GUOCOLAND yesterday broke ground on a US$58 million development in Vietnam - its first project in the country.
The 17.5 ha site will be home to The Canary - an integrated development which will house some 1,200 residential apartments, a hotel, a trendy retail mall and an international school.
GuocoLand said that the first phase of the residential apartments will be launched soon. This will be followed by the development of the first phase of the retail mall.
The entire development is scheduled to be completed in five to six years’ time, the developer said. ‘However, the actual progress will depend on market conditions in Vietnam,’ said Lawrence Peh, GuocoLand’s general manager for Vietnam.
The Canary is located near the Vietnam-Singapore Industrial Park, near Ho Chi Minh City. The project will be the first fully integrated development in Vietnam’s Binh Duong Province, GuocoLand said.
‘When The Canary is completed, it will add vibrancy to Binh Duong Province, which is a leading recipient of foreign direct investment among Vietnam’s provinces,’ said GuocoLand in a statement.
Besides GuocoLand, many other Singaporean developers - including Keppel Land, CapitaLand, Frasers Centrepoint and Allgreen Properties - have of late made forays into Vietnam’s booming property market.
GuocoLand’s shares closed five cents down at $5.20 yesterday. The company’s stock has climbed 128.5 per cent since the start of the year.
Source : Business Times - 21 Nov 2007
Showing posts with label GuocoLand. Show all posts
Showing posts with label GuocoLand. Show all posts
Wednesday, November 21, 2007
Friday, November 2, 2007
99-year residential site at Enggor Street behind the Icon development drew just two bids
In a sign that developers are turning cautious after the withdrawal of the deferred payment scheme, a state tender for a 99-year residential site at Enggor Street behind the Icon development drew just two bids yesterday.
The higher bid by Far East Organization was 55 per cent above the only other offer by GuocoLand.
Far East offered $233.8 million or about $852 per square foot of potential gross floor area for the 32,681 sq ft plot near Tanjong Pagar MRT Station. GuocoLand’s $150.98 million bid works out to around $550 psf per plot ratio.
All eyes are now on a tender for the residential site next-door closing on November 15.
Far East’s breakeven cost for a new condo project is understood to be in the $1,340 to $1,400 psf range. That still leaves it with a profit margin based on current prices being achieved at Icon.
Caveats show that mid-level units (on the 20th to 22nd levels) of Icon have been changing hands in recent months in the $1,500 to $1,600 psf range in the subsale market, although units above the 40th storey have been sold by Far East at above $2,000 psf.
The property giant is understood to have sold a penthouse on the 46th floor recently for about $2,300 psf. It is now left with about 30 units in the 646-unit project, and its prices range from $2,000 to $2,400 psf.
For the latest site, called Land Parcel A at Enggor Street, BT understands Far East’s scheme is for a 62-storey tower with about 200 apartments - likely to be a spread of unit types like Icon - and is targeting to launch the project around end-2008 or early 2009.
Far East will develop retail space on the project’s ground level to be linked to Icon Village, the street-level retail component of its earlier project.
While property market watchers attributed the thin participation at yesterday’s tender to developers turning cautious following the withdrawal of the DPS scheme, some were puzzled by the disparity between the two bids. ‘Far East has crunched their numbers and know what they are in for, based on their experience with selling Icon units,’ a seasoned property consultant said.
However, some analysts could not help but suggest that Far East’s significantly higher offer may also have been partly motivated by a need to support property prices, including the values of sites it bid earlier. In September, the property giant clinched a prime condo plot next to Ang Mo Kio Hub for $601 psf per plot ratio - a record for suburban 99-year leasehold condo land. That tender attracted a whopping 14 bids. Another state tender for a condo site next to Kovan MRT Station that closed in early October drew six bids.
‘Developers are a bit concerned after the DPS withdrawal. It looks like they’ve chickened out of this tender,’ a seasoned property consultant said, when explaining yesterday’s thin bidding.
However, another property consultant, CB Richard Ellis executive director Li Hiaw Ho suggested that another reason for the lukewarm response yesterday could be due to the site’s location.
‘It is behind Icon and is sandwiched between a commercial site that has been awarded and another residential site (Parcel B) whose tender will close on Nov 15. Nevertheless, the site is about five minutes’ walk from Tanjong Pagar MRT Station,’ he added.
