JULY 12, 2004
2 sticking points over state land management
News that seven of 24 sites offered for tender may be taken back at year-end dampensthe enthusiasm of realty firms

By Daryl Loo

PROPERTY managers looking forward to a windfall from a project where they manage state land, had cold water poured on their hopes last week, when they were told that seven of the 24 sites originally offered may not be available after the end of the year.

The seven sites include a 30.6ha plot along the Marina Bayfront stretch, the biggest of the lots on offer.

The announcement by the Singapore Land Authority (SLA) at the tender briefing last Monday caught those present off guard.

A director of a property management firm, who declined to be named, told The Straits Times later: 'We're definitely not as enthusiastic about the project now.

'It seems the SLA does not want to commit on these seven sites, which makes the project less attractive.'

A spokesman for the authority explained that it may have to take back the seven sites come Dec 31 this year because the Urban Redevelopment Authority 'has plans for them which might kick in next year'.

'For example, there are plans for infrastructure projects on certain parts of the Marina Bayfront site from next year, which may take three to four years to complete,' he said.

Short-term uses, he added, such as for concerts, sports events and funfairs, can still be found for the seven plots, and after Dec 31, for parts of the sites not affected by these plans.

'If any of these seven sites are not available for management after Dec 31, SLA might replace them with other plots with potential for interim uses,' the spokesman said.

Whoever wins the tender, which was called on June 30, will manage 24 plots of land totalling 44.88ha, all within the city area.

The contract is for three years, with an option to renew for another three years.

Another sticking point for industry players is that the tender is open only to those with at least five years' relevant property management experience, a requirement they said is too stringent.

The vice-president of realty firm Dennis Wee Group, Mr Chris Koh, said: 'We don't meet the five-year criteria, but we have the contact network and infrastructure to make good use of these sites.

'If the criteria weren't so strict, we'd definitely be interested in tendering.'

However, the SLA is adamant about keeping to its five-year requirement, to 'make sure the project goes to parties with the right level of experience'.

Those who do not meet this qualification could partner a more experienced firm, the spokesman suggested.

Despite the conditions, some companies, like Premas International, Colliers International Asset Management and Knight Frank Estate Management, are still keen on putting in a bid before the July 28 closing date.

The managing director of Knight Frank Estate Management, Mr Jordan Neo, said: 'This is a unique opportunity for firms like ours to bring together our different departments - like property management and marketing - to make the best use of these sites.'

SLA said that if the project is a success, it will offer more sites.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

Business Times - 12 Jul 2004

Centrepoint pays $31m for Serangoon Road site
Purchase brings landbank acquired in past year to 656,700 sq ft

By KALPANA RASHIWALA

CENTREPOINT is continuing to restock its residential landbank, buying its fifth site over the past one year. Sources told BT it recently inked a $31 million deal to buy a 56,263 sq ft freehold site at the corner of Serangoon and St Michael's roads. Currently standing on the site is the United Motor Works building.

With this latest purchase, the property arm of listed Fraser & Neave has quietly acquired 656,700 sq ft of land for residential development in deals totalling about $260 million since late last year.

The four earlier properties were bought at relatively attractive prices ranging from $210 to $250 psf of potential gross floor area inclusive of development charges (DC), if any.

As for the latest purchase of 1123/1125/1127 Serangoon Road, Centrepoint's land cost works out to about $265 psf per plot ratio, inclusive of an estimated DC of $10.6 million.

A new condominium on the site is likely to break even at about $480 psf, estimate sources. The plot is large enough to be redeveloped into a condo with about 116 units averaging 1,300 sq ft each. The site has a 2.8 plot ratio (ratio of maximum gross floor area to land size) and is zoned for residential/commercial use. However, market watchers say Centrepoint can do a full residential development on the plot.

The private treaty deal was brokered by CB Richard Ellis, which marketed the property on behalf of the seller, United Motor Works of Singapore. The company, controlled by members of the Chia family, is currently under members' voluntary winding up. The liquidator is NTan Corporate Advisory.

Two of Centrepoint's five land purchases over the past year involved collective sales: Faber Hills Condo in April, and Woodsville Court in February. Both are freehold sites.

Late last year, the company bought a sprawling site of about 170,000 sq ft at Hindhede Road in Upper Bukit Timah from a unit of Singapore's Hong Leong Group. The site came with a fresh 99-year lease topped up earlier in 2003.

Centrepoint also picked up a 110,117 sq ft freehold site at Paya Lebar Crescent from Lee Rubber subsidiary Kallang Development in the fourth quarter of 2003.

Property consultants say that the flow of deals for large freehold residential sites through collective sales is slowing. However, a handful of biggish residential sites from other sources are still expected to make their way to the market.

Last week, BT reported that CK Tang chairman Tang Wee Sung and his younger brother Wee Kit are teaming up to sell two adjoining properties, 27 and 33 St Thomas Walk. They're hoping the properties, with a freehold combined site area of 139,842 sq ft, will fetch over $200 million.

Meanwhile, the government will continue to freeze sales of 99-year leasehold housing land under the confirmed list for the second half of this year. However, it will continue to make available such sites through the reserve list. A reserve-list site is released for tender only if at least one party makes a successful application, undertaking to bid at a minimum acceptable price.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

JULY 13, 2004
WWII bomb detonated outside CBD

SINGAPORE - Singapore authorities detonated a Japanese World War II bomb found at a construction site minutes from the Central Business District, police said on Tuesday.

The aerial bomb was found by a construction worker late on Monday, and the area was cordoned off, said police spokesman Siow Cheng Cheng.

The explosive ordinance division from the Singapore Armed Forces detonated the device on Tuesday.

'It's a very rare occurrence,' she said when asked how many war relics have been found recently.

The construction site was located off East Coast Park Road - a few kilometres from the CBD and off the main highway leading to Changi Airport.

Japanese forces occupied Singapore from 1942 to 1945 before it was returned to the British at the end of World War II. -- AP

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

from Wallpaper* mag

"In Singapore, Alsop Architects has been brought in to create an £18m redevelopment aimed at rejuvenating the historic Clarke Quay quarter by the Singapore River."


anyone got more info? sounds very exciting... dunno if alsop's style will be toned down just because it's in singapore... hope not..

http://www.ir.capitaland.com/ReleaseDetail.cfm?ReleaseID=101981

CapitaLand enhances asset value for Clarke Quay

Singapore, 17 February 2003 - Following CapitaLand Limited’s FY2002 results announcement, the company is pleased to announce that its wholly-owned subsidiary, CapitaLand Commercial Limited (CCL), has completed a preliminary concept for the new Clarke Quay as part of its plan to create value through intensive asset enhancement. CCL completed the preliminary concept based on market research and has appointed world-renowned UK architectural firm, Alsop Architects, to further develop this concept.

CapitaLand will leverage on its core competencies in real estate to create value through asset enhancements. Its vision is to create Singapore’s premier food, fashion and leisure precinct at Clarke Quay. Bold and creative ideas are currently being explored. The new retail concept, coupled with Clarke Quay’s unique historical heritage, prime Singapore River frontage and proximity to the new MRT station will make it an iconic development in South East Asia. Resolution of the retail concept plan has just completed and work is targeted to start in the second half of 2003 and will take about 18 months.

Mr Pua Seck Guan, Retail Managing Director, CapitaLand Commercial said : “Before starting on the revamp we want to secure at least 30% commitment in leases based on the new retail concept. We could spend between $50 - $100 million in the redevelopment work. Feasibility studies are underway and the work for each phase will only begin after we are convinced that it can generate our target returns. The net lettable area for Clarke Quay will also be maximized and will increase from 230,000 sq ft to 270,000 sq ft. Subject to the approval of the authorities, we also plan to build a bridge across the Singapore River to the new Clarke Quay MRT station. We target to bring the net property yield of Clarke Quay up to a range of 6 – 7%.”
.................................

Rendering from http://www.cbre.com.sg/retail/clarkequay.html
http://www.cbre.com.sg/retail/clarkequay-300.jpg

huh i dun see anything thats £18m

The article uses Sing dollars, so £18m= about S$56 million..........:)

saw this beside pie - beside the siemens building... thought it looked interesting

http://img.photobucket.com/albums/v47/sybarite/singapore/IMGP5100.jpg

Geez..it sounds like the condo!

Shape looks interesting but the draping is an eyesore! I see some curves...

i see baby blue paint :O!!!
i hope it'll turn out nice :(

some water treatment plant thing at airport road.. thougt it looke dinteresting

http://img.photobucket.com/albums/v47/sybarite/singapore/IMGP5225.jpg

Yup.Would look stunning if built tall, at Marina and as a hotel.:cool:

I just think "Big Fat Marshmallows".

Isnt this an office building in an industrial estate?

dont know?

A high-tech highrise factory cum office?:D

Duno lah....all I know is that it is at Kallang Basin....quite near to Siemens's new scraper.

kinda futuristic!

30 stories HDB blocks at Redhill... Pictures taken on 27th July. Topped out.

http://membres.lycos.fr/pengui/tour/redhill_hdb01.jpg
http://membres.lycos.fr/pengui/tour/redhill_hdb02.jpg

yellow :(

13 firms submit bids to manage group of state sites

By Joyce Teo

THIRTEEN companies are vying to manage 24 vacant state sites for three years, a positive response that even the Singapore Land Authority (SLA) did not expect.

The first-of-a-kind tender by the SLA, inviting managing agents to put the empty sites to good interim use, closed at noon yesterday.

An SLA spokesman said: 'The response from the market has been overwhelming.'

Seven of the 24 sites on offer may not even be available after the year. They include the biggest site offered - a 30.6ha plot along the Marina Bayfront stretch - and the Orchard Turn plot above the Orchard MRT station.

Bidders had to quote a monthly management fee and an incentive-based percentage fee which they will earn from any additional annual revenue generated above $300,000 - the total that the SLA currently earns from the 24 sites.

The bids for the monthly management fee ranged from $2,250 by E M Services to $332,700 by CPG Facilities Management.

The companies offered 20 per cent and 49.25 per cent as their incentive bids, respectively.

The bids for the incentive-based fee ranged from 3 per cent, from Colliers International Asset Management, to 50 per cent from two companies, West Themes, and Okoku Real Estate.

Colliers bid a monthly fee of $5,000, West Themes $3,000, and Okoku $1 to $10,000.

The unexpectedly strong interest was likely because it was 'an unprecedented exercise', said Mr Tay Kah Poh, executive director of property consultancy Knight Frank - which itself entered a management fee bid of $8,000 to $16,500 and an incentive bid of 20 per cent.

The SLA has said it will offer more sites if the project is a success.

Mr Kelvin Lim, managing director of Jurong-based property management company Hean Nerng Holdings, said his monthly fee bid of $39,999 and an incentive bid of 4 per cent took into account staff and marketing and how much it would cost to set up an office in town.

He plans to use some sites for concerts and night markets.

Proposals will be reviewed by the SLA in consultation with the relevant regulatory authorities, including the Urban Redevelopment Authority.

SLA said it would also consider the experience and capabilities of the respective bidders. It expects to announce the award by the end of next month.

First time here, very impressive job done for some of you old timers. Have seen some great pics in other forums.

Anyway i used to stare at the redhill 30 stories flat for the 3 odd years as it was coming up, was working nearby, well i have to say it's not really too impressive to look at. Could hv done better.

First time here, very impressive job done for some of you old timers. Have seen some great pics in other forums.

Anyway i used to stare at the redhill 30 stories flat for the 3 odd years as it was coming up, was working nearby, well i have to say it's not really too impressive to look at. Could hv done better.

Welcome to SSC! :)

Yah the redhill flats look a tad too colourful and the design seems dated, but overall theyre ok.

First time here, very impressive job done for some of you old timers. Have seen some great pics in other forums.

Anyway i used to stare at the redhill 30 stories flat for the 3 odd years as it was coming up, was working nearby, well i have to say it's not really too impressive to look at. Could hv done better.
Welcome from me too! :wave: Anyway I am not an old-timer, and I dont behave like one. However, raffie is obviously :ancient: :D

By the Redhill ones...must be the red and yellow blocks? I just saw them last week on the MRT, and I do have mixed feelings about them. ;)

AUG 8, 2004

Proactive moves to boost worksite safety

EVEN as the inquiry into the Nicoll Highway collapse continues, the Ministry of Manpower (MOM) intends to move in 'real time' and implement more stringent measures to beef up safety at worksites rather than wait for the end of the probe.

Acting Manpower Minister Ng Eng Hen acknowledged that there have been 'lapses' and 'shortcomings' in worksite safety, as revealed at the inquiry, and pledged yesterday to make worker safety and welfare a top priority this year.

He also promised to step up enforcement against errant employers and to introduce new measures to detect late payments, following recent cases involving cash-strapped construction firms.

'I think there has to be a clear signal that for those who are either errant in salary payment or not keeping to the worker safety framework, they will be taken to task,' he told reporters after attending his ministry's National Day observance ceremony.

'We will institute, for whatever measures that are existing, more enforcement actions, more prosecution, so that employers will have the right message.'

But the overall safety framework needs to be examined. Hence, he welcomed the scrutiny by the Nicoll Highway Committee Of Inquiry and said MOM is keeping close tabs on the details emerging each day. This will help in MOM's on-going review of worker safety systems, which is being done with the National Development Ministry.

His ministry will also review workplace safety legislation and study the best practices of developed countries and adapt relevant ones for Singapore, said Dr Ng.

But there will be no waiting for the end of the inquiry or the review before action is taken.

They will be done 'in real time', he said, adding that when the recommendations come out, these will also be acted upon.

In his speech to staff at the ministry, Dr Ng also spoke of the need to create a highly skilled and competitive workforce as Singapore moves up the value chain into new growth areas.

The MOM and the Workforce Development Agency, which has found work for 20,000 jobless Singaporeans, will up the ante on training programmes to prepare workers for these new jobs. p> But to fill current skills gap, companies are being allowed to hire foreign workers with 'special skills' and experience. He referred to the recently introduced S-pass, which is for foreigners who do not qualify for an employment pass and are over-qualified for work permits. 'This scheme helps local workers too,' he said, as employers must hire a certain number of Singaporeans before they can bring in an S-pass worker.

Turning to the issue of flexible wages, he said wage reform efforts are making 'good progress'. So far, the 'Swat' team responsible for helping companies make salary structures more flexible has held discussions with 930 firms.

And in line with the national effort to encourage marriage and procreation, Dr Ng said the MOM will '... facilitate and cajole companies to achieve a better work-life balance for their employees'.

Time is GMT + 8 hours
Posted: 24 August 2004 1758 hrs

Rebuilding of Nicoll Highway begins, work to finish by year-end
By Asha Popatlal, Channel NewsAsia

SINGAPORE : A S$3 million plan to rebuild Nicoll Highway was put into motion on Tuesday and if all goes to plan, motorists should be able to start using the road again by the end of the year.

April 20 is a day that Singaporeans will remember for a long time.

It was the day Nicoll Highway caved in, killing four workers.

Four months later, now that the area around the collapsed MRT worksite has stabilised, the rebuilding of the highway has begun.

Roads are usually constructed above soil. But in this case, because the soil below has been disturbed, the bored piling method will be used instead.

This will help to provide more stability to the road when Nicoll Highway is reconstructed.

Some 57 piles will go 50 metres into the ground. This work is expected to go on for the next two months.

Rajan Krishnan, director of projects at LTA, said, "Basically, the soil in this area has been disturbed by the collapse, we do not want to rest the road directly on that soil. We think it's prudent to use piles so that the weight of the road is carried by the good ground conditions below."

First, large holes will be drilled in the ground.

These will then be filled with cement to make sure the new road is stable and not affected by any soil movement.

Then, slabs of road will be laid, street markings will be painted and street lights put up.

By year-end Nicoll Highway will be ready for traffic.

The stretch that is being rebuilt spans 150 metres, and to make sure the nearby buildings are not affected by the rebuilding work, contractors will use special drilling techniques.

"We use pressure to force the casing of the pile into the road instead of trying to vibrate it into the ground, to minimise the disturbance and cause less vibration to the ground or to nearby structures," Mr Krishnan said.

Earlier, as part of the preparation, some 500 pieces of debris and crushed equipment were removed.

The cave-in was filled up and levelled off with good soil, and some 50 metres of Merdeka Bridge was cut off so any instability would not spread.

While plans to rebuild the highway are underway, there is no plan yet on how to reconstruct the collapsed Circle Line tunnels. - CNA

Copyright © 2004 MCN International Pte Ltd

Time is GMT + 8 hours
Posted: 30 August 2004 1948 hrs

Three-room flats offered for first time in Sengkang BTO project
By Asha Popatlal, Channel NewsAsia

SINGAPORE : For the first time, three-room flats are going to be offered in a new HDB Build-to-Order housing project in Sengkang, called Fernvale Grove.

Applications for the 156 three-room units and 352 four-room units started on Monday and will be open till 19 September.

Buyers of these and other Standard flats will also now be able to opt for ceramic floor tiles.

Also being done away with from now on is the condition that a person has to upgrade to a bigger HDB flat if he wants to be considered for the the Third Child Priority scheme.

The completed but unopened Sengkang LRT West Loop is also expected to be opened for passenger service by the time the flats are completed in four years' time. - CNA

Copyright © 2004 MCN International Pte Ltd

SEPT 1, 2004
Prices of 4-room flats likely to rise
But those of 3-room HDB units could drop by 5% in next six months, say property agents - because of new policy on housing for singles

By Joyce Teo

THE new policy letting singles buy bigger Housing Board (HDB) apartments is expected to push down prices of three-room flats and raise the value of four-room HDB homes.

This is because the small price gap between three- and four-room flats is likely to entice some singles to go for the larger flats which they previously could not buy, property agents told The Straits Times.

Chief executive Mohamed Ismail of real estate firm PropNex foresees three-room prices dropping by up to 5 per cent in the next six months.

He gave two reasons: The Housing Board is expected to resume building three-room flats after a 19-year break, and prices have already shot up too much.

A unit in Ang Mo Kio now costs on average $185,000, up from $175,000 last year, $160,000 in 2002 and just $153,000 in 2001, said C&H Realty's managing director, Mr Albert Lu.

Most three-room flats sold this year fetched $140,000 to $200,000 - though those in choice estates such as Marine Parade can go for up to $250,000.

Four-room flats went mostly for $220,000 to $290,000.

The prices for four-room flats are also likely to rise by 3-5 per cent in the next six months, Mr Mohamed predicted, following yesterday's announcement of the details of the new policy to let singles aged 35 and over buy flats of any size.

But demand for the five-room and bigger flats isn't likely to rise much, property agents say.

This is because they are beyond the reach of many singles aged 35 and above.

HDB said that, of the 3,158 unmarried flat buyers eligible for a housing grant each year from 2001 to last year, some 85 per cent have a monthly income of $3,000 or less.

There is also an oversupply of these flats, property agents said.

The new policy is also good news to flat sellers, particularly those finding it hard to sell their bigger units, said Chesterton International's research director, Mr Nicholas Mak.

Will another move, also announced yesterday, which makes fewer singles eligible for housing grants and cheap HDB loans by lowering the monthly income ceiling for getting such help from $8,000 to $3,000 dampen buying demand?

No, because bank loans are relatively cheap now, said property agents and consultants.

'Today's bank rates are really attractive,' said the vice-president of real estate firm Dennis Wee Group, Mr Chris Koh.

The changes could also give a small boost to demand in the low-end private property market, particularly 99-year leasehold condominiums, said Chesterton International's Mr Mak.

The expected rise in the prices of larger HDB flats may push some owners to upgrade to private homes, he said.

This upgrading demand by families is likely to more than offset the loss of sales to singles turning away from small private apartments such as studios and switching to the bigger HDB flats instead, he added.

The average prices of such small private apartments are between $380,000 and $500,000, compared to the average $235,000 valuation for four-room HDB flats and $315,000 for five-room units, he noted.

'Some singles could be attracted to the lower prices of HDB flats.'

All in all, increased buyer interest arising from the new rules may well add to the feel-good factor in the overall market, said a director at property consultancy DTZ Debenham Tie Leung, Mrs Ong Choon Fah.

This may help to drum up sales all round, she added.

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

um... going back to ceramic floor tiles is a bad.. bad.. move...

31-8-04

Sinsov Bldg sold for $34.1m in deal arranged by Cadmus

New owners plan $10-11m renovation, which will boost saleable area by 50%

By KALPANA RASHIWALA
AND ANDREA TAN



SINSOV Building has finally been sold for $34.1 million or $641 psf of net lettable area. The deal for the 999-year leasehold building opposite Golden Shoe carpark marks the latest for Singapore's office sector, which is seeing a bottoming of rents and a revival in investment activity.


The purchase of Sinsov Building was structured by Cadmus Partners - a boutique investment advisory firm set up by former DTZ Debenham Tie Leung executive director Yusof Wahid. Cadmus will hold a stake in the building, along with several other low-profile investors from Indonesia and the Middle East.


BT understands the new owners of Sinsov Building are planning a $10-11 million refurbishment for the property that should enhance its value and yield. The renovation cost estimate includes development charges payable to the state.


The proposed changes are aimed at tapping the maximum 13.86 plot ratio (ratio of potential gross floor area to land area) allowed for the site. Sinsov Building's existing GFA is about 11.7 times its site area.


Besides the additional GFA, the renovations will also result in an increase in the building's efficiency. This means that the ratio of net floor area to GFA will go up.


The total strata/saleable area of the building after the refurbishment is expected to be 79,707 sq ft, an increase of 50 per cent from the existing net floor area of 53,111 sq ft.


Analysts estimate that including the planned overhaul, the cost to the new owners of Sinsov Building will be about $590 psf of strata area.


The new investors may either rent out the building or sell it off for a profit after the revamp. The Urban Redevelopment Authority's approval for the proposed works has yet to be obtained.


Sinsov Building, which is currently 40 per cent let, has been on and off the market in the past few years.


The building's name is an acronym of its owner, Singapore Soviet Shipping Company. It was put up for sale by Messrs Tam Chee Chong and Wee Aik Guan of Deloitte & Touche, the liquidators of Sinsov. The company is in creditors' voluntary liquidation.


