KEPPEL Land is taking a 42 per cent stake in a waterfront township project in Ho Chi Minh City that will include about 4,700 homes with a potential gross floor area of about 10.76 million square feet and which will take about eight to 10 years to develop.

The project’s first phase, which is expected to be launched in 2011, has an estimated on-completion value of US$80-120 million. This will be KepLand’s third township development in the Vietnamese city.

KepLand said yesterday that it had formed a joint venture with Tien Phuoc Co Ltd and Tran Thai Co Ltd to develop the waterfront residential township on a prime 30 hectare site at South Rach Chiec in the city’s popular District 2. The plot boasts over 2km of river frontage.

‘This is a pilot programme which will be developed in phases,’ KepLand said.

The joint venture will build and transfer to the city, a social housing project of about 1,800 apartments on another site in District 2, about 10 minutes’ drive from the waterfront site. In return, the city will assign to the joint venture the 30 hectare cleared site, which is zoned for waterfront development, KepLand said in a regulatory filing with the Singapore Exchange yesterday.

In addition to the 4,700 homes (which will be high-rise condos targeting the upper-middle income market), the township will also include complementary commercial components such as retail outlets and shophouses.

The site is 8km from the central business district. ‘Travelling time to the CBD will be cut to less than 15 minutes upon completion of the Thu Thiem Tunnel, East-West Highway and Ho Chi Minh City-Long Thanh Expressway, all currently under construction, over the next two years,’ KepLand said.

KepLand’s 42 per cent stake in the project amounts to US$16 million (about S$22.3 million) of the joint venture’s total registered capital of US$38 million. Tien Phuoc and Tran Thai will hold 38 and 20 per cent respectively.

Keppel Land International executive director and CEO Ang Wee Gee said: ‘Keppel Land was able to leverage its reputation in Vietnam and its strong relationships with local authorities and strategic partners to secure another large site to meet demand for its homes and build up its quality portfolio.

‘Our new township will allow us to tap our experience to masterplan and develop a desirable live-work-play environment and lifestyle for our residents.’

KepLand also gave an update of its waterfront villa development Riviera Cove in Ho Chi Minh City, saying that about 80 per cent of 60 launched villas were taken up within a month of their release in mid-November 2009, at an average selling price of about US$680,000 per unit. The remaining units in the 96-unit project will be progressively launched this quarter.

KepLand’s two earlier township projects in Ho Chi Minh City are still under construction – Saigon Sports City, an integrated residential, commercial and recreational sporting hub on a 64-ha site in District 2, and a 367-ha waterfront residential township in Dong Nai Province.

The latest waterfront township development marks KepLand’s second collaboration with Tien Phuoc, following the 1,393-unit The Estella condo, also in District 2.

Tien Phuoc’s other projects in the region include South Saigon Residential Complex, Le Meridien Saigon Tower (a hotel and office mixed-use development) and Cam Ranh Bay Resort.

Source : Business Times – 8 Jan 2010

FRASERS Centrepoint Trust (FCT) said yesterday that it will buy two suburban malls for $290.2 million.

The retail real estate investment trust (Reit) also said it plans to issue up to 152 million rights units to help finance the mall acquisitions. The remaining amount will be borrowed.

The structure and timing of the issue of new units has not been determined, FCT added.

The Reit will acquire Northpoint 2 at Yishun for $164.55 million and YewTee Point in Choa Chu Kang for $125.65 million from its sponsor Frasers Centrepoint, the property arm of Fraser and Neave.

The transactions are subject to approval by FCT unitholders. The two acquisitions will grow the trust’s portfolio 25 per cent to $1.5 billion.

‘Northpoint 2 and YewTee Point are excellent suburban retail malls strategically located in the town centres of established high-density housing estates,’ said Christopher Tang, chief executive of FCT’s manager.

‘Both malls are in the immediate vicinity of MRT stations, which deliver a high level of shopper traffic. With captive shopper catchments, occupancy rates at or close to 100 per cent and diverse bases of quality tenants, both malls would be invaluable additions to FCT’s portfolio of high-quality suburban malls.’

