Property news round up 20 May 2018

Garden residences impression 3

November launch for first batch of HDB flats in new Tengah estate

THE first batch of 1,500 Housing Board flats in the new Tengah estate will be launched in November, Minister for National Development Lawrence Wong announced on Sunday.

He shared the details in a post on his blog, Housing Matters, where he said that the flats will comprise “a good mix across different flat-types”.

Over the next few years, there will be a steady stream of flats in Tengah, which is Singapore’s first new town in more than 20 years since Punggol, he added.

When completed, Tengah will grow to about 700 hectares, which is roughly equivalent to Bishan in size, he added.

Will Oxley pull off its property launch blitz?

HAVING made a splash overseas by developing the Royal Wharf project in the UK at unprecedented speed, Oxley Holdings looks ready to set a new precedent – this time in its home market.

If things go according to plans, it would be the first developer to launch close to 4,000 residential units in one year here.

The developer’s corporate presentation materials show it is targeting to launch its entire Singapore residential portfolio of over 3,900 units this year with a total gross development value (GDV) of S$5 billion.

Such speed-to-market approach is in stark contrast to some of its peers, who have snapped up sites much later at higher prices and are hence waiting for a more opportune time to launch their projects.

Roxy-Pacific Q1 profit up 19% despite drop in revenue

PROPERTY and hospitality group Roxy-Pacific Holdings has posted on Monday a 19 per cent increase in first quarter net profit to S$7 million from S$5.9 million in the same period a year ago, because of a jump in the share of results of associates.

For the three months ended March 31, revenue however tumbled 29 per cent year on year to S$46.4 million.

The decrease in revenue was mainly due to lower contribution from the property development and property investment segments.

GIC teams up to launch rental apartment platform in China

GIC, Singapore’s sovereign wealth fund, is partnering Nova, a Shanghai-based property investment and asset management platform, to set up a 4.3 billion yuan (S$904.9 million) rental apartment platform in China.

Both partners said in a joint statement on Monday that the platform will invest in “quality rental apartment projects” in core locations across China’s Tier 1 cities.

GIC will also be acquiring a minority stake in Nova, a company that is co-founded by Chinese entrepreneur Wang Qian and global private equity firm Warburg Pincus.

Goldhill Shopping Centre in Novena up for en bloc sale

NOVENA’s Goldhill Shopping Centre has been launched for collective sale with a reserve price of S$425 million, announced property services firm Cushman & Wakefield, the agent handling the tender exercise.

With a development charge of around S$61.2 million, the land rate for the freehold site translates to around S$2,597 per square foot per plot ratio (psf ppr).

Cushman & Wakefield said that the sale is the first fully commercial collective sale site to be launched this year, with the tender set to close on June 27, 2018, at 3pm.

Number of private homes sold by developers up only a tad in April

CONTRARY to earlier market expectations, the number of private homes sold by developers in April rose just 1.8 per cent over March – as they continued what one analyst termed a “leisurely” pace of launches.

Property consultants had expected a notable increase in sales volume for April with some big launches.

JLL national director Ong Teck Hui said: “The 3.9 per cent quarter-on-quarter rise in the private home price index of the Urban Redevelopment Authority (URA) in Q1 2018 suggests the possibility of a good upside in prices, which would encourage an unhurried stance towards launches in order to capitalise on the price increase.”

The 729 private homes (excluding executive condo or EC units) developers moved in April was up slightly from the 716 units in the month before, but down a hefty 53.5 per cent from the 1,567 units sold in April 2017, going by data from URA on Tuesday, which is based on its survey of licensed developers.

70% of apartments released in New Futura Phase 2 sold

LUXURY condo New Futura has seen 21 of 30 units released over the weekend at its 60-unit North Tower snapped up at an average selling price of over S$3,500 per square foot (psf), City Developments Limited (CDL) said in a statement on Tuesday.

A majority of the units during this second phase soft-launch were bought by permanent residents and foreigners, and these were the larger apartments of up to S$10 million each, said CDL, which started previews on May 11.