The office investment sales market began stirring this year after a near four-year lull, say property consultants.


Office values are starting to look attractive to investors again given that transacted prices are now about half or less than what they were during the market peak in 1996.


Office floors at the freehold John Hancock Tower in the Raffles Place area used to fetch about $2,200 psf in 1996. These days, the price is closer to $800 psf.


In the 99-year leasehold prime leasehold market, office floors at Suntec City go for $970 psf compared with $1,700-1,800 psf in 1996, said a seasoned property consultant.


Recent transactions of office buildings include Lippo's purchase of 78 Shenton Way for $151 million or $505 psf of net lettable area. The building stands on a site with 78 years left of its original 99-year lease.


Two buildings along Cecil Street, The Globe and Dapenso Building, also changed hands this year.




http://business-times.asia1.com.sg/mnt/media/image/launched/2004-08-31/krsinsov-230757.jpg






does this mean they're building higher?

Sinsov is an old building.Perhaps built in the late 1960s.

look at MAS building and that building on the rigiht... what's that building on the right? what exactly are they doing!? the colours look ghastly...

http://straitstimes.asia1.com.sg/mnt/html/webspecial/gallery/skydiving/front_skydive.jpg

UIC Building I guess.The building has two towers, I think.

It used to be all white.


Btw, would be nice if someone takes pics of MAS.Nice job there.

how do the circus colours fit in with this?

http://www.dp-studio.com/visual-PORT/portfolio-ex07.jpg

I don't think it is really going to be recladded.No info whatsoever? :?

yah, so far nothing about the UIC that looks like its going to be recladded. It looks alright as it is.

That tacky colour scheme on the shorter one has been around for quite some time already.

oh i never noticed!

Time is GMT + 8 hours
Posted: 06 October 2004 1738 hrs

6 projects worth $1.3b may be rolled out as private-public partnerships
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : The government is planning to undertake six projects, worth $1.3 billion, using the public-private partnership, or PPP, approach.

These PPP projects are likely to be rolled out over the next three to five years.

At a forum on Wednesday, Acting Second Finance Minister Raymond Lim gave an update on the progress made with PPP and the feedback received during the recent public consultation exercise.

Public-Private Partnerships are long-term contracts where the private sector provides services and facilities to the government, over say 15 to 30 years.

Projects being considered for PPP are the $650 million Sports Hub, a new incineration plant, a Newater plant, a student hostel at the National University of Singapore, and several IT infrastructure projects.

So, how will the public gain?

Mr Lim said: "This is part of the government's continuous effort to get better value for taxpayers' money, to improve on service delivery.

"By tapping on private sector's expertise, we tap on private sector's creativity, innovation and flexbility in delivering a service.

"We will be able to look at the whole lifetime cost-cycle, and therefore much better cost management, and I think better utilisation of assets. I would also say opportunities. It creates more opportunities for the private sector."

But only projects above $50 million will be considered for PPP to ensure meaningful savings.

A concern raised during the public consultation was the lengthy procurement process and high bidding costs.

That was the experience of water treatment specialist Hyflux when it clinched the first PPP project, a $250 million seawater desalination plant.

Ms Olivia Lum, CEO of Hyflux, said: "We did not expect to spend so much money for the bidding...we actually spent close to a million dollars. Half of that goes to the bank financiers, and lawyers, the other half, to the technical aspect of it."

She has this advice for SMEs.

Ms Lum said: "They should partner with big companies to bid for such projects. Or they can stay as sub-contractors. They actually have to spend a lot of money to bid for such projects. If they don't get it, it will be a big hole in their bottomline."

Mr Lim said the Finance Ministry would play a coordinating role to ensure that the PPP projects are implemented smoothly.

The Ministry is now looking into the more thorny issues, such as refinancing and termination clauses.

"PPP is part of the government's continuous search for better value for money. The public sector must continue to find better ways to meet the growing needs of Singapore. Fundamentally, PPP is about improving the delivery of public services," he said. - CNA

Copyright © 2004 MCN International Pte Ltd

At last, the extended Centrepoint is coming

11 Oct 2004

$56m seven-storey extension work will begin in sunken plaza in six months

http://business-times.asia1.com.sg/mnt/media/image/launched/2004-10-11/krcentre-200249.jpg

By KALPANA RASHIWALA

(SINGAPORE) After repeated delays over the past decade, Centrepoint Properties is finally going ahead with developing an extension to its namesake mall on Orchard Road.

The seven-storey extension will cost about $56.4 million, including $22 million of development charges payable to the state, Centrepoint Properties general manager (investment properties) Vivienne Tan told BT on Friday.

The property unit of Fraser & Neave will begin work in about six months.

The extension, which should be up by the fourth quarter of 2006, will be built in the sunken plaza used for outdoor seating by McDonald's and will be linked by a pedestrian bridge on level two at the back to OG's mall next door.

Once Centrepoint completes the extension, it will knock down the wall between the new building and the existing Centrepoint Shopping Centre to create a seamless shopping centre.

The 21-year-old existing mall will also be spruced up to make sure it blends with the spanking new extension.

The skylight will be replaced, along with the interior tiling and lighting. And it will have new-look exterior, with eye-catching 'fritted glass'. This is a fusion of glass and paint designed to create special lighting and colour effects.

The revamp should help Centrepoint retain its shine in the face of competition from rivals on Orchard Road like Paragon and Wisma Atria which have seen major improvements.

For Mrs Tan, developing the extension would be the culmination of years of work.

The final hurdle was cleared last week when unanimous approval was obtained from minority owners of shop units with a total share value of 8 per cent in Centrepoint Shopping Centre's front portion, said Mrs Tan.

The minority owners have a stake in the common property on which the extension will be built.

The management corporation is taking up the loan, with a corporate guarantee by Centrepoint Properties, to finance the entire cost of the project.

The minority owners don't have to foot a single cent but will be entitled to their share of net profit from leasing out the extension, said Mrs Tan. 'What sweeter deal can you have?'

The extension will have 58,430 sq ft net lettable area and generate about $7.5 million in annual revenue - or an average gross monthly rental of nearly $11 per square foot.

The new building will have seven storeys with two basements - topping the existing mall, which is six storeys high, and has two basements, with 333,240 sq ft of net lettable space.

Retail market watchers suggest Robinson could extend its department store at Centrepoint Shopping Centre by taking up contiguous area on levels two to five of the extension.

Centrepoint is looking for mini-anchor tenants in the fashion and lifestyle business to take up the level one space in the new building. There won't be a foodcourt - to avoid competing directly with most nearby malls. Instead, there will be a takeaway concept in the basement.

The top two floors, which will have high ceilings, could house a club, exclusive restaurant or beauty/spa concept, said Mrs Tan.

Plans for building the extension had been earlier set back by a series of stumbling blocks, including a lack of clarity in the legislation on approvals from minority owners and the Asian financial crisis.

The Urban Redevelopment Authority had also required Centrepoint to build an underground link to Orchard Point mall (now the OG department store) next door, which would have jacked up the cost of building the extension for Centrepoint.

URA has since agreed to allow Centrepoint to build the second-level bridge instead.

The mall's exterior needs a makeover...

finally! this might trigger a revamping of that now less shiny part of orchard road

Lets have a look at the site.

12 October 2004

http://img86.exs.cx/img86/5711/nicoll1210.jpg

The cut-off portion of Merdeka Bridge
http://img29.exs.cx/img29/6193/nicoll1210a.jpg

Worksite safety: Responsibility falls on all in a project

By Tan Hui Yee

THERE is a need to make everybody involved in a building project take responsibility to make the worksite safe, Manpower Minister Ng Eng Hen stressed yesterday.

The major accidents at the Nicoll Highway and Fusionpolis worksites this year, which killed six, had badly shaken public confidence, he said.

'It must shock us that people have died on construction sites. If it hasn't or if it doesn't, we have become too used to it,' he added.

Drawing on observations in the interim report issued last month by the Committee of Inquiry on the highway collapse, he stressed that all parties in the construction industry have to take a personal interest in safety.

And the top managements of construction companies need to walk their talk, he said, referring to the 40 who signed a pledge last month to emphasise work safety.

The minister added that there is no reason why the construction industry cannot cut its accident rate which, last year, was 60 per cent higher than that in the petrochemical trade, an industry as complex and potentially dangerous.

Last year, there were 1.7 accidents per million man-hours worked in the petrochemical industry, compared to construction industry's 2.7. The average across all industries in Singapore was 2.2.

The construction industry, he said, has to continuously review its safety standards to keep up with increasingly complex projects with more advanced technology.

As part of such efforts, his ministry will be introducing a new rule requiring a project's designers to think through the safety issues for the entire life cycle of a project with contractors.

The Construction Safety Review Committee, set up by the authorities, is also considering giving safety officers the duty and ability to stop work on a construction site, he added. Currently, they can only give advice.

Asked about the impact of the impending changes on costs, Dr Ng said: 'I don't think it will increase costs to the extent that these will spiral... I think consumers will be willing to accept a one, two or three per cent increase if it means the industry record improves.'

He indicated that the Government will not subsidise the cost of complying with added safety measures, and said contractors could also benefit from safer worksites.

Pointing out that contractors are already working on very tight margins, the president of the Singapore Contractors Association, Mr Eugene Yong, asked for a grace period for them to comply with the new regulations and price them into new contracts.

Dr Ng said if safety records can be improved, construction companies could soon get higher-value contracts based on their good reputations, like their petrochemical counterparts have done.

And, at the end of each day, its workers can 'go home safe to their families'.

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2004-10-09/h2.jpg
Worksite accidents such as the Fusionpolis collapse have hurt public confidence, says Dr Ng.

Time is GMT + 8 hours
Posted: 19 October 2004 1704 hrs

New bill tabled in Parliament to relieve ailing construction industry
By Derek Cher, Channel NewsAsia

SINGAPORE : Help is on the way for the ailing construction industry.

The National Development Ministry has tabled a new bill in Parliament on Tuesday to facilitate cash flow in this industry.

Called the Building and Construction Industry Security of Payment Bill, it allows parties to seek progress payment for work.

It is targeted to take effect from 1st April next year and will affect only new contracts.

The construction industry has been in the doldrums for some time now.

Many contractors are plagued by poor cash flow and some have been forced to call it a day.

So the new legislation will throw the industry a lifeline by improving cash flow from developers right down to the sub-contractors.

Under the Act, all parties have the right to receive progress payments for work done.

There will be a limited period to respond to claims and payment.

If the claimant disputes the reasons for non-payment or the amount paid, he can apply for adjudication.

Adjudication is faster, cheaper and less formal as compared to arbitration or litigation.

It doesn't require the consent of all parties to proceed and has to be completed within 21 days.

The fees will range from $3,000 to about $30,000.

The claimant is allowed to suspend work after adjudication and if the adjudicated amount remains unpaid.

Any third party affected by the halt will have the right to a time extension in his project.

The developer can choose to pay the sub-contractors directly, to avoid work suspension, and recover the payment by deducting it from subsequent payments to the main contractor.

"It will not solve the whole industry's problem. We admit it. It's not a panacea to the industry's problem but it provides an effective vehicle for progress payments to be made so that cash flow moves," said Mr Low Chin Min from the Building and Construction Authority.

"Pay when paid" contractual clauses, which dictate that downstream payments are conditional upon upstream payments, will be made void.

This makes contracts fairer to parties lower down the value chain.

Similar bills are already in force in countries like Australia, New Zealand and the UK.

However, the bill does not cover payment disputes involving insolvent parties.

It will also not apply to home renovation works that are small in value. -CNA

Copyright © 2004 MCN International Pte Ltd

Construction set to end drag on economy

21 Oct 2004

Market players say demand is growing and sector is poised to expand next year

By VINCE CHONG

THE construction sector's contribution to Singapore's growth is likely to turn positive from next year, with demand in the sector expected to grow marginally to $11 billion this year from $10 billion in 2003.

This year, business is expected to be driven by private residential projects and mega multi-million government projects such as public housing project Pinnacle@Duxton and Marina Barrage dam.

Construction demand had plunged from a peak of $24 billion in 1997 but is now expected to stabilise at $12 billion to $13 billion in the medium term. Last year's demand fell more than 30 per cent from $14.5 billion in 2002.

Simon Lee, executive director of the Singapore Contractors Association Ltd, said:'We are likely to see a final marginal contraction in Q4, but it should be the last one for now given that construction demand is forecast to improve in the next few years if nothing goes wrong.'

Contribution to the country's economic growth refers to actual work done, which, for the construction industry, typically takes 12 months to filter through after demand is made in the form of tenders awarded. This means that the slowdown posted this year is the result of demand having fallen between 2002 and 2003.

Earlier this month, figures from the Ministry of Trade & Industry (MTI) showed that Singapore's gross domestic product fell 2.3 per cent in Q3 from Q2 based on early estimates from just July and August data. This decline comes after four quarters of growth.

Construction contributed to the slowdown by falling 9.9 per cent from an earlier contraction in the second quarter.

Seah Choo Meng, president of the Singapore Institute of Surveyors and Valuers' quantity surveying division, noted that as in previous downturns, the sector lags the improvement in other industries by at least six to nine months.

'Construction is always the last to go down and the last to come up but we're certainly seeing signs of confidence returning,' he told BT.

'What's worrying is the high oil price. How we manage will be quite critical. Still, the industry has to stop being pessimistic.'

Going forward, it has been reported that the government is expected to award more than $5 billion worth of contracts, with public housing deals possibly coming to $1.3 billion. The private sector is expected to contribute up to $5 billion to the industry.

And the industry is expecting a boost from the likely awarding of tenders this quarter for the Housing and Development Board's high-profile 1,000-plus-unit Pinnacle@Duxton and the Public Utilities Board's Marina Barrage.

The Pinnacle is estimated to be worth about $300 million - more than half of the $585.3 million in building works tendered out by the statutory board last year, according to HDB Infoweb.

The Marina Barrage is estimated to cost between $250 million and $300 million and is expected to create a new water source in five years' time as well as act as a tidal barrier to check flooding in such low-lying areas as Chinatown, Boat Quay, Jalan Besar, Farrer Park and Geylang.

Last year, Singapore's single-largest construction contract of $322 million was awarded for building Republic Polytechnic's campus at Woodlands.

First link in new sewerage system up

29 Oct 04

By Alexis Hooi

A MAJOR milestone was reached yesterday in the construction of Singapore's $7 billion deep-tunnel sewerage system, with the completion of the first link between existing sewer networks and the system's main pipeline.

Known as the Kim Chuan Link Sewer, it will carry sewage from an area stretching from Paya Lebar to Marina South to the deep-tunnel system.

The 5.1km pipeline is one of 12 that will serve the new sewerage system in Phase One of the project. They total 50km in length, half of which have been built.

It puts this part of the plan, which includes building a water reclamation plant in Changi to treat sewage, on schedule for completion by 2008.

Speaking at a ceremony in Geylang to mark the link's completion yesterday, Senior Parliamentary Secretary (Defence and the Environment and Water Resources) Koo Tsai Kee said the new system will phase out the existing 139 pumping stations and six water treatment plants islandwide.

This would free up about 600ha of land, or about 133 football fields, for other uses.

'This means the average Singaporean will have more access to open spaces,' he added, as the land can be used for many things - housing, parks, factories, schools.

He also cited the $43.3 million sewerage link, constructed by local company Tiong Seng Contractors and its Korean partner Dong-A Geological Engineering Co, as a good example of the Public Utilities Board's close partnership with the private sector.

Not all the project's contractors have had the same success.

In May, PUB consultants recommended that one tunnel contractor, trouble-laden Wan Soon Construction, be taken off the project because it was behind schedule, among other problems.

The PUB has since engaged another contractor to take over.

Asked about the safety aspects of the link tunnel, PUB's director for the deep tunnel sewerage system, Mr Chiang Kok Meng, said all the necessary precautions had been taken, including accredited checkers inspecting designs and daily safety briefings for workers.

Safety has become a major issue since the collapses this year of an MRT worksite at Nicoll Highway and at the construction site of high-tech business park Fusionpolis, killing a total of six people.

Mr Chiang said that tunnelling work requires constant monitoring in order to be able to respond quickly to changes and variations in the soil.

Fortunately, there was not much variation in the soil the Kim Chuan Link Sewer passed through, he added. Most of it was marine clay.

More than half of the 78km-long, deep-tunnel sewerage system to connect Kranji, Tuas and Changi has been completed so far. When done, it will cater to the Republic's sewage treatment needs for the rest of this century.

saw this beside pie - beside the siemens building... thought it looked interesting

http://img.photobucket.com/albums/v47/sybarite/singapore/IMGP5100.jpg

This thing is now complete!

And man does it look odd!
It has fabric strips mounted on the facade!

what colour is it? what cladding?

The colour is baby blue.

No cladding.

But it has strips of fabric mounted vertically on the facade.

i found that strip thing rather interesting but can't imagine baby blue being nice... could you take a pic :D

came across the building by the PIE quite alot,
the fabric makes it exciting and unique, definitely uniquely singapore!

:lol:

yup we need more funky buildings

Hopeful players see recovery signs

16 Nov 04

Besides some legislative help early next year, a steady albeit slow upturn is beginning to make itself felt, reports VINCE CHONG

THE construction sector is desperately hoping that the glimmer of light it is seeing at the end of the tunnel is for real, after suffering a major meltdown following the Asian financial crisis of 1997/98.

http://business-times.asia1.com.sg/mnt/media/image/launched/2004-11-16/vccon16-165137.jpghttp://business-times.asia1.com.sg/mnt/media/image/launched/2004-11-16/vccon16-165116.jpg
Light at the end of the tunnel: Construction could pick up soon since the economy grew a strong 9.2% from Jan to Sept, compared to last year. Among the lucrative public projects expected to be up for tender this year are the HDB's high-profile 1,000-plus-unit Pinnacle@Duxton


Once a crucial pillar of the economy, it has become a laggard. In recent years, it has contracted, and in Q3, it shrank 9.9 per cent from an earlier contraction in the second quarter.

But some industry players and analysts believe construction could be bottoming out and starting to rise again, given that the economy grew a strong 9.2 per cent in the first nine months of this year, compared to the same period in 2003, despite a slower-than-expected third quarter.

The sector typically lags the improvement in other industries by at least 6-9 months.

But what is worrying, say industry players, is the impact of high oil prices, which could lead to more expensive raw materials as a result of increased transport and production costs.

Still, players believe that the construction sector's prospects are about to improve, with its contribution to Singapore's growth likely to turn positive from next year, now that demand in the sector is expected to grow marginally to $11 billion this year from $10 billion in 2003.

The construction industry's contribution to the country's economic growth is based on actual work done, which typically takes 12 months to filter through after demand arises in the form of tenders awarded. This means the slowdown posted this year is the result of demand having fallen between 2002 and 2003, which in turn means that players are expecting another contraction this quarter before the turnaround.

Construction demand has plunged from a peak of $24 billion in 1997 but is now expected to stabilise at $12-$13 billion in the medium term. Last year's demand fell more than 30 per cent from $14.5 billion in 2002.

Another sign of improvement has been that listed construction groups halved their collective net loss to about $230 million in their last financial year, from a staggering loss of about $455 million in the previous period.


Main blow

Last year's result also bettered the collective loss of $304.4 million three years ago, underscoring an improvement that required contractors to change and even re-engineer themselves through diversification and financial restructuring such as reverse takeovers.

Six contractors having been removed from the Building and Construction Authority's (BCA) Contractors Registry as at May this year. This compares with 12 deregistrations last year and 20 in 2002. In all, BCA figures showed that the number of contractors registered with them has dropped by about 200 to 5,000 between 2000 and now.

The main blow to the industry after the crisis in 1997/1998 came from the shrinking demand for public housing. Where there used to be 30,000 to 40,000 new HDB homes planned for construction per year, public flats are now built according to demand.

Not long after the public housing shock, construction companies started digging themselves further into a hole by bidding unrealistically low for projects, just to keep work going on and cash flowing in. In the process, huge losses were incurred, especially when main contractors delayed payments partly because of their own financial problems. As a result, many construction companies and contractors folded and projects were abandoned midway.

While in the past, only smaller outfits were left stranded, in recent years big names have been just as exposed to high risks. For example, there have been at least six traditionally big-name contractors that have been in the news for the wrong reasons.

One of them was Econ Corp, the second-largest construction company in Singapore until it collapsed earlier this year under $256 million of debts.

But players are hopeful that cash-flow woes will be a thing of the past, with the government set to implement the long-awaited Building and Construction Industry Security of Payment Bill from April next year (which is expected to reduce payment defaults). The plans for this Bill have been in the works since last August.

Among the significant recommendations are a maximum allowable period for making payments, while claimants will also be allowed to bypass the immediate paymaster to obtain payment directly from the principal.

The default payment period is up to 35 days after a payment response is served for construction deals, and up to 60 days for material supply contracts. Currently, there are three main payment timelines: 60, 90 and 120 days.

Players have said while this Bill will not be foolproof, it will nevertheless relieve some pressure on beleaguered contractors and will help prevent an industry meltdown in the future. The sector, however, will have to get used to having a default maximum payment period.

Based on similar models in Australia, New Zealand and the UK, the Bill will also, for the first time, introduce the adjudication process to resolve payment issues.

Set at a maximum period of 14 days for construction contracts and 21 days for material supply deals, this is a much shorter time than that taken by current, more expensive avenues of mediation, arbitration or litigation, which may stretch for months.

More venturing overseas

Going forward, contractors will also be trying to build on their overseas operations. In 2003, they chalked up their best foreign showing in six years by clinching over a billion dollars worth of contracts, according to the BCA, which has been trying to encourage such moves in recent years.

At $1.2 billion, this is about 50 per cent above the $805 million notched up in 2002.

The number of companies which ventured abroad also more than doubled to 51 in 2003, from 22 in the previous year. According to BCA figures, such companies clinched contracts in 31 countries in 2003, a 15 per cent increase over 2002. The total number of jobs secured also rose to more than 320, 19 per cent more than in 2002.

For example, contracts secured in Indonesia soared more than 16 times over 2002 - accounting for a third of total overseas contracts last year - while exports to Middle East and India leapt by over 20 times and six times, respectively.

