Phase two project studies over; Pulau Sebarok likely site

SIGNALLING practically a go-ahead for offshore oil/petrochemicals storage here, JTC Corporation said it is now progressing to prepare construction tenders for the very large floating structures (VLFS), following its completion this month of phase two project studies.

‘Moving forward, JTC is targeting to call a tender for the technical consultant in the second quarter,’ a JTC spokeswoman told BT yesterday.

‘The work scope for the technical consultant would include looking into the front-end engineering design as well as calling of the engineering, procurement and construction (EPC) tender,’ she added.

She said this in response to BT queries on whether JTC had made a final decision to proceed with the floating oil storage project – as it had earlier said it would – following the completion of its phase two studies at end-March.

But JTC declined to say more, including specifics like when it expects to embark on actual VLFS construction.

Still, there is strong rationale to proceed with the project, given the limited land available here to satisfy traders’ demand for additional on-shore storage in the oil hub here. This has led to many Singapore-based trading firms setting up tankfarms in neighbouring Johor instead.

The VLFS will most likely be anchored off Pulau Sebarok, which it earlier identified as a potential site for the project.

Sebarok – currently being used for on-shore oil storage by Dutch tankfarm operator Vopak and PetroChina-owned Singapore Petroleum Company – is very close to Shell’s Bukom refinery and not far from Jurong Island, Singapore’s main oil and petrochemicals hub.

JTC’s just-completed phase two studies covered environmental impact, engineering design, business model and security aspects.

It followed phase one studies, completed in late-2007, which showed VLFS to be technically feasible and comparable in cost to land-based oil storage. Its earlier cost estimate for a VLFS was at least $180 million.

Some industry officials, however, argue that the cost of building a VLFS – estimated at US$400 per cubic metre of storage – is slightly more than the US$300 per cu m cost of building an onshore tank, depending on steel prices.

The JTC studies had ascertained that to be economical, the minimum storage capacity of a VLFS should be 300,000 cubic metres, or equivalent to that of a very large crude carrier. VLFS would comprise two rectangular modules, each measuring 180m by 80m by 15m and with 150,000 cu m capacity.

JTC, meanwhile, has also started building the $890-million first phase of Jurong Rock Cavern (JRC) to store oil underground. Comprising five caverns, the JRC project – considered more for strategic oil storage – will offer 1.47 million cu m when completed in 2014.

Source: Business Times, 30 Mar 2010

(SINGAPORE) Stamford Land Corporation could be selling its Grade A office tower in Perth’s central business district for at least A$140 million (S$179 million).

According to The West Australian, the 13-storey Dynons Plaza at Hay Street is under construction and Stamford Land is ‘gearing up to place the asset on the market’.

Industry sources told the Australian paper that the building has a value of A$130-140 million. Chevron will be leasing the entire place – which has 13,000 square metres of office space – when it is ready in the next few weeks.

‘It is a new building, a quality long-term lease, so those sorts of assets are attractive to the market,’ said Colliers International director of investment sales Ian Mickle to The West Australian.

BT understands that Stamford Land is expecting offers of more than A$140 million. This could reap a considerable profit for the company given that the total cost of buying, holding and developing the land could have come up to some A$80-90 million.

Dynons Plaza is located next to Woodside Plaza, which serves as the headquarters for another energy firm Woodside Petroleum.

The Dynons Plaza site is part of a bigger parcel which Stamford Land bought for A$20 million in 1996. The company has sold the other parts of the land.

The West Australian reported that Stamford Land had originally planned to build a five-star hotel at the Hay Street site, but it later constructed an office block when there was no business case for a hotel.

The change seems to be working in Stamford Land’s favour. BT understands that Chevron’s lease for Dynons Plaza lasts for ten years, and its rents are set to escalate every year. Despite this, Stamford Land is said to be selling the site to focus on its core business of running luxury hotels.

Stamford owns and operates Stamford Hotels in Australia and New Zealand. The Singapore-listed counter gained 1.5 cents to close at 47.5 cents yesterday.

Source: Business Times, 30 Mar 2010

Prospect of lower bonuses for bankers, increased taxes for higher earners cited

(LONDON) Luxury-home prices in central London increased at the slowest rate since a recovery started a year ago on the prospect of lower bonuses for bankers and increased taxes for higher earners, Savills plc said.

