S'pore draws global green investors
Accession to Kyoto Protocol and country's financial standing proving to be plus factors
(SINGAPORE) International companies looking to fund projects to cut greenhouse gas emissions are coming to Singapore to take advantage of the country's accession to the Kyoto Protocol and its prominence as a financial centre.
"We see substantial potential for the South-east Asia carbon market. It has the largest growth potential after China and is on par with India.'
- EcoSecurities' Agus Sari
Among them are New York-listed energy firm AES Corp and London-listed EcoSecurities, which specialises in sourcing and trading carbon credits.
AES will spend US$10 billion worldwide over the next five to 10 years on projects to harness alternative energy and reduce greenhouse gases. Industry sources say that about US$100 million of this could flow into Singapore.
EcoSecurities, with a global fund of 50 million euros (S$101.2 million), will set up a Singapore office within the next few months, says its South-east Asia regional director Agus Sari.
Singapore's accession to the Kyoto Protocol in March last year means that qualifying projects that cut greenhouse gases like carbon dioxide - by improving energy efficiency or switching to 'clean' alternatives such as solar power - can earn 'carbon credits'.
These credits or Certified Emission Reductions (CERs) can be sold in the international market. CERs from developing countries were worth US$2.4 billion in the first three quarters of 2006, according to the World Bank's State of the Carbon Market report. Asia excluding China and India accounted for 9 per cent of this.
'We see substantial potential for the South-east Asia carbon market. It has the largest growth potential after China and is on par with India,' said Mr Sari, who believes Singapore can be the region's carbon financial centre.
Still, AES and EcoSecurities may be a minority.
Econergy, another London-listed energy firm, says its carbon funds are focused on Latin America. Likewise, GE Energy Financial Services, which in January announced a global partnership with AES to develop carbon-reducing projects, told BT: 'It's too early to say whether we will expand there (in Asia)'.
Some say Singapore's emphasis on being up-to-date with technology means 'easy' projects - those with low costs and high returns in terms of reducing energy use - are already done.
For example, AES's Asia and Middle East regional director Felix Chan says most of the island's power plants already use natural gas, which is less polluting and more efficient than coal or fuel oil. Also, they already run on combined cycle equipment that recovers waste heat.
According to Mr Sari: 'Indonesia, Malaysia, the Philippines and Vietnam have numerous industries that can achieve carbon finance - agriculture, oil & gas, cement manufacturing, and others. Singapore will not have the same size, scale or quantity of projects, because there are fewer conventional sectors to tap.'
Project opportunities for Singapore will be in fuel switching, energy efficiency and, potentially, the electronics sector, he says.
Local consultants reckon more can be done in the areas of power generation and buildings. According to the National Environmental Agency, natural gas accounted for 78 per cent of electricity produced in 2006. But in areas that are 'not so obvious', Singapore 'can and should exploit innovative systems such as tri-generation', it says.
Also known as 'distributed generation', this refers to using local power plants rather than buying power off the electricity grid, says Professor Lee Siew Eang of the Centre for Total Building Performance at the National University of Singapore.
When power generation is localised, excess heat can be used in other ways, such as to warm water, leading to up to 80 per cent energy efficiency, compared with 42 per cent efficiency at Singapore's power plants, he says.
As for buildings, most local structures, especially older ones, have air-conditioning systems that are 'notoriously inefficient when it comes to control', says the Regional Institute for Environmental Technology (RIET). This is because electricity costs are 'still within comfortable limits'.
Still, developers like City Developments and CapitaLand have been proactive in recent years, says Prof Lee.
CapitaLand told BT its studies show newly-built green buildings, compared with conventional ones of the same class, can save at least 10 per cent on energy and water use. All new buildings are designed to minimise heat gain and allow for natural lighting, it said.
Singapore is also 'in an interesting position to become more creative with emission reduction technologies in project sectors that have yet to be fully explored', according to Mr Sari.
The Sustainable Energy Association of Singapore says this could include work by member firm IUT Global, which turns food waste into fertiliser, and by SGX-listed Advanced Holdings, which wants to use algae to photosynthesise waste gas into biofuel.
Wednesday, March 28, 2007
Tampines Court being sold for $405m: sources
Tampines Court being sold for $405m: sources
Far East, Frasers Centrepoint team up to buy privatised HUDC estate
By KALPANA RASHIWALA
(SINGAPORE) Frasers Centrepoint and Far East Organization are teaming up to buy Tampines Court, a privatised HUDC estate, through a $405 million collective sale, BT understands.
