Residential

Developers more cautious in EC bidding

Analysts say that developers are now showing more caution in bidding for executive condominium (EC) sites after the tender for a 99-year leasehold site at Canberra Drive. The highest bid out of six bidders was $226 million, or $350.04psfppr, from a joint venture between Verwood Holdings, a unit of City Developments, and TID Residential. This bid was in line with earlier estimates of between $320 and $380 psfppr, and was 4.4 percent higher than the second highest of $216.5 million, or $335.33 psfppr, from MCL Land (Brighton).

(Source: Business Times)

Completed condo prices dropped in 2013: NUS

According to the National University of Singapore’s Overall Singapore Residential Price Index (SRPI), prices of completed non-landed private homes decreased 0.6 percent for the whole of 2013, compared with an increase of 4.2 percent in 2012. This drop followed the previous five consecutive month-on-month declines. The biggest decrease was the SRPI for Central Region (excluding small units), or districts 1 to4 (including the financial district and Sentosa Cove) and the traditional prime districts 9, 10 and 11. The sub-index for Non-Central Region (excluding small units) increased 0.9 percent, while that for small apartments (up to 506 sqft) also increased 2.8 percent in 2013. The index rose 8.7 percent in 2011, 11.7 percent in 2010 and 22.7 percent in 2009.

(Source: Business Times)

Braddell View for privatization

The Ministry for National Development (MND) announced that HUDC estate Braddell View with 918 flats and two shops, the last of 18 HUDC estates, has been designated for privatisation. The estate’s managing committee will have to get the requisite 75 percent mandate to privatise, and then harmonise the leases for the estate because Braddell View was developed in two phases on two separate land leases with different expiry dates. So the land lease of the older land parcel will have to be topped up to be on a par with the newer one with a required payment of land premium – the amount of which will be determined by the Chief Valuer Office.

(Source: Business Times)

Commercial

700 Beach sold for $120m

Eight-storey boutique office block 700 Beach has been sold for about $120 million and the buyers are planning to redevelop the 18,400 sqft site into a 15-storey hotel with about 300 rooms. The development is currently located between Golden Mile Complex and Golden Mile Tower and near Nicoll Highway MRT Station with a balance lease term of 89 years. The buyers are reported to have had negotiations with UK hospitality group Whitbread to manage the proposed hotel under Whitbread’s Premier Inn brand. Premier Inn is one of the UK’s biggest budget hotel chains with a market capitalisation of about £6.9 billion (S$14.5 billion), and also operates restaurants and coffee shops.

(Source: Business Times)

Half stake sold in Finexis Building for $2,300 psf

An offshore fund is reported to have bought a half-stake in the 12-storey freehold office block Finexis Building at 108 Robinson Road for $123.8 million, or $2,300 psf on the building’s strata area of 53,830 sqft, close to its total net lettable area. Back in 2011, another offshore fund acquired the other 50 per cent in Finexis Building for $110 million, or $2,043 psf on strata area. Both transactions were conducted through a sale of shares in Robinson Land Pte Ltd, which owns the property.

(Source: Business Times)

MBFC owners win property tax refund appeal

The owners of Marina Bay Financial Centre (MBFC) Towers 1 and 2 won an appeal to recover $6.9 million in property tax refunds. The Court of Appeal ruled that vacancy refunds extend to fitting-out periods; and that BFC Development, after having secured tenants for a number of units in MBFC, was entitled to vacancy refunds including renovation period because the units were deemed unoccupied, and neither the owners nor the tenants had obtained any beneficial use of the property. Given the removal of the property tax refund provision for vacant properties from Jan 1, 2014, the property owners can still claim vacancy refunds for the period between Nov 1, 2012 and Dec 31, 2013, including for the fitting-out periods.

(Source: Business Times)

Prudential Tower deal draws different views

The potential deal of Prudential Tower on Cecil Street has drawn different views from analysts. Although it has been previously considered a possible divestment target for Keppel Reit (K-Reit), the Reit management announced that it is too early to comment, and that it may consider the possibility of divesting one of its older assets to partially fund the Marina Bay Financial Centre (MBFC) Tower 3 acquisition if there is such a transaction. Earlier, Bloomberg reported that the Reit had raised a $531 million, or $2,400 psf, price on its 30-storey Prudential Tower, which is 8.3 percent higher than its valuation of $490 million as of end-2013.

(Source: Business Times)

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