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Archive for July 28th, 2008

Laguna Park vandals strike again

Posted by luxuryasiahome on July 28, 2008

Resident’s usual vigilance slips, and car is hit

Most vandalised cars belong to those yet to sign collective sale deal.

The Laguna Park car vandals have struck again: At least two more cars have been hit, including one which had already been targeted before.

A brand-new Toyota Altis was found scratched last Saturday.

The other car, a silver Nissan Cefiro, understood to have already been sprayed with black paint last week, was also scratched on Saturday. Its owner confirmed these details but declined to be named.

The Straits Times reported last Thursday that several cars in the estate had been damaged – sprayed with black paint or a corrosive liquid, or scratched. Residents there are divided over putting the place up for a collective sale.

Residents of the 530-unit development in Marine Parade Road say the three latest attacks bring the total number of vandalism cases to at least nine in the last month.

Coincidentally, all but one of the cars belong to owners who have not yet agreed to the sale.

The owner of the Altis, Mr Lau Cher Chye, said he has been parking his three-month- old car near the security guard post at the condominium’s entrance as a precaution after reading the report about the spate of vandalism.

The 57-year-old financial adviser said: ‘My wife and I thought we would be targeted soon.’

True enough, it happened last Saturday afternoon – on the one occasion when the couple had parked their car away from the guard post. They had just returned from the supermarket at 3.45pm and had many bags of groceries to lug home, so they parked the car nearer their block, Mr Lau explained.

He added that since they were going out that evening, the car would be left there for only a couple of hours.

As it turned out, that was enough time for several gashes to be made on the doors on one side of the champagne-coloured car.

Like other affected residents, Mr Lau said he believed he became a victim because he did not put his signature down for the collective sale.

‘It is quite obvious. In one month, there are already so many cases, and most victims have not given their consent yet. Why such a coincidence?’ he asked.

Nothing like this has happened to him before in his 30 years there, he said.

As of last Saturday, close to 64 per cent of home owners had voted for the proposed sale, according to notices put up around the estate.

The sales committee has until the end of the year to garner the 80 per cent vote needed to proceed with the deal.

A distraught Mr Lau said: ‘We are very upset by this act of gangsterism. We love this estate. It’s been very peaceful all this while. That’s why we refuse to sign.’

He has made a police report but has not had repairs done to the car yet. He will also park his car near the guard post from now on, he said.

The estate’s management committee will hold a dialogue with residents this Saturday to discuss the vandalism problem.

Notices posted around the estate said the committee would look into installing closed-circuit television cameras, and added that the management took ‘a very serious view of the matter’ and would hand over offenders to the authorities.

Source : Straits Times – 28 Jul 2008

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Developer collaborates with Starck for luxury residential project

Posted by luxuryasiahome on July 28, 2008

Luxury-end private residences in Singapore are facing price pressures, and one developer hopes to get around that by having a famous brand-name designer work on its project.

Heeton Realty – a joint venture between Singapore developer Heeton Holdings and JP Morgan – is counting on the collaboration with a company co-founded by well-known French designer, Philippe Starck, to draw in the buyers.

It is hoping that this marketing strategy will help sales at its upcoming development that is located just outside the prime Orchard Road area at Grange Road.

Danny Low, COO & executive director of Heeton Holdings, said: “For people who want to buy a brand, it’s like buying a Mercedes Benz. If you want to buy a brand, you don’t care what the market is. You want to be the first to own it and you must remember that Philippe Starck is a worldwide-acclaimed name.”

The 28-unit development will have its interiors, common areas and landscaping exclusively designed by a company co-founded by Philippe Starck.

The collaboration with the French designer is costing Heeton Realty more than US$2 million. But developer believes it will be able to sell its units at a 15 to 30 per cent price premium over other properties in the area, despite the current slow sales in the high-end residential sector in Singapore.

Heeton Realty said it has seen strong interest from at least two serious buyers at this stage.

The joint venture is also planning for more developments here in the year ahead.

Bryan Southergill, executive director and head of Asia Real Estate, Global Special Opportunities, JP Morgan, said: “There’s been some consolidation recently. We’ve got a global credit crisis unfolding right now.

“But in the long term, with the IR (integrated resorts), gaming, Marina Bay, F1, and everything else Singapore has going for it, there will be strong and stable demand for projects.”

Construction on the luxury residential project will begin late this year or early 2009.

Source : Channel NewsAsia – 28 Jul 2008

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Private equity real estate funds in Asia still booming

Posted by luxuryasiahome on July 28, 2008

They raised more cash this year and helped stave off property slump

The global financial turmoil has deflated the private equity boom in Asia but regional real estate buy-out funds are still going strong.

Private equity real estate funds – many holding Asian assets – raised 32 per cent more cash in the first half than in the same period a year ago.

This contrasts with Asian private equity funds, which have seen the amount of funds raised slump 21.5 per cent in the first half of this year to US$19.2 billion (S$26.1 billion), according to Asia Venture Capital Journal.

Private equity funds typically invest in private companies or take control of listed firms. Private equity real estate funds invest in property and may get involved in development through joint ventures with local players.

