News Highlights Thursday 13 March 2008

No major property launches expected in the next 3 months
Major property launches are unlikely for at least 3 months after the already nervous markets was spooked by the pullout of Kuwait Finance House from an option to buy 97 units at Goodwood Residences, and the low op bid by a property developer for the landed housing site in Jurong West. So far this year, the only new major condo launch has been the 405-unit Waterfront Waves in Bedok Reservoir, with the other launches being small quiet releases such as the 47-unit Cosmo in Guillemard Cresent. There is no lack of high-end condo projects with quite a few ready or nearly set to launch including Far East Organization’s SIlversea in Amber Road, UOL Group’s Breeze by the East in Upper East Coast Road, and City Development’s condo project in Thomson Road.

- The Straits Times, H21



KSH wins S$121 million contract for Sentosa Cove condo
KSH Holdings reported it had won a contract worth over S$121 million from Seaview (Sentosa) to build a luxury condominium called Seascape at Sentosa Cove. The project would bring its existing order book for construction business to over S$614 million.

- The Straits Times, H19



Lian Beng clinches deals worth S$90 million
Lian Beng Group announced that it had been awarded a total of S$90.2 million to build a condominium and an industrial building. The construction firm will build Amber Residences, a 114 unit condominium along East Coast Road, awarded by Voda Land. Scorpio East Properties also awarded Lian Beng a S$16.7 million contract to build an industrial building at Paya Lebar iPark.

- The Straits Times, H19



Good man exit seen as chance for A-Reit expansion
Ascendas yesterday announced it would buy out Goodman Group’s share of Ascendas Real Estate Investment Trust (A-Reit) for S$158.16 million. This ends the joint venture between the two firms, with Ascendas acquiring Australia-based Goodman’s 6.28 per cent stake in
A-Reit for about S$1.90 a unit as well as Goodman’s 40 per cent stake in A-Reit’s management company for an undisclosed sum. This move could pave the way for A-Reit to finally expand overseas.

- The Business Times, P4


CityDev unit in Abu Dhabi JV
City Developments’ wholly owned unit, CBM International, entered into an agreement with Gulf Industrial Services Co, a Bin Hamoodah Group company, to set up a limited liability joint venture company in Abu Dhabi. The JV, in which CBM International will have a 49 per cent stake, will provide integrated facilities management services and will tap into the facilities management market in the Emirates.

- The Business Times, P6



Office demand unaffected by global credit crunch
The credit crunch has so far failed to dent demand for office space in Singapore or derail its bid to become Asia’s leading financial centre. URA said earlier this week that it planned to double the size of Singapore’s Marina By financial district to 2.82 million square metres – or twice the size of London’s Canary Wharf financial district – as international financial sector occupiers continue to seek presence in the city. Standard Chartered Bank and DBS Bank have agreed to take a total of 11,500 square metre office and residential project being developed by Keppel Land, Cheung Kong Holdings/Hutchison Whampoa and Hongkong Land. Singapore is currently in 7th place in the world’s most expensive office markets, despite prime office rents climbing 78 per cent in 2007. Its annual office rents average US$130 psf.

- The Business Times, P32



Swiss bank takes up bulk of new block
Swiss private banking group EFG Bank has leased 52,000 square feet or two-thirds of a nine-story office block coming up opposite Parliament House. EFG has naming rights for the freehold building which is expected to be ready in the 1st quarter next year. The property was developed by a unit of RB Capital, headed by Kishin Hiranandani, son of Raj Kumar of the Royal Brother’s Group. The bank currently leases a total of about 15,000 sq ft at 2 locations – the entire 42nd floor of UOB centre at Raffles Place and the 10th floor of the 55 Market Street.

- The Business Times, P32



Gulf states in race to build world’s tallest tower
Gulf Arab states, flush with proceeds from record high oil prices are racing to build the world’s tallest building, with Saudi Arabia joining the fray with a plan to build one-mile or 1,600m tower in the Red Sea city of Jeddah. Riyadh-based Kingdom Holding, which is controlled by Saudi billionaire Prince Al-Walid bin Talai, will invite bids before July for contracts to build tower in Jeddah, Saudi Arabia’s commercial capital, with the project expected to cost up to US$10 billion. Kuwait has unveiled a plan to build a 1,001m tower as one of the highlights of the “City of Silk”, a US$77 billion project inspired by the Silk Road. In Dubai, major property developer Nakheel has announced it will build Al-Burj (The Tower) whose projected height has not been revealed in a bid to overtake the US$1 billion Burj Dubai developed by Emar Properties.

- The Business Times, P29



Asia helps Savills beat profit forecasts
British property services firm Savills reported a forecast-beating 14 per cent rise in 2007 profit due to its Asia and consultancy businesses. Its Asia- Pacific business showed strong growth in revenue spurred by strong residential occupier demand in hotspots such as Hong Kong, China, Australia, and Singapore. Savills chief executive designate Jeremy Helsby sights the region’s bullish economic growth outlook and consultancy business to continue to drive growth this year although overall performance will depend on a recovery in the financial market.

- The Business Times, P29