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Archive for September 5th, 2008

Top condo units vie for F1 pie

Posted by luxuryasiahome on September 5, 2008

EXPENSIVE rates and full bookings at Singapore’s more popular five-star hotels are driving Formula One tourists to look elsewhere.

Premium rooms are available at cheaper rates – not across the Causeway or in neighbouring Bintan island – but right in the heart of town.

The Hotel Alternatives (THA) claims it is the first known company here to capitalise on the luxury-vacation rental concept. It has 50 fully-furnished apartments with en-suite bedrooms nestled in various condominium estates in Tomlinson Road, Somerset and LeonieHill – the prestigious districts nine and 10.

With the world’s first F1 night race kicking off on Sept 26 and 40,000 tourists expected for the three-day event, THA hopes to capture spillover visitors, like Mr Sonny Alo, who have been unable to secure rooms at popular five-star hotels.

The Ferrari fan from Cebu City in the Philippines wanted to book rooms at the Meritus Mandarin this month, but was told that the five-star hotel was full.

The 38-year-old moneylender then turned to THA. He has booked a room in Horizon Towers for US$220 (S$315) a night from Sept 26 to 29. In comparison, hotel rates can be as high as $1,500 a night, with a minimum stay of three to five nights.

“I’m very used to five-star hotels and I wanted to stay in Orchard Road because my wife wants to go shopping while I’m at the race,” said the Kimi Raikkonen fan in a phone interview with my paper.

Mr Anook, 57, a deputy commissioner from Delhi, India, will also be staying at Horizon Towers with four of his family members from Sept 22 to 29, at a total cost of $3,300.

He had chosen to visit Singapore during this period because his teenage son and nephew are “into F1 car racing”.

THA, established in 2005, belongs to Les Vacances Maison Haute Couture International, which is in turn owned by a group of angel investors. The company also deals in properties in Shanghai and Indonesia. Currently, 56 out of the 83 boutique rooms set aside for F1 tourists have been taken up.

THA’s apartments belong to home-owners who are not utilising their properties. They are located in potential en-bloc estates like Horizon Towers and Elizabeth Heights.

Thirty apartments have been rented out to expatriates on long-term leases, and the remainder are available for short term stay. These are highly popular with Indonesian tourists, particularly during the Great Singapore Sale.

The vacation-rental arrangement makes financial sense to en-bloc property owners for obvious reasons: While waiting for en-bloc deals to be sealed, they might as well make extra cash from apartments they have already vacated.

Home-owners get a 50 per cent cut of what tenants pay THA.

Tenants enjoy free Internet access and over 30 channels of digital cable TV, on top of the usual condo facilities.

Mr Anook said he saves at least 20 per cent by opting for a huge family room with THA than if he had taken two hotel rooms in the Orchard Road belt.

He said: “It’s not just about the price, as I’m aware that there are cheaper hotels in areas like Geylang. It’s the location.”

Source : My Paper – 5 Sep 2008

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Lehman weighs real estate spinoff: report

Posted by luxuryasiahome on September 5, 2008

Lehman Brothers Holdings is considering a plan to put some $32 billion of its commercial real estate and mortgage assets in a new company and spin it off, Bloomberg reported on its website on Thursday.

Under the plan, similar to a good-bank-bad-bank model, Lehman will put in about US$8 billion of equity in the new company, the news agency said, citing unnamed sources.

The remaining US$24 billion will be lent to the new company by Lehman or outside investors, it said. Shares of the company would be owned by Lehman’s current shareholders, it said.

The plan is one of several being considered, it said. Under another plan, Lehman would set up a company funded and run by outside investors to buy some of these assets, it said.

Lehman declined to comment.

Lehman, the smallest of the major US investment banks, has not detailed its plans, but according to sources, the bank is looking at various options, including seeking buyers for commercial mortgages and property on its balance sheet.

At the same time, it is weighing the sale of part or all of its asset management business, including Neuberger Berman, sources have said previously. It is also in talks with state-controlled Korea Development Bank over a possible investment in the overall business.

Earlier on Thursday, Fox-Pitt Kelton analyst David Trone wrote in a research note that Lehman Brothers should consider spinning off its commercial mortgage securities and loans portfolio to shareholders instead of selling it.

A simple spinoff of the commercial mortgage securities and loans portfolio would ensure that shareholders have the option of owning two entities or keeping only the core Lehman stock, Mr Trone said.

