Treasure On Balmoral

As the most luxurious development in the centre of District 10, Treasure on Balmoral is the development that furnishes a unique city living within the residential established environs of Balmoral Road. With only 48 units for the whole development, Treasure on Balmoral offers privacy and an exclusive living experience within this sought after address. The unique development comprises of two blocks of three and four-bedroom units with single-storey penthouses each served by a private lift. Each unit offers a porosity and connection to the external environment from both the living and dining areas. This openness is again reflected in the flowing spaces among the gourmet kitchen, wet kitchen and the breakfast balcony. Sales Enquiry : 9090-8533 Mark Tan

MP Sin Boon Ann has assured some Tampines residents, who were unhappy that HDB rental flats will be built right in front of their block, that the quality of their estate will not be hurt nor the peace be disturbed.

The MP for Tampines GRC will work with the HDB and residents to debunk the perception that rental flats are old, dirty and bad for image of the estate.

A block of rental flats will soon be built in front of Blk 885, Tampines St 83.

Bernard Fernando, a resident living in one of the units in that block, met HDB officials and MP Sin recently to express his unhappiness over the development.

“They shouldn’t build a towering block of 14 stories right beside our 12-storey block. It doesn’t really make sense. It will cut off the light and cut off the ventilation. If there is a need to build, we don’t object to it, but build a lower block,” said Mr Fernando.

Other residents are equally upset. “Most of the rental flats, normally, problem families will stay (there). Once got problem, anything will happen,” said a resident.

“You will lose everything. You block the air, the wind and everything,” said another.

Mr Sin said it is important to have the rental flats near amenities, and that the government has the final say over where the rental flats are sited. He said efforts will be taken to make things smooth for residents.

He said: “We’ll be working very closely with the contractors, HDB and town councils. We’ll be forming a committee, which also will comprise residents, to (find ways to) mitigate the effects of the noise pollution (during the construction of the flats).

“The new flats will be of the new-generation type, which will blend very nicely within the community itself, such that I don’t think one can visibly pick out these flats as rental flats.”

Some residents are concerned that the value of their homes will go down once the rental flats are up. However, property agents said this is highly unlikely.

Eugene Lim, associate director of ERA Asia Pacific, said: “For example, in Bukit Merah, you see resale flats that are next to rental flats still fetching very high resale prices.”

Some observers said public housing may be one issue debated at the next General Election.

Source : Channel NewsAsia – 10 Feb 2010

CapitaLand’s Australian unit, Australand, said on Tuesday that it made a net loss of A$298.2 million.

It said the accounting loss was due to revaluation losses on investment properties amounting to A$249.4 million.

Moreover, it incurred the impairment of development and joint venture assets amounting to A$148.4 million, on top of a non-recurring finance cost of A$20.7 million.

But Australand said it achieved a net operating profit after tax of A$120.2 million for the full year ended in December, in line with its guidance.

Going forward, Australand said an improved outlook and economic conditions will help to strengthen development activity. It added that it intends to seek approval at its annual general meeting to undertake a five into one consolidation of its stapled securities.

It said that this will reduce the large number of securities on issue following the recent entitlement offers.

CapitaLand is due to announce its group results on Thursday.

Source : Channel NewsAsia – 9 Feb 2010

The Urban Redevelopment Authority (URA) on Tuesday launched a transitional office site at Mohamed Sultan Road for sale by public tender.

The 15-year-leasehold site has an area of about 0.62 hectares and a maximum permissible gross floor area of about 9,200 square metres.

The minimum price for the site is S$9.33 million.

Since October 2008, the land parcel was made available for sale through the Reserve List System. Under the system, a site would be released for sale only if a bid with an acceptable minimum price is received.

Two weeks ago, URA said it accepted an application from a developer to put up the site for sale.

In October 2008, URA had rejected a sole bid for the Mohamed Sultan site as the price offered was deemed to be too low. Back then, RSP Architects Planners & Engineers had put in a bid of S$4.65 million.

The site was subsequently placed on the reserve list. The current tender for the site will close on March 18.

Source : Channel NewsAsia – 9 Feb 2010

CapitaMall Trust (CMT) has acquired riverfront development Clarke Quay from sister company CapitaMalls Asia for S$268 million.

CMT said it has sufficient financial flexibility and capacity to fund the transaction, which is targeted for completion by July 2010.

Assuming the transaction is fully funded by debt, CMT’s gearing would be 33.1 per cent – still within its target range of 30 to 35 per cent.

CMT chairman James Koh said the acquisition will allow CMT’s unitholders to capitalise on the growing lifestyle and entertainment demand in Singapore.

It will increase CMT’s asset size from S$7.4 billion as at December last year to S$7.6 billion.

As CapitaMalls Asia is a controlling unitholder of CMT, the acquisition is considered to be an interested party transaction (IPT) under SGX regulations.

As the IPT exceeds 5 per cent of CMT’s latest audited net tangible assets, the acquisition is subject to the approval of CMT’s unitholders at an extraordinary general meeting, which will be held at an appropriate time.

Two independent valuations of the property have been obtained from property consultancies CB Richard Ellis and Knight Frank, in line with the rules.

