The 12-year-old mall at the Woodlands regional centre is part of the portfolio that makes up Frasers Centrepoint Trust (FCT), which yesterday reported record third-quarter earnings.

For the three months to June 30, FCT achieved a 34.6per cent rise in income available for distribution to $16.3million. This translates to a 6.7per cent rise in distribution per unit to 2.07 cents.

During this period, gross revenue rose by 44.7per cent to $30.7million, while net property income climbed by 46.3per cent to $21.5million.

The upgrading of Causeway Point – FCT’s crown jewel – will boost income and ‘provide further organic growth in years to come’, said Dr Chew Tuan Chiong, chief executive of the manager of FCT.

Opened in 1998, the seven-storey mall has a net lettable area (NLA) of about 418,500 square feet. To unlock value, space occupied by ‘big box’ tenants, for example, Metro department store, will be reduced to 50per cent of NLA from 65per cent currently.

‘As specialty tenants pay higher rentals in view of their smaller footprint, this will help to raise average rental at the mall,’ the FCT manager said.

To improve visibility of shops and create new retail space in prime locations, escalators at the mall will be moved to more convenient areas. A new food and beverage cluster on level five will be created.

Overall, the 30-month upgrading is aimed at increasing net property income by 22 per cent to $51.5million.

A review of its third-quarter results showed that FCT was successful in raising rents. Rental from renewal and replacement leases commencing during the quarter at Causeway Point and Anchorpoint saw an average increase of 8.5 per cent over expiring leases. The occupancy rate of all its properties remains at 99.4 per cent.

FCT units yesterday fell one cent to $1.39.

Source: Straits Times, 24 Jul 2010

THE commercial investments of New Creation Church and City Harvest Church do not infringe the Urban Redevelopment Authority’s (URA) new guidelines, it has been clarified. But plans for the one-north hub and Suntec Convention Centre will have to comply with restrictions on the use of commercial space for worship, prayer and preaching.

Guidelines made public on Tuesday stated that commercial premises ‘cannot be owned by or exclusively leased to religious organisations’, raising questions over City Harvest’s minority stake in Suntec Singapore and plans to spend $310 million on a move there next year, as well as New Creation Church’s joint venture via business arm Rock Productions with CapitaMalls Asia, to build a $1 billion lifestyle hub at one-north.

In response to a BT query, URA clarified that religious groups whose business units own commercial property do not contravene the guidelines, meant to provide clarity and keep commercial space secular.

These guidelines, the URA spokesman said, concern the limited and non-exclusive use of auditoriums, function halls, convention halls and cinemas within commercial and hotel developments for religious activities. ‘It is in this context that such premises cannot be owned by, or exclusively leased to, religious organisations,’ the spokesman said.

‘The ownership of these premises can, however, be held by commercial entities of the religious organisations as these commercial entities also conduct other secular events at these premises,’ URA added. For instance, New Creation’s Rock Productions, which leases the Rock Auditorium in Suntec City from Suntec Reit, rents it out for events and meetings on weekdays.

However, both the one-north complex and Suntec Convention Centre are commercial developments, so the churches’ plans to shift worship services there in future will have to comply with the new guidelines.

Each religious entity can use up to 10,000 square metres of a commercial development’s space at any one time, for up to two days a week, while each commercial landlord cannot rent out more than 20,000 sq m or 20 per cent of a development’s gross floor area, whichever is smaller.

Current leases to religious organisations at Suntec fall within these limits. New Creation’s weekend services use The Rock Auditorium, which has a gross floor area of about 3,500 sq m, and a few other cinema halls and rooms.

Things are not as clear at the Singapore Expo, which reserved comment when contacted about compliance with the new guidelines. Currently, City Harvest rents Hall 8 (10,000 sq m) while Faith Community Baptist Church (FCBC) rents the Max Pavilion and Hall 9 (10,000 sq m each). The smaller Bethesda Community Church rents halls covering 844 sq m. The total floor space leased by these churches thus appears to exceed the 20,000 sq m limit.

But some in the property line point out that the guidelines only govern space used for religious activities – namely worship, prayer and preaching – and that the Expo’s halls are easily partitioned. FCBC also said that Hall 9 is used largely as a foyer and holding area for the congregation before and after services.

In any case, URA said on Tuesday that it will ‘exercise flexibility to allow some religious organisations sufficient time to meet the guidelines’ so as to ‘minimise disruption to their current activities’.

