(SINGAPORE) Australian developer Lend Lease beat five other offers with its top bid of $748.9 million for a 1.9-hectare mixed-use site in the Jurong Lake district.

Its bid works out to $650 per square foot per plot ratio (psf ppr) – more than twice the minimum price asked for when the tender for the site was launched two months ago.

Lend Lease, which owns the 313@somerset and Parkway Parade shopping malls here, is expected to build a retail mall on most of the site.

The developer edged out CapitaLand’s retail unit CapitaMalls Asia, which made the second-highest offer of $728.8 million or $632 psf ppr. Lend Lease’s bid is just 3 per cent higher.

The other bids came from a consortium made up of Far East Organization, Frasers Centrepoint and Japan’s Sekisui House; another consortium comprising Keppel Land, Guthrie International and Max Platinum; Sim Lian Land; and China’s Qingdao Construction.

Lend Lease’s bid is 79 per cent higher than the lowest bid of $418 million, or $363 psf ppr, from Qingdao Construction.

The 99-year-leasehold site, in Jurong Gateway Road next to Jurong East MRT Station, has been on the government’s reserve list since November 2008. It was launched for tender in April after an unnamed developer committed to bid at least $350 million, or $304 psf ppr.

The site is the first plot put up for sale in the Jurong Lake area since the masterplan for the area was unveiled two years ago.

The fact that there were six bids shows developers are keen on well-located sites, said CBRE Research executive director Li Hiaw Ho. ‘The bids are also a very clear indication of the developers’ confidence in the government’s vision for the Jurong Lake district and the evolution of the area as a commercial hub in the west of Singapore,’ he said.

The plot is classified as a ‘white’ site, which means it can be put to commercial, residential or hotel use. A mandatory 30 per cent of the gross floor area will have to be set aside for office development, but it is likely that a suburban retail mall will be developed with the remaining 70 per cent of space, analysts said. Lend Lease could also choose to build some apartments.

Colliers International’s director for research and advisory Tay Huey Ying said: ‘Based on the bid price, the highest bidder is likely to be looking at a development with a predominant retail component to capitalise on the site’s location next to Jurong East station, and the large residential and working population catchment of Jurong town.’

Using the offer price of $650 psf ppr and assuming an office and retail complex is built on the plot, CBRE estimates a gross development value of $2,200 to $2,400 psf for the retail mall and $1,000 to $1,200 psf for the office component.

Source: Business Times, 25 Jun 2010

Transformed estate may have 35,000 flats, about as many as Toa Payoh

PUNGGOL is set to become as big as Toa Payoh.

The remaking of the coastal town is on track, and the crown jewel of the estate, the first waterfront public housing development in the country, will be launched for sale next week.

Giving an update on the makeover yesterday at a Housing Board exhibition, Senior Minister of State for National Development Grace Fu said that by 2015, there could be 35,000 flats in the estate, up from the current 18,000 residential units already built. This is on a par with the number of homes in Toa Payoh, based on HDB’s annual report last year.

Jointly designed by international architectural firm Group8asia and local firm Aedas, the first batch of Punggol waterfront flats will sport solar panels and rooftop gardens, among other green initiatives.

The area will also soon welcome a new town centre, where the first mixed commercial and residential development site will be launched in the second half of this year.

A 4.2km waterway running through the heart of the neighbourhood, that connects Sungei Punggol and Sungei Serangoon, is also estimated for completion by the end of the year.

Adding a little touch of Punggol’s seafaring past, parts of the waterway and promenade will feature sandy coasts.

Other highlights include a sports activities area and horse riding centre that will be up and running by the year end.

Ms Fu said the array of facilities on offer makes the estate part of ‘a premium housing project that targets a niche group of buyers who are prepared to pay more for its signature attributes’.

When asked about the prices of such luxury public housing, an HDB spokesman said that prices will be revealed only during next week’s launch.

But realtor PropNex told The Straits Times that the first batch of waterfront flats would, on average, probably fetch around $350,000 for a four-room flat and $400,000 for a five-room flat.

These figures are based on estimates without information on the range of flat sizes, but taking into consideration the various views corresponding to unit location. According to the designs, about 80 per cent of the flats in the first phase of the project will command waterfront views.

