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New office tower to be built beside OUB Centre by 2011

Posted by luxuryasiahome on September 25, 2008

A 38-storey office tower will be built beside OUB Centre, adding some 350,000 square feet of Grade A office space to Singapore’s business district.

Despite growing expectations of falling demand for office space and a slump in office rents, the project’s marketing agent is already talking to interested parties. The S$540 million project is scheduled to be completed in 2011 and is already seeing healthy interest from financial service groups.

Managing director of Singapore & SEA at Jones Lang LaSalle, Christopher Fossick, said, “We see no pullbacks at all. We’re seeing financial service groups still looking for space, still expanding. No evidence at this time that there’s any pull back in financial sector here in Singapore.”

The potential anchor tenants are expected to take up between 25 to 30 per cent of the available office space.

Jones Lang LaSalle expects rents to be in line with rates in the prime area, which range between S$15 to S$20 psf per month.

But not all property players are this bullish on the office segment.

Singapore office rents are seen to have peaked following the almost 100 per cent increase over the past year.

In early September, Merrill Lynch issued a report predicting a fall in Singapore’s Grade A office rents, to S$10 psf per month in 2010.

It expects rents to fall further, to S$8 by 2011, and most analysts agree, especially in light of the financial turmoil in the US.

However, the project’s developers say rental rate softening due to external conditions is likely to be a short-term issue.

General manager of OUB Centre, Henry Kok Moo Yong, said, “This development is for long-term investment. We are confident with the Singapore economy especially with new things coming up like the integrated resort and more demand coming up.”

The new 38-storey tower will complement OUB’s existing building. Together they will be rebranded as One Raffles Place, which also means a name change for the current OUB Centre.

The new building will have environmentally-friendly features like solar panels and rainwater harvesting systems.

Source : Channel NewsAsia – 25 Sep 2008

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Hup Soon Global in Thai property venture

Posted by luxuryasiahome on September 25, 2008

Catalist-listed Hup Soon Global Corporation Ltd, a seller of automotive aftermarket products, agriculture equipment, industrial supplies and material handling equipment in South East Asia, said on Thursday it was teaming up with a local partner to redevelop its Thai property in Bangkok.

Its Thai-based associate United Motor Works (Siam) Public Company Limited (UMWS) has entered into a joint venture agreement with Chewathai Limited (CWT) for the redevelopment of UMWS’s property on Surawongse Road in downtown Bangkok.

The joint venture company Chewathai Hup Soon Ltd (CHS) will be funded initially with THB 1 million equally shared between the partners.

UMWS and CWT will both own CHS equally.

As part of the terms of the joint venture, UMWS will inject the land into CHS while CWT will invest THB 84million cash – this will go towards funding construction costs with any shortfalls to be funded by bank borrowings.

The debt/equity ratio of CHS will be kept low, and this will allow it to ride out any uncertainties in the Thai property market.

The building to be redeveloped was acquired in 1955 and was used originally for the UMWS operations before moving its operations to its current premises in Rangsit, in North Bangkok, in 1994.

Since then, the building has been rented to third party tenants for office space with all tenancies expiring last year in preparation for a redevelopment. The building, which is currently vacant, sits on a 961.2 square meter freehold site, and is free from encumbrances.

The building will be redeveloped into a fully-furnished, luxury condominium block consisting of about 52 units ranging from 43 to 72 sqm called The Surawongse by Chewathai Hup Soon. Amenities include a swimming pool, fitness centre and multi-purpose room.

Source : Business Times – 25 Sep 2008

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Yanlord denies China graft reports

Posted by luxuryasiahome on September 25, 2008

Yanlord Land, a developer of luxury homes in China, said on Thursday that Chinese media reports linking it to graft charges against a senior Chinese government official were untrue.

The company said Kang Huijun, a former vice governor of the Pudong New Area who is now on trial in China, had together with his family lived in Yanlord Gardens in Shanghai’s Pudong district since buying an apartment unit in 2001.

Kang later traded in his old unit for a larger one in the same development in March 2006, Yanlord said.

‘In consideration of the publicity benefits that Mr Kang’s residency would bring towards the sale of apartments at Yanlord Gardens’, both units were transacted based on initial launch prices, the developer said.

‘The Group reiterates that the above transactions fall within the ordinary course of its business involving sale and promotion of our apartment units,’ Yanlord said.

The company also denied media reports that between 1993 to 2001, Kang abused his capacity as vice governor of the Pudong New District by giving Shanghai Yanlord land use rights to sites for development into Yanlord Gardens.

