As far as retail space is concerned, the weakening market sentiment now grabbing the headlines might well belong to another planet. Retail rents are expected to rise next year - especially in prime areas such as Orchard Road - fuelled by strong demand and limited prime space.
Jones Lang LaSalle (JLL) expects rents to rise between 4.5 and 4.8 per cent in the Orchard area, while CB Richard Ellis (CBRE) is forecasting an increase of 4-8 per cent. And rents at suburban malls could go up 2-5 per cent in 2008, says CBRE.
In Q3 2007, the Orchard area achieved about $40 to $41 per square foot (psf) per month, according to JLL. And for the same quarter, retail rents increased 3.3-3.5 per cent year on year.
With occupancy rates around 95-98 per cent in Orchard Road malls, demand is clearly alive and well.
But Pua Seck Guan, CEO of CapitaLand Retail, CapitaMall Trust Management and CapitaLand Financial, is quick to point out that any increase in rent has to be relative to increases in retailers’ takings, so as to ensure sustainable growth.
‘Sales this year, over last year, are 5-7 per cent higher due to the economy and sales productivity,’ he says. ‘Customer traffic has seen a 27 per cent increase over the past four to five years. This outweighs the rent increases.’
According to him, rent renewal rates this year are 12 per cent higher than the expired rent, which he deems reasonable owing to GDP growth and rising inflation. ‘Moving forward, we expect to see an 8-12 per cent increase over the next two to three years,’ he told BT. The leases are generally three years for specialty stores.
While the injection of new retail space next year will help pace retail rents, take-up is expected to increase with the new supply. CBRE puts new supply for 2008 at 2.57 million sq ft, thanks to upcoming shopping malls such as ION Orchard, Orchard Central and West Coast Plaza.
Consumer spending has been on the rise. According to Citibank economist, Zheng Kit Wei, private consumption rose 4.5 per cent in the first three quarters of this year, which is substantially higher than the 2.5 per cent increase last year. Retail sales are expected to remain robust in the high single digits.
‘The unemployment rate has fallen to a 10-year low of 1.7 per cent,’ says Mr Zheng. ‘Wages have risen almost 7 per cent in the first three quarters of the year, nearly double the 3.2 per cent increase last year. This has put more cash into consumers’ pockets and given them greater confidence to spend more.’
Mavis Seow, executive director of retail services for CBRE, says retail sales to date this year total $23.8 billion on the back of the hot property market, optimistic economic outlook and steady stream of tourist arrivals.
And with the launch of the Singapore Flyer and the inaugural Formula One night race next year, as well as the upcoming integrated resorts, sales are expected to keep going strong, if not improve, says Chua Yang Liang, head of research (South East Asia) for JLL.
Retailers, too, are expecting cash registers to ring into the New Year, thanks to the festive season and fat bonuses. Tan Yew Kiat, general manager of homegrown fashion label bYSI, is forecasting a sales increase about 25-30 per cent this Christmas.
bYSI, for one, plans to capitalise on the additional supply of space by launching a flagship store when Orchard Turn opens in October next year.
As for shoppers, they can look forward to new concept stores, flagship stores and new entrants to the market. This year has seen a lot of demand from retailers in terms of new brands compared with last year, says CapitaLand’s Mr Pua, who cites examples such as Cortefiel as well as new stand-alone stores like Kate Spade and Agnes B.
‘Fashion is on its way up, although I think there’s still strong growth for jewellery and watches and even healthcare and beauty products,’ he reckons. ‘This year has been particularly encouraging across the board.’
Source : Business Times - 22 Dec 2007
Showing posts with label Singapore Commercial Property. Show all posts
Showing posts with label Singapore Commercial Property. Show all posts
Sunday, December 23, 2007
Wednesday, December 12, 2007
Ion Orchard intends to launch an advertising campaign to promote the mall
Ion Orchard intends to launch an advertising campaign to promote the mall in the first quarter of next year - almost a whole year before the Orchard Road mall opens its doors to shoppers in end-2008.
For starters, the mall will run a print ad campaign in selected international publications such as the Wall Street Journal Asia and the Financial Times.
Designed to convey a mood of luxury and sophistication, the campaign will feature international models dressed in specially produced couture outfits and accessories whose design inspiration comes from the mall itself - or rather, the mall’s facade which aims to light up the building once it is up. Closer to the day of the mall’s opening, ads will also run in the local newspapers.
The mall is owned by a joint venture (JV) between Singapore-listed CapitaLand and Hong Kong’s Sun Hung Kai Properties.
‘Our new marketing campaign reflects our vision to be a world-class retail destination that will bring a truly unique retail experience to shoppers,’ said Soon Su Lin, chief executive of the JV company. ‘Even though Ion Orchard is still under construction, we are happy to be adding to the vibrancy of Orchard Road, and look forward to delighting shoppers in the near future.’
The mall also unveiled four-metre high hoardings last week at the site.
The campaign account was won by marketing communications agency DDB after its contest against six agencies.
‘I think Ion Orchard will light up Orchard Road in a bold and fashionable way,’ said David Tang, chief executive of DDB Group Singapore. ‘The campaign will have to be just as bold and fashionable.’
Ion Orchard is part of a retail-cum-residential development located at the heart of Orchard Road. When opened in end-2008, the mall will offer some 400 retail, F&B and entertainment stores. Marketing for the retail space has already begun, BT understands.
Source : Business Times - 10 Dec 2007
For starters, the mall will run a print ad campaign in selected international publications such as the Wall Street Journal Asia and the Financial Times.
Designed to convey a mood of luxury and sophistication, the campaign will feature international models dressed in specially produced couture outfits and accessories whose design inspiration comes from the mall itself - or rather, the mall’s facade which aims to light up the building once it is up. Closer to the day of the mall’s opening, ads will also run in the local newspapers.
The mall is owned by a joint venture (JV) between Singapore-listed CapitaLand and Hong Kong’s Sun Hung Kai Properties.
‘Our new marketing campaign reflects our vision to be a world-class retail destination that will bring a truly unique retail experience to shoppers,’ said Soon Su Lin, chief executive of the JV company. ‘Even though Ion Orchard is still under construction, we are happy to be adding to the vibrancy of Orchard Road, and look forward to delighting shoppers in the near future.’
The mall also unveiled four-metre high hoardings last week at the site.
The campaign account was won by marketing communications agency DDB after its contest against six agencies.
‘I think Ion Orchard will light up Orchard Road in a bold and fashionable way,’ said David Tang, chief executive of DDB Group Singapore. ‘The campaign will have to be just as bold and fashionable.’
Ion Orchard is part of a retail-cum-residential development located at the heart of Orchard Road. When opened in end-2008, the mall will offer some 400 retail, F&B and entertainment stores. Marketing for the retail space has already begun, BT understands.
Source : Business Times - 10 Dec 2007
Saturday, December 1, 2007
JTC Corporation said yesterday it has awarded two industrial sites - one at Commonwealth and the other in Jalan Tepong.
JTC Corporation said yesterday it has awarded two industrial sites - one at Commonwealth and the other in Jalan Tepong.
The 120,300 sq ft site at L1 Commonwealth Drive/Lane went to WHB Pte Ltd, which submitted the highest of 14 bids received. WHB paid $51.2 million, or $170 per square foot per plot ratio (psf ppr). The 30-year leasehold site has a 2.5 plot ratio, giving it a maximum floor area of 300,700 sq ft.
The Jalan Tepong site was awarded to EL Development, which is fully owned by Evan Lim & Co Pte Ltd. The company submitted the highest of six bids received. It paid $9.5 million, or $30 psf ppr, for the site. The 23-year leasehold site has a land area of 224,600 sq ft and 1.4 plot ratio, giving it a maximum floor area of 314,500 sq ft.
The tender for the L1 Commonwealth Drive/Lane parcel was launched on Sept 21 and closed on Nov 2. The tender for the Jalan Tepong parcel was launched on Sept 28 and closed on Nov 9.
JTC is Singapore’s biggest industrial landlord.
Source : Business Times - 30 Nov 2007
The 120,300 sq ft site at L1 Commonwealth Drive/Lane went to WHB Pte Ltd, which submitted the highest of 14 bids received. WHB paid $51.2 million, or $170 per square foot per plot ratio (psf ppr). The 30-year leasehold site has a 2.5 plot ratio, giving it a maximum floor area of 300,700 sq ft.
The Jalan Tepong site was awarded to EL Development, which is fully owned by Evan Lim & Co Pte Ltd. The company submitted the highest of six bids received. It paid $9.5 million, or $30 psf ppr, for the site. The 23-year leasehold site has a land area of 224,600 sq ft and 1.4 plot ratio, giving it a maximum floor area of 314,500 sq ft.
The tender for the L1 Commonwealth Drive/Lane parcel was launched on Sept 21 and closed on Nov 2. The tender for the Jalan Tepong parcel was launched on Sept 28 and closed on Nov 9.
JTC is Singapore’s biggest industrial landlord.
Source : Business Times - 30 Nov 2007
Monday, November 26, 2007
Malacca Centre in Raffles Place has been put up for sale
A RETAIL podium at Malacca Centre in Raffles Place has been put up for sale.