PropNex’s analysis found that these prices are still lower than the median re-sale price tags for Punggol flats, which currently stand at $369,000 for a four-room flat and $430,000 for a five-roomer, according to data from the first quarter of this year.

One home buyer keen to take to Punggol’s waterways is Mr Wu Da Wu, 35, who took a day off work to view yesterday’s exhibition.

‘It looks great, and with the surrounding water, it’s very soothing – I wouldn’t mind paying a little more for a home that is different from anywhere else at this price.’

Speaking of how the Punggol project is changing the face of Singapore’s housing estates, Ms Fu said: ‘They mark an important milestone in HDB’s town planning and the evolution of public housing design.

Source: Straits Times, 23 Jun 2010

Singapore, Malaysia PMs to meet again after studying matter further

PUTRAJAYA: The prime ministers of Singapore and Malaysia will meet again in three months’ time to finalise details of a land swop deal linked to Malayan Railway land in Singapore.

Prime Minister Lee Hsien Loong and his Malaysian counterpart, Datuk Seri Najib Razak, emerged from an hour-long meeting here yesterday to announce that both sides were going to study the matter further before finalising the deal.

Both leaders stressed that they wanted to see the matter through.

‘It is something we want to clear expeditiously. Three months means the end of September, it will be soon after Hari Raya Aidilfitri. I think that is a good moment to have a final settlement of this matter,’ said Mr Lee at the joint press conference.

Mr Najib, in turn, said he was looking forward to going to Singapore for the ‘final resolution’ of the matter.

The land swop is the only outstanding issue left unresolved on the contentious Points of Agreement (POA) signed in 1990.

If both countries can find common ground in the next three months, it would mean closure on one of the oldest bilateral issues dogging Singapore-Malaysia ties.

The first breakthrough in negotiations came at a retreat in Singapore last month when both sides agreed to, among other things, move the existing railway station in Tanjong Pagar to Woodlands by July next year.

The railway land left behind could then be jointly developed by both countries, or it could be returned to Singapore and land of equivalent value elsewhere jointly developed instead.

National Development Minister Mah Bow Tan was in Kuala Lumpur last week presenting details of land parcels that Singapore is offering in the swop. These are in the Marina South and the Rochor/Ophir areas. Various combinations were offered to Malaysia.

Mr Lee said yesterday that Malaysia had certain comments on the land parcels, which Singapore will consider over the next three months.

Underlining the enormity of the swop involved, he said: ‘This is a major decision. Malaysia will think it over further, and Singapore will take back the comments which Malaysia has made and consider them.’

Officials from both sides are likely to be meeting to fine-tune the proposal in the next three months.

Yesterday, both sides declined to elaborate on the elements of the land swop.

POA aside, the two also agreed to lower toll charges at the Second Link by 30 per cent from Aug 1.

The highway, linking Tuas to Johor, is currently underused as toll charges are substantially higher than those at the Causeway.

Both prime ministers spoke affirmatively of their discussion, with Mr Lee calling it a ‘useful exchange’ and Mr Najib saying it was very warm and positive.

Said Mr Najib: ‘I thank PM Lee for being as flexible as possible with the intention that there will be a final resolution of the POA.’

He hosted dinner last night for Mr Lee and the Singapore delegation.

The Singapore team included three ministers: Mr Mah, Foreign Minister George Yeo and Law Minister K. Shanmugam.

Mr Lee returned to Singapore late last night.

Political observers interviewed yesterday were optimistic that despite the delay, a final resolution would be reached.

Former Nominated MP Zulkifli Baharudin said it was an achievement that talks had progressed so far.

‘Most of the principles of the agreement have been carved out. What’s left is probably the basis and the quantum of the valuation (of the land parcels),’ he said.

Mr Manu Bhaskaran, a council member of the Singapore Institute of International Affairs, was similarly hopeful that an agreement could be reached.

He said: ‘There are strong and compelling reasons for both countries to set aside their differences and show the world that we have moved on from the period of ill-tempered differences to one where we can resolve issues in a sensible and mutually beneficial manner.’

Source: Straits Times, 23 Jun 2010

PMs to discuss valuation, swap proposal in KL

(SINGAPORE) Singapore and Malaysian leaders are expected to follow up on the valuation of Malaysian railway land here and the proposal for a land swap when they meet in Kuala Lumpur today.

