Residential

Private home sales increase in Feb

Singapore’s new private home sales were reported to increase in February 2014, but are expected to slow down this month due to the cautious mood and limited new launches. As of last month, 724 new private homes were sold including top selling projects outside the central region (OCR), compared with 565 in January and 712 in February 2013. 45 executive condominiums (ECs) were sold last month, the same as January. 671 units were launched last month, compared with 549 units in January. Alan Cheong, Savills Singapore research head, said that the Lakeville Project in Jurong West of MCL Land may bring the total sales in March up to 650 units. Without this, sales in March could be as low as below 350 units.

(Source: Business Times)

Commercial

Premium and Grade A office rents increase in Q1, 2014

Colliers International said that premium and Grade A office rents in Raffles Place and New Downtown increased in 1Q2014, as office vacancies declined and companies actively reviewed expansion and relocation options to keep the rents before they rose. Asia Square Tower 2 also saw its 200,000 sq ft of space being committed in the past six months. Mizuho and Westpac signed up for 105,000 sq ft and 38,000 sq ft, while Mercuria Energy Trading, Scor RE, Nikko Asset Management and Platinum Equity Partners signed up for 21,000 sq ft, 20,000 sq ft, 17,000 sq ft, and 4,000 sq ft respectively. Tower 2 had an occupancy rate of 60 percent, while it was 90 percent for Tower 1. Six whole floors of 30,000 sq ft each are available in Tower 2, and three floors of 35,000 sq ft each are left in Tower 1, with monthly asking rent standing at $18 psf.

(Source: Business Times)

700 Beach up for sale as a hotel

After acquiring the boutique office block 700 Beach earlier this year, Master Contract Services has decided to sell it on a completion basis including 300 hotel rooms and an assignment of a management contract with  the United Kingdom’s Whitbread group that would operate the hotel under the Premier Inn brand. Master Contract was reported to expect $1 million per room for the hotel, or a $300 million in total. The total development cost of the hotel could be $180-$190 million. 700 Beach is between Golden Mile Complex and Golden Mile Tower, and is near Nicoll Highway MRT Station.

(Source: Business Times)

RB Capital to renovate two of its assets

RB Capital is reported to be renovating its Gallery Hotel along Robertson Quay and the retail podium of The Quayside, which costs about $50-70 million to bring more energy and excitement along the Singapore River. This would result in 100,000 sq ft of prime lettable retail space, 80 food and beverage outlets with the two properties’ river frontage of more than 200 metres. The renovation is expected to finish in early 2016. RB Capital’s 442-room Holiday Inn Express Clarke Quay will also start trading soon. All three assets total $1 billion for the property group.

(Source: Business Times)

Vision Exchange on sale

Sim Lian Group’s integrated development Vision Exchange has been put on sale on March 22. Vision Exchange has a 99-year leasehold, 25-storey office tower with two levels of food & beverage (F&B) space and medical suites, and is understood to be one of the few strata offices in Jurong Regional Centre. It will have 740 units sized 183-1,690 sq ft upon its completion in 2018 with a total gross floor area of about 690,000 sq ft. 640 out of the 740 units are office units, 47 are F&B units and 53 are medical suites. In this first phase, 250 units will be released with average prices of $2,150 psf for office units, $4,498 psf for medical suites and F&B units.

(Source: Business Times)

Two warehouse in Tampines on sale

Architecture and interior design firm HC Design has put two adjacent multi-storey warehouses at 21 and 23 Tampines along Street 92 on sale by expression of interest (EOI). The two slots are on a Government Land Sales (GLS) site, with a 30-year leasehold tenure from the Urban Redevelopment Authority since July 9, 2007 and will be zoned for “Business 2” or heavier industrial use. The total indicative price for these two properties is about $70 million. They stand on a site of about 214,880 sq ft, with an allowable gross plot ratio of 1.4, or $235 psf ppr.

(Source: Business Times)

Medical suites to attract more investors

Medical suites are reported to attract more and more interest from property investors, and are now seen as alternative asset classes. These suites are meant for medical usage and traditionally sold mainly to doctors. Some developers said that about 30 percent of new suites which are being developed will go to investors, as they are not affected by cooling measures and are good investment assets in the long run. Knight Frank and Jones Lang LaSalle (JLL) estimated that there are about 1,400 medical suites in Singapore. Their prices have been increasing recently. For instance, the average price of medical suites at Mount Elizabeth Hospital was about $7,100 psf in 2013, compared with only $5,000 psf in 2010.

(Source: Business Times)

Blackstone may sell StarHub Green

The world’s largest alternative asset manager Blackstone is reported to consider the sale of StarhubGreen in Ubi Avenue 1 which it bought two years ago for SGD$215 million. StarhubGreen is now mainly occupied by StarHub Ltd, Singapore’s biggest broadband Internet and cable TV operator for 220,000 sq ft out of its total 405,000 sq ft, alongside engineering services company Boustead Singapore and independent non-hospital based Quest Laboratories. Rents at industrial properties were reported to increase 5 percent in Q4 2013, and rentals of multiple-user factory and warehouse space also went up 3.5 percent and 5.4 percent from last year.

(Source: Business Times)

Mapletree Industrial Trust develops facility for HP

Mapletree Industrial Trust (MIT) is reported to be developing a built-to-suit (BTS) facility for Hewlett-Packard Singapore. The facility will be at MIT’s Telok Blangah Cluster property and will cost $250 million including construction and other costs but excluding the book value. This will be MIT’s biggest BTS development, which will reposition the property to higher-value industrial use and maximise current plot ratio as well as strengthen MIT’s high-tech building segment and BTS track record.

(Source: Business Times)

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