The 999-year leasehold property comprises of ground and basement floors and has direct frontages to the main road. The sellers are an investment holding company, said property firm Cushman & Wakefield, which is marketing the property.
The property has a strata titled area of about 5,000 sq ft, said Cushman & Wakefield managing director Donald Han. Market watchers estimate that it could fetch about $24 million, which works out to some $4,800 per square foot (psf).
‘There are a dearth of good retail space and a lack of retail premises for sale in Raffles Place and none offers as prime a retail road frontage or location as this,’ said Mr Han.
Malacca Centre retail podium presents the investor with an attractive cash-on-cash yield potentially in excess of 5 per cent per annum, he said.
The property is sold subject to existing tenancies.
A recent study done by Cushman & Wakefield showed that prime ground and basement retail retail rents and capital values are on the rise in Raffles Place due to the lack of supply.
For strata titled retail units, capital values have risen by 23 per cent since 12 months ago, Mr Han said.
At the nearby The Arcade - which is also strata titled - retail space recently transacted for between $4,900-$5,300 psf, Mr Han said.
Ground floor rents in Raffles Place have risen by 20 per cent in the past 12 months. Average gross rents for Raffles Place ground floor retail is now between $20 to $30 psf, while basement space is fetching between $15-25 psf.
Source : Business Times - 26 Nov 2007
The 999-year leasehold property comprises of ground and basement floors and has direct frontages to the main road. The sellers are an investment holding company, said property firm Cushman & Wakefield, which is marketing the property.
The property has a strata titled area of about 5,000 sq ft, said Cushman & Wakefield managing director Donald Han. Market watchers estimate that it could fetch about $24 million, which works out to some $4,800 per square foot (psf).
‘There are a dearth of good retail space and a lack of retail premises for sale in Raffles Place and none offers as prime a retail road frontage or location as this,’ said Mr Han.
Malacca Centre retail podium presents the investor with an attractive cash-on-cash yield potentially in excess of 5 per cent per annum, he said.
The property is sold subject to existing tenancies.
A recent study done by Cushman & Wakefield showed that prime ground and basement retail retail rents and capital values are on the rise in Raffles Place due to the lack of supply.
For strata titled retail units, capital values have risen by 23 per cent since 12 months ago, Mr Han said.
At the nearby The Arcade - which is also strata titled - retail space recently transacted for between $4,900-$5,300 psf, Mr Han said.
Ground floor rents in Raffles Place have risen by 20 per cent in the past 12 months. Average gross rents for Raffles Place ground floor retail is now between $20 to $30 psf, while basement space is fetching between $15-25 psf.
Source : Business Times - 26 Nov 2007
Four strata floors of commercial space in The Arcade (picture) were put up for sale yesterday by private owners amid an ongoing office supply crunch.
Four strata floors of commercial space in The Arcade (picture) were put up for sale yesterday by private owners amid an ongoing office supply crunch.
CB Richard Ellis (CBRE) and Jones Lang LaSalle (JLL), joint managers of the sale, are advising owners on the sale — by expression of interest — of approximately 32,120 sq m in strata area of the building.
According to CBRE and JLL, steady rentals can be expected in the short to medium term. The lease profile shows that 60 per cent of current leases will expire next year, suggesting rents could be renewed at substantially higher levels under the current tight market.
In the long term, property owners may also explore redevelopment options to maximise a potential plot ratio of 13.86, with current plot ratio at about 8.
The units in the 20-storey building in Raffles Place are a mixture of 999-year and 99-year leases. The mixed commercial and retail building consists of an office tower and three-storey retail podium with a total net lettable area of about 118,317 square feet.
Mr Colin Tan, head of consultancy and research at Chesterton International, said office prices had softened somewhat as evidenced in the recent land sales in the Marina View site.
Last week, Macquarie Global Property Advisors put in the winning bid of $779 psf per plot ratio for Land Parcel B in Marina View — about 45 per cent lower than the $1,409 psf bid it put in in September for an adjacent plot, also meant largely for office use.
“The Government has also been pushing out former government property for conversion into transitional office use. So, in the short term, the office market may be still tight, but in the medium term, it’ll definitely ease,” said Mr Tan.
The expression of interest exercise will close at 4pm on Dec 7.
Source : Today - 23 Nov 2007
CB Richard Ellis (CBRE) and Jones Lang LaSalle (JLL), joint managers of the sale, are advising owners on the sale — by expression of interest — of approximately 32,120 sq m in strata area of the building.
According to CBRE and JLL, steady rentals can be expected in the short to medium term. The lease profile shows that 60 per cent of current leases will expire next year, suggesting rents could be renewed at substantially higher levels under the current tight market.
In the long term, property owners may also explore redevelopment options to maximise a potential plot ratio of 13.86, with current plot ratio at about 8.
The units in the 20-storey building in Raffles Place are a mixture of 999-year and 99-year leases. The mixed commercial and retail building consists of an office tower and three-storey retail podium with a total net lettable area of about 118,317 square feet.
Mr Colin Tan, head of consultancy and research at Chesterton International, said office prices had softened somewhat as evidenced in the recent land sales in the Marina View site.
Last week, Macquarie Global Property Advisors put in the winning bid of $779 psf per plot ratio for Land Parcel B in Marina View — about 45 per cent lower than the $1,409 psf bid it put in in September for an adjacent plot, also meant largely for office use.
“The Government has also been pushing out former government property for conversion into transitional office use. So, in the short term, the office market may be still tight, but in the medium term, it’ll definitely ease,” said Mr Tan.
The expression of interest exercise will close at 4pm on Dec 7.
Source : Today - 23 Nov 2007
Monday, November 12, 2007
Property consultants say retail rents in Singapore are on the rise, with double-digit growth expected for prime shop units in Orchard Road and Raffles
SHOPPING, already a national pastime, is becoming even more popular, if rising retail rents and capital values are anything to go by.
Not only are the rents and values in the traditional shopping belt of Orchard Road on the up and up, but those in the business district of Raffles Place have also risen considerably.
This is good news if you are a landlord. For those aspiring to become one, shop units are an option if you have at least $500,000 lying idle in the bank.
Property consultants say retail rents in Singapore are on the rise, with double-digit growth expected for prime shop units in Orchard Road and Raffles Place.
A recent study by property consultancy Cushman & Wakefield showed that the capital values of shops in Raffles Place have risen by 23 per cent in the past two years.
Shops at The Arcade, a 77-year leasehold property in Raffles Place, were sold recently at about $1.5 million to $2.65 million, which works out to between $4,900 per sq ft (psf) and $5,300 psf.
And prices are still climbing, with asking levels now hovering at between $6,000 psf and $7,000 psf, depending on the size of the shop and its location within the building, said Mr Donald Han, the managing director of Cushman & Wakefield in Singapore.
However, before you rush out to buy one as an investment, you should know that there are very few retail units available for sale to individuals.
And those in popular malls do not come cheap.
Commercial properties are typically traded on an en bloc basis to institutional or investment companies. In any case, most are beyond the financial reach of individual or smaller investors.
‘Less than 5 per cent of the commercial stock here are strata-titled,’ said Mr Han. A strata title gives you ownership of a small piece of a bigger property. As a result, many small companies or retail operators tend to buy strata-titled shops for their own use instead of renting one.
Strata-titled retail properties can be found in buildings such as The Arcade, International Plaza right next to the Tanjong Pagar MRT station, and Tanglin Shopping Centre in Tanglin.
In the Orchard Road area, strata-titled retail properties include Far East Plaza, Lucky Plaza, Orchard Plaza and Orchard Shopping Centre.
Shop units typically range in size from just 200 sq ft to as much as 1,000 sq ft, with values starting from $500,000, said Mr Han.
Net yields can range from 3.5 per cent to as much as 5 per cent a year, depending on the property’s tenure, location, age, tenant mix, whether it is facing the road or the main concourse and so on, he said.
Some buyers might be able to buy a strata-titled unit with an existing tenancy. But shop units with a low rental rate and a long tenancy term might not fetch market prices. In contrast, a unit that is for sale with vacant possession might be able to achieve premium pricing.
Mr Han said vacant units attract both owner-occupiers as well as investors who wish to lease out the space at competitive rates, particularly in a rising market. At Far East Plaza, asking prices have increased significantly, in line with rising rents, said an agent familiar with the sale transactions there.
The highest-priced deal to date was done recently at slightly over $11,000 psf for a 269 sq ft shop, which works out to about $2.96 million. An investor bought the shop and is leasing it out to a shoe retailing business, the agent said.
Current asking prices for shops at Far East Plaza start from as low as $4,250 psf for a fifth-floor unit, which works out to around $850,000.
But a few owners of prime units there are asking for more than $10,000 psf; last year, such units could be had for $7,000 psf to $8,000 psf, the agent added.
Source: Cushman & Wakefield
Tips on buying a shop
Get a reputable agent to search for the right property in the right location. Retail units are scarce and hard to come by, and not all agents have stock.
Get a bank’s valuation first and secure financing.