The meeting between Singapore Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak comes barely a month after the two leaders met at a ‘Leaders’ Retreat’ in Singapore.

The two leaders had emerged from last month’s talks announcing a breakthrough in the impasse over the Points of Agreement signed in 1990. Big strides were made towards resolving the dispute over land owned by the Malayan Railway in Singapore.

The two prime ministers told reporters that they had agreed to move the existing railway station from Tanjong Pagar to the Woodlands train checkpoint by July 1, 2011. They had also sorted out how the redevelopment of the railway land left behind would be dealt with.

Last month’s meeting further led to an agreement to set up a rapid transit system linking Johor Baru and Singapore by 2018. And the link is to be integrated with public transport system on both sides.

With an agreement on the Tanjong Pagar KTM station finally reached, the focus is now on developing the six parcels of Malayan Railway land. The land – with one parcel each in Tanjong Pagar, Kranji and Woodlands and three in Bukit Timah – is said to worth billions of dollars.

Singapore and Malaysia have already agreed to set up a company called M-S Pte Ltd to jointly develop the land. To be established by December at the latest, MS will be 60 per cent owned by the Malaysian government’s investment holding arm Khazanah Nasional Berhad, with the remaining 40 per cent stake held by Singapore investment company Temasek Holdings.

One of the first step that could be taken, which Mr Lee suggested last month, is to obtain an updated valuation of the KTM land and make an offer to Mr Najib to swap the six land parcels for land of equivalent value in Marina South near the Marina Bay Sands integrated resort and/or the Ophir-Rochor area.

Mr Lee had said that he would make a trip to Kuala Lumpur in June to make such an offer to the Malaysian leader.

Singapore’s Ministry of Foreign Affairs indicated yesterday that Mr Lee would be accompanied during the one-day working trip by Foreign Affairs Minister George Yeo, National Development Minister Mah Bow Tan and Law and Second Home Affairs Minister K Shanmugam.

It said that Mr Lee’s meeting with Mr Najib is ‘to follow up on bilateral issues discussed during the Singapore-Malaysia Leaders Retreat’ in May.

A similar statement issued by Malaysia’s Ministry of Foreign Affairs, while saying there would be a ‘four-eye’ meeting between the two leaders, also added that they ‘are expected to follow up on the valuation of lands and the proposal of the land swap’ discussed last month.

Source: Business Times, 22 Jun 2010

PUTRAJAYA: Prime Minister Lee Hsien Loong will meet his Malaysian counterpart, Datuk Seri Najib Razak, here today to discuss terms for a land swop linked to Malayan Railway (KTM) land in Singapore.

If they succeed in ironing out details of the land swop, both countries will finally break the impasse over the railway land issue that has dogged ties for 20 years.

Today’s meeting between the two leaders was announced by the foreign ministries of the two countries in separate statements yesterday.

The Singapore statement said it was to follow up on the bilateral issues the leaders had discussed in Singapore last month.

During those talks, a breakthrough was achieved when both sides agreed, among other things, to move the existing railway station in Tanjong Pagar to Woodlands by July next year.

After the relocation, the land owned by Malayan Railway in Singapore would be jointly developed.

Six parcels of land are involved – one parcel each in Tanjong Pagar, Kranji and Woodlands, and three in Bukit Timah.

There is an option, however, to swop these parcels of land for land of equivalent value in the Marina South and the Ophir-Rochor areas.

Mr Lee, in explaining last month the need for a separate meeting to iron out the terms of the proposed land swop, had observed that Singapore’s property market has been ‘quite active’ and that both sides should obtain updated valuations.

Based on its new valuation, Singapore will make Malaysia an offer today.

It will be up to Malaysia to decide if it wants to accept the offer, Mr Lee had said last month.

The joint development of the land parcels, including the railway land, will be undertaken by a company to be set up by the end of this year.

To be called M-S Pte Ltd, the company will be 60 per cent owned by Khazanah Nasional Berhad, the investment holding arm of Malaysia, and the remainder 40 per cent will be held by Singapore investment company Temasek Holdings.

