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Archive for July 18th, 2008

Ascendas Reit Q1 income up 16%

Posted by luxuryasiahome on July 18, 2008

Ascendas Real Estate Investment Trust (A-Reit) on Friday posted a 16 per cent rise in quarterly distributable income, boosted by higher rentals at its business park properties.

A-Reit, Singapore’s second-biggest property trust by market value, earned distributable net income of $51.8 million (US$38.3 million) or 3.89 Singapore cents per unit, for its fiscal first quarter ending June 30.
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This compares with $44.7 million in distributable income in the same period a year ago.

A-Reit competes against commercial and industrial property-based trusts Mapletree Logistics, CapitaCommercial, and Cambridge Industrial among Singapore-listed Reits.

A-Reit is managed by Ascendas Funds Management Ltd, a wholly-owned unit of Singapore government-owned industrial park developer Ascendas. — REUTERS

Source : Business Times – 18 Jul 2008

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Retailers at Changi’s T3 say business bad, 6 months after opening

Posted by luxuryasiahome on July 18, 2008

With more than 100 retail establishments, Singapore Changi Airport’s Terminal 3 is touted as the latest shopping destination for ‘mall-crazy’ Singaporeans. But six months since its opening, retailers said business is suffering.

Changi Airport’s T3 public area has 31 outlets. Retailers said they are barely making ends, though takings over the weekends may be slightly better.

Channel NewsAsia checked on some 15 stores. Most did not want to speak on camera but all said they have been struggling to meet overhead costs.

Some shops said takings have dropped by up to 70 per cent, compared to when T3 first opened early this year. If this continues, some said they may not renew their lease, which lasts for three years.

Mohd Fadly Mohd Nor, Retail Supervisor, Outdoor Lifestyle, said: “After the first two months of Terminal 3 opening, the crowd has died down a bit. Maybe because the novelty is not there anymore.”

Karen Seow, Retail Supervisor, Helen Accessories, said: “Some of the things like clothing or shoes, we don’t have it here. Actually, there’s not much… shopping (variety) here.”

Some Singaporeans agreed that T3 is not a retail haven. One shopper said: “I guess there’s a lot more improvement to be made. You can’t get much variety here.”

Retailers said another problem is the mall’s layout and that is the reason why many people are unaware of several shopping clusters at T3.

The authorities put the slowdown to several factors, including retailers setting too high an expectation when they tendered for their lease and the fact that pegging an airport as a shopping destination is a new concept in Singapore.

Foo Sek Min, Senior Director, Airport Management Group, Civil Aviation Authority of Singapore, said: “This is something new to us and the tenants. It’s not exactly like a typical shopping mall.

“So we really need to understand what people are buying and what they are not buying. We will work with the tenants and we want to help them.”

So far, the authority has extended rental assistance for half a year, starting this month, and it is hoping that things will perk up for both retailers and shoppers. – CNA/vm

Source : Channel NewsAsia – 18 Jul 2008

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The Wharf Residence

Posted by luxuryasiahome on July 18, 2008

Location: Tong Watt Road, off Mohd Sultan Road
Tenure: 999 years leasehold
Expected Completion: March 2013
Site Area: 76, 956 sq ft
Plot Ratio: 3.8
Description: 4 tower blocks of 10/14/15/23 storey and 13 retrofitted houses
Total Units: 186

Unit Types:
2 bedroom ~ 1012 – 1163 sqft, 110 units
3 bedroom ~ 1313 – 1733 sqft, 54 units
4 bedroom ~ 2207 sqft, 4 units
Penthouse ~ 2745 – 5339 sqft, 5 units
Houses ~ 4478 – 4930 sqft, 13 units

Special Feature: Situated on high ground, there are 13 Vintage Houses conserved in their entirety, providing a pleasant contrast to the contemporary structure of the apartment blocks sitting behind. Apartments are furnished with branded kitchen & appliances

Facilities: sky terrace on the 24th floor, with outdoor cooking pavilion, overlooking the breathtaking city skyline.

Contact us at info@lushhomemedia.com or +65 9631 8037 for appointment or for more information.

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Landmark en bloc ruling

Posted by luxuryasiahome on July 18, 2008

Judge sets out role of Strata Titles Board and which of its findings can be challenged

IT IS a situation that may apply to some en bloc deals: The selling price could have been higher if the sales committee or its agent had tried harder to secure a better deal.

In the case of Horizon Towers, a potential buyer was even standing by with a higher price than the one that was eventually chosen.

