Published February 1, 2011


UE sells UE Print Media Hub for $51m

By UMA SHANKARI

PROPERTY and construction group United Engineers (UE) has sold one of its industrial properties, UE Print Media Hub, for $51 million.

The project was bought by Singapore-based Crescendas Group, which is involved in a diversified range of businesses including real estate, manufacturing, and hospitality.

Crescendas said that it acquired UE Print Media Hub for long-term investment. The property is currently 100 per cent occupied.

For UE, the divestment is fully in line with the group's ongoing strategy to streamline its businesses, it said yesterday.

This is the second industrial property UE has sold in the last five years. In December 2006, the group sold off UE Tech Park, a warehouse complex at Pandan Crescent, for $115 million.

UE Print Media Hub, located at Tai Seng Avenue, is a five-storey industrial building developed and constructed by UE.

It received its temporary occupation permit in June 2007 and has a net lettable area of about 254,752 sq ft on a site area of 131,577 sq ft.

The development was architecturally designed and spatially structured to house the supply chain of the print-and-media industry so that industrial linkages and business efficiency can be maximised, UE said.

The company added that the sale of UE Print Media Hub will further help to consolidate the group's portfolio of commercial property assets.

The portfolio includes the group's flagship building UE Square in Clemenceau Avenue; UE BizHub Central in Ang Mo Kio; and upcoming developments such as UE BizHub East in Changi Business Park and a mixed development comprising of a hotel and a shopping mall in the one- north research hub.

UE shares lost five cents to close at $2.50 yesterday.


Source: www.businesstimes.com.sg

Published January 26, 2011

CDL moves in on Tanglin Shopping Centre
Marine Point being sold en bloc for about $1,000 psf ppr

(SINGAPORE) The tender for Tanglin Shopping Centre's collective sale closed yesterday and is understood to have drawn at least one submission - from City Developments Limited (CDL).

The reserve price for the en bloc sale is said to be $1.25 billion, working out to a whopping unit land price of about $4,000 per square foot of potential gross floor area, assuming the freehold site is redeveloped. Market watchers find it hard to believe that CDL would be prepared to pay such a price, suggesting some conditions could have been attached to its bid.

CDL's London-listed hotel unit Millennium & Copthorne Hotels, through its wholly-owned unit King's Tanglin Shopping Pte Ltd, owns 85 strata retail and office units as well as all 325 carpark lots in the development, reflecting more than 30 per cent interest in Tanglin Shopping Centre's total strata area, based on earlier reports. The carpark lots are in the basement as well as in a rear multi-storey building.

M&C revealed in June last year that it had signed the Collective Sale Agreement for the sale of its strata-titled interest in the complex.

When contacted yesterday evening, Jean Goh, senior marketing director of ERA Realty Network, the marketing agent for Tanglin Shopping Centre's collective sale, said: 'We cannot comment at this point in time as we are still in the midst of negotiation.'

Based on Tanglin Shopping Centre's existing strata area of about 380,000 sq ft (comprising shops, offices, medical suites and carparking space), the $1.25 billion reserve price works out to about $3,300 per square foot.

Tanglin Shopping Centre has a freehold land area of about 68,512 sq ft. It is zoned for commercial use with a 4.2+ plot ratio under Master Plan 2008. ERA has previously said the property has potential for a mixed development comprising residential and retail units or commercial office cum retail and/or a hotel annex.

Assuming the authorities allow a new commercial development on the site built up to the existing gross floor area (GFA) of 313,437 sq ft with no development charge (DC) payable, the $1.25 billion reserve price would work out to $3,988 per square foot per plot ratio (psf ppr).

However, a DC may be payable for a mixed development scheme that includes a residential component, sources suggest.

The building's existing GFA slightly exceeds the maximum 287,750 sq ft allowed for the site under Master Plan 2008.

Tanglin Shopping Centre currently consists of 363 units of retail, office and medical units, plus the 325 carpark lots in the basement and eight-level multistorey carpark.

Market watchers say that the interest by CDL, which is part of Singapore's Hong Leong Group, in the property is expected, given the group's stronghold in the area. Besides its stake in Tanglin Shopping Centre, the group also has stakes in St Regis Singapore next door, Orchard Hotel and Palais Renaissance.

