GENTING International’s Resorts World at Sentosa (RWS) has completed the syndication of a $4 billion credit facility for its integrated resort (IR), at an interest rate of 175 basis points above the Singapore Swap Offer Rate. The tenure of the loan - one of the biggest undertaken in Singapore - extends to 2015.

On Jan 4, Singapore’s other IR operator, Las Vegas Sands, said it had entered into a credit agreement to provide finance of up to $5.4 billion, at an interest spread of 2.25 per cent above the Singapore Swap Offer Rate for maturities of one, two, three and six months.

RWS chief executive Tan Hee Teck yesterday thanked the lenders who ‘have shown incredible confidence in our management and our business model of a family entertainment destination’.

‘We are grateful to supporters who are rooting for us, and are operating at full throttle to deliver a top-class destination,’ he said.

Ten banks participated in the syndication, which was jointly underwritten and bookrun by five original mandated lead arrangers - DBS, OCBC, HSBC, RBS and Sumitomo Mitsui Banking Corporation.

The expanded mandated lead arrangers include Malayan Banking Bhd, Bank of Tokyo-Mitsubishi UFJ (S), Bangkok Bank Public Company (S), CIMB Bank Bhd (S), BNPP (S), Calyon, Commerzbank (S) and National Australia Bank (S). DZ Bank Deutsche Zentral-Genossenschaftsbank (S) and JPMorgan Chase Bank (S) joined as arrangers.

Mr Tan said the loan syndication was completed in about two months despite the difficult global credit environment.

DBS managing director (syndicated finance) Boey Yin Chong said: ‘It’s a fantastic result given the current volatility of the markets and demonstrates again, the banks’ long-term belief in and support of the project, in RWS and in Singapore itself.’

Source : Business Times - 25 Apr 2008

Resorts World at Sentosa (RWS) announced on Thursday that it has completed the syndication of $4 billion credit facilities for its integrated resort development, closing one of the largest loans ever successfully undertaken in Singapore.

The borrowings were made at an interest rate of 175 basis points above Singapore Swap Offer Rate. The tenure of the loan extends to 2015.

A total of 10 banks participated in the syndication, jointly underwritten and bookrun by five original mandated lead arrangers: DBS Bank, Oversea-Chinese Banking Corporation, The Hongkong and Shanghai Banking Corporation, The Royal Bank of Scotland plc and Sumitomo Mitsui Banking Corporation.

The expanded mandated lead arrangers include Malayan Banking Berhad, The Bank of Tokyo-Mitsubishi UFJ, Singapore Branch, Bangkok Bank Public Company, Singapore Branch, CIMB Bank Berhad, Singapore branch, BNPP Singapore branch, Calyon, Commerzbank AG, Singapore branch and National Australian Bank Limited, Singapore branch. The Singapore branches of DZ BANK AG Deutsche Zentral-Genossenschaftsbank, and JP Morgan Chase Bank, N.A, joined as arrangers.

The credit facilities will fund two-thirds of the integrated resort’s $6 billion project cost, with the remaining to be paid through equity raised through a successful rights issue in 2007 by RWS’s parent company, Genting International Public Limited Company.

Source : Business Times - 24 Apr 2008

VINCENT WEE checks out some of the premier residential developments in Singapore’s southern waterfront precinct

THE emergence of the concept of waterfront living is relatively recent in pragmatic Singapore where precious waterside real estate has always been the preserve of the all-important marine industry. But, in many other parts of the world, the waterfront has always been the premier choice for residence.

From the French Riviera to the Palm Islands in Dubai, waterside living epitomises class and prestige. It exudes that special lifestyle appeal to both home-owners and investors. The panoramic views and the calming effect of surrounding waters offer city-dwellers a much-needed respite from the hustle and bustle of urban life.

Located just a five-minute drive away from the Central Business District, Keppel Bay has emerged over the past few years as a true waterfront precinct, presenting the best in waterfront and urban lifestyles. It is part of the vibrant waterfront city in southern Singapore comprising Sentosa and the upcoming Sentosa integrated resort, HarbourFront and VivoCity, Singapore’s largest entertainment and retail hub.

