Archive for May 22nd, 2008
Posted by luxuryasiahome on May 22, 2008
Two of Singapore’s largest office developments, Marina Bay Financial Centre (MBFC) and One Raffles Quay (ORQ), have featured strongly in the latest Building and Construction Authority (BCA) Awards, proving that large scale developments can lead the way in safety and sustainability, said the joint venture consortium behind the two mega developments.
MBFC Phase 1 (Commercial), comprising of two towers with more than 1.6 million square feet (154,000 square metres) of prime Grade A office space, has been bestowed the BCA Green Mark Gold Award, following a similar award in May 2007 for Marina Bay Residences, also within the development.
ORQ, with its distinctive twin towers totaling 1.29 million square feet (120,000 square metres), garnered one of the BCA’s inaugural Design and Engineering Safety Excellence Awards recognising the numerous technical and safety challenges successfully addressed in this unique project which straddles the North-South MRT Line and incorporates a massive District Cooling System.
MBFC and ORQ were both developed by Cheung Kong (Holdings), Hongkong Land and Keppel Land (with Hutchison Whampoa sharing part of Cheung Kong’s interest in MBFC), although ORQ has since been sold to Hongkong Land and REITS associated with Keppel Land and Cheung Kong.
MBFC General Manager Wilson Kwong, said the awards affirm the feasibility for developers to offer safer and more sustainable developments even on a grand scale.
“These awards are further testaments to our efforts to deliver world-class and sustainable developments creating the best possible environment for live, work and play,” Mr Kwong said.
For MBFC Phase 1 (Commercial), the developers have employed construction techniques which will save 240,000 cubic metres of water (the equivalent of 117 Olympic-sized pools) as well as a host of energy conservation features including an energy efficient glass curtain cladding system, energy-saving air-conditioning, lighting and lift systems.
Mr Kwong added, “Apart from the green technology employed, more than 35% of the total land area will be landscaped, creating relaxing surroundings for tenants and cooling our urban environment.”
Future tenants of MBFC, such as Standard Chartered Bank (SCB) which will anchor Tower 1, have welcomed the benefits of an environmentally-friendly building.
“Relative to other sectors, SCB’s direct environmental impacts are small but the Bank is committed to minimising them. The Bank seeks to reduce carbon emissions and paper consumption, and monitors its operational impacts through our Global Environmental System, which is modeled broadly on ISO 14001. So environmental performance was definitely an important factor in choosing MBFC as the location for our global businesses,” said Mr Steve Riley, Project Director, Standard Chartered Bank Singapore Relocation Projects.
“We are committed to safety and sustainability in the built environment and will apply our experience as MBFC progresses towards completion of Phase 1 in 2010 and Phase 2 in 2012,” Mr Kwong concluded.
Source : Baldwin Boyle Shand Limited – 21 May 2008
Posted in General, Office / Retail Space | Tagged: BCA, Building and Construction Authority, Green Buildings, Green Mark, Marina Bay Financial Centre, Marina Bay Residences, MBFC, One Raffles Quay, ORQ, Singapore Office | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
US investor Warren Buffet said on Wednesday that he saw the impact of the current financial crisis on the US economy lasting longer than many people do.
Mr Buffet said the US dollar would continue to fall as the policies needed to correct the greenback’s slide had yet to be implemented
‘I think tidal wave that hit various financial institutions since last August has largely been recognised and felt,’ Mr Buffet, the world’s richest man, told a news conference in Madrid.
‘In terms of the effect on the economy in the United States, we don’t know, but I think it will be longer and deeper then many people do. There could well be a lot to come,’ he added.
Dollar will continue to fall
Mr Buffet said the US dollar would continue to fall as the policies needed to correct the greenback’s slide had yet to be implemented.
‘The dollar will decline in value. That’s not a 20-year prediction or a two-year prediction. The same policies that have obviously resulted in a deterioration in the value of the dollar will produce some more results,’ he said.
‘It looks at the present time like those same policies are being continued, so I would expect, unless we have a major change, that the dollar will decline in value over a long period of time,’ he added, who is worth US$62 billion according to Forbes magazine.
Won’t buy Internet firms
Mr Buffet said that he had no plans to invest in Internet companies.