The one blemish was China, where the number of jobs secured dropped by 40 per cent compared with 2002, due mainly to Beijing's measures to cool the economy.

Still, Singapore contractors for the first time last year penetrated three new markets: Lebanon, Italy and Tunisia.

On home ground, the good news is that the Singapore government is expected to award more than $5 billion worth of contracts this year, with public housing deals possibly coming to $1.3 billion. The private sector is expected to contribute up to $5 billion to the industry.

Among the lucrative public projects expected to be up for tender this year are the Housing and Development Board's high-profile 1,000-plus-unit Pinnacle@Duxton and the Public Utilities Board's Marina Barrage dam.

The Pinnacle alone is estimated to be worth about $300 million - more than half of the $585.3 million in building works tendered out by the statutory board last year, according to HDB Infoweb. The Marina Barrage is estimated to cost between $250 million and $300 million.

Last year, Singapore's single-largest construction contract - worth $322 million - was awarded for building the Republic Polytechnic campus at Woodlands.

9.2% raffie!..awesome!:)

any info on the Pinnacle at Duxton?

9.2% raffie!..awesome!:)

any info on the Pinnacle at Duxton?

drwho, here is the thread for this exciting project

http://www.skyscrapercity.com/showthread.php?t=41978

they have just demolished the old buildings on the site. They should be giving the contract to the builder by end of this year :)

pretty much the worst construction pic on this forum, but i thought i'd just post.

this is infineon building at night btw

http://imagehost.biz/ims/pictes/99540.jpg

ummmm...???????????????????? :?:?:?:?:?:?:?:?:?:?:?

i saw a pic of it in the BT today, it has an interesting facade

that is the facade pic rrredstone! :lol;

I know, but....

sorrry :tongue2: car on PIE cannot slow down lar haha

AMK heartland makeover mess worries residents, shopkeepers

29 Nov 04

http://www.channelnewsasia.com/imagegallery/store/phpsWTjYG.jpg

SINGAPORE : Residents and shopkeepers in Ang Mo Kio are in two minds over the current upgrading works in the 23-year-old township.

While the heartland makeover has been much anticipated by those hoping for an exciting, newer township in the likeness of Toa Payoh or Marine Parade, there are also worries over whether there is any method to the "madness".

As part of the Housing Development Board's (HDB) estate renewal strategy for Ang Mo Kio launched in June 1996, there are now three separate upgrading programmes slated - the town centre upgrading, the lift upgrading programme (LUP) and the hawker centres upgrading programme (HUP).

Plans for the major redevelopment of the town centre - being handled by the Ang Mo Kio Town Council - had been mentioned as early as 2000, but work just started this May. Shopkeepers were told it has been scheduled for completion within the next two years.

According to Mr Lim Eng Leong, 65, an Ang Mo Kio resident for 24 years, voting on whether or not to proceed with the LUP was supposed to proceed in October. But there has been no news, he said.

An HDB spokesman told Today that "the LUP for Blocks 710, 714, 716, 725 and 729 along Ang Mo Kio Avenue 6/8 are still in the design stage".

Once the design is finalised and endorsed by the working committee, residents will be asked to vote. The timeline for the upgrading is "about 2.5 years".

Residents are similarly concerned over the upgrading of the hawker centre, overseen by the National Environment Agency (NEA) as part of the HUP. The NEA said while the hawker centre at Block 724 "is eligible" for upgrading, the schedule and details "have not been decided yet".

"As the Ang Mo Kio town centre is undergoing upgrading and this hawker centre is located within the town centre, the NEA will work with the HDB, Town Council and the HUP working committee to work out an appropriate upgrading schedule for the hawker centre," said an NEA spokesman.

Remarked Mr Lim: "Why can't someone coordinate by bringing the three relevant authorities together and set a time frame to commence simultaneously, so that the residents and shopkeepers will not be hampered by the on-off construction work?"

Mr Goh Ang Jee, chairman of the Ang Mo Kio Constituency Merchants' Association, said association members have complained that business suffered a 30 to 40 per cent drop since construction work started in May and metal fences were put up in front of - and around - their shops.

Mr Leong San Cheng, the owner of the famous Tip Top curry puff stall at Hiap Hwa Eating House at Block 722, said: "Fewer people sit down to eat because of the dust."

Mr Goh, who owns a furniture and renovation store at Block 728, griped: "My own business has dropped by half."

But on whether all the upgrading works should be done simultaneously, Mr Goh said: "Now it's very messy and there are more mosquitoes as water collected in the holes turns to breeding grounds … If the town and hawker centres were to be upgraded together, that would be total chaos!"

The original plan in August 2001 was to develop a mega-complex - featuring a 31-storey condominium, a 21-storey office building and an NTUC hypermarket - at the 2.57ha plot of land opposite the MRT station to be completed by 2006.

This was put on hold by the Singapore Labour Foundation, in charge of building on the plot of land, due to "changing economic conditions".

Now, $325 million has been set aside for the whole redevelopment project, which will include a three-storey shopping centre on a 1.93ha plot instead and a bus interchange linked to the MRT station.

Mr Seng Han Thong, MP for Ang Mo Kio GRC, promised residents earlier that the new mall would be ready in the first half of 2007. - TODAY

Time is GMT + 8 hours
Posted: 03 December 2004 2108 hrs

SLA launches public tender for reserve site at Sengkang Central
By Thomas Cho, Channel NewsAsia

SINGAPORE : Singapore Land Authority is putting up a reserve site at Sengkang Central for public tender.

This comes after a developer gave a commitment to bid at least S$85 million for the land parcel.

The 22,000 square metre site can potentially build up to nearly 66,000 square metres of residential floor area.

The SLA will launch the public tender for the site in two weeks' time. - CNA

Copyright © 2004 MCN International Pte Ltd

Time is GMT + 8 hours
Posted: 07 December 2004 1340 hrs

Singapore won't release any land sites on confirmed list in 1H2005

SINGAPORE : The Singapore government has said it won't release any land sites for private residential, commercial and hotel developments through the confirmed list in first half of next year.

Sites would only be made available for sale via the reserve list.

The decision comes after a review of the market conditions and the list of sites to be released through the Government Land Sales programme during that period, the Ministry of National Development said in a statement.

For the first half of 2005, the government will add four new sites to its reserve list.
These are a commercial site at Orchard Road/Paterson Road; a mixed commercial/residential site or hotel site at Orchard Road/Killiney Road; and two residential sites at Alexandra Road/Tiong Bahru Road and Tanah Merah Kechil Avenue.

The reserve list will therefore consist of seven residential sites, three "white" sites, three commercial sites and five mixed commercial/residential sites, the statement said.

These sites can potentially yield about 3,300 private residential units, about 325,000 square metres of commercial space and 350 hotel rooms.

"The two sites at the Orchard Road/Paterson Road and Orchard Road/Killiney Road junctions will provide new commercial developments that will be integrated with the MRT stations," the ministry said.

"These developments will enhance the vibrancy of Orchard Road and reinforce its position as a premier shopping destination."

The government offers land for sale through a confirmed list and a reserve list.

Under the reserve list system, the government will only release a site for sale if an interested party submits an application to have the site put up for tender with an offer of a minimum purchase price acceptable to the government.

The government also plans to release land outside the GLS programme, to start in the first half of 2005 and be completed over the next few years.

Some 70,000 square metres to 90,000 square metres of commercial space, mostly for retail use will be released.

These include retail facilities under the Economic Development Board's warehouse retail scheme; sale of conservation shophouses; and leasing of two short-term leased parcels at Orchard Road.

Land will also be released for 1,400 hotel rooms from projects in several locations, including Sentosa; and 700 private residential units at One-North and Sentosa. - CNA

Copyright © 2004 MCN International Pte Ltd

Business Times - 14 Dec 2004

SLA launches public tender for residential site at Sengkang Central

SINGAPORE - The Singapore Land Authority (SLA) will launch the land parcel at Sengkang Central/ Buangkok Drive for public tender on 15 December 04.

This site was originally on the Reserve List.

On 3 December 04, SLA announced that it had received an application from a developer for the site to be put up for public tender.

The developer has committed to bid at least $85,000,000 for the land parcel in the public tender.

The site at Sengkang Central/ Buangkok Drive has a gross plot ratio of 3.0 and a land area of 21,985.3 sq m, of which the successful tenderer can potentially build up to 65,955.9 sq m of residential floor area.

The 99-year leasehold site is marketed as Sengkang Central: The Heart of Idyllic Living.

It is close to amenities such as Compass Point, Rivervale Mall, Rivervale Plaza and Hougang Green Shopping Mall.

It is only minutes away from the TPE, CTE and PIE as well as the MRT and LRT stations.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

Building demand to stay steady at $12b

12 Jan 05

It'll stabilise at $12b to $14b yearly for rest of decade: Cedric Foo

By Joyce Teo

DRIVING home the harsh realities facing the construction industry, a junior minister says that demand is likely to stabilise at $12 billion to $14 billion yearly for the rest of the decade.

That's down sharply from its heyday a decade ago, when demand peaked at $24 billion.

Not unexpectedly, demand last year was at the low level it sank to in 2003 - at about $10 billion.

'Realistically, the buoyant growth in the good old days of the 1990s, where domestic demand peaked at $24 billion and accounted for 7 to 9 per cent of the GDP, is not likely to return,' Minister of State for National Development and Defence, Mr Cedric Foo, said yesterday.

However, demand could go up to $11 billion this year, and then stabilise at $12 billion to $14 billion, as there is a limit to what the Government can do in building roads, MRT lines or Housing Board flats, he added.

Mr Foo was speaking at a construction industry seminar, where he launched the Green Mark scheme, an assessment system to rate buildings for their environmental impact and performance.

On the bright side, construction exports looked up last year, with exports to countries like India and China surpassing the $1.6 billion target to reach $2 billion, up from $1.2 billion in 2003.

The construction export outlook this year will improve, but local firms will be attractive overseas only if they have an edge over others, both local and international, warned Mr Foo.

He said the global construction market is worth at least $5 trillion, and urged firms to consolidate or form consortia so they could expand their scope of services and expertise.

While the Green Mark scheme is voluntary, green buildings will enjoy lower running costs from reduced energy, water and materials consumption, he said.

He told reporters separately that the HDB should also take up the scheme.

City Developments' group general manager Chia Ngiang Hong said the cost of developing a green building 'should be manageable'.

The Government will also explore more Public Private Partnership (PPP) projects, whereby it engages the private sector to provide public services, said a Building and Construction Authority director Low Chin Min, who was speaking at the seminar.

Projects under consideration are the fifth incinerator plant of the Environment and Water Resources Ministry, and the Sports Hub of the Community Development, Youth and Sports Ministry.

According to Mr Low, the value of public sector projects dropped 15 per cent to $4.6 billion last year, while private sector projects rose 16 per cent to account for $5.4 billion, of which residential projects contributed $2.6 billion.

This year, public projects should be worth $4.5 billion to $4.9 billion, while private sector demand should reach $5.5 billion to $6.1 billion.

But private residential projects - such as Water Rich City Condominium at Jalan Besar/Serangoon Road, Park Infinia @ Wee Nam at Lincoln Road and The Seaview at Amber Road - are expected to still contribute around $2.5 billion, as buyers remain cautious, said Mr Low.

Major public sector projects include the 1,848-unit Pinnacle @ Duxton, Fusionpolis at one-north and the Boon Lay MRT extension.

Among the large private sector projects are the Jurong Power Station Repowering Projects, the Observation Wheel at Marina Bay and the Beach Club in Sentosa.

...But private residential projects - such as Water Rich City Condominium at Jalan Besar/Serangoon Road, ...

Water Rich City?? Sounds weird... City Square sounds much better...

12 Jan 2005

Home owners in negative equity in for long haul: property consultants
By Chua Chin Chye, Channel NewsAsia

SINGAPORE : The negative equity situation among home owners in Singapore bears watching, despite signs of improvement.

Official numbers show that some 9.9 percent of total residential housing loans are in negative equity as at end September.

That is an improvement over the 13.7 percent the year before, and comes despite private property prices just rising 0.8 percent last year.

But property consultants say it is still not time to pop the champagne.

Negative housing equity, in which the property value is lower than the loan, is not determined by property prices alone.

So analysts say it is not unusual for the negative housing equity situation to be improving, despite private property prices just rising by a touch.

Said Yu Lai Boon, managing director at Jones Lang LaSalle, "The absolute pool of people caught in negative equity position would have been cleared off through bank mortgagee auction sales, so that pool has come down; whereas when you talk about prices, they have basically bottomed out. So there's no new net addition of negative equity people into that pool. Through time, and with property prices stabilising, that pool of negative equity home owners will fall."

Property consultants say new borrowers will also increase the base of home loans, thus, resulting in better numbers percentage-wise.

But because absolute numbers are not easily available they say the real picture is far from clear.

Right now, only two bodies, the Monetary Authority of Singapore and the Association of Banks, keep track of this closely guarded data.

When contacted by Channel NewsAsia, both organisations declined to give any figures.

And although the outlook for the property market this year appears to be improving, market watchers say the negative equity situation should not be ignored.

Willie Shee, managing director at CB Richard Ellis, said, "We can't help it if property values have fallen drastically over the years, and that property values have dropped below the mortgage values. People have to be quite cautious and be quite positive in their approach. In the long run, I am sure the problem can be addressed. In the short run, we need to introduce some measures to ensure the pain is not too overbearing for the people who are concerned."

For now, property consultants say, home owners who are still in negative territory should be prepared for the long haul, as they do not expect a sharp rise in property prices anytime soon. - CNA

Water Rich City?? Sounds weird... City Square sounds much better...

I didnt know they changed the name...you think its the same site?

it sure sounds funny..maybe they wanted to distinguish from Citylights..I guess there will be lots of pools and fountains in it ^^

I didnt know they changed the name...you think its the same site?

it sure sounds funny..maybe they wanted to distinguish from Citylights..I guess there will be lots of pools and fountains in it ^^


Just my guess... there aren't many empty plots of land for development at Jln Besar/Serangoon... :)

Office property market looking up

27 Jan 05

Analysts cite pick-up in demand and little new supply. ALEXANDRA HO reports

THE local office property market has turned the corner and the outlook for the rest of year - be it rent, demand or investment - is positive. That's the buoyant sentiment expressed by property analysts who spoke to BT yesterday.

http://business-times.asia1.com.sg/mnt/media/image/launched/2005-01-27/270105_ahoffice27_pg32.gif

'In late 2004, we already began to notice a turnaround, both in terms of the pick-up as well as rental rates. So I think that's likely to carry forward,' said Tay Kah Poh, Knight Frank's executive director of consultancy & research.

'The office property segment is looking good. We're clearly seeing demand picking up. More importantly, in terms of supply, especially in the CBD, there's no new supply coming into the market,' said Leslie Chua, head of real estate intelligence services Asia at Jones Lang Lasalle.

Analysts say the pick-up will be led by prime office space in the Raffles Place area.

Mr Chua expects Prime Grade A office rents to go up between 5 and 10 per cent this year. That means tenants should be prepared to pay above the current rates of $4.80 per square foot a month to put a prime Raffles Place address on their stationery.

CBRE Richard Ellis said prime office rents are likely to grow 10-12 per cent from the current $4.40 psf. Knight Frank's Mr Tay is equally optimistic. He believes prime office rents could increase an average of 10 per cent or even more.

Rental rates for Prime Grades B and C office buildings will also rise, albeit at a slower rate of up to about 5 per cent, said Mr Tay.

One reason driving rents up is the improved business sentiment.

'The office market behaves in a very rational way,' explained Mr Tay. 'When companies expand, it is because there's business opportunities. And as a result of that, they will demand more office space.'

He said it also helps that interest in South-east Asia as a whole has picked up lately. This ties in with the Economic Development Board's aggressive efforts to promote Singapore and get companies in the services and financial sectors to relocate here, boosting office property demand.

Echoing that point of view, CBRE's executive director Moray Armstrong said: 'Take-up is most likely to be led by expansions of existing tenants, as the business outlook remains favourable.'

Jones Lang's Mr Chua noted that with the changing demands of financial institutions, relocations and renewals will become increasingly common and contribute to much activity in the leasing market. 'Financial institutions, for example, are looking for larger floorplates,' said Mr Chua.

Supporting that view is DTZ Research. In its latest quarterly report on the local property market, it said that the boost in demand for office space will come 'predominantly from the financial services sector'.

But more importantly, analysts say the limited new supply of prime office space in the next two years will push up rents in desirable areas. Only three major projects are scheduled to be completed in the next two years - 1 George Street, 3 Church Street and One Raffles Quay.

CBRE said the new supply of office space in the next four years will also be limited to 2.67 million square feet, working out to be about 0.67 million square feet of new supply each year. This, CBRE said, 'should help to underpin the overall recovery of the office market'.

Given the improved investment market sentiment in the local office property market, CBRE's Mr Armstrong expects a continuation of that trajectory.

'The low interest rate environment and the continued healthy office demand would lead to more opportunistic buying of quality office properties with yield-accretive potential,' Mr Armstrong predicted.

Major transactions last year included 78 Shenton Way for $151 million or $506 per square foot, Sinsov Building at $34 million or $641 per square foot, and The Globe at $19 million or $487 per square foot.

'We're seeing renewed interest in the commercial market. Singapore is after all still a piece of safe haven, and so in balancing their portfolios, people will seriously consider and Singapore would be among one of their picks,' said Jones Lang's Mr Chua. 'In terms of pricing of assets, I think we are much lower than what Hong Kong is. And in term of yields, it's comparable.'

Knight Frank's Mr Tay also sees the investment market expanding.

'There should be further interest from funds, institutional investors and people who think that the market has bottomed and rents will head upwards further and therefore it's a good time to go and buy.'

Nice picture!

Raffles !
I need your help to sort out and identify those pics from yesterday ^^

Pic of construction next to Park Infinia, forgot the name:
http://membres.lycos.fr/pengui/ssc/050128_construction01.jpg

Unknown signboard on Newton Road, no memory of what it is ^^
http://membres.lycos.fr/pengui/ssc/050128_construction02.jpg

Thanks ^^

[QUOTE=Pengui]This one on Irrawaddy Road, next to the Police HQ:
http://membres.lycos.fr/pengui/ssc/050128_construction04.jpg
QUOTE]

i know this one, it's Pinnacles 16, freehold, about 70% sold according to URA website. Mostly studio units, about 22 storeys

Indeed, I remember the name now, thanks ^^

@Pengui

the first pic is Suffolk @ Ten, or Surrey @ Ten I think

second pic is Newton Suites :cool:

Oh, ok, I'll correct this mess tomorrow, thanks :-)

http://business-times.asia1.com.sg/mnt/media/image/launched/2005-01-27/270105_ahoffice27_pg32.gif
When I see this I wonder of you have the same 'problem' as Bangkok - too little color.
Except for the vegetation of course ;)

its an old pic, the green NTUC Building adds a burst of colour to that

but otherwise, there are many greys and whites;)

I started a thread for Ten @ Suffolk here:
http://skyscrapercity.com/showthread.php?t=175112

I also added the Newton suites signboard where it belongs ;-)

good work Pengui :cool:

there are some posts with Ten @ Suffolk in this thread, which I will merge with your new one later^^

FairPrice hypermart in Ang Mo Kio

1 Feb 05

By Joyce Teo

FAIRPRICE'S first hypermart, all of 80,000 sq ft, will be one of the main features of the upcoming retail mall in Ang Mo Kio, due to be up by the second quarter of 2007.

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2005-02-01/h2b.jpg

The $325 million retail complex, located at the junction of Ang Mo Kio Avenues 3 and 8, will house a new bus interchange which is linked to the Ang Mo Kio MRT station.

FairPrice has a network of over 100 stores, including 75 supermarkets, of which the biggest - occupying around 45,000 sq ft - is at Bukit Merah Central.

Plans for the new Ang Mo Kio mall also include an NTUC Club, an NTUC foodcourt, a youth loft, an IT mega store, alfresco dining, cinemas and a bowling alley.

'It will be a comprehensive retail mix addressing essential and lifestyle needs of shoppers from Ang Mo Kio town and beyond,' said a spokesman for the Singapore Labour Foundation, which is co-developing the mall with NTUC Income and FairPrice.

'We are making it different. For example, we are creating distinct sections which cater to a certain category of shoppers,' said Mr Danny Yeo, an executive director of Knight Frank, the mall's consultant and marketing agent.

With a gross floor area of around 519,000 sq ft, the yet-to-be-named mall will be approximately twice the size of a typical suburban mall such as Junction 8, said Mr Yeo.

The mall's original plan, first announced in August 2001, included a 31-storey condominium and a 21-storey office block, which were later dropped due to economic reasons. The project size came down to 1.93ha, from 2.57ha.

MP for Ang Mo Kio GRC, Mr Seng Han Thong, said: 'By the time the mall is completed, it will become an integral part of the town centre, which is now undergoing a $7 million upgrading. The whole town will be well-linked. It will be a booming place.'

Hidden 10-storeys project behind Mohd Sultan Road.
http://membres.lycos.fr/pengui/ssc/050304_mohamed_sultan01.jpg

http://membres.lycos.fr/pengui/ssc/050304_mohamed_sultan02.jpg

:eek:
There's a HUGE empty plot of land with a strange structure at the top of the hill, overgrown with plantss there... :eek:

Challenges to traditional office space in S'pore

24 Mar 05

Office space in Singapore will have to adapt to new requirements as well as potential challenges from alternative business premises solutions, says CHRIS ARCHIBOLD

THE challenges to traditional office space in Singapore come from two fronts - regional and local. Regionally, real estate markets across Asia have seen a marked shift in recent years as the focus moves from major economic hubs such as Singapore, Hong Kong and Tokyo to developing economies such as India and China.

http://business-times.asia1.com.sg/mnt/media/image/launched/2005-03-24/240305_NEWekoffice24_p24.gif

Looking at Singapore as an office location for a multinational company (MNC), there are a number of challenges that we face to remain competitive. The demand for traditional Singapore office space from an MNC is two-fold. Firstly, by way of locally driven sales, purchasing or general representative offices. These offices will continue to locate in Singapore as long as we have a strong economy and when there is a sound local business case for their existence.