Commenting on Mr Lee’s working visit, the Malaysian Foreign Affairs Ministry said in its statement yesterday: ‘The visit will also further strengthen bilateral relations between the two countries.’

It also said Mr Lee will co-chair the ‘four-eyes’ meeting with Mr Najib, and added: ‘Both prime ministers will subsequently hold a joint press conference.’

In the evening, Mr Najib will host Mr Lee and the Singapore delegation to dinner.

Accompanying Mr Lee on his one-day visit are three ministers and officials from various ministries, said the Singapore statement.

The trio are Foreign Affairs Minister George Yeo, National Development Minister Mah Bow Tan and Law Minister and Second Minister for Home Affairs K. Shanmugam.

If an agreement is reached today, a high-level joint team will sort out the implementation details.

From there, a written instrument will be produced to be signed by both countries upon approval of their respective governments.

Source: Straits Times, 22 Jun 2010

Singapore and Malaysia expect to conclude a deal on exchanging land parcels between both sides in three months. The prime ministers of both countries met in Putrajaya, Malaysia on Tuesday.

One outcome is that they agreed to reduce the toll charges for motorists using a link which connects the countries.

The meeting was a follow-up on their retreat in Singapore last month.

A key item – details on how both countries will exchange land parcels following the Malaysian railway station’s move from Singapore city centre at Tanjong Pagar to a location closer to the border at Woodlands by 1st July 2011.

Singapore’s Prime Minister Lee Hsien Loong said: “I have made the prime minister a proposal laying out several variations for the prime minister to choose from. He has raised some issues which we are in discussion. As the prime minister said we aim to settle within 3 months.”

Mr Najib gave the assurance that the concept of joint development remains.

Malaysian Prime Minister Najib Razak said: “The spirit of our discussion today was very warm, very positive and I thank Prime Minister Lee for being as flexible as possible with the intention that there will be a final resolution of the POA issue.

“Our positions would still be to look at the land swap – the parcels of land with respect to Marina South and Ophir-Rochor, the details of which will be considered. And we will convey to the Singapore government in due course within the 3-month time frame. So the whole concept of joint development still remains.”

Being discussed – three land parcels in Tanjong Pagar, Kranji and Woodlands and three others in Bukit Timah could be swapped for land of equivalent value in the Marina South and Ophir-Rochor area.

Both leaders said they had a productive meeting on the land swap offer and discussed some initial response.

Prime Minister Lee revealed that he had sent up Singapore’s National Development Minister Mah Bow Tan a few days ago to present the land swap proposal to the Malaysian leader and Malaysia has been studying the proposal for the past few days.

PM Lee added: “I have brought up with me an offer on the land swap issue which is the only outstanding issue on the POA. In fact I had sent up Minister Mah Bow Tan a few days ago to convey the offer to the Prime Minister and explain the offer.

“So Malaysia has been looking at it for the last few days and I had a useful exchange with the Prime Minister today and we exchanged some preliminary perspectives and views.

“But this is a major decision so Malaysia will think it over and Singapore will take back the comments Malaysia has made and we will consider them and we look forward to settling the matter within three months.

“It should be settled soon because it is something we want to clear expeditiously. Three months meaning the end of September, it will be soon after Hari Raya Aidilfitri, so I think that’s a good moment to have a final settlement of this matter.”

The good news is the reduction of toll charges by 30 per cent from August for motorists using the second link which connects both countries.

Passenger cars for example currently pay RM10.80 and S$4.60 respectively to use the second link and that’s set to go down even further.

The leaders feel this will boost traffic.

PM Lee continued: “It is good news for Singaporeans going to Malaysia and Malaysians coming to Singapore. And may many more Singaporeans and Malaysians do so.”

Mr Lee said other issues like the use of Malaysian airspace and withdrawal of CPF monies by Malaysians working in Singapore would be progressively resolved.

That’s because the focus of their meeting was the POA, something both sides decided as a priority.

Source: Channel News Asia, 22 Jun 2010

The iconic stretch of black-and-white bungalows from 29 to 35 Scotts Road will soon get a facelift, with more buzz expected as it has been earmarked by the Singapore Land Authority (SLA) for redevelopment into a lifestyle belt.

