A proposed amendment to the Land Titles (Strata) Act will extend en bloc sale by majority consent to five developments not covered by current legislation - Goldhill Plaza, Goldhill Shopping Centre, Katong Plaza, Roxy Square Shopping Centre and Bukit Timah Shopping Centre.
Strata title certificates were issued for the projects but the original landowner/developer retained the title certificates and instead gave long leases - at least 850 years - to buyers of units.
Owners of such units can only do an en bloc sale with unanimous consent - and the approval of the original developer, who owns the reversionary interest in the property.
But the ministry of law proposes to allow them to proceed with an en bloc sale by majority consent.
And the original developer’s consent will not be required, because if the Strata Titles Board approves an en bloc sale, he will lose all rights to the land.
Saturday, September 1, 2007
DESPITE soaring property prices and good wage increases, inflation is expected to come in at between one and 2 per cent this year
DESPITE soaring property prices and good wage increases, inflation is expected to come in at between one and 2 per cent this year, Minister for Trade and Industry Lim Hng Kiang said yesterday in response to parliamentary questions on the Singapore economy.
While this expected inflation rate is an increase from the average annual rate of one per cent for the past three years, Mr Lim said that inflation is ’still very reasonable’ seeing that Singapore has been enjoying practically 16 quarters of growth.
‘The current cost pressures are reflective of our competitiveness and resultant strong economic growth,’ Mr Lim said, noting that the economy is projected to grow by 7 or 8 per cent this year. The growth has been apparent in both the manufacturing and services sectors. Overall unit labour cost increased by 5.8 per cent year-on-year in the first half of 2007 while unit business cost for manufacturing increased by 2.6 per cent.
Mr Lim also pointed out that the government had taken steps to combat immediate space constraints by introducing a supply of interim office space, along with HDB flats for rent. The ministry of national development has also published additional information on property prices and rents to keep the public and businesses better informed. More than 42,000 private residential units and 640,000 square metres of office space will be available by 2010, to help meet demand.
With regards to manpower, the minister explained that the government is planning to help more Singaporeans - like women and older workers - rejoin the workforce so as to benefit from the robust employment market. ‘Our focus is to create better jobs for Singaporeans and better opportunities to attract global talent,’ he said.
Mr Lim cited Singapore’s ranking this May by the World Competitiveness Yearbook as the second-most competitive economy overall among 55 countries, as showing that Singapore remains an attractive destination for investors, talent and tourists, even in the face of increased costs.
While this expected inflation rate is an increase from the average annual rate of one per cent for the past three years, Mr Lim said that inflation is ’still very reasonable’ seeing that Singapore has been enjoying practically 16 quarters of growth.
‘The current cost pressures are reflective of our competitiveness and resultant strong economic growth,’ Mr Lim said, noting that the economy is projected to grow by 7 or 8 per cent this year. The growth has been apparent in both the manufacturing and services sectors. Overall unit labour cost increased by 5.8 per cent year-on-year in the first half of 2007 while unit business cost for manufacturing increased by 2.6 per cent.
Mr Lim also pointed out that the government had taken steps to combat immediate space constraints by introducing a supply of interim office space, along with HDB flats for rent. The ministry of national development has also published additional information on property prices and rents to keep the public and businesses better informed. More than 42,000 private residential units and 640,000 square metres of office space will be available by 2010, to help meet demand.
With regards to manpower, the minister explained that the government is planning to help more Singaporeans - like women and older workers - rejoin the workforce so as to benefit from the robust employment market. ‘Our focus is to create better jobs for Singaporeans and better opportunities to attract global talent,’ he said.
Mr Lim cited Singapore’s ranking this May by the World Competitiveness Yearbook as the second-most competitive economy overall among 55 countries, as showing that Singapore remains an attractive destination for investors, talent and tourists, even in the face of increased costs.
THE fourth listed industrial real estate investment trust (Reit) - MacarthurCook Industrial Reit - is extending its investments into offices
THE fourth listed industrial real estate investment trust (Reit) - MacarthurCook Industrial Reit - is extending its investments into offices and technology parks.
MI-Reit yesterday announced that it has agreed to buy Plot 4A, International Business Park from Eurochem Corporation (a member of Tolaram Group), for $91 million.