Separately, BT has learned that a collective sale deal for Marine Point at Marine Parade Road could take place soon. The price of the 51,185 sq ft freehold site is said to be about $95 million, or slightly below $1,000 psf ppr inclusive of DC. Selangor Dredging has been tipped as the potential buyer. Marine Point has a 2.1 plot ratio, which means it can be built into a new project with up to 107,489 sq ft GFA

Source: www.businesstimes.com.sg

Published January 25, 2011

North Bridge Commercial Complex up for sale
Expected price tag is $110-$115m, says DTZ


By FELDA CHAY


(SINGAPORE) North Bridge Commercial Complex is up for grabs, with an expected price tag of $110-$115 million, said DTZ, the marketing agent for the sale.

Located along North Bridge Road, the freehold property sits on a land area of 1,079.1 sq m (11,615 sq ft). The site is zoned for commercial use, has a plot ratio of 4.2 and total gross floor area of 4,532.2 sq m (48,784 sq ft).

Based on the sale price expectations, this translates into a per square foot per plot ratio cost of $2,255-$2,357.

According to DTZ, the plot has a buildable height of up to six storeys. The development currently sitting on the site is a six-storey commercial block with an existing gross floor area of 6,188.67 sq m (66,614 sq ft).

DTZ's senior director for investment advisory services and auction Shaun Poh said of the site: 'There has been no similar property offering in the vicinity recently and we expect the property to attract keen interest from investors and developers.'

He added that the plot's central location, coupled with its proximity to the Bugis and City Hall MRT stations and its prominent frontage, means the property has the potential to be revamped into a boutique office. It can also be turned into a retail development, with the opportunity for individual unit sales, said Mr Poh.

'Shop units at The Bencoolen have recently changed hands at $3,500 to $5,300 psf (per square foot) and at Sim Lim Square up to $9,000 psf,' he noted, adding that other possible development options for the site include a hotel, subject to planning approval.

The site is also close to shopping malls such as Bugis Junction and Raffles City, and hotels like the Inter-Continental Hotel and Raffles Hotel.

For now, entities that own more than 90 per cent of the total strata area and share values of the complex have given their consent to the collective sale. They include private commercial school operator ERC Holdings, which bought 90 per cent of the complex for $46 million in 2009.

The sale is being conducted through a tender exercise, which will close on March 3 at 3pm.


Source: www.businesstimes.com.sg

Published January 20, 2011

Resorts World set to buy Singapore Tech Building

By KALPANA RASHIWALA

(SINGAPORE) Singapore Technologies is said to be close to selling its eponymous office block in the Tanjong Pagar area for nearly $150 million to Resorts World at Sentosa Pte Ltd, the Genting Singapore unit that owns and operates the integrated resort on Sentosa.

The 13-storey freehold Singapore Technologies Building, at the corner of Cantonment and Lim Teck Kim roads, is currently about 90 per cent let and Resorts World is expected to occupy the building as leases expire and more space becomes available - to cope with its growth.

Singapore Technologies Building was completed in 1986 and boasts 135 parking lots.

The price Resorts World is expected to pay would work out to about $1,500 per square foot on the current net lettable area (NLA) of 98,906 sq ft.

Jones Lang LaSalle (JLL), which handled the expression of interest exercise for Singapore Technologies, did not pitch the property for redevelopment potential as the existing gross floor area of about 128,600 sq ft reflects a plot ratio of about 6.6 - higher than the 5.6 plot ratio assigned to the site under Master Plan 2008. The site is zoned for commercial use.

However, there is scope for additions and alterations work that could carve out more NLA and boost the property's rental profile, JLL's national director (investment sales) Anthony Barr had said in October when the property was launched for sale. When contacted yesterday, he declined to comment.

Singapore Technologies Building's expression of interest exercise closed in early November and is said to have drawn a wide profile of investors.

Market watchers said it made sense for Resorts World to invest in a location like Tanjong Pagar, which is close to Sentosa.

Tanjong Pagar is slated to be transformed into a new bustling waterfront district after the container terminals in the vicinity eventually move out.

The Tanjong Pagar Railway Station site is also expected to be redeveloped after Keretapi Tanah Melayu vacates the site under a historic land-swap deal between Singapore and Malaysia announced in September.

Resorts World generated revenues of $860.8 million for the second quarter of last year and $731.8 million for Q3.

The office investment market is off to a good start this year. NTUC Income Insurance Cooperative recently paid $101 million for a 49 per cent equity stake in the company holding 16 Collyer Quay (formerly Hitachi Tower).

The deal valued the 999- year leasehold office tower at about $626 million or $2,250 per square foot on a NLA of 278,356 sq ft.

The remaining 51 per cent stake in Savu Investments continues to be owned by an entity, the shareholders of which are funds managed by affiliates of Goldman Sachs and an indirect subsidiary of Goldman Sachs.