Check with the management corporation to see:
1) If the seller still owes the corporation any maintenance fees; and
2) If there are upgrading plans as the new owner might have to bear the costs.
Verify what uses the premises can be put to. For instance, for food and beverage outlets or restaurants, you need to get approval from the relevant authorities. Know what you’re buying.
If the unit is tenanted, get the tenancy agreement, and check that deposits are in place and tenancy terms protecting the landlord’s interests are watertight.
Try to negotiate for a few units within the development, so that you can get a better feel for the price and perhaps work out a better deal.
Get an experienced lawyer to advise you on specific issues. For example, you will have to pay 7 per cent in good and services tax (GST) if you buy from a GST-registered vendor. One way you can offset this is by incorporating your own GST-registered company.
Get an estimate of the fit-out costs. If the unit requires renovation, make sure the purchase price and renovation budget combined are within your limits.
Source : Sunday Times - 11 Nov 2007
Not only are the rents and values in the traditional shopping belt of Orchard Road on the up and up, but those in the business district of Raffles Place have also risen considerably.
This is good news if you are a landlord. For those aspiring to become one, shop units are an option if you have at least $500,000 lying idle in the bank.
Property consultants say retail rents in Singapore are on the rise, with double-digit growth expected for prime shop units in Orchard Road and Raffles Place.
A recent study by property consultancy Cushman & Wakefield showed that the capital values of shops in Raffles Place have risen by 23 per cent in the past two years.
Shops at The Arcade, a 77-year leasehold property in Raffles Place, were sold recently at about $1.5 million to $2.65 million, which works out to between $4,900 per sq ft (psf) and $5,300 psf.
And prices are still climbing, with asking levels now hovering at between $6,000 psf and $7,000 psf, depending on the size of the shop and its location within the building, said Mr Donald Han, the managing director of Cushman & Wakefield in Singapore.
However, before you rush out to buy one as an investment, you should know that there are very few retail units available for sale to individuals.
And those in popular malls do not come cheap.
Commercial properties are typically traded on an en bloc basis to institutional or investment companies. In any case, most are beyond the financial reach of individual or smaller investors.
‘Less than 5 per cent of the commercial stock here are strata-titled,’ said Mr Han. A strata title gives you ownership of a small piece of a bigger property. As a result, many small companies or retail operators tend to buy strata-titled shops for their own use instead of renting one.
Strata-titled retail properties can be found in buildings such as The Arcade, International Plaza right next to the Tanjong Pagar MRT station, and Tanglin Shopping Centre in Tanglin.
In the Orchard Road area, strata-titled retail properties include Far East Plaza, Lucky Plaza, Orchard Plaza and Orchard Shopping Centre.
Shop units typically range in size from just 200 sq ft to as much as 1,000 sq ft, with values starting from $500,000, said Mr Han.
Net yields can range from 3.5 per cent to as much as 5 per cent a year, depending on the property’s tenure, location, age, tenant mix, whether it is facing the road or the main concourse and so on, he said.
Some buyers might be able to buy a strata-titled unit with an existing tenancy. But shop units with a low rental rate and a long tenancy term might not fetch market prices. In contrast, a unit that is for sale with vacant possession might be able to achieve premium pricing.
Mr Han said vacant units attract both owner-occupiers as well as investors who wish to lease out the space at competitive rates, particularly in a rising market. At Far East Plaza, asking prices have increased significantly, in line with rising rents, said an agent familiar with the sale transactions there.
The highest-priced deal to date was done recently at slightly over $11,000 psf for a 269 sq ft shop, which works out to about $2.96 million. An investor bought the shop and is leasing it out to a shoe retailing business, the agent said.
Current asking prices for shops at Far East Plaza start from as low as $4,250 psf for a fifth-floor unit, which works out to around $850,000.
But a few owners of prime units there are asking for more than $10,000 psf; last year, such units could be had for $7,000 psf to $8,000 psf, the agent added.
Source: Cushman & Wakefield
Tips on buying a shop
Get a reputable agent to search for the right property in the right location. Retail units are scarce and hard to come by, and not all agents have stock.
Get a bank’s valuation first and secure financing.
Check with the management corporation to see:
1) If the seller still owes the corporation any maintenance fees; and
2) If there are upgrading plans as the new owner might have to bear the costs.
Verify what uses the premises can be put to. For instance, for food and beverage outlets or restaurants, you need to get approval from the relevant authorities. Know what you’re buying.
If the unit is tenanted, get the tenancy agreement, and check that deposits are in place and tenancy terms protecting the landlord’s interests are watertight.
Try to negotiate for a few units within the development, so that you can get a better feel for the price and perhaps work out a better deal.
Get an experienced lawyer to advise you on specific issues. For example, you will have to pay 7 per cent in good and services tax (GST) if you buy from a GST-registered vendor. One way you can offset this is by incorporating your own GST-registered company.
Get an estimate of the fit-out costs. If the unit requires renovation, make sure the purchase price and renovation budget combined are within your limits.
Source : Sunday Times - 11 Nov 2007
Suburban malls across Singapore are getting multimillion-dollar facelifts in a bid to improve their bottom lines.
Suburban malls across Singapore are getting multimillion-dollar facelifts in a bid to improve their bottom lines. They hope to attract more visitors in a competitive retail environment and collect higher rents from their tenants.
Data compiled by BT shows that at least 14 suburban malls have either undergone renovation and repositioning exercises over the past year, are doing so now or plan to do so in the future.
Work on these malls is estimated to cost their various owners close to $500 million in all.
Market watchers said that with Singapore’s main shopping belt Orchard Road all set to get three new malls in a few years’ time, suburban malls have to try to differentiate themselves and become attractive alternatives to heading into town.
Experts also said that upgrading works are necessary before increasing rents at these malls, as they are away from Singapore’s key shopping belts.
‘Suburban malls will continue to play a key role in the local retail scene as they will continue to remain distinct from the downtown malls in the Orchard Road and Marina Bay areas,’ said Stephanie Ho, assistant general manager of AsiaMalls Management, which manages five malls in Singapore.
For example, AsiaMalls’ Pasir Ris mall, White Sands shopping centre, recently underwent a $25 million rebranding and expansion exercise, and is now positioning itself as an ‘active lifestyle’ mall.
AsiaMalls hopes that White Sands will cater to holiday-makers staying at chalets and families frequenting entertainment attractions in Pasir Ris and the East Coast areas - in addition to Pasir Ris residents.
Elsewhere, AsiaMalls’ Hougang Mall is also now touted as ‘a mall for the whole family’ after a $13.5 million revamp.
The company is also in the process of improving Tiong Bahru Plaza and Century Square.
Other mall operators with suburban malls in their portfolio are going down the same route. Frasers Centrepoint Trust (FCT) will reopen Anchorpoint as a ‘village mall’ once its $12 million repositioning exercise is completed by end-November.
‘It (Anchorpoint) was a little bit dated and its positioning was wrong,’ Christopher Tang, chief executive of FCT’s manager, said recently. ‘We decided to reposition it in May.’
In addition to enhanced food & beverage offerings, Anchorpoint will also offer factory outlets, he said.
Next up is Northpoint, which will undergo a $30 million asset enhancement exercise starting from the first quarter of 2008.
FCT also has similar plans for Causeway Point in Woodlands further down the road, said Mr Tang.
FCT’s parent company, Frasers Centrepoint, also hopes to start work on one of the malls in its portfolio - Valley Point - by the end of 2008. Rival trust CapitaMall Trust is not to be outdone; the trust will spend some $338 million in all for asset enhancement works at five of its malls - Lot 1 Shoppers’ Mall, IMM Building, Tampines Mall, Sembawang Shopping Centre and Jurong Entertainment Centre.
Elsewhere, Jurong Point is adding a new extension which will be ready in about a year’s time.Managers of malls where revamp works have been completed report increased foot traffic and better rents.
At White Sands, average monthly footfall increased by 33 per cent post-revamp to 800,000, while at Hougang Mall, monthly shopper traffic has increased from an average of 870,000 in 2005 to 1.2 million in 2007, AsiaMalls.
And with Anchorpoint’s repositioning exercise, rental rates have gone up about 40 per cent, said FCT’s Mr Tang.
Source : Business Times - 10 Nov 2007
Data compiled by BT shows that at least 14 suburban malls have either undergone renovation and repositioning exercises over the past year, are doing so now or plan to do so in the future.
Work on these malls is estimated to cost their various owners close to $500 million in all.
Market watchers said that with Singapore’s main shopping belt Orchard Road all set to get three new malls in a few years’ time, suburban malls have to try to differentiate themselves and become attractive alternatives to heading into town.
Experts also said that upgrading works are necessary before increasing rents at these malls, as they are away from Singapore’s key shopping belts.
‘Suburban malls will continue to play a key role in the local retail scene as they will continue to remain distinct from the downtown malls in the Orchard Road and Marina Bay areas,’ said Stephanie Ho, assistant general manager of AsiaMalls Management, which manages five malls in Singapore.
For example, AsiaMalls’ Pasir Ris mall, White Sands shopping centre, recently underwent a $25 million rebranding and expansion exercise, and is now positioning itself as an ‘active lifestyle’ mall.
