Government Tenders

 

Yio Chu Kang/Seletar Road-site tender opens

 

URA has launched a tender for a commercial and residential site at Yio Chu Kang/Seletar Road after receiving a $40.5 million committed bid from a developer. The 2.1ha site within the Seletar Hills estate has a 99-year lease. The tender will close at noon on Sept 17.

 

Source: The Edge Singapore – MONDAY, 24 AUGUST 2009

 

 

Hong Leong’s Chestnut Avenue-site bid leads

Hong Leong Group has emerged top bidder for a 99- year leasehold 250,000 sq ft site at Chestnut Avenue. The $280 psf bid was a 131% premium to the minimum bid price of $121 psf. A total of 13 bids were received, reflecting renewed interest among developers for mass-market residential projects, says Leonard Tay, director of CB Richard Ellis (CBRE) Research.

Calculating the estimated breakeven price for a residential project based on a land price of $280 psf per plot ratio at $550 to $580 psf, he adds that the eventual selling price might be $650 to $700 psf. In an Aug 20 report, DMG & Partners maintains an “overweight” rating on the property sector, saying, “we expect similar demand for two other ongoing bids at Dakota Crescent and Yio Chu Kang, and more triggers of [government land sale] sites”.

Source: The Edge Singapore - MONDAY, 24 AUGUST 2009

 

11 Penang Lane launched for public tender

The Singapore Land Authority (SLA) has launched a public tender for state property at 11 Penang Lane, the former office of the National Council of Social Services. Allowable uses include hotel, commercial school, foreign-system school and office.

 

 

 

Credit: SLA

The tenancy is for an initial three years and renewable for two three-year terms. The 8,686 sq ft property, near Park Mall and the Singapore Shopping Centre, has a gross floor area (GFA) of 33,907 sq ft and a rent guide of $103,900 a month. It comprises an eight-storey block. In May, an auction for the site attracted 40 bids, but the tenant subsequently returned possession to the SLA. So far, the SLA has received 27 inquiries about the property. The tender closes at 11am on Sept 1.

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

URA receives 18 bids for Kaki Bukit Road 2 site

URA has received 18 bids for the industrial site along Kaki Bukit Road 2. The highest bid of $12.1 million, or $105 psf per plot ratio, is from KNG Development.

CB Richard Ellis notes that this bid is 16.5% more than the second-highest bid of $10.4 million, or $90 psf ppr, by Lee Siaw Ling, Low Khoon Huat and Ang Lai Huat. The breakeven cost for KNG Development is likely to be $250 psf. CBRE says the robust response to the tender could reflect bidders’ expectations that Singapore’s manufacturing sector will improve in the near future.

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

Wee Hur places highest bid of $22.9 million for Woodlands Industrial site

Wee Hur Development has placed the highest bid of $22.9 million or $34 psf per plot ratio (ppr) for an industrial site at Woodlands Avenue 4. At the close of the tender last week, the URA received eight bids for the 2.5ha site from a few listed companies including Soilbuild Group and Sim Lian Development, which submitted bids of $21 million and $17.5 million respectively.

The site is on a 60-year lease. Last July, the winning bid for an industrial site in the same area submitted by Soilbuild was only $30 psf ppr, CBRE Research executive director Li Hiaw Ho notes. The healthy response to the recent tender could be a reflection of the expected turnaround for the manufacturing sector, Li adds. The URA will evaluate the bids before announcing the award of the tender.

Source: The Edge Singapore - MONDAY, 13 JULY 2009

Properties Unveiled

 

11 Tampines Concourse unveiled

 

City Developments has unveiled 11 Tampines Concourse, the first carbon-neutral development in Singapore and Asia-Pacific. The estimated carbon dioxide emissions generated during the construction and operational phases have been measured and will be offset by the purchase of carbon credits, the company says. The three-storey office building with a net lettable area of 10,052 sq m was completed in March.

 

Source: The Edge Singapore - MONDAY, 13 JULY 2009

 

 

Fraser Place Fusionopolis unveiled

 

Frasers Hospitality and JTC Corp have launched Fraser Place Fusionopolis. It is the third property in Singapore managed by Frasers Hospitality.

