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Archive for May 10th, 2008

Remaking Jurong: From ulu town to romantic lake district

Posted by luxuryasiahome on May 10, 2008

Can Jurong with its uncool industrial image be transformed into a romantic lake district that is also rich in jobs? Lee Siew Hua meets the zestful planners behind the new Jurong Lake District and looks at the prospects of success for Singapore’s next mini-metropolis

THE Jurong Lake District planners were lamenting to each other that the lakefront appeared so near, yet is so far.

Jurong Lake was integral to their radical plan to transform Jurong, with its colourless factory-town image, into Singapore’s only lush lakeside destination for business and leisure.

But it was a plodding 750m away from the heart of activity.

Four words, however, got around the problem.

‘Bring the lake closer’, architect Fun Siew Leng said in an SMS to her team members.

The intriguing words were to spark an idea that has become a much talked-about feature in Singapore’s newest plan to redevelop and rebrand Jurong, an icon in the country’s post-independent history.

Jurong, a swampland turned into industrial town, is to be given a new sinuous waterway, carved to wrap around a to-be-built Lakeside Village that will be dotted with boutique hotels and cafes.

This think-out-of-the-box episode is just one of several sparkling instances that lit the one-year journey taken by a dozen planners and architects at the Urban Redevelopment Authority (URA) to bring fresh life and vibrancy to a sleepy hollow.

But at the heart of their plan is the lake, reflected in its brand new name: Jurong Lake District.

Unveiled early last month by National Development Minister Mah Bow Tan, the vision will evolve over 10 to 15 years to a mini-metropolis for Singaporeans to live, work and play.

But as it evolves, what are the constraints and assets of the district that the planners have to deal with? What are its chances of success?

Will Jurong be a showpiece or will residents enjoy tangible benefits?

And no less intriguing is the behind-the-scenes work: how did the planners channel their labour and imagination?

Early triumphs

WHATEVER the future, the present, at least, is promising – the project began on a strong note.

One, the URA convinced the Singapore Science Centre to stay. A well-known landmark, the centre was planning to pull up its roots and move elsewhere.

It will now get a new home on the waterfront, and be within easy reach of the Chinese Garden MRT station. Its learning activities can also be taken outdoors to the lakeside.

‘We had to hardsell the idea,” Mrs Koh-Lim Wen Gin tells Insight. Leader of the team responsible for the big picture and the vision, she is the URA’s chief planner and deputy chief executive officer (physical planning and conservation and urban design).

The centre was vital as the team had envisioned it anchoring a cluster of four or five edutainment centres.

‘Many Singaporeans also grew up with the Science Centre when young,” points out Ms Fun, the spirited director of urban planning and design who sent out the SMS.

Second, as the URA team tells it, the Singapore Tourism Board (STB) was looking for the next big thing after the Integrated Resorts (IRs).

Says Mrs Koh-Lim: ‘We helped identify Jurong Lake as a major tourism cluster that will support edutainment uses for the family.”

Third triumph: The Land Transport Authority plans to improve the Jurong East MRT station and bus interchange to serve a growing population.

The future science centre, the quest for a new buzz after the IRs and the uplifting of transport created a ‘confluence of opportunity”, says Mrs Koh-Lim.

To make the most of these possibilities, the team went onsite to size up the strengths and weaknesses of Jurong.

They tramped all over the 360ha site on foot, sometimes taking their families, and at different hours of the day to observe the changing light.

Up the Chinese Garden pagoda they went for a higher perspective. And aerial pictures were snapped from a helicopter.

Facing constraints

AS THEY worked and consulted with 100 developers, professionals and advisers, two big constraints became evident: image and distance.

Indeed, the image was so ulu that the team wondered if the name ‘Jurong’ should be abandoned.

But feedback from their consultations was a clear ‘no’.

‘Jurong is a brand known locally and internationally,” says Mrs Koh-Lim.

Foreign executives knew Jurong and companies across the world had set up shop since the early days of industrialisation in the 60s. Homely factories churned out hair cream and joss-sticks then. But now, electronics and high-tech industries prevail.