But that cannot be reason enough to disallow an en bloc sale, according to Justice Choo Han Teck as he brought a protracted saga to an end.

In a landmark decision, the judge set out the role of the Strata Titles Board as well as which of its findings can be challenged, and which ones cannot.

When it comes to price, as long as the STB finds that a purchase price is fair, which would make it a “finding of fact” in legal parlance, it would have fulfilled its duty and is entitled to approve an en bloc sale.

Minority residents at Horizon Towers who argued that the $500-million sale to Horizon Partners Private Limited (HPPL) was done in bad faith – as evidenced by Vineyard Holdings’ higher offer of $510 million :- had failed to prove their case.

Justice Choo found “no error of law” and said the High Court “cannot and will not” interfere in findings of fact made by the STB.

“Whether it was the right time to sell, or that the sales committee ought to have made a little more effort to persuade the purchaser to offer more, are not crucial matters that oblige the STB to withhold approval.

“Nor would it be the concern of the STB that some, or all, of the appellants might have consented had the Vineyard offer been made known to all of them,” he said.

If the STB were to make such enquiries, it “would never get its job done within the time limited”.

The minority owners had appealed to reverse a Dec 7 decision by STB to approve the sale. But if residents believe that the sales committee had “deliberately or negligently” not pursued a higher offer, resulting in a financial loss to them, the recourse is through litigation in the courts, said Justice Choo.

“It is necessary for this point to be made, not to encourage further litigation, but to emphasise that a subsidiary proprietor who does not wish to sell his unit can only object to the en bloc sale on such grounds as the relevant statutes allow,” he said.

And, the statutes do not allow the STB to deal with “allegations and counter-allegations against parties” as its tribunal hearing does not give such parties “the full recourse of trial to defend themselves”.

He concluded that all sides were treated fairly in this deal as “fairness requires only that the rules and regulations of each en bloc deal to be properly and duly administered”.

Source : Today – 18 Jul 2008

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JLL predicts up to 4.5% dip in typical prime district rents

Posted by luxuryasiahome on July 18, 2008

RENTS and resale prices of housing in the central and prime districts could be hit this year and next depending on the crunch in the US market, says Jones Lang LaSalle (JLL).

In the worst case scenario, the real estate consultancy firm projects a 3.5 to 4.5 per cent drop in rents in the typical prime districts by year-end. ‘Compared to recent rental rises, this remains a relatively small decline,’ said JLL’s managing director in South-east Asia and Singapore, Chris Fossick. The central districts could experience a bigger 5 to 7 per cent drop in rents in 2009.

The anticipated completion of some 15,000 units between 2008 and 2009 is likely to cause rents to ease, as new islandwide supply is likely to surpass the average 10-year take up of 6,600-6,800 units, JLL said in a statement yesterday. Most completed supply could appear in the central districts.

Average resale prices in the central districts could ease about one per cent by 2009, while prices in the luxury prime districts could dive 11-13 per cent.

Mr Fossick referred to the forecasts as ‘more of a worst-case scenario’ should the US market not pick up soon. He said that sentiment will improve once US housing shows signs of recovery. Singapore’s fundamentals are attractive to investors and demand will return when uncertainty clears, he added.

Investors might then realise that ‘there is less supply now than we thought there was’ – and prices may rise again.

Taking a medium to longer-term view, Mr Fossick said: ‘We are seeing a dramatic fall in potential future supply in Singapore due to a stall in collective sales.’

JLL said that there were only two transactions worth $55.3 million in the first half of this year, compared with 51 deals worth $9.33 billion in the same period last year.

Mr Fossick said that there is also less supply from the confirmed list of the Government Land Sales Programme for the second half of the year.

Prime districts are already seeing slightly weaker rents as expatriates with lower housing budgets move to non-prime areas. JLL data showed that in the first half of the year, luxury prime rents fell one per cent and typical prime rents dropped 2 per cent.

Properties in the central districts in turn became more popular for leasing. Average rents there rose 11 per cent and surpassed those of typical prime properties for the first time in H1 this year.

JLL data also showed average resale prices softening in some areas. Luxury prime property prices eased 4.9 per cent to $2,595 per square foot (psf) in the first half of the year, while central district prices eased 0.5 per cent to $1,020 psf.

The shift of rental demand from the prime to central districts has sustained investor interest in central district property, according to JLL.

The mass market stood out with 3 per cent growth in resale prices to around $690 psf in H1, and JLL projected that prices could stay at this level in 2009.