The trust now has three malls – Causeway Point, Northpoint and Anchorpoint. Northpoint 2, a new extension to Northpoint, has a net lettable area of 85,530 sq ft. YewTee Point has 72,382 sq ft.

FCT said the two additions will enhance its asset, income and tenant diversification, the trust said. The malls will add more than 70 new tenants. And the larger asset and unit base – after the issue of the rights units – is expected to enhance the trust’s overall capital management flexibility.

FCT said that the price of the rights units will be determined closer to the launch date.

FCT units gained four cents or 2.8 per cent to close at $1.45 yesterday.

Source : Business Times – 8 Jan 2010

New venues pique interest and could snatch meetings, conventions and exhibitions from incumbents

They just emerged from a challenging year, but meetings and exhibitions executives now have to prepare themselves for a tougher campaign ahead.

Once the integrated resorts (IRs) are launched, the amount of exhibition space in Singapore is going to jump by a whopping 180,000 square metres – not a number to sniff at since current big players have only about 135,000 sq m between them.

And if you throw the glitzy lights of Broadway musicals and the whirring sound of the jackpot machines into the mix, it’s no wonder that current meetings, incentives, conventions and exhibitions (MICE) players are bending over backwards to keep their clients happy.

And the incumbents certainly have their work cut out for them.

Already, Marina Bay Sands (MBS) and Resorts World at Sentosa (RWS) have snagged over 60 events running until 2012.

It doesn’t help that the new kids on the block also have the novelty factor in their favour.

According to Nancy Tan, managing director at conference organiser Ace:Daytons Direct, the two IRs piqued interest as far back as two years ago.

There were clients who requested for the IRs as an option when selecting venues, she told BT. ‘People want to try new venues.’

However, she added, that the venue needs to match event requirements, something that could go either way for both incumbents and the new players.

For instance, depending on the scale of the business event, a certain number of hotel rooms may also have to be booked at MBS. This may not be entirely suitable for conferences where delegates pay out of their own pockets for their hotel rooms, she pointed out.

On the other hand, Gaming Asia – which took place at the Expo last year – will be held at MBS from July 15-16. The new location is ‘ideal’ given that the exhibition is casino and gaming-related and that MBS is in the central business district, said Lynn Ee, marcom executive with organiser ComExpo Pte Ltd.

Gaming Asia, which attracted nearly 1,500 visitors last year, is widening its focus this year to include training and education opportunities within the industry, security as well as merchandising, in addition to gaming equipment.

Still, there’s an element of musical chairs going on with the same events making the rounds at different venues.

For instance, MBS’s firmed-up list shows that events such as the Aerospace Supplier eXchange – which took place at the Singapore Expo last year – will move to MBS in 2011 and Sea Asia – which was held at Suntec Singapore International Convention & Exhibition Centre last April – will shift to MBS in 2011.

But if there’s a silver lining for MICE players, it’s that this doesn’t seem to be a zero-sum game because the IRs seem to be opening up the scene by attracting new events to Singapore.

RWS will host World Urban Transit Congress in October as well as Singapore LIVE – in conjunction with Singapore Arts Fest – in June. And at least six events in MBS’s line-up are new, including the Industrial Fabrics Association International Expo Asia 2011 and Dye+Chem Asia International Expo 2010. The 2010 UFI Congress, which will be held at MBS, will also make its way back to Singapore after 15 years.

MBS believes that the IR offers consumers greater choice and will ultimately grow the industry.

‘The integrated design means we can provide convenience and efficiency. This translates to significant cost savings,’ added the MBS spokesman.

‘Singapore already has excellent existing MICE facilities and RWS is working in close partnership with them to create more reasons for repeat visitorship,’ highlighted RWS’s director of MICE, Elena Arabadjieva.

To compete, industry players such as Suntec recognise they have to go ‘beyond the call of duty’ and stay ‘flexible’, so as to keep clients happy.

To drum up strong business for this year, the Expo has increased its sales trips and marketing activities, and has also just appointed a US agent.

Every year, Singapore hosts more than 6,000 business events. According to the Singapore Tourism Board (STB), the business travel and MICE industry brought in nearly $6 billion in tourism receipts in 2008, which is close to 40 per cent of total tourism receipts.