AsiaMalls hopes that White Sands will cater to holiday-makers staying at chalets and families frequenting entertainment attractions in Pasir Ris and the East Coast areas - in addition to Pasir Ris residents.
Elsewhere, AsiaMalls’ Hougang Mall is also now touted as ‘a mall for the whole family’ after a $13.5 million revamp.
The company is also in the process of improving Tiong Bahru Plaza and Century Square.
Other mall operators with suburban malls in their portfolio are going down the same route. Frasers Centrepoint Trust (FCT) will reopen Anchorpoint as a ‘village mall’ once its $12 million repositioning exercise is completed by end-November.
‘It (Anchorpoint) was a little bit dated and its positioning was wrong,’ Christopher Tang, chief executive of FCT’s manager, said recently. ‘We decided to reposition it in May.’
In addition to enhanced food & beverage offerings, Anchorpoint will also offer factory outlets, he said.
Next up is Northpoint, which will undergo a $30 million asset enhancement exercise starting from the first quarter of 2008.
FCT also has similar plans for Causeway Point in Woodlands further down the road, said Mr Tang.
FCT’s parent company, Frasers Centrepoint, also hopes to start work on one of the malls in its portfolio - Valley Point - by the end of 2008. Rival trust CapitaMall Trust is not to be outdone; the trust will spend some $338 million in all for asset enhancement works at five of its malls - Lot 1 Shoppers’ Mall, IMM Building, Tampines Mall, Sembawang Shopping Centre and Jurong Entertainment Centre.
Elsewhere, Jurong Point is adding a new extension which will be ready in about a year’s time.Managers of malls where revamp works have been completed report increased foot traffic and better rents.
At White Sands, average monthly footfall increased by 33 per cent post-revamp to 800,000, while at Hougang Mall, monthly shopper traffic has increased from an average of 870,000 in 2005 to 1.2 million in 2007, AsiaMalls.
And with Anchorpoint’s repositioning exercise, rental rates have gone up about 40 per cent, said FCT’s Mr Tang.
Source : Business Times - 10 Nov 2007
Monday, November 5, 2007
SINGAPORE Land (SingLand) and its parent company United Industrial Corporation (UIC) have both reported higher third-quarter earnings.
SINGAPORE Land (SingLand) and its parent company United Industrial Corporation (UIC) have both reported higher third-quarter earnings.
For the three months ended Sept 30, SingLand posted a 30 per cent year- on-year increase in net profit to $30.1 million, on the back of a 27 per cent gain in revenue to $70.52 million. SingLand, a major office landlord, said rental rates and occupancy rates improved, which resulted in an $8.1 million or 20 per cent rise in gross rental income to $47.4 million.
UIC’s Q3 net earnings rose 43 per cent to $25.4 million. UIC was in the news earlier this week for having sold more than 100 units of its Park Natura condo in Bukit Batok since last weekend. Its Q3 revenue jumped 76 per cent to $134.8 million, due to higher sales of residential properties and revenue recognition on a percentage of completion basis, contribution from Pan Pacific Singapore hotel as well as higher rental income. ‘The residential property sales pertain to the One Amber, Grand Duchess at St Patrick’s and Northwood residential property developments, which have been fully sold,’ UIC said in its results statement.
Share of associates’ results increased by $1.2 million or 23 per cent to about $6.2 million for Q3, due mainly to higher contribution from The Sixth Avenue Residences and The Regency @ Tiong Bahru residential projects in which the group has interests of 35 per cent and 40 per cent respectively.
UIC said Q3 earnings per share rose to 1.8 cents from 1.3 cents in the corresponding period last year. Net asset value per share as at Sept 30, 2007, was $1.78, up one cent from Dec 31, 2006. Its shares eased four cents to close at $3.06 yesterday.
UIC’s net earnings for the first nine months of this year rose 40 per cent to $75.8 million. Revenue increased 51 per cent to $351.4 million.
SingLand’s Q3 EPS rose to 7.3 cents from 5.6 cents in the corresponding year-ago period. NAV per share stood at $7.45 as at Sept 30, 2007, down five cents from Dec 31, 2006.
For the first nine months of this year, SingLand’s net profit rose 29 per cent to $92.1 million on a 16 per cent rise in turnover to $184.5 million.
SingLand shares closed 35 cents lower at $9.35.
Source : Business Times - 3 Nov 2007
For the three months ended Sept 30, SingLand posted a 30 per cent year- on-year increase in net profit to $30.1 million, on the back of a 27 per cent gain in revenue to $70.52 million. SingLand, a major office landlord, said rental rates and occupancy rates improved, which resulted in an $8.1 million or 20 per cent rise in gross rental income to $47.4 million.
UIC’s Q3 net earnings rose 43 per cent to $25.4 million. UIC was in the news earlier this week for having sold more than 100 units of its Park Natura condo in Bukit Batok since last weekend. Its Q3 revenue jumped 76 per cent to $134.8 million, due to higher sales of residential properties and revenue recognition on a percentage of completion basis, contribution from Pan Pacific Singapore hotel as well as higher rental income. ‘The residential property sales pertain to the One Amber, Grand Duchess at St Patrick’s and Northwood residential property developments, which have been fully sold,’ UIC said in its results statement.
Share of associates’ results increased by $1.2 million or 23 per cent to about $6.2 million for Q3, due mainly to higher contribution from The Sixth Avenue Residences and The Regency @ Tiong Bahru residential projects in which the group has interests of 35 per cent and 40 per cent respectively.
UIC said Q3 earnings per share rose to 1.8 cents from 1.3 cents in the corresponding period last year. Net asset value per share as at Sept 30, 2007, was $1.78, up one cent from Dec 31, 2006. Its shares eased four cents to close at $3.06 yesterday.
UIC’s net earnings for the first nine months of this year rose 40 per cent to $75.8 million. Revenue increased 51 per cent to $351.4 million.
SingLand’s Q3 EPS rose to 7.3 cents from 5.6 cents in the corresponding year-ago period. NAV per share stood at $7.45 as at Sept 30, 2007, down five cents from Dec 31, 2006.
For the first nine months of this year, SingLand’s net profit rose 29 per cent to $92.1 million on a 16 per cent rise in turnover to $184.5 million.
SingLand shares closed 35 cents lower at $9.35.
Source : Business Times - 3 Nov 2007
JTC’s ready-built facilities are proving particularly popular, with net allocation up by 29 per cent quarter-on-quarter to hit 75,100 sq m
JTC’s ready-built facilities are proving particularly popular, with net allocation up by 29 per cent quarter-on-quarter to hit 75,100 sq m in the third quarter of this year.
Occupancy rates were in turn pushed up to 91 per cent from 89 per cent in the previous quarter.
JTC says: ‘Growth was broad-based, with flatted factory, stack-up factory and business park space all experiencing positive growth in net allocations.’
Commenting, Savills Singapore’s director of industrial business space Dominic Peters said demand for business park space will continue to be strong. ‘Rents could increase another 10 per cent in the next quarter to about $3.50 to $3.80 psf on average,’ he said.
Net allocation for JTC’s business park space increased 157 per cent to 1,800 sq m, with occupancy reaching 94 per cent.
Net allocation for flatted factory space was 54,000 sq m, an increase of 94 per cent over the previous quarter. The bulk of the gross allocation of flatted factory space came from the services industry, followed by general manufacturing industry and precision engineering industry.
Net allocation for stack-up factory space increased 62 per cent to 9,700 sq m.
In the same segment, net allocation in technopreneur space and standard factory space fell 88 per cent and 55 per cent respectively.
Net allocation for JTC’s prepared industrial land fell 13 per cent to 55.9 ha quarter-on-quarter.
The logistics sector share of gross allocation was up 37 per cent to 24.4 ha, with the precision engineering sector increasing 16 per cent to take 10.8 ha.
Demand for logistics space could see rents increase by 10 per cent in the next quarter, noted Mr Peters. Supply in the East is particularly tight, he added.
Net allocation for generic land remained at 22.3 ha. Local establishments formed the bulk of gross allocation of generic land at 19.1 ha (or 78 per cent). Foreign firms’ take-up of generic land increased by 11 percentage points to 5.5 ha in Q3.
Net allocation for specialised parks was 33.6 ha and accounted for 60 per cent of the total net take-up for prepared industrial land. This is a 3.4-fold increase over the 9.9 ha registered in the same period last year. Specialised parks achieved 41.6 ha in gross allocation. Of this, logistics parks contributed 43 per cent of total land take-up for specialised parks.
Source : Business Times - 3 Nov 2007
Occupancy rates were in turn pushed up to 91 per cent from 89 per cent in the previous quarter.
JTC says: ‘Growth was broad-based, with flatted factory, stack-up factory and business park space all experiencing positive growth in net allocations.’
Commenting, Savills Singapore’s director of industrial business space Dominic Peters said demand for business park space will continue to be strong. ‘Rents could increase another 10 per cent in the next quarter to about $3.50 to $3.80 psf on average,’ he said.
Net allocation for JTC’s business park space increased 157 per cent to 1,800 sq m, with occupancy reaching 94 per cent.