Since Jurong had an identity, its image needed a strategic tweak, not dumping.

For that, the planners roamed the world, figuratively. They loved England’s scenic Lake District, which is linked with the poetry of William Wordsworth.

Inspiring too was Hangzhou’s West Lake, whose beauty is celebrated in Chinese classics, poetry and paintings. Song Dynasty poet Su Dongpo once compared the West Lake to Xi Zi, a famous beauty in ancient China.

And, of course, Jurong too is in the west of Singapore.

In the buzz of brainstorming, the team cleverly tied the ‘lake district’ concept to Jurong.

Settling on the new name was one breakthrough for the image exercise.

The perception that Jurong is far and isolated, the team felt, was wrong. They tried taking the train and car into Jurong from the city – and zoomed in within 20 to 25 minutes, a swift pace that surprised even themselves.

In future, attractions like the future Singapore Science Centre will be clustered closer to the water or to the three MRT stations that serve the area.

Besides image and distance, is air quality an issue?

Mr Lim Eng Hwee, URA director (physical planning), says the lake district is encircled by homes.

Although there are some industries about 600m northeast of the district, in Toh Guan and Bukit Batok, they are ‘mainly clean and light industries”, he adds.

Heavier industries are more than 5km away in Jurong Island, and in Tuas which is more than 10km away.

The air quality in the western part of Singapore is safe, he says, based on monitoring by the National Environment Agency (NEA).

Meanwhile, the failed Tang Dynasty Village theme park and dispirited landmarks like the Chinese Garden are reminders that success is not always easy in Jurong.

The $100-million Tang Dynasty Village was built in 1991. It was shuttered in 1999 when it failed to attract enough visitors.

The 12ha attraction will be torn down by next year.

What’s next?

Mr Lim, the director of physical planning, says: ‘The site will be reconfigured and released for a new development concept.” Investors will have flexible use of the waterfront site.

Chances of success

ON THE probability of success, Dr Tan Cheng Bock, president of the Jurong Country Club and former MP for Ayer Rajah says: ‘Jurong is no longer boring and ulu.”

More importantly, the lake district and its west coast environs has a population base of one million people, he notes. The critical mass is there, and improved transport will bring in visitors.

He knows Jurong intimately and is near-poetic as he thinks about its underplayed appeal. ‘It’s a beautiful town, especially around Jurong Lake. It’s a jewel,” he says.

‘Jurong Island is like a Cinderella City, all lit up at night. The new Lakeside Village will be like Clarke Quay.”

So optimistic is Dr Tan that even before he knew of the Jurong Lake District blueprint, he was planning to build a hotel within the golf club.

It will possibly be a four-star hotel of 200 to 300 rooms, for foreign executives who fly in to work in the industries or petrochemical complex on Jurong Island.

The hotel idea was prompted by visitors frequently dropping in at the club to ask if it has rooms, says Dr Tan.

The URA and MPs interviewed say that what is new this time is that the area has been planned ‘holistically”.

Says Mr Lim, the URA director: ‘It merges the strengths of a new regional centre comprising some 750,000 sq m of commercial space, with the beautiful greenery of Jurong Lake.’

Also, Singapore needs to introduce new tourist attractions to build on the momentum of the IRs, Singapore Flyer and new events like the Formula One race, he adds.

The lake district is a candidate with its buzz and brand-new image, he reckons

Jurong GRC MP Grace Fu says her residents are excited about the overhaul. ‘The commercial development around Jurong East MRT will bring more jobs and economic opportunities to the area.’

Adds Mrs Fu, also the Senior Minister of State for National Development: ‘The hotels and family resorts will also give that added touch of vibrancy and glamour.”

Desirable homes

HER fellow MP in Jurong, Dr Ong Chit Chung, also cites jobs and adds: ‘Residents can easily access attractions from their doorstep. People from neighbouring areas such as Hong Kah, Bukit Batok and Jurong West will visit by MRT.

‘Housing along the lake will be very desirable.”

