this year, call for 80 per cent of all buildings in Singapore to achieve at least the basic Green Mark Certification by 2030. This is expected to reduce energy intensity by more than 30 per cent.

Buildings in Singapore are the second largest users of electricity after the industrial sector

‘The ‘greening’ of buildings will require concerted effort,’ said Singapore’s Deputy Prime Minister & Minister for Defence Teo Chee Hean yesterday. Mr Teo announced the formation of the Singapore Green Building Council at the launch of a green building conference and exhibition.

He added that the government will work in partnership with building owners to raise awareness on the energy efficiency of their buildings, and achieve savings in their electricity bills.

On its part, the Singapore Green Building Council will help lead and co-ordinate the industry’s efforts, in collaboration with the government, to accelerate the development of green buildings and improve energy efficiency in Singapore’s built environment.

It will also tap into an international community of green building experts through the World Green Building Council. The World Council has granted ‘emerging member’ status to the new Singapore Council.

The Green Building Council also aims to become a leader in exploring how tropical countries can embrace sustainable development. Mr Lee told reporters that most of the designs today have been developed for temperate climates.

But for a start, the Council plans to set up a system for certification within the next six to 12 months.

‘One of the things that hold back the development of green buildings in Singapore is that we don’t have certification; we have some green labelling system for products but it is not comprehensive,’ said Mr Lee. ‘So what we are trying to do now is start up some product directory. That will then move into certification.’

Source : Business Times - 29 October 2009

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JTC going green with plants on roof trellises

JTC going green with plants on roof trellises

By UMA SHANKARI

(SINGAPORE) JTC Corp is pushing the idea of sky-rise greenery even further. The industrial landlord is looking at constructing roof trellises between adjacent buildings and covering them with plants.

Cool idea: The roof trellises will cut energy consumption by reducing heat radiation, make it cooler to walk in the area, help improve air quality and be aesthetically pleasing
Among other things, the project, which is set to be tested next year, could cut energy consumption in buildings by reducing heat radiation.

‘Singapore is trying to do more sustainable developments and JTC is trying to play its part,’ said the director of JTC’s engineering planning division Koh Chwee.

There will be benefits all round, he said. The shaded ground will make it cooler to walk in the area and the plants will help improve air quality and be aesthetically pleasing.

Selected buildings will have their columns extended one storey higher.

Steel cables will then be tied to the columns and steel wire mesh will be suspended from the cables, forming an overhead canopy.

After this, climbing plants will be grown from planter boxes along a building’s roof edges to the mesh structure. Over time, the plants will cover the mesh and provide shade.

JTC aims to test the idea in the second half of next year between two buildings at its upcoming Clean Tech Park in Jurong. It hopes to be ready to roll out the idea on a larger scale in 2011.

If all goes well, other kinds of developments, such as residential and commercial buildings, could also adopt green roof trellises, Mr Koh said.

Source : Business Times - 29 October 2009

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Funds sweat over new CPFIS criteria

Funds sweat over new CPFIS criteria

Some 40% risk being struck off; top quartile ranking is sticking point

By GENEVIEVE CUA

(SINGAPORE) More than 40 per cent of the unit trusts and investment-linked insurance funds (ILPs) in the CPF Investment Scheme (CPFIS) are at risk of being struck off the scheme if they do not fully comply with CPF’s admission criteria by January 2011.

By far the most contentious among the criteria is the one requiring the funds to be ranked among the top quartile (the highest 25 per cent) of their global peer group.

This is the sticking point, as fund managers can and have stepped in to ensure compliance with the other criteria. For instance, some managers subsidise the expenses of smaller funds to ensure that their expense ratios do not exceed CPF’s caps.

Top quartile is defined along quantitative and qualitative factors, where a fund registered for Singapore sale will be scored and ranked alongside its global peer based on Morningstar’s database. Morningstar is the investment consultant for the CPFIS.

Among ILPs, CPF savings’ share of a fund’s assets could be as high as 70 per cent. Among unit trusts, the share ranges between 30 and 50 per cent. Hence, for some funds, failure to remain in the scheme would have major implications.

As at end-June, a total of $22.9 billion of CPF savings (Ordinary and Special Accounts) is invested in insurance policies and $6.3 billion in unit trusts.

BT understands that numerous funds are scheduled for re-evaluation by Morningstar over the next few months. Some have already made it to the approved list. But those are understood to be a minority so far as most funds are awaiting their turn in a long queue, or are waiting to be told the results.

Based on a list released earlier this year, a total of 147 funds need to be re-evaluated. There are a total of 346 unit trusts and ILPs in the CPFIS menu. The cost of re-evaluation is $5,900 per fund, which may or may not be charged to the fund.

Funds which fail to meet the criteria must cease to take in fresh CPF savings by January 2011. Managers must offer investors three options - to hold, redeem or switch for free to another fund that is fully compliant with the CPF rules. The free switch period is understood to be six months.

An alternative for funds that fail to meet the criteria is that managers could opt to have the fund sub-advised by a third-party manager which must have passed CPF’s screen.

BT understands, however, that the idea of external management is unattractive to most managers. In any case, it may not be feasible for larger fund houses such as Fidelity, where the size of its CPF asset base is tiny relative to its offshore investor base.

A unit trust that contemplates a third-party manager may have to call for an extraordinary general meeting to vote on the matter.

The chief executive of a fund management firm said: ‘The exercise is very subjective. I don’t see how there can be a clear and objective way to measure top quartile ranking.’

He says his firm is not inclined to opt for third-party management, should any of the firm’s funds fail to pass muster. ‘What makes (the CPF and Morningstar) think a sub-adviser will do a better job?’

However, a source at another firm said: ‘If we have to use an external manager, of course we will do it. . . Because if a fund is taken out of CPFIS, what happens to existing investors? They can’t do top-ups and it becomes very confusing.’

The other three criteria are that the funds’ total expense ratio must not exceed the median expense ratio of CPFIS funds in their respective risk class; their sales charge must not exceed 3 per cent; and they must have a three-year track record.

The admission criteria have been in place since 2006, but they have so far been enforced in stages to enable funds to make the transition.

Some of the largest and most established funds are slated for re-evaluation. These include Prudential’s Prulink Singapore Managed Fund, which has more than $2.5 billion in assets as at end-June; and AIG’s Acorns of Asia Fund with over $1.2 billion in total assets.

Prudential Assurance’s chief marketing officer Tomas Urbanec said the insurer has 19 funds in the CPFIS scheme. Five are fully compliant and 14 await re-evaluation.

‘As this is an industry-wide exercise which is ongoing, we would prefer to let CPF announce the final approved list when the exercise is completed.’

Morningstar’s quantitative criteria for product inclusion in the CPFIS include performance and style consistency, management tenure - that is, funds with minimum manager changes are preferred; and expenses.

The qualitative analysis looks into a manager’s history of success, organisational strength, investment process consistency, and asset size and growth. On the latter point, Morningstar looks into how performance has changed as assets grow.

Source : Business Times - 29 October 2009

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