Oxley Holdings has also picked up The Corporate Building along Robinson Road for $57 million

Source: www.businesstimes.com.sg

UOL pays $313m for Lion City Hotel, former Hollywood Theatre

By KALPANA RASHIWALA


(SINGAPORE) UOL Group has trumped five other contenders to bag the Lion City Hotel and adjoining former Hollywood Theatre site for $313 million.


The unit land price for the Tanjong Katong-Geylang Road area properties, with a total freehold land area of 147,909 square feet, works out to $779 per square foot (psf) of potential gross floor area inclusive of estimated development charges of $77.8 million, assuming UOL embarks on a mixed commercial and residential project with an average plot ratio of 3.39.

Based on an alternative scheme for a residential project with commercial space on the first storey with a 3.0 plot ratio, the unit land price would work out to about $871 psf per plot ratio.

The property was sold through a tender exercise which closed yesterday, attracting strong interest from six major developers, said Landmark Property Advisers and Knight Frank, which handled the sale.

UOL noted that the property is near the existing Paya Lebar MRT interchange station for the East-West and Circle lines. 'Based on the current allowable development options, the property may be redeveloped as a commercial-cum-residential development. The company will continue to assess the current allowable development options and other factors to determine the final development scheme for the property.'

Given its location, the future redevelopment of the property is expected to benefit from the nearby Paya Lebar Central commercial hub planned by the Urban Redevelopment Authority, UOL said. Lion City Hotel and the former Hollywood Theatre are being sold by the family of the late property magnate Wee Thiam Siew. The hotel was built in 1968 and the Wee family has been operating it.

The theatre stopped screening films in the 1990s and is today home to a food centre and a Sheng Siong supermarket.

In November, Shaw Brothers sold the former Singapura Theatre site at No 55 Changi Road to a consortium that includes Roxy-Pacific and Macly Capital for $44.9 million.

In the same month, Far East Organization bought Paramount Hotel and Shopping Centre along East Coast Road for $214 million. Far East is expected to keep the freehold asset as an investment property for recurring income although refurbishment is likely to be on the cards

Published January 19, 2011

Source: www.businesstimes.com.sg

Property
Published January 18, 2011

NTUC Income buys stake in 16 Collyer Quay owner
Deal values prime office building at $626 million or $2,250 per sq foot


NTUC Income yesterday said it paid $101 million for a 49 per cent equity stake in Savu Investments, the company holding 16 Collyer Quay previously known as Hitachi Tower.

The transaction values the 999-leasehold office building at about $626 million or $2,250 per sq foot. The prime office property, located near the waterfront in the Collyer Quay area, has a net lettable area of 278,356 sq feet.

NTUC Income said in a press statement yesterday that the remaining 51 per cent stake in Savu Investments continues to be owned by an entity, the shareholders of which are funds managed by affiliates of Goldman Sachs and an indirect subsidiary of Goldman Sachs.

Savu Investments has also re-financed 16 Collyer Quay through a senior secured bond offering. ANZ was sole lead manager, underwriter and bookrunner for the bond offering. The bank was able to bring it to market in just under three weeks, capturing strong liquidity in the market in the first few days of the new year.

ANZ head of Capital Markets Asia, Reuben Tucker, said: 'The process was among the swiftest in recent times for a property secured bond transaction of this size in Singapore. The offering closed with an oversubscribed and well-represented order book in just half a day.'

NTUC Income said its investment comes at a time when the commercial real estate market is expected to continue its uptrend.

Peter Heng, its chief investment officer, said the deal takes place at a time when office capital values in Singapore are still more than 25 per cent off their peak levels in 2008.

The deal was also an opportunity for NTUC Income to work with a global player like Goldman Sachs, he added.

NTUC Income says in its press statement that it is a long term player in Singapore's real estate market as such investments enable the insurer to generate sustainable and stable returns for its policyholder base. The company currently owns several other office properties in Singapore.


Source: www.businesstimes.com.sg

Published January 11, 2011

Two office blocks change hands for $225m
Credit Suisse fund sells 112 Robinson Rd; CDL selling The Corporate Building

By KALPANA RASHIWALA

(SINGAPORE) The buzz in the office investment sales market continues, with two freehold office blocks, 112 Robinson Road and the nearby The Corporate Building, being transacted at $168 million and $57 million respectively.

A Credit Suisse managed fund's sale price for 112 Robinson Road (formerly known as HB Robinson) works out to $1,822 per square foot based on its net lettable area (NLA) of 92,205 sq ft. The sale and purchase agreement was signed last month.

