Posted by luxuryasiahome on January 19, 2009
K-Reit Asia said on Monday that it has established a S$1 billion multicurrency medium-term note (MTN) programme as an additional source of funding.
The net proceeds could be used for acquisitions and investments.
Citicorp Investment Bank (Singapore) Limited was appointed to act as the arranger and dealer of the MTN programme.
Source : Business Times – 19 Jan 2009
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Posted by luxuryasiahome on January 19, 2009
Singapore mainboard-listed Evergro Properties has posted a 178 per cent increase in full-year earnings.
Net profit for the year ended in December came in at S$545,000.
Revenue for the period rose 9.8 per cent to S$43.6 million.
According to the property firm, sales last year were primarily driven by its projects in China, namely Changzhou and Tianjin, adding S$36.8 million to its coffers.
Evergro noted that sales have been hurt by the global economic downturn.
It expects recent stimulus measures by the Chinese government to help prop up sliding demand.
Source : Channel NewsAsia – 19 Jan 2009
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Posted by luxuryasiahome on January 19, 2009
Evergro Properties net profit for the full year ended Dec 31 surged 178 per cent to $545,000, thanks largely to higher interest income and a turnaround in its associate companies.
Its revenue for the year grew 9.8 per cent to $43.63 million and narrowed its operating loss to $586,000 from $3.65 million a year ago.
Excluding exceptional items and tax, the group recorded a profit of $1.45 million, compared to a loss of $3.85 million.
‘The next two quarters will be trying time for all businesses and we do not expect our sales to improve,’ Evergro said in its financial statement on Monday.
Source : Business Times – 19 Jan 2009
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Posted by luxuryasiahome on January 19, 2009
K-REIT Asia’s distribution per unit (DPU) climbed one per cent for the 12 months ended December 2008, hitting 8.91 Singapore cents.
Total revenue for the period was up 84.2 per cent to S$23.4 million.
The strong results were attributed to increasing rental rates.
But real estate trust said in a filing to the Singapore Exchange that the current economic downturn is expected to affect its earnings, especially in the office space sector.
Monthly rates for prime office space eased by 12.5 per cent to and average of S$15 per square foot in the fourth quarter of last year.
The REIT said that additional supply coming on stream this year could further depress earnings in this sector in 2009.
Source : Channel NewsAsia – 19 Jan 2009
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Posted by luxuryasiahome on January 19, 2009
K-Reit on Monday reported income distributable to unitholders of $17.4 million for the quarter to Dec 31, bringing full year distribution to $58.2 million, or 8.91 cents per unit.
This implies a full-year yield of 12.7 per cent, one percentage point above 2007, and 18.3 per cent above forecast DPU of 7.3 cents, or 10.8 per cent.
Net asset value per unit was $2.28 at Dec 31, compared to $3.78 a year ago. Adjusted NAV, excluding distributable income was $2.19, down from $3.69 a year ago.
K-Reit said the outlook remained ‘challenging’ but that there were mitigating factors. Its average portfolio rents are below market rents ‘and will provide a cushion for positive rental reversion even under current conditions.’
It said that average lease to expiry was 5.6 years in its portfolio, and that it has no debt financing needs until 2011. Leverage was at 27.6 per cent as at Dec 31.
K-Reit said the present climate provided opportunities for selective asset acquisitions, and said it will engage in asset enhancement to optimise net lettable area and improve operational efficiency.
Source : Business Times – 19 Jan 2009
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Posted by luxuryasiahome on January 19, 2009
HOUSING Board flat owners who face difficulty in selling their units to buyers from the ethnic groups are advised to be realistic in their asking price.
National Development Minister said given a large number of resale flats available in the market, and with about 30,000 transactions annually, they should be able to find buyers.
While acknowledging that there could be a small number of households that may need more time to find a suitable buyer for their flat because of the Ethnic Integration Policy (EIP), Mr Mah said: “This is a small inconvenience that Singaporeans must live with to ensure racial harmony in our society.”
He said this in a written reply on Monday to a question from Marine Parade GRC MP Lim Biow Chuan, who had asked if the EIP could be reviewed on a case-by-case basis for residents who could not sell their flats to buyers of other races.
The EIP was introduced in 1989 to ensure a balanced mix of the various ethnic groups within HDB estates.
“By providing HDB residents of different races with more opportunities to interact, the EIP fosters ethnic tolerance and understanding, and strengthens our social cohesion and national unity,” said Mr Mah.
“The EIP is applied consistently to all races. Exceptions made to EIP can undermine the objective of maintaining a balanced racial mix and result in the creation of ethnic enclaves.
“However, HDB does exercise some flexibility under very exceptional circumstances. For example, it has allowed households of mixed marriages or parentage to be re-classified to meet the ethnic criteria.”
Source : Straits Times – 19 Jan 2009
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Posted by luxuryasiahome on January 19, 2009
CAPITALAND’S Abu Dhabi unit Capitala has entered into an agreement to provide future buyers of its maiden project in the city with up to 85 per cent financing.
