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Archive for July 14th, 2008

Fake landlord cheats expat of $1,400

Posted by luxuryasiahome on July 14, 2008

HE fell in love with the flat the moment he saw it – so much so that he signed a tenancy agreement on the spot.

Mr Bhattacharjee and his wife liked the flat so much, he signed the tenancy agreement that very day. — Picture: CHOO CHWEE HUA

But perhaps, he was a tad too hasty in making the decision.

Now, Indian national Rohan Bhattacharjee, who is in Singapore on an employment pass, is $1,400 poorer.

The money was for a rental deposit on a two-room flat at Farrer Park.

But two days before he was due to move in, Mr Bhattacharjee’s ‘landlord’ disappeared.

Mr Bhattacharjee, 27, has been unable to contact the man since. The New Paper understands that the ‘landlord’ Mr Bhattacharjee dealt with is not the owner of the flat.

Mr Bhattacharjee, who came to Singapore in 2004, previously rented a room in a three-room flat in Bukit Batok. He is here with his wife, 19, also an Indian national.

On 23 May, he saw a newspaper advertisement offering the Farrer Park unit for rent. He decided to view the flat four days later as it was nearer his workplace at City Hall.

He works in a law firm as a clients liaison manager.

REASONABLE RENT

He said of the flat: ‘It was clean and well-furnished. It was also big enough for my parents to stay if they visit me from India.’

The monthly rent of $1,600 was reasonable, he thought.

Though he had other viewing appointments for other units, he and his wife were so happy with the Farrer Park flat they signed the tenancy agreement immediately.

Mr Bhattacharjee paid the ‘landlord’, whom he described as a man in his early 30s, a deposit of $1,400. They arranged to meet on 13Jun to settle the $200 balance and for Mr Bhattacharjee to get the keys.

But on that day, the ‘landlord’ did not show up for their meeting at the flat. His handphone was turned off when Mr Bhattacharjee called.

He could not reach the man for the next two days either.

On 15Jun, Mr Bhattacharjee left a note for the man on the door of the flat, asking the latter to call him.

The next day, he got a call, but not from the ‘landlord’. Instead, it was a fellow Indian national, who told him he was working here as a doctor.

Mr Bhattacharjee said: ‘He told me he also signed a tenancy agreement with the same man.’

They met the next day and the other man showed Mr Bhattacharjee his agreement.

‘He signed it one day after I did!’ Mr Bhattacharjee said.

After advising the man to make a police report, Mr Bhattacharjee did so himself the next day. The police said they are investigating the matter.

Mr Bhattacharjee said he did not hear from the other man again and has lost his contact number.

But they may not be the only victims.

A neighbour who lives next to the Farrer Park unit, who gave his name only as Mr Feng, told The New Paper that five different men had turned up at the flat within a week.

‘They told me they rented the flat and were looking for the owner. They showed me photos of the man from whom they rented the flat.’

But Mr Feng, who moved into his flat only at the start of July, did not recognise the man in the photos.

‘I met a man who told me he was the flat’s owner and he does not look like the man in the picture. I don’t think it is the same person.’

Mr Bhattacharjee said: ‘I think the man (with whom I signed the tenancy agreement) could have been a tenant.’

He said he has given up hope of getting his money back and has deleted the man’s number from his handphone.

‘What can I do? I will take it that I lost my wallet with $1,400 inside,’ he said.

When The New Paper visited the flat on 4 Jul, no one came to the door.

We saw an orange plastic bag wedged between the door and the gate. But it was gone when we went back three days later. We went again two days later and still, no one was home.

Mr Bhattacharjee is now renting a room in a Bendemeer flat and said he would go through an agent the next time he wants to rent a flat.

He said: ‘Even if I find the man, I may not get my money back. I just want to share my story so others can be careful.’

Source : New Paper – 14 Jul 2008

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Prices of good class bungalows still going up, but volume falls

Posted by luxuryasiahome on July 14, 2008

25 deals done in H1 worth $440.65m, against 87 deals for 2007 worth $1.15b

THE volume of transactions of good class bungalows (GCBs) may have fallen along with other property sectors but values have not.