Source : Business Times - 2 Nov 2007
The higher bid by Far East Organization was 55 per cent above the only other offer by GuocoLand.
Far East offered $233.8 million or about $852 per square foot of potential gross floor area for the 32,681 sq ft plot near Tanjong Pagar MRT Station. GuocoLand’s $150.98 million bid works out to around $550 psf per plot ratio.
All eyes are now on a tender for the residential site next-door closing on November 15.
Far East’s breakeven cost for a new condo project is understood to be in the $1,340 to $1,400 psf range. That still leaves it with a profit margin based on current prices being achieved at Icon.
Caveats show that mid-level units (on the 20th to 22nd levels) of Icon have been changing hands in recent months in the $1,500 to $1,600 psf range in the subsale market, although units above the 40th storey have been sold by Far East at above $2,000 psf.
The property giant is understood to have sold a penthouse on the 46th floor recently for about $2,300 psf. It is now left with about 30 units in the 646-unit project, and its prices range from $2,000 to $2,400 psf.
For the latest site, called Land Parcel A at Enggor Street, BT understands Far East’s scheme is for a 62-storey tower with about 200 apartments - likely to be a spread of unit types like Icon - and is targeting to launch the project around end-2008 or early 2009.
Far East will develop retail space on the project’s ground level to be linked to Icon Village, the street-level retail component of its earlier project.
While property market watchers attributed the thin participation at yesterday’s tender to developers turning cautious following the withdrawal of the DPS scheme, some were puzzled by the disparity between the two bids. ‘Far East has crunched their numbers and know what they are in for, based on their experience with selling Icon units,’ a seasoned property consultant said.
However, some analysts could not help but suggest that Far East’s significantly higher offer may also have been partly motivated by a need to support property prices, including the values of sites it bid earlier. In September, the property giant clinched a prime condo plot next to Ang Mo Kio Hub for $601 psf per plot ratio - a record for suburban 99-year leasehold condo land. That tender attracted a whopping 14 bids. Another state tender for a condo site next to Kovan MRT Station that closed in early October drew six bids.
‘Developers are a bit concerned after the DPS withdrawal. It looks like they’ve chickened out of this tender,’ a seasoned property consultant said, when explaining yesterday’s thin bidding.
However, another property consultant, CB Richard Ellis executive director Li Hiaw Ho suggested that another reason for the lukewarm response yesterday could be due to the site’s location.
‘It is behind Icon and is sandwiched between a commercial site that has been awarded and another residential site (Parcel B) whose tender will close on Nov 15. Nevertheless, the site is about five minutes’ walk from Tanjong Pagar MRT Station,’ he added.
Source : Business Times - 2 Nov 2007
Friday, October 26, 2007
COMPLETION OF EN BLOC PURCHASE OF SOPHIA COURT
COMPLETION OF EN BLOC PURCHASE OF SOPHIA COURT
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
The Company refers to its announcement of 8 December 2006 in relation to the conditional en bloc purchase of Sophia Court, a freehold property comprised in Lots 420X and 406M both of Town Subdivision 19. GuocoLand Limited (“GLL”) wishes to announce that its wholly-owned subsidiary, Sophia Residence Development Pte. Ltd. has as at 5 September 2007 completed the en bloc acquisition of Sophia Court for a total purchase consideration of $230 million (the “Acquisition”).
The site is slated for the development of Sophia Residence, which will have a gross floor area of 32,413 square metres. Sophia Residence is located at Mount Sophia in the vicinity of Orchard Road, within walking distance of the Dhoby Ghaut MRT station.
The Acquisition was financed by internal resources, bank borrowings and from part of the net proceeds from the Company’s recent Rights Issue.
The Acquisition is not expected to have any material effect on the net tangible assets per share or earnings per share of the GLL Group for the current financial year ending 30 June 2008.
Monday, October 22, 2007
QUEK Leng Chan’s Singapore-listed property arm GuocoLand has posted a group net profit of $27.7 million for the first quarter ended Sept 30, 2007
QUEK Leng Chan’s Singapore-listed property arm GuocoLand has posted a group net profit of $27.7 million for the first quarter ended Sept 30, 2007, up from $8.1 million for the corresponding year-ago period, as revenue more than doubled from $88.2 million to $191 million.