Source: Business Times, 24 Jul 2010

Urban Redevelopment Authority figures released yesterday showed a net increase in demand of 398,264 square feet in Q2, up about 68 per cent from the previous quarter. The Singapore office market has not seen such strong quarterly take-up since Q3 2007, when net demand of 646,000 sq ft was created.

The strong Q2 demand takes the first-half tally to about 635,000 sq ft. CB Richard Ellis is forecasting that the full-year 2010 take-up could be about 1.8 million sq ft, given that the first phase of Marina Bay Financial Centre is fully leased and pre-committed. The estimate exceeds the 1.28 million sq ft average annual take-up for the past five years (2005-2009).

‘This fast and furious recovery from the negative take-up of about 236,000 sq ft last year reflects the close correlation between economic growth and office demand,’ says CBRE executive director Li Hiaw Ho.

Roaring demand during the office market’s heyday back in 2006-2007 sent rents skyrocketing in the face of a supply shortage. This time around, there is still ample supply in the pipeline for now, with about 9.6 million sq ft in gross floor area of offices expected to be completed between Q3 this year and 2013, according to URA figures.

Says Knight Frank chairman Tan Tiong Cheng: ‘While some of this space is already pre-committed, much of it is still available. And don’t forget, some of the leasings at new buildings are a game of musical chairs being played as occupiers vacate older buildings. So right now there’s no shortage of space.’

Still, some market watchers such as CBRE’s Mr Li have been calling on the government to address the market’s concerns about a potential gap in office supply after 2013.

Knight Frank’s Mr Tan believes that the government policy would be to release office sites on a regular basis through both the confirmed and reserve lists. Under the second half 2010 Government Land Sales Programme, a white site next to International Plaza with a minimum office and hotel component is expected to be launched next week. Sites at Paya Lebar and Jurong East with minimum office components will also be made available for application under the reserve list later this year.

However, some market players are asking the government to do more and release a choice plot or two in the Marina Bay area, where Singapore’s new financial district is coming up, to cater to future demand for prime office space from international financial institutions and MNCs.

Singapore’s existing office stock may also be reduced by the removal of some ageing office blocks which are torn down for redevelopment, very often into apartments.

For example, last month, Ececil Pte Ltd received provisional permission to redevelop Aviva Building and Cecil House, two adjoining office blocks at Cecil Street, into a new project that will have 227 apartments.

Ececil is controlled by Cheong Sim Lam, whose family developed International Plaza in the 1970s. Mr Cheong is said to have bought Aviva Building and Cecil House from Yi Kai Group and Fission Group, which in turn picked up the two office blocks last year for $101 million from insurer Aviva.

Source: Business Times, 24 Jul 2010

(SINGAPORE) Parking a car in Singapore’s central business district (CBD) may seem expensive, but it still costs substantially less compared to other cities such as London and Hong Kong.

Colliers International tracked parking rates across the CBDs of 145 cities in June and found those in London to be the highest.

It would cost US$932.99 a month to park a car in the city of London.

In local currency terms, the rate had risen 2.1 per cent in the last 12 months, ‘highlighting the bounce-back in a number of financial centres’, Colliers said.

London’s West End took second place with a parking rate of US$873.50 a month.

Hong Kong was third with a CBD parking rate of US$744.72 a month.

This also made it the most expensive Asia-Pacific city for parking.

Other Asia-Pacific cities on the top ten list are Tokyo (fourth), Sydney (sixth) and Perth (seventh).

Singapore ranked low in Colliers’ survey with a monthly parking rate of US$192.89 in the CBD. In local currency terms, that increased by around 4.3 per cent year-on-year.

Colliers’ research and advisory director Tay Huey Ying believes there will be upward pressure on parking rates in Singapore.

With more offices, hotels and shopping areas coming up in the CBD, demand for parking space can be expected to increase, she said.

But the demand can be price sensitive and carpark operators and landlords should take note of that, she added.

Source: Business Times, 22 Jul 2010

Citing this as a reason, the analysts say that stocks of residential developers and older office/commercial landlords now look attractive.

Taking a contrarian view, the Credit Suisse analysts recommend a switch to the laggard stock of City Developments (CDL) from Keppel Land as the latter, a prime office proxy, has already outperformed the indices by 14-18 per cent year-to-date.

Reasons that the analysts cited in favour of CDL are: potential rerating of its large yet older office/commercial portfolio and its South Beach project; its largest low-cost residential land bank; and its 54 per cent stake in its global hotel arm, M&C, which they see as a prime beneficiary of the strong growth in the Asian hospitality markets.