Source : Business Times – 5 Sep 2008

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Silchester ups stake in UOL to 8.05%

Posted by luxuryasiahome on September 5, 2008

UOL Group Limited said on Friday that major shareholder, Silchester International Investors Limited, has raised its stake in the property group to 8.052 per cent, from 7.001 per cent.

The change in stake follows a series of open market purchases.

Source : Business Times – 5 Sep 2008

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Zaha Hadid

Posted by luxuryasiahome on September 5, 2008

Building an Icon

British-based Iraqi architect Zaha Hadid is a force to reckon with. From the DNA-inspired sci-fi futurism of Singapore’s Biopolis to the deconstructionism of Cincinnati’s Contemporary Arts Centre, Hadid has created sculptures out of buildings. So when CapitaLand announced in July 2008 that the renowned architect will be designing its seven 36-storey apartment blocks worth S$3 billion on Farrer Road, many wondered what her next work of art will look like.

“Ms Zaha Hadid is one of the most sought-after international architects today. She was also the first woman to receive the prestigious Pritzker Architecture Prize in 2004,” said Patricia Chia, CEO of CapitaLand Residential Singapore on why she was chosen.

CapitaLand expects 50% of the buyers to be Singaporeans while the remaining 50% are likely to be international buyers.

Born in secularised Baghdad in 1950, Hadid came from an influential bourgeois family. Her father was a politician and economist who industrialised Iraq from the country’s oil revenues. He was also a co-founder of the Iraqi National Democratic and a leader of the Iraqi Progressive Democratic Parties. Her family fled the country when Saddam Hussein’s Ba’ath party came to power in 1963.

Hadid came to London via Beirut in 1972 where she studied at the city’s best architecture school, the Architectural Association (AA). She was awarded the Diploma Prize in 1977. She then became a partner of the Office for Metropolitan Architecture (OMA) where she taught at the AA with OMA collaborators, Rem Koolhaas (now a global superstar) and Elia Zenghelis. Hadid subsequently led her own studio at the AA until 1987.

Since then, Hadid has held the Kenzo Tange Chair at the Graduate School of Design, Harvard University and the Sullivan Chair at the University of Illinois, School of Architecture, Chicago. She also had guest professorships at the Hochschule für Bildende Künste in Hamburg; the Knolton School of Architecture, Ohio and the Masters Studio at Columbia University, New York. In 2002, she was made Honorary Member of the American Academy of Arts and Letters, Fellow of the American Institute of Architecture and Commander of the British Empire.

Despite her academic achievements, Hadid was always hungry to build and see her creations come to fruition. Academia was a phase she had to go through to realise her dreams.

Initially however, many weren’t quite sure what to make of her works. In 1982, for instance, when she won her first competition to replace the Peak Club in Hong Kong, many wondered if it could ever be constructed. Her gravity-defying creations complete with splinter-like structures baffled many who thought she was too ahead of her time. In the end, her design was never built but it did propel her name to international prominence.

“My ideas come from observation: of the site, of nature, of people moving in the city. Over the past thirty years, we’ve been working to articulate complexity with a new architectural language of fluidity inspired by natural systems, said Hadid on her design inspirations which span the entire spectrum of design – from large-scale urban architecture to interiors, furniture and exhibition spaces.

A decade later, Hadid has proven her detractors wrong with her innovative and out-of-this world architectural works, courtesy of her own firm, Zaha Hadid Architects. Her firm’s winning designs has gone on to grace cities around the globe and they include Kurfürstendamm, Berlin (1986), Düsseldorf Art and Media Centre (1992/93), Cardiff Bay Opera House, Wales (1994), Thames Water/Royal Academy Habitable Bridge Competition (1996), the Contemporary Arts Center, Cincinnati (1998), University of North London Holloway Road Bridge (1998), the Centre for Contemporary Arts, Rome (1999), the Bergisel Ski-jump in Innsbruck, Austria (1999), Placa de les Artes in Barcelona (2001), one-north master plan for Singapore’s Science Hub (2001), the Ordrupgaard Museum Extension in Copenhagen (2001) and the temporary Guggenheim Museum in Tokyo (2002).

Most remarkably, she made her mark in pop culture by designing a number of stage sets for the Pet Shop Boys 1999/2000 World Tour.