Net allocation for flatted factory space was 54,000 sq m, an increase of 94 per cent over the previous quarter. The bulk of the gross allocation of flatted factory space came from the services industry, followed by general manufacturing industry and precision engineering industry.
Net allocation for stack-up factory space increased 62 per cent to 9,700 sq m.
In the same segment, net allocation in technopreneur space and standard factory space fell 88 per cent and 55 per cent respectively.
Net allocation for JTC’s prepared industrial land fell 13 per cent to 55.9 ha quarter-on-quarter.
The logistics sector share of gross allocation was up 37 per cent to 24.4 ha, with the precision engineering sector increasing 16 per cent to take 10.8 ha.
Demand for logistics space could see rents increase by 10 per cent in the next quarter, noted Mr Peters. Supply in the East is particularly tight, he added.
Net allocation for generic land remained at 22.3 ha. Local establishments formed the bulk of gross allocation of generic land at 19.1 ha (or 78 per cent). Foreign firms’ take-up of generic land increased by 11 percentage points to 5.5 ha in Q3.
Net allocation for specialised parks was 33.6 ha and accounted for 60 per cent of the total net take-up for prepared industrial land. This is a 3.4-fold increase over the 9.9 ha registered in the same period last year. Specialised parks achieved 41.6 ha in gross allocation. Of this, logistics parks contributed 43 per cent of total land take-up for specialised parks.
Source : Business Times - 3 Nov 2007
Friday, November 2, 2007
‘The government does not own other commercial buildings of the same grade and category as The Atrium,’ an SLA spokeswoman said.
THE Singapore Land Authority has confirmed a BT report yesterday that it plans to sell The Atrium @ Orchard - the first state sale of a Grade A prime commercial building.
‘The government does not own other commercial buildings of the same grade and category as The Atrium,’ an SLA spokeswoman said. ‘It is not in the government’s strategic interest to continue to own a well-developed and pure commercial asset like The Atrium @ Orchard.
‘It is best to let the private sector take over its commercial utilisation. Given the buoyant market conditions, the government has decided that now is a good time to divest it with best value for the state.’
SLA has appointed CB Richard Ellis (CBRE) sole marketing consultant to advise on the planned sale. CBRE was chosen from a short list of five firms, SLA said. It clinched the job based on its competitive bid and strong track record under a two-stage selection process, SLA said without elaborating.
Market watchers suggest the other contenders were likely to have been Colliers, DTZ Debenham Tie Leung, Jones Lang LaSalle and Knight Frank.
‘On the mode of sale, the government expects CBRE to recommend a sale strategy that is consistent with the prevailing best market practices for selling large commercial buildings, to enable the state to obtain the best price for the property in a level playing field for all interested buyers,’ SLA said.
The Atrium @ Orchard, next to Plaza Singapore and above the Dhoby Ghaut MRT Station, comprises two towers of seven and 10 storeys with a total net lettable area of about 375,000 sq ft. The building’s basement carpark has 100 lots. The project received Temporary Occupation Permit in April 2002.
SLA did not indicate how much the property is worth, but in yesterday’s BT report a market observer suggested a range of $2,500 to $3,000 psf of net lettable area, which would work out to $937.5 million to $1.13 billion.
A plus point is that SLA is expected to sell The Atrium on a fresh 99-year lease.
Source : Business Times - 2 Nov 2007
‘The government does not own other commercial buildings of the same grade and category as The Atrium,’ an SLA spokeswoman said. ‘It is not in the government’s strategic interest to continue to own a well-developed and pure commercial asset like The Atrium @ Orchard.
‘It is best to let the private sector take over its commercial utilisation. Given the buoyant market conditions, the government has decided that now is a good time to divest it with best value for the state.’
SLA has appointed CB Richard Ellis (CBRE) sole marketing consultant to advise on the planned sale. CBRE was chosen from a short list of five firms, SLA said. It clinched the job based on its competitive bid and strong track record under a two-stage selection process, SLA said without elaborating.
Market watchers suggest the other contenders were likely to have been Colliers, DTZ Debenham Tie Leung, Jones Lang LaSalle and Knight Frank.
‘On the mode of sale, the government expects CBRE to recommend a sale strategy that is consistent with the prevailing best market practices for selling large commercial buildings, to enable the state to obtain the best price for the property in a level playing field for all interested buyers,’ SLA said.
The Atrium @ Orchard, next to Plaza Singapore and above the Dhoby Ghaut MRT Station, comprises two towers of seven and 10 storeys with a total net lettable area of about 375,000 sq ft. The building’s basement carpark has 100 lots. The project received Temporary Occupation Permit in April 2002.
SLA did not indicate how much the property is worth, but in yesterday’s BT report a market observer suggested a range of $2,500 to $3,000 psf of net lettable area, which would work out to $937.5 million to $1.13 billion.
A plus point is that SLA is expected to sell The Atrium on a fresh 99-year lease.
Source : Business Times - 2 Nov 2007
Wednesday, October 31, 2007
ACER Computer International is selling its building at International Business Park in Jurong East.
ACER Computer International is selling its building at International Business Park in Jurong East.
The property is said to be worth about $75-80 million, or $337 to $360 psf of existing net lettable area (NLA).
The property, a high- tech business park development, was completed about 10 years ago on a site leased from JTC Corp for 30 years with an option to renew for a further 30 years.
Acer is paying JTC an annual land rent of $715,469, with an escalation of 4 per cent a year (as at Q3 2007). Acer Building’s new owner will likely pay JTC a slightly higher land rent each year.
Acer Computer (Singapore) will lease back 51,548 sq ft in the building - about 23 per cent of the property’s 222,510 sq ft NLA - from the new owner.
BT understands that the net property yield to the new owner can work out to around 6 to 7 per cent, based on a $75-80 million price.
DTZ Debenham Tie Leung is marketing Acer Building through an expression of interest exercise.
Source : Business Times - 31 Oct 2007
The property is said to be worth about $75-80 million, or $337 to $360 psf of existing net lettable area (NLA).
The property, a high- tech business park development, was completed about 10 years ago on a site leased from JTC Corp for 30 years with an option to renew for a further 30 years.
Acer is paying JTC an annual land rent of $715,469, with an escalation of 4 per cent a year (as at Q3 2007). Acer Building’s new owner will likely pay JTC a slightly higher land rent each year.
Acer Computer (Singapore) will lease back 51,548 sq ft in the building - about 23 per cent of the property’s 222,510 sq ft NLA - from the new owner.
BT understands that the net property yield to the new owner can work out to around 6 to 7 per cent, based on a $75-80 million price.
DTZ Debenham Tie Leung is marketing Acer Building through an expression of interest exercise.
Source : Business Times - 31 Oct 2007
Friday, October 26, 2007
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run mall
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run malls in Singapore.
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
'Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,' said Linda Kwan, the mall's general manager . 'Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.'
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
'Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,' said Linda Kwan, the mall's general manager . 'Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.'
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run
PARAGON Shopping Centre has clinched two awards in Shopping Centre Scorecard, an annual national industry rating scheme which recognises well-run malls in Singapore.
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
‘Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,’ said Linda Kwan, the mall’s general manager . ‘Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.’
Source : Business Times - 25 Oct 2007
Paragon, which is fully owned by Singapore Press Holdings Ltd (SPH), emerged tops in two of the three categories - best efforts in advertising & promotions and tenant relationships.
The results were based on votes by retailers. The contest is organised by the Singapore Retailers Association.
This is the second year the mall has won the Shopping Centre Scorecard. Last year, it won for best efforts in maintaining its premises, the third category.
Paragon, which now enjoys full occupancy, is positioned as an upscale fashion and accessories mall. The mall is home to many international fashion designer names such as Prada, Gucci, Burberry and Versace.
‘Good mall management is a synergy of getting the right tenant mix and increasing shopper traffic, apart from handling ongoing building maintenance,’ said Linda Kwan, the mall’s general manager . ‘Cultivating a good working relationship with our tenants is a big factor in our success. Coupled with strong brand building and proactive A&P programmes, our efforts in mall management would further boost shopper traffic and sales for the mutual benefit of all.’
Source : Business Times - 25 Oct 2007
THE public tender for an industrial site at Sin Ming Lane has closed with the top bid of $68.9 million put in by MV Land Pte Ltd.
THE public tender for an industrial site at Sin Ming Lane has closed with the top bid of $68.9 million put in by MV Land Pte Ltd.
Based on land area of about 5.13 ha and a plot ratio of 2.5, the unit price of the parcel works out to about $50 per square foot per plot ratio (psf ppr).
The parcel was the first of the two industrial sites tendered under the confirmed list for the second-half 2007 Government Industrial Land Sales programme. The other site on the confirmed list is at Jalan Tepong.
The tender for the Sin Ming Lane site closed yesterday with five bids received by the Urban Redevelopment Authority.
The second highest bid of $65.4 million - about 5 per cent lower than MV Land’s bid - came from Soon Lee Land Pte Ltd.
This should come as some relief for MV Land, which through associate company Eastpoint Development, recently outbid EL Development for an industrial site at Kaki Bukit Road 3 by 58 per cent to pay $72 psf ppr - the highest-ever unit land price for a 30-year leasehold industrial plot.
