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Consortium chosen to design International Cruise Terminal

Posted by lushhomeonline on May 5, 2008

The government has chosen the consortium of Bermello, Ajamil & Partners and RSP Architects Planners & Engineers to design the new International Cruise Terminal at Marina South.

Maunsell Consultants (Singapore) has been appointed the engineering consultant for the project.

This was revealed in a joint news release by the Singapore Tourism Board (STB) and JTC Corporation (JTC) on Monday.

It said the architectural design will incorporate a terminal building alongside two berths.

The new terminal will also have all other facilities needed to accommodate the largest ships currently in service, as well as those currently under construction.

Three firms had been invited to participate in a limited tender.

Among the criteria were prior experience in cruise terminal planning, inclusion of a Singapore partner and forming a consortium.

Besides winners Bermello, Ajamil & Partners and RSP Architects Planners & Engineers, the other submissions were made by BEA International and CPG Consultants, as well as DMJM Design and DP Architects.

An evaluation panel, made up of STB and JTC executives, selected the winning consortium because it stood out for its track record and had a concept that best met the requirements of new terminal.

Four engineering consulting firms with experience in marine engineering had been invited to submit proposals.

Besides winners Maunsell Consultants, the other bidders were Jurong Consultants, Parsons Brinckerhoff and Surbana Corporation.

The panel selected Maunsell Consultants because of its technical experience and strong track record in handling similar projects.

Piling and construction works for the berth deck are expected to start in the second half of the year, and STB will appoint an operator for the terminal in the third quarter of this year.

The project is scheduled to be completed in 2010.

JTC said it will work with STB to make the new cruise terminal “the next iconic feature in Singapore”. - CNA/ms

Source : Channel NewsAsia - 6 May 2008

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Major remaking of Collyer Quay

Posted by lushhomeonline on April 26, 2008

Waterfront area around Marina Bay to be transformed over next few years

TALL wooden hoardings now block off both ends of the once-bustling thoroughfare of Change Alley.

The moneychangers after whom it was named are long gone. All is eerily quiet at the glass-framed bridge linking Collyer Quay and Raffles Place.

However, the 32-year-old landmark will be reborn in 2010 as a shopping arcade with 12 retail shops, as part of a multimillion-dollar makeover now taking place at historic Collyer Quay.

It’s just one of many changes in the waterfront area of Marina Bay that are set to create a buzz.

The eight-year-old One Fullerton, a three-storey entertainment complex occupying a prime spot along the quay, will be relaunched in August with four new eateries.

Business owners there are racing to open new restaurants and bars in time to cash in on the three-day Formula One SingTel Singapore Grand Prix that is expected to draw 240,000 spectators in September.

The new eateries include Forlino, a 5,000 sq ft traditional Italian restaurant to be helmed by Michelin-star chef Osvaldo Forlino from Italy. It is run by Mr Beppe de Vito, who owns the Il Lido Italian restaurant at Sentosa Golf Club.

Hotelier Loh Lik Peng, who owns the hip New Majestic and 1929 hotels, will open an upscale 80-seat Cantonese restaurant on the ground floor.

Even the space under the Esplanade Bridge next to One Fullerton has been transformed. A $500,000 Spanish-themed bar, The Tapas Tree, which can seat 120 people, will open there.

These will add to One Fullerton’s current crop of 10 food and office tenants, some of which are undergoing renovations.

The changes come as the entire Fullerton strip waterfront area gears up to cater to F1 crowds, office workers in the vicinity, and the tourist throngs expected to be drawn to the rejuvenated Marina Bay, once it is completed.

Next to One Fullerton, the newly refurbished Clifford Pier will reopen with a restaurant and bar by September.

Both One Fullerton and Clifford Pier are part of an area being transformed by developer Sino Group into a waterfront development called The Fullerton Heritage. It will feature a new 98-room Fullerton Bay Hotel and a dining zone in the old double-storey Customs House, both of which will open next year.

And in 2010, diners can look forward to a rooftop restaurant overlooking Marina Bay at the new 50, Collyer Quay office building on the site of the former Overseas Union House.

The 18-storey block is being developed at a cost of $257 million by Clifford Development, a wholly owned subsidiary of Overseas Union Enterprise.

Next to it, the Change Alley Aerial Plaza Tower, a 39m-tall tower that once housed the popular Red Lantern Restaurant, will be upgraded from September. In 2010, it will reopen with two Chinese eateries on the fourth and fifth levels.