The average value of houses and apartments costing more than £1 million (S$2.1 million) increased 3 per cent in the first quarter from the previous three months, according to the London-based property broker.

Prices gained almost 17 per cent from the year-earlier period, when an 18-month slide ended.

‘Some of the heat has come out of the market,’ said Yolande Barnes, head of residential research. ‘We’ve also yet to see any significant influx of bonus money, suggesting buyers are still keeping their options open.’

The British government announced in December a one-time 50 per cent tax on bonuses exceeding £25,000 paid to bankers in the current fiscal year. This was in response to the outcry over their compensation following state bailouts or aid that enabled banks to weather the financial crisis.

Ms Barnes predicts that prices will decline one per cent this year, following an 8.8 per cent gain in 2009, as the fragile economic recovery and higher taxes on luxury properties damp buyers’ appetite to buy homes in neighbourhoods like Chelsea, Kensington and Belgravia.

For properties worth more than £10 million, prices were 6.8 per cent higher than a year ago. ‘This sector of the market was far more resilient in the downturn, growing throughout most of 2008,’ Savills said.

Next month, a 50 per cent tax on earnings exceeding £150,000 also takes effect and the governing Labour Party will be campaigning to win a fourth term in legislative elections that must be held by June.

Chancellor of the Exchequer Alistair Darling last week announced that the property transfer tax, known as stamp duty, for homes costing more than £1 million will be lifted to 5 per cent from 4 per cent starting in April 2011.

‘With the expectation of a second, more unforgiving Budget later this year, activity is already noticeable lower as buyers wait to see how the wind blows,’ said Charlie Ellingworth, founder of Property Vision, the unit of HSBC Private Bank that advises wealthy buyers. — Bloomberg

Source: Business Times, 30 Mar 2010

(LONDON) UK mortgage approvals unexpectedly fell to a nine-month low in February, adding to signs that credit constraints are impeding the housing market’s recovery.

Lenders granted 47,094 loans to buy homes, compared with 48,099 in January, the Bank of England (BOE) said yesterday in London. That was the lowest since May. The median of 19 economist forecasts in a Bloomberg News survey was for 48,400.

Britain’s property market is showing signs of faltering as the economy struggles to cement its recovery from the worst recession since World War II.

Prime Minister Gordon Brown’s Labour Party, which faces an election by June, last week eliminated a tax for most first-time home buyers in a bid to unblock strains in the market.

‘This reinforces our belief that house prices will be no more than flat this year,’ said Howard Archer, an economist at IHS Global Insight in London.

‘The government’s stamp-duty holiday will probably give the market a boost but the economic fundamentals of the housing market are pretty poor at the moment.’

Yesterday’s mortgage approval figure compares with a low of 26,600 at the trough of the financial crisis in November 2008, though it’s still less than half the 120,000 reading at the peak of the boom.

Recent data on house prices have been mixed. Hometrack Ltd said on March 23 prices rose 0.3 per cent this month from February, while Lloyds Banking Group plc’s Halifax division says the average cost of a home fell 1.5 per cent last month.

Mr Brown’s government, which is narrowing the gap in opinion polls with the opposition Conservatives, is trying to help potential homebuyers in the run-up to the election.

Chancellor of the Exchequer Alistair Darling last week scrapped a tax on house purchases for first-time buyers spending £250,000 (S$524,273) or less. The tax previously started at one per cent for properties costing more than £125,000.

Mr Darling said the policy will mean nine in 10 first-time buyers will avoid the levy.

A ComRes Ltd poll conducted after Mr Darling ended his Budget speech on March 24 showed 33 per cent of respondents now trust him and Mr Brown to run the economy, compared to 27 per cent favouring the opposition Conservatives.

The BOE said net mortgage lending rose £1.6 billion, the most since December 2008.

Yesterday’s report showed that households added to their unsecured debts in February. Net consumer credit rose by £528 million. Economists predicted a £400 million increase, according to the median of 15 forecasts in a Bloomberg survey.

Credit-card lending increased £374 million, while personal loans and overdrafts climbed by £154 million. — Bloomberg

Source: Business Times, 30 Mar 2010

From Seletar Aerospace Park to Biopolis and Fusionopolis, estates showcase green technologies for a sustainable environment

DEVELOPING industrial parks used to be relatively straightforward – clear the land, build the factory blocks and companies will come and set up their production lines.