 

The work-loft apartment units (below) are located on levels 17 to 19 of the Symbosis Tower of Fusionopolis @ one-north and cater for researchers and professionals who work at JTC’s innovation and R&D facility for the infocomm and media, science and engineering sectors.

 

Source: The Edge Singapore - MONDAY, 13 JULY 2009

 

 

LaSalle Investment’s 20 Anson Road opens for leasing

 

LaSalle Investment Management has opened its office tower at 20 Anson Road, next to International Plaza, for leasing. The 20-storey building, designed by HOK, was awarded the Green Mark Platinum, the highest green-building certification by Singapore’s Building & Construction Authority (BCA), for its sustainable design and efficiency features.

 

They include an 85% building efficiency on gross floor area (GFA), a 35% energy-efficiency saving from standard building codes, recycled water for irrigation and wash basins, and CO and CO2 sensors to control outdoor air supply and energy consumption.

 

LaSalle Investment Management had won the 99-year leasehold commercial site in August 2007 with a top bid of $237.2 million, or $941 psf of potential GFA.

 

Source: The Edge Singapore - MONDAY, 10 AUGUST 2009

 

 

Frasers Hospitality launches new boutique hotel brand — Modena

Frasers Hospitality Pte Ltd unveiled its new boutique hotel residence concept under the Modena brand (above). The company says the new hotel residence will target business travellers who spend most of their time on the road.

The first Modena brand hotel residence is the 104-unit property in downtown Tianjin, China. The company has plans for four more Modena properties: two in Suzhou, one in Shanghai, which will be opened within the next two years, and the Modena flagship hotel to be established in Singapore and completed by 1Q2012.

Source: The Edge Singapore - MONDAY, 20 JULY 2009

 

 

Marina Bay hotel towers near height completion

The Marina Bay Sands (below) integrated resort will top out its hotel towers early next month. The towers have passed level 50 — five floors short of the peak at 55 storeys. Las Vegas Sands chairman, Sheldon G Adelson, will host the ceremony.

 

 

Credit: Marina Bay Sands

Once the development’s three hotel towers reach 55 floors, Marina Bay Sands will begin to lift and fit together the 2.4 acre Sands SkyPark, a spectacular rooftop garden 650ft from the ground, which will crown the building. SkyPark will include an observation deck, swimming pools and restaurants.

Source: The Edge Singapore - MONDAY, 15 JUNE 2009

Developer’s Performance

 

Hiap Hoe sees 221% surge in profit

 

Niche property developer Hiap Hoe has reported a net profit of $9.9 million, or 2.62 cents a share, for the second quarter ended June 30.

This was a whopping 221% jump from $3.1 million net profit in the previous corresponding period.

Revenue surged 327% to $31.9 million, from $7.5 million a year ago, surpassing the full-year 2008 revenue of $29.7 million.

 

The result was driven by progressive revenue recognition of residential developments Cuscaden Royale (55% of revenue has been recognised as at June 30)

and Oxford Suites (62% of revenue recognised). Net asset value per share at June 30 was 41.58 cents, up 11% from 37.38 cents on Dec 31, 2008.

Improved buyer sentiment has seen Hiap Hoe launch two residential projects this year: The Beverly, off Upper Bukit Timah Road; and Signature at Lewis, on Lewis Road. More than half the units launched so far have been sold.

 

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

Superbowl posts profit in 1H2009

 

In a performance turnaround, Superbowl Holdings has posted a profit of $2.83 million for 1H2009 ended June 30. This figure compares with a loss of $210,000 in 1H2008. Earnings per share for the half-year jumped to 0.87 cent, from -0.07 cent in 1H2008. The comeback was achieved on the back of a relatively stable turnover of $7.77 million, compared with $7.86 million in 1H2008, fair-value gains on investments and stringent cost control.

 

Excluding fair-value gain and taxation, the group posted a slight improvement in profit of 1% to $1.94 million, from $1.92 million in 1H2008. For 2Q2009, the group reported a 212% increase in profit of $2.38 million, compared with $760,000 in the previous corresponding period. But, in the same period, revenue slipped 3% to $3.95 million, from $4.1 million a year ago. Rental property and the bowling business were the key revenue generators during 1H2009, contributing 81% of revenue. The group noted it received good response to the recent launch of The Beverly residential project being developed in partnership with Hiap Hoe.