Urban Redevelopment Authority director for urban planning and design Fun Siew Leng says the developments, together with international events such as the F1 and Singapore Biennale 2008, will contribute to its vision of Marina Bay as an exciting and vibrant waterfront destination.

Diners such as administration manager Celeste Lim, 27, cannot wait for the revamped Collyer Quay. ‘With the new eateries and bars, it will be the next hot spot. Also, the view at the waterfront will be spectacular, as it overlooks the Singapore Flyer and upcoming Marina Sands integrated resort.’

Source : Straits Times - 26 Apr 2008

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Yongnam, KTC secure S$81.4m contract for Marina Bay Sands IR

Posted by lushhomeonline on April 24, 2008

Structural steel contractor and engineering solutions provider Yongnam Holdings will form a 70-30 percent joint venture with KTC Civil Engineering and Construction to work on a Marina Bay Sands project.

They have secured an S$81.4 million contract for temporary decking, steel waling and excavation works at the South Podium of the Marina Bay Sands integrated resort.

The South Podium area will include convention and meeting facilities, a grand ballroom and retail space.

Yongnam, along with its partners, has won over S$170 million worth of contracts for the Marina Bay Sands development.

Yongnam will be in charge of overall site supervision and control.

Source : Channel NewsAsia - 24 Apr 2008

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Singapore Flyer officially opens

Posted by lushhomeonline on April 16, 2008

PM Lee describes ride as ‘enjoyable and spectacular’

FIREWORKS and lasers lit up the Marina Bay skyline last night as the world’s largest observation wheel was officially opened.

Drumming up support: PM Lee (left) and Florian Bollen (right), chairman of Singapore Flyer, giving a resounding start to the attraction’s official opening

Gracing the festivities at the Singapore Flyer was Prime Minister Lee Hsien Loong, who made his first trip on board the $240 million attraction.

Speaking to reporters after a half-hour ride on board one of the 28 capsules, Mr Lee described the experience as ‘enjoyable and spectacular’.

Singapore Flyer

‘We have a beautiful city and this is a remarkable view of it,’ he said. ‘The Singapore skyline is constantly growing and changing. The Flyer is an addition to that skyline, as well as to view the city around us.

‘I’m very happy with the project. It’s on time and it has achieved what we hoped for. We are optimistic it will do very well (with regard to) passengers and become one of the busiest flyers in the world.’

Also at the opening yesterday were 350 guests, including families and the elderly from various grassroots and social welfare organisations.

The Singapore Flyer board and management also presented a $28,000 cheque to The Straits Times School Pocket Money Fund, which was received by Straits Times editor Han Fook Kwang.

The 165 m tall Singapore Flyer took over five years to conceptualise, plan and build.

It was opened to the public on March 1, after a soft launch on Feb 11 for corporate customers. The attraction is expected to draw about 2.5 million people in its first year.

It is seen as a key part of Singapore’s plan to grow tourism and attract 17 million visitors by 2015.

Source : Business Times - 16 Apr 2008

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Realising the Marina Bay vision

Posted by lushhomeonline on March 24, 2008

CHING TUAN YEE and BENJAMIN NG reflect on the planning of Singapore’s most ambitious urban project and highlight the exciting developments in store for Singaporeans and visitors alike

THE vision for Marina Bay is that of a high-quality, 24/7 live-work-play environment, one that encapsulates the essence of the global city Singapore is envisaged to be.

Something for everyone: Set by the water’s edge and with the city skyline as a backdrop, Marina Bay is envisioned to be a Garden City by the Bay, a 24/7 destination that presents an array of opportunities for people to explore new lifestyle options, exchange new ideas and information for business, and be entertained by rich leisure and cultural experiences

Waterfront business districts such as Canary Wharf in London and Pudong in Shanghai have come, in recent years, to signify urban progress and prosperity. They have raised the international profile of their respective cities while spurring growth and investment.

The Singapore example is in Marina Bay. A seamless extension of Singapore’s flourishing central business district spanning 360 hectares of prime land for development, Marina Bay is our city’s most exciting and ambitious urban project that will support our continuing growth as a major business and financial hub in Asia.

Set by the water’s edge and with our signature city skyline as a backdrop, Marina Bay is envisioned to be a Garden City by the Bay, a 24/7 destination presenting an exciting array of opportunities for people to explore new living and lifestyle options, exchange new ideas and information for business, and be entertained by rich leisure and cultural experiences in a distinctive environment.

