RECALLING: October 15 2007

Second residential tower at MBFC to be launched early next year

The joint-venture developers of the Marina Bay Financial Centre (MBFC) will begin marketing Marina Bay Suites early next year. The 65-storey residential tower, the sister development of the 428-unit Marina Bay Residences, which sold out in three days last December, will offer 223 luxury three- and four-bedroom units. Apartments will range in size from 1,500 to 2,500 sq ft and feature private lift lobbies. The typical floor plate has only four apartments. The development will also include a single-level penthouse and two duplex penthouses, each with a swimming pool. MBFC is being developed by Cheung Kong (Holdings)/Hutchison Whampoa, Hongkong Land and Keppel Land.

Spanish Village expects sale of $878 million

Savills has launched for collective sale by tender Spanish Village, a prime residential redevelopment site along Farrer Road. The 20-year-old property is sited on 331,457 sq ft and, subject to permission, will have a permissible gross floor area (GFA) of 530,344 sq ft and plot ratio of 1.6. Because the site can be redeveloped up to 12 storeys from its current five, Savills believes 407 apartments averaging 1,300 sq ft can be built on the land. The indicative price is $878 million, or $1,700 psf per plot ratio (ppr). The closing date for the tender is Nov 13 at 3pm.

Source: Savills

Two freehold sites in Orchard area up for collective sale

Savills has launched two prime residential redevelopment sites near Orchard Road for collective sale by tender. Westwood Apartments is sited on 62,179 sq ft at 15 Orchard Boulevard. The plot ratio is 2.8, with a height restriction of 20 storeys. The site can yield 69 units averaging 2,500 sq ft each. Savill’s Steven Ming says the site can be developed into a 20-storey uber-luxurious residential development. Recent primary sales for some nearby luxurious apartments have exceeded $4,000 psf. The indicative price is $488 million, or $2,800 psf ppr. The tender closes at 3pm on Nov 21. The second site, Welkin Mansions, at 17 River Valley Close, is 26,000 sq ft. Redevelopment could yield 48 units averaging 1,500 sq ft each, with a maximum height of 36 storeys. Savills expects the property to fetch $1,800 psf ppr. The tender closes at 3pm on Nov 9.

Ascendas to build iconic space at IBP

Leading business space solutions provider Ascendas has been awarded a contract by JTC Corp to build and manage a new multi-tenanted development at International Business Park (IBP). When completed by end-2009, the $98 million project will release nearly 452,100 sq ft of hi-tech space. The proposed business development park, near Jurong East MRT station and Ayer Rajah Expressway, will have a distinctive façade and two 12-storey blocks connected by sky bridges. Energy-efficient design is expected to shave 30% off energy use and save $250,000 a year. Ascendas will manage the development on completion.

Conservation shophouses for sale

Colliers has launched the sale of 13 pre-war conservation shophouse units by expressions of interest. The leasehold shophouses are on Telok Ayer and Boon Tat Streets and occupy 16,987 sq ft. The first storey is mainly used for F&B outlets and the upper floors are offices. The property, which has a total GFA of 56,000 sq ft and is in the Telok Ayer Conservation area, is zoned commercial. Given the strong demand for shophouses, the expected selling price is $67 million, or about $1,200 psf. Offers close on Nov 13.

Bungalow development for $92 million

United Premas has invited bids for Northshore Bungalows, an exclusive 129,585 sq ft site off Punggol Road. The expected price is $92.4 million, exclu ding development charges of $14 million. There are currently 20 bungalows and two plots of bungalow land with a swimming pool and clubhouse. The site can accommodate 72 units of resort-style strata-titled bungalows. The tender closes at 3pm on Nov 22.

Royalville eyes at least $330 million

Royalville, a 174,176 sq ft site along Bukit Timah Road, off Sixth Avenue, has been released by Credo for collective sale by tender. The site has a plot ratio of 1.4 with an allowable building height of five storeys. Currently, there are 93 residential units and 11 shops. The new development could accommodate a luxury condominium with a GFA of 244,000 sq ft, enough for 150 apartments averaging 1,600 sq ft each. Royalville is expected to fetch $330 million to $350 million, reflecting $1,235 to $1,305 psf ppr. The tender closes at 2.30pm on Nov 9.

Source: CREDO

UOL’s hotel arm tops bid for hotel-site tender

URA has received nine bids at the close of tenders on Oct 10 for a hotel site at Upper Pickering Street. The 99-year leasehold property has a maximum GFA of 314,599 sq ft. CB Richard Ellis says the site, at the edge of the CBD and at the start of Chinatown, is ideal for a hotel catering to business travellers. UOL-linked Hotel Plaza submitted the highest bid of $253.2 million ($805 psf ppr), 21% higher than the second-highest bid of $209 million ($664 psf ppr) placed by Park Plaza. — Compiled by Mark Henderson.

OFFSHORE

Japanese REIT IPO aiming for $243 million

Saizen Real Estate Investment Trust will be Singapore’s first real estate investment trust (REIT) backed by Japanese assets when Saizen holds its IPO roadshow on Oct 15. Saizen, which is backed by Japanese residential properties in 13 regional cities, aims to raise up to $243 million. The price per unit is between $1 and $1.08, giving a yield of 6.09% to 6.51% (from Nov 1 this year through to June 30 next year). At listing, the REIT will hold 148 residential apartment buildings with a total value of $626.8 million.

Ascott is first into Georgia

The Ascott Group has signed a contract with Amtel Properties Development to manage a new serviced residence in Georgia to be named Citadines Tbilisi Freedom Square. Ascott will be the first international serviced residence operator in Georgia when the 65-unit property opens next year. Ascott now operates 49 sites in Europe.

US tax rules could stifle REITs

The Asian Public Real Estate Association (Aprea) is concerned that new tax rules might deter US investors from buying into foreign REITs. The rules apply to passive foreign investment companies (PFICs), which are broadly defined to include foreign REITs, including those from Singapore, Japan, Hong Kong and Malaysia, says Aprea. Congress enacted the rules in response to concerns that US citizens could dodge US tax on investment income by holding investment assets through a foreign corporate entity that was not subject to US tax. However, REITs were not an intended target. Aprea is considering how to lobby authorities on the issue.

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