The price works out to about $260 per square foot of potential gross floor area, including development charges and a premium to upgrade the site's lease to 99 years from a remaining term of 79 years.
The purchase of the 702,162 sq ft site is subject to approval by the Strata Titles Board (STB). The land is zoned for residential use with a 2.8 plot ratio - the ratio of potential maximum gross floor area to land area. It can be potentially redeveloped into a new condominium with about 1,580 units averaging 1,300 sq ft.
Market watchers reckon that given the huge size of the plot, Far East and Frasers Centrepoint will most likely develop it in phases.
This is the second time the property heavyweights are teaming up for an acquisition. In their maiden tie-up in May last year, they signed a deal to buy Waterfront View, a privatised former HUDC estate facing Bedok Reservoir, for $385 million. This reflected a price of $241 psfper plot ratio.
The purchase was approved by the STB last month. But a couple who own a unit there are appealing against the ruling in the High Court.
Tampines Court comprises an existing development of 560 units. It is on a site with a lease of 101 years that started on Dec 1, 1985. The sale of Tampines Court was brokered by Dennis Wee Group, with Phang & Co representing the majority owners.
Far East and Frasers Centrepoint were among the biggest property buyers in Singapore last year. Far East, controlled by Ng Teng Fong, put about $1.6 billion of acquisitions under its belt, including the former Glutton's Square site, Angullia Mansion and Amberville.
Frasers Centrepoint is a fully-owned unit of listed Fraser & Neave, whose group chief executive Han Cheng Fong partnered Mr Ng's Far East group in Singapore and China during the previous property bull market in the 1990s when Dr Han was at the helm of DBS Land.
Last year Frasers Centrepoint bought over $800 million of properties in Singapore including Far East Mansion and a site near Novena MRT Station.
Far East, Frasers Centrepoint team up to buy privatised HUDC estate
By KALPANA RASHIWALA
(SINGAPORE) Frasers Centrepoint and Far East Organization are teaming up to buy Tampines Court, a privatised HUDC estate, through a $405 million collective sale, BT understands.
The price works out to about $260 per square foot of potential gross floor area, including development charges and a premium to upgrade the site's lease to 99 years from a remaining term of 79 years.
The purchase of the 702,162 sq ft site is subject to approval by the Strata Titles Board (STB). The land is zoned for residential use with a 2.8 plot ratio - the ratio of potential maximum gross floor area to land area. It can be potentially redeveloped into a new condominium with about 1,580 units averaging 1,300 sq ft.
Market watchers reckon that given the huge size of the plot, Far East and Frasers Centrepoint will most likely develop it in phases.
This is the second time the property heavyweights are teaming up for an acquisition. In their maiden tie-up in May last year, they signed a deal to buy Waterfront View, a privatised former HUDC estate facing Bedok Reservoir, for $385 million. This reflected a price of $241 psfper plot ratio.
The purchase was approved by the STB last month. But a couple who own a unit there are appealing against the ruling in the High Court.
Tampines Court comprises an existing development of 560 units. It is on a site with a lease of 101 years that started on Dec 1, 1985. The sale of Tampines Court was brokered by Dennis Wee Group, with Phang & Co representing the majority owners.
Far East and Frasers Centrepoint were among the biggest property buyers in Singapore last year. Far East, controlled by Ng Teng Fong, put about $1.6 billion of acquisitions under its belt, including the former Glutton's Square site, Angullia Mansion and Amberville.
Frasers Centrepoint is a fully-owned unit of listed Fraser & Neave, whose group chief executive Han Cheng Fong partnered Mr Ng's Far East group in Singapore and China during the previous property bull market in the 1990s when Dr Han was at the helm of DBS Land.
Last year Frasers Centrepoint bought over $800 million of properties in Singapore including Far East Mansion and a site near Novena MRT Station.
HK's mass residential market seen picking up
HK's mass residential market seen picking up
Buyers encouraged by govt Budget, mortgage price war, say property agents
By JANE MOIR
IN HONG KONG
A STRING of recent property sales in Hong Kong's mass residential market has triggered speculation of a more brisk outlook for the sector, which continues to lag the luxury sector on a grand scale.
Sturdy sales: Nearly 500 flats were reportedly sold this weekend alone across Hong Kong
Despite strong economic growth last year, the mass residential property market dropped 2.7 per cent in 2006. In contrast, the luxury sector has soared by more than 70 per cent since the Sars crisis of 2003.