The second, and probably more unpredictable source of demand, is the existence of regional headquarters, back office and business process outsourcing (BPO) facilities. The inward or outward migration of such facilities has a large impact in terms of both office net take-up and market sentiment.

In terms of cost, Singapore remains competitive in the Asia Pacific region compared with Hong Kong and Tokyo and is currently only slightly more expensive than up and coming locations such as Shanghai.

One of the largest regional drivers in terms of net take-up of space is the BPO industry. Many MNCs are outsourcing their business processes to countries with lower labour costs, resulting in a negative impact on occupancy rates in cities such as Singapore.

Much of the BPO will locate in countries such as India and the Philippines. That said, Singapore is also benefiting from this trend, attracting those critical activities that need reliable infrastructure and a highly educated workforce. This is borne out by recently published articles pointing to Singapore as the top BPO destination on a per capita basis.

China also poses a major challenge to Singapore as companies downsize their operations and move their offices to China. Many MNCs that currently occupy traditional HQ locations are studying the office cost and business advantages of being located in huge developing markets such as India or China against a mature market with stronger infrastructure such as Singapore. While the jury is still out in many cases, the fact that China now has over 100 regional headquarters registered in Shanghai and Beijing indicates that traditional office markets have to up their game to remain competitive.

When it comes to the availability of suitable office space, it is evident that while Singapore has some good quality space available, much of the existing office stock is not aligned with the needs of modern MNCs. Most medium to large MNCs require floor plates of 18,000 sq ft or more. But 81 per cent of the Singapore CBD is made up of buildings of less than 15,000 sq ft. Only 5 per cent comprises buildings with floor plates over 20,000 sq ft. If we look at Grade A CBD buildings alone, only half of the current office stock has floor plates in excess of 15,000 sq ft.

Most occupiers are also looking for modern square or rectangular floor plates with raised floors and the latest technological infrastructure. Much of the existing CBD office stock does not match this need. The majority of our current stock was built prior to today's technology being available and retrofitting is an expensive exercise. Over 60 per cent of our CBD is over 12 years old and 44 per cent is over 17 years old. This demonstrates the reality that much of the current CBD office stock suffers from functional obsolescence and is in need of upgrading. Traditional office space in Singapore also faces potential challenges locally from alternative business premises solutions that may nibble away at the traditional market. Any effect of these initiatives will be felt by the older, cheaper, smaller floor plate buildings in the non-core locations that would normally house small start-up businesses.

Such schemes include the Home Office initiative announced by the Urban Redevelopment Authority (URA) in June 2003 and the Small Office Home Office (SoHo) phenomenon. The Home Office scheme allows the occupants of residential units to conduct small scale businesses with up to two non-residents engaged in the business. This allows entrepreneurs to set up small businesses without taking up traditional office space.

The success of this scheme and therefore what may be perceived as a challenge to office landlords has been exacerbated by the use of business centres for 'virtual offices'. These provide businesses with dedicated phone and fax lines, call answering, voicemail and a professional front from which to correspond with their clients. Take-up of these 'virtual offices' has grown dramatically in the last few years.

The latest initiative to potentially impact the traditional office market is the SoHo phenomenon. SoHo is designed to breathe some life back into the city centres after office hours by encouraging city living and providing its occupants the chance to combine their office and residential premises within a city location. Current SoHo developments have seen good take-up to date and we are likely to see further developments in the pipeline.

Modern working practices and IT connectivity also pose a future threat to the take-up of traditional office space as employees who spend a large proportion of their working life outside the office may no longer have a workstation in their office. Rather, they may often work from home, on the road from wireless hubs and share hot desks when they return to the office.

Currently, the proportion of employees working this way is too small to have a significant impact but if technology continues to advance at its current rate, this may well change drastically in the not-too-distant future.

Mergers and acquisitions are also making an impact. As the globalisation trend continues among MNCs, so do the mergers and acquisitions. Typically, such an event will result in reduced headcount and, therefore, a reduced need for office space.

The traditional office locations have also seen a gradual migration of occupiers to suburban business parks. In the main, these occupiers are looking to drive efficiencies by combining their front and back office operations. They are also attracted to the highly specified, large floor plate buildings available in these parks. Examples of this migration have been seen in the moves by various occupiers over the last few years. Sony relocated from Keppel Towers to a 140,000-sq ft area in The Strategy (IBP), IBM moved from IBM Towers at Anson Road to Changi Business Park. In IBM's case, the move was also spurred by its strong 'Thinkpad mobility' culture which gives employees the flexibility of working anywhere.

Looking at the traditional Singapore office market going forward, the market has to work alongside the local initiatives such as the Home Office and SoHo to help entrepreneurs build their businesses; as these companies grow, some of them will fuel the take-up of small to mid-sized traditional premises.

In reality, such schemes are unlikely to become large enough to have a detrimental effect on the traditional office market and are just as likely to have a positive effect for landlords of mid-range office premises by acting as an incubator for start-up companies.

We have to constantly review what local occupiers and regional MNCs today really need in order to do business in Singapore. As with any business, the office market has to constantly reinvent itself in order to stay competitive.

While savings may be achievable elsewhere, Singapore offers a large number of other competitive advantages on a regional level, such as a first-class living environment, good connectivity, a well-educated labour force and an attractive taxation structure. Simply put, Singapore works, and that key factor will always attract MNCs.

The piece that needs some attention going forward is the availability of modern, highly specified, well-located buildings with large floor plates to accommodate such occupiers. The traditional office market has to rise to the challenge. Singapore is in an ideal position to do this through the New Downtown. The new CBD needs to provide developments equal to or better than those available in rival cities.

To meet the challenges to the traditional office market in Singapore, any new major office development going forward needs to be more about quality than quantity.

The writer is national director, head of commercial, Jones Lang LaSalle

March 26, 2005
NEWS ANALYSIS
Rise in building demand unlikely

By Tan Hui Yee

SIXTEEN contractors went bust last year and prospects for the industry, hit by a spate of stalled projects and worksite tragedies, may not get better any time soon.

Construction demand languished at the $10 billion mark last year from the high of $24 billion in 1997.

While industry observers do not foresee it dropping much further, they do not see it moving up significantly either.

This spells bad news for former main contractor Johnny Thng, 56, who has been wanting to start his own company again after being forced to give it up in 2001 due to a $3 million loan that he could not recover.

Mr Thng, who has in recent years downgraded from a semi-detached house in Changi and a Mercedes-Benz E280 to a four-room flat in Tampines and a company-registered pickup truck, said: 'There are not enough jobs and too many contractors.'

Although the Building and Construction Authority (BCA) has projected construction demand to average at $12 billion to $14 billion until the end of the decade, Associate Professor Florence Ling from the National University of Singapore's department of building reckons the figure will be closer to $10 billion.

This is because the Government, which usually accounts for about half or even more of total construction demand, is likely to decelerate spending on infrastructure as the economy matures, she said.

The Government awarded $4.6 billion worth of construction contracts last year.

If that prediction is borne out, construc- tion companies will find it even tougher to survive.

The number of building contractors registered with the BCA actually increased from 1,476 in 2003 to 1,746 last year, while the number of civil engineering firms dropped slightly from 914 to 898.

The BCA told The Straits Times: 'The current overcapacity and modest local demand limit the extent to which local firms can grow.

'Firms should take the initiative to consolidate and strengthen their competencies, and venture abroad to seek new market space and opportunities to grow.'The BCA has been plugging this strategy for a while now, and some contractors have heeded the call.

The volume of overseas work done by local contractors and consultancy firms climbed from $805 million in 2002 to about $2 billion last year.

Construction company Tiong Seng Contractors, for example, teamed up with NeoCorp Innovations, Hua Kok Realty and Cesma International to build a $71 million housing project in the Indian state of Andhra Pradesh in 2003.

But not all companies are moving fast enough. A total of 16 wound up last year, compared to 12 in 2003, and 20 in 2002, said the BCA.

The number of grade A1 and A2 building contractors, who are allowed to bid for the biggest government projects, dropped by five to 53 last year. The chairman of the Government Parliamentary Committee for National Development and the Environment, Dr Amy Khor, suggested that to boost their chances of getting projects overseas, contractors here should team up with their local counterparts in their host countries, forming consortiums if necessary for the joint ventures.

The president of the Singapore Contractors Association, Mr Eugene Yong, wants Singapore developers who land projects abroad to invite contractors here to tender for its construction as a matter of practice.

Many do not do so now, he said.

To further bolster the construction sector, the Government should guarantee a minimum level of construction demand each year, he argued.

This is to ensure that there are enough jobs to retain talent within the sector.

But construction consultant Chow Kok Fong, while agreeing that there has been a loss of experienced people in the industry, felt that a government-guaranteed demand would not be sustainable.

'There's a limit to what the Government can do. It depends on the health of the economy,' he said.

Dr Khor added: 'We will always need contractors, but it's a question of how many we need.

'The market will work it out.'

Leaving contractors to their own devices may not be too bad, said Mr Chow, who used to head the BCA's predecessor, the Construction Industry Development Board.

'Contractors have got to live by their networks, contacts and capability to marshal their own resources in the industry,' he said.

'Those that survive will be very tough.'

Copyright © 2005 Singapore Press Holdings. All rights reserved.

07 April 2005

CityDev to build its largest mall at Serangoon-Kitchener Rd junction

SINGAPORE: City Developments says it will develop its biggest mall at the junction of Serangoon and Kitchener roads.

The shopping complex will be called City Square Mall and yield more than 700,000 square feet of retail space.

CityDev says the development will have four levels above ground and two basement levels.

There will also be facilities for a hypermarket and cineplex.

CityDev is expected to put out a tender for the construction by the end of this year. - CNA

Copyright © 2005 MCN International Pte Ltd

22 April 2005

Singapore's private home prices up 0.7 percent in Q1: URA

SINGAPORE : Singapore's private home prices have risen for a fourth straight quarter.

The Urban Redevelopment Authority said prices of residential properties edged up 0.7 percent in the first quarter.

This was slightly higher than its earlier estimate of 0.6 percent but lower than the 0.8 percent rise in the previous three months.

The rise was led by a 0.9 percent rise in the prices of condominium apartments.

Rentals of private residential properties rose 1 percent, up from a 0.6 percent increase in the previous quarter.

In fact, private residential prices have increased by about 2 percent in the last 12 months and analysts say this momentum will continue.

They say there will be more modest gains in this market, thanks to the government's plans to build two integrated resorts in Singapore.

For prices to push up further, analysts say the market needs to have a critical mass of around 6,000 to 8000 new homes sold each year.

They believe overseas demand will improve in the near term, as property prices here are seen as attractive when compared to other countries in the region.

Said Donald Han, managing director at Cushman and Wakefield, "Foreign investors will closely look into Singapore as part of the investment strategy in Asia. We may see a further increase in terms of foreign investors coming in and hopefully that will translate into greater volume in terms of the number of transactions over the next 7 to 8 months. So we expect prices to probably increase by about 3 to 8 percent on a whole year basis."

But the star performer this year will likely to be in office property.

Analysts expect office rentals to surge by at least 15 percent this year.

Capital values for offices should see an up-take as well, by about 10 percent.

Meanwhile, the Housing Board has reported a small rise in its resale price index for the first quarter.

Average valuations of resale 3-room flats were up 0.7 percent from a year ago.

But resale executive flats saw a drop of 5.5 percent percent in average valuations. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

Business Times - 23 Apr 2005

Cathay gets nod for mall on Tampines site

MCL Land planning 430-unit condo; Centrepoint 299-unit condo

By KALPANA RASHIWALA

CATHAY group has received provisional approval from the authorities to develop a shopping mall on its Pavilion site in Tampines Central 1.

The approval is for a project with a gross floor area of about 133,000 square feet and was revealed in the Urban Redevelopment Authority's first quarter publications on the Singapore property market released yesterday.

The publications also show that listed property group MCL Land is planning to develop a 430-unit condo on the freehold Maryland Point site in Katong that it bought last year.

And Centrepoint Properties will build a 299-unit condo on a 125,636 sq ft site in the Jervois Road area that it bought two years ago. This site comprises mainly Jervois Court and Goldhill Mansion sites that the property arm of listed Fraser & Neave group bagged through collective sales.

The two developments received the provisional green light from the planning authority in February this year.

Typically, projects can be launch-ready within a year of receiving provisional permission, although the actual timing of the launch depends on market conditions and developers' respective strategies.

The latest URA publications also reveal that a joint venture between United Overseas Land and its long-time partner Low Keng Huat won provisional permission in February to develop 208 apartments on the Eng Cheong Tower site near Beach Road.

The two bought the property earlier this year for $47.5 million, or about $240 per square foot of potential gross floor area inclusive of development charges and a lease upgrading premium to top up the site's lease to 99 years, from the remaining 65 years.

The deal marked the first collective sale of a 99-year leasehold site in Singapore and is expected to pave the way for more such deals. This should help the redevelopment of ageing 99-year leasehold buildings on the island and renew the cityscape.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

yay~! pavilion must go!

May 10, 2005
LTA to get $7.7m building

By Christopher Tan
SENIOR CORRESPONDENT

THE Land Transport Authority (LTA), which made news three years ago when it announced plans to build a $500 million headquarters, is settling for something much smaller, simpler and cheaper.

It will instead have a plain three-storey building with a lifespan of 10 years, to house its nerve centre. This will be constructed at the former Kandang Kerbau Hospital site in Hampshire Road and will cost $7.7 million.

The contractor, Ho Lee Construction, has been told to keep it simple and maintenance-free, and to 'follow the standard of LTA site offices in terms of level of finishes'.

The building is also supposed to blend in with the austere blocks of the 80-year-old former KK Hospital, where one-third of the LTA's 3,600 employees are currently housed.

The structure, which will have a built-up area of about 10,000 sq m, will be a stark contrast to the 100,000 sq m headquarters project the LTA shelved in 2002.

That was the year a public transport fare hike was hotly debated in Parliament and a number of highly paid transport company executives made news.

'It was just wrong timing,' said LTA deputy chief executive Low Tien Sio of the abandoned HQ project, conceived at the time partly to save the $12 million the LTA pays in rent annually.

Mr Low told The Straits Times the new building will save the LTA $10 million in rent over 10 years.

The cost of constructing it will be 6 per cent lower than that of an equivalent factory-cum-office, according to data from construction consultancy CPG.

Some 800 LTA employees working in rented premises in PSA Building and Albert Complex will occupy the building, scheduled to be ready in July.

'We're really cramming them in,' Mr Low said.

He said the former KK site is attractive because its rent is low, and the LTA sank in $20 million to renovate the one-time hospital when it moved there nine years ago.

'The best part is the old trees,' he said. 'They just add to the whole atmosphere of the place.'

Mr Low said the LTA found the former HDB centre in Bukit Merah unsuitable and 'too expensive' to rent.

Even with the new project, the authority, which turns 10 this year, will still lease premises. These include one in North Bridge Road and one in Maxwell Road.

In its efforts to minimise rent, it is using abandoned buildings for some of its site offices. One is an old school in Pasir Panjang, and another is the former non-commissioned officers club in Beach Road.

Copyright © 2005 Singapore Press Holdings. All rights reserved.

12 May 05
CityDev major winner at BCA awards

ARTHUR SIM finds out which buildings, developers and architects score well at the annual awards

CITY Developments Ltd (CityDev) yesterday swept 14 of the 46 prizes awarded by the Building and Construction Authority (BCA) when it announced the winners of its annual BCA Award, which recognises excellence in the construction industry.

In the Best Buildable Design category, CityDev's Changi Rise Condominium, Goldenhill Park Condominium, Emery Point and Goldenhill Villas clinched top honours.

Other winners in this category include CapitaLand Residential Limited (Belmond Green) and NTUC Choice Homes Cooperative (Park Green Condominium). A non-residential building winner was ITE College East. There were 13 winners in this category.

Delighted by the win, CityDev's managing director, Kwek Leng Joo, said: 'As Singaporeans become more sophisticated and knowledgeable, they expect better building quality. Buildable designs offer more consistent quality, straighter walls, less re-work and fewer defects.'

The Construction Excellence Award, which recognises contractors' contribution to the industry, saw SembCorp Engineers and Contractors Pte Ltd win two out of 12 awards in the category for the Tampines Finance Park Phase 2 and The Edge on Cairnhill. One of the judging criteria for this category is safety management on the construction site.

In the Energy Efficient Building category, CPG Consultants won two of the four prizes awarded. These were for the National Institute of Education (NIE) and Singapore Botanic Gardens Visitor Centre. In this category, energy conservation is the main objective with the NIE which is said to have saved $220,000 in electricity bills last year through climate-sensitive design. The other winner was RSP Architects Planners and Engineers for HDB Hub and Architects 61 for Raffles City.

The fourth category in the BCA Awards - Green Mark Awards - also represents the first time the BCA has decided to recognise environmental sustainability in design and construction like the use of natural ventilation, natural light and the conservation of natural resources. There were two platinum awards given in this category.

Designed by T R Hamzah and Yeang, the new National Library Building is a clear winner, especially as the architects have a long history of developing climate-sensitive designs in the region. For the library, architect Rajiv Ratnarajah of T R Hamzah and Yeang explained that sun-shading features, natural ventilation, special glass, motion sensors and daylight sensors help to make the building about 20 per cent more energy efficient than the average office building.

Another award-winning building, Nanyang Polytechnic, by DP Architects, also managed to save $1.8 million over a five-year period in energy costs through a more hands-on approach by the end users.

Koh Swee Guan, director of the estates management department, said that the landscape lighting used on the campus, which helps to reduce energy consumption by using fewer and lower voltage lamps, was designed by staff in his department.

The institution's School of Lifesciences also worked out a system to extract toxic fumes from its laboratories without compromising the airconditioning system, saving about $35,000 in energy costs.

that military building near my apartment - now its got orangey squares!

http://img77.echo.cx/img77/1300/imgp83027mh.jpg

why do you call it military ?

It looks huge !

i saw on the board something about civil defense... must be some military building? i dunno... its actually small-looking beside the afpd factory..

Business Times - 19 May 2005

5 vie to design Aussie varsity's S'pore campus

FIVE architectural and design firms have been short listed in an international design competition to develop the first stage of the University of New South Wales' Asia campus in Singapore.

The Australian university, which is to set up its first overseas campus here in 2007 announced on Monday that the five shortlisted candidates in the competition by invitation are: Singapore-based WOHA and Kerry Hill, Australia-Singapore partnerships FJMT/ Architects 61, BVN/RSP Architects, and CM+/Geoff Malone International.

The selected company - which will be announced on June 28 - will be tasked with developing and implementing a master plan for the campus site. It will also design the university's landmark library building.

The 220,000 square metre campus, which includes 50,000 sq m of land for staff and student accommodation, is located between Upper Changi Road East and Changi South Avenue.

UNSW Asia will be Singapore's first wholly owned and operated research and teaching campus to be established overseas by an Australian university.

John Ingleson, UNSW's deputy vice-chancellor (international & development) said of the project: 'This is a very significant and exciting project internationally. We are committed to creating a high quality, sustainable, tropical campus for the 21st century.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Which hotel was recently slated for conversion into a condo? Was it a Copthorne hotel?

copthorne orchid i believe..

Which hotel was recently slated for conversion into a condo? Was it a Copthorne hotel?

It used to be called the Novotel Orchid Inn, before the Copthorne takeover. I grew up in the Trevose Crescent area, so the Orchid Inn was part of my child/teenhood memories - family dinners at the Charming Garden and Dragon City restaurants, and the Chinese-style 4 sided courtyard layout that housed a square koi pond in the middle. Despite its 3/4-star hotel image, it had the best lobster hor fun in town at its coffee house. I believe many people familiar with this area (Dunearn/Whitley/Stevens/Bukit Timah junction) will be sad to see it go.

You guys should check out the cluster-housing development behind the Orchid Inn. Not bad-looking at all. It is called Trevose 12, and it is (unfortunately) 99-year leasehold.

The Equatorial, across the Dunearn and Bukit Timah roads, also used to be a hotel (Hotel Equatorial). It is now an under-sold condo developed by City Dev. Good macro location (Stevens Road), bad micro location (at the junction of Stevens and Bukit Timah which experiences very heavy rush-hour traffic; and the units are built too close to road).

Which begs the question why, do City Dev think that right across the road, a condo arising from the Orchid Inn plot would sell any better that the Equatorial. And aren't City Dev cannibalizing themselves by constructing another condo so close to the Equatorial?

Copthorne Orchid condo plot on Dunearn Road: Micro-location is not so good. Dunearn Road in the morning rush-hour is terrible. Starting from 6am, the road would be semi-heavy with parents driving their kids to school (SCGS, RGS, ACS Barker, and ACJS all in the vicinity). Gridlock gradually builds up until 8:30am. The nightmare will peak at 8:30am-9:30am, with the office workers streaming down from upper Bukit Timah to get to the CBD. It is impossible to get a cab on the street during this time.

It used to be called the Novotel Orchid Inn, before the Copthorne takeover. I grew up in the Trevose Crescent area, so the Orchid Inn was part of my child/teenhood memories - family dinners at the Charming Garden and Dragon City restaurants, and the Chinese-style 4 sided courtyard layout that housed a square koi pond in the middle. Despite its 3/4-star hotel image, it had the best lobster hor fun in town at its coffee house. I believe many people familiar with this area (Dunearn/Whitley/Stevens/Bukit Timah junction) will be sad to see it go.

You guys should check out the cluster-housing development behind the Orchid Inn. Not bad-looking at all. It is called Trevose 12, and it is (unfortunately) 99-year leasehold.

Tried TungLok Charming Garden's ala carte buffet and the Orchid's Coffee house, not bad. :)

Trevose 12 is the one with see-thru swimming pool... Elegant and clean design. LH99 is alright. :)

The Equatorial, across the Dunearn and Bukit Timah roads, also used to be a hotel (Hotel Equatorial). It is now an under-sold condo developed by City Dev. Good macro location (Stevens Road), bad micro location (at the junction of Stevens and Bukit Timah which experiences very heavy rush-hour traffic; and the units are built too close to road).