A GCB is one that sits on designated land no smaller than 15,000 sq ft. And according to an analysis by CB Richard Ellis (CBRE), there were 25 GCB transaction in the first half of 2008.

While this may be a fraction of the 87 transactions in 2007, the total value for H1 2008 is already $440.65 million, almost 40 per cent of the total value for the whole of 2007 which saw $1.15 billion worth of deals.

There are several explanations for this, including the possibility that bigger GCBs were sold this year, but it also seems clear that prices have risen.

Upon closer analysis, CBRE found that some of the GCBs sold in 2008 had already changed hands once before in 2007. For instance, a house at Fifth Avenue was sold for $17.4 million in June 2007 and then sold again for $19.7 million in March this year – representing a gain of about 13 per cent.

Another house in Cluny Hill was sold in January 2007 for $15 million, re-sold six months later for $20.2 million and then sold again in May this year for $21.5 million.

CBRE director (luxury homes) Douglas Wong says: ‘There is still buying interest in the GCB market as it is always regarded as an attractive investment in the long term and/or for owner-occupation.’

This certainly seems to be supported by the fact that CBRE and Mr Wong handled possibly the biggest GCB deal ever done here – a house in Leedon Park which sold for $43.2 million in May, bought by a Singaporean.

That locals make up the bulk of GCB buyers is interesting as foreigners have been very much credited with bolstering the luxury non-landed sector. Mr Wong also believes that of the estimated 2,400 GCBs in Singapore, these are owned by a small pool of about 1,000 wealthy individuals, suggesting that many own more than one GCB.

In tracking GCB transactions, CBRE found that there were two recent ‘peaks’ in the sector. (CBRE defines ‘peak’ in terms of volume rather than price).

The first peak occurred in 1999, when 77 transactions were recorded after the property market bottomed out during the Asian financial crisis.

The second peak occurred in 2006 with 119 deals done following a protracted period of market stagnation from 2000 to 2004.

In 2006, the 119 GCBs were sold with transacted value totalling $1.225 billion, double the value in 1999.

On average, each GCB cost $9 million to $10 million. In comparison, at the bottom of the market in 2002, the average price of a GCB was $6 million to $7 million.

Of the 25 GCBs sold in H1 2008, about half were sold for over $15 million. Of these, six were sold for more than $20 million.

And as CBRE notes, luxury properties are often seen as a barometer of the health of the overall market. When there are signs of the market turning, GCBs and luxury apartments will reflect this first and post bigger gains ahead of the broader residential market.

So it is good news then that for the rest of the year, CBRE expects GCB prices to remain firm or even see a marginal upside.

Source : Business Times – 14 Jul 2008

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Giant property IPO if Mapletree decides to list

Posted by luxuryasiahome on July 14, 2008

Temasek unit ramping up property funds to lay base for consistently high ROE model

AN initial public offering for Mapletree Investments Pte Ltd, a fully-owned subsidiary of Temasek Holdings, could take place in the near future, The Business Times understands.

Based on recent valuations, the entity could have a market cap of over $5 billion.

When contacted, a Mapletree spokeswoman said: ‘We are ready for an IPO in terms of our business profile and track record. However, the decision to IPO the company will rest with our board and shareholders.’

‘Over the last few years, we have put in place processes and governance similar to that of a listed company, to ready ourselves for an eventual IPO. What will drive the IPO decision, however, will be the readiness and attractiveness of our business model and strategy as a real estate capital management company.’

A key internal threshold the group has to cross to be IPO-ready is that the ratio of assets under management (AUM) to assets owned by Mapletree must exceed 1.0. ‘As at March 31, 2008, our AUM to owned assets was 0.5 and the ratio currently is about 0.8, including the recently completed acquisition of the $1.7 billion JTC portfolio by a private trust led and sponsored by Mapletree. We expect the ratio to exceed 1.0 by March 2009,’ the spokeswoman added. The next target will be to grow this ratio to 3.0 within three to five years.

AUM refers to assets held in Mapletree-managed private and listed funds with third-party investors.

Growing the AUM business will enable Mapletree to earn more fee income from managing property funds as well as managing the properties owned by these funds.