Source : Channel NewsAsia – 9 Feb 2010

Property developer CapitaLand on Tuesday said it has seen overwhelming response to its new condominium in Beijing, with 95 per cent of phase one units sold in just over two weeks.

The condominium, called the Beaufort, sits on a 53,808-square metre site and is located within walking distance to Beijing Chaoyang Park, one of China’s largest city parks.

An entire block, comprising 467 units, was launched for sale. The average launch price for the units was S$5,600 per square metre, with a total sales value amounting to over S$167 million.

Commenting on the Beaufort’s success, CEO of CapitaLand China Holdings, Jason Leow, said the Chinese government has introduced a slew of measures to ensure that the property market is developing at a sustainable pace.

When completed, the Beaufort will have a total of four residential blocks with 1,027 high-end apartments, comprising studios, and one- to four-bedroom units.

The entire development will be completed over three to five years, with the first residential block slated to be handed over to the homebuyers by 2011.

Source : Channel NewsAsia – 9 Feb 2010

Revaluation losses, writedowns push company into red

CAPITALAND unit Australand yesterday reported a net loss of A$298.2 million (S$368.1 million) for 2009 as it was hit by revaluation losses on its investment properties as well as writedowns of development and joint venture assets.

In 2008, the Australian developer’s net profit – net earnings attributable to stapled-security holders – slid 85 per cent to A$40.2 million.

Australand achieved a net operating profit after tax of A$120.2 million in 2009, but sank into the red after revaluation losses of A$249.4 million and writedowns of A$148.4 million. The company also saw non-recurring finance costs of A$20.7 million.

Looking ahead, Australand said that operating profit in 2010 will be similar to that achieved in 2009. It added that investment property earnings are expected to grow steadily, mainly from embedded rental growth.

Australand also said that market evidence indicates that investment property valuations are either at or near trough levels in the cycle.

‘Property valuations now appear to be stabilising with revaluation losses of A$14 million in the second half across the A$2 billion portfolio,’ said Australand managing director Bob Johnston.

‘Despite the large statutory loss for the full year, the majority of which was recorded in the first half, the operating profit demonstrates the resilience of the group’s high quality investment portfolio.’

In 2009, Australand’s earnings before interest and taxes (Ebit) from its investment properties grew to A$154 million from A$136 million in 2008. However, Ebit from the residential segment fell sharply to A$68 million from A$117 million.

‘Margins for the residential division remained under pressure during the year as the division continued to trade through impaired and non-core inventory,’ Mr Johnston said.

Looking ahead, the company unveiled a host of new strategies for growth – including a fresh target to get 60-70 per cent of group Ebit from recurrent earnings. It also intends to improve the development divisions’ return on average capital employed to at least 12 per cent over the next three years and recycle underperforming capital in the development divisions to drive earnings growth.

Finally, the company’s gearing will be maintained within a target range of 25-35 per cent, Australand said. The company’s gearing fell to 25 per cent at end-2009, from 36 per cent at the end of 2008.

‘With a strengthened balance sheet, the group is well-positioned to take advantage of the improving economic conditions in the commercial, industrial and residential markets,’ Mr Johnston said.

The company is paying a full year distribution of 5 Australian cents per security. Australand will continue to distribute 80-90 per cent of realised operating trust income.

The company also announced that it intends to seek approval at the annual general meeting in April to undertake a five into one consolidation of the group’s stapled securities.

Source : Business Times – 10 Feb 2010

Grangeford Apts, OUB Centre probably took revaluation hit at end-2009

OVERSEAS Union Enterprise (OUE) has warned that it expects to report a ‘material loss’ for the year ended Dec 31, 2009, as a result of a fair value writedown on an investment property of an associated company and an impairment charge on the group’s development properties, arising from a revaluation of the properties at end-2009.

‘The fair value writedown and impairment charge are non-cash items,’ OUE said in a statutory filing with Singapore Exchange.

‘Notwithstanding the above, the board wishes to inform that the group’s business and operations continue to have a positive contribution to the group,’ it added.

OUE in its statement did not identify the properties involved in the writedown and impairment charge. BT understands the development property that suffered an impairment charge was Grangeford Apartments at Leonie Hill Road while the investment property written down would probably be OUB Centre at Raffles Place.

It had slipped into the red for Q2 2009 due mainly to recognition of impairment losses for two residential development properties, The Parisian and The Grangeford. For the first nine months of last year, OUE posted a net loss of $27.4 million, against a net profit of $45.8 million for the previous corresponding period.

In October last year, the group sold the former Parisian site at Angullia Park for $283 million to China Sonangol Land.

According to some analysts, many of OUE’s other assets are also on the market – including 50 Collyer Quay, an 18-storey office development on the former Overseas Union House site; Mandarin Orchard hotel and Mandarin Gallery along Orchard Road; and Grangeford Apartments.

When contacted, OUE’s chief executive Thio Gim Hock said: ‘We are not actively looking for buyers; it’s more a case of us receiving unsolicited offers, mostly initiated by property brokers.’

‘However, if we receive offers too good to refuse for any of our assets, we’ll consider selling. We’re not sentimental about our properties,’ he added.