The plan to transform Jurong is anchored in the bigger story of the URA’s drive to spread business and jobs beyond the city, and to grow the national economy.

At another level of detail, the plans for Jurong mesh with URA ideals to deepen identity and to proliferate parks and water features island-wide.

This future Jurong is a world apart from the days when the swampland was dubbed ‘Goh’s Folly”.

In the early 1960s, Dr Goh Keng Swee, Singapore’s economic architect, flagged his idea of creating a prime industrial estate there.

Mr Ngiam Tong Dow observes with a smile: ‘Goh’s Folly is now Goh’s Blessing.’ The pioneer policymaker was designated the Estate Officer for Jurong in the 1960s, when he worked at the Economic Development Board.

In a sense, the lake district is a fulfilment – and refinement – of Dr Goh’s vision.

Its eco-city aspects, lush greenery and natural beauty now and in future have their roots in Dr Goh’s concepts.

Mr Ngiam says even in those austere days, Dr Goh had an eye for the environment. ‘He said Jurong is an industrial city and the skies will be grey all day long. He said we ought to have a spot or little oasis where the workers can go out and look at the birds.

‘And that’s how the Jurong Bird Park started.’

So Jurong has its charms too.

Mrs Fu says residents have an affection for ‘Yuhua’ – the name of the Chinese Garden in Mandarin and also the name of her Yuhua ward.

It is the ’softer appeal’ of Jurong that moves her. She highlights her friendly, down-to-earth residents, and the hours she spent ice-skating at Fuji Ice Palace with her children.

The hope is that a thousand such little, familiar emblems of Old Jurong will not change too much during the revamp.

Place to live, work, play

The plan is to make the Jurong Lake District a desirable address, a global workplace rich in jobs, and a new playground in the west.

It will be a place to live, work and play.

The new appeal will be anchored in a bundle of ideas, such as:

Maximising Jurong Lake: A new waterway will be carved out, bringing the serene water closer to the future Jurong Gateway, the commercial heart.

A third garden-island will be created. It will house an intimate ‘village’ of boutique hotels and places to chill out.

New Singapore Science Centre and family fun: The Science Centre will move to the lakefront, expand and bring learning outdoors. It anchors other edutainment centres for families.

Jurong Gateway jobs and more: Singapore’s biggest commercial hub outside the city will bring jobs to the doorsteps of residents. Located around the Jurong East MRT station – which has open land – it will have a mix of office, retail, residential, hotel, entertainment, and food and beverage uses.

Lush greenery: The sense of being close to nature will be heightened with landscaped gardens, park connectors, green elevated walkways and sky-gardens on buildings. It is an eco-city in itself.

Image overhaul: It is a move from grey to gracious. The area will morph from being the birthplace of Singapore’s industrialisation and a symbol of survival to a distinctive place with global and local appeal.

More appeal is ahead. An Urban Redevelopment Authority official says the lake district will also be a test-bed for ‘fun technology’ but was not ready to disclose details.

Source : Straits Times – 10 May 2008

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OUE earmarks $530m to build 38-storey tower

Posted by luxuryasiahome on May 10, 2008

Tenants of existing block given till end of this month to vacate premises

THE fitness chain True Yoga will have to find a new position to assume in the business district after one of its outlets got its marching orders, but it might be a bit of a stretch given the shortage of office space.

True Yoga and other tenants, including chemist Watsons and the Denise wine shop, must leave the retail block at the OUB Centre at Raffles Place to make way for a $530 million office tower.

RISING SOON: The OUB Centre Tower 2, seen here in an artist’s impression, is expected to fetch rental rates of $15 psf to $16 psf. — PHOTO: OUE

The yoga and fitness centre, which takes up more than 30,000 sq ft across four floors of the low-rise retail podium, will close at midnight next Thursday.

The other tenants must leave by the end of this month.

True Yoga has not yet secured another site, but its clients can use the group’s other two outlets at Pacific Plaza and Ocean Towers in Raffles Place. It has also arranged for its fitness clients to use facilities at Planet Fitness for six months and further extended membership packages for another six months.