 

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

Stronger quarter for Hersing Corp

 

Hersing Corp’s net profit after tax climbed 64.5% to $2.6 million in 2Q2009. This result was on the back of a 15.1% growth in turnover to $43.9 million, owing to increased real estate activities and marketing of new property developments. Although the real estate business improved that quarter, revenue for 1H2009 was $3.1 million behind the corresponding period in 2008.

 

This was offset by other business activities, such as growth in the financial services and self-storage segments. Hersing recorded a 36.3% growth in 1H2009 net profit after tax to $4.2 million. The board of directors has declared an interim dividend of 0.5 cent per ordinary share. 

 

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

Soilbuild’s 1H profit jumps 36%

Soilbuild has posted a net profit after tax of $39.7 million for 1H2009 ended June 30, up 36% from the $29.3 million in 1H2008. Group turnover increased 35% y-o-y to $161.56 million and gross profit rose 12% y-o-y to $53.64 million.

Higher profit contributions came mainly from the progressive recognition of income from Leonie Parc View (73% completed), the fully sold The Centrio (77% completed), the fully sold Montebleu (58% completed) and Tuas Lot factories (56% completed), as well as the maiden recognition of income from Heritage 9 (31% completed).

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

KSH profit up despite drop in revenue

 

Construction company KSH Holdings has posted a 17% increase in net profit to $2.7 million for the quarter ended June 30 (1QFY2010). This was despite a 30% fall in revenue to $58.7 million from $84.3 million in 1QFY2009. The decline in revenue was mainly due to the completion of four construction projects, which more than offset the increase in revenue from ongoing projects during the quarter.

 

The completion of Tampines 1 shopping complex, industrial developments Forte at New Industrial Road and Platinum 28 at Genting Lane, as well as residential project The Coast at Sentosa Cove caused revenue to fall by $40.9 million in 1QFY2010, compared with the previous corresponding period. Lower cost of construction and an improvement in average gross margin saw the group achieve an increase in net profit margin of 4.6% from 2.8% in 1QFY2009.

 

Source: The Edge Singapore - MONDAY, 10 AUGUST 2009

 

 

CSC sees steep slide in profit

 

Singapore’s largest piling contractor CSC Holdings has announced a 26.6% fall in revenue to $81.4 million for the quarter ended June 30 (1Q2010) from $110.9 million in 4Q2009. Y-o-y, revenue slipped 48% from $156.8 million in 1Q2009 as construction activity slowed.

 

Net profit plummeted 52.8% to $6.7 million in 1Q2010, from $14.2 million in 1Q2009. The group ended the period with total shareholder equity of $176.2 million, 4.3% more than the previous corresponding period. The board of directors remains optimistic that public-sector construction demand would continue to generate a sustainable level of business activity for the group.

 

Source: The Edge Singapore - MONDAY, 10 AUGUST 2009

 

 

Roxy-Pacific’s net profit soars 20%

 

Specialist property and hospitality group Roxy- Pacific has grown its net profit by 20% to $15.7 million in 1H2009 from $13.1 million in 1H2008. The increase came on the back of a 26% rise in revenue to $81.8 million from $65.1 million in the corresponding period in 2008.

 

The group registered a 5% growth in revenue to $43.7 million in 2Q2009 from $41.7 million in 2Q2008 as a result of a 20% rise in revenue from its property- development segment and a 9% increase in re venue from its property-investment segment. But, revenue from the group’s hotel-ownership segment dived 31% in 2Q to $8.7 million. This was mainly due to a weaker average room rate, which fell to $143.5 in 2Q2009 from $208.1 in 2Q2008. The group sold 193 residential units (total $177.9 million) in 1H2009, higher than the 151 units (total $170.1 million) for the whole of 2008.

 

Source: The Edge Singapore - MONDAY, 10 AUGUST 2009

 

 

Lian Beng ends year with $17 mil profit

Building construction group Lian Beng has posted a full-year net profit of $17.2 million — 43.3% more than the $12 million in FY2008. The record profit — to May 31, 2009 — came from a 58.3% jump in revenue to $308.4 million, from $194.8 million in FY2008, owing to good progress in various construction projects. Gross profit grew 26.8% to $37.1 million, thanks to profit recognition from project progress payment, and contributions from its property development management, training and testing, and ready-mixed concrete businesses.