While 2009 figures have yet to be released, the year was a fairly challenging one for the MICE industry.

There was a drop in attendance and, in some cases, budgets were revised by as much as 20-25 per cent, said Ace’s Ms Tan.

‘While all (organisers and exhibitors) went ahead with their scheduled show dates, they were conscious of their budgets,’ said Chandran Nair, deputy general manager of Singex Venues, which manages the Expo.

In 2009, Suntec hosted about 1,400 events – down slightly from 1,575 events in 2008. However, at 6.7 million visitors, it also saw a 5 per cent increase in visitor numbers over 2008.

And with the economy showing signs of recovery, the MICE scene could see a far better year in 2010. Tony Lai, assistant chief executive at STB, felt that the tourism industry was well-placed to seize opportunities.

Source : Business Times – 8 Jan 2010

It is just some two weeks to go before Resorts World Sentosa opens it doors, and retailers at neighbouring shopping mall VivoCity are expecting better business from spillover human traffic.

Some estimate that business may go up about 20 per cent.

About 6,000 visitors take the monorail from VivoCity to Sentosa everyday. Many hang around in the mall even after returning to the mainland.

One tourist said: “We just came over from Sentosa on the monorail. We will grab a bite and buy something back.”

Visitor numbers to Sentosa are expected to go up once the integrated resort opens, and many retailers are upbeat about the prospect of increased spillover traffic.

Michael Tay, store manager, Best Denki, said: “I am very positive, looking at the situation; definitely it will bring us more traffic, probably it will help us to increase about 20 per cent of the business.”

To handle the crowds, VivoCity set up an additional customer service counter last month and doubled its pool of sales and security staff. More information panels have also been added. Outside the mall, transport facilities are also being ramped up.

A new pedestrian boardwalk to Sentosa is being built and transport operator SMRT will announce new public bus services within the next two weeks. It currently runs shuttle services for staff and family of Resorts World Sentosa.

ComfortDelGro, which manages SBS Transit, said it is currently “exploring the possibility” of running direct shuttle services into Sentosa.

Source : Channel NewsAsia – 8 Jan 2010

Beijing will act rationally and any effort to rein in lending probably won’t weigh on economic growth, he says

INVESTOR Mark Mobius says the bubble in China’s property market isn’t about to burst.

‘The Chinese will act rationally and they’re not going to kill the market,’ Mr Mobius, who oversees US$34 billion of developing-nation assets at Templeton Asset Management Ltd, said in an interview in Singapore. ‘There’s still a lot of savings in China. Prices are high but I don’t see a crash.’

Mr Mobius said he plans to increase holdings in Chinese stocks by purchasing shares that benefit from consumer demand, including developers and raw-material suppliers.

Shanghai’s index of property stocks has lost 28 per cent in the year through Jan 7 after reaching a one-year high in July. It rallied 1.1 per cent yesterday, halting four days of losses.

Rising new loans last year caused property prices to climb ‘too quickly,’ while surging commodity costs increased inflationary pressure, Premier Wen Jiabao said on Dec 27. The central bank sold three- month bills at a higher interest rate for the first time in 19 weeks on Thursday after saying that policymakers will seek ‘moderate’ loan growth while managing inflation expectations.

Any efforts to rein in lending probably won’t weigh on economic growth, and productivity will keep a lid on inflation, Mr Mobius said in Thursday’s interview. China’s economy grew 7.7 per cent in the first nine months of 2009, near the government’s 8 per cent target for the year.

‘They are watchful and they are not going to let things get out of control,’ he said. ‘We don’t think they are going to dampen growth. They want growth to continue but they want it at a measured pace and there’s nothing wrong with that.’

The central bank, which has kept its benchmark one-year lending rate at a five-year low of 5.31 per cent after five reductions in the last four months of 2008, allowed a record 9.21 trillion yuan (S$1.88 trillion) of new bank loans in the first 11 months of 2009.

Stock investors remain ‘complacent’ on inflation and tightening risks, BNP Paribas said in a report dated Jan 7. The brokerage said the central bank is likely to implement ‘a series of hikes’ in three- month and one-year bill auction yields to guide market expectations of a monetary policy shift and may raise the bank reserve ratio in the first quarter.

