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Archive for November 5th, 2008

UOL’s Q3 net profit up 14%

Posted by luxuryasiahome on November 5, 2008

UOL Group Limited on Wednesday said its net profit for the third quarter ended September 30, 2008 rose 14 per cent to S$73.54 million.

The share of profit of associated companies was higher in the third quarter of 2008.

The increase was attributed to the share ofprogressive recognition of profit from the sale of units in one north residences and Nassim Park Residences and better performanceby Marina Centre Holdings Pte Ltd which owns Marina Square.

Turnover rose 61 per cent to S$267.85 million.

The increase in revenue came largely from the progressive recognition of revenues from the sale of thegroup’s development properties including those from Panorama and Breeze by the East which were launched earlier this year.

Revenue from property investments also improved due to higher average rental rates for the group’s investment properties andcontribution from the Pan Pacific Serviced Suites which opened in April 2008.

The group saw an increase in borrowings which was used principally for the purchase of the land parcel at Simei Street 4 and the property at Spottiswoode Park Road. As a result, the group’s net debt equity ratio increased from 23 per cent as at 31 December 2007 to 40 per cent as at 30 September 2008.

Source : Business Times – 5 Nov 2008

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Hotel Plaza’s Q3 net profit slips 4%, sees lower sales

Posted by luxuryasiahome on November 5, 2008

Hotel Plaza on Wednesday said its net profit for the third quarter ended September 30, 2008 slipped 4 per cent to S$13.53 million.

Revenue for the quarter inched up 2 per cent from a year ago to S$77.72 million. The increase was due largely to better performance from its Singapore hotels and offset by weaker performance from the hotels in Malaysia and China.

The company said a decrease in cash and bank balances to S$50.3 million was due mainly to the payment of the balance 75 per cent tendered price for the Land Parcel at Upper Pickering Street amounting to S$190 million in January 2008.

It also has a negative working capital of S$78.2 million as at 30 September 2008 due to the reclassification of the outstanding amount drawn down on the company’s credit facility as a current liability.

The outstanding amount of S$84 million was repaid in early October 2008 from proceeds of a new 3-year bank loan secured by a subsidiary.

The company said the slowing global economy will likely lead to a decline in business and leisure travel which will in turn affectthe hotel industry in Singapore and the Asia Pacific region.

‘In light of this uncertainty, the group expects revenue for its hotels in Singapore and the region to decline.’

Source : Business Times – 5 Nov 2008

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Fewer cluster homes may be built

Posted by luxuryasiahome on November 5, 2008

But congestion will be reduced and newer units can be bigger

Developers may soon build fewer strata-titled landed homes – also known as cluster homes – which in recent years have become increasingly popular.

The Urban Redevelopment Authority (URA) is reinstating an old rule early next year which analysts expect to leave developers less inclined to build the homes.

The main reason for the move is that developers have tended to cram as many of these homes onto a plot as possible.

This has led to congestion, and a deterioration of the environment of these developments, which are landed homes with strata titles and common facilities, URA said.

Such homes have gained in popularity in recent years as they combine the appeal of conventional landed homes with condo-style facilities such as swimming pools, playgrounds and security.

Buyers also pay slightly less for a strata landed home than conventional landed homes – which come with land titles.

But from Feb 3 next year, developers will be permitted to build fewer strata landed units in a given development than under current laws although these units may be larger.

In a circular released on Monday, the URA said it will re-introduce a cap to limit the number of allowable units in strata landed housing developments as such estates have become dense and congested.

This will be based on a minimum plot size per unit similar to that imposed for conventional landed homes.

Property consultants said the likely impact of the new rule is that developers would switch to building landed homes, since they would now be able to build fewer strata landed homes on a given plot.

The URA change means that a developer can build 66 strata terrace homes on a 10,000 sq m site, instead of 80 such units under existing rules. However, each of the 66 homes can be 20 per cent bigger in size than those built under existing rules.

As for strata semi-detached homes on the same plot, a developer can build up to 72 units under existing rules and up to 50 units that are 45 per cent bigger in size under the new guidelines.