Under the finance agreement with Abu Dhabi Finance, buyers of homes in Capitala’s US$5-6 billion Arzanah development will qualify for loans of up to 85 per cent of the property’s value; with loan terms of up to 30 years, flexible repayment methods and debt service ratios of up to 55 per cent. Traditionally, homebuyers in Abu Dhabi pay for their properties upfront.
Capitala is 49 per cent owned by CapitaLand, Singapore’s largest property developer, while the remaining 51 per cent stake is held by Mubadala Development Company, Abu Dhabi’s state-owned investment vehicle.
Capitala has so far launched phase one of Arzanah, Rihan Heights, and has seen strong take-up rates for its homes. CapitaLand said in October last year that 734 out of a total of 868 residential units have been booked. Construction on Rihan Heights has started and all five towers are expected to be ready for occupation in Q1 2011.
Now, phase two is being planned and the finance agreement is expected to incentivise buying during the current economic downturn, said Wong Heang Fine, CapitaLand’s chief executive for the Gulf Cooperation Council (GCC) region.
‘This (finance agreement) will spur the market tremendously,’ Mr Wong told BT. Without the agreement, Capitala could have some trouble selling homes now, he conceded.
Phase two of Arzanah is about two and a half times the size of phase one. Capitala is talking to companies to see if the development can be purpose-built for companies, Mr Wong said. If that happens, companies will then buy units in the project en bloc and then rent them out to their employees. Plans for phase two will be ready sometime later this year, Mr Wong said.
While critics may contend that the scheme could fuel speculation in Abu Dhabi’s property market, Mr Wong maintains that this is unlikely. Units in Arzanah, as well as the financing scheme from Abu Dhabi Finance, are available to United Arab Emirates (UAE) citizens and residents only. Abu Dhabi Finance will also do the necessary credit checks before it extends loans.
Mr Wong also says that genuine demand for new homes in Abu Dhabi remains strong, which means that few buyers will look to ‘flip’ their properties. He pointed to a Citigroup report in November 2008, which said that demand for residential units in Abu Dhabi will outstrip supply until 2011 as the population grows and household sizes shrink.
Abu Dhabi Finance was launched in 2008 with capital of 500 million dirhams (S$202.8 million). Its shareholders are state-owned Mubadala and Tourism Development & Investment Company; as well as listed companies Abu Dhabi Commercial Bank, Aldar Properties and Sorouh Real Estate.
It is estimated that together, these companies are responsible for more than two-thirds of the new homes being built in Abu Dhabi.
Source : Business Times – 19 Jan 2009
Posted in Developer News, General, Overseas Property | Tagged: Abu Dhabi Finance, Abu Dhabi Property, Arzanah, Capitala, Capitaland, Mubadala Development Company, Rihan Heights | Leave a Comment »
Posted by luxuryasiahome on January 19, 2009
CONSTRUCTION of the $700 million first phase of an underground oil storage facility on Jurong Island finally looks set to kick off after next month.
This is when JTC Corporation expects to decide on the main building contractor as well as the operator for Jurong Rock Cavern (JRC), in a move that will help pump-prime the weak economy.
‘We are in the final stages of evaluation (of the tenders) and expect to make a decision in February,’ a JTC spokeswoman told BT recently. But she declined to name the short-listed bidders or say how many are in the running for the main construction award.
One of the groups earlier reported to be vying to operate the project is a consortium comprising Royal Vopak of Holland, which already operates above-ground oil tanks flanking the planned project, and Geostock-Jurong Consultants, which did basic engineering for JRC.
Another is said to be Emirates National Oil Company, which owns and runs Horizon Terminals on Jurong Island.
The latest JTC indication comes after months of delays in awarding tenders, which were first called in late 2007. Sources said previously that JTC needed more time to evaluate the tenders, especially for the main building contract, given the demanding design and engineering requirements.
Building JRC – by drilling and blasting sedimentary rock – will help stir activity on Jurong Island, given the delays in many projects there due to a global slump in demand as economies go into recession.
Jurong Aromatics Corporation, which plans a US$2 billion petrochemical complex, was one of the first committed customers for JRC. But JAC’s project has been delayed as its partners are still trying to sew up financing.
JTC indicated in a pre-qualifying tender document in April 2007 that it expected the first two caverns of phase 1 JRC to be operating by December 2010.
In all, the first phase comprises five caverns to hold 1.485 million cubic metres of crude oil, naphtha, condensate and gas oil. Four will store 330,000 cu m each and the fifth will hold 165,000 cu m. The work will involve about 7km of galleries and tunnels, with an excavated volume of about 2.5 million cu m beneath the Banyan Basin.
A planned phase 2 could add a further 1.3 million cu m of storage, doubling JRC’s total capacity.
Source : Business Times – 19 Jan 2009
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