Govt to launch more residential sites in Feb-April

Govt to launch more residential sites in Feb-April

By Mustafa Shafawi

SINGAPORE: The government will release five residential sites for sale by public tender between this month and April under the Government Land Sales (GLS) programme for the first half of the year.

The Urban Redevelopment Authority (URA) said that apart from the five confirmed residential sites, another 18 residential sites are on the reserve list.

It added that the land from the confirmed and reserve lists are expected to supply a total of 10,550 housing units, the highest in the history of the programme.

URA said the government has more sites in the pipeline to cater for any surge in demand for private housing and to keep private property prices in line.

The latest to be put up for tender is a 3.2-hectare residential site at the junction of Tampines Avenue 1 and Avenue 10.

- CNA/ir

Source : Channel NewsAsia - 02 February 2010

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Developers brimming with new launches

Developers brimming with new launches
Far East said to be top seller in January; Lippo and MCL may release some units

By KALPANA RASHIWALA

EVEN as developers have gotten off to a good start this year, selling well over 1,000 private homes in January, their launch machinery remains well oiled for more roll-outs in the near future.

On the rise: The average price for Centennia Suites is being touted at $2,000 per square foot or even higher, beating prices in secondary market for nearby projects
Lippo Group is expected to preview Centennia Suites on the former Kim Seng Plaza site, diagonally opposite Great World City, later this week. The average price for the District 9 freehold project is being touted at $2,000 per square foot or even higher.

This is higher than recently achieved prices in the secondary market for nearby projects such as The Trillium and The Cosmopolitan but Lippo is probably banking on the exclusivity factor to market its latest offering. The 36-storey freehold Centennia Tower comprises a single tower with just 97 units, comprising two, three and four-bedroom apartments and two penthouses.

The two bedders are relatively large at slightly over 1,200 sq ft. Three bedders come in five variations but all around 1,800 sq ft; four-bedroom apartments also have five variations of roughly 2,250 sq ft. Centennia’s two penthouses are around 3,300 sq ft and 4,400 sq ft. BT understands that the project is being marketed by CB Richard Ellis and Jones Lang LaSalle.

Agents are also busy gathering interest for MCL Land’s The Estuary, a 608-unit condo at Yishun Ave 1/2. Some market watchers say that they would not be surprised if MCL releases some units before the Chinese New Year break.

For the month of January, Far East Organization is believed to have been the top seller, with sales of close to 300 units. Its bestseller was The Shore Residences, a 103-year-old condominium project on the former Rose Garden site in Katong. Far East is understood to have sold over 140 units in the project last month.

City Developments sold 243 units in January, the bulk of which were in Cube 8 at Thomson Road (167 units) and Livia in Pasir Ris (59 units), a CDL spokeswoman said.

Fellow property giant CapitaLand also did brisk sales. Its 165-unit Urban Suites condo in the Cairnhill area is said to be left with fewer than 30 units.

Frasers Centrepoint sold a total 102 units last month, including 43 units at its Residences Botanique in the Yio Chu Kang/Sirat roads area.

Frasers Centrepoint’s and Far East’s sales numbers are inclusive of about 35 units sold at their two joint-venture condominium projects along Bedok Reservoir, Waterfront Waves and Waterfront Keys.

Allgreen Properties is also believed to have sold a total 62 units from its preview of Holland Residences last week. The average price is $1,625 psf.

CB Richard Ellis executive director (residential) Joseph Tan says: ‘Generally, buyers are showing more interest and there’s acceptance that prices have bottomed out with a strong likelihood of growth. Developers in their pricing policy should also leave room for capital appreciation for investors.’

A Morgan Stanley report dated Jan 27, on a survey of the Singapore private residential sector involving Singapore-based respondents, concluded that, generally, respondents are expecting prices to trend upwards gradually in the medium term rather than spiking in the next 12 months.

As for developers, DTZ executive director Ong Choon Fah says: ‘When there’s a window of opportunity like what we’re seeing now, developers want to capitalise on it and try to push out projects as soon as possible; they can always restock land at government tenders.