‘I have tried to stay with businesses where I know how their economics will look in five, 10 or 20 years and that’s much easier to do in areas where there’s little change,’ he said.
‘I’m not good at predicting change. I tend to stick with things where there is very little change and that tends to preclude internet companies,’ he added. — REUTERS
Source : Business Times – 22 May 2008
Posted in General, Global Economy | Tagged: Financial Crisis, US Dollar, US Economy, Warren Buffet, Warren Buffet on US Economy | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
Decline of 60% to US$8b in Q1 2008, says report from Jones Lang LaSalle
Global hotel acquisitions dropped more than 60 per cent in the first three months of the year as credit tightened after losses and writedowns related to the United States sub-prime mortgage collapse, Jones Lang LaSalle Inc said.
Hotel investment fell to about US$8 billion in the first quarter of 2008, after exceeding US$20 billion year earlier, according to a report by Jones Lang LaSalle, the world’s second- largest real estate broker.
‘We are expecting to see a further decline in buying intention and an increase in holding intention,’ said Arthur de Haast, chief executive officer of Jones Lang LaSalle Hotels, said at a conference on Tuesday in Tokyo. ‘This is just reflecting the fact that there is very limited liquidity in debt markets.’
Global real estate financing has evaporated as defaults by US homeowners saddled banks and securities firms with more than US$379 billion of losses and asset writedowns worldwide. That has slashed demand from investors for hotel properties, according to a survey conducted by Jones Lang LaSalle.
‘Hotel owners are preferring to hold their assets and buyers are waiting to see in which direction the market is going to move before they start buying again,’ Mr de Haast said.
Few hotel transactions were completed in the first quarter of 2008 because of the tightening debt market from the end of 2007, according to the Jones Lang LaSalle report.
Rising borrowing costs, which affect a buyers’ ability to pay higher prices, mean hotel prices in Japan should fall, Gregory Stuppler, managing director of Starwood Capital Group said at the hotel investment conference organised by Jones Lang LaSalle.
Mr Stuppler said that he would offer 25 per cent less for a hotel than a year ago.
Global hotel investment in 2007 surged 52 per cent to a record high of US$110 billion, the Chicago-based firm said.
Jones Lang Hotels advises on transactions in the hotel industry as well as on appraisals and raising capital. — Bloomberg
Source : Business Times – 22 May 2008
Posted in General, Hotel, Property Investment | Tagged: Global Real Estate, Hotel Acquisitions, Hotel Investment, Jones Lang LaSalle | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
Singapore-listed Reit CapitaMall Trust (CMT) said it is buying office development, The Atrium@Orchard, for $839.8 million (US$619 million) from the government through its trustee HSBC Institutional Trust Services.
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CMT said the total acquisition cost, including purchase price and fees, would be $850 million and would be funded by a mixture of debt and convertible bonds.
The development, of two office towers of seven and 10 storeys, is located at Singapore’s main shopping belt along Orchard Road, CMT said in a statement on Thursday.
It also has some ground floor retail space and is connected to a major train interchange.
Trading in shares of CMT was halted at 1400 (0600 GMT). — REUTERS
Source : Business Times – 22 May 2008
Posted in General, Office / Retail Space, REITS | Tagged: CapitaMall Trust, REITS, Singapore Office, Singapore REITS, Singapore Retail, The Atrium @ Orhcard | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
CapitaMall Trust (CMT) has bought The Atrium@Orchard office development for about S$840 million.
CMT said the purchase from the Singapore Land Authority (SLA) will be funded by a mix of debt and convertible bonds.
Describing the acquisition as yield-accretive, the Trust plans to issue at least S$650 million worth of bonds.
The Atrium@Orchard is a commercial development comprising two Grade A office towers and some ground floor retail space.
CMT plans to integrate the development with the Plaza Singapura shopping mall next door which it also owns.
Deputy Chairman of CapitaMall Trust Management Liew Mun Leong said the proposed merger of the two properties will create one of the largest integrated developments along Orchard Road.
The combined property will have about 170m of prime retail frontage and over 900,000 sq ft of net lettable space.
The acquisition will also grow CMT’s asset size by 15 percent to some S$6.9 billion.
With the latest purchase, CMT has revised its local target asset size from S$8 billion to S$9 billion by 2010.