Property firm Overseas Union Enterprise (OUE) will start to redevelop the retail podium site from June 1.

The podium sits next to the 60-storey OUB Centre office tower, which will not be affected by the redevelopment.

OUE received provisional permission to redevelop the podium in August last year.

True Yoga said yesterday that it was first told of the landlord’s plans on Jan 31 and given three months’ notice.

It was then granted extensions on a month-to-month basis as there had been a chance the development plans might be delayed. OUE then confirmed on April 4 that there would be no further extensions, as construction would start next month.

‘We have been actively looking for alternative locations,’ a True Yoga spokesman said last night.

‘It is not easy to locate a site of this magnitude within such a short time since the final notification on April 4.’

Some True Yoga clients were upset with the late notice of the closure.

Although the new office block will be ready only in three years, OUE has already started leasing talks with potential office tenants.

Such forward leasing action is common these days, given rising supply looming in the next 12 months and beyond.

A significant portion of OUE’s $530 million outlay will go to the Government for increasing the site’s allowable gross floor area and topping up the site’s lease from 75 years to 99 years.

Three floors in the new tower will be devoted to retail and the rest to offices. The entire block will have a total gross floor area of 45,158 sq m.

The development comes amid a boom time for office development, particularly in the business district, though there are concerns of an oversupply after 2010.

Rents have surged in the past year, with prime Grade A rents now hovering between $17 per sq ft (psf) and $18 psf.

‘There are now two market rates at work, depending on the occupation period,’ said Mr Donald Han, managing director of Cushman & Wakefield.

Rents at OUB Centre Tower 2, if already ready, could be about $18 psf. Forward rental rates for the same building, however, would be lower – possibly $15 psf to $16 psf – considering rising supply, he said.

True Yoga was in the headlines last month when sovereign wealth fund Dubai International Capital snapped up a key stake in the firm.

RELOCATION BLUES

‘It is not easy to locate a site of this magnitude within such a short time.’ - A TRUE YOGA SPOKESMAN, on the fitness centre having to find another location after being told to leave its 30,000 sq ft outlet at OUB Centre

Source : Straits Times – 10 May 2008

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DBS emerges as most resilient local bank

Posted by luxuryasiahome on May 10, 2008

THESE are not the best of times for banks, but DBS Group Holdings can at least claim that it has emerged as the most resilient of the three local players this week.

On many criteria – from share price to valuation – it held up best when all three filed their first-quarter results.

While they all delivered numbers largely in line with forecasts, their shares, which had enjoyed a fortnight of relative calm, were bruised after a rally ended on Tuesday.

Investors, unnerved over how banks would fare amid a period of slow economic growth, pocketed profits.

While DBS shares fell 1.28 per cent for the week, they came off relatively lightly compared with OCBC Bank – down 1.89 per cent – and United Overseas Bank (UOB), which retreated 3.47 per cent.

DBS, which posted a smaller-than-expected 2 per cent drop in earnings to $603 million, closed unchanged yesterday at $19.98.

Two analysts singled out the bank for a thumbs up, with research reports maintaining ‘buy’ calls, while downgrading UOB and OCBC to a ‘neutral’ from a ‘buy’ on concerns over easing loan demand.

‘We believe the market has been cautious towards DBS, as it is the prime casualty of falling rates and also because of concerns over the performance of its large Treasury division in these tough markets,’ said UBS analyst Jaj Singh in a report yesterday.

‘We believe the lower rates are fully priced in, and that there is scope for improvement with loan spreads widening, while an improvement in capital markets in recent weeks suggests the worst is over for Treasury earnings.’ 

Citigroup analyst Robert Kong also tipped DBS as the most promising of the banks. He said that while last year’s 25 per cent loan growth was unlikely to happen again, there were indications that double-digit loan growth would be achieved this year, and there was still room to improve margins.

Valuations of DBS also seem more attractive. According to UBS, DBS is trading at 12.5 times its 2008 earnings. This is low compared with 14.7 for UOB and 15.3 for OCBC.

