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
NTUC Income buys stake in 16 Collyer Quay owner
Over a third of Punggol's Prive snapped up
Published December 11, 2010
Over a third of Punggol's Prive snapped up
Other projects that are coming to market include Austville Residences, Spottiswoode 18 and Killiney 118
By EMILYN YAP
CHRISTMAS came early for NTUC Choice Homes Co-operative and Chip Eng Seng yesterday as home buyers inked deals for more than a third of the 680 apartments at their executive condominium project, Prive.
As at 5pm, the developers had processed over 270 sales options and said that they were clearing more. They declined to give an estimate of the total number of units that could be sold.
Balloting for units at the 99-year leasehold Prive at Punggol began yesterday. As many as 1,036 applications had poured in by the end of Tuesday, reflecting strong interest for the project.
Prive is the first EC to come up in Punggol and the developers had said earlier that the average selling price of units would be between $660 per square foot and $690 psf. Buyers can opt for a deferred payment scheme, but they will have to pay 2 per cent more.
Another EC launch will be coming up soon. United Engineers could be rolling out Austville Residences between Sengkang East Avenue and Buangkok Drive either this month or next.
BT understands that the selling price might start from $620 psf. The developer is planning to give out branded fridges to early buyers and hold a lucky draw with return air tickets to Australia as prizes.
Some agents are gathering interest for the freehold Spottiswoode 18, which will come up on the site of the former Dragon Mansion near Tanjong Pagar.
Roxy-Pacific Holdings had bought Dragon Mansion en bloc late last year. There are plans to build a 36-storey residential tower on the site, with 251 apartments measuring 387 square feet to 1,324 sq ft. Prices are said to be above $2,000 psf.
Spottiswoode 18 will be near UOL Group's recently launched Spottiswoode Residences, which is also a freehold project. Selling prices at the latter were last reported to be in the range of $1,720-2,270 psf.
Marketing for the freehold Killiney 118 has also started. The project in the Somerset area has 30 units comprising one and two-bedders and is developed by a unit of Amara Holdings.
The momentum for property launches could pick up in January after the December holiday season ends and before the Chinese New Year kicks in. For instance, CB Richard Ellis is in discussions for four to five launches slated for that month.
Source: www.businesstimes.com.sg
Good response to Prive
Published December 8, 2010
Good response to Prive
PRIVe, the first executive condominium (EC) project to come up in Punggol, has attracted strong interest from home buyers.
The developers, NTUC Choice Homes Co-operative and Chip Eng Seng, received 1,011 applications for the 680 apartments available as at 8pm yesterday. Applications have closed and bookings will start on Friday.
The 99-year-leasehold development offers two to four-bedders across four 17-storey towers, and the average selling price will be between $660 and $690 per square foot (psf).
The developers are offering a deferred payment scheme, although buyers who opt for that will have to pay 2 per cent more.
DMG & Partners analyst Brandon Lee, who visited Prive's sales gallery over the weekend, said in a report that the turnout was buoyant. 'We thought overall pricing of $680 psf is reasonable, which equates to a slight 8 per cent premium over the $630 psf fetched by nearby completed ECs.'
Response to ECs launched this year has been moderate. When Frasers Centrepoint launched Esparina Residences, it received 1,155 applications for the 573 units available. Actual take-up was lower as some potential buyers could have backed out after their preferred units were sold. At MCC Land's The Canopy, around 450 applications had come in for the 406 units available.
Source: www.businesstimes.com.sg
Relevance of deferred payments in spotlight
Published December 2, 2010
Relevance of deferred payments in spotlight
By EMILYN YAP
(SINGAPORE) Is the deferred payment scheme (DPS) relevant in today's property market? That's the question on the mind of some observers as they learned the scheme can be offered for executive condominium (EC) projects.
The low interest rate environment and higher price tags for homes sold on DPS could encourage buyers to stick to the normal payment scheme (NPS), some say.
On Tuesday, NTUC Choice Homes Co-operative (NCH) and Chip Eng Seng said they will offer NPS and DPS for their EC at Punggol, Prive.