‘After all, most economists are still calling for a note of caution on the sustainability of the global economic economy - for instance, if interest rates rise and as governments withdraw their stimulus measures.’

Source : Business Times - 02 February 2010

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Singapore a great place to start and grow a business

Singapore a great place to start and grow a business

SINGAPORE is the most conducive place in the world for entrepreneurs to start a business.

Indeed, the World Bank has ranked Singapore as No 1 in terms of ‘Ease of Doing Business’ for the past four years. In the latest Global Competitiveness Report, Singapore was ranked first in ‘Intellectual Property Protection’ and second in ‘Quality of Overall Infrastructure’.

In terms of access to financing, Singapore was ranked third in ‘Venture Capital Availability’, which assesses how easy it is for entrepreneurs with innovative but risky projects to find venture capital, and fourth in ‘Ease of Access to Loans’.

Pro-business environment

Beyond the rankings, Singapore has one of the lowest corporate and income tax rates, compared with most countries. Start-ups are exempted from taxes for up to three years.

Singapore’s network of Free Trade Agreements (FTAs) enables businesses to have easier access to markets while IE Singapore helps to facilitate their expansion overseas.

Over the years, the government has worked to improve the regulatory environment to help businesses operate more efficiently. In many countries, it may take several months to obtain a business licence. In Singapore, it takes only one day to do so and at a fraction of the cost.

A Pro-Enterprise Panel (PEP) was set up in 2000 to get feedback from the public to enhance business regulations. The PEP has since implemented over 950 of the 1,700 suggestions received, making Singapore even more pro-business.

While the foundation has been laid with a pro-business environment, more needs to be done for entrepreneurial growth in Singapore. We need more people with good business ideas to take up the challenge to become an entrepreneur.

Over the past few years, there has been a positive trend towards entrepreneurship. Some 50,000 start-ups have been incorporated in Singapore annually.

According to the annual DP Information - ACE Start-up Enterprise Survey (STEPS), many founders of start-ups are now younger and more educated. This reflects a shift towards entrepreneurship as a career of choice and opportunity.

As the saying goes, starting a business is tough; growing a business is even tougher. For start-ups, having a good business idea is only the start; the real challenge is in turning it into a viable business. This involves money, management and markets.

Access to money, resources and markets

Recognising that innovative start-ups are the next growth enterprises, one of Spring Singapore’s thrusts is to work alongside innovative start-ups to facilitate growth and market development.

For instance, for youths who desire to turn their business ideas into reality, the Young Entrepreneurs Scheme for Startups (YES! Startups) can support with a matching grant for youths to start their first innovative business.

The Technology Enterprise Commercialisation Scheme (TECS) also supports conversion of intellectual property into tangible products and services for commercial ventures. Spring’s Startup Enterprise Development Scheme (Spring SEEDS) and the Business Angel Scheme (BAS) provide equity funding for innovative start-ups to grow.

Besides financing, start-ups face many other challenges including management capability and market access.

Given our small domestic market, start-ups have to look beyond Singapore to the global market if they want to succeed. In the highly competitive global environment, time to market is critical and companies cannot afford the luxury of gaining local accolades before venturing overseas. They have to start with the global market in mind.

Another challenge facing start-ups is attracting and keeping talent. Besides skilled manpower, start-ups need competent management to bring the company to the next level. Successful start-ups often have experienced advisers who act as mentors. Some could be investors who not only give advice but also ‘open doors’ for start-ups.

To address the needs of start-ups for resources beyond money, Spring launched the Incubation Development Programme (IDP) in 2009.

Among the supported full-suite incubators and venture accelerators are NUS Enterprise Incubator, iAxil, PARCO Fashion Incubator, SMU Business Innovations Generator, NTU NanoFrontier, Business Angel Network of South-east Asia (BANSEA), Microsoft Innovation Centre, ODM Innovations, Mercatus Capital, Entrepreneur’s Resource Centre. These partners help innovative start-ups to grow by providing business mentorship, and helping them to raise funds and gain access to markets.