‘The Company wishes to state categorically that the above statement is untrue as Shanghai Yanlord did not receive any assistance from Mr Kang in obtaining the land use rights of any land parcels,’ Yanlord said in the statement.

Yanlord shares dropped by more than a fifth to $0.99 on Wednesday before a mid-day trading halt.

Resuming trading on Thursday, the shares fell more than 9 per cent to a life low of $0.945.

Source : Business Times – 24 Sep 2008

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SM Goh suggests Tianjin Eco-City be turned into financial hub

Posted by luxuryasiahome on September 25, 2008

Senior Minister Goh Chok Tong has suggested that the China-Singapore Tianjin Eco-City can be turned into a sub-regional financial hub within China’s northeastern region.

Mr Goh made the suggestion during a meeting in Tianjin with the city’s Party Secretary Zhang Gaoli on Thursday evening.

He said the flagship project between China and Singapore can also serve as a hub for training skilled workers, technicians and engineers.

It can also be a base for research and development for environment-related issues such as waste water recycling.

Mr Goh said that apart from being a pleasant residential township, the eco-city must also have vibrant economic activities and produce results in three to five years.

He hoped that the Tianjin Eco-city can be a catalyst not just for Tianjin, but also for the greater Bohai region.

Turning to what he called the sudden mushrooming of eco-cities in China, Mr Goh said even though the growth of such eco-cities is good for China, it is important for Tianjin to distinguish itself from its counterparts.

One way to do so is in the software of running the city, and in the mindsets of its residents.

Hoping that the city can emerge as a model city, Mr Goh added that Tianjin was chosen over other areas such as Guangdong and Huangshan.

Mr Goh also hoped to see three harmonies in the park – the harmony between people and people, between people and the economy, and between people and the environment.

Earlier in Beijing, China’s Central Organization Department Minister Li Yuanchao told Mr Goh that China’s cooperation with Singapore is much deeper than other countries.

And this can be seen in how quickly the idea of the Eco-city had taken root and materialised.

Mr Li said it will serve as a developmental model for, and spur further growth in China.

First mooted by Mr Goh to Chinese Premier Wen Jiabao in April 2007, the Tianjin Eco-city is the next flagship bilateral project between Singapore and China after the Suzhou Industrial Park.

Both Mr Goh and Mr Wen will jointly officiate at the ground-breaking ceremony of the Tianjin Eco-city on Sunday.

Source : Channel NewsAsia – 25 Sep 2008

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CapitaLand JV awards US$500m contract

Posted by luxuryasiahome on September 25, 2008

CAPITALA, a CapitaLand joint venture with Abu Dhabi-based Mubadala, has awarded the main construction contract for Rihan Heights, the first phase of its US$5-6 billion flagship project Arzanah in Abu Dhabi.

The contract, valued at AED 1.9 billion (about US$500 million) has been awarded to a joint venture between Malaysia’s Sunway Construction and Abu Dhabi-based Silver Coast Construction & Boring Est.

Capitala said the contract cost of AED 1.9 billion is within budget and is part of the estimated total development cost of Arzanah.

Wong Heang Fine, acting CEO of Capitala, said: ‘We have achieved a significant advantage with the completion of our enabling works ahead of schedule. Main construction works are due to commence this coming November. We are on target to complete Rihan Heights and start the gradual handover of residences to buyers in the first quarter of 2011.’

Capitala was formed this year to design, build, manage and maintain integrated communities in Abu Dhabi.

Mubadala has a 51 per cent stake and CapitaLand the other 49 per cent.

Arzanah is a 1.4 million sq m fully integrated mixed use development surrounding Abu Dhabi’s Zayed Stadium.

Rihan Heights comprises five residential towers with 854 apartments plus 14 villas.

The 25-month main construction contract for Rihan heights covers all other construction activity and associated mechanical, electrical and plumbing works.

Source : Business Times – 24 Sep 2008

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OUB Centre Limited announces plans for new commercial tower

Posted by luxuryasiahome on September 25, 2008

New commercial tower marks strong renewal for Raffles Place

OUB Centre Limited today unveiled plans for a spectacular new 38-storey commercial tower which will form part of One Raffles Place, creating a new gateway to Singapore’s established centre of business and commerce.

The new One Raffles Place tower will provide 350,000 square feet of Prime Grade A office space and is scheduled to be completed in 2011. It will stand alongside the existing OUB Centre, one of Singapore’s tallest buildings, officially opened by the then Prime Minster Lee Kuan Yew 20 years ago.