As we speak, her firm is currently working on a variety of projects in Asia. Her impression of Asian architecture is nothing short of fascinating.

“When I first visited Asia almost three decades ago, I was fascinated with the porosity of the developments. This language of urbanism encourages interaction with the layering of public spaces in mixed-use developments that follow the Corbusian model. Twenty years ago, around the world, there was an anti-urban trend that favoured suburban lifestyles over metropolitan lifestyles. Asian cities showed us that living and working within an urban environment that functions well is exciting and beneficial,” she enthused.

In Asia, her projects include designing the Guangzhou Opera House in China and the Guggenheim Museum in Taichung. Given her envelope-pushing architecture, designing those buildings whilst maintaining their Asian identity proved to be challenging.

“In Asia, certain analogical thinking makes sense to people – whereas in the West this is not so prevalent. For example, at our Guangzhou Opera House project, the concepts of pebbles and rocks at the side of the river are actually very meaningful to the people of the city. However, for us, this is more of a technique to articulate the relationship of landscape and object. So we are usually not thinking as a metaphor, but more in terms of an analogy – the landscape analogy,” explains Hadid.

Her firm tries to find middle ground by having a very open, formal and diverse repertoire whilst sticking to several guiding principles.

“Of course we are always interested in expanding our repertoire and doing different things in different contexts but there are some principles which we always adhere to. One of these principles is that we always attempt to embed a project into its context with a whole series of articulate relationships. We draw out features and lines from the context so that in the end there is the sense of the project being part of the surrounding local landscape,” Hadid added.

With CapitaLand’s yet-to-be-named residential project in the pipeline, Hadid is set to make another mark in Singapore.

“We approached Ms Hadid as we love her signature style of flowing lines and sensuous architectural silhouettes, which we felt would bring out the best in the Farrer site. It will allow us to create a distinctive high-rise development that would at the same time, stand proud against the skyline of a predominantly landed neighbourhood,” added Chia.

The mid to high-end development on Farrer Road is inspired by growth in nature and will offer residents lush views of Bukit Timah Hill, Singapore Botanic Gardens, MacRitchie Reservoir as well as Orchard Road’s city skyline. It is set to obtain its final Temporary Occupation Permit by 2013.

“We have been working in Singapore for almost a decade and the Farrer Road development is a continuation of our detailed research into the urban fabric of the city. The seven tower development on one of Singapore’s most prominent sites represents further exploration into the tower typology and our studies into organisational systems and growth in the natural world. The towers are subdivided into petals according to the layout of each level to form a series of diverse and distinctive towers,” Hadid disclosed on what to expect.

Hadid is currently Professor at the University of Applied Arts in Vienna, Austria. Her firm is currently on site at the “Central Plant Building” for BMW in Leipzig, Germany, the Contemporary Arts Centre “MAXXI” in Rome, Italy; the Ordrupgaard Museum extension in Copenhagen, Denmark and the “Phaeno Science Centre” in Wolfsburg, Germany.

Source : Property Report

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Backyard walls collapse in mudslide

Posted by luxuryasiahome on September 5, 2008

Walls, fences of two homes off Jalan Kayu affected in midnight incident after heavy rain

RESIDENTS in a private housing estate off Jalan Kayu scrambled for help after a mudslide brought the walls and fences at the back of their homes down late on Wednesday night.

While residents believe that construction work behind their homes could have caused the walls to collapse, the project’s engineer said the walls could be structurally weak. — ST PHOTO: DESMOND LIM

The mudslide that followed a heavy downpour that night left one occupant of a terrace house in Jalan Tari Serempi without the 2m-high wall and fence at the back and badly damaged the perimeter wall of another.

While the residents believe that the construction of a block of houses behind their homes could have something to do with the incident, the engineer and developer for the project pointed their fingers at the weak structure of the walls.

The Building and Construction Authority (BCA) has ordered construction works on the site to stop until further notice. An investigation is under way. A spokesman said the Qualified Person for structural works, or the project’s engineer, has inspected the site and ‘confirmed that the structural integrity of the houses had not been affected by the collapse’.

Madam Habsah Sultan, 50, a property agent who lives at 2, Jalan Tari Serempi, said there had been a lot of construction work going on since a month ago. ‘With the digging and the rain, the soil might have just given way,’ she said.