Source : Business Times – 18 Jul 2008

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Prime residential rents could fall 4.5% by year end

Posted by luxuryasiahome on July 18, 2008

RESIDENTIAL rents in Singapore’s prime districts could drop by 4.5 per cent by year end, amid fears of a longer-than-expected downturn in the United States.

Property consultant Jones Lang LaSalle (JLL) said the high rentals seen in the Republic’s prime districts last year are now facing downward pressure.

Prime properties are typically located in districts 9 to 11 with units ranging in size from 500 to 2,000 sq ft.

JLL South-east Asia and Singapore managing director Chris Fossick said in a press conference yesterday: ‘Expatriates with lower housing budgets are moving out to the non-prime market, causing typical prime rentals to ease marginally in the first half of this year.’

According to JLL, luxury prime property rentals softened by 1 per cent in the year-to-date while typical prime rents weakened by 2 per cent.

Said JLL: ‘With the US economy facing the potential of a longer downturn than expected due to the sub-prime woes, credit crunch and rising inflation, market sentiments continue to weaken in Singapore.

‘The level of residential collective sales has dropped to only two transactions worth $55.3 million in the first half of the year compared with51 transactions worth some $9.33 billion over the same period last year.’

JLL forecasts that average resale prices in the central district are expected to ease about 1 per cent year-on-year by next year while mass-market resale prices will most likely maintain current levels.

Meanwhile, prices in the luxury prime market are expected to contract the most, falling some 11 to 13 per cent year-on-year next year.

However, Mr Fossick believes that once the US housing crisis passes, a recovery in this region will be swift given the sentiment-driven nature of the industry.

‘The uncertainty in the US is unlikely to clear up in the next six months, but if things begin to look up after that, we could see a rapid turnaround here as soon as early next year.’

Source : Straits Times – 18 Jul 2008

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Reliving the kampung spirit in Seletar Hills

Posted by luxuryasiahome on July 18, 2008

SELETAR Hills Estate today is that residential pocket comprising rows of bungalows, terraced or semi-detached houses with gardens, interspersed with newer condominiums.

The residents’ committee there, the Seletar Hills Estate Residents’ Association (Shera), celebrates its 40th anniversary tomorrow.

With anniversaries tending to make people wistful, some of the estate’s old-timers are looking back on the past, hoping to recapture the old spirit of neighbourliness.

Retired engineer George Pasqual, 79, who sits on the Shera committee, said: ‘We thought nothing of going to each other’s houses and standing by the gates to chat, but now relationships have become more distant.’

He added that those of the newer generation ‘no longer need to depend on one another’.

But Shera is trying to rebuild that kampung spirit.

It already organises gatherings and excursions and puts out a quarterly newsletter, Shera-News, which keeps everyone informed of estate activities, gives news of estate improvements and publishes snippets of history.

In 2005, Ms Yippy Chew, a retired physiotherapist and residents’ committee member, started a ‘greening’ movement by going door-to-door to urge residents to transform the pavement outside their homes into garden plots.

More then 170 households responded. Today, these plots have not only brought more nature to the estate, they have also set new friendships blooming.

Another resident has set up a heritage blog for the estate.

Back in the TV-less, computer-less days, when the rudimentary bus system made travelling elsewhere inconvenient, and there was no Central Expressway to the city, neighbours got together more.

For their children, the rubber plantations that used to cover Seletar Hills for a good 50 years from 1910 were a playground.

As a child, Mr Pasqual visited the area with his friends to net fighting fish in the ponds in the rubber plantations, play in the stream along Yio Chu Kang Road or shoot down mangoes and guavas with home-made catapults.

The rubber plantations, all 3,200ha of them, belonged to the Bukit Sembawang Rubber Company and stretched from Seletar South to Ang Mo Kio, and from Serangoon Gardens to Ponggol.

During the Japanese occupation, some plantation houses were used as barracks; some housed imprisoned British prisoners-of-war.

From 1949, Bukit Sembawang started developing houses in the area, so the rubber plantations and farms slowly disappeared.

When people started moving into the area, their friends were incredulous at their choice of these boondocks.

It did not help that the stench from the pig farms across the road – where Sengkang now is – were a constant.

Around the time when Mr Pasqual moved in, some 40 years ago, the parish priest of the Catholic Church of St Vincent De Paul in the area thought it was time to foster neighbourliness.

Under the leadership of Father J. Troquier, Shera was born and its first committee set up in 1968.