Other factors cited in support of residential developers are receding policy risks, ‘given the moderate price increases’. The analysts expect investment sentiment to stay firm, given strong economic growth, low interest rates, continued population growth and residential developers’ stocks lagging the physical market.

The research report, which sees CDL as a bellwether all-round play, downgraded Keppel Land to ‘neutral’ from ‘outperform’ with a target price of $4.13, and upgraded CDL to ‘outperform’ from ‘neutral’ with a target price of $13.18.

Other property stocks on which the analysts have an ‘outperform’ call are CapitaLand, Allgreen and Wing Tai. They maintain their ‘outperform’ call on CapitaLand for its attractive valuations and believe that the concerns over its China exposure have been overdone. Allgreen and Wing Tai are favoured for their attractive land bank and big discounts to revised net asset values (RNAVs).

The analysts said that the uptake and rents of new prime office have recovered earlier than expected, driven by expansion of financial institutions (FIs) and professional services on the back of economic recovery, FIs’ flight to quality and their willingness to pay a premium, competitive rents (49 per cent discount to Hong Kong Central) and old office space conversions to residential use. As half of the new space is already pre-committed well ahead of completions, the analysts believe that average prime Grade-A rents had bottomed at $7.50-8/sq ft in 1Q10.

Source: Business Times, 22 Jul 2010

NEW government guidelines have made clear that it is all right for religious organisations to make use of commercial premises for their activities, subject to certain limits.

Christian groups have been using places such as hotel function rooms and convention centres on weekends for a number of years, as reported in the media.

From now, no more than 20,000 sq m of a commercial complex’s gross floor area (GFA), or 20 per cent of GFA, whichever is lower, may be used for religious purposes. And such activities may be held for no more than two days a week.

A religious organisation is also limited to using 10,000 sq m, which is equivalent to about 11/2 football fields. This will ensure that a religious organisation does not dominate a particular commercial complex.

In a joint statement, the Urban Redevelopment Authority (URA) and the Ministry of Community Development, Youth and Sports (MCYS) explained they were prepared to exercise some flexibility and allow commercial premises such as hotels, auditoriums, function halls, convention centres and cinemas to be used in a ‘limited, non-exclusive way’ by religious groups that hold large gatherings.

This is provided the events do not cause noise, traffic or parking problems. To protect the secular nature of the venues, there must also be no signage or religious symbols, and the interiors should not be furnished to resemble a worship hall when not used by the religious group.

The guidelines take effect immediately and apply to all religions. Religious organisations using commercial space will have to register with the URA.

The clarification of land use rules was received with relief as most churches are currently not at any risk of flouting the rules.

It is understood that the URA discussed the guidelines on Monday with representatives of the bigger megachurches – 33,000-strong City Harvest Church, 10,000-strong Faith Community Baptist Church and 20,000-strong New Creation Church – and their landlords, Singapore Expo and Suntec Singapore.

Currently, Faith Community Baptist Church and City Harvest Church use less than 10,000 sq m atthe Singapore Expo each.

City Harvest Church has also made a controversial $310 million investment to become a co-owner of Suntec Singapore and hold services in a 12,000-seat auditorium there.

Regarding City Harvest’s purchase, a URA spokesman told The Straits Times it does not regulate property ownership.

‘However, the actual use of the premises must adhere to the planning and land use zoning intentions regardless of the ownership. The contractual agreement between City Harvest and Suntec City is a private matter between the two parties,’ he said.

A City Harvest spokesman said: ‘We are currently liaising with the relevant land owners and studying the implications of the new guidelines. City Harvest will abide by the new guidelines.’

Ngee Ann Polytechnic real estate lecturer Nicholas Mak saidthe guidelines make sense.

‘Rather than let religious organisations slowly take over commercial spaces and make other users feel uncomfortable, the guidelines ensure that members of the public of all religions can use the premises,’ he said.

National University of Singapore cultural geographer Lily Kong welcomed the guidelines, saying secular spaces should not be entirely off-limits to religious groups.

‘What this new set of guidelines does is to relax the clear compartmentalisation of land use in a cautious and regulated way,’ she said.

However, Senior Pastor Lawrence Khong of Faith Community Baptist Church felt that such explicit guidelines could be restrictive and preferred leaving it to the market to ’self-regulate’.

For example, he said, it would be in landlord Singapore Expo’s interests to safeguard its commercial character and not lease all its space to religious groups.