Eastpoint Development is controlled by Lim Kim Hong and Lim Huixing.
The top bid of $50 psf ppr for the Sing Ming Lane site is ‘reasonable’, said Savills Singapore’s director of industrial business space Dominic Peters. ‘The market for such properties has gone up about 15 per cent in the last six months.’
The site is zoned Business 1 and can be used for clean and light industrial use. Mr Peters expects that the developer will want to build a ramp-up facility. A possible use could be a service centre, he said.
The breakeven price for a project could be around $220 psf, which would mean it could be sold for $250-$280 psf, he reckons. ‘Similar developments are already selling for between $260-$280 psf.’
A decision on the award of the tender will be made after the bids have been evaluated by URA.
MV Land and Eastpoint Development have been hot on the acquisition trail this year, bidding for - though not clinching - a commercial site next to HDB Hub in Toa Payoh, a residential site near Potong Pasir MRT Station and the maiden transitional office site next to Newton MRT Station.
Source : Business Times - 25 Oct 2007
Based on land area of about 5.13 ha and a plot ratio of 2.5, the unit price of the parcel works out to about $50 per square foot per plot ratio (psf ppr).
The parcel was the first of the two industrial sites tendered under the confirmed list for the second-half 2007 Government Industrial Land Sales programme. The other site on the confirmed list is at Jalan Tepong.
The tender for the Sin Ming Lane site closed yesterday with five bids received by the Urban Redevelopment Authority.
The second highest bid of $65.4 million - about 5 per cent lower than MV Land’s bid - came from Soon Lee Land Pte Ltd.
This should come as some relief for MV Land, which through associate company Eastpoint Development, recently outbid EL Development for an industrial site at Kaki Bukit Road 3 by 58 per cent to pay $72 psf ppr - the highest-ever unit land price for a 30-year leasehold industrial plot.
Eastpoint Development is controlled by Lim Kim Hong and Lim Huixing.
The top bid of $50 psf ppr for the Sing Ming Lane site is ‘reasonable’, said Savills Singapore’s director of industrial business space Dominic Peters. ‘The market for such properties has gone up about 15 per cent in the last six months.’
The site is zoned Business 1 and can be used for clean and light industrial use. Mr Peters expects that the developer will want to build a ramp-up facility. A possible use could be a service centre, he said.
The breakeven price for a project could be around $220 psf, which would mean it could be sold for $250-$280 psf, he reckons. ‘Similar developments are already selling for between $260-$280 psf.’
A decision on the award of the tender will be made after the bids have been evaluated by URA.
MV Land and Eastpoint Development have been hot on the acquisition trail this year, bidding for - though not clinching - a commercial site next to HDB Hub in Toa Payoh, a residential site near Potong Pasir MRT Station and the maiden transitional office site next to Newton MRT Station.
Source : Business Times - 25 Oct 2007
Wednesday, October 24, 2007
JURONG Point, which is set to be Singapore’s largest suburban mall, says its new extension is already 70 per cent taken up more than a year ahead
JURONG Point, which is set to be Singapore’s largest suburban mall, says its new extension is already 70 per cent taken up more than a year ahead of the wing’s completion.
One of the main tenants, supermarket retailer NTUC FairPrice, will open a FairPrice Xtra, its hypermarket brand.
It will take up more than 70,000 sq ft on the third floor of the new wing, said the mall’s development and marketing manager, Starmall Property Management.
The first FairPrice Xtra - a 77,000 sq ft outlet - opened late last year in Ang Mo Kio Hub. The second one is in Hougang Point.
Another anchor tenant is Popular Book Company, an existing tenant which has agreed to double its retail space and relocate to a unit of about 18,000 sq ft. It will also open a Harris bookstore of more than 8,000 sq ft in the new wing.
Department store Yue Hwa Chinese Products, which has three outlets in Hong Kong, will set up a 5,000 sq ft shop in the mall. It now has one store in Singapore, in Chinatown.
Property consultancy Knight Frank’s deputy managing director, Mr Danny Yeo, said the good take-up is expected as there is a dearth of good-quality suburban malls. ‘There is very strong interest in suburban malls, particularly large ones near MRT stations, where there is a lot of transient traffic.’
Analysts say rents at Jurong Point could be $11.50 to $12 per sq ft on average.
Opened in 1995, Jurong Point in Jurong West has 220 tenants occupying 410,000 sq ft of lettable area. The new wing - slated to be opened before Christmas next year - has 290,000 sq ft, of which 70 per cent has been leased out.
The combined 700,000 sq ft enlarged mall will be the largest suburban shopping centre in Singapore. It is part of a $720 million integrated project, which includes an air-conditioned bus interchange and a 610-unit condominium above the new wing.
The 99-year leasehold The Centris was released in late September last year and was fully sold by May.
Jurong Point will also have about 43,000 sq ft of non-profit space for charities and other similar bodies, which will pay a service charge, instead of market rents.
Under a government scheme, Jurong Point is granted extra lettable space - which it will use for a 24-hour eatery and a medical centre - in return for the donation of non-profit space.
Source : Straits Times - 23 October 2007
One of the main tenants, supermarket retailer NTUC FairPrice, will open a FairPrice Xtra, its hypermarket brand.
It will take up more than 70,000 sq ft on the third floor of the new wing, said the mall’s development and marketing manager, Starmall Property Management.
The first FairPrice Xtra - a 77,000 sq ft outlet - opened late last year in Ang Mo Kio Hub. The second one is in Hougang Point.
Another anchor tenant is Popular Book Company, an existing tenant which has agreed to double its retail space and relocate to a unit of about 18,000 sq ft. It will also open a Harris bookstore of more than 8,000 sq ft in the new wing.
Department store Yue Hwa Chinese Products, which has three outlets in Hong Kong, will set up a 5,000 sq ft shop in the mall. It now has one store in Singapore, in Chinatown.
Property consultancy Knight Frank’s deputy managing director, Mr Danny Yeo, said the good take-up is expected as there is a dearth of good-quality suburban malls. ‘There is very strong interest in suburban malls, particularly large ones near MRT stations, where there is a lot of transient traffic.’
Analysts say rents at Jurong Point could be $11.50 to $12 per sq ft on average.
Opened in 1995, Jurong Point in Jurong West has 220 tenants occupying 410,000 sq ft of lettable area. The new wing - slated to be opened before Christmas next year - has 290,000 sq ft, of which 70 per cent has been leased out.
The combined 700,000 sq ft enlarged mall will be the largest suburban shopping centre in Singapore. It is part of a $720 million integrated project, which includes an air-conditioned bus interchange and a 610-unit condominium above the new wing.
The 99-year leasehold The Centris was released in late September last year and was fully sold by May.
Jurong Point will also have about 43,000 sq ft of non-profit space for charities and other similar bodies, which will pay a service charge, instead of market rents.
Under a government scheme, Jurong Point is granted extra lettable space - which it will use for a 24-hour eatery and a medical centre - in return for the donation of non-profit space.
Source : Straits Times - 23 October 2007
Wednesday, October 10, 2007
BUSINESS space provider Ascendas will build and manage a new $98 million development in International Business Park (IBP) in Singapore
BUSINESS space provider Ascendas will build and manage a new $98 million development in International Business Park (IBP) in Singapore, the company said yesterday. It was awarded the contract for the development by industrial landlord JTC Corporation.
When completed by the end of 2009, the development will have close to 42,000 square metres of high-tech space to help meet the market demand for high-quality business space, which is in short supply at the moment.
The proposed business park development will have two 12-storey blocks connected by sky bridges. ‘It will offer emerging high-tech, high value-added industries and knowledge-intensive businesses a high-quality working environment with reliable infrastructure support,’ Ascendas said in a statement.
To create vibrancy and ‘life’ in IBP, the project will inject a good mix of food court, F&B outlets, alfresco dining, childcare services, self-service banking lobby and convenience stores.
Sky gardens and regular lunchtime events and art exhibitions will be present to inject the concept of ‘play’ into the development and cater to the larger community within IBP.
’We believe that this landmark development will contribute to the success of IBP and its unique elements will create vibrancy and enhance the work-play environment,’ said Thomas Teo, chief executive of Ascendas Land Singapore.
The development will also incorporate ‘green’ elements, he said.
The project will be energy efficient, incorporating extensive green features such as a feature roof for solar panels. These are expected to improve energy efficiency by 30 per cent, generating annual savings of about $250,000.
Upon completion of the project, Ascendas will manage the development, including all aspects of project management, marketing, lease management, property management, advertising and corporate services. The company also currently manages other projects within IBP.
Source : Business Times - 9 Oct 2007
When completed by the end of 2009, the development will have close to 42,000 square metres of high-tech space to help meet the market demand for high-quality business space, which is in short supply at the moment.
The proposed business park development will have two 12-storey blocks connected by sky bridges. ‘It will offer emerging high-tech, high value-added industries and knowledge-intensive businesses a high-quality working environment with reliable infrastructure support,’ Ascendas said in a statement.