The Shanghai Composite Index, tracking the larger of the nation’s two stock exchanges, climbed 0.1 per cent, reversing an earlier loss of as much as 1.4 per cent. Hong Kong’s Hang Seng China Enterprises Index of mainland shares traded in the city fell 0.3 per cent.

‘We actually have a long-term bullish view on China but in the short term, we’re actually less bullish,’ Joseph Zeng, head of Greenwoods Asset Management Ltd’s Hong Kong office, said in a Bloomberg Television interview yesterday.

‘The market is going to be like a ‘W’ shape. This means more volatility, but it’s still going to move up.’

While China remains Mr Mobius’s top pick among the largest emerging markets, its weighting in his portfolios lags behind Brazil, Russia and India because of gains in other markets, he said.

China’s property prices climbed in November at the fastest pace since July 2008. Residential and commercial real estate prices in 70 major cities rose 5.7 per cent from a year earlier, compared with a 3.9 per cent gain in October. The government imposed a sales tax last month on homes sold within five years of their purchase and took other steps to curb property price increases.

China Vanke Co, the nation’s largest publicly-traded developer, and Guangzhou R&F Properties Co are among the worst performers on the MSCI China Index in the last six months. The measure has climbed 23 per cent during the period, lagging behind a 35 per cent gain in the MSCI Emerging Markets Index.

Property stocks will rebound because the policy changes have already been ‘factored into’ share prices, CLSA Asia-Pacific Markets’ Shanghai-based head of China A-share research Manop Sangiambut said last month.

Andrew Mattock, who manages the US$342 million Henderson Horizon China Fund, also said in December that he will stay ‘fairly aggressive’ on property stocks because the risks of curbing loan growth are priced in.

Source : Business Times – 9 Jan 2010

SINGAPORE-BASED Pacific Star Group yesterday said it has appointed Wong Wing Kien as president of asset management.

Mr Wong, 49, will lead the real estate investment house’s expansion of its asset management business in Asia. This includes enlarging its portfolio of third-party assets, as well as developing asset management and enhancement strategies for the group’s existing properties to enhance both asset values and yields.

Prior to joining Pacific Star, Mr Wong was group chief operating officer of Surbana Corporation, a wholly-owned company of Temasek Holdings.

In total, he has over two decades of experience in construction, project consultancy, property development and real estate investment in the region.

Pacific Star manages over 2.5 million square feet of prime office, residential and retail space across Asia. Its portfolio includes Capital Square and TripleOne Somerset in Singapore, 88 Gloucester in Hong Kong, Pavilion Residences in Kuala Lumpur, Noon Square in Seoul, and Cross Tower in Shanghai.

The group, which has offices in key cities such as Kuala Lumpur, Bangkok, Hong Kong, Beijing, Shanghai, Seoul, Tokyo, Sydney, Doha, Munich and New York, recently made its foray into Vietnam.

It was appointed asset management adviser to Sunrise City Shopping Mall, a mega shopping centre in Ho Chi Minh City, that is expected to be ready by late 2012. The mall is part of a US$500 million mixed-use project developed by Vietnam property firm Novaland.

Pacific Star has also advised and managed multi-billion-dollar real estate transactions since its inception in 2001. It manages a suite of funds, including the 1.2 billion euro (S$2.4 billion) AREIF Fund, the US$600 million Baitak Asian Real Estate Fund, and the US$650 million Asian Real Estate Prime Development Fund.

The group’s latest fund activities include fundraising for its US$500 million Enterprise Fund and US$2 billion Asia Fund Select fund.

Source : Business Times – 9 Jan 2010

RETAILER John Little could soon vacate its large Orchard Road site, raising the possibility that more prime space on the shopping strip will be up for grabs.

John Little is the sole tenant in the seven-storey Orchard OG Building but the three-year lease expires on May 16. The company did not exercise its option to renew the lease, according to landlord OG.

Existing tenants often have priority in renewing a lease if it is within a contract’s pre-agreed terms.

This is usually done about six months before a lease ends but sources party to the agreement said that John Little’s option to renew expired late last year and no offers have come in.