Source : Channel NewsAsia – 22 May 2008
Posted in General, Office / Retail Space, REITS | Tagged: CapitaMall Trust, REITS, Singapore Office, Singapore REITS, Singapore Retail, The Atrium @ Orhcard | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
CapitaMall Trust Management Limited (“CMTML”), the manager of CapitaMall Trust (“CMT”), is pleased to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of CMT, has entered into a sale and purchase agreement with the Government of the Republic of Singapore acting through its agent, the Singapore Land Authority, in respect of the acquisition of The Atrium@Orchard (“Atrium”) at a purchase price of S$839.8 million. Atrium, zoned as a commercial development, currently comprises two Grade A office towers of seven and ten storeys and some ground floor retail space. Located in the downtown core of Singapore, Atrium is sited along Singapore’s main shopping street, Orchard Road, and enjoys direct connectivity to the Dhoby Ghaut Mass Rapid Transit (“MRT”) interchange station. Dhoby Ghaut MRT station is a major transportation node in the city centre, as it is one of only two key interchange stations in the downtown core which currently serves two train lines and will serve an additional train line by 2010. Atrium is also situated adjacent to Plaza Singapura, one of CMT’s existing properties. The yield accretive acquisition is expected to be completed by end-August 2008.
Valuation, Funding Plans and Gearing
The total acquisition cost, inclusive of the purchase price of S$839.8 and other fees and expenses, amounts to S$850.0 million. An independent valuation by Knight Frank Pte Ltd, commissioned by CMTML, has valued Atrium at S$850.0 million. The total acquisition cost of S$850.0 million is funded via a combination of an issuance of secured Convertible Bonds (“CBs”) and through tapping on CMT’s S$1.0 billion Medium Notes (“MTN”) programme. CMTML has appointed Goldman Sachs (Singapore) Pte. (“Goldman Sachs”) as the Sole Lead Manager and Underwriter for the proposed issuance of CBs with an aggregate principal amount of no less than S$650.0 million. The CBs quantum of S$650.0 million is fully underwritten by Goldman Sachs. The remaining acquisition cost will be funded through utilising part of the aggregate proceeds of S$395.0 million which CMT has issued under its MTN programme in the last two months. Following the completion of the acquisition of Atrium and the issuance of the CBs, CMT’s gearing will be at 45.0%.
Mr Liew Mun Leong, Deputy Chairman of CMTML, said, “The Atrium@Orchard is a prime asset strategically located in the downtown core along Singapore’s most famous shopping street, Orchard Road. The proposed integration of The Atrium@Orchard and Plaza Singapura will create one of the largest integrated developments along Orchard Road, with approximately 170 metres of prime retail frontage and over 900,000 square feet of net lettable space. In addition to strengthening our retail presence in Singapore’s downtown core, the acquisition of The Atrium@Orchard will grow CMT’s asset size from S$6.0 billion to approximately S$6.9 billion, further reinforcing CMT’s lead as Singapore’s largest real estate investment trust by asset size and market capitalisation. Given CMT’s proven delivery capabilities and its potential for long term growth, we are confident that the S$650.0 million worth of Convertible Bonds will be well-received by local and international investors. We will continue to actively pursue yield accretive acquisition opportunities and have revised our local target asset size from S$8.0 billion to S$9.0 billion by 2010.”
Mr Pua Seck Guan, Chief Executive Officer of CMTML, said, “The yield accretive acquisition of The Atrium@Orchard provides significant synergistic value creation opportunities with the potential to amalgamate with Plaza Singapura. The opportunity to create more than 100,000 square feet of prime retail lettable area on Levels 1 and 2 of The Atrium@Orchard, by decanting lower yielding spaces and integrating with Plaza Singapura, coupled with the potential to double the average office rental of the property by 2010, are expected to generate significant revenue growth for CMT. With the improved integrated asset plan and the enhanced direct connectivity from the Dhoby Ghaut MRT interchange station to Level 3 of Plaza Singapura, the values of both assets are expected to increase. There is also an excellent opportunity to capitalise on the long frontage along the prime Orchard Road strip to create highly visible duplex flagship stores. The extensive asset enhancement opportunity will extend CMT’s growth profile, and by leveraging on our retail real estate asset management expertise, we are confident of delivering stable distribution and sustainable total returns to unitholders going forward.”