The improved showing was due mainly to higher contribution from the group’s property development projects in China, especially from West End Point condo in Beijing.
GuocoLand’s bottom line also received a fillip from other income, which jumped from $9.2 million to $15.8 million, mainly due to higher net foreign exchange gains arising from the revaluation of US dollar bank loans.
However, finance costs rose by 74 per cent to $12.6 million due to an increase in bank loans and the convertible bonds.
Cash and cash equivalents increased from $1.09 billion as at June 30 to $1.53 billion as at Sept 30, largely because of net proceeds of about $555 million received from a renounceable 1-for-3 rights issue at $2.50 per share in July this year.
GuocoLand also gave an update of its various projects. In Singapore, it achieved sales of 86 per cent for Le Crescendo in Paya Lebar and 91 per cent for The View @ Meyer as at Oct 18. The group has also sold 97 per cent of the 337 units launched in The Quartz condo in Buangkok.
In Beijing, the 810-unit West End Point is 96 per cent sold.
Piling for the group’s development sites situated in Nanjing’s Qixia District (Ascot Park Phase 1) and Shanghai’s Putuo District (Changfeng Phase 1) has been completed. Construction has started for Changfeng Phase 1. Resettlement for the development site in Nanjing’s Xuanwu District (Hillview Regency) is largely completed.
The group’s 65 per cent-owned subsidiary GuocoLand (Malaysia) Berhad has eight ongoing mixed residential development projects in the Klang Valley. Earthwork and piling for an integrated commercial development project in Damansara Heights is in progress.
In Vietnam, the master plan for the group’s integrated development project next to Vietnam Singapore Industrial Park near Ho Chi Minh City has been submitted to the authorities.
‘Given the robust economies in the countries in which the group operates, namely, Singapore, China, Malaysia and Vietnam, the group believes that demand for quality residential properties and well-located commercial properties in these countries will remain sustainable,’ GuocoLand said.
In Singapore, GuocoLand is expected to launch the 210-unit Goodwood Residence in the prime Bukit Timah area in the next few months.
GuocoLand’s earnings per share rose to 3.62 cents for Q1 ended September 2007, from 1.32 cents for the year-ago period. Net asset value per share stood at $2.37 as at Sept 30, seven cents higher than in June 30.
On the stock market yesterday, GuocoLand closed unchanged at $5.55.
Source : Business Times - 20 Oct 2007
The improved showing was due mainly to higher contribution from the group’s property development projects in China, especially from West End Point condo in Beijing.
GuocoLand’s bottom line also received a fillip from other income, which jumped from $9.2 million to $15.8 million, mainly due to higher net foreign exchange gains arising from the revaluation of US dollar bank loans.
However, finance costs rose by 74 per cent to $12.6 million due to an increase in bank loans and the convertible bonds.
Cash and cash equivalents increased from $1.09 billion as at June 30 to $1.53 billion as at Sept 30, largely because of net proceeds of about $555 million received from a renounceable 1-for-3 rights issue at $2.50 per share in July this year.
GuocoLand also gave an update of its various projects. In Singapore, it achieved sales of 86 per cent for Le Crescendo in Paya Lebar and 91 per cent for The View @ Meyer as at Oct 18. The group has also sold 97 per cent of the 337 units launched in The Quartz condo in Buangkok.
In Beijing, the 810-unit West End Point is 96 per cent sold.
Piling for the group’s development sites situated in Nanjing’s Qixia District (Ascot Park Phase 1) and Shanghai’s Putuo District (Changfeng Phase 1) has been completed. Construction has started for Changfeng Phase 1. Resettlement for the development site in Nanjing’s Xuanwu District (Hillview Regency) is largely completed.
The group’s 65 per cent-owned subsidiary GuocoLand (Malaysia) Berhad has eight ongoing mixed residential development projects in the Klang Valley. Earthwork and piling for an integrated commercial development project in Damansara Heights is in progress.
In Vietnam, the master plan for the group’s integrated development project next to Vietnam Singapore Industrial Park near Ho Chi Minh City has been submitted to the authorities.
‘Given the robust economies in the countries in which the group operates, namely, Singapore, China, Malaysia and Vietnam, the group believes that demand for quality residential properties and well-located commercial properties in these countries will remain sustainable,’ GuocoLand said.