The change is more pronounced for strata-bungalows. A developer which is currently able to build 60 units on a given plot will be able to build just 25 units under the new rule, though these units can be a whopping 2.4 times bigger.

The new rule will encourage developers to build conventional landed housing rather than strata landed homes, said Knight Frank’s director of research and consultancy, Mr Nicholas Mak.

If they choose to build strata homes, they are likely to consider only strata terrace homes as they can pack more onto the same piece of land, he said.

Indeed, Credo Real Estate’s managing director, Mr Karamjit Singh, said that strata-bungalows and strata semi-detached houses may eventually disappear.

As such houses are set to be bigger, their absolute value will go up, he said. ‘They will become less affordable.’

Currently, strata landed homes typically cost 10 to 20 per cent less than conventional landed homes, he said. But the gap will close under the new guidelines.

‘Mindsets need to be change as conventional landed homes typically command a higher price than strata landed homes. Whether a buyer is prepared to pay the same price for a strata landed home is a question mark,’ said Mr Singh.

Strata landed housing was introduced in 1993, with the same control that will be re-introduced early next year. This was lifted in 2001 – except for strata bungalows proposed within exclusive Good Class Bungalow areas – to allow the industry greater flexibility in design and to promote self-regulation, URA said.

It is reinstating the control as a focus group consultation last year found that the quality of the living environment in strata landed estates has deteriorated as houses within the strata landed development are packed very close together to maximise the number of units.

‘Landed housing residents living nearby now have to deal with heavier traffic into the estate and a more congested environment due to the large number of strata landed housing units being built,’ URA said in its circular.

Between 2003 and this year, about 100 strata landed housing projects were approved, according to its data.

URA also said it had received complaints from residents of landed housing estates of the increasingly dense environment caused by some new strata landed housing developments.

It said strata housing will still be an attractive option as there is enough flexibility for creative layouts and developers can save on land, which would be required for public parks and roads if the site was for conventional landed housing.

Source : Straits Times – 5 Nov 2008

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Citi launches special home loan for rich

Posted by luxuryasiahome on November 5, 2008

WELL-HEELED banking customers, with properties in Singapore and abroad, are being offered a first-of-its-kind product by Citibank Singapore.

The product, launched yesterday, allows these affluent types to consolidate their mortgage financing on residential properties held here and abroad into an all-in-one overdraft that they can use at their convenience.

These clients are Citigold Select customers – who have liquid assets of at least $1 million – and have properties in multiple countries.

Citi says the key benefit of the product is that these clients have a single point of contact, which allows them the speed to act as and when they need investment funds.

This is even more important in the current volatile market, where attractive opportunities are expected to surface.

‘These individuals understand the value of having a consolidated line of credit and a single point of contact, both of which go towards facilitating timely investment decisions,’ said Citi Singapore’s head of commercial markets, Mr Tan Chia Seng

Citibank’s clients can use a range of currencies, such as the Singapore dollar, US dollar, Australian dollar, Hong Kong dollar, euro, Japanese yen, British pound and Swiss franc. They can also switch currencies seamlessly.

Currently, the product is available only in Singapore and for properties in six markets – Singapore, Malaysia, Hong Kong, Australia, Canada and Britain.

Up to 70 per cent of the value of each property in these markets can be aggregated into the overdraft facility.

Citi Singapore’s head of consumer markets, Mr Anil Wadhwani, said the product offers ease, speed and convenience from a single window, since clients need only speak with one officer here for all their properties, instead of different ones in different markets.

Mr Tan said the product evolved from client’s feedback and that they have worked on it for a year.

Interest rates are pegged to the Singapore Interbank Offered Rate or the London Interbank Offered Rate. Citibank declined to reveal the spread.

Source : Straits Times – 5 Nov 2008

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New Citi overdraft ties global mortgages

Posted by luxuryasiahome on November 5, 2008

CITIBANK Singapore is offering an overdraft to affluent clients collateralised on their global properties.

The bank said that its global home financing solution allows high net worth clients to consolidate mortgage financing on residential properties here and abroad into one overdraft that they can use at their convenience.