For landlord Suntec Singapore, which currently leases space to New Creation Church, the guidelines mean ‘business as usual’.

A spokesman said: ‘We are in compliance with the guidelines set forth by the authorities.’

New Creation Church declined to comment.

Source: Straits Times, 21 Jul 2010

AVERAGE daily serviced apartment rental rates for the high-end and mid-tier segment here are expected to increase by about 5 to 10 per cent this year after sliding 22 per cent for the whole of last year, says Savills Singapore.

The property consultancy’s index for serviced apartment rents in the segment reflects a 2.9 per cent quarter-on-quarter increase in Q1 2010. On average, daily rates ranged from $260-320 for mid-tier and high-end service apartments in Q1 2010. In a report on the Singapore serviced apartment market released yesterday, Savills noted that demand prospects are generally looking positive while supply is relatively stable.

‘Going forward, the economy is likely to see firmer growth with many multinational companies expecting to increase their headcount this year. The latest survey by Hudson, a US-based employment services firm, shows that 51 per cent of the 400 companies surveyed intend to hire in Q1 2010, an increase from 34 per cent in Q4 2009. This could lead to a larger pool of expatriates working in Singapore in the coming quarters,’ Savills said.

There are currently about 50 developments with a total of over 4,600 serviced apartments in Singapore. In the next four years (up to 2014), a further supply of about 1,200 units from eight developments are expected to enter the market, including the 300-unit Modena Singapore, 305-unit Park Avenue Residences Changi (both at Changi Business Park) and 370-unit Park Avenue Suites Rochester at Fusionopolis.

The average occupancy rate for high-end and mid-tier serviced apartments stood at 86 per cent in Q1 this year, reflecting a 1.5-percentage point rise from the preceding quarter and a 15.7-percentage point surge from the same period last year amid the economic recovery.

During the global financial crash, when many MNCs scaled back their operations in Singapore, the occupancy rate slipped from 89 per cent in Q3 2008 to a low of about 70 per cent in Q1 2009.

Savills noted that during the past two years, more high-end serviced apartments have come onto the market, including Ascott Raffles Place Singapore, Pan Pacific Serviced Suites and Orchard Scotts Residences. Asking rents for one-bedroom units can range from $16-20 per square foot per month.

‘Highlights at the Pan Pacific Serviced Suites include grocery delivery, luggage packing services, a selection of pillow and bath menus and a 20-metre swimming pool filled with mineral water,’ Savills noted in its report.

While most (81 per cent) of serviced apartments on the island are well located in prime districts, the industry is seeing a rising trend in the number of serviced apartments being built in the city fringe or suburban areas, especially near new regional hubs or commercial zones.

Most of these comprise mid-tier serviced apartments or budget serviced apartments with monthly asking rents of $10-13 psf or $6-7 psf respectively for a one-bedroom unit. An example is Fraser Place Fusionopolis, which opened last year to serve expats working at the biomedical, infocomm and media hub of Buona Vista’s one-north.

Currently, Far East Organization has the lion’s share or 24.8 per cent of Singapore’s stock of serviced apartments. Far East’s serviced apartments inventory is spread across more than 10 developments.

The Ascott Ltd, including Ascott Residence Trust, is in second position, with a 20.5 per cent share, followed by Frasers Hospitality Pte Ltd (9.7 per cent), Allgreen Properties (6.3 per cent) and Tan Chong Realty (5.1 per cent).

Source: Business Times, 21 Jul 2010

In January, the trust’s manager had already revealed that it had obtained outline planning permission (OPP) from the Urban Redevelopment Authority to change the use of the property to residential (capped at 80 per cent of gross floor area) and commercial use from its current zoning of purely commercial use. The StarHub Centre site has a balance lease term of about 85 years.

The sale took place after an expression of interest exercise followed by a private tender.

Besides Frasers Centrepoint, other parties that took part in the bidding process are said to have included GuocoLand.

What was probably the deal clincher for Frasers Centrepoint is that it did not make major conditions or seek provisions which would give it the right to rescind the purchase of the property. CCT’s manager in its release last Friday said StarHub Centre’s sale was not subject to any additional planning or redevelopment approval of any kind following the OPP.

Also, the transaction was not subject to approval for a top-up of the site’s lease, although it revealed that on July 13, Singapore Land Authority gave in-principle lease upgrade approval to top up the site’s lease to 99 years. Frasers Centrepoint also did not require that CCT fulfil the conditions of the in-principle lease upgrade approval.