John Little is part of the Robinsons Group, which includes the Robinsons and Marks & Spencer stores.

A Robinsons Group spokesman did not confirm or deny that John Little would vacate the premises.

He added: ‘John Little has a wide presence in Singapore both in the main Orchard Road and Marina shopping belts, as well as the heartland areas, and we continually review the locations of our outlets to ensure we stay relevant to our customers.’

John Little moved to the OG premises in 2007 from the Specialists’ Shopping Centre across the street that has since been redeveloped.

The building, which is opposite the newly opened 313@Somerset, is on freehold land with a gross floor area of 44,315 sq feet. It was last refurbished in 1992.

OG, a family-run firm and one of Singapore’s oldest department stores, said a few companies, some foreign, have expressed interest in leasing the space.

The company also owns other office and retail properties in Albert Street and at People’s Park and Orchard Point.

‘Although rents have dipped during the financial crisis, they have been going upward since about half a year ago, so we are optimistic about getting a good price,’ an OG spokesman said.

He added that the guide price is $10 per sq feet (psf), with the total rent amounting to about $443,150 per month.

This might seem like a steal, with property firm CB Richard Ellis (CBRE) reporting that prime Orchard Road rents averaged $32.40 psf in the fourth quarter of last year.

But Ms Chua Chor Hoon, the South-east Asia head of DTZ Research, said retail rents, even in the Orchard Road district, encompassed a wide range.

Since OG might want a single tenant for the large building, the average psf might be lower as it will take into account both prime and non-prime retail space, she added.

‘The profit margin is also lower for larger-format stores, such as department stores, as compared to stand-alone stores,’ Ms Chua added.

‘It is also harder to get a big tenant, so the landlord might take that into the rental consideration as well.’

Knight Frank group managing director Danny Yeo said the OG Building was ‘challenging’ as it occupied middle ground.

It was an awkward size, he said, too small and with a multi-level format that made sub-divided tenancy difficult, but also too big, making the search for a single tenant a tricky endeavour.

But the free-standing building had an excellent frontage that made it a good location in the Somerset area, which has been given a new lease of life with the opening of Orchard Central and 313@Somerset, he said.

Dr Lynda Wee, the chief executive of retail consultancy firm Bootstrap, said that health-themed concept stores or a retail brand with a strong following might be suitable candidates to take up the space.

*SCAPE – a youth-themed mall – is also due to open in Somerset Road in June. It has filled about 80 per cent of its 40,000 sq feet of retail and food and beverage space since the launch last September.

Retail rents are aso rebounding after four straight quarters of decline.

Rent for first-storey Orchard Road and Scotts Road space inched up 1 per cent in the fourth quarter of last year after falling 7.3 per cent since the third quarter of 2008, said DTZ Research.

CBRE also reported that $801.5 million worth of retail investment transactions were concluded in the fourth quarter of last year, making up 85.5 per cent of the full-year total.

Mr Yeo expects rents in the Somerset area to start climbing 3 per cent to 5 per cent towards the later part of this year.

‘The vibrancy of Somerset will definitely increase and if the economic recovery is sustained, I believe that in two or three years, rents in this area will increase more significantly as well,’ he added.

Source : Straits Times – 9 Jan 2010

A 50-cm gap at the top of the railings along some common corridors has upset some residents of Pinnacle@Duxton.

They claim this ’security flaw’ increases the risk of break-ins. But the Housing Board (HDB) rejects this, adding that the design avoids a ‘cage-like’ environment.

Mr Max Sim, 34, an executive, is among some 20 residents who wrote to the HDB about the matter. He said he noticed the ‘flaw’ after he collected the keys to his apartment about two weeks ago.

He has also flagged the issue on The Straits Times’ online portal Stomp.

At 50 storeys, the seven-block Pinnacle is the country’s tallest public housing project. Each floor has six units.

The common corridor leading to the two middle units has railings that do not reach the ceiling beam.

Residents of these units worry that a burglar could scale the railing and go through the 50-cm gap – about the height of a desktop computer cabinet – to reach a narrow platform.

From there, he can get onto the ledge for the air-conditioner, where the toilet window is.