Henry Kok Moo Yong, General Manager of OUB Centre Limited, said that Raffles Place had been the centre of commerce in Singapore for over a century.

From the time Sir Stamford Raffles arrived in Singapore, this area has been the heart of Singapore’s commercial district. The first banks and mercantile centres opened their doors here in 1823 and Raffles Place remains the heart of Singapore’s thriving business scene today.

“Over the years, Raffles Place has gone through many transformations as it expanded to meet the needs of business growth,” said Mr Kok.

“The opening of OUB Centre as the tallest building in the world outside of the United States in 1988 was a key step for the district. This new tower marks another milestone and reflects our confidence in Singapore’s growing business scene and this location.”

The new tower will entail an investment of $540 million, excluding land costs. It will complement the existing OUB Centre tower and retail mall. Combined, the two towers will provide 760,000 square feet of prime Grade A office space. The entire development will be known as One Raffles Place, emphasising the premier location of both office towers and the retail mall.

Designed by Japan’s internationally renowned Tange Associates led by Paul Tange, the elegant crystalline tower affords panoramic views of Raffles Place and the Singapore River.

Paul Tange said, “This is a special project for me as my father, Kenzo Tange, designed the original OUB Centre tower more than two decades ago. It was one of his first skyscrapers and is still considered by architectural experts to be one of the top 100 skyscrapers in the world.

“Architecture should reflect the times so this new tower has its own expression. The delicate glass façade and a series of diagonal planes guide the eye upwards in a spiral to the triangular pinnacle.

“The new tower is very faithful to the proportions of the original tower. The diagonal planes of the new building relate directly to the spacing of the windows in the original OUB Centre, while the triangular peak is exactly the same height as the lower level of the original tower.

“From the Singapore River, the new tower will be visible as a sparkling crystal framed by UOB Plaza 1 and 2, and dynamic lighting effects will ensure it stands out strongly among its stone clad neighbours,” said Mr Tange.

The new One Raffles Place tower will include raised floors, business continuity services and large column-free floorplates. Security measures will include 24-hour CCTV monitoring at all main entrances and exits, controlled by access cards. It also encompasses environmental management features such as photovoltaic cells and rainwater harvesting – which will reduce impact on the environment.

One Raffles Place is a short stroll via an air-conditioned link to Raffles Place MRT station, the busiest train station in Singapore carrying more than 126,000 passengers a day.

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Property players to showcase luxury homes

Posted by luxuryasiahome on September 25, 2008

Knight Frank to offer complimentary tours of 4 high-end developments

PROPERTY firms and developers are looking to showcase – and maybe sell – luxury apartments as the wealthy roll into town for this weekend’s Formula One race.

Several plan to arrange visits to showflats for interested visitors. And others, who have nothing concrete planned, say they will organise site visits if there is interest.

Knight Frank, which plans a property circuit at the weekend, is perhaps the most on the ball.

‘Everyone knows a lot of foreigners will be in town this weekend for the race,’ said executive director (residential) Peter Ow. ‘Some may be interested to know more about Singapore, and even to invest here.’

With this in mind, on Friday, Saturday and Sunday mornings, Knight Frank is offering complimentary tours – with pick-ups thrown in – of four high- end developments. The projects are Nassim Park Residences, Boulevard Vue, St Regis Residences and Viva. Visitors will also be taken on a general tour of Sentosa Cove.

Tours will start at 9am and take about two hours. Knight Frank agents will try to give visitors an idea of what the high-end property market here is like and also ’sell Singapore’.

To get visitor attention, Knight Frank is advertising in print. In addition, invitations will be sent to all rooms at certain hotels, such as the Pan Pacific and Fullerton. Interested guests can then call and book a tour slot.

‘I’m really not sure what the response will be because these people are here to see the race, not look at or buy property,’ Mr Ow said. But even if just one per cent of the 10,000 expected visitors show an interest, the response will be ‘great’, he said.

Other property firms, by contrast, have nothing as specific planned. But they are still eager and willing. DTZ, for example, is prepared to show its high-end properties on request. There have already been some enquiries, it said.

Developers, on the other hand, have a captive audience – some of them are flying guests into town for the race and will be taking them on visits to the latest luxury offerings.

One developer, which is hosting guests for the F1, told BT that while there are no plans to take these guests to showflats during the F1 weekend itself, guests who extend their stay will be invited to look at luxury developments.