I think there was a swiss restaurant in Hotel Equatorial. My dad brought us there for fondue before it made way for The Equatorial. Many new condos are facing the problem.


Which begs the question why, do City Dev think that right across the road, a condo arising from the Orchid Inn plot would sell any better that the Equatorial. And aren't City Dev cannibalizing themselves by constructing another condo so close to the Equatorial?


maybe, ask CDL?


Copthorne Orchid condo plot on Dunearn Road: Micro-location is not so good. Dunearn Road in the morning rush-hour is terrible. Starting from 6am, the road would be semi-heavy with parents driving their kids to school (SCGS, RGS, ACS Barker, and ACJS all in the vicinity). Gridlock gradually builds up until 8:30am. The nightmare will peak at 8:30am-9:30am, with the office workers streaming down from upper Bukit Timah to get to the CBD. It is impossible to get a cab on the street during this time.

The peak hour traffic is heavy all the way to Farrer Rd too. Phase 4 of Circle Line which covers part of Bukit Timah is on the way. In addition, LTA is currently widening Farrer Rd from 3 to 4 lanes to ease the peak hour congestion. However, I noticed driving along Farrer Rd is always very smooth during school holidays.

Here're the details from LTA's website. http://app.lta.gov.sg/corp_press_content.asp?start=963

True. Taking a bus to MRT is actually faster than getting on a cab during peak hours. The only solution is to wake up early. ;)

June 27, 2005
Govt land release offer biggest since 1997
That is enough land for 500,000 sq m of commercial space, about 5,000 hotel rooms and 4,700 private homes

By Daryl Loo

THE largest amount of land on offer since the height of the property boom in 1997 is up for grabs this year.

The sites are scattered all over Singapore, and include some on Sentosa. They include five new ones at Collyer Quay, Toa Payoh, Novena, Woodlands and Pasir Ris.

Together they can be used to build about 5,000 hotel rooms and 4,700 private homes. There is also enough commercial space to accommodate another Suntec City.

The Ministry of National Development revealed the sites and how they could possibly be developed last week when it announced its land sales programme for the second half of this year.

About half of the plots are on the reserve list. These alone can yield some 3,700 private homes, 200,000 sq m of commercial space and 345 hotel rooms.

On top of that, there is land for the two integrated resorts, which together will produce about 100,000 sq m of retail space and 3,400 hotel rooms.

The rest of the sites include about 195,000 sq m for mostly retail use - fitness centres, food outlets and more - in areas such as the planned sports hub in Kallang and the recreation hub in Tuas.

Despite the slow growth in property prices now, analysts described the prospect of so much land being made available as an encouraging sign that activity in the market will increase.

The managing director of property consultancy Jones Lang LaSalle, Dr Yu Lai Boon, for one, believes most of the land will be taken up, as a lot of the sites are targeted at niche markets, such as tourism and entertainment.

It will also lead to more work for the embattled construction sector, he added.

Building demand last year stood at about $11 billion, less than half of its peak in 1996, when it was $24 billion.

In its statement, the ministry said that it expects the increase in the number of tourists and spending generated by the two integrated resorts should create more than enough demand for the extra retail space and hotel rooms.

The resorts, it added, should also help boost the tourism sector and the overall economy.

Assistant Professor Muhammad Faishal of the National University of Singapore's Department of Real Estate noted that a large portion of the land is aimed at attracting the tourist dollar.

'The Government really wants to make the integrated resorts work, which is why they see the need for additional space for entertainment and retail. It can be used to cater to the needs of tourists.'

These include two plots in Orchard Road for two landmark malls. They were put on the reserve list in March as part of plans to 'remake' Orchard Road so it retains its allure.

'All these developments will give tourists more reason to extend their stay when they come to Singapore,' Prof Faishal added.

Many in the property market, however, expressed relief that the five new plots are being put on the reserve list, which means they will be released for tender only if a developer commits to making a minimum bid for a site.

Colliers International's managing director, Mr Dennis Yeo, said that with the bulk of new land available on the reserve list, there is no reason that it will stymie the nascent recovery in property prices.

'Having more sites on the list just means developers will have more options to evaluate what they want.'

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Exciting time for property: JLL

1 July 05

BFC, IRs, Orchard Rd facelifts, New Downtown will transform city

By ALEXANDRA HO


SINGAPORE'S property market faces exciting times as the city undergoes a series of bold transformations with large-scale capital projects, says international property consultancy Jones Lang LaSalle (JLL).


The projects, which JLL estimates to cost about US$7 billion, include the Business and Financial Centre (BFC) in Marina, the two integrated resorts (IRs) with casinos, the development of the New Downtown at the Marina Bayfront area and the facelifts and additions to Orchard Road.

'The developments are expected to result in a major supply-side stimulus to the economy that will bring about the creation of new market spaces,' JLL said in its white paper on Singapore's vision to be a global city.

JLL predicts that the large-scale projects are likely 'to propel Singapore ahead in the region as a key business hub, a cosmopolitan city and an important gateway to both India and China' and with these developments, 'Singapore represents the future'.

More demand for housing could materialise - fuelled by demand from local people as well as by an increase in Singapore's expatriate population in the medium and long term. JLL said that foreigners are attracted to the better economic outlook and Singapore's relatively undervalued assets compared to other cities in the region. But Singaporeans will also buy more private properties or upgrade, according to JLL. That is because the mega projects are expected to contribute to the domestic economy - leading to better employment prospects and pay packages.

For the retail and hospitality sectors, JLL foresees a rise in demand for hotel rooms and serviced apartments, along with an overall increase in the demand for retail space. With its upcoming enhancements, JLL also believes Orchard Road will retain its premier shopping status, remaining the preferred location for new retail entrants.

The BFC's entry - with 4.7 million square feet of prime office, retail and residential space - is a timely development to rejuvenate the office market, JLL says. It found that over 60 per cent of Singapore's CBD office space is more than 12 years old, while 44 per cent is over 17 years old.

'Much of the existing office stock in Singapore is not functionally aligned with the needs of most modern multinational corporations and major financial institutions,' JLL said, citing small floor plates and the lack of the latest technological infrastructure for some of the office stock.

Taken together, the BFC and the New Downtown could trigger more development and redevelopment work in office buildings eager to keep up with the new competition. This could in turn start a new construction cycle for the Singapore office market, JLL says.

July 31, 2005
Jurong to get sports hub and two new parks
These three projects are part of the Government's plans to rejuvenate the area, and will be ready by mid-2006

By Jeremy Au Yong

A SPORTS hub is coming up in Jurong, with facilities for football, hockey and extreme sports such as skateboarding and BMX biking.

Two new parks will also be added to the constituency as part of the Government's plans to rejuvenate the area.

Education Minister Tharman Shanmugaratnam, MP for Jurong GRC, delivered the good news to residents last night at the official opening of another new addition to the district - the Taman Jurong Community Club.

'This is part and parcel of what we want to see in neighbourhoods so that the average family can benefit from a high quality of life. They can stay fit, stay healthy but also mingle with each other close to their doorsteps,' he said, speaking to reporters after the ceremony.

'We (Jurong) have a disproportionate number of residents who have been affected by the previous economic recession because we are close to the industrial zone. But that doesn't mean we can't provide them the best quality of life we can.'

The sports hub, which will be developed with the help of the Singapore Sports Council, is planned for a vacant plot of land on Yung Ann Road, next to the Assyakirin Mosque.

Next to it will be the first new park, named Taman Jurong Greens. The 1.5ha garden will be built by the HDB and will feature fitness corners, jogging tracks and a multi-purpose court.

The second park will be around Jurong Lake. Jurong Town Corporation, which owns the land, intends to add landscaped greenery, a waterfront promenade and recreation clusters.

All three projects are expected to be completed by the middle of next year.

The announcements added to the festive mood yesterday as 10,000 Jurong residents gathered for the opening ceremony. A party celebrating Singapore's 40th birthday was also held, featuring performances by schools and appearances by local celebrities such as Singapore Idol Taufik Batisah, singer Tanya Chua and rapper Sheikh Haikel.

The festivities were capped off with a duet by Singapore Idol runner-up Sylvester Sim and Mr Tharman. The crowd screamed and cheered as the unlikely duo combined to sing the popular Jay Chou number An Jing (Quietly).

Then, the minister belted out another Mandarin song, Teresa Teng's Yue Liang Dai Biao Wo De Xin (The Moon Represents My Heart). He said it was a performance he had worked very hard to perfect.

'I practised for much of last night, so much so that I had sore throat,' he said.

jeremyau@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

Construction looks poised for turnaround

5 Aug 05

(SINGAPORE) The construction sector could at last be looking at light at the end of the tunnel - following its longest slump ever.

The industry has been struggling since it peaked at $24.4 billion in 1997. But indicators such as the first quarterly employment growth in 4 1/2 years, in the January-March period, and double-digit growth in orders in the same period suggest a turnaround could be in sight - though major contractors are far from cheerful.

The Building and Construction Authority (BCA) told BT yesterday that $5.7 billion of projects were awarded in the first half of this year - a 14 per cent rise from first-half 2004.

BCA said that based on the latest surveys and the better first-half performance, the forecast value of contracts for 2005 has been raised from $10-11 billion to $10.5-$11.5 billion.

'The slight upward revision is mainly due to stronger private sector construction demand, especially in residential projects,' it said.

Last year, the construction sector shrank 6.5 per cent to $10 billion.

Simon Lee, executive director of The Singapore Contractors Association, which has about 1,800 members, said most contractors don't sense there is an upturn because it is slow and not widespread.

'The industry will benefit from the increase in construction work awarded, especially the successful contractors awarded the projects,' he said.

But the increase includes some bigger projects, and the effect of these will be limited to those directly involved in them, he noted.

Industry members also find it hard to believe a rebound could be in sight after so many lean years.

'It's been down for so long (that) those who don't get it of course feel nothing,' Mr Lee said. 'Even those who get the jobs - they're numb.'

Besides a lack of contracts, the industry has been buffeted by delays such as that involving the Circle Line after last year's Nicoll Highway collapse. Still, one major project that was finally awarded - in March this year - was the $279 million contract for The Pinnacle@Duxton, clinched by listed Chip Eng Seng Corporation.

BCA said the improvement in the first six months of 2005 was underpinned by strong private-sector demand, with the award of several major projects such as two engineering, procurement and construction industrial projects, City Square Residences at Kitchener Road and The Seaview at Amber Road.

Research house DBS Vickers Securities is bullish on the construction sector. In a note published at the end of the second quarter, it said it expects the industry to start an expansionary phase towards end-2006 on the award of mega contracts such as the integrated resorts with casinos (IRCs) and the Business and Financial Centre (BFC).

'With the construction of the IRC and BFC commencing in 2006 through 2009, we have estimated a jump in the award of construction contracts from $17 billion to $18 billion in 2006 and 2007 respectively,' it said.

DBS Vickers also said that based on the tender price index, tender prices have been rising about 2-6 per cent a year since the start of 2000 because of higher raw materials costs. But it has not seen a significant rise in the margins of construction companies because of keen competition.

Although the bankruptcy tide has receded, the industry continues to find the going tough.

'Contractors are still having a hard time, similar to a year ago, because of the limited number of projects for the various sizes of construction companies,' said Mr Lee. '(Past) bankruptcies have affected the firms, sub-contractors and suppliers, and the credit facilities continue to be very tight for the industry.'

Woh Hup director Eugene Yong said: 'Prices are still very competitive. I don't think they're getting tighter. Productivity has improved and we've been building cheaper.

'We're probably the most active contractor in town. Still, we're always on the lookout at what's finishing, and we try to look for the next project to keep our staff busy.'

Overhanging the industry is a raft of new regulations aimed at improving safety, and these will have a bigger impact on smaller contractors.

'Especially if they apply to existing contracts - who's going to pay for it?' Mr Yong asked.


By SIOW LI SEN

I am going to singapore next year for my first time. I can;t wait to see all of this? This is a cool city

better start saving for the shopping :)

For all aspiring entrepreneurs/real estate developers out there:



Press Release

SLA's "Ideas Tender Scheme" encourages entrepreneurs to suggest new and innovative ideas for use of State properties


Entrepreneurs with new and innovative ideas on how State properties can be best used to fit their business strategies may see their ideas realised when SLA implements the Ideas Tender Scheme tomorrow (26 August 2005).



The Ideas Tender Scheme aims at recognising and encouraging businessmen and entrepreneurs to pursue innovative ideas for uses of State properties.



The pilot scheme allows businessmen and entrepreneurs to provide new or alternative ideas, instead of restricting them to the pre-approved uses. Under this scheme, SLA will not reveal the ideas submitted in the tenders. The successful tenderer's idea can only be revealed at an appropriate time after the winning tender is awarded. This scheme is in line with the First Mover Framework and it safeguards the interest of all tenderers while allowing new or alternative ideas to be considered. (The First Mover Framework was jointly announced by the Ministry of Finance and the Ministry of Trade and Industry in December last year.)



The Ideas Tender Scheme is an addition to SLA's current open tender system for renting out State properties. Under the current system, a tenderer who submits an alternative idea outside the approved uses will not have his tender evaluated as it does not meet the tender requirements.



The Chief Executive of SLA, BG (NS) Lam Joon Khoi said: "Entrepreneurs are in a vantage position to seek out and generate innovative ideas, capitalise on new trends and try out new business models. The Ideas Tender Scheme will allow them to surface good ideas on the use of State properties not previously thought of."



Under the pilot scheme, when SLA places a State property for tender, businessmen and entrepreneurs are encouraged to submit their bids to use the property for any of the approved uses (basic offer). In addition, they can also submit a maximum of two alternative offers. The idea that is selected must meet planning guidelines and be approved by the competent authorities. Details of the Ideas Tender Scheme are at Annex A.



For a start, SLA has identified five State properties and a cluster of seven buildings at Dempsey Road (Annex B) with a wide spectrum of uses. These properties are available for rental up to nine years or less and will be available for public tender progressively. The first property, at Block 22 Dempsey Road, is to be tendered out tomorrow (26 August 2005).



If this pilot project is successful, SLA will place more properties under the Ideas Tender Scheme. Other vacant State properties which have not been selected for this pilot project will continue to be made available in the usual open tender system.



This new scheme is another pro-business initiative by SLA. In March this year, SLA introduced the RentDirect scheme, which allows businessmen looking to rent a State property to make direct offers to SLA from a pre-determined list, instead of participating in a tender system.




Issued by:
Singapore Land Authority
25 August 2005

Sept 3, 2005
$58m food, entertainment mall to come up in Pasir Ris
NTUC Club project part of Downtown East revamp, and will feature Ferris wheel, indoor fun park

By Kelvin Wong

RETAIL therapy is about to reach new heights. A food and entertainment mall coming to the Pasir Ris estate includes its own fun-ride park - and a 20m Ferris wheel.

The $58 million project set to have shoppers in a spin is being developed by NTUC Club - the entertainment arm of the the National Trades Union Congress - and adds to its growing stable of fun venues.

The four-storey building, part of a second phase revamp of Downtown East, will be a 'suburban mall within a resort', said the chief executive of NTUC Club, Chng Hee Kok.

An eye-popping leisure and pleasure mix adds to the usual favourites of ground-level food and beverage outlets plus shopping on various levels.

On the third floor, the indoor theme park is likely to have simulator rides and possibly other amusement rides like those at the popular Berjaya Times Square mall in Kuala Lumpur.

NTUC Club said it will work with an 'American consultant' on the park.

On the same level there will also be a disco and an ice-skating rink. The Ferris wheel will front one of the mall's facades.

The mall's top level will house a multiscreen cineplex seating up to 1,200 people.

The 200,000 sq ft mall is similar in size to Lot 1 Shoppers' Mall in Choa Chu Kang and Tekka Mall, close to Little India.

Work is likely to begin at the end of the year, subject to approval from the relevant authorities, and will take nearly two years.

An existing carpark and bowlingalley at Downtown East, which sits on a 50,000 sq ft plot, will make way for it. NTUC Club will also spend $9 million on a new three-storey carpark next door.

An NTUC FairPrice supermarket and another anchor tenant - likely to be an electronics superstore - will occupy the second storey, together with a children's play area.

Singapore firm Architects 61, whose past projects include Orchard Cineleisure and One Fullerton, will design the as yet unnamed mall.

Mr Chng said: 'We have most of the elements now in place at Downtown East but the retail element is more or less missing.

'For an entertainment and lifestyle destination like ours, you have always got to create new attractions.'

NTUC Club earlier spent $65 million on an extreme makeover of the then-NTUC Pasir Ris Resort. It renamed it Downtown East and introduced land and water rides with its Escape theme park and Wild Wild Wet.

It also recently opened chic nightspot DXO - the former Embassy bar and restaurant - and plans a $45 million resort on Sentosa.

Apart from people in the immediate area, Mr Chng expects the mall to attract visitors from 'within a 5km radius, probably stretching up to Bedok'.

Despite the presence of the White Sands shopping centre right on the doorstep of Pasir Ris MRT station, Mr Chng said the new mall will still be a crowd-puller. This is because it includes features not found at White Sands: the cinema and theme park.

Its unique mix of food, entertainment and shopping will draw young and old, property consultants said.

Knight Frank director of research Nicholas Mak said: 'If you turn it into a conventional mall, you can probably generate more rental.

'But because its location is further away from the MRT, it is good to differentiate itself to draw more people.'

kelvwong@sph.com.sg

Copyright © 2005 Singapore Press Holdings. All rights reserved.

uh 20m ferris wheel is hardly an attraction

BMW revs up competition with new $50m showroom


8 Sep 05

Its facility will sit right next to the Mercedes centre in Alexandra Road

By Christopher Tan
SENIOR CORRESPONDENT

GERMAN luxury car and bike maker BMW must really want to come out a clear winner in its race with archrival Mercedes-Benz - it is building a $50 million glass-encased, globe-shaped showroom.

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2005-09-08/08money.jpg


An architectural first here, the five-storey transparent sphere resting on a body of water is expected to be as talked about as the durian-shaped Esplanade.

And the Mercedes camp will have it in their face every day. The BMW showroom will be sited right next to Mercedes' $40 million Alexandra Road brand centre.

When ready in 2007, the BMW facility - its first in Asia - will be the company's only showroom in the world with such an unusual form. It will also be the first to sit next to a Mercedes showroom.

The bold endeavour will be undertaken by Malaysian conglomerate Sime Darby's wholly owned Performance Motors, the BMW distributor in Singapore. Performance Motors refused to say who the architect was and what it planned to do with its current showroom down the road.

It said its location next to Mercedes was 'coincidental'.

Managing director Simon Rock said the building - a marked departure from all buildings here - will be a sign that 'reflects our ambitious growth plans'.

'We aim to elevate our benchmark status as Singapore's leading luxury vehicle distributor,' he said.

BMW is poised to overtake Mercedes as the top luxury car brand here for the first time this year. In the first eight months of the year, BMW registered 2,018 passenger cars here, against Mercedes' 1,842.

The showroom will 'incorporate material technologies developed from both architectural and automotive design', Performance Motors said.

The centre will have 19,500 sq m of built-up space - about 50 per cent more than Cycle & Carriage's Mercedes facility next door.

Like the Mercedes centre, it will be a one-stop address, with a customer delivery centre, a service and repair workshop, a lifestyle accessories gallery and a showcase for new BMW vehicles displayed on a spiral ramp. It will also have an underground carpark.

Mr Roland Kruegger, managing director of BMW Asia, described Sime Darby's investment as 'very substantial' and 'a farsighted and important business decision'.

This is not the first time Performance Motors is raising eyebrows in the industry. Four years ago, it launched a privilege programme for owners of the BMW 7-series. The scheme includes membership at Phuket's Blue Canyon Country Club and use of a 51-foot Riviera-class yacht.

:!

whats mercedes' showroom going to look like?

nothing as eye-popping as this I presume

Demand for Grade A office space up

28 Sep 05

Occupancy, rentals rise in Q3 as financial sector expands, upgrades

By ALEXANDRA HO


AS the financial services sector expands with the strengthening economy, it lifted demand for office space and improved occupancy rates and the rental index in the third quarter of this year. But the phenomenon is more apparent for Grade A offices in prime areas, according to property consultancy Knight Frank.


Occupancy edged up 0.7 per cent, while the rental index rose one per cent in Q3. Knight Frank believes growth in occupancy was driven more by a drop in the stock of office space rather than a rise in demand. It estimates that the islandwide office stock was 6.45 million square metres, after falling from Q2's 6.47 million sq m. 'This was the fifth consecutive quarter of decline in the vacancy rate,' director Nicholas Mak said in the report.

The preference for prime Grade A buildings is highlighted by vacancy rates - at 5 to 9 per cent in some premium Grade A buildings versus 11 to 15 per cent for older Grade B buildings, according to Knight Frank.

Also, gross effective monthly rents in Q3 rose 5.2 per cent to $5.20 per square foot per month for prime Grade A in Raffles Place. Grade B buildings in the same area command $4.39 psf a month.

Property consultancy CB Richard Ellis (CBRE) pegs the average prime office rent this quarter at $4.90 psf per month, 4.3 per cent up from Q2.

Financial services companies, followed closely by construction companies, generate the largest demand for office space. It's not just new businesses, but also existing large financial service providers moving to newer buildings with larger floor plates and better features that are strengthening rents.

Knight Frank expects owners of older buildings to announce upgrading plans to hold their own against the onslaught of competition, especially with 2.6 million sq ft of office space from the Business and Financial Centre slated to enter the market from 2010. Buildings singled out by Knight Frank for refurbishment announcements include Ocean Building and Straits Trading Building.

'Given the limited new supply and positive demand outlook, we expect the tightening availability of office space to continue over a three to four-year horizon,' said CBRE's executive director Soon Su Lin. 'We would also expect further upward pressure on rents. Tenants would be well advised to initiate their premises review and planning exercise in view of limited options. Rental growth should accelerate faster than the average 3.5 per cent quarter-on-quarter increase seen during the recovery phase which commenced in 2Q04.'