Her neighbour, Madam Toh Wong See, agreed, adding that in her 12 years in the neighbourhood, mudslides have never happened, not even during heavy rain.

Madam Habsah was awake when the walls collapsed around midnight.

She told The Straits Times: ‘I was still up when I heard a loud sound like a thunderclap at about 11.50pm. I thought it was the storm again but when I went to the back of the house, I saw part of the backyard area had given way and the wall and perimeter fencing had buckled.’

Madam Toh, 57, a housewife who lives with her son, his wife and their two young children, was watching TV at that time and ran to the backyard to see what happened. Her walls did not collapse but there was a 1m crack on a side wall near where the earth had moved.

Both women woke up their families, alerted the neighbours and rang the police. ‘Thankfully, no one was injured but who can be sure this would not repeat when it rains again?’ Madam Habsah said.

Both families were adamant about staying put. ‘The contractors and BCA officers came by this morning and told us the place is safe. But I just wish they would quickly repair the walls,’ Madam Toh said in Mandarin yesterday.

Mr Liauw Chin Lee, the 48-year-old developer for the construction behind their houses, said that repairs are under way. ‘It’s too early to estimate what the repair costs are, but the walls will be up as soon as possible,’ he said in Mandarin.

The authorities had told him that the walls should be up before any further construction could continue, he said.

Both Mr Liauw and the project’s design engineer, Mr Chua Hock Beng, felt that the rain and the walls were to blame.

‘The walls which had given way have been there a long time and weren’t built very well,’ Mr Chua said.

Even so, Mr Liauw said he would not argue about whose fault it was.

‘I am going to live here when the construction is completed and these affected people will be my neighbours. Thankfully, no one was hurt. I’ll just treat this as a costly expenditure to ward off misfortune.’

A geotechnical engineering expert told The Straits Times it appears that the wall could have collapsed after rainwater collected in the soil behind the wall, exerting pressure on it.

Professor Leung Chun Fai, from the department of civil engineering at the National University of Singapore, said: ‘This can usually be avoided if ‘weep holes’ are constructed in walls to allow the water to pass through. The holes will then have to be cleared frequently because leaves and other objects might block them over time.’

Source : Straits Times – 5 Sep 2008

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Protesters want KL hillside bungalow project halted

Posted by luxuryasiahome on September 5, 2008

Residents in suburb hand over papers to anti-graft agency alleging corruption

RESIDENT activism in a middle class suburb of Kuala Lumpur could force a RM400 million (S$167 million) development of 21 bungalows on a nearby hillside to come to a grinding halt, illustrating a rare combativeness among Malaysians in the wake of the March 8 general election.

On Wednesday, nearly 20 residents from Medan Damansara, a leafy, upper middle-class suburb of retired government servants and younger professionals, descended on the Putrajaya offices of the Anti-Corruption Agency to hand over papers alleging corruption on the part of City Hall when it allowed the developer permission to build on the slope. The ACA has promised to get back in three weeks.

The resident’s assertiveness has redefined the way hillside development is carried out in the capital and has put Kuala Lumpur’s powerful City Hall under siege from relentless media attacks and on the defensive.

Moreover, government lawmakers, who would have normally defended City Hall as a rule, are seemingly sympathetic to the residents in a bid to win popularity. The area, normally pro-government, swung heavily to the opposition in the March elections partly as a result of the unpopular development.

Meanwhile, the protests have put the developer – listed Selangor Dredging – in a bind. It paid RM58 million for the land and claims to have spent over RM30 million since in infrastructure work. The company, which even advertised the homes in Singapore, denies any wrongdoing, arguing that hillside development is common in places like Hong Kong.

The residents beg to differ, pointing out that the Cabinet of former prime minister Mahathir Mohamad banned development of any hillside with a gradient of over 30 degrees. The Medan Damansara slope is well over 39 degrees.

Development of the slope began in December last year but the residents continued protesting with their efforts intensifying after the general elections. In June, City Hall slammed the developer with a stop- work order after it determined that several by-laws had been contravened.

Since then, trees have fallen in the area followed by a massive landslide last week that nearly demolished two houses in the middle of the night.

‘Only then did everyone, including the mayor, come out to see the place,’ said Randhir Singh, one of the neighbourhood’s most vocal critics. ‘All of us snubbed him. Where was he when we needed him?’