Among the new tenants that can occupy the colonial-style bungalows following the redevelopment include those that operate beauty services, health and fitness stores, bridal and wedding outlets, as well as restaurants.

This means existing tenants that operate businesses that fit the criteria and concept of the new belt may opt to stay on at the premises while others, such as those that operate office units there, may have to move out soon.

About 15 tenants currently occupy the 16,500 square metre land area and each bungalow has a built-in area of about 300 to 550 square metres.

Among the tenants that are operating there now include The Song of India restaurant, which occupies 33 Scotts Road, and the SK-II Boutique Spa at No 35.

While these tenants fall within the approved list of tenants that can occupy the bungalows in future, they are still required to submit a fresh tender bid.

The lease of all units there expires in September and an SLA spokesperson told MediaCorp that “there are plans to launch them (the bungalows) for tender by end June”.

“Current tenants interested in such uses will be invited to participate in the tender as well,” the SLA spokesperson added.

The bungalows’ managing agent DTZ said most tenants are glad to participate in the tender, as they are operating beauty or food and beverage (F&B) businesses and so far, they had no major objection on the redevelopment.

Tenants whose businesses do not suit the new lifestyle concept can bid for the space if they adapt or change their businesses accordingly, said DTZ property manager Keh Peng Leong.

When asked about the likely rent these bungalows will fetch following the redevelopment, Mr Keh said that the current market value of the area and the redevelopment’s details are still being worked out.

Market experts said this move is timely as it will serve the nearby Cairnhill Road area, which is fast becoming a luxury condominium stretch.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said new apartments in the area are attracting many high-net-worth individuals.

For instance, The Urban Suites, located less than a kilometre away from Scotts Road, was sold for between $2,400 and $2,800 per square feet.

The redeveloped bungalows will draw very niche businesses as the entire land area is quite small. Clientele-wise, outlets there will draw sophisticated individuals who prefer the colonial vibe of the place, said Mr Tan.

“By itself, it has no critical mass of shops to be a hub destination by itself. The services there have to be very niche, unlike a big shopping centre,” he said, who estimates rentals for that area will be $25 per square feet for an F&B outlet.

Source: Today, 31 May 2010

THE valuation of land owned by Malayan Railway (KTM) in Singapore will be completed within a month, Khazanah Nasional’s managing director Azman Mokhtar said yesterday.

‘Then we’ll work out commercially what is the best thing to do,’ Mr Azman told reporters in Kuala Lumpur.

Khazanah and Singapore’s Temasek Holdings, which will set up a joint company to develop the land, have already met and set up a working group, he said.

Asked if the valuation would be based on Singapore market rates, he said it was being done by independent parties and each side would present its own valuation.

‘Some numbers have been mentioned but it is certainly substantial,’ he said.

Mr Azman said the resolution of the decades-long railway land dispute was a ‘breakthrough’ for the two countries.

‘It is not like I win, you lose, it is we both win. If you look at it carefully, the exchange is fair, it is good,’ the Khazanah chief said.

He said he did not expect the issue of valuation to bog down the intended development of the KTM land.

‘We need to see the valuation by both sides. The intention is to move forward,’ he said, adding he hoped the matter could be concluded when Prime Minister Lee Hsien Loong visits Malaysia later next month.

BERNAMA
Source: Straits Times, 28 May 2010

Despite 2 years of notice, tenants say it’s hard to relocate

SEVERAL businesses at Jalan Kayu are caught in a bind, partly of their own making: Their leases are due to expire at the end of the year, and they are having poor luck looking for new sites.

The 18 tenants at Seletar West Farmway 2, 4, 5, 6 and 7 – 16 plant nurseries, a kindergarten and a halfway house – were told as early as two years ago that they would have to go.

But they could relocate to only Government-approved locations, and most have had a hard time finding alternative sites.

The Straits Times understands that only two have managed to set up shop elsewhere. The others are still looking, but most say they are resigned to closing down if their searches prove futile.

The 20ha plot – roughly the size of 13 football fields – has been slated for new roads and industrial development.

When contacted, the Singapore Land Authority (SLA) said it had given the tenants ample notice. It added that tenants have been told several times to move. But the affected businesses countered that they have tried, but have been unsuccessful in their searches for new locations.