During the year, the group won five construction projects totalling $285 million — two public sector contracts and three private residential developments (Bellerive Condominium, Emerald Hill Residences and the Ritz-Carlton Residences). The group has declared a first and final cash dividend of 0.4 cent per share and a special dividend of 0.2 cent per share.

 

Source: The Edge Singapore -  MONDAY, 03 AUGUST 2009

 

 

Starhill Global REIT reports 6.7% increase in DPU

 

Starhill Global Real Estate Investment Trust has announced 2Q distributable income of $18.4 million. Distribution per unit (DPU) for the quarter ended June 30 was 1.9 cents — 6.7% higher than the 1.78 cents in 2Q2008. On an annualised basis, the latest distribution represents a yield of 12% (based on last-traded unit price of 63.5 cents on June 30, 2009).

 

Gross revenue in 2Q2009 was $33.4 million, or 10.5% higher than the $30.2 million in 2Q2008. The increase was mainly due to higher rates achieved for office renewals and new leases in Singapore, rent review of the master lease in Ngee Ann City and higher revenue from the Chengdu property.

 

Net property income for the quarter was $27 million — 16.4% more than the $23.2 million in 2Q2008. Renewed and new office leases made up 6,250 sq ft in the latest quarter, at rates 28% higher than 2Q2008. For the rest of the year, 47,480 sq ft of office space (22.4% of the total Singapore office portfolio) and 23,230 sq ft of retail space (6.2% of the Singapore retail portfolio) will expire

 

Source: The Edge Singapore -  MONDAY, 03 AUGUST 2009

 

 

OKP’s 1H profit soars 58%

 

Infrastructure and civil engineering company OKP Holdings has turned in a net profit of $6.8 million for the half year ended June 30, 58% up from the previous corresponding period. The group posted revenue of $61.5 million for 1H2009 — up 21% from the $50.9 million in the previous corresponding period. The construction segment contributed the lion’s share (71%, or $43.8 million) of total revenue. The maintenance segment also shone, growing 70% to $17.7 million.

 

Q-o-q, the group’s net profit soared 91% to $3.6 million from the $1.9 million in the previous quarter. For 1H2009, earnings per share was 4.46 cents, compared with 2.87 cents previously. Since January, OKP has won five contracts from public sector agencies totalling $148.6 million, as well as $21.7 million from the private sector.

 

Source: The Edge Singapore - TUESDAY, 04 AUGUST 2009

 

 

Keppel Land’s 2Q earnings up 10%

 

Keppel Land reported a 34% increase in revenue to $249.9 million for the three months ended June 30 on stronger residential sales and rental income. Earnings rose 10% to $58 million in 2Q. Signs of recovery were seen in countries it operates in.

 

For instance, in China, Keppel Land sold over 1,440 units in 1H2009, mainly from township developments like The Botanica in Chengdu and Central Park City in Wuxi. With market sentiment improving, the company plans to accelerate project launches in Singapore, China and Vietnam. The 56-unit Madison Residences and 15-unit The Promont will be launched in 2H2009. DMG estimates prices to start at $1,700 psf.

 

Source: The Edge Singapore - MONDAY, 27 JULY 2009

 

 

First REIT’s 2Q2009 DPU up 0.5%

 

First REIT, which owns a portfolio of hospitals and nursing homes in Indonesia and Singapore, reported a 0.5% increase in distribution per unit (DPU) to 1.92 cents in 2Q2009. Distributable income was up 1.5% to $5.3 million for the three months ended June 30.

 

Despite the slowdown, the three hospitals in Indonesia continue to enjoy a growth of over 20%. Having secured a three-year $70 million multi-currency transferable term loan facility from OCBC in April, First REIT has no refinancing needs until 2012. To enhance the value of its assets, First REIT plans to upgrade its Adam Road Hospital. It is also upgrading the three Siloam Hospitals in Indonesia.