But JTC Corporation’s job has got more complex over the years as Singapore’s manufacturing sector moved up the value chain. Industrial space has had to move beyond drab buildings, to incorporate elements of good design and environmental sustainability to attract investors.

This reflects the requirements of new economic clusters such as clean technology – sectors that need to be in areas that complement their business activities.

Also, researchers, product designers and other talent vital to these sectors are looking for more than a job these days. Many are looking for a high quality of life – and green liveable workplaces count towards that.

The wider green movement is hard to ignore. As the government puts more emphasis on sustainable development, JTC has to play its part by boosting the eco-friendliness of its estates. Examples include Seletar Aerospace Park, Biopolis and Fusionopolis.

Preserving heritage

JTC’s green initiatives will be plain to see at the upcoming Seletar Aerospace Park, a 300-hectare centre for aviation maintenance, repair and overhaul and aircraft system design and production.

The agency told BT: ‘Great effort was made during the planning process to balance economic and infrastructural space needs with the preservation of the area’s architectural and environmental heritage.’

When JTC was developing the park’s master plan, it consulted the National Parks Board and held dialogue sessions with the Nature Society on trees in the area. These discussions led it to retain nine heritage trees. Inevitably, some trees had to go for roads, and to ensure airport operations will be safe.

JTC has also kept 202 of the 378 heritage buildings on the site. It plans to convert some black-and-white houses into food and beverage establishments or training institutions.

Seletar Aerospace Park will be a unique centre ‘nestled in greenery and the charm of old Seletar’, the agency believes.

Besides preserving the character of the site as much as possible, JTC is looking at improving water quality there. It will test a gravel filtration system at the park, aimed at cleaning rainwater before it reaches drains and reservoirs.

The stormwater management system will comprise layers of gravel, coarse sand and granite, which will remove pollutants from rainwater. This will help save water treatment costs downstream.

The gravel filtration system will debut at the Business Aviation Complex. If it improves water quality, JTC could encourage other companies in the park to adopt it in their land parcels.

The Business Aviation Complex will also have other green features, such as natural ventilation systems, vertical greenery and energy-saving lights. Construction of the building began recently and is expected to finish by the first half of 2011.

Protecting environment

Biopolis is another estate that showcases JTC’s environment protection efforts. The first phase of the development at Buona Vista for biomedical research and development received the inaugural Green Mark Gold award in 2005.

The Building and Construction Authority came up with the Green Mark scheme that year to recognise environment-friendly buildings. Such buildings not only provide good publicity for developers and designers, but also use fewer resources and can help tenants save water and electricity costs.

Biopolis Phase One took the gold award for incorporating green technologies in its seven buildings. For instance, there is a district cooling system for centralised air-conditioning – water is chilled at one location and sent through a network of pipes to keep all seven buildings cool. This arrangement frees space that would have been needed for cooling equipment in each building and reduces maintenance needs.

Phase One also makes use of a pneumatic waste conveyance system. Non-toxic waste from the seven buildings is sent to a central collection area using a network of underground pipes. This removes the need to transport waste around the site.

The buildings are also test-beds for solar LED lighting, solar hot water systems and waterless urinals. For all these green measures, Biopolis phase one has won other accolades such as the PUB Water Efficient Building award and the Landscape Industry Association of Singapore’s gold award.

Providing green lungs

Nearby Fusionopolis is not to be outdone when it comes to environmental sustainability. The two towers in the first phase of development have 13 sky gardens between them. These spots, some with ponds and water wells, allow employees to take a break from work in the infocommunications, media, science and engineering centre.

The International Green Roof Congress in May last year recognised these efforts – the rooftop garden at Fusionopolis received the leadership award in the category for sustainable architecture.

The upcoming Phase 2B will extend the green theme, with more roof gardens and spiralling green terraces. It is designed by Ken Yeang, an architect renowned for his work on eco-skyscrapers, and will be ready by the end of this year.

Phase 2B will see ‘a network of open interactive public and semi-public spaces, creative use of skylights and courtyards for natural light and ventilation, and cascading landscaped garden terraces,’ JTC said.

‘It aims to inspire and meet the needs of its resident tenants in the creative industries with the provision of a wide range of intimate spaces with differing and flexible layouts.’