Keppel Land’s Caribbean condominium was the first residential development launched in this waterfront district. The property, which sits on Keppel Corp’s former dockyards, incorporates these historical features in its design and architecture, transforming them into water channels which bring the sea right to the doorsteps of homes. The 969 units of luxurious two- to four-bedroom apartments and penthouses at Caribbean have been sold out, with 168 units leased out as corporate residences.

Meanwhile, Keppel Land’s latest project, Reflections, presents a new face to world-class waterfront living with its stunning architecture by master architect Daniel Libeskind. A symphony of six glass towers and 11 villa apartment blocks will house 1,129 luxury homes along a 750-metre shoreline - all of which enjoy unparalleled views of the waterfront, the Keppel Club golf course and lush surrounds.

Combining heroic forms and classical elegance, the towers rise spontaneously as ‘beacons of light’ at the gateway of Singapore’s southern waterfront hub comprising Keppel Bay, HarbourFront and Sentosa. The towers will rise to 24 and 41 storeys while the spacious villa apartments are six to eight storeys high. Crowning the towers are lush sky gardens on sloping rooflines, and are linked by sky bridges, providing pockets of open spaces and platforms with near 360-degree views of the spectacular surrounds.

All 620 units in Phase One have been fully sold. The development is scheduled for completion in 2013. In the pipeline within the Keppel Bay precinct are three more sites for future development - two on the mainland and one other plot on Keppel Island.

The creation of Sentosa Cove, meanwhile, has been a 20-year process since the Cabinet first approved redevelopment plans to create it. Land parcels at the much touted up-market enclave of residential properties with unrivalled oceanfront views and marina lifestyle amenities are now almost completely sold out. Concessions have been made to allow landed properties to be made much more accessible to international buyers with the aim of creating an international resort community which will have a place on the global real estate map. This has provided a boost to Sentosa as a resort destination for the world’s rich and famous, especially with its marina and exclusive resort lifestyle concept.

The prestigious marina residential community comprises a range of housing options from condominiums to terrace houses to individual bungalows, some of which even have their own berths attached to them. Developers involved include well-known names like the Lippo Group as well as others like Ho Bee .

Sentosa Cove is divided into the southern and northern residential precincts and the central marina precinct where the One Degree 15 Marina Club is located. There are several islands within the northern and southern precincts and a system of locks and canals connects all the developments to the sea, thus enabling residents to bring their boats right up to their doorstep.

The area promotes a sense of exclusivity and a get-away-from-it-all vibe with its physical separation from the main island and the breezy ambience that comes from being right at the water’s edge.

Source : Business Times - 24 Apr 2008

Email lushhome@gmail.com  for more information on waterfront residential projects

Job includes building of three hotels, casino, showroom

GENTING International’s Resorts World at Sentosa (RWS) has awarded a $1.05 billion construction contract to a joint venture between Kajima Overseas Asia and Tiong Seng Contractors.

This takes total contracts awarded so far for the $6 billion integrated resort to more than $2 billion. And it is another big win for Kajima-Tiong Seng, which is also the principal contractor for the two commercial towers at Marina Bay Financial Centre.

At RWS, Kajima-Tiong Seng will construct three of the six hotels as well as the resort’s thoroughfare, FestiveWalk.

The hotels are the 130-suite Maxims Residences, the 470-room Hotel Michael by architect Michael Graves and the 400-room Festive Hotel.

FestiveWalk is a half-km alfresco strip where the resort’s main shopping, eating and entertainment outlets will be located.

Kajima-Tiong Seng will also build a 15,000 sq m casino in the basement of Maxims Residences and the dual-purpose 1,600-seat Le Vie Showroom, which doubles as the Plenary Hall, in Festive Hotel.

Michael Chin, executive vice-president of projects at RWS said: ‘This contract covers some of the key components of the development, and we were looking for a contractor with the relevant experience and reputation for completing projects on time.’

With underground construction and superstructure works still going on, Mr Chin said the resort’s buildings can be expected to start rising from the site soon.

‘Construction is progressing steadily and we are on track for opening in early 2010,’ he said.

Companies that have been awarded contracts at RWS so far include Sembawang Engineers and Constructors, Kingsmen Creatives, TBWA and China Jingye Construction Engineering Contract Company.

Earlier this month, RWS awarded a $340 million contract to Singapore-listed Low Keng Huat to build a 360-room Hard Rock Hotel at the resort.