Buyers who opt for DPS will pay just a 5 per cent booking fee and 15 per cent of the purchase price - they need not make further payment until the development obtains its Temporary Occupation Permit.
That caught many market players by surprise, as they had assumed the government withdrew DPS in 2007 to curb speculation. BT found out later that the change did not apply to ECs.
NCH chief executive Margaret Goh told BT yesterday the developers wanted to give EC buyers an 'attractive and affordable' option with the DPS.
Those taking up the scheme have to pay 2 per cent more than those under NPS. Average selling prices at Prive will be $660-690 per sq ft.
Colliers International research and advisory director Tay Huey Ying does not expect take-up of DPS to be high because of the premium charged.
Typically, 'genuine buyers' prefer to pay less for their homes while those who aim to re-sell units before project completion take up DPS, she said. With ECs, flipping is not possible in the early years, as owners need to fulfil a minimum occupation period of five years.
Some observers also feel there is little incentive for buyers to defer payments, since banks are offering attractive home loans now. Interest rates may not stay low, and buyers on DPS may end up signing on to more expensive loans later.
'Because the interest rates are so low, they might as well start (paying)' and reduce their borrowings along the way, said Dennis Ng, founder of mortgage consultancy portal HousingLoanSG.com.
Some consultants are a bit more optimistic about DPS's appeal. It is still a 'persuasive tool', said Cushman & Wakefield Singapore vice-chairman Donald Han.
EC buyers tend to be less cash-rich than other private property buyers and many may want to put off the burden of paying for the homes, he said.
DTZ executive director (consulting) Ong Choon Fah feels Prive's developers made a strategic move to offer DPS.
'We know there has been a slowdown in some parts of the market, so it's good to be cautious and make sure that whatever you can do to incentivise and empower the buyer is there,' she said.
Source: www.businesstimes.com.sg
Pasir Ris EC site draws top bid of $262.62 psf
Published October 22, 2010
Pasir Ris EC site draws top bid of $262.62 psf
By KALPANA RASHIWALA
A 60-40 joint venture between NTUC Choice Homes Co-operative and Chip Eng Seng Corporation has emerged as the highest bidder for an executive condo (EC) site in Pasir Ris.
Choice Homes and Chip Eng Seng said yesterday that they intend to build an 18-storey, 320-unit project with full condo facilities. 'This will be the first EC to be offered in Pasir Ris since 2002,' they said.
Breakeven cost for the project will be below $600 per square foot, they added.
Credo Real Estate executive director Ong Teck Hui estimates that an EC development on the site could command an average selling price of about $650-700 psf if it were to be launched today.
ECs are a hybrid of public and private housing.
The plot, bounded by Pasir Ris Drive 1, Elias Road and Sungei Api Api, is flanked by Ris Grandeur on one side and Livia and NV Residences on the other. All three are private condos. NV Residences, which has 99-year leasehold tenure, was launched last month.
CB Richard Ellis executive director Joseph Tan said: 'Given that 347 units were sold at NV Residences last month at a median price of $859 psf, there will be a market for this new EC project if it is priced at about 20-25 per cent below this level, given the restrictions on EC ownership, which are similar to HDB ownership rules.'
Other bidders at yesterday's tender included a joint venture between Frasers Centrepoint unit Opal Star and Lum Chang Building Contractors ($251.49 psf ppr); and City Developments subsidiary Sunmaster Holdings ($240.71).
A partnership involving Hoi Hup Realty, Sunway Developments and SC Wong Holdings bid $230.43 psf ppr, while Ecco Development placed the lowest bid of $178.22 psf ppr. Credo's Mr Ong said: 'The tender response for the Pasir Ris site was a shade better than that for a Punggol site last month in terms of price as well as bidder interest. This is probably due to Pasir Ris being a more mature and developed location. Also this is a less crowded sub-market since most of this year's EC sites have been concentrated in the north-east region, especially Sengkang/Punggol.'
The bid price and interest level indicates the bidders' confidence that there will be sustained buyer interest in ECs, he added.
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