The 14-storey freehold office block with three ground floor shop units underwent a major refurbishment in 2003.

CB Richard Ellis brokered 112 Robinson Road's sale following an expression of interest (EOI) exercise which closed in mid-December.

Grace Global, the Singapore outfit of a low-key Indonesian family, is buying the property for long term investment. The building's existing gross floor area of about 115,000 sq ft reflects a plot ratio (ratio of maximum gross floor area to land area) of nearly 11.8, which exceeds the 11.2 assigned for the 9,780 sq ft site under Master Plan 2008.

112 Robinson Road is said to be about 90 per cent let. Tenants include Saxon Financials and India's Jet Airways. The net yield on Grace Global's purchase price is said to be just over 3 per cent. The EOI for the office block, which has only five car park lots, is said to have been hotly contested. 'The office market is enjoying a powerful recovery with rents and prices rebounding from their low points in 2010 and investors are actively looking for office investment deals,' according to CBRE's executive director (investment properties) Jeremy Lake.

Grace Global is familiar with Singapore's CBD office market, being the owner of 137 Market Street which it bought a few years ago. That building is being refur`bished and upon completion around the middle of this year will have total NLA of about 43,000 sq ft.

As for 112 Robinson Road, the Credit Suisse fund that is selling the office tower picked it up for $119 million or about $1,290 psf in 2007 from a CLSA fund, which had acquired it in 2006 for $80 million or $869 psf from Ho Bee.

Market watchers described 112 Robinson's latest price of $1,822 psf as in sync with values in the area.

In October last year, Oxley Holdings paid $1,956 psf on existing NLA for The Corporate Office nearby but analysts say that deal should be viewed in terms of unit land price as Oxley is said to be eyeing redeveloping the freehold property to a strata office project for sale. On this basis, that transaction reflected a unit land price of about $1,260-1,270 psf per plot ratio (psf ppr) inclusive of development charges.

Similarly, Oxley's latest acquisition, The Corporate Building, works out to $2,789 psf on existing NLA but a more palatable $1,280 psf ppr assuming Oxley redevelops the plot to strata offices.

DTZ is believed to be brokering the sale of The Corporate Building, which is being divested by City Developments. The listed property giant last year also sold The Corporate Office to Oxley. The two buildings are separated by Chow House, which was picked up last year by an entity linked to WyWy Group founder Y Y Wong.

Meanwhile, an expression of interest for Finexis Building at 108 Robinson Road (formerly known as GMG Building) closed on Dec 16 attracting a handful of offers. Owner Robinson Land's asking price is said to be about $110 million or about $2,042 psf on its strata area of 53,873 sq ft.

Robinson Land - whose shareholders include the Buxani Group of Singapore - clinched the 12-storey freehold office block in 2006 for $48 million and is said to have refurbished it for about $10 million.

Due diligence is said to be in progress for the Singapore Technologies Building in the Tanjong Pagar area. The pricing is said to be close to the seller's asking price of about $1,500 psf or about $148 million.

CBRE figures show that nearly $9 billion of office investment sales were done last year. BT Weekend reported that NTUC Income is nearing a deal to buy a 49 per cent stake in 16 Collyer Quay in a deal that values the office tower at about $2,365 psf on NLA or $661 million.

Capital Square, a Grade A office development at Church Street, is expected to be put up for sale soon. The vendor, German insurer Ergo, is said to be eyeing $2,700-2,800 psf on NLA, or crossing the $1 billion mark.


Source:www.businesstimes.com.sg

Published December 23, 2010


Capital Square may be put on the market soon
Grade A office block in Church Street could be worth around $900 million

By KALPANA RASHIWALA

CAPITAL Square, a Grade A office development at Church Street in the Raffles Place micromarket, is expected to be put up for sale soon. It could be worth about $900 million.

BT understands that Cushman & Wakefield will be appointed as marketing agent for the property. It was one of about four or five property consultants invited to make submissions under a Request for Proposal recently.

The property has a net lettable area of 386,525 sq ft, comprising a 16-storey office tower, two rows of conservation shophouses and over 360 car park lots. It is on a site with a remaining lease of about 84 years.

Capital Square is owned by Germany's Ergo Insurance Group and managed by MEAG Pacific Star Asset Management, a joint venture between Pacific Star Group and MEAG, which is asset manager of Munich Re and Ergo.