Average Rental of The Atrium@Orchard
Atrium is currently under-rented, with an average committed property rental of S$5.87 per square foot (“sq ft”) per month (“per mth”), resulting in an initial property yield of approximately 2.1%. Recently, an office lease at Atrium was renewed at S$13.00 per sq ft per mth. There is potential for the average office rental to double to S$10.00 to S$12.00 per sq ft per mth by 2010 to 2011, even after taking into account rental cap conditions in certain anchor tenants’ leases. With the creation of more than 100,000 sq ft of new retail lettable area, further upside in rental revenue can be expected.
Source : CapitaMall Trust Management Limited
Posted in General, Office / Retail Space, REITS | Tagged: CapitaMall Trust, REITS, Singapore Office, Singapore REITS, Singapore Retail, The Atrium @ Orhcard | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
FORGET rushing home after work to watch television or sleep early. Singapore’s urban planners want you to stay out late more and take in the city’s buzz after dark, when the weather is cooler.
The effort to cultivate more night owls islandwide starts with Singapore’s first Night Festival in July, when people can pay a midnight visit to a museum, dance the night away at a street party or take in an open-air performance.
And improved night lighting, new street fixtures and more public spaces for night activities will also follow in four key areas: Orchard Road, Singapore River, Bras Basah/Bugis and Marina Bay.
The blueprint for after-dark entertainment was unveiled last night by National Development Minister Mah Bow Tan at the Singapore Institute of Architects’ annual dinner at the Suntec convention centre ballroom.
‘Such programming is important as it contributes to the ’soul’ of city life,’ said Mr Mah.
The Night Festival, which is being developed by the National Heritage Board, will be held in the Stamford Road and Bras Basah area over two weekends: July 18 and 19, and July 25 and 26.
Performances such as outdoor aerial shows, live music concerts and street theatre are some examples of what has been lined up for the event.
Full details will be made available next month.
The plan to increase night-time buzz is part of enhancing what the Urban Redevelopment Authority calls ‘urban experiential entertainment’, which includes everything from museums like the new National Arts Gallery to late night shopping in Orchard Road and entertainment outlets in places like Rochester Park and Tanglin Village.
Source : Straits Times – 22 May 2008
Posted in All Singapore, General | Tagged: National Heritage Board, Night Festival, Singapore Night Life, Singapore Recreational Options | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
FORGET rushing home after work to watch television or sleep early. Singapore’s urban planners want you to stay out late more and take in the city’s buzz after dark, when the weather is cooler.
The effort to cultivate more night owls islandwide starts with Singapore’s first Night Festival in July, when people can pay a midnight visit to a museum, dance the night away at a street party or take in an open-air performance.
And improved night lighting, new street fixtures and more public spaces for night activities will also follow in four key areas: Orchard Road, Singapore River, Bras Basah/Bugis and Marina Bay.
The blueprint for after-dark entertainment was unveiled last night by National Development Minister Mah Bow Tan at the Singapore Institute of Architects’ annual dinner at the Suntec convention centre ballroom.
‘Such programming is important as it contributes to the ’soul’ of city life,’ said Mr Mah.
The Night Festival, which is being developed by the National Heritage Board, will be held in the Stamford Road and Bras Basah area over two weekends: July 18 and 19, and July 25 and 26.
Performances such as outdoor aerial shows, live music concerts and street theatre are some examples of what has been lined up for the event.
Full details will be made available next month.
The plan to increase night-time buzz is part of enhancing what the Urban Redevelopment Authority calls ‘urban experiential entertainment’, which includes everything from museums like the new National Arts Gallery to late night shopping in Orchard Road and entertainment outlets in places like Rochester Park and Tanglin Village.
Source : Straits Times – 22 May 2008
Posted in All Singapore, General | Tagged: National Heritage Board, Night Festival, Singapore Night Life, Singapore Recreational Options | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
FANS of the lush farms in Lim Chu Kang and the serenity of Kranji’s Sungei Buloh Nature Reserve can look forward to more outdoor activities in Singapore’s small slice of countryside.
Under a plan unveiled by National Development Minister Mah Bow Tan yesterday, Lim Chu Kang and Kranji have been earmarked for several new leisure activities, from kayaking to farm stays.