This is a 13-storey office park building with a basement car park located in Jurong East’s International Business Park.
MI-Reit’s first investment in offices or technology parks brings it a 20 per cent exposure to the sector.
According to Jones Lang LaSalle Research’s Asia-Pacific Property Digest for Q2 2007, business park rents grew 30 per cent in the quarter while capital values grew 8 per cent.
‘The strongest rental growth of all industrial sub-sectors will be in this sub-category, principally as a result of the tight office supply situation causing a spillover effect as Central Business District tenants relocate to suburban office parks such as the International Business Park,’ said Chris Calvert, CEO of MacarthurCook Investment Managers (Asia), which manages the Reit.
Under this sale and leaseback arrangement, Eurochem - a Singapore- based company in the petrochemical sector - will sign a head lease over the entire facility for 10 years, with an option to extend for another five years.
This will start from the date of completion, scheduled for December 2009.
Mr Calvert added that the acquisition will increase the size of the portfolio from the initial value of $316.2 million at the time of listing in April, to $407.2 million upon completion of the acquisition.
MI-Reit said the purchase will extend its average weighted lease expiry duration from 6.3 years to seven.
To be funded wholly by debt, other alternative funding sources will also be considered, said the manager.
MI-Reit’s gearing level will increase from its current 8.6 per cent to 29.1 per cent, assuming 100 per cent debt financing and that there are no other acquisitions between now and settlement of the property.
MI-Reit’s initial portfolio comprised 12 industrial assets across Singapore, the largest of which is UE Technology Park, which was acquired for $115 million.
At the date of listing, the initial properties in MI-Reit had a combined value of $316.2 million.
The Reit invests primarily in industrial real estate assets in Singapore, Japan, Hong Kong, Malaysia and China.
Last month, the Reit reported a distributable income of $3.9 million for its first quarter ended June 30 - 2.9 per cent higher than the forecast $3.8 million.
Distribution per unit (DPU) also beat expectations, coming to 1.52 cents, which was 3 per cent higher than the forecast DPU of 1.47 cents.
MI-Reit yesterday announced that it has agreed to buy Plot 4A, International Business Park from Eurochem Corporation (a member of Tolaram Group), for $91 million.
This is a 13-storey office park building with a basement car park located in Jurong East’s International Business Park.
MI-Reit’s first investment in offices or technology parks brings it a 20 per cent exposure to the sector.
According to Jones Lang LaSalle Research’s Asia-Pacific Property Digest for Q2 2007, business park rents grew 30 per cent in the quarter while capital values grew 8 per cent.
‘The strongest rental growth of all industrial sub-sectors will be in this sub-category, principally as a result of the tight office supply situation causing a spillover effect as Central Business District tenants relocate to suburban office parks such as the International Business Park,’ said Chris Calvert, CEO of MacarthurCook Investment Managers (Asia), which manages the Reit.
Under this sale and leaseback arrangement, Eurochem - a Singapore- based company in the petrochemical sector - will sign a head lease over the entire facility for 10 years, with an option to extend for another five years.
This will start from the date of completion, scheduled for December 2009.
Mr Calvert added that the acquisition will increase the size of the portfolio from the initial value of $316.2 million at the time of listing in April, to $407.2 million upon completion of the acquisition.
MI-Reit said the purchase will extend its average weighted lease expiry duration from 6.3 years to seven.
To be funded wholly by debt, other alternative funding sources will also be considered, said the manager.
MI-Reit’s gearing level will increase from its current 8.6 per cent to 29.1 per cent, assuming 100 per cent debt financing and that there are no other acquisitions between now and settlement of the property.
MI-Reit’s initial portfolio comprised 12 industrial assets across Singapore, the largest of which is UE Technology Park, which was acquired for $115 million.
At the date of listing, the initial properties in MI-Reit had a combined value of $316.2 million.
The Reit invests primarily in industrial real estate assets in Singapore, Japan, Hong Kong, Malaysia and China.
Last month, the Reit reported a distributable income of $3.9 million for its first quarter ended June 30 - 2.9 per cent higher than the forecast $3.8 million.
Distribution per unit (DPU) also beat expectations, coming to 1.52 cents, which was 3 per cent higher than the forecast DPU of 1.47 cents.
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