The resident’s tactics have been effective. Following the stop-work order, they wrote to the 17 government agencies whose permission is required in any urban development, asking about the Medan Damansara development.

Five agencies replied, some revealing that certain approvals hadn’t been obtained for the development. These were the documents lodged with the ACA.

Even so, the residents aren’t completely hopeful that they will win out in the end. ‘Whatever the outcome, I think we have demonstrated one thing,’ said Mr Singh. ‘I don’t think City Hall will ever take Kuala Lumpur residents for granted again.’

Source : Business Times – 5 Sep 2008

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Serangoon Gardens: Lush mall to replace iconic complex

Posted by luxuryasiahome on September 5, 2008

IT MAY not be as iconic as the Capitol Theatre building, but to those who grew up in the north-east, a 50-year-old complex in Serangoon Gardens may hold just as many memories.

But come next February, the old Paramount Theatre complex – now known as Serangoon Gardens Village – will be torn down.

In its place, a new mall will rise.

Developer Edmund Chye, 45, whose late father owned the Paramount, promises to infuse the complex with greenery, including a 3,000 sq ft elevated ‘forest’, a water cascade and a sunken garden.

‘The whole theme will be quite lush,’ he said. ‘It will be like coming home to your own courtyard.’

The mall now houses a FairPrice supermarket and a mix of food and beverage outlets.

Slated for completion in the third quarter of 2010, the new complex is expected to cost $40 million.

Residents and businesses in the estate, which dates back to the 1950s, have mixed feelings about the redevelopment.

Technical officer Roger Tan, 59, said: ‘I’ve lived here for over 30 years. Paramount holds a lot of memories. But the place is rather old, so a more modern complex will be good too.’

Ms Anne Chia, 39, who owns eatery and pub Happy Daze in a shophouse next door, worries that business could dip during the construction period.

Insurance agent Patrick Tan, 45, who lives less than 50m from the site, said he is concerned about the noise, dust and traffic congestion.

Another long-time resident, service manager James Ang, 46, said he feels ’sentimental’ about Paramount, recalling watching movies there as a boy. ‘It’ll be nice if they can name the new place Paramount,’ he said.

Mr Chye said that is an option under consideration, admitting he is nostalgic as well. ‘My brother and I used to watch the movies from the projector room,’ he said.

The cinema closed in the early 1980s. The place was then occupied by a series of tenants, including Fitzpatrick’s supermarket, a skating rink, Burger King and appliance chain Electric City.

Today, the mall’s main tenants include DBS Bank, Coffee Bean & Tea Leaf and Cafe Cartel.

FairPrice, which has been there since the early 1970s, said it is excited about the redevelopment.

Managing director Seah Kian Peng said: ‘Over the years, we have built a close relationship with the community in Serangoon Gardens. Some of our staff have worked at the store for many years and have become familiar, friendly faces to many of the residents.

‘We certainly want to be back there and will try our best.’

The new complex will have a supermarket as an anchor tenant and a ‘gourmet floor’. Mr Chye said about 40 per cent of the space will be for food and beverage outlets. The rest will be taken up by the supermarket, shops, grooming outlets, spas and banks.

He said Chye Lee & Sons, a property development company he runs with his twin brother Edward, has received numerous inquiries about shop space from well-known firms.

The new mall will have two floors and a basement carpark twice the size of the current above-ground one.

The complex’s floor area will jump to 62,000 sq ft – from 39,600 sq ft – and its shop space will increase to 38,000 sq ft from 31,700 sq ft.

Mr Chye has picked home-grown DP Architects to design the new development and Knight Frank to market it.

Source : Straits Times – 5 Sep 2008

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Orchard Central duplexes split up

Posted by luxuryasiahome on September 5, 2008

Level 1 duplexes turned into single-storey units due to slow economy and lack of demand

GLOOMIER times appear to have taken a toll on the upcoming Orchard Central mall near Somerset MRT Station.

The mall will no longer house two-storey shops, or duplexes, on its ground floor as had previously been announced, the project’s developer Far East Organization has told The Straits Times.

Orchard Central, which has 14 storeys, will have restaurants with outdoor seating and a special “jewel box” – a glass-fronted shop suspended in mid-air. PHOTO: FAR EAST ORGANIZATION

These duplexes were intended to have been glitzy, eye-grabbing outlets likely to have been leased by top-notch brands.