The groundwork for the expansion of the existing CBD (Central Business District) and its transformation into a waterfront business district focused around Marina Bay had been laid as early as the late 1960s. Land adjacent to the CBD was reclaimed in phases between 1969 and 1992.

The Master Plan for Marina Bay focuses on encouraging a mix of uses (commercial, residential, hotel and entertainment) to ensure that the area remains vibrant around the clock.

The concept of ‘white’ site zoning also gives developers more flexibility to decide on the mix of uses for each site, including housing, offices, shops, hotels, recreational facilities and public spaces.

To cater for good connectivity and seamless extension, the development parcels at Marina Bay were planned based on a grid urban pattern which extends from the existing road network within the CBD. This grid creates a flexible framework with a series of land parcels that can be amalgamated or sub-divided to meet different requirements as well as changing demands and allow the phasing of developments.

Creating signature districts

In the planning of Marina Bay, specific attention was paid to creating value. The land parcels are located within a series of distinctive districts, each focusing around attractive public open spaces and tree-lined boulevards which will provide signature address locations for developments.

Along the waterfront and fronting key open spaces, building heights are kept low. This maximises views to and from individual developments further away from the waterfront, enhancing their attractiveness and creating a dynamic ’stepped-up’ skyline profile as well as more pedestrian scaled areas.

The successful development of Marina Bay is supported by state-of-the-art infrastructure. To date, the government has pumped in more than $4.5 billion to facilitate development of the area.

A Common Services Tunnel housing electrical and telecommunication cables and other utility services underground is being built, making repeated road diggings a thing of the past. An extensive road and rail network has also been planned, with three MRT stations to be built in the area as part of the new Downtown rail line.

Chain event: A 280m pedestrian bridge - the longest in Singapore - will, together with a new waterfront promenade, create a continuous walking loop connecting all the attractions and open spaces around the Bay

A new vehicular and pedestrian bridge will link Bayfront to Marina Centre. The 280m pedestrian linkway - the longest in Singapore - will sport a dynamic double helix structure. Together with a new waterfront promenade, this will create a continuous walking loop connecting up the necklace of attractions and open spaces around the Bay.

Another key infrastructural project is the Marina Barrage. When officially opened in 2009, it will turn the existing water body into Singapore’s first reservoir in the city. This will serve as a new source of fresh water for Singapore and a new lifestyle attraction allowing for a variety of water-based activities and events to take place. It will also house Singapore’s tallest fountain project.

The softer touch

Having provided for much of the ‘hardware’ for the new business district, it became clear that URA had to go beyond its traditional roles of urban planning and land sales management. To this end, the Marina Bay Development Agency was set up within URA to focus on the ’software’ for developing the area. Since then, URA has embarked on a full spectrum of marketing, promotion and place management activities to showcase the uniqueness of this new destination.

To generate more buzz, a calendar of events and activities for public spaces and water bodies has been put in place in partnership with various agencies and the private sector. Signature events, like the Marina Bay Singapore New Year’s Eve Countdown, have become a new urban tradition. Marina Bay has also become the definitive venue for a host of sporting events like the F1 Powerboat Race, the Oakley City Duathlon and the Great Eastern Women’s 10km run.

The shape of things to come

While it will take more than a decade for the entire area at Marina Bay to be fully developed, a host of projects that will offer people from all walks of life exciting and attractive options to live, work and play are already taking shape. These upcoming developments have contributed significantly towards enhancing the area’s reputation as a location that offers something for everyone: a tropical living environment among lush greenery; a bustling global business hub and a lifestyle locale presenting a kaleidoscope of entertainment and leisure choices.

LIVE - by the Bay. Marina Bay has fast become one of the city’s most popular and prestigious residential addresses, with a number of outstanding projects already under construction.

The Sail @ Marina Bay will be the tallest residential development in Singapore at 245 metres when it is completed in 2009. It boasts two towers - one at 70 storeys and the other at 63 storeys. Meanwhile, the Marina Bay Financial Centre incorporates the 55-storey Marina Bay Residences, comprising 428 luxury apartments, and the Marina Bay Suites, a 66-storey development offering 221 exclusive bayside units.

WORK - by the Bay. With its prime location in the heart of Singapore’s future downtown, Marina Bay continues to be a magnet to global investors and tenants seeking premium office space in a prime location.

The development of Marina Bay will help to further position Singapore as one of Asia’s leading financial centres, doubling the size of the existing financial district. The new growth area set aside for the seamless extension of the existing financial district is more than twice the size of London’s Canary Wharf and will provide some 2.82 million square metres of office space, equivalent to the office space within Hong Kong’s main business district, Central.