CDL has also seen what it called “robust demand” for New Futura’s South Tower which was soft-launched in January under its Phase 1, it said in a statement on Tuesday.

Koh Brothers Group net profit up 13% to S$1.2m; order book hits record

KOH Brothers Group is tendering for large-scale infrastructure projects here such as the North-South Corridor and the Kuala Lumpur-Singapore High Speed Rail.

Managing director and group chief executive officer Francis Koh told The Business Times this on the day it released its Q1 2018 results.

The engineering and construction group’s order book hit a record S$915.9 million, helped by projects won in the last eight months: the Woodlands Health Campus (S$192 million), Deep Tunnel Sewerage System Phase 2 (S$182 million) and Circle Line 6 (S$225.4 million).

Far East bags coveted Holland site for S$1.2b

A CONSORTIUM led by property giant Far East Organization, which has clinched a coveted commercial and residential site in Holland Road, is planning a development with apartments for sale, dual office/residential use units, offices, retail space and serviced residences on the site.

Far East Organization executive director of property services Augustine Tan, on behalf of the joint venture, disclosed the above to The Business Times on Wednesday evening.

The winning bid of S$1.213 billion works out to nearly S$1,888 per square foot per plot ratio (psf ppr).

Will CCT divest Twenty Anson?

OVER the past couple of years, CapitaLand Commercial Trust (CCT) has reconstituted its portfolio and recycled some capital.

This has resulted in the trust gaining a bigger presence in Singapore’s core office markets of Raffles Place and Marina Bay, while shedding an asset in a city-fringe location.

To recap, in 2016, the trust acquired the remaining 60 per cent interest in CapitaGreen (the new office project that it built on the former Market Street Car Park site).

Last year, it sold a half-stake in One George Street (OGS) for S$592 million, about 400 m from Raffles Place MRT Station, and exited Wilkie Edge in the Selegie area for S$280 million.

The sales proceeds from these two divestments have helped to partially fund CCT’s 45 per cent share of the S$1.8 billion redevelopment of the Golden Shoe Car Park site into CapitaSpring, an integrated office and serviced residence project, as well as the trust’s S$2.1 billion purchase of the office and retail space at Asia Square Tower 2.

Manulife US Reit to raise US$197.2m from 22-for-100 preferential offering

SINGAPORE-listed Manulife US Reit has announced a preferential offering of 22 new units for every 100 held at US$0.865 per unit to raise some US$197.2 million.

The issue price of US$0.865 represents a 7.9 per cent discount to the volume-weighted average price of US$0.9391 per unit for trades done on the Singapore bourse for the full market day on May 15.

The deal, which includes about 228 million new non-renounceable units in Manulife US Reit, is underwritten by DBS Bank and CLSA Singapore, which are also the joint lead managers of the offering.

In the event that the deal is not fully subscribed, the underwriters will subscribe and pay for the shortfall.

Frasers Property, GIC, JustCo invest US$177m in co-working space platform

MAINBOARD-LISTED real estate firm Frasers Property, Singapore’s sovereign wealth fund GIC, and co-working space provider JustCo are collectively investing US$177 million to develop a co-working space platform across Asia, the three companies said in a joint statement on Wednesday.

JustCo has a presence in Singapore, Indonesia and Thailand; and this investment will enable JustCo to build on its presence in South-east Asia as it expands into other Asian markets including China, Japan and Australia, among others.

The new injection of funds will also support JustCo’s “continued focus on ramping up technology solutions, and enhance service offerings to facilitate collaboration and networking opportunities”, the companies noted.

TT International’s Big Box in Jurong East put up for sale by receivers

THE receivers and managers for the owner of Big Box have put the warehouse retail mall put up for sale. The landmark eight-storey building in Jurong East Regional Centre is owned by Big Box, a 51 per cent subsidiary of struggling mainboard-listed consumer electronics retailer TT International.

Cushman & Wakefield, exclusive marketing agent for the sale, noted that the warehouse retail scheme under which Big Box operated has expired.