Instead, the three duplexes planned for level 1 have been split into single-storey units and leased to retailers wanting smaller premises.

Industry watchers said demand for the higher-rent duplex stores is likely to have waned due to the economic slowdown.

Also, the area, considered by some to be the more downmarket end of Orchard Road, may lack the cache needed to pull in the large brands that are more likely to take those spaces, they said.

Orchard Central is one of three new shopping centres to go up in Orchard Road in more than a decade.

The 14-storey mall is slated to open early next year, and will boast underground shops, restaurants with outdoor balcony seating, as well as a special ‘jewel box’ – a glass-fronted shop to be suspended in mid-air outside the building.

When contacted, Far East said: ‘We had more demand for single-floor units, and we are happy to report that the key level 1 shops facing Orchard Road have been snapped up. We also decided to change the original plans as this would mean more shopping diversity and choices for our customers.’

It added that the mall has one more duplex unit, on levels 3 and 4, which has attracted interest but has yet to be leased out.

Ms Lau Chuen Wei, executive director of Singapore Retailers Association (SRA), said it is ‘not surprising if there is a lack of demand’ for the double-storey units.

‘A duplex would definitely require a higher rental commitment, which is, by and large, something that retailers find quite hard to commit to at this time.’

Property consultants The Straits Times spoke to said duplex stores have high visibility so landlords would ‘normally want a very high-end brand’ to occupy them.

‘If I were the landlord, I’d have to give it to someone who is really worthy of it,’ said one retail property specialist, who declined to be named.

‘If not, splitting a unit into two will get higher rental,’ he added.

Some observers also say the fact that several malls are springing up at about the same time has created more intense competition in the battle for the brands.

Previously, Far East had told The Straits Times that its ‘jewel box’ store, to be designed by renowned Egyptian-born industrial designer Karim Rashid, will ‘as its name suggests…be occupied by an upmarket jeweller’.

But Cupid Jewels, a home-grown firm specialising in lower-priced bling, has now confirmed its tenancy there.

It has four showrooms in decidedly less swanky locales – Clifford Centre, Harbourfront Centre, Novena Square and OG Orchard Point – but said it will rebrand itself as a more upmarket jeweller at Central.

In contrast, Ion Orchard, the other mall being built at Orchard Turn, has snagged glitzy labels like Cartier and Louis Vuitton to front its duplexes, as well as haute jewellers Harry Winston, Chaumet and Boucheron to occupy its first floor.

But industry experts also defended Orchard Central’s positioning, saying the area near the Somerset MRT Station is no less attractive than the strip nearer to the Orchard MRT Station.

Mr Danny Yeo, deputy managing director of Knight Frank, said: ‘It’s not that this part of Orchard Road does not have a draw, it’s just not a main draw for the high-end segment.’

‘The malls near Somerset are all internally connected to each other. And there are enough young people who will find that this side will provide a good alternative to the strip between Ion and Ngee Ann City. Now Orchard Road has two distinct and strongly positioned areas.’

And Ms Daisy Loo, head of leasing and consulting at Sandalwood Retail, said: ‘Mass market brands can have duplexes too. It doesn’t mean only luxury brands can afford a duplex, and it doesn’t mean a duplex is the only thing that will earn you top dollar.’

She added: ‘It’s part and parcel of business to rethink strategies and review plans when market conditions change. Decisions are always based on changes in demand and tenant requirements.’

Who’s setting up shop at the mall

ORCHARD Central is a glass-clad mall next to Somerset MRT Station. Of its 14 storeys, 12 are above-ground while two are basement-level.

Developer Far East Organization has commissioned Japanese design firm Super Potato to create four food levels to suit all budgets.

The first floor has been fully leased to retail tenants.

Its ‘jewel box’, to be suspended on the facade of the building, will house local jeweller Cupid Jewels. It is designed by Egyptian Karim Rashid.

Other confirmed tenants occupying Orchard Central’s 1.2 million sq ft of shopping space include:
~ Japanese eatery Ootoya
~ Kenko’s Fish Spa
~ Levi’s
~ Dockers
~ Lee Coopers

Homegrown multi-label boutique Tyan, which will stock Malaysian fashion ingenue Khoon Hooi for the first time in Singapore.