 

Source: The Edge Singapore - MONDAY, 27 JULY 2009

Ex-Parkway boss in $48m Hilltops deal

Group led by Tony Tan pays about $2,560 per square foot in sub-sale market for 18 apartments in Cairnhill project

By KALPANA RASHIWALA

A GROUP led by former Parkway Holdings boss Tony Tan is understood to have picked up 18 apartments in the sub-sale market at Hilltops condo at Cairnhill Circle for a total of $48.2 million or an average price of about $2,560 per square foot (psf).

BT could not ascertain the loss suffered by the seller, who is believed to be a Hong Kong investor that bought the units in late 2007.

But according to back-of-the-envelope calculations by some analysts, the loss is estimated at 30-35 per cent.

The freehold project reportedly achieved an average price of just over $3,900 psf for the first 28 units, according to a news report in late 2007.

Government statistics show the project's developer, SC Global subsidiary Taraville, sold 24 units in October 2007 at a median price of $3,711 psf.

According to the latest Urban Redevelopment Authority (URA) statistics at the end of last month, 31 units in the project had been sold by the developer.

This is the same number of units that SC Global had released in the 241-unit condo by the same date. The project, comprising two 20-storey towers and a 14-storey block, is expected to be completed next year.

Savills is understood to have brokered the latest sub-sale deal involving the 18 units, which comprise mostly two and three-bedders.

The apartments were bought by companies whose shareholders include Mr Tan and Hasetrale Holdings, which is controlled by Mr Tan, his uncle Tan Chin Nam and a string of other Malaysians.

Hasetrale is also a shareholder in Napier Properties, developer of the 8 Napier condo on the former Eng Lok Mansion site.

Despite the loss suffered by the Hong Kong party in the sub-sale of 18 Hilltops apartments, market watchers described the $2,560 psf average price as attractive for the seller.

Keppel Land is understood to have sold a handful of units at The Promont nearby at prices ranging from just below $1,900 psf to $2,060 psf recently. The Promont is a 17-storey apartment development with just 15 apartments.

Earlier this month, BT reported that a property fund had bought the remaining 21 units at Sui Generis condo in Balmoral Crescent for $65 million or about $1,260 psf on average from the freehold project's developers.

However, the price is understood to have been agreed much earlier in the year, when sentiment was still weak.

The latest URA statistics on developers' home sales show an improvement in sales of high-end projects in July.

City Developments sold 79 units at Volari in Balmoral Road at a median price of $2,059 psf.

Four units each were sold at Nassim Park Residences ($3,273 psf median price) and The Orchard Residences ($2,815 psf median price).

Ho Bee found buyers for nine units at The Orange Grove at a median price of $2,334 psf.

Source: The Business Times – 22.08.09

GuocoLand Malaysia to launch RM1.7b projects

Projects in Selangor may be completed in 2016 or 2017

(RAWANG, Selangor) Property developer GuocoLand (Malaysia) Bhd plans to roll out several high-end projects in stages at Emerald Rawang in Selangor with a total gross development value (GDV) of RM1.7 billion (S$695 million).

'Going forward, the RM1.7 billion GDV will have a bigger impact in terms of contribution. The projects are expected to be completed in 2016 or 2017,' executive director Chan Chee Meng told reporters during a media tour here yesterday.

Emerald Rawang is a joint-venture project between GuocoLand Malaysia and Hong Bee Land Sdn Bhd, with the former as the project manager. GuocoLand Malaysia is a member of the Hong Leong group.

The Emerald Rawang township comprises Emerald East and Emerald West.

Emerald Rawang sits on about 400ha of freehold land, comprising a mixed-use development ranging from link, cluster and semi-D homes to high-end bungalows.

To date, a total of 1,300 homes have been built with sales of RM375 million, Mr Chan said, adding the company has targeted another RM100 million sales by year-end on expectation of good demand for the semi-D homes.

'We plan to launch four more phases this year because it is timely due to the recovery of the market and buyers are upgrading to more established projects,' he said.

Mr Chan said several phases are planned for Emerald East with a GDV of RM268 million, with the launches expected in 2010 and 2011.

On Emerald West, he said the projects will be much bigger, with GDV of RM1.51 billion comprising semi-D, double-storey link and commercial properties.

Emerald West, on a 276ha site, will have facilities such as a jogging track, nine-hole golf course, Chinese primary school and commercial square, Mr Chan said.