In industrial property, Knight Frank says this quarter's demand is still 'recovering very slowly', with tenants holding more 'bargaining power'. Rents are largely flat, as is overall leasing demand.

Yep, Straits Trading Building would badly need a refurbishment :-)

Hi,

I am new here and would like to ask if anyone has information related to Fusionpolis at Ayer Rajah. Need the following:

1. Rendering of the buildings
2. Structural system for the buildings
3. Any other useful information.

Thanks!

Hi,

I am new here and would like to ask if anyone has information related to Fusionpolis at Ayer Rajah. Need the following:

1. Rendering of the buildings
2. Structural system for the buildings
3. Any other useful information.

Thanks!

This link (http://www.skyscrapercity.com/showthread.php?t=149241) might be helpful. :)

http://www.fareast.com.sg/landmark/2q2005/img/sf01_title2.gif

In the past three to four years, many multinational companies have been looking towards North Asia, focusing their business efforts in China, Japan, and Korea, as well as India in South Asia. Recently, however, with the South East Asian economies stabilising and the continued strengthening of trade relationships within this sizeable region, foreign investors who have previously neglected this area are returning again.

Mr Michael Ng, Managing Director of Savills (Singapore) Pte Ltd, points out that to penetrate into the South East Asian region, these foreign investors will likely choose to set up in Singapore due to its excellent infrastructure and well developed communication network. Moreover, with the current supply of office space at about 700,000 sq ft to 800,000 sq ft and demand outstretching supply by 200,000 to 300,000 sq ft in an average year, there could be a shortage of Grade A offices in the coming years. In a good year, demand could go up to one and a half to two million sq ft.

In addition, the two integrated resorts to be built in Singapore will bring in about five billion dollars worth of investment. With the additional benefits and spin-offs resulting from the development of these integrated resorts, South East Asia is slated to become very lively in the near future.

These increasing activities will in turn see a stable and healthy demand for offices locally.

Mr Ng adds, “At the moment, it is very difficult to find a Grade A office. Much of the current supply has been booked. At the same time, rental for Grade A offices is now approximately $4.50 to $4.60 psf per month. For a small office of about 700 to 800 sq ft, rental goes for about $5 to $6 psf per month. I expect rental rates to improve within the next 12 to 18 months.”

http://www.fareast.com.sg/landmark/2q2005/img/sf01_table.gif

Source from: http://www.fareast.com.sg/landmark/2q2005/sf02.htm

Far East's magazine does have lotsa 'fun' articles on their projects :)

meaning? interesting?

yah interesting writeups on their projects...a kind of marketing lah, but they do put in the effort

hey didnt the newspaper said that there is construction for Singapore national Museum? Why isnt there a thread about it??

^^^ created a thread for it :D

Govt to resume outright land sales, release more sites

9 Nov 05

By Joyce Teo and Grace Ng

IN ANOTHER sign that the property market recovery is gaining momentum, the Government is bringing back its practice of putting land sites up for sale outright, instead of first testing the market, as it has for the past four years.

National Development Minister Mah Bow Tan unveiled the shift of strategy in a speech to property market leaders last night, when he also expressed optimism over the recent upswing in the property market.

'All sectors of the property market are showing signs of improvement at the moment,' he said, while cautioning that factors such as interest rates, terrorism and bird flu could affect the recovery.

The Government will also be releasing more residential sites to replace those taken up by developers in the second half of this year.

More hotel sites will also be offered to support the anticipated growth in tourist arrivals.

On the system of testing the market by using a 'reserve list' - whereby land is put up for tender only if a developer agrees to bid a minimum acceptable price - Mr Mah said it will continue to be an 'important instrument'.

'However, from time to time, the Government will use the confirmed list to release sites where appropriate,' he said at the 46th anniversary dinner of the Real Estate Developers' Association of Singapore (Redas). The 'confirmed list' means that land is put up for tender at a pre-determined date, without the need for it to be triggered by any application.

In June, the Government brought back the confirmed list for industrial sites. It introduced the reserve list in June 2001 and suspended the confirmed list in October 2001.

Mr Mah said the first site the Government wants to put on the confirmed list is a commercial site at Collyer Quay, which consists of Clifford Pier and Customs Harbour Branch buildings.

The Government has already indicated it wants to redevelop this site - which was put on the reserve list in June - into a lifestyle hub.

Knight Frank research director Nicholas Mak said bringing back the confirmed list is an indication that the property market is well on track to recovery.

While developers largely view the return of the confirmed list as generally positive, they are concerned the market is not yet ready as land released under the confirmed list may flood the market.

The property market is not bullish enough to warrant a return to the confirmed list system, said Ho Bee Investment's executive director, Mr Ong Chong Hua. 'It is just starting to see an upturn, and the reserve list has served it well in the past few years,' he said.

Redas president Kwee Liong Keng said in a speech at the same event that Government policy changes earlier this year helped to restore confidence in the market.

But he added: 'Even as we celebrate the better times that we are experiencing, we know that growth has been patchy and the market has yet to fully come out of the woods.

'I therefore urge the Government to continue with its policy of releasing only through the reserve list for the moment,' he said.

In his speech, Mr Mah also warned of a need to ensure that the property market's recovery is not derailed by speculative activity. He added there is no indication yet of any rise of speculative activity in the market as a whole.

Home buyers, he said, need to exercise prudence when buying property.

Business Times - 12 Nov 2005

Market Street Car Park gets $14 million makeover

By ALEXANDRA HO

MARKET Street Car Park is undergoing a makeover, not just to spruce it up but also to remarket it to become more than just, well, a car park.

Owner CapitaCommercial Trust (CCT) yesterday started $14 million asset enhancement work on the eight-storey development.

Besides about 800 parking spaces, it will have new F&B and services outlets when the refurbishment is completed in September next year. The car park will continue in operation throughout, although the present F&B and services outlets will be closed.

The refurbishment adds about 30 per cent - or 4,300 sq ft - of extra space for F&B and services outlets, Martin Tan, CEO of CapitaCommercial Trust Management, the manager of CCT, said, bringing it to a total of around 20,500 sq ft.

CCT says 50 per cent, or over 9,500 sq ft of space has already been pre-leased. The entire property will have over 30 tenants. One F&B concept is Honjin @ The Pod, a standalone outlet which CCT says will offer a 'unique culinary experience with its Pan-Asian menu'.

Other tenants include a local cafe, a pharmacy, convenience stores and beauty services.

Mr Tan said that rent levels would rise.

He also said that CCT will review the car park charges, but would not say if car park rates would be raised.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 12 Nov 2005

NUS to build new $400-500m university town

THE National University of Singapore (NUS) is planning to spend around $400-500 million to develop a state-of-the-art university town on the site of the former Warren Golf Course.

The funding will be coming from the Ministry of Finance's Public Private Partnership framework. The university is also exploring options with the Ministry of Education, said Leila Thayalan, head of media relations for NUS.

Planning for the 19-hectare site has already started, and the project is expected to be completed by 2009. The development will include eight residential colleges accommodating up to 6,000 students. Amenities include a sports centre, an amphitheatre, a cinema, a library, an aquatic garden, shops, cafes and restaurants. The site will be linked to the main campus by a multi-tiered vehicular and pedestrian bridge, which will feature student-run cafes and stores.

Each residential college will have its own distinctive character to foster a greater sense of belonging and identity among students, the university said. The residences will come in different configurations with apartments ranging from four to eight bedrooms. The residential colleges will allow students from different disciplines and nationalities to have more opportunities to interact and learn from each other. 'This 'no-walls' learning and living habitat will provide a rich and meaningful educational experience,' said NUS president Shih Choon Fong.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 12 Nov 2005

Market Street Car Park gets $14 million makeover


Is it the Golden Shoe ?

^^ nope i dont think so...

More possible projects in the pipeline :)

Analysts cheered by govt move on land sales

30 Nov 05

Absence of housing sites on confirmed list seen as a plus point for market recovery

(SINGAPORE) In a move viewed as positive for the nascent recovery in the property sector, the government is maintaining a market-led approach in its land sales programme.

As indicated earlier, it has re-introduced the confirmed list for the first-half 2006 Government Land Sales (GLS) programme after a hiatus of about four years - but it has put just one site on this list. This site is a plot at Collyer Quay, comprising the existing Clifford Pier and the former Customs Harbour Branch buildings. It is now on the reserve list but has been moved to the confirmed list for H1 2006.

The Ministry of National Development (MND) is, however, adding eight sites to the H1 2006 reserve list, including a plum commercial site next to Somerset MRT Station. 'It's a relief that they have not put any residential sites on the confirmed list,' said CIMB-GK analyst Tricia Song.

National Development Minister Mah Bow Tan indicated earlier this month that the Collyer Quay site would be put on the confirmed list. This is to complete the loop of attractions coming up around Marina Bay.

Some property players had feared the government might put a host of other sites on the confirmed list, under which sites are sold according to a pre-stated schedule, regardless of market interest.

Instead, MND's announcement yesterday shows it has chosen to retain the reserve list as the mainstay of the GLS programme for private residential, commercial and hotel sites. This is a more market-driven land sales mechanism, since sites are released for tender only if there is a successful application by a developer undertaking to bid at a minimum price acceptable to the government.

The gem among the eight new sites that MND is adding to the reserve list is a choice commercial site, part of which is now used as a car park next to Somerset MRT Station. This is the second Somerset plot offered by the government, after the former Glutton's Square plot on the other side of the station. The tender for the Glutton's Square site closes on Jan 18. Market watchers say the state is most likely offering the latest site in response to keen interest in the Glutton's Square parcel.

In all, the eight new reserve-list sites comprise: three residential sites - at Simei, Bishan and West-wood Avenue in Jurong; two commercial sites - at Orchard Rd/Somerset Rd and New Bridge Rd/North Canal Rd; and three hotel sites - at Clemenceau Ave/Unity St, Sinaran Drive near Novena MRT Station, and Bencoolen Street.

With 15 remaining sites on the H2 2005 reserve list which will be rolled over to H1 2006, a total of 23 sites will be available for application from the reserve list in H1 2006. They can potentially generate about 4,320 private homes, 1.35 million sq ft of commercial space and 1,305 hotel rooms.

The sole confirmed site at Collyer Quay, comprising two buildings slated for adaptive use for retail and lifestyle developments, can generate with about 107,600 sq ft in gross floor area. The site will be launched for tender in June next year.

Developers seem quietly pleased with MND's announcement. 'There were no major surprises from the announcement,' said City Developments group general manager Chia Ngiang Hong.

Agreeing, Knight Frank managing director Tan Tiong Cheng said: 'The news is neutral to the property market in the sense that it doesn't rock the boat. It will give time for the recovery, especially in the low to mid segments of the housing market.'

Interestingly, the GLS programme for H1 2006 does not include any office site in the Central Business District, reflecting the government's approach to leave some breathing space for the Business & Financial Centre development.

MND continued to highlight other sources of government land supply for H1 2006. The two Integrated Resorts at Marina Bay and Sentosa could generate about 1.08 million sq ft of retail space and 3,400 hotel rooms, as stated previously. And about 1.3 million sq ft of commercial space, mostly for retail use, may emanate from other sources. There will also be sales of plots for 250 private homes at Sentosa Cove and hotel sites on Sentosa and elsewhere that can generate some 1,100 hotel rooms in H1 2006.


http://business-times.asia1.com.sg/mnt/media/image/launched/2005-11-30/BT3142385_30_11_2005.jpg

Does someone know what's going on with this just behind UOB ?

http://membres.lycos.fr/pengui/051126_construction01.jpg

if not wrong, they are demolishing it floor by floor...

This story was printed from TODAYonline

Punggol 21's not quite come of age

Easier to get around, but township's still waiting for the buzz

Tuesday • December 6, 2005

Christie Loh
christie@newstoday.com.sg

THE streets of Punggol reveal nothing of its pig-farm past.

Clean and modern, the township boasts HDB blocks with hues and architectural details distinct from most public housing. The bay windows, for instance, stretch from floor to ceiling like a condominium's. And linking each cluster of flats are landscaped footpaths known as "green connectors".

Such features were what won over Mr Chua Koek Beng, 65, a retiree who applied for a Punggol flat upon learning of the Government's grandiose plan.

"They said it would be a new-generation estate. But having lived here for a year, I'm disappointed," he said.

Mr Chua had expected to see the estate buzzing with people, with fun and food by the water and amenities typical of a mature town.

Watersport centres, seafood villages, Safra (Singapore Armed Forces Reservist Association) clubs and libraries were the selling points of the Punggol 21 plan, spelt out just months before the 1997 General Election (GE) — none of which have materialised so far.

Instead "it's really nice and quiet," said Mr Thanabalan, 25, an entrepreneur who has lived in the area for the past three years.

When contacted, a Housing Development Board (HDB) spokesperson said that the economic downturn in recent years has led to lower demand for new flats, and "hence the pace of development in Punggol Town has slowed down".

But the economy has showed rosy headline growth of late. And, in the last two months, the Government has unveiled multi-million dollar renewal plans for the Town Councils of Sembawang, East Coast, Tampines and Aljunied. With murmurings of a GE growing louder, will the cheer soon spread to the People's Action Party-controlled (PAP) ward of Pasir Ris-Punggol GRC?

Perhaps, but there's a catch: According to HDB's annual report, Punggol 21's population was 51,600 as of end-March — small compared to, say, 30-year-old Tampines with its 226,000 people.

That is one reason why Punggol has yet to bloom fully, the ward's MP Penny Low told Today: "The commercial vendors have to make their own calculations. We will certainly represent the residents in pushing for more amenities."

Added an HDB spokesperson: "Facilities will be introduced progressively as the town grows."

But why has there been no word about supposed tenders for the establishment of a seafood village, plant nurseries and a sea-sports centre at the northern tip of Punggol Road? Ms Low would only say that the town's caretakers "are on track in the quest for more activity space within the community".

An Urban Redevelopment Authority spokesperson added that the agency is currently working with several parties to implement some of the ideas in the Punggol 21 blueprint.

But recreational spots are not all that residents are seeking.

Housewife Mahedah Abdul Manaf, 47, said she wanted to see more public service offices, such as CPF branches, commonly found in big towns including Bishan and Woodlands.

Mr Lim Teck Hut, 50, a book deliveryman, feels there are too few shops.

"If shopkeepers raise prices now, residents would be helpless," he said, noting that groceries in the new town cost substantially more than they do elsewhere.

In other areas, things are looking up. When he moved in four years ago, retired accountant Foo Ah Chye, 62, had to jostle to board the town's sole bus service, taking more than an hour to reach his Orchard Road workplace. Today, the MRT train gets him to the shopping belt in 20 minutes.

"The bus used to be so full it couldn't move. However, since January, we've had the LRT — very convenient," he said.

Similarly, the number of bus services plying the area has grown to eight.

Coffeeshops, grocery stores and malls have also been springing up, pointed out MP Low, while admiting there is room for improvement.

But will the Punggol 21 concept be an election issue again?

The sleepy town's development hung in the balance during the 1997 GE, in which the PAP fought the Workers' Party for control of Cheng San GRC, which at the time included the town of Punggol.

However, Ms Low said the Punggol 21 concept is unlikely to be a "sour issue" in the upcoming GE.

"Many residents and grassroots leaders have expressed appreciation of the estate's improvements in terms of transport and amenities in the last few years," she said.

As for the opposition parties, residents said they have not seen them making their rounds in their neighbourhood.

The last time the Workers' Party visited the Pasir Ris-Punggol GRC was in Dec 2003 at Pasir Ris Drive 6, according to its website.

Copyright MediaCorp Press Ltd. All rights reserved.

http://i.today.reuters.com/genImage.aspx?uri=2005-12-09T151304Z_01_NOOTR_RTRJONP_2_India-227194-1-pic0.jpg&resize=full

CapitaLand chief executive Liew Mun Leong stands near models of CapitaLand buildings before an interview in Singapore December 9, 2005. CapitaLand Ltd. plans to pay a special dividend following the sale of its hotel assets and will make its first move into India in coming months, Liew said on Friday. REUTERS/Vivek Prakash

http://in.today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2005-12-09T151304Z_01_NOOTR_RTRJONC_0_India-227194-1.xml

Business Times - 23 Dec 2005

HK developers make big S'pore comeback

They are again set to play a major part in rejuvenating the skyline, but this time as partners of big S'pore listed developers

By LESLIE YEE

(SINGAPORE) More than a decade after they launched Suntec City, Hong Kong parties are again making waves in the Singapore property scene.

Property heavyweights from Hong Kong - jointly or with local partners - accounted for about 90 per cent of the estimated $2.7 billion generated from land sales by the Urban Redevelopment Authority so far this year, according to a compilation by The Business Times. Hong Kong parties have been involved in the winning bids for three of eight vacant sites awarded by the URA in 2005.

http://business-times.asia1.com.sg/mnt/media/image/launched/2005-12-23/BT3266226_23_12_2005.jpg

Property analysts say Hong Kong developers are bullish on Singapore, where the real estate market, despite its recovery, has lagged Hong Kong and other Asian cities.

'Hong Kong parties believe that with improving regional economic prospects and government efforts to make Singapore a great place to live, work and play, property prices here will head up,' says Colliers International managing director Dennis Yeo.

In the recent past, Hong Kong developers have participated in residential and office developments such as One Raffles Quay. But the projects they are now going to undertake are seen to be as significant as Suntec City.

Some of Hong Kong's richest tycoons bought land from URA in 1988 and developed the iconic Suntec City for around $2 billion. Li Ka-shing, who is Hong Kong's richest man, shipping tycoon Frank Tsao, entertainment mogul Run Run Shaw and property tycoons Lee Shau Kee and Cheng Yu-tung were among the investors in Suntec City.

Hong Kong players are again set to play a major part in the rejuvenation of Singapore - but this time the charge is led by big listed property developers.

Winning consortiums for the Orchard Turn and the Business & Financial Centre (BFC) development sites were Temasek-linked companies partnering Hong Kong developers, leaving local heavyweights like Kwek Leng Beng of City Developments and Ng Teng Fong of Far East Organization on the sidelines.

Earlier this month, Hong Kong's Sun Hung Kai Properties (SHKP) made a major foray into Singapore property. In that deal, it is a 50 per cent stakeholder in the winning consortium alongside CapitaLand for the Orchard Turn site. The partners clinched the site for $1.38 billion.

SHKP's controlling shareholders - Walter Kwok and family - are ranked number three in Asia on Forbes' 2005 billionaires' list, with wealth estimated at US$10.9 billion. The Kwok family partnered CapitaLand and others in an unsuccessful bid for the BFC site.

Hongkong Land, with Li Ka-shing's Cheung Kong Holdings and Hutchison Whampoa, partnered Keppel Land to win the tender for the BFC site. The land cost alone for phase one of the BFC project works out to around $1 billion.

'Hong Kong developers recognise a prime site when they see it and are willing to pay prime prices,' says Chesterton International's head of research Colin Tan.

Colliers' Mr Yeo says that with the emergence of real estate investment trusts in Hong Kong, developers there can monetise investment properties and use the money for development opportunities. Also, with a Reit market developing in Singapore, Hong Kong developers have a ready exit option for their projects, Mr Yeo notes.

Market players say the resources and aggressiveness of the big Hong Kong developers have driven their bullish bids for sites. Analysts expect further interest from them and Hong Kong investors in Singapore next year.

An SHKP spokesperson says the Orchard Turn project will be a relatively minor part of SHKP's investment property portfolio, and does not change the company's strategy of concentrating on Hong Kong and mainland China.

Hong Kong property heavyweights SHKP and Cheung Kong have market capitalisations of about $40 billion each, against CapitaLand's $9.4 billion and CDL's $7.5 billion.

Chesterton's Mr Tan thinks that with Orchard Turn, SHKP can bring new retailers to Singapore, while with the BFC, Cheung Kong and HK Land will have little to worry over cannibalising demand from other office properties.

Hong Kong parties have a good track record in commercial property in Singapore. Suntec City proves highly profitable. And HK Land and Cheung Kong are partners with KepLand in developing One Raffles Quay, which sits on a site fronting Marina Bay bought from URA in 2001.

Besides mega projects, Hong Kong parties have also been active in other parts of the market. Li Dak Sum's Carlton group won a URA tender for a Bras Basah hotel site with a bid of $55.6 million in January. And the Park Hotel Group paid $300 million for the Crown Hotel on Orchard Road in June.

Other Hong Kong developers, like HKR International, are reported to be scouting for opportunities. Other foreigners also appear upbeat on Singapore's property. Malaysia's IOI group was the second highest bidder for the Orchard Turn site.

Indonesia's Lippo Group, which has a strong presence in Hong Kong, has also emerged as a major player. Lippo bought a residential site at Alexandra Road/Tiong Bahru Road with CapitaLand for $180 million in November. Lippo also bought 78 Shenton Way and Newton Heights.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

^^

funny pic! :lol:

But its true I guess...they are big property players with deep pockets and daring

03 January 2006

Pavilion cineplex, DBS Tampines Centre put up for collective sale
By Loh Kim Chin, Channel NewsAsia

SINGAPORE: Two commercial buildings next to the Tampines MRT station have been placed for collective sale by tender.

The two buildings are the eight-storey DBS Tampines Centre and the four-storey cineplex, Pavilion.

They are slated for redevelopment into a five-storey shopping complex with three basements at a plot ratio 4.2.

The two buildings have a net lettable area of over 262,000 square feet and sit on a combined land area of about 91,000 square feet.

After redevelopment, the two plots will yield a total gross floor area of 381,000 square feet.

The combined sites are expected to fetch at least S$200 million.

That does not include the S$10.8 million for development charge. - CNA /ct

Copyright © 2005 MCN International Pte Ltd

Nathan Place: a cute lowrise condo on Nathan Road.

http://membres.lycos.fr/pengui/ssc/060206_nathan_place01.jpg
(taken on 6th February 2006).
The project includes refurbishment of an old building (pigeon house or something like that).

Oh and here's a new 10 storey building behind the shophouses on Mohammed Sultan Road:
http://membres.lycos.fr/pengui/ssc/060206_mohamed_sultan_road01.jpg

^^

it looks weird...never really noticed it...what IS it?