In Singapore, GuocoLand is expected to launch the 210-unit Goodwood Residence in the prime Bukit Timah area in the next few months.
GuocoLand’s earnings per share rose to 3.62 cents for Q1 ended September 2007, from 1.32 cents for the year-ago period. Net asset value per share stood at $2.37 as at Sept 30, seven cents higher than in June 30.
On the stock market yesterday, GuocoLand closed unchanged at $5.55.
Source : Business Times - 20 Oct 2007
Wednesday, May 2, 2007
Singapore developer to double China spend
sgSingapore developer to double China spend
GUOCOLAND Ltd, a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan, may double its investment in China this year to US$5.4 billion to tap growing demand for new homes.
Unit GuocoLand China Ltd is in talks that which may be completed in as soon as six months about several projects in Tianjin, Beijing and Shanghai, Violet Lee, managing director of GuocoLand China, said in Beijing on Friday.
Singapore developers including CapitaLand Ltd have expanded in China as construction increases amid rapid growth in the nation's urban population. China posted economic growth of 10.7 percent last year.
"I'm not building enough to meet China's demand," Lee said. "With this rate of urbanization, there'll always be this continuous demand for housing."
Guocoland China also plans to expand into the management of properties and real estate investment trusts by 2010, Lee said. The company has two million square meters of property reserves in China, she said.
"The market is just enormous," Lee said. "The appetite is there, the need is there."
Parent GuocoLand agreed to purchase a 90 percent stake in Beijing Cheng Jian Dong Hua Real Estate Development Co for 5.8 billion yuan (US$750 million), the company said in a statement to the Singapore stock exchange on Friday.
Beijing Cheng Jian owns the development and land use rights to the Dongzhimen site, a 106,000 square meter parcel in central Beijing, the statement said. The property will be developed into a retail, hotel, office and residential complex with up to 600,000 square meters, Bloomberg News reported.
GUOCOLAND Ltd, a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan, may double its investment in China this year to US$5.4 billion to tap growing demand for new homes.
Unit GuocoLand China Ltd is in talks that which may be completed in as soon as six months about several projects in Tianjin, Beijing and Shanghai, Violet Lee, managing director of GuocoLand China, said in Beijing on Friday.
Singapore developers including CapitaLand Ltd have expanded in China as construction increases amid rapid growth in the nation's urban population. China posted economic growth of 10.7 percent last year.
"I'm not building enough to meet China's demand," Lee said. "With this rate of urbanization, there'll always be this continuous demand for housing."
Guocoland China also plans to expand into the management of properties and real estate investment trusts by 2010, Lee said. The company has two million square meters of property reserves in China, she said.
"The market is just enormous," Lee said. "The appetite is there, the need is there."
Parent GuocoLand agreed to purchase a 90 percent stake in Beijing Cheng Jian Dong Hua Real Estate Development Co for 5.8 billion yuan (US$750 million), the company said in a statement to the Singapore stock exchange on Friday.
Beijing Cheng Jian owns the development and land use rights to the Dongzhimen site, a 106,000 square meter parcel in central Beijing, the statement said. The property will be developed into a retail, hotel, office and residential complex with up to 600,000 square meters, Bloomberg News reported.
Saturday, April 28, 2007
GuocoLand bought Leedon Heights for $835 million
GuocoLand yesterday said it has bought Leedon Heights for $835 million in what is thought to be the largest ever lump sum paid for a collective sale site here.
The price works out to about $1,062 per square foot per plot ratio (psf ppr), including a development charge of about $40.2 million. Leedon Heights, in District 10, is located off Holland Road and Farrer Road.
The purchase will be the fourth major land acquisition in the last 12 months for GuocoLand, a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan. Leedon Heights will add about 825,000 sq ft to the group’s existing land bank of one million sq ft of gross floor area.
The developer said in a filing to the Singapore Exchange that the purchase, which will close in mid-2008, will be funded by debt and internal resources.
Tang Wei Leng, director of investment advisory services at property firm DTZ which brokered the deal, said that the site drew strong interest. There were five bids and one expression of interest in all - including from major Singaporean developers such as CapitaLand, City Developments, SC Global and Ho Bee Investment, she said.