It had its work cut out for it: Safety was a concern, as were better street lighting, pest control, better roads and a transport system.

Long-time resident and retired principal Eugene Wijeysingha, 74, said he was nearly a victim of a robbery along the estate’s dark streets in 1959.

Two men pointed a sharp object at his back, but he just swung his bag at them and they fled.

He signed up as a member of the first Shera committee to do his bit to improve the estate.

The association has been helmed by ordinary folk and more well-known persons – including the late Mr Ong Teng Cheong in 1972, the same year he entered politics. He eventually became Singapore’s fifth president and first popularly elected one.

Among the residents in the estate’s estimated 3,000 households, retired teacher Maureen Lim, 61, lays claim to having lived there the longest – 48 years.

She remembers the days when the estate was served only by Yio Chu Kang Road, and one bus service.

Four generations of her family, including her own parents, are ‘Seletarians’. In 1960, they were one of three Chinese families along her street, with the other 40 houses occupied by Britons working at the nearby Seletar Airbase.

Most of the pioneering batch of residents have either moved away or died.

But some shopkeepers are still around after 30 or more years, like the neighbourhood’s grocers, food-stall holders and hairdresser.

Mr Loong Heng Goon, 58, runs a 36-year-old traditional laundry shop, which he took over from his father. He still uses an old-style 10-pound iron to make those perfect, knife-like pleats on clothes.

Some of his customers go way back, including those who have moved away but still go to him.

The ‘bread man’ is also still around. Known to residents only as Mr Foo, the now 69-year-old has progressed from selling bread on a bicycle to doing it in a van. He also peddles snacks, eggs and drinks.

But even as the residents in Seletar Hills estate go about reawakening the kampung spirit of old, the outside world is encroaching.

Neighbouring Sengkang West has been earmarked for a recreation hub, and an aerospace park looms at the Seletar Airbase.

‘I think it may be an uphill task building that kind of close kampung-like feeling now,’ said Mr Wijeysingha.

The anniversary will be marked with a dinner and dance at the Seletar Country Club for 280 past and current residents tomorrow.

Source : Straits Times – 18 Jul 2008

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CMT still keen to acquire; DPU beats forecast

Posted by luxuryasiahome on July 18, 2008

THE current economic landscape could provide rich pickings for some.

Chief executive of CapitaMall Trust (CMT) management Pua Sek Guan noted that when the market is ‘very good’, it is difficult for acquisitions to be made. ‘Today, there are deals to be done,’ he said.

While Mr Pua would not say if CMT was looking at any ‘deal’ in particular, he did say that single asset owners of retail properties may want to ask themselves: ‘Is this your long-term business?’

He said: ‘This business is a skill-set business. You need a platform to innovate.’

Mr Pua was referring to the CMT’s programme of proposed asset enhancement initiatives (AEI) for assets including the Atrium and Plaza Singapura, Lot One Shoppers’ Mall and Bugis Junction.

CMT expects its AEI capital expenditure outlay for 2008 to be about $174 million, up from $168.6 million in 2007. But CMT expects incremental net property income of about $25 million from AEI completed by end-2009.

Mr Pua was speaking at a press conference to announce CMT’s Q2 2008 financial results which saw net property income of $83.6 million, up 24.7 per cent on a year-on-year basis.

Distributable income for the quarter was $58.6 million. This represents an annualised distribution per unit of 14.16 cents, up 13.2 per cent from the previous corresponding quarter.

Distribution per unit (DPU) for the quarter is 3.52 cents, 1.7 per cent higher than CMT’s forecast.

Gross revenue for Q2 was $125.6 million, an increase of $21.7 million or 20.9 per cent. This was attributed to an increase in revenue of $11.1 million from the three malls under CapitaRetail Singapore (CRS), which contributed three months of revenue in Q2 2008, against one month in Q2 2007.

CMT’s other malls accounted for another $7.6 million increase in revenue mainly due to new and renewal leases as well as higher revenue from IMM Building, Plaza Singapura and Bugis Junction. Its interest in Raffles City accounted for another $3.0 million.

CMT, which tracks gross turnover of tenants, said that tenants’ sales growth outpaced the increases in gross rent. Citing Plaza Singapura as an example, it said that sales increased by 5.1 per cent in 2008 over 2007 to hit $97 million, based on a sample size of 143 tenants. Gross rent increased by 2 per cent in the same period.

Still, one casualty appears to be John Little at Plaza Singapura. A spokesman for John Little confirmed that it will close its Plaza Singapura outlet. However, it is understood that the company will take up a smaller space there for a possible new brand.