To create vibrancy and ‘life’ in IBP, the project will inject a good mix of food court, F&B outlets, alfresco dining, childcare services, self-service banking lobby and convenience stores.
Sky gardens and regular lunchtime events and art exhibitions will be present to inject the concept of ‘play’ into the development and cater to the larger community within IBP.
’We believe that this landmark development will contribute to the success of IBP and its unique elements will create vibrancy and enhance the work-play environment,’ said Thomas Teo, chief executive of Ascendas Land Singapore.
The development will also incorporate ‘green’ elements, he said.
The project will be energy efficient, incorporating extensive green features such as a feature roof for solar panels. These are expected to improve energy efficiency by 30 per cent, generating annual savings of about $250,000.
Upon completion of the project, Ascendas will manage the development, including all aspects of project management, marketing, lease management, property management, advertising and corporate services. The company also currently manages other projects within IBP.
Source : Business Times - 9 Oct 2007
Tuesday, October 9, 2007
A PROPOSED building in Sin Ming for funeral parlours has raised protests
A PROPOSED building in Sin Ming for funeral parlours has raised protests among some of the area’s residents, who say their neighbourhood already has too many of them.
They told Transport Minister Raymond Lim during a dialogue yesterday that placing it near their residential blocks is not ideal, taking into account traditional superstitions which associate death and dying with bad luck.
Some also feared a drop in the value of their properties.
The site for the proposed building is an empty plot next to Bright Hill Temple. It is near Ai Tong School and residential areas, both HDB blocks and private condominiums.
The spirited debate on the issue dominated the 90-minute dialogue, held after a three-hour ministerial visit of the Thomson division by Mr Lim. He was accompanied by Bishan-Toa Payoh GRC MPs. including Mr Hri Kumar, the MP for the neighbourhood.
They visited hawkers and residents, and Mr Lim launched the Community Engagement Programme to bring Thomson schools and residents closer together through activities like ceramic workshops.
At the dialogue, at least seven people, out of a dozen or so who raised various issues, took to the microphone to express their dismay. They questioned the need for the building, given the area’s many funeral parlours.
‘Are we now turning the estate into a funeral hub?’ asked Dr K. Premarani, secretary of Sin Ming Garden Residents Committee, prompting a burst of laughter.
The Yellow Pages website shows at least five funeral parlours in Sin Ming.
Dr Premarani also said she was disappointed after residents held a round of talks with the Urban Redevelopment Authority recently.
She said they were told the building would look like ‘Disneyland’, with a good-looking facade. It seemed the URA had made up its mind to go ahead with the project, she added.
However, Mr Kumar, who was involved in the discussions between residents and the URA, stressed that a decision had yet to be made.
‘The dialogue is still continuing,’ he told reporters after the session with residents, adding that residents’ feedback will be considered and it is a ‘healthy sign’.
During the discussion with residents, he said as he understands it, there was no ‘Disneyland concept’ but rather, the building would look ‘dignified’.
Mr Kumar also pointed out that a piece of land beside the building at issue will be the site of light industrial development in the future.
These industrial buildings would block the funeral parlour from residents’ view, he said.
Operators of funeral parlours prefer to be located in the central area to be accessible to bereaved families and their friends.
However, residents at the dialogue countered this, saying Sin Ming does not have an MRT station and is therefore not conveniently located.
Responding to their concerns, Mr Lim said the URA does not have a closed mind, and is still taking in feedback.
However, he warned residents to guard against what he called the Nimby - Not In My Back Yard - approach.
He related how a resident had asked the Land Transport Authority for a bus stop near his home, to make travelling more convenient. However, he was quick to add that the bus stop should not be outside his block of flats.
There are therefore many different interests, and these must be considered, Mr Lim added.
‘We have to balance all these things,’ he said, calling it part and parcel of living in a small, complex city like Singapore.
Source : Straits Times - 8 Oct 2007
They told Transport Minister Raymond Lim during a dialogue yesterday that placing it near their residential blocks is not ideal, taking into account traditional superstitions which associate death and dying with bad luck.
Some also feared a drop in the value of their properties.
The site for the proposed building is an empty plot next to Bright Hill Temple. It is near Ai Tong School and residential areas, both HDB blocks and private condominiums.
The spirited debate on the issue dominated the 90-minute dialogue, held after a three-hour ministerial visit of the Thomson division by Mr Lim. He was accompanied by Bishan-Toa Payoh GRC MPs. including Mr Hri Kumar, the MP for the neighbourhood.
They visited hawkers and residents, and Mr Lim launched the Community Engagement Programme to bring Thomson schools and residents closer together through activities like ceramic workshops.
At the dialogue, at least seven people, out of a dozen or so who raised various issues, took to the microphone to express their dismay. They questioned the need for the building, given the area’s many funeral parlours.
‘Are we now turning the estate into a funeral hub?’ asked Dr K. Premarani, secretary of Sin Ming Garden Residents Committee, prompting a burst of laughter.
The Yellow Pages website shows at least five funeral parlours in Sin Ming.
Dr Premarani also said she was disappointed after residents held a round of talks with the Urban Redevelopment Authority recently.
She said they were told the building would look like ‘Disneyland’, with a good-looking facade. It seemed the URA had made up its mind to go ahead with the project, she added.
However, Mr Kumar, who was involved in the discussions between residents and the URA, stressed that a decision had yet to be made.
‘The dialogue is still continuing,’ he told reporters after the session with residents, adding that residents’ feedback will be considered and it is a ‘healthy sign’.
During the discussion with residents, he said as he understands it, there was no ‘Disneyland concept’ but rather, the building would look ‘dignified’.
Mr Kumar also pointed out that a piece of land beside the building at issue will be the site of light industrial development in the future.
These industrial buildings would block the funeral parlour from residents’ view, he said.
Operators of funeral parlours prefer to be located in the central area to be accessible to bereaved families and their friends.
However, residents at the dialogue countered this, saying Sin Ming does not have an MRT station and is therefore not conveniently located.
Responding to their concerns, Mr Lim said the URA does not have a closed mind, and is still taking in feedback.
However, he warned residents to guard against what he called the Nimby - Not In My Back Yard - approach.
He related how a resident had asked the Land Transport Authority for a bus stop near his home, to make travelling more convenient. However, he was quick to add that the bus stop should not be outside his block of flats.
There are therefore many different interests, and these must be considered, Mr Lim added.
‘We have to balance all these things,’ he said, calling it part and parcel of living in a small, complex city like Singapore.
Source : Straits Times - 8 Oct 2007
Robinson’s and Isetan
DEPARTMENT stores like Robinson’s and Isetan may have been the retail giants of yesteryear but they need to reinvent themselves in order to stay relevant to consumers and mall owners.
If their sales figures cannot keep up with rising rents, then they must find some way to become more productive, said CapitaLand Retail chief executive Pua Seck Guan yesterday.
He said department stores pay far less in rentals than speciality stores, which have shot up in number and popularity in recent years.
Department stores generally pay less rent on a per sq ft (psf) basis as they take up large spaces.
They are charged about $5 psf to $7 psf per month, Mr Pua said. Yet smaller fashion boutiques can pay over $20 psf on average.
Mr Pua, who was speaking on the sidelines of the CapitaLand International Advisory Forum, was responding to comments from Robinson chief executive John Cheston earlier this week.
Mr Cheston had told The Straits Times that department stores are now facing more challenges as new malls shun them in favour of smaller speciality stores paying higher rents.
He said department stores are being squeezed by landlords for higher rents even though they cannot afford to pay them.
CapitaLand gave its side of the story yesterday. The company - one of Singapore’s biggest mall landlords, with Plaza Singapura and Tampines Mall under its belt - had said it will not put a department store in its newest mall, Ion Orchard.
Mr Pua said this was because mall owners have their own problems, as land and property prices soar.
CapitaLand was ‘prepared to pay above $1 billion for the Ion Orchard site’, he said. But he added that at that level, ‘we cannot afford to have a department store pay us $5 psf to $7 psf’ monthly. This ‘cannot match the land value’.
‘Even supermarkets and food courts today are getting more productive and paying more in rents,’ he said. They easily rack up sales of $100 psf - double that of department stores - and pay double the rent, too, Mr Pua added.
Department stores have become less relevant especially in suburban malls like Tampines Mall and Junction 8, he said.
‘I would argue that even if I shut down the anchor tenants, I would still have the same level of traffic’ in those malls - up to two million customers a month.
But he was quick to praise department stores like Robinson’s for adapting quickly by bagging new brands and opening stores.
Indeed, Macquarie Meag Prime Reit, which owns Wisma Atria and Ngee Ann City, said the department stores in its malls have been an important pillar.
The lasting popularity of Isetan and Takashimaya is a testament to their solid branding and constant reinvention of their extensive product offerings, it said.
If their sales figures cannot keep up with rising rents, then they must find some way to become more productive, said CapitaLand Retail chief executive Pua Seck Guan yesterday.
He said department stores pay far less in rentals than speciality stores, which have shot up in number and popularity in recent years.
Department stores generally pay less rent on a per sq ft (psf) basis as they take up large spaces.
