RECALLING: December 24 2007

By EdgeProp / EdgeProp | December 24, 2017 9:00 AM SGT
Housing market slows
Global stock market volatility spilling from the subprime problems in the US have made home buyers in Singapore more cautious, says Li Hiaw Ho, the executive director of CB Richard Ellis (CBRE) Research. The comments follow statistics from URA, which shows that 593 new homes were sold in November, slightly more than the 566 units sold in October.
Other factors dampening demand were the smaller number of new launches, tightened en bloc rules and the government withdrawal of the deferred payment scheme. The main performers in November were Amber Residences, which sold 85 units at a median $1,392 psf, and Casa Fortuna where 103 units sold averaging $1,009 psf. Based on the latest URA figures, CBRE Research says it is likely the total number of new units sold in 4Q will be around 1,700 to 1,800. Overall, prices are firming. Sales volume and prices should remain at the same levels as October to November.
Record year for industrial market
Industrial property has enjoyed a record-breaking year with improving rentals and occupancy for all space, says CBRE. Highlights include the award of several business park sites, the launch of a fourth industrial real estate investment trust (REIT) and 10 industrial sites awarded to developers and manufacturers. Ascendas announced it would be developing a facility at Changi Business Park with Citibank as the main tenant. Ascendas is also developing another facility in the International Business Park. United Engineers will build the 780,390 sq ft Centric Singapore in Changi Business Park. MI-REIT launched its IPO in April with 12 properties in its portfolio, totalling $316 million. It has since bought eight more properties for $229 million. The 10 sites awarded under the government land sales programme totalled $190.5 million, up from the $86.9 million for seven sites last year.
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URA opens Tanjong Pagar hotel site for application
URA has opened for application a hotel development site in the Tanjong Pagar area. The 0.46ha land parcel at Bernam Street-Tanjong Pagar Road, close to the Tanjong Pagar MRT, has a maximum permissible gross floor area of 288,870 sq ft. This location is one of the four new hotel sites scheduled for release for application on the reserve list in the Government Land Sales programme for 2H2007.
Kuwait Finance House pays $818 million for 97 Goodwood units
GuocoLand has sold 97 (the whole of Phase 1) out of the 210 luxury units in Goodwood Residence (left) to a fund company to be managed by Kuwait Finance House (Malaysia) Bhd for $818.4 million. The four-bedroom apartments range from 2,500 to 3,900 sq ft. Goodwood Residence is a luxury freehold green development near Orchard Road. The 210 apartments are in two 12-storey blocks overlooking Goodwood Hill. The development received the Green Mark (Platinum) from the Building and Construction Authority (BCA) in September in recognition of its green features. Almost 80% of the grounds in the 267,438 sq ft estate have been reserved for landscaping and facilities.

Source: Guocoland

Frasers Centrepoint wins Lakeside site
URA has awarded the tender for the residential site at Boon Lay Way-Lakeside Drive to Frasers Centrepoint. The company submitted the highest bid of $205.56 million for the 236,813 sq ft property offered on a 99-year lease. The winning bid — one of only two received — works out to $248 psf per plot ratio. CBRE says, at this price, the breakeven will be around $600 psf. Demand is likely to come from HDB residents looking to upgrade and people who work in the western part of Singapore. — Compiled by Mark Henderson.
OFFSHORE
Citigroup and GIC buy stake in India property venture
Citigroup, Singapore’s Government Investment Corp (GIC) and other international investors are buying 15% of a real estate venture of India’s Shapoorji Pallonji group for around $300 million. The deal involves investments in six projects in the commercial, residential and shopping malls sectors in Kolkata, Pune, Nagupur and other cities, according to a report in the Economic Times. The Shapoorji Pallonji group is run by Pallonji Mistry, whose family is the single biggest shareholder (18%) of Tata Sons, the holding company of the Tata Group.
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Ascendas Vietnam partnership to create $145 million industrial park
Ascendas has partnered with Vietnamese stateowned Protrade Corp to develop a new 500ha industrial park in the Ben Cat District of Binh Duong Province. The $145 million Ascendas-Protrade Singapore Tech Park will be developed in three phases over three years and will support more than 40,000 workers. The first phase, totalling 150ha, is expected to be completed by next December. The park will offer options of prepared land and builtto- suit as well as ready-built facilities to “light and clean” industries. They will include food and beverage, precision engineering, electronics, healthcare and pharmaceuticals. The park is part of the new 1,350ha An Tay Industry and Service Complex, an integrated township incorporating residential and recreational facilities.
MGM Mirage and Pansy Ho looking to partner Dubai World in Macau
The MGM Mirage-Pansy Ho partnership is looking to team up Dubai World — the Dubai government’s investment arm — for a project in Macau, reports Bloomberg. The MGM Mirage venture with the daughter of billionaire Stanley Ho has opened a US$1.25 billion ($1.83 billion) casino in Macau. The partnership has applied to open a second facility in Cotai Strip to follow the 600-room MGM Grand Macau. The partnership might link with Dubai World for other projects in Macau. Dubai World in August agreed to buy 14.5 million shares of MGM Mirage, the world’s second largest casino operator. MGM Mirage plans to build a 1,200-room hotel and entertainment complex in Abu Dhabi.

Source: Bloomberg

GE eyes Taiwan property market
General Electric’s (GE) property arm plans to invest US$300 million in Taiwan over the next two years, reports Bloomberg. GE Real Estate has more than US$62 billion of assets worldwide. Two attractions are Taiwan’s lower entry compared to Tokyo prices and lower cost of borrowing. According to Jones Lang LaSalle, Grade-A office space in Tokyo’s central business district returns 3.1%, while similar buildings in Taipei yield up to 5.9%. GE Real Estate will initially concentrate on office and retail properties. Taipei’s office buildings have jumped 20% in value this year.
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