The goal is to turn the areas into a ‘weekend refuge’ for urbanites, said Mr Mah.
The blueprint is part of a bigger five-year review of the masterplan for Singapore’s development, which will be announced tomorrow.
It will include a new emphasis on the laidback countryside charm of Lim Chu Kang, now dotted with 115 fish, goat and vegetable farms.
Three new sites will be released for the ‘agri-tainment’ business, a sector that includes farm stays, countryside spas and centres that teach urban dwellers the appeal of farming.
In Kranji – already home to the 130ha Sungei Buloh Nature Reserve – land will be set aside for two new parks totalling 21ha.
Besides the current 2km-long Kranji Nature Trail, new paths are being created to make another 17ha of the mangrove swamps in the Kranji Marshes accessible to the public.
Sea sports enthusiasts can also look forward to kayaking on the Kranji Reservoir and other non-motorised boating activities.
Mr Mah announced the plans yesterday at the Singapore Institute of Architects’ annual dinner at Suntec convention centre.
The area, he said, will be ‘developed into an attractive weekend refuge for urban dwellers’.
Farmers in Kranji and Lim Chu Kang welcomed the news that the area has been set aside as a playground for Singaporeans.
It is something the farmers who formed the Kranji Countryside Association have been trying to do for the past few years. They have organised annual events such as the Spring Festival during Chinese New Year to promote the area and attract visitors.
Mrs Ivy Singh-Lim, president of the association, said their aim now is to ‘bring back the fireflies within five years’. The bugs, once plentiful in Singapore, died out years ago because of development.
Her only worry is that the developments will become too artificial, ruining the area’s rustic charm.
Source : Straits Times – 22 May 2008
Posted in All Singapore, General, Masterplan | Tagged: Agri-tainment, Countryside Spas, Farm Stays, Kranji, Kranji Nature Trail, Lim Chu Kang, Singapore Recreational Options, Sungei Buloh Nature Reserve | Leave a Comment »
Posted by luxuryasiahome on May 22, 2008
FANS of the lush farms in Lim Chu Kang and the serenity of Kranji’s Sungei Buloh Nature Reserve can look forward to more outdoor activities in Singapore’s small slice of countryside.
Under a plan unveiled by National Development Minister Mah Bow Tan yesterday, Lim Chu Kang and Kranji have been earmarked for several new leisure activities, from kayaking to farm stays.
The goal is to turn the areas into a ‘weekend refuge’ for urbanites, said Mr Mah.
The blueprint is part of a bigger five-year review of the masterplan for Singapore’s development, which will be announced tomorrow.
It will include a new emphasis on the laidback countryside charm of Lim Chu Kang, now dotted with 115 fish, goat and vegetable farms.
Three new sites will be released for the ‘agri-tainment’ business, a sector that includes farm stays, countryside spas and centres that teach urban dwellers the appeal of farming.
In Kranji – already home to the 130ha Sungei Buloh Nature Reserve – land will be set aside for two new parks totalling 21ha.
Besides the current 2km-long Kranji Nature Trail, new paths are being created to make another 17ha of the mangrove swamps in the Kranji Marshes accessible to the public.
Sea sports enthusiasts can also look forward to kayaking on the Kranji Reservoir and other non-motorised boating activities.
Mr Mah announced the plans yesterday at the Singapore Institute of Architects’ annual dinner at Suntec convention centre.
The area, he said, will be ‘developed into an attractive weekend refuge for urban dwellers’.
Farmers in Kranji and Lim Chu Kang welcomed the news that the area has been set aside as a playground for Singaporeans.
It is something the farmers who formed the Kranji Countryside Association have been trying to do for the past few years. They have organised annual events such as the Spring Festival during Chinese New Year to promote the area and attract visitors.
Mrs Ivy Singh-Lim, president of the association, said their aim now is to ‘bring back the fireflies within five years’. The bugs, once plentiful in Singapore, died out years ago because of development.
Her only worry is that the developments will become too artificial, ruining the area’s rustic charm.
Source : Straits Times – 22 May 2008
Posted in All Singapore, General, Masterplan | Tagged: Agri-tainment, Countryside Spas, Farm Stays, Kranji, Kranji Nature Trail, Lim Chu Kang, Singapore Recreational Options, Sungei Buloh Nature Reserve | Leave a Comment »
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