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CapitaLand praised for plan to restore pay cut

Posted by luxuryasiahome on November 8, 2009

Property giant CapitaLand’s decision to restore wage cuts for its executives and management staff has the thumbs up from Manpower Minister Gan Kim Yong.

Yet given early signals of economic improvement here, he said it was up to companies to set the pace to restore pay cuts, adding that imposing a deadline would not be ‘practical’ at this stage.

Mr Gan made these remarks on the sidelines of an event yesterday to reward winners of a Junior Chef competition, organised by Teck Whye Secondary School.

CapitaLand last week reversed pay cuts of between 3 and 20 per cent made in January, based on indications that business prospects now look more promising.

Companies need to look at issues from their perspective, yet must recognise they could lose good workers if they are not seen as acknowledging ‘the contribution of workers in a fair manner’, Mr Gan said. This could be in different forms, he said, such as giving a one-time bonus or a small increment. He added that companies in favour of giving an increment should include it in the variable component of the pay packages.

Those facing financial difficulties should still talk to their workers ’so there is common understanding’, he noted.

Reacting to reports of some companies cancelling annual leave or forcing workers to work for 12 or more hours a day, he said his ministry would step up enforcement and urged workers to reach out to his ministry if rules were flouted.

Last week, the head of a cleaning company was convicted of failing to give his workers annual leave while seven other local employers went to court for making their staff work on shifts of 12 hours or more.

On the issue of foreign labour, he said these workers will continue to play an important part in supplementing the labour market, though their size cannot continue to grow because of physical constraints.

There are nearly one million foreign workers – about a third of the labour force, he noted, adding that the more important issue is to ensure the quality and productivity of the labour force continue to improve.

Source : Sunday Times – 8 Nov 2009

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Cheung Kong is top bidder for Upper Thomson Rd condo plot

Posted by luxuryasiahome on November 7, 2009

THE top bidder for the 99-year condo site on Upper Thomson Road on Thursday has been revealed as a unit of Hong Kong tycoon Li Ka-shing’s Cheung Kong Holdings.

This was confirmed yesterday by Raymond Chui, general manager of the group’s Singapore-based unit Property Enterprises Development.

Cheung Kong unit Treasure Well Investments’ bid was for $251.3 million or about $533 per square foot per plot ratio (psf ppr) – the highest seen for a private housing site at a state land tender this year.

Mr Chui said the estimated breakeven cost of about $850 to $900 psf forecast by analysts quoted in the media was pretty accurate. ‘We’ll probably develop around 340 to 350 units,’ he added.

Treasure Well’s top bid was 21.5 per cent above the next highest offer, which was made by Singapore’s Far East Organization.

When asked if Cheung Kong regretted having paid such a wide margin, especially in hindsight as the government announced its H1 2010 land sales programme the next day with substantial supply in the confirmed list, Mr Chui replied: ‘We’ve done our sums. The site is in a very good location and we have confidence in the future of the Singapore property market.’

The Upper Thomson Road site is located opposite the Singapore Island Country Club’s Island Golf Course and Lower Peirce Reservoir.

The group will also be developing a 295-unit condo on a 99-year-leasehold site facing West Coast Park and overlooking the sea.

That is likely to be launched next year, possibly in the second quarter, Mr Chui revealed.

The project will comprise fairly regular-sized units. ‘Our showflat is not yet ready,’ he added.

Cheung Kong clinched the West Coast site at a state tender in March last year, paying $110.44 million or $305 psf ppr.

Interestingly, it also outbid Far East Organization for that site, but with a much narrower winning margin of just 1.4 per cent.

Source : Business Times – 7 Nov 2009

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CapitaLand reverses staff pay cuts

Posted by luxuryasiahome on November 7, 2009

Labour leader hails developer’s ‘timely decision’

PROPERTY giant CapitaLand is reversing cuts of between 3 and 20 per cent made to executive and management salaries in January this year.

Tan Seng Chai, senior vice-president of human resource, said: ‘CapitaLand Group has performed significantly better this quarter than the previous two quarters and we are seeing an improvement in the business outlook in our core markets.

‘In the light of the continued business recovery, we have decided to restore company-wide salary reduction implemented in January this year as part of our cost management measures.’

Josephine Teo, assistant secretary-general of the NTUC, said in a statement: ‘We welcome the timely decision by CapitaLand to be among the first few companies in fully restoring its executives’ salary in view of good company performance and improved outlook.’

Ms Teo is also executive secretary of the Singapore Industrial and Services Employees’ Union, which had agreed to the pay cuts last year after it was consulted by CapitaLand.

The union said it was happy that CapitaLand continued to support workers during the downturn, noting that the company had donated money to a union fund and also supported NTUC’s work-life balance initiatives.

CapitaLand was awarded the May Day Model Partnership Award 2009, in recognition of its consultative and collaborative approach with the union, Ms Teo said.

Source : Business Times – 7 Nov 2009

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Sim Lian Group’s Q1 net profit up 23% to S$27.6m

Posted by luxuryasiahome on November 6, 2009

Mainboard-listed construction firm, Sim Lian Group, said that its first quarter net profit rose 23 percent from a year ago to S$27.6 million.