HVS Engineering is one example of a start-up that Spring SEEDS Capital Pte Ltd co-invested in, with ambitions to grow its customer base locally and overseas simultaneously. Leveraging on iAxil’s Global Market Access Programme, the company ventured into the United States and Japan.

BANSEA launched a similar mentoring programme which matches promising start-ups with their members who will guide them in their business development.

Collectively, these efforts aim to make the environment more conducive for business creation and support the growth of innovative start- ups.

This article was contributed by Spring Singapore

Source : Business Times - 02 February 2010

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CWT in sale and leaseback deal worth $445m

CWT in sale and leaseback deal worth $445m
Move a prelude to proposed listing of logistics trust

By MICHELLE QUAH

LOGISTICS group CWT Limited has proposed the sale and leaseback of two of its logistics facilities in a deal worth $445 million.

Mr Loi: The creation of Cache to invest in yield-accretive logistics properties in Asia will complement CWT’s core business and enhance its ability to expand, he says
CWT will sell CWT Commodity Hub and CWT Cold Hub to Cache Logistics Trust, for the purposes of Cache’s eventual public listing as Asia’s first logistics-focused real estate investment trust.

Cache, whose setting up is subject to regulatory approval, will be managed by ARA-CWT Trust Management (Cache) Limited. CWT will have a 40 per cent stake in the manager. The remaining stake will be held by ARA Asset Management Limited - a real estate fund manager tied to Hong Kong tycoon Li Ka-shing’s Cheung Kong group.

The trust’s property manager will be Cache Property Management Pte Ltd. CWT will have a 60 per cent stake in the property manager and the remaining 40 per cent stake will be held by ARA.

CWT said it will book a one-off gain of $157.7 million from the sale of the two logistics facilities, which are valued at $443 million. They are part of CWT’s primary assets, located close to PSA Terminals, major ports and Singapore’s central business district.

Cache will pay $445 million for the two facilities, of which $65 million will be settled in the form of Cache units. The rest will be paid for in cash.

CWT will use the sale proceeds to expand its logistics business and to settle its outstanding borrowings early, which it says will result in a significant boost to the group’s financial muscle and competitiveness in the region.

In its statement yesterday, CWT also explained that Cache will be the first of its kind in Asia to capitalise on the positive outlook of the global logistics sector and the synergistic business models of CWT and Cache.

Cache holds an investment mandate that targets logistics properties in the Asia-Pacific region, with an initial portfolio of six logistics properties in Singapore, including CWT Commodity Hub and CWT Cold Hub.

CWT said Cache is expected to leverage on the rights of first refusal granted by CWT and the strengths of CWT to ‘pursue yield-accretive acquisitions to achieve long term, regular and predictable distributable income for unitholders’.

Loi Pok Yen, group CEO of CWT, said: ‘The creation of CLT (Cache) to invest in yield-accretive logistics properties in Asia is a historic milestone and enables CWT to own a capital-efficient asset-owning vehicle to complement our core logistics business operations as well as enhance the group’s ability to expand its business regionally and globally.’

‘In addition, the sale and leaseback will enable the group to participate in CLT through its holdings of Cache units and derive a stable income stream from CLT’s distributions,’ he said.

CWT is the largest listed logistics company in South-east Asia, offering integrated logistics solutions to the chemicals, commodities, automotive, marine, oil & gas, defence and industrial sectors.

Its shares closed half a cent down at 93 cents.

Source : Business Times - 02 February 2010

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Blueprint to reshape economy with quality-driven growth

Blueprint to reshape economy with quality-driven growth
Economic Strategies Committee’s key thrusts to take Singapore to the next level are realistic and achievable, says PM Lee

By ANNA TEO

(SINGAPORE) Allow market forces to weed out inefficient firms and make room for productive ones as the economy embarks on its next phase - one driven by skills, innovation and productivity, says the Economic Strategies Committee (ESC).