Its share price is down 3.96 per cent this year, while OCBC is up 6.39 per cent and UOB has gained 2.31 per cent.

This indicated an upside potential for DBS, but UBS cautioned that such a potential for banking stocks was limited.

It said a higher valuation premium would require earnings forecast upgrades or a dramatic improvement in the global economy, neither of which was likely to happen in the near term.

Source : Straits Times – 10 May 2008

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DBS emerges as most resilient local bank

Posted by luxuryasiahome on May 10, 2008

THESE are not the best of times for banks, but DBS Group Holdings can at least claim that it has emerged as the most resilient of the three local players this week.

On many criteria – from share price to valuation – it held up best when all three filed their first-quarter results.

While they all delivered numbers largely in line with forecasts, their shares, which had enjoyed a fortnight of relative calm, were bruised after a rally ended on Tuesday.

Investors, unnerved over how banks would fare amid a period of slow economic growth, pocketed profits.

While DBS shares fell 1.28 per cent for the week, they came off relatively lightly compared with OCBC Bank – down 1.89 per cent – and United Overseas Bank (UOB), which retreated 3.47 per cent.

DBS, which posted a smaller-than-expected 2 per cent drop in earnings to $603 million, closed unchanged yesterday at $19.98.

Two analysts singled out the bank for a thumbs up, with research reports maintaining ‘buy’ calls, while downgrading UOB and OCBC to a ‘neutral’ from a ‘buy’ on concerns over easing loan demand.

‘We believe the market has been cautious towards DBS, as it is the prime casualty of falling rates and also because of concerns over the performance of its large Treasury division in these tough markets,’ said UBS analyst Jaj Singh in a report yesterday.

‘We believe the lower rates are fully priced in, and that there is scope for improvement with loan spreads widening, while an improvement in capital markets in recent weeks suggests the worst is over for Treasury earnings.’ 

Citigroup analyst Robert Kong also tipped DBS as the most promising of the banks. He said that while last year’s 25 per cent loan growth was unlikely to happen again, there were indications that double-digit loan growth would be achieved this year, and there was still room to improve margins.

Valuations of DBS also seem more attractive. According to UBS, DBS is trading at 12.5 times its 2008 earnings. This is low compared with 14.7 for UOB and 15.3 for OCBC.

Its share price is down 3.96 per cent this year, while OCBC is up 6.39 per cent and UOB has gained 2.31 per cent.

This indicated an upside potential for DBS, but UBS cautioned that such a potential for banking stocks was limited.

It said a higher valuation premium would require earnings forecast upgrades or a dramatic improvement in the global economy, neither of which was likely to happen in the near term.

Source : Straits Times – 10 May 2008

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Singapore to stay competitive with four-pronged strategy

Posted by luxuryasiahome on May 10, 2008

ASIA’S economic prospects look positive despite the financial turmoil in the United States, says Minister for Trade and Industry Lim Hng Kiang, and Singapore is also expected to keep its economy competitive with a four-pronged game plan.

Speaking at the European Chamber of Commerce Europe Day Lunch yesterday, Mr Lim identified the four key areas that Singapore is focusing on such as strengthening growth in the manufacturing sector – the aerospace industry and biomedical sciences, in particular – and exploring new growth areas such as clean energy.

As clean energy is a cluster that presents economic opportunities and has the potential to grow, Singapore is striving for new collaborative projects in this sector with European companies.

Greater focus on innovation and R&D is also part of the strategy, especially in fields such as environmental and water technologies, interactive and digital media, as well as life sciences.

Mr Lim also urged companies to push for an EU-Singapore free trade agreement (FTA) within the framework of the regional Asean-EU FTA so as to foster ‘deeper bilateral trade liberalisation’. An EU-Singapore FTA would produce benefits such as tariff concessions, faster market entry for EU companies as well as intellectual property (IP) protection.