Said Shaun Poh, its executive director of capital markets: “With a gross floor area (GFA) of over 1.4 million square feet, Big Box is probably the largest ramp-up warehouse asset to be offered for sale in recent years.

Cavenagh Gardens, Flynn Park, Rosalia Park join bandwagon

THE collective sale fever continues, as JLL launched five freehold residential sites with a total value of over S$1.2 billion.

The five sites are Cavenagh Gardens off Orchard Road; Flynn Park in Pasir Panjang; Rosalia Park near Serangoon Central; La Ville at Tanjong Rhu Road; as well as the joint sale of three single-storey detached houses at Lorong H Telok Kurau.

The three houses at Telok Kurau are owned by three families and do not require approval from the Strata Titles Board.

Cavenagh Gardens – at a minimum price of S$480 million – has the biggest price tag of the five sites, which translates to a price per square foot (psf) of S$1,640.

The property is in District 9 and close to Orchard Road.

20180519 new sites launched for collective sales

Two more District 9 sites launched for collective sale

TWO freehold developments in the prestigious Cairnhill enclave of prime District 9, completed in the 1980s, have been launched for collective sale through public tender.

Owners of the 36-unit Cairnhill Astoria in Cairnhill Rise are asking for at least S$196 million, while owners of the 18-unit Trendale Tower at Cairnhill Road have put up the development with a reserve price of S$163.52 million.

This translates a land rate of S$1,964 per square foot per plot ratio (psf ppr) for Cairnhill Astoria after factoring in an estimated development charge of S$16.34 million, and a land rate of S$2,250 psf ppr for Trendale Tower (which will not incur development charge).

Chancery Court brings YTD tally to S$8.8b, topping 2017 figure

IT is barely halfway through the year, but with the sale of ex-HUDC Chancery Court on May 17, the collective sales market has busted the total collective sale figure for the whole of 2017.

The total collective sales transaction value so far this year for 27 residential sites and one industrial site is now at S$8.81 billion, higher than the S$8.7 billion seen for 30 residential and non-residential sites brokered in 2017.

And the figure is set to surge further with several large sites still on the market.

Including the S$401.78 million tab for Chancery Court – which The Business Times understands was bought by Far East Organization – residential collective sales year to date total S$8.736 billion, surpassing 2017’s S$8.13 billion.

Extending leases for older HDB flats ‘will have serious trade-offs’

Amid calls for automatic lease extensions for older public flats, Minister for National Development Lawrence Wong has said that the issue involves serious trade-offs and ramifications.

One key matter is that despite the government’s best efforts at planning, “we are still severely constrained by space in Singapore”, he said in Parliament on Thursday.

“If there is no more land to recycle for future public housing, then what will happen to our children and grandchildren? How will they have access to subsidised housing in the future?” he said.

CCT to buy majority stake in Frankfurt property for 343m euros

AFTER announcing its maiden property acquisition outside Asia – a Grade A office property in Frankfurt’s CBD – CapitaLand Commercial Trust (CCT) said it would continue to be predominantly Singapore-focused.

The trust will look to allocate 10 to 20 per cent of its deposited property for overseas investments, focusing on core commercial assets in key gateway cities in developed markets, said Kevin Chee, chief executive of the Manager of CCT.

CCT is buying a majority stake in the freehold Frankfurt building for 342.7 million euros (S$548 million), which will be partially funded through an equity placement that will raise gross proceeds of at least S$212 million.

CDL, Distrii join hands in smart building apps

REAL estate developer City Developments (CDL) is making further inroads into proptech, as CDL inked a tech joint venture with Chinese co-working operator Distrii.

This was announced at the soft opening of Distrii’s co-working space at CDL’s Republic Plaza, a prime Grade A office building connected to Raffles Place MRT Station, on Thursday.

Distrii will work with CDL exclusively in South-east Asia to develop smart office and building apps.