The price paid by GuocoLand is slightly higher than that previously indicated by DTZ when it was first put up for sale. In March, when the site was first launched, DTZ estimated that could fetch its owners $780 million.
Including an estimated development charge (DC) of $40.2 million, the suggested price works out to $981 psf ppr.
The site has a land area of about 522,000 sq ft and a 1.6 plot ratio. When launching the tender, DTZ said that provisional permission has been granted for a 12-storey condominium with 384 residential units.
Said GuocoLand yesterday: ‘Given the locale - it is well-established with Singaporeans and foreigners alike - GuocoLand is confident of drawing strong interest from premium buyers from Singapore, the region and internationally.’
Data from the Urban Redevelopment Authority released yesterday showed that home prices grew a robust 4.8 per cent in the first quarter of the year, higher than the 3.8 per cent increase seen in the previous quarter. The hike was led by uncompleted projects in the Core Central Region (which includes Districts 10), where prices rose 7.3 per cent.
Right now, Leedon Heights consists of four blocks with a total of 314 units. Owners will walk away from the collective sale with upwards of $2.4 million each, Ms Tang said.
GuocoLand’s shares climbed 20 cents to close at a one-year high of $5.40 yesterday. The stock has climbed 108.5 per cent since the start of the year, compared with a 13.8 per cent rise in the benchmark Straits Times Index.
Source: The Business Times, 28 April 2007
The price works out to about $1,062 per square foot per plot ratio (psf ppr), including a development charge of about $40.2 million. Leedon Heights, in District 10, is located off Holland Road and Farrer Road.
The purchase will be the fourth major land acquisition in the last 12 months for GuocoLand, a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan. Leedon Heights will add about 825,000 sq ft to the group’s existing land bank of one million sq ft of gross floor area.
The developer said in a filing to the Singapore Exchange that the purchase, which will close in mid-2008, will be funded by debt and internal resources.
Tang Wei Leng, director of investment advisory services at property firm DTZ which brokered the deal, said that the site drew strong interest. There were five bids and one expression of interest in all - including from major Singaporean developers such as CapitaLand, City Developments, SC Global and Ho Bee Investment, she said.
The price paid by GuocoLand is slightly higher than that previously indicated by DTZ when it was first put up for sale. In March, when the site was first launched, DTZ estimated that could fetch its owners $780 million.
Including an estimated development charge (DC) of $40.2 million, the suggested price works out to $981 psf ppr.
The site has a land area of about 522,000 sq ft and a 1.6 plot ratio. When launching the tender, DTZ said that provisional permission has been granted for a 12-storey condominium with 384 residential units.
Said GuocoLand yesterday: ‘Given the locale - it is well-established with Singaporeans and foreigners alike - GuocoLand is confident of drawing strong interest from premium buyers from Singapore, the region and internationally.’
Data from the Urban Redevelopment Authority released yesterday showed that home prices grew a robust 4.8 per cent in the first quarter of the year, higher than the 3.8 per cent increase seen in the previous quarter. The hike was led by uncompleted projects in the Core Central Region (which includes Districts 10), where prices rose 7.3 per cent.
Right now, Leedon Heights consists of four blocks with a total of 314 units. Owners will walk away from the collective sale with upwards of $2.4 million each, Ms Tang said.
GuocoLand’s shares climbed 20 cents to close at a one-year high of $5.40 yesterday. The stock has climbed 108.5 per cent since the start of the year, compared with a 13.8 per cent rise in the benchmark Straits Times Index.
Source: The Business Times, 28 April 2007
Friday, April 27, 2007
Two HDB residential sites to be sold by public tender
Two Housing & Development Board (HDB) residential sites on the government’s reserve list have attracted minimum committed bids and will now go on sale by public tender.
A 235,897.3-square-foot site at Bishan Street 22/25 - with a plot ratio of 3.5 - has drawn a minimum committed bid of $194 million or $235 per square foot per plot ratio (psf ppr).