The building was developed by Keppel Land and Rodamco. The duo sold the property around late 2002 in a deal that valued the asset at $490 million to Ergo. That transaction was structured as an asset securitisation which raised $505 million through the issue of seven-year bonds. Market watchers recall that ahead of the bonds' maturity, Ergo had mulled a sale of the asset last year, but in the end opted for a $549 million refinancing deal which involved the issuance of notes arranged by Australia and New Zealand Banking Group.

BT understands that Cushman could be planning a tender or expression of interest exercise for the sale of Capital Square next month with a view to concluding a deal by April 2011.

Some industry players suggest that Capital Square, which was completed in 1998, could fetch about $2,300-2,400 per square foot, or about $889-928 million. They based this on the $2,400 psf achieved (excluding income support) for K-Reit Asia's and Suntec Reit's recent purchases of a one-third stake each in Marina Bay Financial Centre's Phase 1 (comprising two Grade A office towers, Marina Bay Link Mall and over 600 carpark lots).

'However, MBFC is a brand new development while Capital Square is 12 years old. There may also be space coming up for re-leasing from next year when some tenants move out,' points out one property consultant.

Major tenants at Capital Square include Citigroup, Morgan Stanley and Bloomberg. It boasts column-free floor plates of up to 30,000 sq ft for the office tower, among the biggest in the location.

'This is one of the better-quality office buildings in the Raffles Place area. The landlord could probably charge rentals today above $10 psf a month,' said an office leasing agent.

So far this year, about $8.8 billion worth of office investment sales deals have been done.

Besides K-Reit's and Suntec Reit's acquisitions of a one-third stake each in MBFC Phase 1, other major deals include DBS Towers ($870.5 million), Chevron House ($547.1 million) and GuocoLand's purchase of the site above Tanjong Pagar MRT Station with a minimum office component.


Source: www.businesstimes.com.sg

Published December 16, 2010

Tuan Sing buys Serene House for $99.1m
Unit land price is about $1,388 psf of potential gross floor area of 75,492 sq ft

By KALPANA RASHIWALA

TUAN Sing has made its second Singapore real estate property purchase this week. It yesterday inked a deal to buy Serene House, opposite the upcoming Botanic Gardens MRT Station, through a collective sale for $99.1 million.

The price for the freehold District 10 property, a short walk away from Botanic Gardens' Eco-Lake, works out to a unit land price of about $1,388 per square foot of potential gross floor area of about 75,492 sq ft.

This takes into account an estimated $5.7 million payable to the state for the potential acquisition of a 9,192 sq ft driveway and 10 per cent additional gross floor area for balconies. No development charge is payable due to the high development baseline reflecting a 1.8 plot ratio on the site.

Under Master Plan 2008, the site is zoned for residential use with a 1.4 plot ratio. Serene House has a freehold land area of 39,828 sq ft. Assuming the site, at Cluny Park Road, can be amalgamated with the driveway, the total site area can be potentially enlarged to about 49,021 sq ft.

The enlarged plot can be built into a four-storey condo with 68 units averaging 1,000 sq ft nestled in a predominantly landed housing locale.

Analysts estimate the project could break even at about $2,000-2,100 psf. Units at Nassim Park Residences have sold at an average price of $3,659 psf in the second half of this year.

On Tuesday, Tuan Sing emerged as the top bidder for a 99-year leasehold low-rise private residential site at Seletar Road . Its bid of $123 million works out to $468 per square foot per plot ratio (psf ppr). Analysts have estimated the breakeven cost for a new condo on the site at $800-900 psf.

As for its latest purchase of Serene House, Tuan Sing said yesterday that it intends to develop 'an ultra-luxurious project for this exclusive freehold site'.

In a statutory filing with Singapore Exchange, the group said its acquisition of Serene House is subject to Strata Titles Board's approval and conditional upon Tuan Sing receiving an in-principle approval for the purchase of the adjoining state land from Singapore Land Authority.

Serene House is a four-storey walk-up residential block comprising 24 apartment units. Its owners will each receive about $4.1 million from the sale, said Colliers International, which brokered the sale.

The tender for the property closed on Dec 14, attracting seven bids. Tuan Sing's offer was the highest.

'The tender was well participated by significant property market players including major developers and contractors. The seven highly-competitive bids we received demonstrate the excellent development potential of Serene House in terms of location, convenience and exclusivity,' said Colliers executive director (investment services) Tang Wei Leng.