‘It is not easy but a burglar may try… I’m worried about the safety of my wife and children,’ said engineer John Yeo, owner of a middle unit. He is in his 40s.

Another resident, businessman Terence Hu, 32, agreed.

‘If HDB takes action only after a break-in happens, it’ll be too late,’ he said.

The HDB told The Sunday Times that there is ‘no design flaw’. Its spokesman said safety and security are major considerations in the design of HDB flats.

She said the openings at the common corridors are for cross ventilation.

The Pinnacle has 1.8m-high railings, a height which exceeds the required industry standard of 1.1m, she said.

‘At this 1.8m height, the opening between the railing and the beam is 50cm, which does not allow a person to climb through easily.

‘Anyone who attempts to do so also faces the risk of falling down the airwell,’ said the HDB spokesman.

‘Furthermore, the common corridors adopt an open concept. Once residents start moving in, it is difficult for anyone to climb through the railing undetected.’

She said residents can install grilles with locks and security appliances to make their homes more secure.

For the initial period, HDB will also work with the police to step up their patrols there.

The HDB’s response, however, does not satisfy some residents.

Mr Hu said: ‘There’s nothing much we can do now. We just have to wait and see who’s the unlucky guy.’

Another resident, IT administrator Kelvin Lim, 34, said he would install a ventilation fan to replace his toilet window to secure his home.

The Pinnacle@Duxton was first launched in May 2004. It features a sky garden on its roof, with views of the harbour and much of Singapore.

In 2004, its four-room flats cost an average $335,000 and the five-room flats, $395,000. Last year, the HDB priced these same-sized flats at an average of $486,000 and $590,000, respectively.

Source : Sunday Times – 10 Jan 2010

Housing agent Mike Poon is looking forward to working in Toa Payoh, on new premises just a stone’s throw from the HDB Hub.

His employer, OrangeTee, joins a host of other property agencies irresistibly drawn there.

After all, location, location, location is the industry’s mantra and the public housing market caters to almost 80 per cent of Singaporeans.

Being near the HDB Hub, in Lorong 6, Toa Payoh, is thus a plus. The HDB moved to its current premises from Bukit Merah in 2002.

Among the big players, ERA and HSR have buildings in Toa Payoh. DTZ, C&H Properties, Global Real Estate and PropNex have units within the HDB Hub, where a major bus interchange and train station are also located.

Another agency, DWG, has its offices along Lorong 6, Toa Payoh as well – at Toa Payoh Shopping Centre.

For now, Mr Poon works out of OrangeTee’s premises in Lock Road, in the Alexandra area.

The company’s new 16-storey building in Lorong 6, leased from the HDB, is nearing completion. When it is ready, 2,500 agents and 60 support staff will move in.

‘Being closer to the Hub will allow me to be closer to my clients and this will allow me to give them more personal service,’ said Mr Poon.

Mr Alan Tock, managing director of OrangeTee, echoed Mr Poon’s point about Toa Payoh’s central location.

Serving private property clients is also a cinch as the area is a short drive to Changi Airport where clients from countries such as China, Indonesia and Malaysia have to be picked up, he added.

With the availability of banks and law firms within the HDB Hub itself, Toa Payoh is becoming a one-stop for home buyers.

Indeed, these factors are crucial to success, said PropNex, which has been based in the HDB Hub since 2004.

Its corporate communication manager, Mr Adam Tan, said that being in Toa Payoh has been a contributing factor to its growth. PropNex has about 6,000 agents.

‘Location is key in the property market,’ he said.

‘People remember you better when you say that your office is in the HDB Hub itself,’ he added, referring especially to buyers of HDB units.

Another company, HSR, moved into the former Pei Chun Primary school premises in Lorong 6, Toa Payoh in November 2008.

It had been based in Toa Payoh Central but decided to move because it needed a bigger place to house its 7,000 staff, said CEO Patrick Liew.

The new premises are still near enough to the HDB Hub, so he does not feel that not being actually there puts him at a disadvantage.

He added: ‘The new premises provide more services for my staff too, such as a spa and a childcare centre.’

Source : Sunday Times – 10 Jan 2010