The shift to quality-driven growth - so as to achieve a quantum leap in productivity - calls for not only economic restructuring but also a major investment in people and capabilities across the board, the ESC says.

Formed in May 2009 to chart a new economic blueprint for Singapore, the 25-member panel headed by Finance Minister Tharman Shanmugaratnam submitted its proposals to the government over the weekend.

Wide-ranging recommendations from its eight sub-committees towards the overall goal of doubling annual productivity gains to 2-3 per cent over 10 years span seven strategic thrusts.

The ideas include using the foreign worker levy to manage Singapore’s dependence on imported labour; going for high-value, complex manufacturing activities; growing a deeper base of globally competitive, mid-size local firms; and going underground to add to the island’s land bank. As well, the ESC suggests that Singapore look into all energy sources - including the nuclear option - to become a ’smart energy economy’.

It also envisages a bustling new waterfront commercial and lifestyle hub - as big as Marina Bay - coming up at Tanjong Pagar in some 20 years’ time.

‘We must go beyond what we have developed, and do things differently,’ said Mr Tharman in his letter to Prime Minister Lee Hsien Loong, along with the ESC report.

Or, as labour chief and Minister in the Prime Minister’s Office Lim Swee Say, one of nine ministers in the ESC, put it at a media conference yesterday: The questions (about growth imperatives, for instance) may be the same today as before, but the answers required now must be different.

Responding to the ESC report yesterday, PM Lee described its proposals as ‘realistic and achievable’ and said the government accepts its key thrusts, and will give its views in the upcoming Budget speech and debate in Parliament.

Agreeing that Singapore must ’shift decisively’ to foster growth through skills and innovation in its next phase of economic development, Mr Lee said this would require ‘a major and sustained national effort’.

While the government will strongly support the transformation, businesses must themselves seek new ways to create value, he added.

‘They must do this continually, and not imagine that a one-off effort will suffice. Our people must continue to upgrade their skills and deepen their expertise. This too must be relentless, as it is our only way to sustain growth and raise incomes,’ Mr Lee said.

The ESC - which tapped diverse views from more than 1,000 people through its sub-committees - notes that there is significant room to improve productivity in every sector of the economy, especially when compared to other countries.

Mr Tharman believes the 2-3 per cent productivity growth goal - a one-third boost over 10 years - is achievable. But it will entail a comprehensive national effort, including ‘investing in working adults throughout their careers’.

Just as critical is the need to restructure the economy and make room for ‘more dynamic, more nimble’ firms that will constantly be on the hunt for opportunities, or to consolidate or acquire other players.

The ESC sees a window of opportunity for Singapore firms to make their presence felt in Asia over the next five to 10 years - before other regional players catch up in skills.

One key plank of the ESC’s strategies centres on the need to moderate the rapid growth of imported labour, which has been a big driver of Singapore’s economic growth in the last decade.

Mr Tharman made clear that Singapore should, in the ESC’s view, keep the pool of foreign workers at one-third of the workforce - but with better skills - while at the same time going all out to woo top talent here.

And the levy or price mechanism is ‘the most efficient and flexible’ way to manage the worker numbers, as it allows dynamic firms to seize immediate business opportunities without being constrained by ‘rigid quotas or fixed allocations of foreign workers’.

The ESC’s proposals were largely welcomed by the business community, even as analysts such as CIMB’s Song Seng Wun found ‘nothing unexpected’ for an economy that’s ‘already a relatively well-oiled machine’.

The Singapore Business Federation said it will work closely with the ESC secretariat and other agencies to identify areas of tie-ups and resource needs, including grants, tax breaks and other initiatives, in support of the proposals.

For the ESC, the bottom line ultimately is income growth for Singaporeans. ‘We believe the strategies we propose will help transform Singapore’s economy once again, raise our citizens’ living standards,’ said Mr Tharman.

Source : Business Times - 02 February 2010

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