And a 124,876.3-sq-ft site at Dakota Crescent, Geylang S5 - with plot ratio of 3.5 - has drawn a minimum committed bid of $115.8 million or $265 psf ppr. When the sites are eventually awarded, they will be the first solely private residential sites sold since April 2002 when NTUC Choice Homes and Chip Eng Leong Enterprise won the tender for a site in Ang Mo Kio for $244 psf ppr. NTUC Choice Homes did win an HDB commercial/residential site next to Yew Tee MRT Station for $308 psf ppr in September 2005, while a Guthrie-Lee Kim Tah-TMW consortium won an HDB commercial/residential site at Jurong West for $329 psf per two months earlier.
Colliers International director for investment sales Ho Eng Joo reckons projects on the two latest sites will attract HDB upgraders rather than investors.
He estimates the Bishan site could go for $260-$290 psf ppr and the Dakota Crescent site could fetch a higher $300-$350 psf ppr because it is nearer the city.
He sees breakeven cost will at more than $500 psf and $600 psf respectively.
Savills Research estimates the Bishan Street 22/25 site could go for $300-$400 psf ppr or $248 million-$330 million and the Dakota Crescent site for $275-$350 psf ppr or $120-$153 million.
Savills executive director (residential) David Neubronner said the Bishan site, close to several good schools and facing Bishan Park, could attract developers like NTUC Choice Homes, Far East Organization and Wing Tai, while the Dakota Crescent site, which is on the fringe of prime areas in eastern Singapore, could attract the likes of CapitaLand, Guocoland, Hong Leong and Far East Organization.
‘We would also not be surprised if they team up like what we saw happening at Casa Merah,’ Mr Neubronner said.
He also thinks that it is possible the same developer triggered the sale of both sites.
Savills expects prices of mass-market condominiums to rise 8-10 per cent this year.
Source: The Business Times, 24 April 2007
A 235,897.3-square-foot site at Bishan Street 22/25 - with a plot ratio of 3.5 - has drawn a minimum committed bid of $194 million or $235 per square foot per plot ratio (psf ppr).
And a 124,876.3-sq-ft site at Dakota Crescent, Geylang S5 - with plot ratio of 3.5 - has drawn a minimum committed bid of $115.8 million or $265 psf ppr. When the sites are eventually awarded, they will be the first solely private residential sites sold since April 2002 when NTUC Choice Homes and Chip Eng Leong Enterprise won the tender for a site in Ang Mo Kio for $244 psf ppr. NTUC Choice Homes did win an HDB commercial/residential site next to Yew Tee MRT Station for $308 psf ppr in September 2005, while a Guthrie-Lee Kim Tah-TMW consortium won an HDB commercial/residential site at Jurong West for $329 psf per two months earlier.
Colliers International director for investment sales Ho Eng Joo reckons projects on the two latest sites will attract HDB upgraders rather than investors.
He estimates the Bishan site could go for $260-$290 psf ppr and the Dakota Crescent site could fetch a higher $300-$350 psf ppr because it is nearer the city.
He sees breakeven cost will at more than $500 psf and $600 psf respectively.
Savills Research estimates the Bishan Street 22/25 site could go for $300-$400 psf ppr or $248 million-$330 million and the Dakota Crescent site for $275-$350 psf ppr or $120-$153 million.
Savills executive director (residential) David Neubronner said the Bishan site, close to several good schools and facing Bishan Park, could attract developers like NTUC Choice Homes, Far East Organization and Wing Tai, while the Dakota Crescent site, which is on the fringe of prime areas in eastern Singapore, could attract the likes of CapitaLand, Guocoland, Hong Leong and Far East Organization.
‘We would also not be surprised if they team up like what we saw happening at Casa Merah,’ Mr Neubronner said.
He also thinks that it is possible the same developer triggered the sale of both sites.
Savills expects prices of mass-market condominiums to rise 8-10 per cent this year.
Source: The Business Times, 24 April 2007
Wednesday, April 18, 2007
JP Morgan raises GuocoLand to overweight
JP Morgan raises GuocoLand to overweight
SINGAPORE - JP Morgan has raised its recommendation on GuocoLand to 'overweight' from 'underweight' and set a December 2007 price target of $6.00 for shares in the Singapore property firm after an investment in China.
JP Morgan analysts Christopher Gee and Joy Wang said in a note to investors that the market had yet to price in GuocoLand's $2 billion (US$1.3 billion) investment in a mixed-use property project in Dongzhimen, Beijing.