More options

Frasers Centrepoint could afford not to demand such conditions because of its trump card – majority ownership of the next-door Centrepoint Shopping Centre. The latter fronts the Orchard Road shopping belt and gives Frasers Centrepoint more options than any other bidder that had vied with it for StarHub Centre, which is tucked behind Orchard Road and faces the Central Expressway.

With or without a lease upgrade for StarHub Centre and a redevelopment to a mostly-residential scheme, Frasers Centrepoint can tap more synergies from owning the two properties.

Currently, there is already a second-storey link between the two properties. If SLA proceeds to top up StarHub Centre’s lease to 99 years and URA gives the formal nod for the redevelopment of the property into a mainly residential scheme (60 to 80 per cent of gross floor area or GFA) with some commercial space, Frasers Centrepoint can do retail for the balance commercial component (which has to be 20 to 40 per cent of GFA according to the OPP) and integrate it better with Centrepoint Shopping Centre in front.

The residential component could be in the form of apartments – perhaps smallish units that can be sold at relatively high per square foot prices to help fund the retail portion of the redevelopment.

Who knows, the group could even seek and get permission from the authorities and build serviced apartments for the residential component since it has a serviced residences arm.

Frasers Centrepoint can also endure the risks in the event that the authorities don’t give the final approval for a lease top-up or if the lease upgrading premium Frasers Centrepoint has to pay the state does not make the lease extension an economically viable option. It may not even be too perturbed if URA does not give further planning approvals for the residential-commercial scheme stated in the OPP. If such a scenario materialises, Frasers Centrepoint may still find it worthwhile to redevelop StarHub Centre into a new full-retail project as an extension to Centrepoint Shopping Centre, which fronts Orchard Road.

Deal waiting to happen

Any other developer would be stuck if a lease upgrade is not granted since it would be difficult to redevelop and build a residential component and hope to sell apartments with 80-plus years’ remaining lease. Redeveloping StarHub Centre on the balance lease term into a full-commercial project may not be workable either. As a shopping centre, it is unlikely to do well because of its location, hidden behind the main shopping belt.

Building offices may also not be an attractive venture as office rents in the location are below those in the financial district. As a DMG & Partners Research report notes, ‘at the peak of the office market StarHub Centre had an average passing rent of below $5 psf a month, significantly lower than most schemes in the Raffles Places and Tanjong Pagar vicinity’.

That was probably why CCT came to the conclusion that StarHub Centre had reached its optimal stage of life cycle as an office building.

CCT’s manager was not keen on exposing the trust to the risks in the residential market by undertaking, either solo or on a joint-venture basis, a redevelopment of StarHub Centre into a predominantly residential project.

Even if the trust had sold the asset to its parent, CapitaLand, the latter would not have had as many options as Frasers Centrepoint does. Put simply, CCT’s sale of StarHub Centre to Frasers Centrepoint was a deal just waiting to happen.

Source: Business Times, 21 Jul 2010

(SINGAPORE) The government has clarified the extent to which commercial spaces can be used for religious activities.

The guidelines, which apply with immediate effect, include caps on how often religious activities can be held at commercial venues and how much space they can use in such buildings at any one time.

No more than 20,000 square metres or 20 per cent of any commercial development’s gross floor area (whichever is lower) can be considered for religious use. And each religious group can only use up to 10,000 sq m of commercial space at any one time.

Also, commercial premises cannot be used for religious activities for more than two days a week, including the weekend.

Owners of convention centres must also ensure that the religious use of their facilities does not compromise the staging of other events over weekends, the Urban Redevelopment Authority (URA) and the Ministry of Community Development, Youth and Sports (MCYS) said yesterday.

These premises ‘cannot be owned by or exclusively leased to religious organisations’ and ’should be available to be rented out for other commercial events such as seminars, conferences and performances’, the guidelines said.

Questions had been raised earlier over whether recent investments by the New Creation Church and City Harvest Church (CHC) into commercial spaces constitute a ‘change of use’ of sites zoned for commercial rather than ‘place of worship’ use under URA’s Master Plan.

New Creation’s Rock Productions has a joint venture with CapitaMalls Asia to build a $1 billion lifestyle hub at one-north, which will have retail outlets, a concert hall and a theatre when ready in 2012. New Creation, which intends to hold church services there in future, yesterday said it would not be responding to media yet.

CHC said in March that it would spend $310 million on a minority stake in Suntec Singapore, rent and renovation costs, to move its weekly services from Singapore Expo to the convention centre next year. It told the media earlier that it would not have exclusive use of any area in Suntec.