Already, a nucleus of office developments is forming with the development of One Raffles Quay, the soon-to-be-completed Marina Bay Financial Centre, and the two recently sold sites at Marina View. Several global banks and multinational corporations, including UBS, Deutsche Bank, DBS and Standard Chartered, are already located or will be locating in these developments.

PLAY - by the Bay. The ‘fun’ factor at Marina Bay is expected to be raised to a new high when the Marina Bay Sands Integrated Resort opens its doors in 2009. With its impressive design featuring a sky park and three soaring 50-storey hotel blocks with landscaped balconies, the area’s most anticipated project will add a new dimension to our city skyline.

The Marina Bay Sands Integrated Resort will house, among other things, a casino, 110,000 sq metres of meeting and convention facilities, and an ArtScience Museum (above)

The integrated resort is poised to be a world-class development that will house a casino, two theatres, 110,000 sq metres of meeting and convention facilities, as well as about 2,500 hotel rooms. Other attractions at the integrated resort include restaurants in the form of two floating crystal pavilions and an ArtScience Museum, the rooftop of which becomes an amphitheatre with tiered seating.

Coming attractions: Building on Singapore’s green legacy, three world-class waterfront gardens (above) of about 100 hectares are planned for the area.

Building on Singapore’s green legacy, three world-class waterfront gardens of about 100 hectares have been planned for the area. With the first phase of the project slated for completion in 2010, the Gardens at Marina Bay will be another unique destination attraction for those visiting Singapore and a green sanctuary for people living and working in the city.

Each garden will feature a distinctive design and character. All three gardens will also be interconnected via a series of pedestrian bridges to form a larger loop along the whole waterfront and linked to surrounding developments, open public spaces, transport nodes and attractions.

Focal point for the community

Marina Bay is a prime example of a visionary masterplan that is not only well on its way to becoming a new focal point for the local community, but it has also drawn worldwide attention and interest. Testament to this is its achievement in attracting close to $16.5 billion worth of private investments to date from international investors and developers from the US, Hong Kong, Australia, Europe as well as the Middle East.

Moving forward, Marina Bay will continue to be the centrepiece of Singapore’s urban transformation, providing the city with the opportunity to attract new investments, visitors and talents.

The URA, as the Development Agency for Marina Bay, is committed to our long-term and strategic plans to meet the area’s future development needs. We will continue to adopt a holistic and integrated approach in designing the area with people in mind, work with partners and communities to implement key infrastructure, and carry out active promotion and place management activities. We will also engage investors to garner more interesting business concepts and ideas. This will take us closer to our vision of making Marina Bay a choice destination for all, one that promises Singaporeans and visitors alike a brand-new, live-work-play experience.

Ching Tuan Yee is Executive Architect, Urban Planning Section, Urban Redevelopment Authority, while Benjamin Ng is Place Manager, Marina Bay Development Agency, Urban Redevelopment Authority

Source : Business Times - 22 Mar 2008

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MGPA’s Marina View project to cost $5b

Posted by lushhomeonline on March 19, 2008

Devt to have over 2.6m sq ft in two towers of more than 40 storeys each.

MACQUARIE Global Property Advisors (MGPA) will spend about $2 billion building a commercial complex on two development sites at Marina View that it clinched last year.

With the sites having cost close to $3 billion, the total investment will be around $5 billion.

MGPA bid for the two sites at separate public tenders just three months apart. It paid $1,409 per square foot per plot ratio (ppr) for the first parcel in September 2007 and $952.90 psf ppr for the second in November that year.

The second parcel does come with a requirement to provide a hotel component.

Speaking at the building agreement signing ceremony yesterday, MGPA CEO (Asia Investments) Simon Treacy said that there could be more bargains in the offing here.

‘The next six to nine months will have even better pricing available,’ he said.

Mr Treacy did not give details of future acquisitions here but was bullish on the office sector, where he believes rents can rise between 10 and 25 per cent this year.

MGPA’s Marina View development is expected to have a total gross floor area (GFA) of more than 2.6 million sq ft in two 40-storey-plus towers with a 20-metre-high podium.

According to the conditions of the tender, at least 70 per cent of the GFA of the first site must be developed as office space. The second site must have at least 60 per cent office space.

Also speaking at yesterday’s ceremony was MGPA CEO (Asia Developments) Michael Wilkinson, who revealed that there will be a 250-room luxury hotel. He also said that the retail podium is likely to have a significant number of F&B outlets to support the offices.