Another township, called Emerald Hills, will be located on a 160ha site with more high-end projects to meet the growing demand, he said.

He also said that joint-venture partner Hong Bee Land is expected to finalise a venture with Jusco by year-end in order to set up a shopping complex near the township.

At the media tour, GuocoLand Malaysia unveiled its new sales gallery, which was set up to centralise sales activities, enhance communication with customers and showcase progress of the development.

'The show gallery is a platform for customers to receive all the latest updates on the township and promotions as well as to hold discussions with our personnel on home-ownership matters,' Mr Chan said\. \-- Bernama

Source: The Business Times – 06^th Aug 09

Office leasing scene - musical chairs with extra seats

Some tenants factor in higher headcount as they move to new locations

By KALPANA RASHIWALA

(SINGAPORE) There's a buzz in the office leasing market. Many new leasings are at the expense of space being given up in existing locations as occupiers are drawn to better-value propositions in newer buildings. But a few are taking up more space in their new locations than what they are giving up in their existing premises to cater to future increases in headcount.

'It's not all musical chairs. There's also a smattering of improved headcount numbers, even as most occupiers chase lower cost, better value locations,' a seasoned office property consultant said.

Another office consultant, Knight Frank director of office leasing Agnes Tay, said: 'I don't expect net office demand to turn positive this quarter, but the negative demand will be smaller in the second half of this year. Companies in general are more optimistic now compared to the end of last year. More of them are now taking a position on headcount and real estate requirements and a few are even making plans for future growth.'

Much of the leasing activity has centred on new buildings - including Mapletree Anson and Straits Trading Building.

More than 80 per cent of Straits Trading Building is said to be let out, ahead of its completion later this year.

Tenants are said to include Rajah & Tann (which is understood to be taking up at least 80,000-90,000 sq ft), overseas law firm Conyers Dill & Pearman and serviced office operator Asia-Pacific Business Centre. Colliers International is said to have brokered these leasing deals.

Rajah & Tann is expected to move from its existing premises at Bank of China Building nearby; Conyers, which is leasing a floor at Straits Trading Building, will move from Singapore Land Tower.

Over in the Anson Road/Tanjong Pagar corner of the CBD, Mapletree Anson, which received Temporary Occupation Permit recently, is said to be 35 per cent let out, with more than 100,000 sq ft leased. Tenants include AON, QBE (both involved in the insurance and reinsurance business) and a Japanese MNC, understood to be Sumitomo.

AON is moving from Singapore Land Tower, QBE from OCBC Centre and Sumitomo from Equity Plaza. CB Richard Ellis is said to have brokered the three leasing deals in the project.

Tenants are said to have been drawn to Mapletree Anson's efficient floor plates, with column-free space of 20,000 sq ft per floor allowing more effective layout of workstations.

A stone's throw away, a La Salle Investment Management fund will be completing its 20 Anson Road project in a few months.

Both office buildings have attained Singapore's highest green building certification of Green Mark Platinum.

An office developer said: 'Most of the leasing deals in the past six to nine months involve relocations or consolidation from several buildings into a single location. In contrast, 12 to 24 months ago, leasing deals involved occupiers upsizing their space requirements.'

Jones Lang LaSalle's head of markets, Singapore, Chris Archibold said: '2009 will be a negative take-up year but in terms of market activity, leasing deals will be higher in the second half of this year. A lot of relocation is being driven by consolidation or downsizing rather than expansion. Hopefully, expansion will come back next year. There are tenants with passing rents below current market rents and who are therefore looking for cheaper alternatives like new buildings in peripheral CBD locations.'

Office consultants expect office rents to continue easing for the rest of this year - but at a slower pace. The demand is still weak but there is substantial supply coming on the market in the next few years.

According to government figures, the pipeline supply for the office sector stood at about 13.3 million sq ft gross floor area as at end-Q2 2009, of which about 12 million sq ft is slated for completion by 2012.

JLL's average monthly rental value for prime Grade A Raffles Place (small space) stood at $9.50 psf in Q2 2009, about half the peak figure of $18.40 psf in Q3 last year.