They are charged about $5 psf to $7 psf per month, Mr Pua said. Yet smaller fashion boutiques can pay over $20 psf on average.
Mr Pua, who was speaking on the sidelines of the CapitaLand International Advisory Forum, was responding to comments from Robinson chief executive John Cheston earlier this week.
Mr Cheston had told The Straits Times that department stores are now facing more challenges as new malls shun them in favour of smaller speciality stores paying higher rents.
He said department stores are being squeezed by landlords for higher rents even though they cannot afford to pay them.
CapitaLand gave its side of the story yesterday. The company - one of Singapore’s biggest mall landlords, with Plaza Singapura and Tampines Mall under its belt - had said it will not put a department store in its newest mall, Ion Orchard.
Mr Pua said this was because mall owners have their own problems, as land and property prices soar.
CapitaLand was ‘prepared to pay above $1 billion for the Ion Orchard site’, he said. But he added that at that level, ‘we cannot afford to have a department store pay us $5 psf to $7 psf’ monthly. This ‘cannot match the land value’.
‘Even supermarkets and food courts today are getting more productive and paying more in rents,’ he said. They easily rack up sales of $100 psf - double that of department stores - and pay double the rent, too, Mr Pua added.
Department stores have become less relevant especially in suburban malls like Tampines Mall and Junction 8, he said.
‘I would argue that even if I shut down the anchor tenants, I would still have the same level of traffic’ in those malls - up to two million customers a month.
But he was quick to praise department stores like Robinson’s for adapting quickly by bagging new brands and opening stores.
Indeed, Macquarie Meag Prime Reit, which owns Wisma Atria and Ngee Ann City, said the department stores in its malls have been an important pillar.
The lasting popularity of Isetan and Takashimaya is a testament to their solid branding and constant reinvention of their extensive product offerings, it said.
THE Ministry of Health (MOH) is building a regional hospital in Yishun to better serve residents in the northern region of Singapore.
THE Ministry of Health (MOH) is building a regional hospital in Yishun to better serve residents in the northern region of Singapore.
Spanning over 3.4 hectares, the 550-bed hospital will offer a comprehensive range of medical and healthcare services. The new public sector hospital will be named Khoo Teck Puat Hospital, following the promise of a donation of $125 million from the family of the late banker and philanthropist.
A new entity, KTPH Pte Ltd has been incorporated under MOH Holdings to own and operate Khoo Teck Puat Hospital.
A board of directors, chaired by Jennie Chua, president and CEO of The Ascott Group, has been appointed to guide the strategic direction of Khoo Teck Puat Hospital, a ministry statement said.
The board will ensure that the hospital is managed well with strong corporate governance to achieve financial sustainability, service excellence, and an active programme of development and innovation so that it can deliver on its mission of being a hassle-free and patient-centric hospital, it added.
MOH also noted that Mavis Khoo, representing the Khoo Teck Puat Foundation, has agreed to serve as a member of the board.
Khoo Teck Puat Hospital will be run by the existing team running Alexandra Hospital and will continue to be led by Liak Teng Lit, chief executive officer.
The incorporation of the hospital provides the team with the opportunity to try out innovative models of care delivery and coordination, as well as eliminate wastage that stands in the way of efficiency, with a view to improving healthcare for Singaporeans.
Source : Business Times - 8 Oct 2007
Spanning over 3.4 hectares, the 550-bed hospital will offer a comprehensive range of medical and healthcare services. The new public sector hospital will be named Khoo Teck Puat Hospital, following the promise of a donation of $125 million from the family of the late banker and philanthropist.
A new entity, KTPH Pte Ltd has been incorporated under MOH Holdings to own and operate Khoo Teck Puat Hospital.
A board of directors, chaired by Jennie Chua, president and CEO of The Ascott Group, has been appointed to guide the strategic direction of Khoo Teck Puat Hospital, a ministry statement said.
The board will ensure that the hospital is managed well with strong corporate governance to achieve financial sustainability, service excellence, and an active programme of development and innovation so that it can deliver on its mission of being a hassle-free and patient-centric hospital, it added.
MOH also noted that Mavis Khoo, representing the Khoo Teck Puat Foundation, has agreed to serve as a member of the board.
Khoo Teck Puat Hospital will be run by the existing team running Alexandra Hospital and will continue to be led by Liak Teng Lit, chief executive officer.
The incorporation of the hospital provides the team with the opportunity to try out innovative models of care delivery and coordination, as well as eliminate wastage that stands in the way of efficiency, with a view to improving healthcare for Singaporeans.
Source : Business Times - 8 Oct 2007
Saturday, October 6, 2007
Robinson’s and Isetan may have been the retail giants of yesteryear but they need to reinvent themselves to reinvent themselves in order to stay relev
DEPARTMENT stores like Robinson’s and Isetan may have been the retail giants of yesteryear but they need to reinvent themselves in order to stay relevant to consumers and mall owners.
If their sales figures cannot keep up with rising rents, then they must find some way to become more productive, said CapitaLand Retail chief executive Pua Seck Guan yesterday.
He said department stores pay far less in rentals than speciality stores, which have shot up in number and popularity in recent years.
Department stores generally pay less rent on a per sq ft (psf) basis as they take up large spaces.
They are charged about $5 psf to $7 psf per month, Mr Pua said. Yet smaller fashion boutiques can pay over $20 psf on average.
Mr Pua, who was speaking on the sidelines of the CapitaLand International Advisory Forum, was responding to comments from Robinson chief executive John Cheston earlier this week.
Mr Cheston had told The Straits Times that department stores are now facing more challenges as new malls shun them in favour of smaller speciality stores paying higher rents.
He said department stores are being squeezed by landlords for higher rents even though they cannot afford to pay them.
CapitaLand gave its side of the story yesterday. The company - one of Singapore’s biggest mall landlords, with Plaza Singapura and Tampines Mall under its belt - had said it will not put a department store in its newest mall, Ion Orchard.
Mr Pua said this was because mall owners have their own problems, as land and property prices soar.
CapitaLand was ‘prepared to pay above $1 billion for the Ion Orchard site’, he said. But he added that at that level, ‘we cannot afford to have a department store pay us $5 psf to $7 psf’ monthly. This ‘cannot match the land value’.
‘Even supermarkets and food courts today are getting more productive and paying more in rents,’ he said. They easily rack up sales of $100 psf - double that of department stores - and pay double the rent, too, Mr Pua added.
Department stores have become less relevant especially in suburban malls like Tampines Mall and Junction 8, he said.
‘I would argue that even if I shut down the anchor tenants, I would still have the same level of traffic’ in those malls - up to two million customers a month.
But he was quick to praise department stores like Robinson’s for adapting quickly by bagging new brands and opening stores.
Indeed, Macquarie Meag Prime Reit, which owns Wisma Atria and Ngee Ann City, said the department stores in its malls have been an important pillar.
The lasting popularity of Isetan and Takashimaya is a testament to their solid branding and constant reinvention of their extensive product offerings, it said.
Source : Straits Times - 6 Oct 2007
If their sales figures cannot keep up with rising rents, then they must find some way to become more productive, said CapitaLand Retail chief executive Pua Seck Guan yesterday.
He said department stores pay far less in rentals than speciality stores, which have shot up in number and popularity in recent years.
Department stores generally pay less rent on a per sq ft (psf) basis as they take up large spaces.
They are charged about $5 psf to $7 psf per month, Mr Pua said. Yet smaller fashion boutiques can pay over $20 psf on average.
Mr Pua, who was speaking on the sidelines of the CapitaLand International Advisory Forum, was responding to comments from Robinson chief executive John Cheston earlier this week.
Mr Cheston had told The Straits Times that department stores are now facing more challenges as new malls shun them in favour of smaller speciality stores paying higher rents.
He said department stores are being squeezed by landlords for higher rents even though they cannot afford to pay them.
CapitaLand gave its side of the story yesterday. The company - one of Singapore’s biggest mall landlords, with Plaza Singapura and Tampines Mall under its belt - had said it will not put a department store in its newest mall, Ion Orchard.
Mr Pua said this was because mall owners have their own problems, as land and property prices soar.
CapitaLand was ‘prepared to pay above $1 billion for the Ion Orchard site’, he said. But he added that at that level, ‘we cannot afford to have a department store pay us $5 psf to $7 psf’ monthly. This ‘cannot match the land value’.
‘Even supermarkets and food courts today are getting more productive and paying more in rents,’ he said. They easily rack up sales of $100 psf - double that of department stores - and pay double the rent, too, Mr Pua added.
Department stores have become less relevant especially in suburban malls like Tampines Mall and Junction 8, he said.
‘I would argue that even if I shut down the anchor tenants, I would still have the same level of traffic’ in those malls - up to two million customers a month.
But he was quick to praise department stores like Robinson’s for adapting quickly by bagging new brands and opening stores.
Indeed, Macquarie Meag Prime Reit, which owns Wisma Atria and Ngee Ann City, said the department stores in its malls have been an important pillar.
The lasting popularity of Isetan and Takashimaya is a testament to their solid branding and constant reinvention of their extensive product offerings, it said.
Source : Straits Times - 6 Oct 2007
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