'The properties in this portfolio could, when completed, provide the seed investments for funds and Reits managed by the group's nascent funds management business.' -- REUTERS
SINGAPORE - JP Morgan has raised its recommendation on GuocoLand to 'overweight' from 'underweight' and set a December 2007 price target of $6.00 for shares in the Singapore property firm after an investment in China.
JP Morgan analysts Christopher Gee and Joy Wang said in a note to investors that the market had yet to price in GuocoLand's $2 billion (US$1.3 billion) investment in a mixed-use property project in Dongzhimen, Beijing.
'The properties in this portfolio could, when completed, provide the seed investments for funds and Reits managed by the group's nascent funds management business.' -- REUTERS
Saturday, April 14, 2007
Singapore's GuocoLand May Double Investment in China on Demand
Singapore's GuocoLand May Double Investment in China on Demand
By Wing-Gar Cheng
April 14 (Bloomberg) -- GuocoLand Ltd., a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan, may double its investment in China this year to $5.4 billion to tap growing demand for new homes.
Unit GuocoLand China Ltd. is in talks, which may be completed in as soon as six months, about several projects in Tianjin, Beijing and Shanghai, Violet Lee, managing director of GuocoLand China, said in Beijing yesterday.
Singapore developers including CapitaLand Ltd. have expanded in China, the world's fastest-growing major economy, as construction increases amid rapid growth in the nation's urban population. The world's most populous country posted economic growth of 10.7 percent last year.
``I'm not building enough to meet China's demand,'' Lee said. ``With this rate of urbanization, there'll always be this continuous demand for housing.''
Guocoland China also plans to expand into the management of properties and real estate investment trusts, or REITS, by 2010, Lee said. The company has 2 million square meters of property reserves in China, she said.
``The market is just enormous,'' Lee said. ``The appetite is there, the need is there.''
Parent GuocoLand agreed to purchase a 90 percent stake in Beijing Cheng Jian Dong Hua Real Estate Development Co. for 5.8 billion yuan ($750 million), the company said in a statement to the Singapore stock exchange yesterday.
Development Rights
Beijing Cheng Jian owns the development and land use rights to the Dongzhimen site, a 106,000 square meter (26 acre) land parcel in central Beijing, the statement said. The property will be developed into a retail, hotel, office and residential complex with up to 600,000 square meters (6.5 million square feet) of space, the company said. Including the development cost for Dongzhimen, the agreement is valued at 10 billion yuan, according to the company.
The development includes a transportation hub and a rail link that will be able to take passengers to Beijing International Airport within 15 minutes, the statement said.
Shares of GuocoLand closed unchanged at S$4.20 in Singapore yesterday. The stock has risen 65 percent this year, compared with a 11 percent gain in the benchmark Straits Times Index.
By Wing-Gar Cheng
April 14 (Bloomberg) -- GuocoLand Ltd., a Singapore-based developer controlled by Malaysian billionaire Quek Leng Chan, may double its investment in China this year to $5.4 billion to tap growing demand for new homes.
Unit GuocoLand China Ltd. is in talks, which may be completed in as soon as six months, about several projects in Tianjin, Beijing and Shanghai, Violet Lee, managing director of GuocoLand China, said in Beijing yesterday.
Singapore developers including CapitaLand Ltd. have expanded in China, the world's fastest-growing major economy, as construction increases amid rapid growth in the nation's urban population. The world's most populous country posted economic growth of 10.7 percent last year.
``I'm not building enough to meet China's demand,'' Lee said. ``With this rate of urbanization, there'll always be this continuous demand for housing.''
Guocoland China also plans to expand into the management of properties and real estate investment trusts, or REITS, by 2010, Lee said. The company has 2 million square meters of property reserves in China, she said.
``The market is just enormous,'' Lee said. ``The appetite is there, the need is there.''
Parent GuocoLand agreed to purchase a 90 percent stake in Beijing Cheng Jian Dong Hua Real Estate Development Co. for 5.8 billion yuan ($750 million), the company said in a statement to the Singapore stock exchange yesterday.
Development Rights
Beijing Cheng Jian owns the development and land use rights to the Dongzhimen site, a 106,000 square meter (26 acre) land parcel in central Beijing, the statement said. The property will be developed into a retail, hotel, office and residential complex with up to 600,000 square meters (6.5 million square feet) of space, the company said. Including the development cost for Dongzhimen, the agreement is valued at 10 billion yuan, according to the company.