Revenue for the three months ended September edged up 2 percent to S$194.4 million.

Sim Lian said that its contract costs fell S$4.6 million despite an increase in revenue in the quarter. This was mainly due to a revision of contract costs for a development project, as well as the write-back of costs for certain construction projects.

Looking ahead, the company said development projects are expected to contribute positively to its performance in the current financial year. It plans to launch an industrial project at Ubi Avenue.

Sim Lian said its construction division remains selective in all tenders to ensure jobs are secured with reasonable prices and margins.

Sim Lian added that it expects to achieve a set of profitable operating results for the current financial year.

Source : Channel NewsAsia – 6 Nov 2009

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Singapore Land’s Q3 net earnings up 41% to S$56.3m

Posted by luxuryasiahome on November 6, 2009

Singapore Land said on Friday its third quarter net earnings rose 41 per cent to S$56.3 million from a year ago.

This was on the back of a 33 per cent rise in revenue for the three months ended September to S$119.1 million.

The company said the improvement in revenue was mainly due to sales of The Trizon residential project and higher office rental income.

But this was partly offset by lower revenue from its Pan Pacific Singapore hotel operations.

Looking ahead, Singapore Land said the office market is expected to be weak in view of the significant new supply.

But it said the market for private homes is showing signs of recovery although the pace is uncertain.

Source : Channel NewsAsia – 6 Nov 2009

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Hiap Hoe’s 3Q net surges to $8.5m

Posted by luxuryasiahome on November 6, 2009

Niche property developer Hiap Hoe Limited has reported that its net earnings for the third quarter ended 30 September 2009 (3Q09) surged more than 13 times to $8.5 million or 2.24 cents per share, from $0.7 million or 0.20 cents per share reported in the corresponding period a year ago (3Q08).

The rise in net profit was achieved on revenue of $36.7 million, which represents a growth of 663.0%, and has surpassed its revenue of $29.7 million for the full year of 2008.

For the nine months ended 30 September 2009 (9M09), the group recorded a net profit of $25.3 million on revenue of $84.0 million, compared to a net profit of $7.9 million on revenue of $20.3 million a year ago (9M08).

The strong growth for the quarter was driven by progressive revenue recognition on four of its residential development projects — Cuscaden Royale, Oxford Suites, Signature at Lewis, and Skyline 360° at St Thomas Walk. As at 30 September 2009, 74% of revenue for Cuscaden Royale and 80% of revenue for Oxford Suites have been recognised, while 13% and 9% of revenue for Signature at Lewis and Skyline 360° have been recognised respectively.

Net asset value per share as at 30 September 2009 was 41.58 cents up 11%, from 37.38 cents as at 31 December 2008. At the close of the quarter, cash and cash equivalents stood at $2.6 million.

Hiap Hoe also launched The Beverly and Signature at Lewis in the early part of 2009, and has sold more than 60% of the units launched. In addition, the group also managed to sell a couple of units at Skyline 360°, even though it has not officially launched the project.

Along with recent improving economic indicators, buying interest in the local private residential property market has showed some signs of growth. However, the group remains cautious about its outlook.

Hiap Hoe intends to continue to monitor the market closely for an opportune time to launch its other projects, namely, Waterscape at Cavenagh, Skyline 360° and Treasure at Balmoral. Together, the three projects have a collective gross floor area of more than 400,000 sq ft.

Hiap Hoe says plans to develop its Balestier Road / Ah Hood Road land parcel into an integrated hotel, park and commercial development are also progressing well. The group is currently in the final stages of selecting an international group to manage the two hotels in the development and the project is scheduled for completion in 2014.

Source : The Edge – 6 Nov 2009

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Oct developer sales probably just 700-800

Posted by luxuryasiahome on November 5, 2009

Estimate is down significantly from September’s 1,143

A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.

Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units – down significantly from the 1,143 private homes sold in September.

Developers’ monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.

Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.

‘Things have become more cautious, after the constant messaging from the authorities advising home buyers that there’s no need to rush, that they should take their time and that there’ll be enough supply,’ said a property consultant who declined to be named.

Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.

Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.

The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East’s top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.

Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East’s other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.

A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.

Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.

However, prices are unlikely to drop, he added.

‘If you look at the competitive bids at state land tenders, there’s no reason for developers to price their projects cheap. We’re generally optimistic about the market going forward.’

Source : Business Times – 5 Nov 2009

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Ho Bee, MCL launching Parvis condo at $1,480 psf average

Posted by luxuryasiahome on November 5, 2009

As other developers mull over whether to release new projects this quarter or hold back until 2010, Ho Bee and MCL Land have moved to launch their Parvis condo at Holland Hill this week.

ParvisParvis: 85 of the 248 units in the freehold project are being released, with absolute prices ranging from $1.62m for a 990 sq ft unit to $3.02m for a 1,991 sq ft unit

The average price is about $1,480 per sq ft for the initial batch of 85 units. The 12-storey freehold project has 248 units.