A CHC spokesman said yesterday that the church is ‘liaising with the relevant land owners and studying the implications of the new guidelines’, adding that it would abide by these and provide a substantive reply in due time.

URA and MCYS’s joint statement said the guidelines are meant to allow flexibility for the limited religious use of commercial premises, while ensuring that their key use and character are not eroded. The idea is to make sure commercial spaces ‘remain secular spaces that can be enjoyed by people from all segments of society’, it said.

Currently, several groups lease commercial venues for regular religious services.

Singapore Expo leases Hall 8 to CHC and the Max Pavilion and Hall 9 to Faith Community Baptist Church (FCBC) on weekends. Each of these halls is 10,000 sq m in size, according to Singapore Expo’s capacity sheet. But FCBC told MediaCorp that it would not be affected by the new guidelines.

Rock Productions, the business arm of New Creation, leases the Rock Auditorium in Suntec City from Suntec REIT. Its Sunday services utilise the Rock Auditorium, which covers less than 3,500 sq m, as well as cinema halls and other overflow rooms in Suntec City.

URA said it receives requests from religious organisations to use commercial space for their activities ‘from time to time’ and has approved some of these proposals on a case-by-case basis. Now, guidelines are being made known to ‘provide greater clarity to religious organisations and building owners on what can and cannot be allowed within commercial developments’, the URA spokesman said.

Both Suntec REIT and Suntec Singapore, current landlords of organisations renting for religious use, agreed that the guidelines make clearer the extent to which religious use of commercial spaces is permissible. Suntec Singapore’s spokesman added: ‘We have provided organisations equal access to our venue for their activities. We will continue to do so in line with the spirit of the guidelines.’

Chandran Nair, deputy general manger of Singex Venues, managing company of Singapore Expo, said: ‘We are in full awareness and acceptance of the new guidelines. It is business as usual at Singapore Expo and we will continue to work with the authorities to ensure compliance.’

No records are kept of the total number of religious groups currently renting commercial premises for their activities, but URA said that those doing so on a regular basis are ‘advised to submit their proposed use together with the building owner’s consent to URA for consideration’.

It added that it is prepared to ‘exercise flexibility to allow some religious organisations sufficient time to meet the guidelines, or up to the expiry of their current licence or lease period in order to minimise disruptions to their current activities’.

Other rules laid down yesterday govern the appearance of premises being used for religious activities. No signs, advertisements or posters of the religious events can be displayed, and premises cannot be furnished to look like a worship hall. When not in use by the religious group, the venue should have no religious symbols, icons or paraphernalia too.

URA said that it does not regulate property ownership, but the actual use of premises must adhere to planning and land use zoning intentions regardless of ownership.

Source: Business Times, 21 Jul 2010

The guidelines were jointly issued by the Urban Redevelopment Authority (URA) and the Ministry of Community Development, Youth and Sports (MCYS).

Under the guidelines, sites zoned for “Commercial” use in URA’s Master Plan are intended for commercial activities should serve as secular spaces for all.

Religious activities should be conducted at sites zoned “Place of Worship”.

While religious activities are generally not allowed in commercial buildings, URA said it is prepared to exercise some flexibility.

Commercial premises can be used by religious groups if the usage is limited and non-exclusive as long as it does not cause disturbances such as noise, traffic or parking problems.

Examples of spaces in commercial and hotel developments include auditoriums, function halls, convention centres and cinemas.

Also, only existing approved auditoriums, function halls, convention halls and cinemas located within commercial and hotel developments can be considered for non-exclusive and limited religious use.

Further, there will be a size limit.

The maximum space within a commercial development that can be considered for religious use should not exceed a total Gross Floor Area (GFA) of 20,000 square metres or 20 per cent of total GFA of the development, whichever is lower.

Each religious organisation is limited to use up to 10,000 square metres in any commercial space at any one time.

The authorities said this is to ensure that a single religious organisation does not dominate a particular commercial development by taking up a very large amount of space.

In addition, the premises cannot be owned by or exclusively leased to religious organisations.

The use of the commercial space for religious activities should also not exceed two days a week including Saturday and Sunday.

There shall be no display of signage, advertisements or posters of the religious use at the premises or on the exterior of the building.

The building owner and the religious organisation must also take appropriate measures to ensure that the activities do not cause disturbances to the public.

Source: Channel News Asia, 20 Jul 2010