Cuscaden Road GLS site to be developed into luxury residence

A RESIDENTIAL Government Land Sales (GLS) site at Cuscaden Road, which fetched a top bid of S$410 million, will be developed into a luxury residential project “enriched by a focus on arts and culture”.

This was disclosed by Adrian Cheng, executive vice-chairman and general manager of New World Development, on Thursday.

The 5,722.5 sq m site was awarded to a consortium comprising SC Global Developments, New World Development Company and Far East Corsortium International, through their indirect wholly-owned subsidiaries.

Aurum Land buys all units in Balmoral Gardens for almost S$83m

AURUM Land, the boutique development arm of Woh Hup group, is understood to have done a bulk purchase of all eight units that make up Balmoral Gardens for nearly S$83 million.

The property is next to 11 Balmoral Road which Aurum acquired last year.

Market watchers expect the group to amalgamate the two prime district 10 freehold sites; Aurum could potentially build a 12-storey condo with about 100 units averaging 1,000 sq ft on the combined site of about 67,000 sq ft.

The Business Times understands that the price Aurum paid for the Balmoral Gardens site reflects around S$1,812 per square foot per plot ratio (psf ppr) inclusive of estimated development charges payable to the state.

Metro Holdings buys 35% of JV that’s acquiring Shanghai mixed-use building

METRO Holdings Limited has acquired a 35 per cent stake in a joint venture that is investing into Shanghai Plaza, a mixed-use building in Shanghai worth 2.9 billion yuan (S$613 million).

The joint venture company, Shanghai Yi Zhou Property Management Co Ltd, has on the same day on Thursday, acquired a 90 per cent stake of the building, with the intention to acquire the remaining 10 per cent by 2020.

This acquisition was undertaken via a sale and purchase agreement with Hangzhou Huan Bei Silk Clothing City Co Ltd to acquire a 90 per cent stake in Shanghai Yong Ling Property Development Co Ltd, which owns Shanghai Plaza.

ESR-Reit and VIT merger could lead to more industrial Reit deals

WITH the proposed merger of ESR-Reit and Viva Industrial Trust (VIT) to create Singapore’s fourth-largest industrial Reit, more mergers and acquisitions (M&As) in the industrial Reit space could be on the way, say analysts.

This marriage – creating a combined S$33 billion in assets – could become the first in the history of Singapore Reits (S-Reits). If it goes through, it will happen by way of a trust scheme of arrangement, under which ESR-Reit’s manager will become the manager of the enlarged trust; VIT will be de-listed from the Singapore bourse.

The move raises questions of whether private equity firm Warburg Pincus, which owns e-Shang Redwood (ESR), will continue to build up its presence in S-Reits, with Reit investor Tong Jinquan as a potentially ally.

The Chinese property tycoon is a substantial unitholder in both Reits that are planning to merge.

If the merger is successful, he would own 33.8 per cent of the enlarged trust structure.

CCT sells S$217.9m of units at S$1.676 apiece to cover rich end of price talk

CAPITALAND Commercial Trust (CCT) has priced an upsized S$217.9 million overnight placement of units at S$1.676 apiece to cover the rich end of initial indications.

Price talk was at a range of S$1.631 to S$1.676 per unit for the deal, which launched on Thursday. The issue price represents a discount of about 3.2 per cent to the counter’s volume weighted average price of S$1.7306 on Wednesday.

The trust requested a trading halt on Thursday morning before the release of the related announcements.

Trading resumed on Friday, with units in CCT closing at S$1.71 per unit, down 0.6 per cent or 1 Singapore cent.

Chinatown Plaza owners to get S$260m in collective sale

CHINATOWN Plaza has been sold for S$260 million to a property unit affiliated to Singapore-based RGE (Royal Golden Eagle), the pulp and paper to palm oil giant founded by Sukanto Tanoto.

The price translates to a land rate of S$1,915 per square foot per plot ratio (psf ppr), said Edmund Tie & Company (ET&Co) on Friday, which handled the collective sale.

Located along Craig Road, Chinatown Plaza has a land area of about 33,953 square feet and is zoned for commercial and residential use.

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