While Singapore’s bank secrecy laws could prove a sticking point in establishing such an FTA, Mr Lim pointed out that Singapore had managed to draft FTAs with both the US and Japan, and that the same could be done with the European Union.

The EU, which is Singapore’s second largest trading partner after Malaysia, chalked up a record $97.5 billion in bilateral trade with Singapore last year, 6.3 per cent higher than in 2006. Europe is also the largest source of foreign investment – over a third of incoming foreign direct investment (FDI) – in Singapore. Over 7,000 European companies have established a presence in Singapore.

‘One area that deserves to be improved is trade in agricultural and processed agricultural products,’ said Ambassador Holger Standertskjold, who is head of the European Commission’s Delegation in Singapore.

Goods from Europe currently account for about 11 per cent of the total agricultural and processed agricultural products in Singapore, but it is hoped that the figure will eventually double.

Source : Business Times – 10 May 2008

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A-Reit buyer of Creative’s HQ building in Jurong East

Posted by luxuryasiahome on May 10, 2008

ASCENDAS Real Estate Investment Trust (A-Reit) has emerged as the buyer of Creative Technology’s headquarters building at 31 International Business Park in Jurong East. The price will be $246.8 million.

Creative said in March that it had agreed to sell and lease back the property but did not disclose the buyer’s identity. The deal is subject to approval by Creative shareholders and JTC Corp.

On completion of the sale, a Creative subsidiary will lease the property for five years, with options to renew for a further three plus two years.

A-Reit’s manager said the average yield for the initial five-year lease will be 6.24 per cent. Additional rent is payable in the third and fifth years of the lease if the cumulative increase in Singapore’s Consumer Price Index exceeds 5 per cent.

Had A-Reit bought, held and operated the property since the start of the current financial year, the proposed acquisition would have boosted its distributable income per unit by 0.07 cent.

A-Reit’s manager will receive a $2.5 million acquisition fee. Other transaction costs are estimated at $3.7 million.

The property, valued by CB Richard Ellis at $246.8 million, is a part five-storey, part seven-storey and part eight-storey tower with basement parking.

It has an auditorium and a 2,000-capacity outdoor amphitheatre and is on a 265,739-sq-ft site with 30 + 30 year leasehold tenure from Dec 16, 1994.

A-Reit plans to fund the acquisition by debt and/or equity. On the stock market yesterday, the counter ended 14 cents lower at $2.50.

Source : Business Times – 10 May 2008

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Yanlord more than trebles net in Q1

Posted by luxuryasiahome on May 10, 2008

YANLORD Land Group, a high- end real estate developer based in China, yesterday announced a more than trebling in net profit to $9.3 million for its first quarter ended March 31. The rise in earnings from $2.9 million for the corresponding period last year was on the back of a 30 per cent surge in revenue to $116.2 million from $89.4 million.

The revenue increase was attributed mainly to an increase in the number of properties being delivered in Zhuhai (Yanlord New City Gardens Phase 1) and Suzhou (Yanlord Peninsula). The latter contributed 79.5 per cent to Yanlord’s group revenue from the sale of properties.

Higher average selling prices for Yanlord’s high-end residential units also contributed positively to revenue, rising from 13,038 yuan per square metre (psm) in Q1 2007 to 13,329 yuan psm in Q1 2008. First-quarter earnings per share rose to 0.51 cent from 0.17 cent in the year-ago period.

Yanlord is optimistic about prospects for property development in China. It believes that there is significant potential for further growth for high-end quality developments in prime locations in major cities, in light of rising affluence and urbanisation of the China population. It cited statistics from the Chinese National Development and Reform Commission, which showed that prices for new apartment units in 70 large and medium-sized cities rose 11.8 per cent in Q1 2008.

‘Located in prime locations, our projects received overwhelming response at their respective launches. We will continue to launch additional residential units at other phases of our existing developments to capitalise on the strong demand from buyers,’ said Zhong Sheng Jian, Yanlord’s chairman and chief executive.

‘Acquisition of new sites to fuel our business development is imperative for the group’s long- term growth prospects,’ he said.