I think it is this:
http://membres.lycos.fr/pengui/ssc/050304_mohamed_sultan01.jpg

It sure looks quite weird :-) Unfortunately I only have this pic but the part on the left of the two last storeys is completely hollow with what looks like a terrace.

interesting :yes:

that looks really nice! do you have the name of the project?

Nope.

Business Times - 23 Feb 2006

SoHo units will be main draw of Selegie Rd project

There will also be serviced residences and retail space, says CapitaLand

By KALPANA RASHIWALA

OFFICES and small office, home office (SoHo) units will be the main components in the new project CapitaLand is building on the former Selegie Complex site.

There will also be some serviced residences and retail space. The project, being built on a 7,000 square metre site at the foot of Mount Sophia, is slated for completion in 2008.

http://business-times.asia1.com.sg/mnt/media/image/launched/2006-02-23/BT_3580304_22_02_2006.jpg

A CapitaLand spokeswoman said: 'The Selegie site will be redeveloped into a vibrant integrated lifestyle hub within the new Singapore Arts, Culture, Learning and Entertainment precinct.'

Selegie Complex was part of the portfolio of the former Pidemco Land, which in 2000 merged with DBS Land to form CapitaLand. Pidemco is said to have acquired Selegie Complex when it bought Urban Development Management Company, which had owned the property, in 1995 as part of a reshuffling of assets within its parent Temasek Holdings.

It was reported in 2004 that the Selegie Complex site had about 65 years left of its original 99-year lease. Market watchers reckon CapitaLand would have had the lease topped up to the original 99 years by now, or at least that it would be in negotiations on the matter.

The CapitaLand spokeswoman said that the office units in the new development will be intended for business schools, professional consulting firms, trading companies and creative services operations, while the SoHo units will be pitched at professionals and those in the creative industry, in addition to students from overseas.

The project's retail concept will target young, trend-setting individuals studying, working and living nearby. 'Trendy pubs and alfresco cafes will offer cool hangouts, while the shop units will showcase eye-catching designs and a unique retail offering with differentiating identities,' the spokeswoman said.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Business Times - 01 Mar 2006

PROPERTY
Five bids for DBS Tampines Centre, Pavillion

Highest bid of $289m from Pramerica Asia entity: sources

By KALPANA RASHIWALA

THE combined tender for DBS Tampines Centre and the adjacent Pavillion complex near Tampines MRT Station has attracted five bids, with the highest of almost $289 million coming from an entity controlled by Pramerica Asia, sources say.

Pramerica Asia, formerly known as GRA Singapore, is said to have placed its bid on behalf of Asian Retail Mall Fund II, for which it is the fund and asset manager.

Its bid price works out to about $780 per square foot of potential floor area, including an estimated $10.8 million in development charges payable to the state to redevelop the combined site into a new mall with much more floor area than the two existing buildings together.

Analysts say Pramerica Asia's bid price works out to a breakeven cost of about $1,800 psf for a new mall. This assumes it does not top up the combined site's lease - the remaining tenure is about 83 years - to the original 99 years.

Based on this breakeven cost, it may be possible for Pramerica to achieve a net property yield of at least 6 per cent by the time the new mall is completed in about three years.

Outline provisional permission has been obtained to redevelop the combined site of about 90,700 sq ft into a five-storey shopping centre with three basements, with a 4.2 plot ratio (ratio of maximum gross floor area to land area).

Besides Pramerica Asia, other bidders for the properties may have included CapitaLand, Centrepoint Properties, Lippo group and Lend Lease, sources suggest.

DBS Tampines Centre was securitised by DBS Bank in 1999. The eight-storey block has shops in the basement and on the first and second storeys, and offices on the upper floors.

The four-storey Pavillion, owned by Cathay Organisation, was formerly used as a cineplex but is now leased for food and beverage, and entertainment use.

Knight Frank, which handled the joint tender for the two properties, declined comment yesterday.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

I wonder if more downtown office sites will be released if the demand continues to be strong :happy:

Singapore office market on the upturn

11 Apr 06

THE office market has moved beyond the recovery phase and into a strengthening mode, a phase that has every sign of being sustainable for a number of years provided Singapore's strong economic performance continues. Occupancy levels are healthy across most segments of the office market and look set to increase off buoyant tenant demand. Rents are poised to rise at a faster pace, reversing almost 10 years of deflationary office rents and prices, save the short-lived spike of dotcom 2000.

http://business-times.asia1.com.sg/mnt/media/image/launched/2006-04-11/20060411_8.jpg

This seems a far cry from the doom and gloom that hung over the office market only a couple of years back. So what has happened and what makes us so confident in the outlook for this sector? We observed the first signs of the office market stirring in late 2003 when a selected number of CBRE's investment bank clients indicated that they were gearing up for a modest increase in headcount. This was exciting enough after the sector had just endured three desperately thin years of tenant demand, but when we also started to field inquiries from a number of MNCs considering global offshoring projects, recovery of the office market became a distinct possibility.

While the increased demand was led by the financial sector, in particular the growth in private equity and investment banking, the IT sector followed closely behind. In due course occupier expansion become broadbased.

Back in 2003 the average prime office rent was $4 per sq ft per month (equivalent to 1985 levels). Some even thought this might sink lower. So, more than a few eyebrows were raised when we made a call that office rents would rise 50 per cent in the following three years. With the average prime rent at $5.50 psf per month (+38 per cent) currently, the questions now are just how far rents can climb from here, and, will they return to the peak levels of the mid-1990s? It is my view that rents will increase a fair bit further and quite possibly hit their previous peak.

Today's rent level is some 13 per cent below the last 10 years' average prime rent and 40 per cent below the 1997 level. It seems there is ample room for further rental growth. Let's have a look at some of the key reasons.

Most importantly, there is extremely limited new office supply in the pipeline. We estimate that there are only 3.55 million sq ft of known new office construction up to 2010. This is only about 41 per cent of what would typically be expected to be completed over this period. And no less than 76 per cent of the total new office supply is tied up in two major developments: One Raffles Quay (ORQ) and the Business and Finance Centre (BFC). The 1.3 million sq ft ORQ is already approaching a staggering 80 per cent pre-commitment in advance of its phased completion in April and October this year while the BFC's 1.4 million sq ft space will not be ready until 2010.

If we assume that office demand continues at an average of 1.5 million sq ft per annum (roughly in line with the past 10 years), then there will be a shortfall of around 3.95 million sq ft through to 2010. This will result in occupancy levels islandwide rising above 92 per cent, which happens to be the occupancy levels in the mid-1990s. Of even more significance is that Grade A buildings could have virtually zero vacancy by 2008/09 pending the arrival of the BFC.

Another factor which may help maintain rental growth momentum is that Singapore is relatively cheap for office space. Rents can rise significantly without the city becoming uncompetitive. Singapore had slipped to the 63rd position in terms of occupancy costs in our latest Global Market Rents survey. It ranks well below Sydney (44th), Shanghai (43rd in Pudong and 47th in Puxi), Beijing (60th), not to mention Hong Kong which has moved up to eighth position. A multinational that wishes to lease the best office space in Hong Kong Central or in Tokyo will need to budget for 2.5 times and 3.5 times respectively more than the rent required in Singapore.

Taking account of both internal and external office market data, we have raised our market rent forecasts for Singapore for the second time in six months. Barring any external shock, we can see average prime rents increasing by 50 per cent from today's level through to 2008-09. This would deliver average prime rents above $8 psf per month. Don't be surprised, however, if rents start to test the historic peak of $10 psf per month, particularly for the best quality buildings. This is an outlook for about three years hence. The following are a few trends to look out for:

Consolidation of prime CBD: One Raffles Quay and the BFC will be the largest concentration of Grade A space. While we expect the volume of large tenant relocations within the CBD to tail off over the next few years due to the absence of any sizeable new developments, the BFC seems well placed to catch the next wave of major tenant movement by the end of the decade.

Renewed interest in business parks: As larger occupiers' premises options become increasingly constrained, it is possible that some will relook the opportunities available in business parks including build-to-suit. Interest could develop further as Singapore's office rent base increases. The rent delta between prime CBD and the business parks is typically 50 to 60 per cent. In a low rent regime, this translates to a saving of just $1.50 to $2.50 psf per month by going to a business park. There have been few takers for this type of move over the past few years when CBD space was cheap and plentiful. Two to three years out, the rationale for decentralisation could be pretty persuasive.

More back office set-ups: Contributions will come from two drivers. Firstly, further global offshoring investment coming into Singapore. We are currently advising many multinationals moving operations to Singapore from higher cost locations. To give a sense of scale, these set-ups could bring in up to 2,000 more high-end jobs.

Secondly, existing large occupiers in the CBD may need to split operations as they run out of space for front office departments. We have seen a number of banks moving support functions out of town to free up space to accommodate growth of private equity and corporate banking. The implications for the office market include likely increased demand for fringe and decentralised buildings, early pre-commitments to the decentralised developments in the pipeline and more activity in business parks.

Land release: This is perhaps the million sq ft question. The planners will be mindful that developers and landlords have had a fairly torrid run since 1997. It is not, therefore, unreasonable for the property sector players to be allowed a period of improved returns. As noted earlier, the office cost base in Singapore can move upwards without impacting the city's competitiveness. To this extent, we would expect the Urban Redevelopment Authority to be prudent in any land release programme. In the short term, the focus might fall on a few decentralised sites.


By MORAY ARMSTRONG

This look nice for a hospital.....:yes:

04 May 2006

Design of new Alexandra Hospital at Yishun revealed
By Asha Popatlal, Channel NewsAsia

http://www.channelnewsasia.com/imagegallery/store/phpEJ0auu.jpg

SINGAPORE : Alexandra Hospital, which will be moving to Yishun, on Thursday showed off what the new hospital would look like.

The 450-bed hospital is expected to be completed by end 2009 at a total cost of S$400 million.

A hospital in the northern part of Singapore is something the residents there have been looking forward to, for many years now.

The tender for its design was awarded last November.

Revealing the design on Thursday, hospital authorities said they want it to be an open and friendly design that will minimise the amount of waiting time and shuttling between departments.

They hope to do this without being more expensive than other hospitals.

It is also going to be set in a green environment overlooking Yishun Park and a pond.

There are also plans to use technology, such as SMSes, to reduce the number of visits for a patient.

Liak Teng Lit, CEO, Alexandra Hospital, said, "Going to a hospital can be a very stressful experience for most people. You don't know how long you have to wait and have to go all over the place to get what you want, and after a few hours you get out.

"(At) this hospital we are trying to minimise patients movements...it's intuitive - you get in there, you know where to go, and once you get to where you want to go, everything is laid out...served...all within 1 hour..." - CNA/ms

Copyright © 2006 MCN International Pte Ltd

15 May 2006

Downtown East to get S$80m facelift
By Loh Kim Chin, Channel NewsAsia

SINGAPORE : Downtown East in Pasir Ris is getting a new look - to the tune of S$80 million.

After the facelift in November next year, a new four-storey iconic building will be fronted by a giant multimedia display with LED lights, hoisted on a tower about 30-metres high.

A 25-metre ferris wheel will be mounted on its side.

The 200,000 square foot mall will have shops and food and beverage (F&B) outlets, along with a multi-screen cineplex, a six-level carpark and 32-lane bowling centre.

Imelda Saad, Manager, NTUC Club, said, "It's part of our continued efforts to really rejuvenate and revamp Downtown East so that each time our guests come here, it will be a new experience for them... we will also help...to refresh and and rejuvenate the Pasir Ris town itself."

NTUC Club has already spent more than S$53 million making over the former NTUC Pasir Ris Resort since the year 2000.

Downtown East attracts some 6 million visitors each year. - CNA/ms

Copyright © 2006 MCN International Pte Ltd

URA ready to release site for new hotel along Singapore river

23 May 06

http://www.ura.gov.sg/sales/clemenceau(23May06)/Landparcel.jpg

SINGAPORE : The URA is ready to release a new development site fronting the Singapore River for the building of a hotel -- if developers are interested.

The 99-year leasehold site at Clemenceau Avenue and Unity Street covers 0.4 hectares and lies close to the Central Business District, Orchard Road, Marina Centre, Chinatown, and Downtown at Marina Bay.

The successful bidder for the site can build up to four storeys fronting the river and up to 10 storeys facing away.

The tourism board is keen for developers to build more hotels here, as there are predictions of a looming shortage in rooms. - CNA /ct

Lippo snaps up $1b worth of prime property

28 May 06

UOB divestment sees Meritus Mandarin hotel, OUB Centre and Change Alley Aerial Plaza and Tower going to Indonesian group and Malaysian partner

By Azrin Asmani

LAST month, it bought venerable retailer Robinson & Co. Now, Indonesia's Lippo Group has snapped up the Meritus Mandarin hotel, OUB Centre and Change Alley Aerial Plaza and Tower in a $1 billion deal - adding to its burgeoning collection of Singapore assets.

The sellers were the Republic's second largest bank, United Overseas Bank (UOB), and three of its associate companies - all controlled by veteran banker Wee Cho Yaw.

These companies had controlled the properties via a collective 55 per cent stake in Overseas Union Enterprise (OUE), a listed hotel and resorts group. In an announcement yesterday, UOB said the stake had been sold to the Lippo Group.

Lippo is controlled by the Riady family, known for its majority stake in Indonesia's largest retailer Matahari and a string of property developments in Asia.

It is entering into this deal with an equally prominent joint-venture partner:

Malaysian tycoon Anandan Krishnan is the second richest man across the Causeway, with a net worth of US$4.6 billion (S$7.2 billion), according to Forbes Asia.

The two will now have to mount a mandatory general offer for OUE shares that they do not already own, after they breached the 30 per cent limit following yesterday's purchase.

The general offer is advised by BNP Paribas Peregrine.

The deal comes at a perfect time for Mr Wee, who needs to sell UOB's non-core assets by July 17 to comply with local banking regulations.

Local banks are not allowed to hold more than 10 per cent of businesses that are non-financial in nature, a requirement that was spelt out by the Monetary Authority of Singapore (MAS) in 2001.

Prior to the divestment, UOB held 32.58 per cent in OUE, which is considered a non-core asset for UOB. UOB and another associate company, Overseas Union Facilities, also directly own a 16.67 per cent stake in OUB Centre, another non-core asset. This is also being sold to the Lippo-led joint venture via a separate transaction.

UOB said in a statement yesterday that the OUE stake sale translates to a price of $10.20 for every OUE share, which is a 7.94 per cent premium over OUE's last traded share price of $9.45 on Thursday.

The offer price was arrived on a 'willing-buyer and willing-seller' basis, it added.

OUE came under UOB's control after the latter bought Overseas Union Bank (OUB) in 2001. It owns several properties and hotels in China and Singapore.

Divesting it made UOB the second local bank to have had dealings with Lippo in the past six weeks.

Last month, Lippo paid $203 million for OCBC Bank's 29.9 per cent stake in 148-year-old Robinson, making it the biggest shareholder of the retailer, which operates brands like John Little and Marks & Spencer.

Both banks made a tidy profit from the sales, with UOB recording the bigger gain of the two. UOB said it will realise a consolidated gain of $353.5 million from the OUE divestment in the second quarter of its financial year ending Dec 31, but it added: 'The UOB board of directors has not decided on the intended use of the proceeds.'

Shareholders like Mr Denis Distant are looking forward to a bigger cash dividend payout.

'We were expecting a dividend in specie of OUE shares before. But now since OUE has been sold off to Lippo, we expect a generous special dividend from UOB,' he said.

Lippo deputy chairman Stephen Riady told The Business Times on Friday that the group has plans to enhance the value of the OUE assets it now controls.

It is planning to increase the retail space at Meritus Mandarin.

And some have noted that Change Alley Plaza and Tower, together with Overseas Union House, can be redeveloped into a prime waterfront commercial development.

Govt seen sticking to reserve list for land sales

2 Jun 06

But consultants say there should be a wider spectrum of residential sites

(SINGAPORE) Property consultants and analysts expect the government to stick to the reserve list as the mainstay of its land sales programme for private residential, commercial and hotel sites for the second half of this year.

Under the reserve list system, sites are released only upon application by developers.

'They're likely to offer sites through the confirmed list only where they are needed for immediate development for some strategic purpose - as in the case of Marina Bay in the past,' says Colliers International associate director (research and consultancy) Tay Huey Ying.

'But at this point in time, the development of the area is progressing well with the award of the Business and Financial Centre (BFC) site and just last week, the Integrated Resort (IR) site. There doesn't seem to be a pressing need for development sites to be placed in the confirmed list for now,' she says.

Sites in the confirmed list are released for tender according to a pre-stated schedule regardless of demand from bidders. Under the reserve list, which was introduced in June 2001, the Ministry of National Development (MND) will launch a site for tender only if there is a successful application from a developer, accompanied by an undertaking to bid at a minimum price acceptable to the state.

The MND will end a 4 1/2-year hiatus on sales of confirmed list sites when it launches later this month the former Clifford Pier and next-door Customs Harbour Branch buildings. These are slated for adaptive use as a retail and lifestyle waterfront development and their inclusion in the confirmed list is to help complete the development of attractions around Marina Bay.

Looking ahead to the second-half government land sales programme, Knight Frank managing director Tan Tiong Cheng says: 'The reserve list has worked well. It's a market-driven approach where the government only sells sites if there's demand from bidders. So why force the market to behave in a certain fashion by having a confirmed list?'

Similarly, DTZ Debenham Tie Leung director Tang Wei Leng says: 'If at all the government offers anything on the confirmed list, it will be something that makes a meaningful difference to the Singapore landscape rather than something run of the mill.'

On the reserve list, however, property consultants had some suggestions on the type of sites that the government could offer.

For the residential sector, Mr Tan suggests the government should offer a broader spectrum of sites apart from the suburban sites for upgrader, mass-market housing where demand has been a bit sluggish. For a change, the government could offer some nice parcels in the prime districts and waterfront sites like in the Marina Bay location, given the strong demand for such homes.

Some market watchers note that rising land values for collective sales in the prime districts reflects strong demand from developers in this segment, so it could make sense for the government also to offer some 99-year sites in these locations. However, some property consultants, like CB Richard Ellis executive director (research and valuation) Li Hiaw Ho, takes a different view. 'There's enough supply from collective sales,' he says.

As for the commercial sites, Ms Tay of Colliers suggests the government could offer office plots within the reserve list in regional locations like Woodlands, Jurong and Paya Lebar to cater to demand for backroom offices. 'This will allow companies to decentralise their operations in the face of soaring office rents in the CBD,' she says.

While there will be tightening supply of prime offices in the CBD until BFC's first phase is completed around early 2010, it would not help for the MND to offer more office plots in this location for now. This is because any new projects can only be completed around the same time as the BFC, and bunch up supply in the area, Ms Tay says.

Most consultants also think there is scope for offering more hotel sites on the reserve list given the ambitious tourism targets. These could be in the Orchard and Marina locations, says Mr Li of CBRE.

He says: 'Even with the IR having 2,500 hotel rooms, there will still be a shortage. Once the IR is completed it will be a major attraction and the area could do with more hotels.'

By KALPANA RASHIWALA

05 June 2006

Allco Singapore buys office property at Raffles Place for S$72m

Property trust manager Allco Singapore is buying an office property in Raffles Place for S$72 million.

It is buying 55 Market Street in a deal that works out to S$969 per square foot.

The deal is only expected to be completed towards year-end, upon completion of its refurbishment.

The revamped property will feature river views and natural light, as well as new hardware and enhanced retail and office space.

The company expects office rentals to rise steadily through to 2007 and it says this move positions Allco REIT well to ride that growth.

Allco Singapore runs the Allco Commercial Real Estate Investment Trust, or Allco REIT.

Allco says the acquisition will not affect the company's 2006 earnings, but should do from 2007.

Allco Singpore says it is confident of achieving at least 20 percent pre-commitment.

And it expects the property to be fully leased within a year from acquisition.

The company will have a gearing of nearly 40 per cent with the purchase, which will be financed using a mix of debt and cash reserves. - CNA/ch

Copyright © 2006 MCN International Pte Ltd

55 Market St is Sinsov Building. So, it's not being demolished but refurbished.

Asia General looking to sell two properties

8 Jun 06

Value of Hotel Asia, White House Park estimated at $150m

(SINGAPORE) Singapore insurer Asia General Holdings, in which a Japanese group bought a stake earlier this year, is said to be looking for buyers for two of its properties - White House Park Apartments along Stevens Road and Hotel Asia on Scotts Road, said to be together worth nearly $150 million.

http://business-times.asia1.com.sg/mnt/media/image/launched/2006-06-08/BT_4184790_07_06_2006.jpg

Hotel Asia is said to have an indicative valuation of about $125 million, including development charges (DC) for redeveloping the 35,880 sq ft freehold site into a residential project.

This works out to about $830 psf of potential gross floor area including DC, which is estimated at around $23 million.

Sources say the Urban Redevelopment Authority (URA) has approved redeveloping the site into a 30-storey residential project with a 4.2 plot ratio (ratio of potential gross floor area to land area). This would allow a condominium to be built on the site with about 75 units averaging 2,000 sq ft, suggest property market watchers.

Under Master Plan 2003, the site is zoned for hotel use with a 4.2 plot ratio.

White House Park Apartments, a low-rise development with dual frontage to Stevens Road and White House Road, has a freehold land area of nearly 43,000 sq ft. The site now has 14 apartments and five townhouses with a total strata area of around 33,800 sq ft.

Property market watchers reckon the best deal for potential investors would probably be to buy the property and spruce it up.

Based on this scheme, analysts estimate the development could fetch about $600 psf of strata area, or slightly over $20 million.

For investors looking to redevelop the site, the only option would be to build Good Class Bungalows (GCBs) as the site is zoned for that use.

The land area is big enough for just two GCBs. Assuming the site fetches about $400 psf, working out to $17.2 million, the land cost per bungalow would be around $8.5 million, resulting in a breakeven cost of around $11.5 million per bungalow, a property consultant estimated.

'The group is selling some of its non-core property assets, which makes sense, given that the property market has gone up a fair bit,' said a source close to the group.