Source : Business Times - 24 Apr 2008

A SINGAPORE-JAPAN joint venture has been awarded a $1.05 billion contract to build three hotels on Sentosa Island, to date the juiciest plum dished out by the integrated resort.

Kajima-Tiong Seng beat several other companies to build the five-star hotels, officials from Resorts World at Sentosa announced yesterday.

The hotels, which are expected to provide over 1,000 rooms, will be the centrepiece of a $6 billion development on the resort island that will include a casino and a theme park.

The contract is the resort’s biggest to date and brings the value of deals awarded to $2 billion.

Kajima-Tiong Seng is a tie-up between Japanese-led Kajima Overseas Asia and local Tiong Seng Contractors which also built the St Regis Singapore. The firm will also construct the Sentosa resort’s main thoroughfare, Festive Walk.

The three hotels are the latest in a string of big construction projects handed out here. They include a $400 million contract to Sembawang Engineers and Constructors to build another massive resort nearby called the Marina Bay Sands’ North Podium. It is expected to feature a casino, theatres and a retail arcade.

But the hefty construction contracts may not be all good news. They could add more pressure to an industry already stretched by a manpower crunch and the rising costs of raw materials, said Knight Frank’s director of consultancy and research Nicholas Mak.

Construction overheads have gone up 40 per cent in the past two years and are expected to climb another 15 per cent to 20 per cent this year. They have been driven by steep increases in the prices of steel and concrete.

The spikes have already forced big projects like the two integrated resorts to revise their cost estimates.

Last November, Resorts World upped its budget from $5.2 billion to $6 billion.

Marina Bay Sands has also had problems keeping to its projections. Last August, its parent company said that costs are expected to rise by up to US$1.4 billion (S$1.89 billion) - a significant increase on the original US$3.6 billion price tag.

Today’s construction industry is red hot, eclipsing even the heyday of 1997. Over $24.5 billion in contracts were awarded last year, up 46 per cent from the $16.8 billion awarded in 2006 and just above the $24 billion in the boom year of 1997.

Economists have forecast that the industry will grow between 10 per cent and 25 per cent this year, fuelled by developments like the two integrated resorts and the Downtown MRT line.

Government plans to defer about $3 billion in public sector projects to ease pressure on industry costs is also unlikely to make much of a dent.

Construction cost consultancy Rider Levett Bucknall was reported as saying that the move ‘is expected to have a limited impact on relieving construction demand as it will represent around 10 per cent of annual demand’.

Contractors said that aside from raw material costs, labour is their other big headache as ‘wages for workers are off the charts now’.

Staff poaching is a huge problem with companies making up for their shortage by offering workers from rival firms up to $800 more a month.

One contractor who declined to be named said: ‘Every three to four months, we have to revise our pay. If we cannot keep up, the workers will leave.’ 

Source : Straits Times - 24 Apr 2008

Resorts World at Sentosa has awarded its largest building contract to date, worth S$1.05 billion, to a joint venture between major Japanese contractor Kajima Overseas Asia Pte. Ltd. and local player Tiong Seng Contractors (Pte) Ltd.

This brings the total building contracts awarded so far to over S$2 billion. The S$6 billion integrated resort is slated for completion in early 2010.

Kajima-Tiong Seng will construct three of the six hotels in Resorts World and the resort’s thoroughfare, FestiveWalk.

The three hotels - Maxims Residences, Hotel Michael and Festive Hotel - will offer some 1,000 suites and rooms out of the 1,800 to be found throughout the resort.

The contract also includes the construction of a 15,000-square-metre casino located at the basement of Maxims Residences which will feature gaming rooms, suites and lounges.

The joint venture will also build a dual purpose 1,600-seat Le Vie showroom, which doubles as a Plenary Hall, in Festive Hotel. - CNA/vm

Source : Channel NewsAsia - 23 Apr 2008

Resorts World at Sentosa announced on Wednesday it has awarded a $1.05 billion building contract to a joint venture between Kajima Overseas Asia Pte Ltd and Tiong Seng Contractors (Pte) Ltd.

The award — the biggest awarded to-date by Resorts world — marks a milestone for the $6 billion integrated resort slated for completion in early 2010, and tallies the total building contracts awarded to date to a worth of over $2 billion.