‘In February, we completed our second acquisition for the year, in Tianjin. Following this acquisition, the group’s total land bank holdings has been boosted to 4.2 million square metres.’

Yanlord began construction of its latest project, the Yanlord Yangtze Riverside City in Nanjing, during the first quarter. It expects to launch the project in the second half of 2009.

Yanlord shares fell 6 cents to close at $2.63 yesterday.

Source : Business Times – 10 May 2008

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F&N gains slip 10% on lack of one-time profits

Posted by luxuryasiahome on May 10, 2008

THE absence of one-off gains took the fizz out of Fraser & Neave’s (F&N’s) second-quarter profits.

The property, food & beverage (F&B) and publishing conglomerate reported yesterday that net profit for the period ended March 31 slid 9.8 per cent to $96.6 million.

This was because the numbers for last year’s second quarter included non-recurring gains that had boosted profits before interest and tax by $41.8 million.

These included $25.4 million from the disposal of an interest in a development site, $11.9 million from the sale of investments and $4.5 million recovered from an aborted project.

Revenue grew 4.7 per cent to $1.14 billion, as a strong showing by the F&B business helped cushion the firm against a dip from development properties.

Earnings per share before exceptional items fell from 7.7 cents to seven cents. Net asset value per share dipped from $3.77 as at Sept 30 to $3.70 as at March 31.

F&N has proposed an unchanged interim dividend of five cents a share.

Its half-year numbers were brighter, driven mainly by its property arm and soft drinks sales. Net profit grew 11.7 per cent to $205.2 million, as revenue rose 12 per cent to $2.46 billion.

Chairman Lee Hsien Yang said in a statement that the strong half-year results showed the resilience of F&N’s business portfolio.

He added: ‘Our property division continues to benefit from progressive recognition of previously sold projects, and higher rental and occupancy rates for offices, retail malls and serviced residences.

‘F&B showed resilience in spite of highly competitive conditions compounded by rapidly rising raw material costs.’

The company said yesterday that its search for a chief executive officer (CEO) is still ongoing after the abrupt departure of previous CEO Han Cheng Fong last October.

Meanwhile, F&N’s unit – Asia Pacific Breweries (APB) – reported a 12.9 per cent jump in second-quarter net profit to $43.6 million, as revenue grew 8.6 per cent to $487.9 million.

Earnings per share before exceptional items rose from 15 cents to 18 cents, while net asset value per share increased from $3.69 as at Sept 30 last year to $3.74 as at March 31.

APB CEO Koh Poh Tiong said Indochina remained the star performer, accounting for 52 per cent of group profit before interest and tax.

He added: ‘I am particularly pleased that Singapore achieved a 4 per cent increase in domestic sales in a largely mature market.

‘Our wide portfolio of complementary brands is winning over consumers in Singapore despite the plethora of competitive brands.’

APB is recommending an interim dividend of 14 cents a share. Its shares closed two cents up yesterday at $13.40.

Recent key developments include the opening of a brewery in Laos and the expansion of another in North Vietnam.

Yesterday, F&N shares rose three cents to $4.92.

Source : Straits Times - 10 May 2008

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Property key driver as F&N H1 net profit rises 11.7%

Posted by luxuryasiahome on May 10, 2008

Group looks to grow other business segments; second-quarter net earnings fall 9.8%

THE property segment was the key profit driver for Fraser & Neave (F&N) in the first half of its financial year. But that may change in future as the group looks to grow other business segments, with action likely to occur on the food and beverage (F&B) front.

F&N yesterday reported net earnings of $96.6 million for the second quarter ended March 31, 2008, 9.8 per cent down from $107.1 million in Q2 2007.

But for the six months to March 31, net earnings rose 11.7 per cent to $205.2 million, from $183.7 million in the corresponding period last year. This came on the back of a 12 per cent increase in revenue for H1 2008, to $2.46 billion from $2.20 billion in the year-ago period.

Earnings per share for H1 2008 was 14.8 cents, up 2 cents. Interim dividend remained at five cents per share.