Source: Business Times, 30 Mar 2010

It will be a ‘seed’ building to testbed and showcase innovative green solutions

(SINGAPORE) The first building at Singapore’s CleanTech Park is expected to be up by end 2011 at a cost of $90 million, JTC Corporation said yesterday.

With a gross floor area of 403,646 square feet, CleanTech One is expected to house about 40 green tenants, such as cleantech companies’ headquarters, firms financing cleantech activities, as well as private and public research institutions.

Nanyang Technological University, which is adjacent to the CleanTech Park, will be its first tenant.

Surbana International Consultants beat 30 other entries to win the design tender JTC launched last December, with its ecological and commercially sustainable design.

As the first development on the eco-business park launched last month, CleanTech One will act as a ‘seed’ building to testbed and showcase innovative green solutions for tropical, urban settings.

These include solar panels, sky gardens, rainwater harvesting and sky trellises. If successful, these can then be rolled out to the rest of the CleanTech Park, Singapore and even the region, said JTC director for the aerospace, marine and cleantech cluster, Tang Wai Yee.

Surbana said that green features aside, the building itself was designed to minimise ‘cut and fill’ of the sloping terrain on which it is located, and takes into account the direction of wind and sun so as to reduce energy consumption.

Piling works will start around June while actual construction of CleanTech One should begin by August – an ‘aggressive and accelerated timeline’, Surbana said.

The 50 hectare CleanTech Park, which will house cleantech research, innovation and commercialisation activities, is expected to draw $2.5 billion worth of investments in buildings by its 2030 completion.

Source: Business Times, 30 Mar 2010

WEF report also shows big role govt plays in Republic’s high ranking

Even before the full rollout of the ambitious Next Generation National Broadband Network (Next Gen NBN), Singapore has moved up two places to the second spot in the global Networked Readiness Index (NRI) ranking published by the World Economic Forum (WEF).

The NRI is part of the 2009-2010 Global Information Technology Report, a widely watched study that has been jointly published by the WEF and global business school Insead for the past nine years.

Sweden has emerged as the most networked country in the world in the current NRI rankings, overtaking Denmark which occupied the top spot last year. Sweden was a runner-up in the last three editions of the report.

This year, Denmark comes in at third place, behind Singapore. Denmark is followed by Switzerland in fourth place and the United States in fifth place.

The NRI examines how prepared countries are to use ICT (infocomm technologies) effectively in three dimensions: the general business, regulatory and infrastructure environment for ICT; the readiness of the three key stakeholder groups in a society – individuals, businesses and governments – to use and benefit from ICT; and the actual usage of the latest information and communication technologies available, according to Soumitra Dutta, who is Roland Berger Professor of Business and Technology at Insead and a co-editor of the report.

The current NRI covers 133 economies from both the developed and developing world, accounting for more than 98 per cent of the world’s gross domestic product (GDP).

Singapore’s stock has been rising for the past three years. In 2008, it came in a disappointing fifth, while last year it was up one slot to fourth.

When the rankings first started in 2001-2002, Singapore was ranked eighth. In 2004-2005, it jumped to the top spot before slipping to fifth in 2008.

Irene Mia, senior economist of the Global Competitiveness Network at the WEF, and the other co-editor of the report, noted that Sweden, Singapore and Denmark’s superior capacity to use ICT for economic growth stems from the focus on education, innovation and ICT access.

The report also shows the role that the government plays in Singapore’s high ranking.

In the Readiness component of the NRI, Singapore has the world’s top ranking, driven by No 1 rankings in areas such as government’s prioritisation of ICT, government’s procurement of advanced technology products, and importance of ICT to the government’s vision of the future.

The Republic also takes top spots in quality of education system, and quality of math and science education.

Singapore also tops in the Political and Regulatory Environment component.

Some of the areas where it doesn’t do as well are, for example, the infrastructure environment (where it is ranked 21st) and also in broadband Internet subscription (24th).

However, the broadband result is based on 2008 data and, according to other measures and rankings, broadband penetration in Singapore has improved over the past year and it is expected to improve even further when the Next Gen NBN becomes fully functional.

Some of the other Asia Pacific economies that figure in the top 20 this year are: Hong Kong (eighth), Taiwan (11th), Korea (15th), Australia (16th) and New Zealand (19th).

The two largest Asian emerging markets – China and India – continue their progression in the NRI rankings, leapfrogging another nine and 11 places to 37th and 43rd respectively, Prof Dutta said.