The nurseries, especially, said their businesses require large tracts of land of more than a hectare in size. The tenants also said cost was another factor. The going rates for sites up for tender were much more costly – about 20 times higher, they said.

‘We need space and approved land. This makes it really difficult to find a new location,’ said Mr Patrick Tan, who manages a 1.2ha nursery owned by Far East Orchids. ‘I am searching like crazy, but there is nowhere to go.’

The 48-year-old currently pays $2,000 a month in rent. He said he had considered a 3ha plot of land in Queenstown that the Government put up for tender recently. ‘But after calculations, I realised there was no way I could afford the $35,000 rental per month,’ he said, adding that he is unsure of his next move.

The owner of Yee Peng Orchid Nursery Ho Wai Ron, 50, has decided what to do: He will give up his 26-year-old business.

‘Land is so scarce here and our leases keep expiring and we have to move again and again,’ said Mr Ho, who said the company has moved four times so far. ‘It is too disruptive.’

The SLA said it is working closely with other government agencies on the possibility of a further extension.

‘But tenants are aware that they will have to move if this is not possible,’ said its spokesman.

Source: Straits Times, 27 May 2010

All eyes on site at Tanjong Pagar as observers sketch out the possibilities

(SINGAPORE) Just a day after the prime ministers of Singapore and Malaysia announced that six Malaysia- owned land parcels here would be jointly redeveloped, the market was abuzz with the possibilities awaiting these prime plots of real estate estimated to be worth billions of dollars.

The ‘crown jewel’ among them is a 16-hectare site in downtown Tanjong Pagar, sitting just a stone’s throw from the Republic’s busy financial district. The area is also where the 78-year-old Keretapi Tanah Melayu (KTM) railway station is currently located. It will be shifted to the Woodlands Train Checkpoint by July next year.

Property veteran Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic, said that one possibility for the railway building – which will be conserved because of its historical significance – could be to turn it into a historical hotel similar to the iconic Fullerton Hotel in Raffles Place.

‘The site and the surrounding areas where the railway tracks run are very large. By my own estimates we could be looking at several million square feet of potential built-up area,’ he told BT yesterday. ‘We could see a combination of offices, shops, retail space, as well as some apartments and condominiums. I wouldn’t be surprised if the land is eventually carved up into several smaller parcels.’

Prime Minister Lee Hsien Loong is now awaiting an updated valuation of the railway land, after which he will visit his Malaysian counterpart Najib Razak in Kuala Lumpur next month to discuss the swap of the railway land for other real estate in Singapore.

Between them, the six parcels of land span more than 200 hectares, according to Malaysian media reports. Apart from Tanjong Pagar, the other land parcels include one each in Kranji and Woodlands, and three in Bukit Timah.

Cushman & Wakefield managing director Donald Han said that it would make sound business sense for Malaysia to consider swapping Tanjong Pagar for a more urban and developed location such as the Ophir-Rochor area because of the greater potential in enhancing people connectivity.

‘The Rochor area has hotels and shopping centres. So there is complementary potential for Malaysia to build and create more attractions for their citizens who want to come to Singapore,’ said Mr Han.

While not much is known about exactly where the land parcels in Kranji or Woodlands are, two of the three Bukit Timah sites are likely to be a vacant plot and another that is currently housing workers’ quarters near Methodist Girls’ School, said Mr Mak. Both are likely to be used for residential purposes owing to their small size.

On Monday, Mr Lee and Mr Najib announced that a new private company set up by the two countries’ sovereign wealth funds – Khazanah Nasional and Temasek Holdings – will take charge of the Tanjong Pagar land and five other sprawling plots.

Mr Mak ventured that the joint company, called M-S Pte Ltd, could well decide to allow private developers to take charge of building up the land once the master plan is completed. ‘It’s a much neater way to do things. The company decides what to do with the land, and then sells it in an open tender afterwards. This is a cleaner way to extract the highest value from the land with minimum hassle,’ he said.

Efforts to contact KTM yesterday for comments were unsuccessful. Singapore’s Foreign Affairs Ministry, which is handling all local media queries regarding Malaysia’s railway land, was unable to respond to BT’s queries by press time.

Source: Business Times, 26 May 2010