H1 profit before interest, taxation and exceptional items rose 10 per cent to $406 million. The property segment took up the largest share of this, at $224.8 million or 55 per cent.

Describing F&N’s strategy going forward, group company secretary Anthony Cheong said: ‘From the viewpoint of balancing the portfolio of our businesses, there is that intention to increase the contribution from our other businesses so that there is less reliance on the profits of property.’

‘One way of achieving a great leap must be through mergers and acquisitions (M&As),’ Mr Cheong also said. And asked if M&As would occur in the F&B industry, Mr Cheong replied: ‘Yes we are looking at M&As in the F&B industry.’

According to F&N, its newly-acquired Nestle business, stronger soft drinks sales, improved performance by Frasers Hospitality, and higher rental income from its commercial property division also led to profit improvement.

In the group’s press release, chairman Lee Hsien Yang said: ‘Our strong half-year results demonstrated the resilience of F&N’s portfolio of businesses.’

Mr Lee also noted that ‘while the global economic outlook is now less certain, the weaker market presents excellent opportunities for F&N to make investments at more reasonable values’.

F&N’s ongoing search for a CEO was also discussed at yesterday’s results briefing. Speaking to reporters, Mr Cheong mentioned that finding a suitable candidate remained a priority for the group, because in the long term, ‘you cannot have a driverless train’.

In response to continuing market talk that F&N’s business may be split in future, Mr Cheong reiterated the stand that there were no plans to break the group up at the moment.

Shares of F&N closed at $4.92 yesterday, three cents up.

Source : Business Times – 10 May 2008

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Property key driver as F&N H1 net profit rises 11.7%

Posted by luxuryasiahome on May 10, 2008

Group looks to grow other business segments; second-quarter net earnings fall 9.8%

THE property segment was the key profit driver for Fraser & Neave (F&N) in the first half of its financial year. But that may change in future as the group looks to grow other business segments, with action likely to occur on the food and beverage (F&B) front.

F&N yesterday reported net earnings of $96.6 million for the second quarter ended March 31, 2008, 9.8 per cent down from $107.1 million in Q2 2007.

But for the six months to March 31, net earnings rose 11.7 per cent to $205.2 million, from $183.7 million in the corresponding period last year. This came on the back of a 12 per cent increase in revenue for H1 2008, to $2.46 billion from $2.20 billion in the year-ago period.

Earnings per share for H1 2008 was 14.8 cents, up 2 cents. Interim dividend remained at five cents per share.

H1 profit before interest, taxation and exceptional items rose 10 per cent to $406 million. The property segment took up the largest share of this, at $224.8 million or 55 per cent.

Describing F&N’s strategy going forward, group company secretary Anthony Cheong said: ‘From the viewpoint of balancing the portfolio of our businesses, there is that intention to increase the contribution from our other businesses so that there is less reliance on the profits of property.’

‘One way of achieving a great leap must be through mergers and acquisitions (M&As),’ Mr Cheong also said. And asked if M&As would occur in the F&B industry, Mr Cheong replied: ‘Yes we are looking at M&As in the F&B industry.’

According to F&N, its newly-acquired Nestle business, stronger soft drinks sales, improved performance by Frasers Hospitality, and higher rental income from its commercial property division also led to profit improvement.

In the group’s press release, chairman Lee Hsien Yang said: ‘Our strong half-year results demonstrated the resilience of F&N’s portfolio of businesses.’

Mr Lee also noted that ‘while the global economic outlook is now less certain, the weaker market presents excellent opportunities for F&N to make investments at more reasonable values’.

F&N’s ongoing search for a CEO was also discussed at yesterday’s results briefing. Speaking to reporters, Mr Cheong mentioned that finding a suitable candidate remained a priority for the group, because in the long term, ‘you cannot have a driverless train’.

In response to continuing market talk that F&N’s business may be split in future, Mr Cheong reiterated the stand that there were no plans to break the group up at the moment.

Shares of F&N closed at $4.92 yesterday, three cents up.

Source : Business Times – 10 May 2008

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