‘It’s aimed at customers whose properties have low leverage or none at all, and helps them take advantage of market opportunities,’ said Anil Wadhwani, head of consumer markets at Citi Singapore.

In conversations with customers, Citi has found that those with properties in different countries find it cumbersome dealing with various bankers when investment opportunities arise.

Some 40 per cent of Citi Singapore’s affluent client base would be interested in properties overseas, said Mr Anil.

The bank’s latest product gives a line of credit by consolidating a customer’s property portfolio across markets. Customers need only to deal with one relationship manager in Singapore, he said.

Tan Chia Seng, head of commercial markets at Citi Singapore, said: ‘It provides clients with the means to unlock the equity in real estate to tap market opportunities without having to sell their properties.’

Mr Tan said that the product allows clients to move quickly as and when they require investment funds.

The overdraft facility can be used for a range of investments including stocks, bonds and properties.

For a start, the product will apply to properties in six markets – Singapore, Hong Kong, Malaysia, Australia, Canada and the UK.

Up to 70 per cent of the value of each property in these six markets can be aggregated into the overdraft facility.

The line of credit is offered in a range of currencies, comprising the Singapore dollar, US dollar, Australian dollar, Hong Kong dollar, euro, Japanese yen, sterling and Swiss franc.

Property consultant Knight Frank said that the total value of residential properties transacted in Singapore, the UK, Hong Kong and Malaysia in the 12 months ended Sept 30, 2008 was about US$315 billion. Of this, a quarter or about US$79 billion of properties in these markets were bought by foreigners.

Source : Business Times – 5 Nov 2008

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Tuan Sing’s Q3 profit plunges

Posted by luxuryasiahome on November 5, 2008

TUAN Sing Group yesterday reported that its net profit for the third quarter ended September 30, 2008 sank 94 per cent compared with a year ago to $814,000.

Earnings per share (EPS) was 0.1 cent for 3Q2008 versus 1.3 cents for 3Q2007. This was because its results were dragged down by its share of $6.9 million from an exceptional loss in its jointly controlled company in Australia, the Grand Hotel Group (GHG). GHG had marked down to zero market value the interest hedge instrument it entered into last year.

Revenue for the quarter slipped 1 per cent to $80.33 million.

Tuan Sing also confirmed that it had, in accordance with the sales agreements, billed to and received from buyers of up to 60 per cent of the sales value of its Botanika Project. In view of this relatively high proportion of the sales values having been paid, no major default on future payments by buyers is expected. The Botanika Project is expected to receive its Temporary Occupation Permit in November.

Overall, the group said it would not achieve the same level of profit as in last year, but expects to deliver satisfactory results at the operating level barring unforeseen circumstances.

Source : Business Times – 5 Nov 2008

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P-Reit remains optimistic on outlook

Posted by luxuryasiahome on November 5, 2008

AMID challenging market conditions, the manager of Parkway Life Reit (P-Reit) remains optimistic about its outlook and has already repositioned its finances so that it can be more flexible.

The healthcare property trust yesterday reported a third-quarter income available for distribution of $10.3 million, boosted by higher rental rates and income from recently acquired properties.

The performance brings the distribution per unit (DPU) for the three months ended September to 1.71 cents, or 0.15 cents higher than its earlier forecast of 1.56 cents.

In the same quarter last year, income available for distribution was $4.1 million. The huge disparity was because the healthcare property trust was only listed midway through Q3 last year.

‘Despite challenging market conditions, we remain optimistic about our medium and long-term prospects,’ said Justine Wingrove, CEO of Parkway Trust Management, the Reit’s manager. ‘This is due to several factors, namely, our rental lease structures that protect against downside risk while providing for good future rental growth, our low gearing, a 100 per cent occupancy across the portfolio and investment grade credit rating of BBB+.’

P-Reit, which holds the Mount Elizabeth, Gleneagles and East Shore hospitals in its Singapore portfolio, posted gross revenue of $13.3 million. It was higher than the forecast of $11.5 million due to a variable rent component pegged to the Consumer Price Index (CPI) which pushed up the minimum rental rates. After subtracting expenses of $877,000, the net property income came to about $12.5 million.