Europe remains one of the most networked regions of the world with 12 economies ranked among the top 20 performers in this year’s rankings.

Source: Business Times, 30 Mar 2010

FAMILY ties among public housing residents have strengthened over the years, the Housing and Development Board’s latest sample household survey shows.

The survey, which covered 8,000 households, also revealed a growing trend among married couples to live near or together with their parents.

The survey explored three main aspects of family ties – living arrangements, interaction and support and the well-being of family life.

It showed the percentage of married couples aged between 21 and 54 who live with or close to their parents increased from 29.3 per cent in 1998 to 35.5 per cent in 2008, when the survey was carried out.

Another finding was that the frequency of visits between children and parents increased marginally.

The percentage of younger married people who visited their parents at least once a month rose to 90.7 per cent in 2008, from 87.8 per cent in 2008.

Similarly, 90.8 per cent of older people said in 2008 that their married children visited them at least once a month, up from 90.4 per cent in 1998.

Strong family support was also seen in 95 per cent of respondents who said support and care during sickness came from their spouse and married children.

Respondents were also asked whether family life was important to them and whether they were satisfied with it.

Although the response showed a slight dip from 1998, more than 90 per cent of younger married people and older people said family life is important and are satisfied with it.

Overall, the survey indicated that family life among HDB residents is in a healthy state.

The survey is carried out every five years by HDB to obtain feedback from residents and identify trends.

The findings, which are used in HDB policy reviews, help identify which aspects of the HDB environment can be improved.

Source: Business Times, 30 Mar 2010

NATIONAL Development Minister Mah Bow Tan is on a three-day working trip to Hong Kong, starting today.

He will meet senior officials from the Transport and Housing Bureau, the Hong Kong Housing Authority, and the Estate Agents Authority, to learn more about their experiences in regulating real estate agents, said the Ministry of National Development in a statement yesterday.

The ministry had announced plans last October to improve the industry’s professionalism, including setting up a new regulatory authority, an accredited industry body and an independent tribunal for dispute resolution.

Complaints against such agents have risen in the past few years in tandem with Singapore’s property boom.

The ministry said yesterday the details of the new framework will be announced within the next few months.

Mr Mah is being accompanied by ministry officials, and will also take the opportunity to update himself on public housing and other developments in Hong Kong, said the ministry.

Source: Straits Times, 30 Mar 2010

I THANK Mr Thomas Toh for his letter last Tuesday, ‘Restore Clifford Pier to new glory’, in which he reminisced about the bumboats that used to ply Clifford Pier.

Following the construction of the Marina Barrage, bumboats and other commercial vessels now operate from Marina South Pier. There are still small boats, water taxis and cruise boats that will ply Marina Bay to ferry visitors to and from the developments, including The Fullerton Heritage.

We agree with Mr Toh that Clifford Pier has played a significant role in Singapore’s maritime history. Given its historical and architectural value, the Urban Redevelopment Authority (URA) conserved the building in 2007.

As Clifford Pier no longer serves its original function as a pier for commercial vessels, the building had to be adapted for reuse to remain relevant and useful.

In addition to its heritage value, Clifford Pier is strategically located along the Marina Bay waterfront, and forms part of Singapore’s postcard signature skyline. URA’s vision was to transform this stretch of the waterfront at Collyer Quay, comprising Clifford Pier and the former Customs Harbour Branch Building, into a distinctive waterfront development.

To achieve this, in 2006, the Collyer Quay site was sold for a commercial and hotel development. The successful tenderer decided to give Clifford Pier a new lease of life by adapting it as a restaurant.

URA worked closely with the successful tenderer and his architect to retain the intrinsic and beautiful character of Clifford Pier. They were guided to keep part of the site open as a public plaza, allow public access along the decks around the edge of the development, and provide a passageway within the development for the public to directly access the waterfront and enjoy views across the bay.

These developments at Collyer Quay form part of the necklace of attractions along the 3.5km waterfront promenade at Marina Bay. When fully completed later this year, visitors will be able to enjoy a continuous scenic walk along the waterfront from Clifford Pier to the Marina Bay Sands integrated resort, the new bridge and art park, the floating platform and the Esplanade.

Fun Siew Leng (Madam)
Group Director (Urban Planning & Design)
Urban Redevelopment Authority

Source: Straits Times, 30 Mar 2010