Colliers is also marketing Serene Centre nearby. An expression of interest exercise for this property also closed on Dec 14 and is said to have drawn strong interest. Serene Centre has a plot ratio of 1.4 and is zoned for commercial/ residential use. It is owned by Lok Joo Pte Ltd, controlled by an Ng family that was also involved with developing Textile Centre

Source: www.businesstimes.com.sg

Published December 2, 2010

Lion City Hotel, Hollywood Theatre sites up for sale

By EMILYN YAP

(SINGAPORE) Lion City Hotel, a 42-year- old landmark in Tanjong Katong, could be making way for new developments. The hotel and the former Hollywood Theatre next to it have been put up for sale by the family of the late property magnate Wee Thiam Siew.

Landmark Property Advisers and Knight Frank are marketing the freehold sites and expect them to fetch more than $300 million.

Lion City Hotel was built in 1968 and the Wee family has been operating it. The 166-room building is a few minutes' walk from Paya Lebar MRT station.

Crowds flocked to the vicinity in the early 1970s as it was home to one of Singapore's earliest department stores run by Emporium. The hotel remained standing even as the area lost some of its lustre over the years.

Next to the hotel is the former Hollywood Theatre, which has its own colourful past. Movie stars such as Fung Bo Bo and Siao Fong Fong had made appearances there decades ago.

The theatre stopped screening films in the 1990s and was at one point home to City Harvest Church. Today, a food centre and a Sheng Siong supermarket occupy the space.

The authorities have indicated that the Lion City Hotel and Hollywood Theatre sites can be redeveloped into residential and commercial developments.

The two plots, together with a substation site nearby owned by SP Powerassets, yield a gross floor area (GFA) of 507,924 sq ft. Some 243,805 sq ft can be put to residential use and 264,119 sq ft to commercial use.

The marketing agents estimate that the sites can accommodate a shopping centre similar to Katong Mall, as well as some 240 apartments with an average size of 1,000 sq ft.

They are expecting the sites to fetch more than $300 million in a tender, and the winning bidder will have to pay a development charge of around $77.8 million.

According to the agents, the land price would come up to around $753 per sq ft per plot ratio (psf ppr). If there is an extra 10 per cent of residential GFA for balcony space, the price would be around $736 psf ppr.

There is likely to be 'keen interest' in the sites as they would benefit from the upcoming commercial centre at Paya Lebar Central, the agents said.

SLP International Property Consultants' research executive director Nicholas Mak believes that the expectations are bullish. The breakeven price for the residential units could exceed $1,100 psf, he said. The tender for the sites will close on Jan 6.

Source: www.businesstimes.com.sg

Published November 27, 2010

Far East buys Paramount Hotel, Shopping Centre
The $214m deal involves a collective sale; Far East plans to manage the hotel


By KALPANA RASHIWALA


FAR East Organization has clinched Paramount Hotel and Shopping Centre along East Coast Road for $214 million.

BT understands that Far East plans to keep the freehold asset as an investment property for recurring income although refurbishment is likely to be on the cards.

The deal involves a collective sale and will be subject to approval from the Strata Titles Board.

Approval has been obtained from owners controlling over 90 per cent of share values and strata floor area in the asset.

Far East plans to manage the hotel. It is currently operated by YTC Corporation, which is selling the 229-room hotel. YTC also owns the Peninsula Excelsior Hotel at Coleman Street.

BT understands that YTC stands to receive about $167 million for the hotel, which translates to about $730,000 per room. The balance $47 million will be payable to the owners of the 95 strata shop units in the development. The ageing hotel and shops are housed in a four-storey podium and eight-storey tower block.

Far East was the highest of nearly 10 bidders that participated in the tender for the collective sale, which closed on Nov 23.

The property has a freehold land area of 102,685 square feet and is zoned for hotel use with a gross plot ratio of up to 3.0 under Master Plan 2008.

The location is familiar to Far East. It is developing Silver Sea and The Shore Residences condominium projects nearby.

The sale was brokered by Jones Lang LaSalle (JLL). The property consultant said that the site was formerly zoned for 'local shopping' use under the 1958 and 1980 Master Plans.

'Subject to planning approval from the authorities, the site with a potential gross floor area of up to 308,056 sq ft has varied redevelopment options such as hotel, commercial, residential or a combination thereof,' it said.

JLL added that the $214 million purchase price works out to about $1,178 per square foot per plot ratio (psf ppr) including development charge (DC) of $40.07 million for residential use at a plot ratio of 2.1 or $736 psf ppr including an estimated $12.8 million DC for a mix of hotel and commercial use at 3.0 plot ratio.