The pricing is considered fair for the location, said a property consultant who is not marketing Parvis, adding that it could easily be $1,500-1,600 psf on average.

The Lush on Holland Hill nearby is selling for about $1,500 psf on average. In the secondary market, units at Waterfall Gardens in Farrer Road are changing hands for about $1,450-1,500 psf.

The 85 units MCL Land and Ho Bee are releasing at Parvis will be priced between $1,400 psf and $1,600 psf. In absolute terms, prices range from $1.62 million for a two-bedroom unit of 990 sq ft to $3.02 million for a four-bedder of 1,991 sq ft.

The project comprises three blocks being built on the former Holland Hill Mansions site, which Ho Bee and MCL bought in late 2006 for $292 million or $750 psf per plot ratio.

Market watchers estimate the developers’ breakeven cost could be about $1,200 psf. Assuming a $1,480 psf average selling price for the entire development, their total pre-tax profit for the project could be about $120 million, some analysts reckon.

This is the second time MCL Land and Ho Bee have teamed up. Their first partnership was the 716-unit Rio Vista condo at Hougang. The project was launched in 2001 and completed three years later.

MCL is developing solo a 608-unit condo on a 99-year leasehold plot near Yishun MRT Station, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course.

It paid $350 psf ppr for the site in a state tender in March last year. The project, named The Estuary, will be launch-ready by year-end but is more likely to be released only in the first quarter of next year, said MCL’s CEO Koh Teck Chuan.

Source : Business Times – 5 Nov 2009

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CapitaLand sells two Kallang properties

Posted by luxuryasiahome on November 5, 2009

Group now left with another two S’pore industrial assets in its portfolio

CAPITALAND has agreed to sell two of its industrial properties in Kallang for a total of $68 million to construction and industrial property development group Chiu Teng.

The move, which is part of a strategy to divest non-core assets, leaves CapitaLand with just two industrial properties – Corporation Place in Jurong, in which it has a 75 per cent stake, and Technopark@Chai Chee, which it fully owns.

BT reported in November last year that the property giant was believed to be looking to sell its four industrial properties in Singapore either individually or as a portfolio.

Technopark had a book value of $210 million at end-2008. Corporation Place was understood to be worth about $80 million at end-June 2009.

A CapitaLand spokeswoman said: ‘We will continue to look into the possibility of divesting Corporation Place and Technopark at the appropriate time, for the right price and when target returns are met. However, as of now, we have no definitive plans for their sale.’

CapitaLand said in a news release yesterday that it expects to book a gain of about $19.2 million on the completion of sale of the two leasehold Kallang properties, which is expected to be next month.

Had the sale been effected on Jan 1, 2009, CapitaLand’s earnings per share for the nine months ended Sept 30 would have increased almost 10 per cent, from 4.1 to 4.5 cents.

CapitaLand said yesterday the book value at Sept 30, 2009, of Kallang Bahru Complex (KBC) was $28.9 million and that of Kallang Avenue Industrial Centre (KAIC) was $19.4 million.

Colliers International brokered the sale of the two properties through an expression-of-interest and tender process that ended last month. Chiu Teng was the highest bidder.

Bidders had to make offers for the two assets together, said Colliers managing director Dennis Yeo.

‘The properties have redevelopment potential,’ he said. ‘Under Master Plan 2008, the sites are zoned for Business 1 use with a plot ratio of 2.5 plus a bonus plot ratio of 0.5 for white uses such as offices, shops and showrooms.’

KAIC, which is on a site with a remaining lease of about 65 years, comprises four blocks of two-storey light industrial factory space occupied by SMEs such as carpentry, printing and engineering workshops.

KBC is a nine-storey flatted warehouse with total net lettable area of about 170,000 square feet. It is on a 109,000-sq-ft site with a remaining lease of about 68 years. The current occupancy rates for KBC and KAIC are 97 per cent and 82 per cent respectively.

CapitaLand Commercial CEO Ee Chee Hong said: ‘This sale is in line with our active portfolio management strategy which includes divesting non-core assets. The current positive market sentiment provided us a window of opportunity to unlock the value of KAIC and KBC through divestment.

‘Proceeds from the sale will be redeployed to new investments that will enhance our presence in our core office business, and for expansion in high-growth overseas markets.’

Source : Business Times – 5 Nov 2009

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CapitaLand to realise $19.2m from sale of 2 properties

Posted by luxuryasiahome on November 4, 2009

CapitaLand said on Wednesday that it has entered into a sale and purchase agreement with Chiu Teng Kallang Pte Ltd to sell its two leasehold industrial properties, Kallang Avenue Industrial Centre (KAIC) and Kallang Bahru Complex (KBC), for $68.0 million (US$49 million).

The book value of KAIC and KBC is $19.4 million and $28.9 million respectively as at Sept 30 2009.

CapitaLand expects to recognise a gain of approximately $19.2 million upon the completion of the sale, which is expected to take place in December 2009.

Source : Business Times – 4 Nov 2009

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