Hamilton Scotts, a 30-storey upmarket project by Hayden Properties – the first project in Asia to feature car parking within apartment units – will hold a car show during the race weekend at its showflat. Car aficionados – of whom there will doubtless be many – will get a chance to view the luxury project with the luxury cars.

Source : Business Times – 25 Sep 2008

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Wing Tai picks top architects for 2 projects

Posted by luxuryasiahome on September 25, 2008

Pritzker Prize winner Jean Nouvel to design his first project in S’pore

FEW cities can claim to have buildings designed by 10 Pritzker Prize winning architects, and Singapore is now one of them.

To date there are only about 30 winners of the prestigious Pritzker Prize – the architectural equivalent of the Pulitzer Prize – and thanks to Wing Tai Holdings, Jean Nouvel, the latest recipient, will be the 10th winner to design a building here.

Belle Vue Residence: Wing Tai has upped the ante in the race for big names by commissioning eminent Japanese architect Toyo Ito for its luxury development in Oxley Walk. Mr Ito is well known here for designing Vivocity

Mr Nouvel, who follows in the footsteps of architects like Philip Johnson, Kenzo Tange and James Stirling, will design his first project here – a luxury 43-unit apartment building in District 9 to be called Le Nouvel Ardmore.

On the choice of architect, Wing Tai deputy chairman Edmund Cheng said: ‘Architecture influences who we are by defining how we live. That is why we set high standards for the architecture in our developments – to provide timeless elegant designs and thoughtful functional spaces.’

For Le Nouvel Ardmore, Mr Nouvel has created a 33-storey tower derived from the concept of a rotating Rubik’s cube.

While the tower will not actually ‘rotate’, automated screens will be incorporated into the facade so homeowners can ‘frame their own views’ and create unique living spaces.

Mr Nouvel’s design also calls for an outer structural lattice in the form of a grid detached from the living spaces to create an buffer of greenery and layering of spaces.

Besides giving the tower a distinctive look, the buffer space will be planted at certain levels to correspond to the villas-in-the-sky ambience of the development.

Internally, units will have high ceilings bathed in light from big windows that will provide 270 degree views.

‘We know who our buyers are, we understand their needs and lifestyle requirements,’ said Mr Cheng. ‘They have keen appreciation for differentiation and seek sophistication in their properties.’

As homebuyers become more discerning, developers here are increasingly commissioning big-name architects.

‘Discerning homebuyers and investors are increasingly drawn to good architecture,’ said Mr Cheng. ‘They have a higher sensitivity towards good design and are willing to spend not only on the interior of their apartments but also the exterior. Projects equated with quality are likely to attract higher premiums for their uniqueness and beauty.’

Wing Tai seems to have upped the ante in the race for big names by commissioning eminent Japanese architect Toyo Ito for its other luxury development, Belle Vue Residences in Oxley Walk.

Mr Ito, who received the 2002 Gold Lion Award at the International Architecture Exhibition of Venice Biennale, is already well known here for designing Vivocity.

For Belle Vue Residences, he has pushed the boundaries by coming up with a floor plan inspired by the branches of a tree and setting a distinctly organic tone.

The 176-unit development will have intimate pockets of space designed to mimic nature’s branching pattern, integrating interior and exterior spaces.

The organic branching effect also results in more exposed wall surfaces and windows for more natural light and better ventilation.

As a result of organic planning, there are about 160 unit types, with most responding to the landscape in unique ways.

Source : Business Times – 25 Sep 2008

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Lehman’s failure won’t affect projects: CES

Posted by luxuryasiahome on September 25, 2008

The 2 condos are substantially sold; funds to complete projects secured

CHIP Eng Seng (CES) said its two joint-venture projects with a real estate equity fund managed by Lehman Brothers are unaffected by the collapse of the US investment bank.

CityVista: The 70-unit project at Peck Hay Rd is already 54% sold at an average $2,550 psf, while The Parc Condo at West Coast Walk is 95% sold at an average price of $880 per square foot

Its JV partner is Lehman Brothers Real Estate Partners II (LBREP II), a US$2.4 billion fund that was closed in 2005. Only a fraction of that sum – some US$400 million – came from Lehman Brothers and its employees.

CES had formed a 50-50 JV with LBREP II’s wholly owned special purpose vehicle WM Mauritius Holdings for two high-rise freehold condominium projects.