Source:www.businesstimes.com.sg

Published October 28, 2010


Over 80% of Hougang Green mall up for sale

MORE than 80 per cent of the total strata floor area of Hougang Green Shopping Mall is being sold by developer Hiap Hoe Holdings.

Hiap Hoe, which built the mixed residential and commercial development near the junction of Hougang Street 51 and Buangkok Green in 1997, still owns 57 shops in the retail component.

It is looking to sell the units for $78 million to $84 million, which works out to an average of $1,174 to $1,264 per sq ft of strata floor area.

Hougang Green is a two-storey complex with 78 strata-titled retail units and a total strata area of more than 82,600 sq ft.

Hiap Hoe's 57 units have a combined strata floor area of 66,435 sq ft and represent more than 80 per cent of the total strata floor area of the retail complex. By share value, the portfolio accounts for more than 57 per cent of the entire mixed development.

The units are all occupied, with tenants such as Shop N Save, Watsons, Guardian, 7-Eleven and Pizza Hut.

'Opportunities to acquire a large cluster of shops of this scale are few and far between. It's an attractive investment for investors looking for higher returns than from residential properties,' said Karamjit Singh, managing director of Credo Real Estate. Credo is conducting an expression-of-interest exercise to sell the shops.

Mr Singh said investors could also acquire the units with a view to selling them individually for a profit later. One of the first-floor units in the retail complex changed hands in December last year at $2,600 psf, he said.

The expression-of-interest exercise closes on Nov 25 at 2.30 pm.

http://www.businesstimes.com.sg

Price expectations for the freehold office block are $1,500 psf of NLA

THE Singapore Technologies Building in the Tanjong Pagar area has been put on the market.

Price expectations for the 13-storey freehold office block, completed in 1986, are $1,500 per square foot of net lettable area (NLA) and above. Based on the building's current NLA of 98,906 sq ft, a price of $1,500 psf reflects an absolute sum of $148.4 million. The office block's current occupancy rate is close to 90 per cent.

The property is not being pitched for redevelopment potential as the current existing gross floor area of about 128,600 sq ft reflects a plot ratio of about 6.6 - which is higher than the 5.6 plot ratio assigned to the site under Master Plan 2008. The site is zoned for commercial use.

However, there is scope for additions and alterations work that could carve out more NLA and boost the property's rental profile, says Jones Lang LaSalle's national director (investment sales) Anthony Barr.

Jones Lang LaSalle has been appointed by the property's owner, Singapore Technologies group, to conduct an expressions of interest campaign for the sale of the property. The closing date for submissions is Nov 4. The building has ample car parking of 135 lots and is located at the corner of Cantonment and Lim Teck Kim roads. Vehicular access is via the laneway off Cantonment Road, allowing users to access the building without incurring Electronic Road Pricing charges, JLL highlighted.

'The building is currently occupied by various office tenants and provides the buyer with exposure to the improving CBD office rent cycle in addition to potential for further enhancement via refurbishment and asset management initiatives,' it added.


The building has ample car parking of 135 lots and is at the corner of Cantonment and Lim Teck Kim roads.

Source: http://www.businesstimes.com.sg

Price around $1,956 psf of net lettable area; buyer led by Oxley Holdings

Published October 1, 2010
By KALPANA RASHIWALA

SINGAPORE) City Developments Ltd (CDL) is said to be selling a 21-storey freehold office block at the corner of Robinson Road and McCallum Street for $215 million.

the corporate officeThe buyer of The Corporate Office is understood to be a consortium led by Oxley Holdings group. The price works out to $1,956 per square foot based on the building's net lettable area of 109,920 sq ft.

The Corporate Office, which is about 25 years old, has 112 carpark lots, something of a rarity in office towers in that part of the CBD. About 15 per cent of the building's net lettable area is currently vacant and the lease for a further 7-8 per cent of space is said to expire early next year. But that's not necessarily a bad thing for the buyers.

Sources suggest that Oxley - which is headed by Ching Chiat Kwong - is looking to move its headquarters into The Corporate Office. The group currently operates out of Singapore Land Tower in Raffles Place and is said to be gunning for an initial public offer by year end. Oxley has been in the news lately for developing projects with shoebox apartments, including Suites@Guillemard and VivaVista in Pasir Panjang.

On the group's purchase of The Corporate Office along Robinson Road, market watchers suggest that in the medium term, Oxley and its partners may consider redeveloping the property, which has a land area of 16,032 sq ft, into a residential project with commercial use on the first storey or into a commercial-residential development. Under Master Plan 2008, the site is zoned for commercial use with an 11.2+ plot ratio (ratio of maximum potential gross floor area to land area). The site can be developed up to 35 storeys high. The Corporate Office's existing gross floor area is said to reflect a plot ratio of about 9.27, which points to some unutilised plot ratio.