Contribution from its Japan portfolio, including nursing homes and pharmaceutical facilities, came to $1.1 million.

The quarter also saw the mainboard-listed trust diversify its credit facilities. It entered into three-year facilities worth $100.6 million in September. The facility was fully drawn last month to partially refinance short-term debt. A separate three-year revolving credit facility of $100 million has also been secured.

‘By replacing short-term credit facilities with longer term facilities, P-Reit faces no refinancing risk,’ explained Ms Wingrove. ‘In terms of future growth, adequate and diversified financing sources that have been secured will also provide us with the flexibility and acquisitive power to support our future expansion.’

P-Reit also has in place a $500 million multi-currency medium-term note programme, which may be used to fund future acquisitions. Its gearing stands at 19.7 per cent.

The trust has an asset portfolio of $1 billion. For the first nine months of this year, total distributable income came to $30.1 million, on the back of $37.7 million in gross revenue. DPU so far is five cents.

Shares of P-Reit slipped two cents yesterday to close at 76 cents.

Source : Business Times – 5 Nov 2008

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EGM not needed for Reit name change

Posted by luxuryasiahome on November 5, 2008

WE refer to the letter, ‘Don’t support name change for MPReit’ (BT, Nov 4). As manager of Macquarie Prime REIT (MP REIT), we had in mid-February 2008 embarked on a process of reviewing strategic options for MP REIT aimed at unlocking potential value for MP REIT unitholders.

As indicated in our latest results announcement and press release, due to the increasingly challenging market environment and execution risks encountered during the strategic review period, no firm offer to acquire 100 per cent of MP REIT units or its investments was received. The Macquarie-YTL transaction is a private deal between two independent principals.

In YTL’s press release on Oct 28, 2008, it was mentioned that MP REIT will be renamed Starhill Global REIT. On completion of YTL’s acquisition of Macquarie’s interests in MP REIT, it is expected that Macquarie will require MP REIT to discontinue the use of the Macquarie name as branding for the Reit. We would also like to inform your readers that there is no legal requirement to convene an EGM to approve the change of name of Singapore Reits.

We look forward to working together with the new sponsor, YTL Corp, in the interests of unitholders, in assessing and implementing the new strategic initiatives available to MP REIT. Further announcements will be made at the appropriate time.

Mok Lai Siong
Senior vice-president,
Corporate communications & investor relations
Macquarie Pacific Star Prime REIT Management Limited

Source : Business Times – 5 Nov 2008

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Business park just for green companies soon

Posted by luxuryasiahome on November 5, 2008

Singapore’s first business park devoted to companies that focus on environmentally friendly technology has been given the green light, officials revealed yesterday.

The 55ha plot in Jalan Bahar in the north-west could eventually house companies that specialise in industries like solar power, water or fuel cell technology.

The buildings themselves will be green, employing renewable energy and clean technologies.

Named the Clean Tech Park, the project will be rolled out in phases and take 15 to 20 years to complete.

The first building is expected to be up by 2010, said Deputy Prime Minister S. Jayakumar at the opening of the Singapore Energy Conference at the Raffles City Convention Centre.

The project will be about achieving new lows – ‘low waste, low energy and low carbon emissions’, said Prof Jayakumar.

He added: ‘Doing more with less is key to creating sustainable cities.’

Concrete plans for the park are expected to be released in the first quarter of next year.

The new park is part of the country’s drive to become a global green hub, producing eco- friendly technologies and services.

The Government has already invested some $170 million to boost the clean energy industry.

Although Singapore accounts for only 0.2 per cent of the world’s carbon emissions, its efforts to help provide solutions to problems like climate change were lauded by experts.

Keynote speaker Peter Schwartz called the Republic’s environmental progress ‘astonishing’.

The chairman of international consultancy firm Global Business Network said the country could soon export lucrative green technologies to overseas markets.

‘You could well be a net winner in this whole situation,’ he said.

With its engineering and chemical expertise, Singapore could become a centre for developing carbon-capture technology, he said.

Source : Straits Times – 5 Nov 2008

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