But a reassuring fact is that the 695-unit The Parc Condominium at West Coast Walk is already 95 per cent sold at an average price of $880 per square foot (psf). The 70-unit CityVista at Peck Hay Road is 54 per cent sold at an average $2,550 psf.

All instalments of purchase money and construction loans have since been deposited into the Project Account of the building projects as stipulated by the Housing Developers Act.

‘With financing being secured with the bank, funds needed to finish the whole project was already secured. Not to mention that the projects were launched successfully and the deposits we collected are more than enough to fund the two projects till completion,’ CES chief executive Raymond Chia told BT.

The two projects are expected to be completed by the second half of 2010.

CES teamed up with Lehman to bid for four projects in total. Two tenders did not succeed.

Asked if Lehman’s collapse will cause CES to search for a new JV partner for future projects, Mr Chia said CES is not short of choice, having landed on the radar screen of equity funds since its partnership with the Lehman fund in 2006. CES has since received enquiries from large funds on opportunities to work together on projects in Singapore and Vietnam, Mr Chia said.

But he noted that CES can take on larger projects on its own now and, hence, has more options besides JVs. There also is the support of its 25 per cent shareholder Citadel Equity Fund, part of the Chicago-based Citadel Investment Group. Both are working together on a freehold condo project Grange Infinite, which is 100 per cent sold.

While Lehman’s failure may hurt US commercial property, its impact here is likely to be cushioned.

Lehman Brothers is believed to own a 45,000 square feet building at Clemenceau Avenue worth about $80 million. Its managed fund teamed up with Australia’s Lend Lease in a 75:25 JV to buy Paradiz Centre in Selegie Road for $138 million in 2006.

Paradiz Centre is being redeveloped and slated for completion by the end of this year. But it is understood that Lehman’s collapse will not affect the fund that owns this project and Lend Lease has pre-emptive rights to buy out Lehman’s stake in the venture.

Lehman Brothers also occupies minimal amount of office space here. It currently takes up about 40,000 square feet of office space in Suntec City Office Tower Five, a mere 3.1 per cent of the total Suntec City office space of 1.29 million square feet, according to DMG & Partners Securities.

Its other assets have been divested. The office building at 71 Robinson Road which Lehman jointly owned with Kajima Overseas Asia in April was sold to a German fund for $743.8 million, higher than some $613.4 million they spent on the land and redevelopment. Lehman sold Novotel Clarke Quay last year to CDL Hospitality Real Estate Investment Trust at $219.8 million, double the amount it spent on it.

Source : Business Times – 25 Sep 2008

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Monaco now has the costliest luxury homes

Posted by luxuryasiahome on September 25, 2008

It overtook London with an average price increase of 30% to £3,762 psf

London was overtaken by Monaco as the world’s most expensive location for luxury homes as job cuts by banks and the prospect of lower bonuses discouraged buyers.

Cooling demand: Average prices for houses and apartments in London’s nine most expensive neighbourhoods fell for the first time in five years in August

The average price of London’s most expensive houses and apartments rose 1.8 per cent to £3,291 a square foot in the second quarter from a year earlier, according to an index compiled by Knight Frank LLP.

In Monaco, the average increase was 30 per cent to £3,762, the property broker said on Tuesday in a statement.

‘The prime residential market is weakening across the world, due to the fallout from the credit crunch and declining economic conditions in western markets,’ said Liam Bailey, Knight Frank’s head of residential research.

Demand from the 300,000 people who work in financial services, which has underpinned London’s luxury-housing market, has dropped as companies in the industry slash personnel costs.

Lehman Brothers Holdings Inc, which filed the biggest bankruptcy in history, employed about 4,500 here.

Average prices for houses and apartments in London’s nine most expensive neighbourhoods fell for the first time in five years in August, as the prospect of a recession weighed on demand, a separate index compiled by Knight Frank showed last month.

The City of London Corporation, the municipal authority for London’s main financial district, estimates that 42,000 jobs will be lost during the next year.

Alongside the financial centres of London and New York in Knight Frank’s index come homes on the French Riviera and chalets in the French Alps, reflecting demand from high net worth individuals, notably from Russia, who are also buyers of ’super prime’ properties here and in New York.

In London, Monaco and New York, prices of properties worth at least £10 million (S$26 million) have continued to climb, with some newly constructed or refurbished homes fetching in excess of £7,000 a square foot, Mr Bailey said.

‘Demand is not going to evaporate,’ he said. ‘Wealth creation and accumulation in emerging economies and in specific high-end service sector activities will continue.’

Source : Business Times – 25 Sep 2008

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