Source: The Business Times – 06^th Aug 09

Swissotel Merchant Court hotel may be sold soon

TA Enterprise Bhd is proposing to buy both the hotel and its business

(SINGAPORE) Swissotel Merchant Court hotel in the Clarke Quay area is expected to change hands soon. Bursa-listed TA Enterprise Berhad said last week that it's proposing to buy the 476-room hotel.

It did not reveal the price but market watchers say that it is likely to be in the mid-$250 million range.

TA Enterprise is proposing to buy both the hotel and its business. The hotel will be sold subject to a management contract with Swissotel, part of Fairmont Raffles Hotels International. Jones Lang LaSalle Hotels is said to be brokering the deal.

TA Enterprise - controlled by Tony Tiah and his wife Alicia - owns Westin Hotel Melbourne, Radisson Plaza Hotel in Sydney and the Aava Whistler Hotel in Canada, according to its website.

In an announcement last week, the group said that it had struck a deal with LaSalle Asia Opportunity II SARL to buy the entire issued shares of Quayside Gem Limited, which owns the hotel and business of Swissotel Merchant Court Singapore.

TA has secured an exclusivity agreement to perform due diligence on the property. The company has paid a deposit of $5 million, which will be forfeitable, if TA withdraws from the negotiations for the proposed acquisition or does not enter into a sale and purchase agreement with the seller by Aug 25, 2009.

During the exclusivity period, the seller will not sell, negotiate or solicit any invitations or bids for the sale of the hotel with any other parties.

Seller LaSalle Asia Opportunity II bought the hotel in 2006 from Fairmont Raffles Hotels International (owned by Kingdom Hotels International and Colony Capital), which had in turn acquired it as part of the entire hotel business of Raffles Holdings in 2005.

The hotel is on a site with a remaining lease of about 84 years. It was put up for sale a year ago, but a deal did not materialise then as sentiment worsened due to the global financial crisis.

Source: The Business Times – 06^th Aug 09

Balmoral, Tagore sites for sale

By KALPANA RASHIWALA

SAVILLS Singapore has launched for sale two residential properties - the freehold No 3 Balmoral Road with an indicative price of $65 million; and an 86,402 square foot plot at No 162 Tagore Avenue, within the Teachers Housing Estate, with an indicative price of $15 million. The latter is being sold on a 99-year leasehold tenure by the Singapore Teachers' Union, which holds the freehold interest in the property.

No 3 Balmoral Road currently comprises a development of 11 apartments, all leased out, but Savills is marketing the property for its redevelopment potential. The property is owned by an investment company and has a land area of 23,821 sq ft, a permissible plot ratio (ratio of maximum gross floor area to land area) of 1.6 and a height restriction of 12 storeys.

The site has been granted written permission by the Urban Redevelopment Authority for the development of 30 residential units. Savills said that such a development would have an estimated total potential saleable area of about 45,000 sq ft. The figure is understood to include bay windows and planter boxes. Development charge has been fully paid, up to a gross floor area (GFA) of about 41,918 sq ft, which includes 10 per cent additional GFA allowed for balconies.

The $65 million price works out to $1,705 per square foot per plot ratio (psf ppr) based on the 1.6 plot ratio. However, inclusive of the balcony allowance, the land price translates to a lower $1,551 psf ppr. Savills said that the $65 million works out to about $1,450 psf on the 45,000 sq ft potential saleable area.

Market watchers note that Keppel Land's 18-storey Madison Residences on the former Naga Court site along Bukit Timah Road, which starts selling today, is expected to be priced at about $1,700 psf on average.

The Tagore Avenue site, although currently zoned as 'civil & community institution', has approval for a three-storey mixed landed development, allowing a potential development of either 33 landed homes or 40 cluster houses. The tender for this site closes on Sept 1 while the expression of interest for the Balmoral property closes on Sept 3.

 

Source: The Business Times – 06^th Aug 09

Optima sold out in 3 days

297-unit Optima homes sold for around $810 psf; other launches also see strong demand

By Joyce Teo

 

SINGAPORE may still be mired in recession, but tell that to the home hunters who are flocking to the latest launches.

 

In the east, a new 297-unit condominium development on the doorstep of Tanah Merah MRT station completely sold out in the three days that followed its preview last Thursday.

 

Units at Optima went for an average price of around $810 per sq ft, or from $470,000 to $2.06million per unit.