Recent data suggests that the funds are sufficiently cashed up to keep investing in regional markets, including Singapore, and so help stave off a severe property slump, said some analysts.

In the first five months of this year, 13 new Asia-focused private equity property funds were set up and raised a combined US$13 billion, said research firm Private Equity Intelligence (Prequin).

For the full year, Prequin said 78 funds are looking to raise US$81 billion for Asian property investments.

Property funds were particularly active in Singapore in the first half of last year, but the market has since quietened, noted Mr Nicholas Mak, Knight Frank’s director of research and consultancy.

The funds helped drive up prices in high-end residential property as well as certain commercial segments. They also bought tens of units – or even whole buildings – at bulk discount prices, said a Singapore-based fund manager.

There had been some concern that the credit crunch and the slowing property market here would prompt such funds to cash in their investments, and so bring down prices further, he noted.

But these fears look unfounded as the recent fund-raising numbers suggest that private equity real estate funds are not suffering from a drastic drop in liquidity.

‘Real estate private equity is still going pretty strong,’ said Mr Mark Pawley, chief executive of Singapore-based private equity firm Oxley Capital. He noted that Singapore was a ‘hot market last year’ for private equity players, and certain funds may still allocate fresh funds here – albeit much less than last year.

For instance, two new Asia-focused entities – the US$3.9 billion fund raised by Macquarie Bank unit MGPA and Keppel Land’s US$1.2 billion fund – will allocate part of their portfolios to Singapore.

Oxley Capital is still looking at some opportunities for relatively ’small deals’ in residential units here.

It will also help to grow the portfolio of the Cambridge Industrial Trust (CIT), an industrial property Reit. Oxley has a stake in the manager of CIT.

However, some funds may exit their Singapore investments if they have hit their profit targets or they may shift their focus and strategy to other markets such as Australia, Japan and Vietnam, said Mr Pawley.

Funds are looking to snap up so-called ‘distressed assets’ – properties whose prices have plummeted as their developers may have encountered financial difficulties – in these markets, which have been affected by a housing slump.

Kim Eng analyst Wilson Liew noted that volatile markets have prompted some Singapore property players to raise funds from institutional rather than retail investors.

Fraser & Neave’s unit Frasers Hospitality, for instance, has said that it is not the right time to list a real estate investment trust (Reit). Instead, it is tying up with private equity players to buy serviced residences.

This year, CapitaLand raised US$1 billion for its Raffles City fund focused on property in China cities, and a further 500 million yuan (S$100 million) for the Citic CapitaLand Business Park fund.

Other Singapore-based players involved in real estate private equity include ARA and Pacific Star.

Source : Straits Times – 28 Jul 2008

Email lushhome@gmail.com for more information on an Asia Hotel Private Equity Fund.

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Paragon to convert 3 floors of offices to medical suites

Posted by luxuryasiahome on July 28, 2008

Move spurred by strong demand in healthy sector, say market watchers

PARAGON Shopping Centre, known as much for its medical centre as for its upscale shops, is allocating more space for medical suites.

The mall is converting three more floors of office space into medical suites, as and when the particular office leases expire.

‘It is a reaction to the strong demand for medical suites,’ said Ms Linda Kwan, general manager of the mall.

The mall, which is right next to Mount Elizabeth Hospital, already has 12 floors of medical suites after it added one floor last July.

Before that, it had converted four floors of office space into medical suites over a two-year period. All its suites, which are for lease only, have been fully let.

‘The medical industry here continues to be healthy. The fact that landlords are looking to convert offices to medical suites bears this out,’ said property consultancy firm CB Richard Ellis (CBRE).

‘Capital values for medical suites are still holding firm despite the current market uncertainty.’

Medical suites are among the most expensive properties to purchase here on a per sq ft basis. A few transactions at Mount Elizabeth Medical Centre were recorded above $4,500 psf in the second half, compared with deals at below $4,000 psf in the first half.

One deal there, for a 657 sq ft suite, set a record price of $5,292 psf in March.

But not all medical suites command the same price.

While the Mount Elizabeth Medical Centre has aged, it still commands a premium owing to its branding and central location.

At nearby Lucky Plaza, a firm linked to Hong Leong Group – which owns 56 medical suites there – has sold eight out of 13 put on sale since last April. The most recent deal was done in April at $3,200 psf.

‘The location is superb but it has been an uphill task for them because of doctors’ reaction to the image of the mall,’ said a market watcher.

At Novena Medical Centre, suites have sold for more than $2,500 psf, up from their launch price of $1,600 psf in 2005.

Asking rents for medical suites are holding well in general, with Paragon commanding around $14 psf to $16 psf, up from $10 psf to $12 psf more than a year ago.

‘We believe rents will remain firm in the short to medium term,’ said CBRE Research. Given limited supply, values of medical suites will hold up well, it added.

More players are entering the market. Far East Organization, which owns Novena Medical Centre, has said it plans to have 64 more clinics at its new hotel in Sinaran Drive by 2010.

Over at Farrer Road, a group of doctors and investors has teamed up to build a ‘mediplex’, with a hospital, hotel and specialist medical centre rolled into one. It will house 210 medical suites.

Source : Straits Times – 28 Jul 2008

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