Source : Business Times – 18 Jul 2008

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CapitaMall Trust to offer bumper payout

Posted by luxuryasiahome on July 18, 2008

UNITHOLDERS of CapitaMall Trust (CMT) will receive a bumper payout for the second quarter, with distributable income up 20 per cent to $58.6 million from last year.

The trust will pay out 3.52 cents per unit for the three months ended June 30, compared with 3.12 cents per unit last year.

CMT said its portfolio performed better than forecast, mainly due to stronger rentals achieved on new and renewed leases.

Consultant Jones Lang LaSalle and CapitaLand Research also project CMT’s rental rates to increase between 16.1 and 17.5 per cent by 2012.

This is despite record inflation threatening a further decline in retail spending and rising operating costs for retailers.

CMT, listed in 2002, is the first real estate investment trust (Reit) to report its second-quarter results. With a current asset value of $7.2 billion, it is the largest Reit in both asset size and market capitalisation in Singapore.

It is also on track to reach its target asset value of $9 billion by 2010 through new acquisitions and enhancements to its current pool of shopping malls.

‘Asset enhancement has grown to become a key contributor to CMT’s distribution per unit and net asset value growth,’ Mr Pua Seck Guan, the chief executive of the Reit’s manager, said yesterday.

Upgrades to enhance its retail malls are expected to continue into 2010.

In May, CMT said it would pay the Government $840 million for The Atrium@Orchard. It said the integration with the adjacent Plaza Singapura would require an additional $150.1 million in capital expenditure.

CMT units rose 3 cents to $3.07 yesterday.

Source : Straits Times – 18 Jul 2008

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$3b Farrer condo boasts sensuous, curvy towers

Posted by luxuryasiahome on July 18, 2008

Renowned architect Zaha Hadid behind their design; project to be launched in 2009

PROPERTY giant CapitaLand has unveiled the ‘branded’ upmarket designs for a $3 billion residential project in Farrer Road that it aims to launch next year.

UNIQUE DESIGN: The as-yet-unnamed condo’s 36-storey towers will feature a series of sensuous lines not commonly seen in residential developments in Singapore. The penthouse units (left) in the project offer good views. The project will be launched in the first half of next year. — PHOTOS: CAPITALAND

The as-yet-unnamed condominium boasts a series of sensuous lines that are not commonly seen in residential projects in Singapore, while the curving towers give an ultra-modern feel without the harsh edges present on many blocks.

It is all very much in the recognised style of architect Zaha Hadid, the first female recipient of the coveted Pritzker Architecture Prize.

This is her first condo project in Singapore but she has designed two bungalows for niche developer Elevation Developments.

Past Pritzker Architecture Prize winners include Mr Frank Gehry, Sir Norman Foster and Mr Rem Koolhaas.

The seven 36-storey blocks on the sprawling 838,488 sq ft site will hold about 1,500 homes. There will also be six pairs of unique semi-detached houses.

CapitaLand is developing the 99-year leasehold plot with three partners. Hotel Properties and a Morgan Stanley Real Estate fund will each hold 22.5 per cent, while Wachovia Development will take 20 per cent.

These parties, which borrowed a whopping $1.996 billion for the ambitious project, yesterday held a signing ceremony for the loan with their bankers at the Four Seasons Hotel.

It is the largest syndicated residential property development loan ever arranged in Singapore and comes amid a slow housing scene and tight credit markets.

CapitaLand said the deal comprises a $1.362 billion term loan, $500 million of revolving credit and $133.9 million in bank guarantees.

The collective sale deal for the former Farrer Court condo site was inked in June last year at $1.338 billion, or up to $783 per sq ft (psf) of potential gross floor area.

Ms Patricia Chia, chief executive of CapitaLand Residential Singapore, said the project’s break- even cost is around $1,350 psf to $1,450 psf.

The condo will be launched in the first half of next year.

Developers generally see no need to hurry given the slow property sector, falling share markets and continuing bad news from the United States.

CapitaLand chief executive Liew Mun Leong said at the signing ceremony that the past few months have been challenging, but the business world must go on, notwithstanding the current economic turbulence in the US.

He said bankers, developers, businesses and potential partners could come together to exploit opportunities that increase during bad times.

Mr Liew added later: ‘Sentiment has been affected in the US, but I think the fundamentals in Asia – in terms of economic growth, the demand, urbanisation – are still very strong.’

Source : Straits Times – 18 Jul 2008

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