Sales of cheaper flats over the past week have grabbed the headlines, with some buyers having to queue for hours to sign up for the latest residential offerings.
Hong Kong is also experiencing a mortgage price war, but the mass market has been relatively immune up to now.
Nearly 500 flats were reportedly sold this weekend alone across Hong Kong, including Henderson Land's 119-unit project in Yuen Long, The Verdancy. The flats sold for around HK$2,300 (S$447) per square foot.
Sun Hung Kai Properties also sold more than 200 of its Manhattan Hill units in Lai Chi Kok at HK$5,500 to HK$6,000 psf. A further 80 units of Pacific Century Premium Developments' Bel Air residential project at Cyberport were sold, just days after being released.
Property agents said a mixture of the feel-good factor from this year's Budget and a mortgage war in the city had encouraged buyers.
Despite sturdier sales in recent weeks, some analysts remain cautious, suggesting that developers may be using various tactics to talk up the market as buyers remain wary of high prices being sought in the mass residential sector.
Andy So, research analyst at Core Pacific Yamaichi, noted, however, that much will depend on the sales tactics employed by developers. 'Is it (the buying surge) simply because of the fact that some developers chose to launch fairly aggressive sales over the weekend?' he said.
He believes the mass sector will post fairly moderate growth this year of a few percentage points. The primary reason for sluggish growth, he stressed, is the high price being sought. 'Demand at the current price level shouldn't be very strong - the asking price by the developers is too high,' he said.
Property experts expect an increase of up to 20 per cent in luxury residential sales this year as demand for up-market homes continues to soar amid limited supply, but the mass sector is continuing to lag as buyers steer clear of steep price tags.
However, property firms such as Savills believe there may be a chance of the mass sector picking up this year if developers price the units slightly lower. Savills also points to the number of sale and purchase agreements for residential units in January, which reached 7,500, a year-on-year increase of 53 per cent.
Buyers encouraged by govt Budget, mortgage price war, say property agents
By JANE MOIR
IN HONG KONG
A STRING of recent property sales in Hong Kong's mass residential market has triggered speculation of a more brisk outlook for the sector, which continues to lag the luxury sector on a grand scale.
Sturdy sales: Nearly 500 flats were reportedly sold this weekend alone across Hong Kong
Despite strong economic growth last year, the mass residential property market dropped 2.7 per cent in 2006. In contrast, the luxury sector has soared by more than 70 per cent since the Sars crisis of 2003.
Sales of cheaper flats over the past week have grabbed the headlines, with some buyers having to queue for hours to sign up for the latest residential offerings.
Hong Kong is also experiencing a mortgage price war, but the mass market has been relatively immune up to now.
Nearly 500 flats were reportedly sold this weekend alone across Hong Kong, including Henderson Land's 119-unit project in Yuen Long, The Verdancy. The flats sold for around HK$2,300 (S$447) per square foot.
Sun Hung Kai Properties also sold more than 200 of its Manhattan Hill units in Lai Chi Kok at HK$5,500 to HK$6,000 psf. A further 80 units of Pacific Century Premium Developments' Bel Air residential project at Cyberport were sold, just days after being released.
Property agents said a mixture of the feel-good factor from this year's Budget and a mortgage war in the city had encouraged buyers.
Despite sturdier sales in recent weeks, some analysts remain cautious, suggesting that developers may be using various tactics to talk up the market as buyers remain wary of high prices being sought in the mass residential sector.
Andy So, research analyst at Core Pacific Yamaichi, noted, however, that much will depend on the sales tactics employed by developers. 'Is it (the buying surge) simply because of the fact that some developers chose to launch fairly aggressive sales over the weekend?' he said.
He believes the mass sector will post fairly moderate growth this year of a few percentage points. The primary reason for sluggish growth, he stressed, is the high price being sought. 'Demand at the current price level shouldn't be very strong - the asking price by the developers is too high,' he said.
Property experts expect an increase of up to 20 per cent in luxury residential sales this year as demand for up-market homes continues to soar amid limited supply, but the mass sector is continuing to lag as buyers steer clear of steep price tags.
However, property firms such as Savills believe there may be a chance of the mass sector picking up this year if developers price the units slightly lower. Savills also points to the number of sale and purchase agreements for residential units in January, which reached 7,500, a year-on-year increase of 53 per cent.
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