While a residential component is allowed, Mr Wilkinson said that this is not likely at the moment. However, he said that the design has not been finalised and MGPA is having ‘extensive discussions’ with the authorities to settle this.

MGPA has invested about $4.5 billion in Singapore over the last 15 months. Other major acquisitions include Temasek Tower, which it bought for $1.04 billion in March 2007.

Source : Business Times - 19 Mar 2008

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Aussie firm inks $5b Marina Bay contract

Posted by lushhomeonline on March 19, 2008

AUSTRALIAN company Macquarie Global Property Advisers (MGPA) is investing $5 billion in an integrated commercial development in Marina Bay and looking for more investments in Singapore and the region.

MGPA’s chief executive for Asia developments, Mr Michael Wilkinson, said at the development’s signing ceremony yesterday that the company is optimistic about Singapore property .

Mr Simon Treacy, who heads the firm’s Asia investments unit, agreed, saying: ‘Fundamentals are great in the medium to long term.’ He added that MGPA is keen to invest in Singapore’s residential, retail and office sectors.

The $5 billion investment will be the private equity fund management firm’s largest in South-east Asia although it has invested $4.5 billion in Singapore over the past 18 months.

‘MGPA’s participation is a demonstration of the growing interest from foreign real estate investors in Singapore,’ said Minister of State for National Development Grace Fu at yesterday’s signing ceremony for the project.

Ms Fu, the guest of honour, said the Government is committed to supplying adequate land for prime office developments. The new area at Marina Bay will provide about 2.82 million sq m of office space - more than twice the size of London’s Canary Wharf, she said.

MGPA’s Marina View development alone will yield about 200,000 sq m of space.

It had successfully tendered for the first 1.02ha Marina View site with a $2.02 billion bid last September.

The Australia-based firm then won the second 0.9ha site last November at a $950 million bid.

The first office building will be completed in 2011, and the second - which will boast a luxury hotel with at least 220 rooms - will be ready a year later.

STRONG OPTIMISM

‘Fundamentals are great in the medium to long term.’

MR SIMON TREACY, who heads MGPA’s Asia investments unit, explaining the firm’s confidence in Singapore property . He says the firm is keen to invest in the residential, retail and office sectors.

Source : Straits Times - 19 Mar 2008

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Macquarie still optimistic over real estate

Posted by lushhomeonline on March 19, 2008

Even as some market observers are saying that the Singapore property market is weakening, Macquarie Global Property Advisers (MGPA) is still optimistic and sees value in the office, retail and residential sectors.

“There are still some good bargains around, and in the next 6 to 9 months, there might be better pricing value,” said MGPA’s chief executive (Asia investments) Simon Treacy at the signing of the building agreement for the second land parcel at Marina View. The private equity real estate firm won the tender for both Marina View sites last year.

“When completed in 2012, MGPA’s Marina View development will yield about 200,000 sq m of office facilities,” said Ms Grace Fu, Minister of State for National Development. “It will add to the critical mass of prime office space in our CBD and offer more location choices for business and financial services which want to grow their operations.” MGPA said that the development (picture) will include about 250 five-star hotel rooms, and is now in talks with some hotels for a tie-up.

“It will be the first office complex in Marina Bay to be integrated with a luxury hotel,” said Ms Fu. Investors find Singapore attractive, with foreign direct investments to Singapore increasing to $14 billion last year from $6.7 billion in 2006, she added.

“There’s still a lot of latent demand for office space, and there’s limited supply in the next couple of years,” said Mr Treacy, adding that Singapore would follow Hong Kong’s pace where new office building space is taken up very quickly.

He expects office rents in Singapore to rise 10 to 25 per cent this year.

“This reflects strong regional growth in Asia and solid demand for international grade office space. So we’re comfortable and we still see growth in the medium term in Singapore,” said Mr Treacy.

Source : Today - 19 Mar 2008

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Macquarie Global Property unveils plans for Marina View land parcels

Posted by lushhomeonline on March 18, 2008

Macquarie Global Property Advisors (MGPA) says it expects office rentals in Singapore to remain hot, jumping by 10 to 25 percent this year.

The Australian private equity real estate fund management firm is converting two plots of land at Marina View into twin office blocks. The two towers, expected to be completed in 2012, will also house a luxury five-star hotel.

These land parcels drew top dollars from Macquarie Global Property last year. Costing a total of S$3 billion, the sites will soon enjoy a S$5 billion makeover.