The development includes a transportation hub and a rail link that will be able to take passengers to Beijing International Airport within 15 minutes, the statement said.
Shares of GuocoLand closed unchanged at S$4.20 in Singapore yesterday. The stock has risen 65 percent this year, compared with a 11 percent gain in the benchmark Straits Times Index.
Thursday, March 29, 2007
GuocoLand to buy Tianjin site
GuocoLand to buy Tianjin site
By CONRAD RAJ
GUOCOLAND, the Singapore listed arm of Malaysian billionaire Quek Leng Chan, which already has a third of its assets in China, is pouring even more money into the country.
It announced yesterday that its wholly owned subsidiary GuocoLand (China) has signed a conditional agreement to purchase a 26,000 square metre site in the city of Tianjin, just south of the Chinese capital of Beijing, for about US$52.5 million.
This is the group's first foray into Tianjin and GuocoChina hopes to develop 153,000 sq m of residential homes and offices on the 50-year leasehold site.
GuocoChina managing director Violet Lee said of the proposed acquisition: 'It underlines our strong commitment to be a major player in China as well as our confidence in the growth of China's economy. This will, in turn, continue to generate demand for quality developments such as those developed by GuocoLand.'
At the end of June last year, the group's assets in China amounted to $816 million, with developments in Shanghai, Nanjing and Beijing. Including Tianjin, GuocoChina has about 1.15 million sq m of saleable land in the four cities for development into residential, retail and commercial integrated projects.
The Tianjin deal is conditional on GuocoChina getting approvals from the Tianjin authorities to acquire the company, Tianjin Zhong Xin Ming Shi Real Estate Development Co (Tianjin Zhong Xin), which holds the land use and development rights to the site from its current shareholders Lead Mix Ltd and Reliapoint Ltd. It is also conditional on getting a new business licence from the Tianjin Administration for Industry & Commerce, and other approvals.
The proposed venture by GuocoChina will form part of the overall development of Tianjin's Lao chengxiang area by Hongkong-listed Neo-China Group (Holdings). The area is one of Tianjin's oldest residential districts with a 600-year-old history as a commercial hub.
A major city with a population of over 10 million, half of whom live in the metropolitan area, Tianjin is the economic centre of the Bohai Sea Rim area.
By CONRAD RAJ
GUOCOLAND, the Singapore listed arm of Malaysian billionaire Quek Leng Chan, which already has a third of its assets in China, is pouring even more money into the country.
It announced yesterday that its wholly owned subsidiary GuocoLand (China) has signed a conditional agreement to purchase a 26,000 square metre site in the city of Tianjin, just south of the Chinese capital of Beijing, for about US$52.5 million.
This is the group's first foray into Tianjin and GuocoChina hopes to develop 153,000 sq m of residential homes and offices on the 50-year leasehold site.
GuocoChina managing director Violet Lee said of the proposed acquisition: 'It underlines our strong commitment to be a major player in China as well as our confidence in the growth of China's economy. This will, in turn, continue to generate demand for quality developments such as those developed by GuocoLand.'
At the end of June last year, the group's assets in China amounted to $816 million, with developments in Shanghai, Nanjing and Beijing. Including Tianjin, GuocoChina has about 1.15 million sq m of saleable land in the four cities for development into residential, retail and commercial integrated projects.
The Tianjin deal is conditional on GuocoChina getting approvals from the Tianjin authorities to acquire the company, Tianjin Zhong Xin Ming Shi Real Estate Development Co (Tianjin Zhong Xin), which holds the land use and development rights to the site from its current shareholders Lead Mix Ltd and Reliapoint Ltd. It is also conditional on getting a new business licence from the Tianjin Administration for Industry & Commerce, and other approvals.
The proposed venture by GuocoChina will form part of the overall development of Tianjin's Lao chengxiang area by Hongkong-listed Neo-China Group (Holdings). The area is one of Tianjin's oldest residential districts with a 600-year-old history as a commercial hub.
A major city with a population of over 10 million, half of whom live in the metropolitan area, Tianjin is the economic centre of the Bohai Sea Rim area.
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