‘Strong recurring fee income will be the bedrock of our strategy for delivering consistently high returns on equity (ROE) of above 10 per cent to shareholders,’ Mapletree’s spokeswoman added.

Fees collected from managing funds and the properties held by these funds generally tend to be more stable than the property development and ownership business, which is more cyclical and considered more risky from an investment point of view.

‘Our fee income made up about 10 per cent of total revenue for financial year ended March 2008 and we hope to grow this to 50 per cent in three to five years.’

One event that could help Mapletree reach the target of a 3.0 ratio for AUM to owned assets sooner is the much-anticipated flotation of Mapletree Commercial Trust, which will hold about $3 billion of assets including Vivocity, St James Power Station, Harbourfront Centre and some nearby office blocks.

This trust was to have been floated by April this year but has been held back because of adverse stockmarket conditions.

The investment proposition of a potential IPO for Mapletree Investment would be that ‘we offer a strong real estate capital management platform with an Asian focus for investors’, Mapletree’s spokeswoman said.

‘However, investors who want a more targeted approach, for example, India or China, can invest directly in our funds. So we offer a whole suite of investment opportunities,’ she added.

For the year ended March 31, 2008, Mapletree posted a 3 per cent dip in net earnings to $1.04 billion due to a lower net revaluation gain and higher net finance cost. Operating profit, however, rose 35 per cent to $146.9 million, on the back of first full-year contributions from VivoCity and St James Power Station and maiden contribution from The Beacon, a residential project at Cantonment Road.

Mapletree’s revenue jumped 69 per cent to $365.6 million.

Shareholder funds increased 28 per cent year-on-year to $4.4 billion as at March 31, 2008.

That could potentially translate to a market cap of more than $5 billion, assuming that Mapletree shares hypothetically trade at a 23 per cent premium to its net asset value. The 23 per cent premium was the peer mean based on the July 11 closing share prices of CapitaLand, City Developments (after taking into account investment properties at valuation), Keppel Land and Singapore Land.

Mapletree Investments manages six property funds, including the listed Mapletree Logistics Trust. The group had $3.1 billion of AUM as at end-March 2008, a 94 per cent jump year on year, while Mapletree’s owned assets rose at a slower pace of 45 per cent to $5.7 billion.

Recently, the group formed a joint-venture private fund with Arcapita Bank to hold the $1.7 billion portfolio of properties acquired from JTC Corp. In April, Mapletree launched an India-China fund that has so far bought $600 million of assets. These initiatives will drive fee income revenue, which increased nearly 50 per cent to $29 million in the latest financial year.

Source : Business Times – 14 Jul 2008

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Latest squeeze in parking space: Condos

Posted by luxuryasiahome on July 14, 2008

ADDING to the stress of vehicle ownership in Singapore with ever-increasing numbers of ERP gantries, rising fuel costs and traffic congestion, vehicle owners also find it increasingly difficult to find parking lots in shopping centres and public carparks during peak times – and now even at their home, especially if they have more than one vehicle.

While HDB estates can accommodate increasing demand for carpark lots by building multistorey carparks and designated lots for residents, private condominiums are constrained to cater to such demand by residents.

The lack of carpark lots is more severe in new condominiums. Carpark lots do not yield profits for developers. Developers should disclose the number of carpark lots in their marketing brochures as they do with other facilities.

For instance, the recent weekend launch by City Developments of the 77-unit Shelford residence condominium in Bukit Timah revealed, only after inquiry, that 81 lots (including two handicapped ones) are available. Each unit is technically ‘allowed’ to have one car and visitors with cars are not welcome. With most units costing between $2 million and $4 million, it is not unreasonable to assume that buyers who can afford them may own at least one vehicle, especially if their units are larger (with more people living there), such as the penthouses.

One may find many similar situations to varying degrees in larger and higher-profile launches such as The Sail, River Edge, St Regis and Dakota.

Buyers of new condominiums, especially those who buy multi-million-dollar larger units, beware. One may be ‘allowed’ to have only one car, and family and friends may have to take public transport when visiting.

Source : Straits Times – 14 Jul 2008

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