Market watchers also expect the insurance group to be open to selling its other properties like Asia Insurance Building at Finalyson Green and Asia Chambers, at the corner of Cecil and McCallum streets.

Last year, URA approved the group's proposal to redevelop Asia Chambers into apartments, with commercial use on the ground floor.

The group also owns Cree Court, a four-storey freehold apartment block with a land area of 65,416 sq ft in the GCB area of Dalvey Road. 'I think they'll probably stagger the sale of their properties,' a property consultant suggested.

In April, Japan's Tokio Marine & Nichido Fire Insurance agreed to buy 14.74 per cent of Asia General Holdings and entered into an option agreement to buy a further 39 per cent.

One of Singapore's largest private companies, Asia General Holdings (AGH) is the holding company of The Asia Life Assurance Society, The Asia Insurance Company, Asia Life (M) Bhd and Asia Insurance (Malaysia) Bhd. The AGH group has established networks, distribution and coverage of the Singapore and Malaysian life and general insurance markets.

By KALPANA RASHIWALA

Lippo picks S'pore in its regional drive

8 Jun 06

With major acquisitions in Singapore, Indonesia's biggest property and retail group is now ready to invest anywhere in Asia and beyond

By SHOEB KAGDA
IN JAKARTA

INDONESIA's aggressive Lippo Group will use Singapore and Shanghai as its headquarters instead of Hong Kong as it scours the region for more property and retail deals, according to its chief executive officer.

Lippo CEO James Riady told BT in a recent interview that the group, which has entrenched itself as the largest property and retail group in Indonesia, can be a major player in the region in the next few years.

'We have the size, comparative advantage and experience in both these two sectors to compete and grow,' he said. 'We are now comfortable investing anywhere in Asia and beyond,' he added.

The Indonesian group has moved away from the financial sector following the near collapse of its crown jewel at the height of the regional financial crisis in 1998. The family subsequently sold off Lippo Bank to Malaysian government investment arm Khazanah Nasional after a recapitalisation exercise.

The transformation of Lippo, founded by patriarch Mochtar Riady in the mid 1980s, into a regional property and retail heavyweight is already evident.

Lippo has pumped nearly S$2 billion into Singapore in less than two years, snapping up prime residential and commercial real estate, and the controlling stake in retail giant Robinsons.

Lippo recently partnered Malaysian tycoon Ananda Krishnan to buy a 55 per cent stake in Singapore-listed hotel and property company Overseas Union Enterprise from United Overseas Bank for about $1.8 billion after the general offer is completed.

It does not intend to stop just yet.

In China, under Lippo China Resources, the group is looking to acquire more property assets and possibly a retail outfit in Hongkong, Macau and southern China.

Its current investments in greater China are worth about US$1.7 billion.

To fund its expansion drive, the group is now building a war chest to possibly acquire more assets in Singapore as well as China.

Sources told BT the group will launch two real estate investment trusts (Reits) by the end of the year with combined assets worth well over US$1 billion to fund its expansion drive.

The Reits, one for its retail assets in Indonesia, and the other possibly for its China assets, are most likely to be listed in Indonesia.

Apart from its own cash reserves, estimated to be around US$1.4 billion, Lippo is also working with several international investment banks, including UBS, Merrill Lynch and BNP Paribas to raise funds from the capital markets.

The group is also rumoured to be working on a Reit to be launched in Singapore sometime this year which could incorporate the OUE assets plus its Indonesian healthcare and hospitality assets.

It expanded its retail operations outside Indonesia for the first time last month when it paid OCBC $203 million for a 29.9 per cent stake in up-market retailer Robinson.

'Lippo sees Singapore as a major investment destination as it grows its business outside Indonesia primarily because it has confidence in the government of PM Lee Hsien Loong and because of the potential growth in its property market,' noted a source close to the Riady family.

He noted that the funds raised will also be used to fuel the group's expansion in Indonesia where it plans to grow its retail business through Jakarta-listed Matahari by investing US$100 million a year over five years.

On the property side, Lippo Karawaci, the group's listed property arm, is continuing to build new townships in secondary cities across Java.

Matahari currently has an annual turnover of US$1.2 billion and is growing by 25 per cent a year.

Analysts predict that the company will grow to between US$8 billion and US$10 billion in 10 years' time.

Lippo Karawaci, which has a market capitalisation of US$600 million, is estimated to own and manage property assets of nearly US$1.3 billion within Indonesia and about US$1 billion outside the country.

The Lippo group is one of Indonesia's largest conglomerates but unlike other large conglomerates such as the Salim Group and Sinar Mas, it emerged relatively unscathed from the Asian financial crisis.

It, therefore, invested heavily in Indonesia post-crisis while other conglomerates consolidated their operations.

The group has also formed a partnership with Malaysia's Mr Krishnan to launch satellite television in Indonesia under Astro as well as enter the country's telecommunications sector with Maxis.

The Riady family also operate the country's largest private university, Universitas Pelita Harapan (UPH) and Sekolah Pelita Harapan (SPH), a private primary and secondary school. They also built and run Sekolah Lentera Harapan in villages across the country to provide education for the needy.

Btw... is it just me or does the new Alex Hosp look like Biopolis? :?

June 9, 2006
Madam Wong's bar premises put up for auction
This is despite the possibility of the two shophouses being part of en bloc sale

By Property Correspondent, Joyce Teo

TWO adjoining shophouse units that house what was once one of the hippest joints in town, Madam Wong's Bar, will be put up for auction next Thursday.

The properties - at 28 and 29 Mohamed Sultan Road - are valued at $11.3 million.

They are being put up for sale by owner Cliffview Holdings, which counts Madam Wong's owner Peter Wong as one of its directors.

But that does not spell the end of Madam Wong's, said Mr Wong, who once owned a string of bars and clubs at Mohamed Sultan Road and at Central Mall.

'The name has been built up so we're not going to let it go,'' he said. 'If the new owners want us, we will change the concept. If not, we will go somewhere else.''

Madam Wong's Bar was opened in late 1998 when Mohamed Sultan Road was the hippest nightlife strip to be seen in.

After seven years, it is time for a major change as the Mohamed Sultan road scene has also changed, said Mr Wong. He is now left with just Madam Wong's.

New entrants to the nightlife scene, particularly Ministry of Sound which opened late last year at Clarke Quay, have also proved to be tough competition.

And there is still the soon-to-be launched mega nightspot St James Powerhouse.

At an indicative price of $11.3 million, the shophouses will offer a rental yield of about 6 per cent.

Consisting of two storeys and an attic, the shophouses have a combined site area of 9,679 sq ft and a gross floor area of 21,382 sq ft. They come with a 999-year lease starting from 1841 and are within the River Valley Conservation Area.

Mr Wong said they want to sell the shophouses now as property market conditions are favourable.

That is despite the future possibility of selling them en bloc together with five other Mohamed Sultan Road shophouses.

The idea has been proposed because the site is conducive for a residential development of up to 10 storeys. But the market could have changed by the time such a sale is arranged, said Mr Wong.

As the shophouses are zoned for commercial use on the first floor and residential use on the second, at a maximum gross plot ratio of 3.8, the new owner could opt for redevelopment.

An eight- to nine-storey extension could be built at the back of the shophouses, as long as the shophouse facades are kept, said auctioneer Shaun Poh, a director at property consultancy DTZ Debenham Tie Leung, which is conducting the auction.

The new owners can choose to run a boarding house or service apartment business. They can also opt to lease the properties back to Madam Wong's, he said.

Mr Wong said he is consolidating his business and will find a way to bring back Madam Wong's. 'We're going back to the basics, just to have one outlet.''

He said he wants to do something 'classy'' next and would want to remain at Mohamed Sultan Road, though that would depend on the rent.

joyceteo@sph.com.sg

Copyright © 2006 Singapore Press Holdings. All rights reserved.

URA gets S$25m application to put Clemenceau hotel site up for public tender

12 Jun 06

SINGAPORE: The URA will be putting up the hotel site at Clemenceau Avenue and Unity Street for public tender in two weeks' time.

This after an unnamed developer committed to bid not less than S$25m for the plot.

This is the first hotel site from the Reserve List to be placed for tender since the sale of the hotel site at the junction of Bras Basah Road and North Bridge Road in January last year.

The 99 year leasehold land parcel located along Singapore River sits on about 4,000 square metres and has a gross plot ratio of 2.8.

It can generate a maximum permissible gross floor area of about 11,000 square metres.

More hotels coming up......:D

15 June 2006
15 new sites for second half GLS programme

Singapore has signaled it'll make more land available for hotels in the second half of this year to meet an expected increase in visitor arrivals over the next few years.

The National Development Ministry says the government will put up for tender a prime 3.5-hectare site for development into a commercial complex with office space plus an estimated 655 high-end hotel rooms.

The site's at the junction of Beach Road and Middle Road.

M-N-D said the government would like to see it developed early as the site occupies a key node between the Suntec Convention Centre, Raffles City and the Bugis Arts and Entertainment District.

Director of Research Consultancy at Knight Frank, Nicholas Mak agrees it's a good idea for the site to be developed.

"The government probably do not want that site to be left there and become an eyesore. Currently it's being used for one of the LTA offices for the development of the Circle Line. When the Circle Line is completed, there is going to be a station near that site. So it would be quite a strategic area. Furthermore, it's just across the line from one of our very key lamdmarks - Raffles Hotel."

In addition, the government will add six hotel sites to its reserve list in the second half, raising the number of available hotel sites on the list to eight.

Besides the six hotel sites, the government will add to its reserve list another 8 sites for residential and commercial developments.

Knight Frank's Mr Mak says he's a little taken aback, by the large number of sites sent to the reserve list.

"In the first half of 2006, the government sold four development sites from the reserve list and they're going to launch one on the confirmed list. So in all they're expected to sell five sites in the first half. The program for the second half of the year -- they're releasing about 15 sites. That's about three times more sites than what they sold in the first half. So the surprise is the sheer number of sites being released."

Copyright © 2006 MediaCorp Radio New Media Development

Hotel Asia draws over 20 keen buyers

16 Jun 06

HOTEL Asia in Scotts Road has unexpectedly emerged as one of the most sought-after properties this year, attracting more than 20 potential buyers in an expressions of interest exercise that closed on Tuesday.

Indonesia's Lippo Group is believed to be among the interested parties that submitted a quote for the 35,880 sq ft freehold site, which is said to have an estimated value of $125 million, including a development charge of $23 million.

Sources told The Straits Times that Lippo is keen on turning the three-star hotel into a luxury residential project that could rival CapitaLand's nearby 73-unit Scotts HighPark.

CapitaLand has said that its project, which will be ready for previews soon, will boast a 27-storey block consisting exclusively of spacious apartments of more than 3,400 sq ft each.

The Urban Redevelopment Authority is believed to have given permission to redevelop the seven-storey Hotel Asia into a 30-storey condominium with a plot ratio of 4.2. This will yield a potential gross floor area of 150,696 sq ft, or about 60 units at 2,500 sq ft each.

Taking the indicative price of $125 million for the site, this works out to about $830 per sq ft of gross floor area.

'We've only received indicative quotes at this stage, but I think they are very good rates. People have put in quite high quotes,' said a source from Asia General Holdings, which owns Hotel Asia.

The hotel, which is located next to Sheraton Towers, is one of two properties that Asia General, a Singapore insurer, is reportedly seeking buyers for.

The other is White House Park Apartments in Stevens Road, a freehold estate with 14 apartments and five townhouses, that sits on a 43,000 sq ft plot.

By Fiona Chan

20 JUNE 2006

URA RESERVE SITE AT NEW BRIDGE ROAD / NORTH CANAL ROAD

FOR COMMERCIAL DEVELOPMENT IS NOW OPEN FOR APPLICATION



The Urban Redevelopment Authority (URA) today released the detailed sales conditions for a reserve site at New Bridge Road / North Canal Road for commercial development. Developers interested in purchasing the site can now apply to URA for it to be put up for tender.


The site at New Bridge Road / North Canal Road is one of the sites on the Reserve List of the Government Land Sales Programme for the first half of 2006 that was announced by the Ministry of National Development on 29 November 2005.


Land Parcel at New Bridge Road / North Canal Road


The land parcel, which has a site area of about 0.12 ha and a gross plot ratio of 4.2, is zoned for a commercial development. The site can generate a maximum permissible gross floor area of about 5,390 sqm. Details of the land parcel and location plan are given in Annex A-1 & Annex A-2.


The land parcel, which occupies a prominent location with excellent frontage along New Bridge Road, is suitable for a small scale office development. It lies within the Central Business District and is conveniently accessible to the commercial districts at Shenton Way and Marina Bay. It is also located close to Clarke Quay, Boat Quay and the Singapore River, which have a good mix of commercial, residential and entertainment uses. The land parcel enjoys good accessibility via the Central Expressway (CTE). The Clarke Quay MRT station is also conveniently located near the site.


Reserve List System


Under the government’s Reserve List system, a site on the Reserve List would only be put up for tender if the developer’s indicated minimum bid price in his application is acceptable to the government.


Details of the land parcel and other sites that are currently available for application on the Reserve List can be found on URA’s website: http://www.ura.gov.sg/sales/sales_main.html.

--------------------------------------------------------------------------------

ANNEX A-1

Details of Land Parcel at New Bridge Road / North Canal Road

http://i65.photobucket.com/albums/h204/hyapic01/Snap347.jpg

Location
Site Area
(sqm)
Proposed Development
Maximum Gross Floor Area (sqm)

[Approx Gross Plot Ratio]
Maximum Building Height
Lease Period

New Bridge Road / North Canal Road
1,283.3 *
Commercial
5,390

[4.2]
6 storeys
99 years


* Subject to cadastral survey

Haha, when I read the first few lines I thought it was the big patch of grass on another side of Hong Lim Park ^ ^ That's not so exciting after all lol :-)

That plot...there used to be a famous Teochew restaurant there years back...I guess whats makes that plot attractive is its proximity to Clarke Quay MRT

June 29, 2006
URA launches Collyer Quay waterfront tender

The government has launched the tender for the Collyer Quay waterfront site.

The Urban Redevelopment Authority said that the site will be developed into a key lifestyle hub in the heart of the city.

It will have a dynamic mix of restaurants, shops, a hotel and exciting entertainment facilities.

It said the sale of the site is part of the government’s overall vision of creating a 24/7 ‘livework- play’ environment at Marina Bay that integrates residential, business and entertainment facilities.

The future development at Collyer Quay will be part of the loop of attractions around Marina Bay, linked by a continuous waterfront promenade.

The successful tenderer is required to conserve and restore Clifford Pier and the former Customs Harbour Branch Building.

Copyright © 2006 MediaCorp Radio New Media Development

Has a very small plot of land, as opposed to those conserved buildings.

Is the ugly round thingy at Change Alley Aerial Plaza going be demolished?

Clifford and Customs are separated by OUH... :?

13 July 2006

More CBD office buildings may be converted to serviced residences developments
By Matthias Chan, Channel NewsAsia

SINGAPORE: Some three to five CBD office buildings could be redeveloped into serviced residences, say some consultants.

Because there are hardly any such properties in the financial area, they believe that average room rates could be some 20 percent higher than other prime serviced apartments.

Earlier this month, serviced residences operator Ascott bought Asia Insurance Building along Shenton Way with the view of redeveloping it into serviced residences.

Some consultants believe this could kick-start a new trend for old offices in the vicinity.

"At the moment, there are quite a handful of office buildings that could potentially be converted to serviced apartments. But we must also bear in mind that there are a few office buildings which were earlier earmarked to be redeveloped into residential developments. So far that has not taken place. One of the reasons is because the office property market has recovered so well and rentals have gone up so strongly that owners are basically putting some of these plans on the back-burner," said Nicholas Mak, Director of Research, Knight Frank.

Consultants say these serviced apartments could fetch a marked premium in room rates.

As more business travellers gather in the CBD after the opening of One Raffles Quay and the Business and Financial Centre, some consultants believe that these services residences could charge as much as 20 percent more than other prime service apartments.

Because these properties serve predominantly business travellers, another way to improve yield is to configure these service apartments into smaller rooms.

However, these expected conversions are not likely to have an impact on the office sector.

"In the short term, we will see a tightening in the supply of office space as some of these office buildings are redeveloped into other uses. But in a couple of years time, we are going to see a massive amount of office space coming on-stream with the completion of the BFC so in the medium and long term, this current conversion is going to be negligible in the big picture," said Mr Mak.

Another nearby office project, One Raffles Quay is expected to be completed by the end of this year. - CNA /dt

Copyright © 2006 MCN International Pte Ltd

Wow...another site in CBD for redevelopment.....:eek:

Business Times - 27 Jul 2006

SingTel set to launch 71 Robinson Rd tender

By KALPANA RASHIWALA

SINGAPORE Telecom is getting ready to launch a tender for 71 Robinson Road, which now houses Robinson Road Post Office and was formerly known as Crosby House, sources say.

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And although SingTel reportedly secured provisional permission last year to redevelop the property into a slightly over 50 storey project comprising more than 300 apartments, six levels of car parks and commercial use on street level, market watchers now think potential buyers could consider redeveloping the site into a full commercial project instead.

The latter would enable a developer to ride on rising office rents amid tightening supply.

Analysts suggest the total land cost for the site could be about $110 million, reflecting a unit land price of about $400 psf of potential gross floor area.

These figures include the purchase cost payable to SingTel plus payments to the state for intensifying the use of the site and topping up the lease from the remaining 45 years to the original 99 years.

The site is now zoned for commercial use with an 11.2 plot ratio under Master Plan 2003.

URA's provisional permission for a residential scheme with commercial use on ground floor was based on the same plot ratio - but is subject to the site being rezoned from commercial use to residential with commercial use on the first storey.

Based on an 11.2 plot ratio, a development can be built up to a gross floor area of 274,746 sq ft - reflecting a significant enhancement from the existing 99,383 sq ft.

BT understands that SingTel has appointed a property consultant to handle the sale of the leasehold property.

Sources tip the appointee to be Credo Real Estate, which handled the sale of SingTel's Old Holland Road and West Coast road sites. Credo declined to comment yesterday.

71 Robinson Road has a land area of 24,531 sq ft. SingTel has been divesting non-core property to redeploy resources to its core telco business.

In February, SingTel sold the freehold former telephone exchange at 859 Old Holland Road for $30 million or $513 psf of net land area to a company whose ultimate shareholders include Indonesia's Tjugito family, linked to the Eagle Indo Group.

The new owner plans a cluster housing project.

SingTel has also sold a leasehold site at West Coast Road to Frasers Centrepoint at a price that reflects an all-in land cost of about $220 psf per plot ratio inclusive of payments to state.

Another property that SingTel divested this year is a prime leasehold site at Hillcrest Road, sold to MCL Land in May for $102.5 million. MCL plans a cluster housing development.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.

Redevelopment may tighten CBD office space by 1.5m sq ft

15 Sep 06

This may fuel further rises in occupancy, rents over 2-3 years

(SINGAPORE) UIC Building may be the latest ageing office block in the Central Business District (CBD) that could be headed for redevelopment.

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Together with a string of other redevelopment candidates - including 1 Shenton Way, Natwest Centre, 71 Robinson Road (the former Crosby House), Asia Chambers, Straits Trading Building and Ocean Building - the total net lettable office stock that could be taken out of the market over the next few years could reach around 1.5 million square feet.

That's estimated to be about 7 to 8 per cent of the current available stock in the Raffles Place, Shenton Way and Tanjong Pagar stretch.

This will exacerbate the tightening office supply in the CBD while these buildings undergo redevelopment, setting the base for further increases in occupancy rates and rents over the next two to three years, argue some office investors.

New office supply this year is estimated at 1.6 million sq ft, mostly from the completion of One Raffles Quay. However, the figure will fall to just 80,000 sq ft next year, then go to 544,000 sq ft in 2008 and 155,600 sq ft in 2009, before increasing back to 1.6 million sq ft in 2010 with the completion of Phase One of the Business & Financial Centre, according to Colliers International.

Occupancy rate in the Raffles Place area has risen from 87.1 per cent to 94.4 per cent over the past two years, according to Colliers.

In the Shenton Way/Tanjong Pagar location, the occupancy rate has increased from 86.6 per cent to 92.5 per cent.

Over the same period, the average gross monthly office rental in Raffles Place has increased 67 per cent to $6.92 per sq ft (psf) currently.

For the Shenton Way/Tanjong Pagar area, the increase has been of the order of 55 per cent, to $5.63 psf.

While some office industry players argue that office occupancy rates and rents will head further north because of contraction of supply as the likes of One Shenton Way, Straits Trading Building, Ocean Building and possibly UIC Building are pulled down for redevelopment, Colliers International director (commercial) Calvin Yeo says the impact may be mitigated by the fact that the redevelopment may be phased over a few years. 'So not all these buildings will be pulled down at the same time. And at least some of them, like Straits Trading Building and most likely Ocean Building will be redeveloped into new offices, so they will contribute to future office supply after a few years,' Mr Yeo says.

Mainboard-listed Straits Trading is expected to tear down its namesake office building at Battery Road next month and build a new 25-storey office tower on the site.

Keppel Land is also reportedly planning to tear down the 32-year-old Ocean Building, possibly as early as next year, for redevelopment into a new office block.

United Industrial Corporation, which has been buying up strata units at its UIC Building at Shenton Way, now owns 78 per cent of share values in the leasehold property and is said to be mulling over a collective sale.

Some prospective tenants have been told they can lease space in UIC Building only until June 2008 with no options for renewal.

In order to carry out an en bloc sale, UIC will have to join forces with minority owners of the building controlling additional share values of at least 2 per cent in order to secure the minimum 80 per cent needed for a collective sale.

Owners of the other units are said to include Air India, Airtrust (S) Pte Ltd, Shankar's Emporium group, Comcraft Asia Pacific and property group Lee Tat.

Industry observers say that Asia Chambers, with about 64,000 sq ft of net lettable area, is also issuing new leases for only a year. Its owners have secured approval from the Urban Redevelopment Authority to redevelop the property into apartments with commercial use at street level - similar to approvals given for the respective redevelopment schemes for 1 Shenton Way, NatWest Centre and 71 Robinson Road.

By KALPANA RASHIWALA