Kajima-Tiong Seng will construct 3 of the 6 hotels in RWS, and the resort’s thoroughfare, FestiveWalk. The contract also includes the construction of the casino and the Le Vie Showroom, where the resort’s residential theatre production Le Vie will reside. — BT Newsroom

Source : Business Times - 23 Apr 2008

Construction and property developer KSH Holdings has secured a S$126.8 million contract to build a condominium development at Singapore’s Sentosa Cove.

The contract is the first of its kind to be awarded by Lippo Marina Collection for the construction of a luxury housing development at the site.

This will be the group’s fifth high-end luxury residential property project at Sentosa cove. The deal will bring KSH holdings order book to S$770 million.

In the last four months, project contracts for the developer have added up to some S$354.4 million, in comparison to a total of S$510 million for 2007.

Work on the site is to begin this month and the project is expected to be completed by December 2010. - CNA /ls

Source : Channel NewsAsia - 17 Apr 2008

GENTING International has awarded a $340 million contract to Singapore-listed Low Keng Huat (S) Ltd to build the Hard Rock Hotel at Resorts World at Sentosa (RWS).

The latest construction award brings the tally of construction contracts to over $1 billion.

The Hard Rock Hotel will be the first and only such hotel here. It is also one of six hotels at the $6 billion RWS development.

Expected to open in early 2010, the Hard Rock Hotel will have 360 keys (rooms), including nine suites and 351 rooms.

It will also have conference facilities, more than 20 meeting rooms and a large column-free ballroom with seating for 7,300 guests.

Michael Chin, executive vice-president of projects at RWS, said that Low Keng Huat was selected from a tender exercise which drew ’several bids’.

He added that the construction of the resort is entering a new phase in which the superstructures such as the hotels will be built.

‘Low Keng Huat’s proven track record and expertise in building construction and property development, especially in hospitality-related sectors, were the key factors in our selection,’ Mr Chin said.

One of the challenges in the construction of the Hard Rock Hotel will be the ballroom.

Low Keng Boon, managing director at Low Keng Huat, said the difficulty in constructing the ballroom lies in the fact that it is completely column-free, without the support of beams for a foundation.

With a floor area of 6,500 sq m and at a height of 11m, Mr Low explained that extremely large trusses will have to be specially manufactured to withstand the weight of the entire structure.

RWS will have some 1,800 rooms, spread across its six hotels of varying themes. Topping the list are Maxims Residences, Hotel Michael and the Hard Rock Hotel.

Source : Business Times - 9 Apr 2008

Construction of Singapore’s first Hard Rock Hotel which will be located at the upcoming Resorts World at Sentosa will begin in May.

The 360-room hotel is one of six to be developed and fans and visitors will be grooving to it when the famous chain opens in 2010.

Together, the hotels will provide 1,800 rooms but this might still not be enough.

Elena Arabadjieva, Deputy Vice-President, Resort Marketing, Resorts World at Sentosa, said: “We have 15 million visitors projected for the first year of operation, out of which 60% will be from overseas. We will definitely have challenges accommodating all our guests. Therefore, we are working with the hotels on the island to forge out some partnership.

“In the years to come, we are looking at different opportunities, from block booking part of the properties and other forms of partnership.”

The S$346 million five-star hotel will include 20 conference rooms and they are expected to be in high demand especially, the massive ballroom which will have no columns.

This will be located at the basement of the Hard Rock Hotel and could take up to 7,300 people.

The Hard Rock Hotel chain has operations in the US and around the region, including Bali, Penang and Pattaya.

Resorts World has been promoting its wide range of offerings in trade shows overseas.

It’s expected to rev up its marketing activities in 2009 in Southeast and North Asia, Australia as well as Europe.

The Hard Rock Hotel is part of the S$6 billion resort development.

It’s also the first of six hotels to begin construction work after the building contract was awarded to Low Keng Huat Limited.

The construction firm edged out two other bidders to secure the deal.

Resorts World said Low Keng Huat was selected based on its proven track record and its expertise in building construction and property development, especially in the hospitality-related sectors.

This deal is the latest in a string of construction contracts amounting to over S$1 billion that have been awarded so far. - CNA/vm

Source : Channel NewsAsia - 8 Apr 2008