 

Demand remained strong even after developer TID - a joint venture between Hong Leong Group and Mitsui Fudosan - raised prices by 5 per cent, from $790 psf on Thursday to $830 psf by Friday.

 

Keen buyers were already seen queueing days before the launch of the 99-year leasehold condominium.

 

And TID had to conduct a ballot of 120 units for 300 buyers just before midnight on Thursday to prevent them having to camp out overnight for the public launch the next day.

 

Buyers were a good mix of HDB upgraders and investors, said the Hong Leong Group spokesman. City Developments has now put on fast track the launch of its 396-unit project at the former Hong Leong Garden condominium site.

 

Over in Ang Mo Kio, another new suburban launch has attracted relatively strong demand, though some price resistance may have settled in over the weekend.

 

The 329-unit Centro Residences has sold 93 out of the 144 units that were released for sale last week. Most of the units sold were two- to three-bedders. The smallest two-bedders have been sold, leaving those from 872sqft and above, and priced from $1million.

 

Far East Organization said on Monday that 50 per cent of the buyers are HDB upgraders from nearby towns, while the rest are residents from private estates.

Source: The Straits Times – 04 Aug 2009

Property fund snaps up 21 condo units for $65m

Other big-ticket transactions could rev up investment sales in second half

By KALPANA RASHIWALA

(SINGAPORE) IN one of the first bulk sales of apartments since the economic crisis unfolded last year, a property fund is understood to have purchased the remaining 21 units at Sui Generis condo at Balmoral Crescent for $65 million.

The price works out to about $1,260 per square foot on average. The units are said to be located throughout the freehold project, which is slated for completion around the second quarter of next year. The condo comprises three blocks - seven, nine and 12 storeys high. It is being developed by a joint venture involving United Engineers and Kajima.

CB Richard Ellis is understood to have brokered the latest sale, but it declined to comment on the transaction.

Market watchers commented, however, that $1,260 psf average price for the latest deal is about half the average price of about $2,460 psf achieved for the earlier 19 units in the 40-unit development that were sold in 2007 and 2008 at prices ranging from $1,991 psf to $2,717 psf.

About $2.2 billion of investment sales deals were struck in the first six months of this year, against $17.9 billion for the whole of last year and the record $53.7 billion in 2007.

However, activity is expected to pick up in the current half. For one, sites on the Government's reserve list have been triggered for launch, including residential sites at Dakota Crescent and Chestnut Avenue.

Recently, the 50-room Hotel Nostalgia in the Tiong Bahru area was sold for about $22 million. The Indonesian buyer was represented by Rodyk & Davidson. Hotel Nostalgia, a freehold property, is expected to receive Temporary Occupation Permit soon. The seller was Lion Properties Group.

Some big ticket items are also on the market. One is a portfolio of four malls and an office tower owned by Asian Retail Mall Ltd (ARML) 1 fund with a price tag said to be about $1.5 billion - which industry players described as 'bullish'. An expression of interest closed last week for the portfolio, which comprises White Sands in Pasir Ris, Century Square in Tampines, Hougang Mall, Tiong Bahru Plaza and the next door Central Plaza office block.

The fund's life actually ended late last year - around the time of the Lehman Brothers collapse - and the investors decided to continue the fund until they could find the right mode of disposal or seek a formal extension to the fund's lifespan.

ARML 1's investors include a few Dutch pension funds that are said to favour selling the fund's malls to realise their investment. However, market watchers say the other investors, which include entities linked to Pramerica Real Estate Investors Asia, Guthrie and NTUC FairPrice, want to wait for a better time to maximise their profit.

The fund bought the five assets for a total of about $943 million and may have invested a further sum of over $80 million enhancing the properties. 'This leaves less scope for further improvements,' a market watcher said.

Property consultants generally expect retail rents in suburban malls to dip slightly this year and if yields demanded by investors rise, this will create downward pressure on capital values of suburban malls.

However, on a more positive note, a property consultant said: 'Shopping centres as an asset class don't suffer the same weakness as the office market, where there's too much supply in the horizon and demand is still weak. Institutional investors have a fairly negative view on the Singapore office market.'

Source: The Business Times – 04 Aug 2009