Source : Straits Times – 5 Sep 2008

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Three MI-Reit properties gain $1.3m in revaluation

Posted by luxuryasiahome on September 5, 2008

Revaluations raise carrying amount for portfolio to $554.1m from $553.6m

THREE properties under MacarthurCook Industrial Reit (MI-Reit) have gained $1.3 million in value from a year ago in the latest revaluation exercise.

MI-Reit’s manager, MacarthurCook Investment Managers (Asia) Ltd, yesterday released new independent valuations for seven industrial properties as at Sept 1. The value of four other properties remained unchanged from the previous year.

Together, the seven properties were valued at $227.6 million as at Sept 1, against $226.3 million a
year ago.

Their total book value as at June 30, 2008, was $227.1 million.

The revaluations have raised the carrying amount for MI-Reit’s portfolio to $554.1 million, up from $553.6 million reported on June 30, 2008.

MI-Reit has 21 properties in its portfolio – 20 in Singapore and one in Japan. Independent valuations for the remaining 14 properties will be obtained throughout the financial year.

For the first quarter ended June 30, MI-Reit reported a distributable income of $6.62 million, 68 per cent higher than in the same period last year.

This followed a 94 per cent increase in net property income to $9.12 million.

Distribution per unit (DPU) rose 55 per cent year-on-year to 2.35 cents in 1Q09. In a press release last month, MacarthurCook Investment Managers (Asia) said that it expects to deliver a DPU that is in line with recent performance for the coming year.

While the US economic slowdown and global inflation could affect Asia, ‘we expect the demand for industrial properties in Singapore and in the Asian region to remain healthy on the back of strong prospects for Asia, albeit at a less brisk pace’, said CEO and executive director of the Reit manager, Craig Dunstan.

‘Given this economic scenario, organic growth in the portfolio will drive returns in the near future,’ he added.

‘However, we expect to resume our active acquisition growth strategy once capital market conditions improve.’

MI-Reit’s units gained 0.5 cents yesterday to close at 76 cents.

The counter has slid around 29.6 per cent from the start of the year.

Source : Business Times – 5 Sep 2008

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CCT signs up leases for 77,900 sq ft in 2 office towers

Posted by luxuryasiahome on September 5, 2008

CAPITACOMMERCIAL Trust (CCT) says 77,900 sq ft of office space at Capital Tower and One George Street has been renewed or newly committed for between two and three years.

Three companies account for the leases – JPMorgan Chase & Co, BHP Billiton and Shinhan Bank.

CCT did not reveal the rents.

‘Given the Grade A quality of Capital Tower (next) and One George Street (above), they are in line with rates achieved at comparable Grade A office buildings in the respective micro-markets.’- CCT spokesman

But a spokesman said: ‘Given the Grade A quality of Capital Tower and One George Street, they are in line with rates achieved at comparable Grade A office buildings – between $16 to $20 per sq ft per month (psf pm) – in the respective micro-markets.’

In July, CCT said it expected 4 per cent of leases at Capital Tower to expire in 2008.

Separately, CCT said yesterday that CapitaLand, which has a 30.92 per cent stake in the Reit, will lease 1,313.2 sq ft of office space at Capital Tower for three years for a total sum of $449,125.92.

CCT described the space as an ‘unconventional office unit located on the ninth storey’.

It said the terms of the lease were reviewed by CB Richard Ellis, which confirmed the rent is at market level.

Based on the total rent, the monthly rent works out to about $9.50 psf pm.

JPMorgan Chase & Co is one of CCT’s top-10 blue chip tenants, contributing about 3.3 per cent of the trust’s gross rental income. It will now occupy an extra one-and-a-half floors at Capital Tower.

BHP Billiton, which has several offices in the CBD, will renew its lease at Capital Tower.

This follows a recent report last month that said BHP Billiton is leasing about 150,000 sq ft at Tower 2 of the upcoming Marina Bay Financial Centre, slated for completion in the second quarter of 2010.

At One George Street, new tenant Shinhan Bank has taken space to grow its business footprint in Singapore.

Lynette Leong, CEO of CCT’s manager said: ‘The lease commitments are definitely encouraging news.’

She said she is confident the trust will delivering its forecast distribution per unit of 10.61 cents and 12.34 cents for the financial years ending 2008 and 2009 respectively.

Following the completion of the acquisition of One George Street on July 11, CCT’s asset size is close to $7 billion, which is ahead of the $6 billion target it set itself by 2009.

Source : Business Times – 5 Sep 2008

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