DTZ is thought to have brokered the sale of The Corporate Office through a private treaty deal. The property consultancy also brokered the sale of Chow House next door a couple of months ago for $101 million to a group led by WyWy Group' founder, YY Wong.

The price for Chow House, a six-storey freehold office block which has redevelopment potential, is said to work out to about $1,300 per square foot per plot ratio assuming it is redeveloped into apartments. The site has a land area of 9,084 sq ft and is zoned for commercial use with an 11.2+ plot ratio under Master Plan 2008. However, outline planning permission has been granted to redevelop the Chow House site into residential use with commercial use on the first storey.

Chow House sits between The Corporate Office and another CDL-owned property - The Corporate Building.

The property giant's sale of The Corporate Office is its latest divestment of non-core assets. In recent years, CDL has also sold North Bridge Commercial Complex (near Bugis Junction), The Office Chamber along Jalan Besar, Chinatown Point mall, and Commerce Point near Raffles Place MRT Station.


Source: http://www.businesstimes.com.sg

SING Holdings has inked a deal to buy Robin Court and the next door 1 Robin Drive for a total $77.33 million.


This works out to about $1,363 per square foot of potential gross floor area.

No development charge is expected, Sing Holdings said in a regulatory filing with the Singapore Exchange yesterday.

The two freehold District 10 properties have a combined land area of about 40,518 square feet and are zoned for residential use with a 1.4 plot ratio (ratio of maximum potential gross floor area to land area).

Robin Court involves a collective sale and is subject to approval from the Strata Titles Board.

The properties were sold through a tender exercise handled by Credo Real Estate and which drew 10 bids. Sing Holdings was the highest bidder. When the tender was launched, the asking price was indicated as $66 million to $74 million.

Published September 20, 2010

Source: http://www.businesstimes.com.sg

Goldman funds take big loss, sell property to Deka

Published September 24, 2010
By KALPANA RASHIWALA


(SINGAPORE) Chevron House at Raffles Place has been sold for $547 million to a fund managed by Deka Immobilien of Germany, taking the total value of Singapore office investment sales deals so far this year to nearly $3 billion.

The price for Chevron House works out to around $2,083 per square foot based on the building's existing net lettable area (NLA) of 262,650 sq ft, BT understands.

Chevron House, which was formerly known as Caltex House, is a 33-storey building on a site with a remaining lease of about 78 years.

The property is being sold by Goldman Sachs funds, which are walking away with a loss, having paid $730 million or about $2,780 psf for the property in 2007. That acquisition was funded mostly by a consortium of lenders headed by Standard Chartered. The latest transaction is slated for completion by late October, ahead of the expiry of the financing facility, sources say.

Chevron House is the second Singapore office property to be sold by Goldman Sachs funds lately following last month's $870.5 million divestment of DBS Towers One and Two along Shenton Way to Overseas Union Enterprise. Goldman reaped a profit from that transaction; it paid $690 million for the office blocks in 2005.

The US bank's funds also bought Hitachi Tower, behind Chevron House, in early 2008 for $811 million or about $2,900 psf of NLA. The 999-year leasehold office tower, fronting Collyer Quay, is expected to be put up for sale within the next few months given that the financing facility on the asset - also extended by a Stanchart-led consortium - is said to end early next year.

The Singapore office market has seen a steady rental recovery after the slump in the wake of the global financial crash.

'The fundamentals are attractive. Investors have realised this over the past three months and investor appetite has increased significantly. Parties looking to invest include Reits, other property funds and private investors. Appetites range from $100 million to $500 million-plus,' said a market watcher.

Deka, which is buying Chevron House, is a unit of DekaBank in Germany. The deal marks Deka's first major property acquisition in Singapore and is said to be at close to 4 per cent net yield. Chevron House is currently 98 per cent let. Major tenants include Chevron and Visa.

The property comprises a four-storey retail podium, 29-storey office tower and three basement levels. B1 has shops linked directly to the Raffles Place MRT Station, while B2 and B3 contain 96 carpark lots.

It is thought that the property was marketed through an expression of interest exercise which closed in the third week of August.

BT understands the exercise was well received and that about six parties were then shortlisted for due diligence and further negotiations, culminating in the sale to the Deka-managed fund. CB Richard Ellis is understood to have brokered the sale of Chevron House

Source: http://www.businesstimes.com.sg