For 50 Collyer Quay, the group’s priority for now is to actively look for tenants. The office block is expected to receive Temporary Occupation Permit in Q4 this year, according to Mr Thio.

‘We’re in the process of signing up a few tenants,’ Mr Thio said, declining to elaborate further. BT reported in October last year that law firm Drew & Napier was in discussions to lease space at 50 Collyer Quay. It is currently at Ocean Towers.

50 Collyer Quay, which will have about 400,000 sq ft net lettable area, could be worth about $900 million, some property consultants suggest. The lease on the site has been topped up to a fresh 99-year term.

OUE is controlled by the Riady family’s Lippo group and Malaysian tycoon Ananda Krishan Tatparamandan.

On the stock market yesterday, the counter ended nine cents lower at $9.

Source : Business Times – 10 Feb 2010

SINGAPORE’S iconic Clarke Quay nightspot has been sold to real estate investment trust (Reit) CapitaMall Trust (CMT) for $268 million.

CapitaMalls Asia (CMA), owner of the riverfront food and beverage development, announced yesterday that the cash sale to CMT was in line with its strategy of recycling capital to reinvest elsewhere.

CMA chairman Liew Mun Leong said there was a need to revamp the firm’s portfolio to free up capital for new opportunities, such as Asia’s shopping mall sector, which had ‘tremendous growth potential’.

‘The sale further strengthens CMA’s investment strategy of acquiring new malls for higher returns. We continue to focus on expanding our presence in Singapore, China, Malaysia, Japan and India,’ he added.

The price agreed represents a 2.3 per cent premium over the valuation of $262 million made at the end of last year.

CMA chief executive Lim Beng Chee said Clarke Quay’s growth potential was best realised through CMT.

CMT – which is managed by external manager CapitaMall Trust Management Limited (CMTML), a wholly-owned subsidiary of CMA – said yesterday that it had the financial flexibility and capacity to fund the transaction that is targeted for completion by July.

CMTML chairman James Koh said the purchase of Clarke Quay, which sees more than a million local and overseas visitors per month, would allow CMT’s unitholders to capitalise on the growing lifestyle and entertainment demand.

‘Since the completion of its major refurbishment in late 2006, Clarke Quay has been successfully repositioned as one of the top entertainment zones in Singapore,’ he added.

The acquisition will increase CMT’s asset size to $7.6 billion, cementing its lead as Singapore’s largest Reit by asset size and market capitalisation.

CMTML chief executive Simon Ho said the opening of the integrated resorts is expected to boost tourist arrivals, and the improving economy, together with rising consumer confidence, would boost discretionary consumer spending.

‘Clarke Quay increases the number of properties we have catering for discretionary consumer spending, and enables us to ride on the long-term remaking of Singapore as Asia’s leading convention, exhibition, leisure destination and services centre,’ he added.

He noted that some current leaseholders were paying below-market rent and there was potential for rent hikes when leases are due for renewal.

CMA subsidiaries – CapitaMall Trust Management and CapitaLand Retail Management – will continue to act as Clarke Quay asset manager and property manager respectively, with Clarke Quay remaining in CapitaMalls Asia’s portfolio.

Source : Straits Times – 10 Feb 2010

I REFER to the letters by Mr Lua Eng Chuan (‘Ban PRs from reselling HDB flats at a profit’, Jan 19), Mr Wan Siew Kay (‘Citizenship caveat’, Jan 20) and Mr Robin Chua (‘Costly flats’, Jan 27).

In response to recent strong demand, the HDB has already ramped up the supply of new flats. With at least one build- to-order (BTO) launch a month, most first-time buyers can expect to select a BTO flat within two tries, and move into their new flats three years after booking.

The HDB is monitoring the demand situation closely and will increase the supply of new flats further, if necessary.

The oversubscription for BTO launches does not mean the flat supply is inadequate. In fact, many flat buyers do not select a flat when they get the chance. Last year, almost 50 per cent of first-time applicants in BTO launches did not select a flat upon invitation. So it is not true that there is inadequate supply of new flats, as suggested by Mr Chua.

We also wish to correct some misperceptions about permanent residents (PRs). PRs do not enjoy housing subsidies or HDB concessionary loans. Citizens make up 95 per cent of flat owners and 80 per cent of resale flat buyers.

Mr Wan may have confused HDB’s public rental flats with flats rented out by lessees at open market rentals. The former is meant only for needy Singaporeans who have no other housing options. PRs must rent a flat from the open market at full market rates.

Mr Lua suggested banning PRs from sub-letting or selling their flats at a profit. Like Singaporeans, PR flat owners are required to fulfil the minimum occupation period before they are allowed to sublet or sell their flats. They bear the market risks for their purchases. Nonetheless, the HDB is looking into whether our rules have inadvertently allowed flat purchases for speculative purposes.

Singaporean singles also enjoy subsidies to buy an HDB flat, albeit less than citizen households. Singles above 35 can buy a resale flat with up to $20,000 housing grant if their parents are staying with them.

Lily Chan-Wong Jee Choo (Mrs)
Deputy Director (Policy and Property)
Housing & Development Board

Source : Straits Times – 10 Feb 2010