Site B, which Macquarie won last December for just under S$953 million, and Site A, for S$2 billion in September - are both on a 99-year lease.

Formerly known as Marina View Parcels A and B, the two-hectare site will be transformed into twin luxury office buildings, one of which will also house a 220-room five-star hotel.

Macquarie expects to announce in the next 3 to 4 months who they will be working with on the hotel.

It says the towers, due to be completed between 2011 and 2012, are well-timed to catch the growing demand for office space.

Simon Treacy, CEO, Asia Investments, MGPA, said: “I think around Asia, we are extremely busy - we see good value emerging around the region. In Singapore, we also think that there will be increased demand in the office sector - rents are likely to grow 10 to 25 percent this year.

“I think over the medium term, people will be surprised because they’ve underestimated the demand in Singapore for modern international grade office space.

“And we’ve seen that in Japan for 2003 and this year in Hong Kong. And, I think it’s a reflection of the solid economy of Singapore and the ongoing growth in a lot of the financial service sectors and wealth management in particular.”

The towers will be more than 40 storeys high and designed by Australian architect Denton Corker Marshall, who also designed the Melbourne Museum and the Australian Embassy in Beijing.

About 60 percent of both buildings will be set aside for office use: Tower A will house 130,000 square metres, and Tower B, 113,580 square metres.

Besides this project, Macquarie Global Property says it is looking out for other bargains.

Mr Treacy said: “I think over the last two years, a lot of investors have probably overlooked and undervalued Southeast Asia. I think now people are seeing very good fundamentals down here, and I think our timing was very good in making a number of acquisitions. We still think there is a very good value in buying… over the next 6-9 months.”

Office rentals in Singapore have been surging because of growing demand and a lack of supply. But more office space is expected to enter the market.

The government is targeting to double office space in the Central Business District to an estimated 2.82 million square metres. - CNA/ch

Source : Channel NewsAsia - 18 Mar 2008

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Office demand unaffected by global credit crunch

Posted by lushhomeonline on March 13, 2008

No threat of financial sector redundancies: URA

The credit crunch has so far failed to dent demand for office space in Singapore or derail its bid to become Asia’s leading financial centre, a senior member of the city-state’s Urban Redevelopment Authority (URA) told Reuters.

Speaking at the annual MIPIM trade fair in Cannes on Tuesday, Choy Chan Pong, head of land administration at the URA, said that Singapore had not felt the threat of vast financial sector redundancies and its construction boom continued.

‘We have not seen any evidence of a decline in demand for office space, and for now most financial institutions in Asia are still hiring,’ he said.

The URA said earlier this week that it planned to double the size of Singapore’s Marina Bay financial district to 2.82 million square metres - or twice the size of London’s Canary Wharf financial district - as international financial sector occupiers continued to seek presence in the city.

The authority had set aside 101 hectares of green parkland directly adjacent to the Marina Bay financial district that would serve as ‘lungs’ for the city, and which would never be sold for office schemes, at any price.

‘We have had offers from several Middle Eastern developers and investors to buy the land we have allocated for the Marina Gardens but we will never sell it,’ Mr Choy said. ‘It stops Singapore from becoming a concrete jungle. It is priceless.’

Standard Chartered Bank and DBS Bank have agreed to take a total of 111,500 square metres of space at the Marina Bay Financial Centre, a 438,000 square metre office and residential project being developed by Keppel Land, Cheung Kong Holdings/ Hutchison Whampoa and Hongkong Land.

According to data from global property broker Cushman & Wakefield last month, Singapore prime office rents climbed 78 per cent in local currency terms in 2007 but Mr Choy quelled fears that this surge in rental costs had begun to price some occupiers out of the market, and towards rival markets of Tokyo and Hong Kong.

‘You have to remember this rental increase was from a very low base. Singapore is still cheaper than Hong Kong . . . and Tokyo is almost full,’ Mr Choy said.

Hong Kong is the second most expensive office market in the world, behind London, with annual office rents averaging US$239 per square foot. Tokyo is in third place with annual office rents at US$210 per square foot. Singapore is in seventh place.

Its annual office rents average US$130 per square foot.

‘We do not expect financial institutions will have to choose one market over another, so we have no concerns about growth of China or Japan,’ Mr Choy said.

‘Realistically, banks know they have to be in all three cities because we serve different markets, and if banks want access to India or South East Asia, they need to be in Singapore.’

Source : Business Times - 13 Mar 2008

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