Allco REIT gets go-ahead to build hotel at China Square Central

Allco REIT gets go-ahead to build hotel at China Square Central

 

SINGAPORE : Allco Commercial REIT has been given the green light to build a 10-storey hotel with about 350 rooms at China Square Central.

 

The Urban Redevelopment Authority (URA) has granted Allco REIT permission to add 16,000 square metres of gross floor area to the development in the central business district.

 

The development currently consists of a 15-storey office block and 38 conservation shop house units.

 

Allco REIT has also been granted permission to convert some existing car parks into office space.

 

The URA approval is valid for six months starting from the end of June. – CNA/ms

 

Source: Channel NewsAsia

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Millennium & Copthorne New Zealand completes Auckland hotel deal

Millennium & Copthorne New Zealand completes Auckland hotel deal

 

SINGAPORE : Millennium & Copthorne Hotels New Zealand said it has completed its purchase of the Copthorne Hotel Auckland Harbourcity.

 

But in a filing to the Singapore Exchange, it said the price of the deal was confidential.

 

Millennium & Copthorne is funding the purchase with cash and a new loan facility.

 

The area around the Copthorne Hotel Auckland Harbourcity is now a focal point for entertainment and access to the Waitemata Harbour.

 

Millennium & Copthorne Hotels and Resorts now has three owned or leased properties in Auckland.

 

It also recently clinched a short-term management agreement for the Metropolis Hotel Auckland. – CNA/ms

 

Source: Channel NewsAsia

Suntec REIT secures S$400m to refinance its bridging loans

Suntec REIT secures S$400m to refinance its bridging loans

 

SINGAPORE: Suntec REIT has secured a S$400 million loan to refinance its bridging loans.

 

It will be carried out through an unsecured club loan facility from a panel of banks.

 

The facility is for a period of three years.

 

The loan will help Suntec refinance an outstanding loan after its acquisition of one third of the One Raffles Quay building in the central business district.

 

With this new deal, Suntec REIT will not need additional refinancing until financial year 2009. – CNA/vm

 

Source: Channel NewsAsia

URA puts up Ophir-Rochor Road for sale by public tender

URA puts up Ophir-Rochor Road for sale by public tender

 

SINGAPORE: The Urban Redevelopment Authority (URA) has launched a white site for sale in the Ophir Rochor corridor.

 

The announcement did not come as a surprise, as the government had already indicated it will be sold under the confirmed list of the land sales programme.

 

The 2.7 hectare site is expected to be a mixed use cluster, acting as a connector between the existing financial district and the historical centres of Kampong Glam and Beach road.

 

The site has a gross permissible floor area of 160,000 square metres.

 

The winning bidder has to set aside 40 per cent of the site for office use, with at least another 15 per cent for hotel related activities.

 

In the future, the site will also have direct basement access to the new East-West rail line, through the upcoming Bugis Interchange MRT station.

 

Analysts are expecting a land cost of up to 1.5 billion Singapore dollars, translating to between 850 Singapore dollars and 900 Singapore dollars per square foot of gross floor area.

 

Rents in the area are expected to be between 8 Singapore dollars and 10 Singapore dollars per square foot.

 

The URA has said it will continue to release more land in the Ophir Rochor area over the next five to 10 years in tandem with market demand. – CNA/vm

 

Source: Channel NewsAsia

HDB launches 2 new BTO housing projects in Punggol and Sengkang

HDB launches 2 new BTO housing projects in Punggol and Sengkang

 

SINGAPORE : Two new HDB housing projects have been launched in Punggol and Sengkang under the Build-To-Order System on Monday.

 

Altogether, the two projects, Punggol Breeze and Fernvale Residence will offer 1,587 Premium flats, comprising 55 three-room, 1,222 four-room and 310 five-room flats.

 

As an average indicator, the price for a four-room flat at Punggol Breeze ranges from S$223,000 to S$278,000, while a similar flat at Fernvale Residence could cost between S$207,000 and S$275,000.

 

Source: Channel NewsAsia

Office property market slowing in Q2

Office property market slowing in Q2

 

SINGAPORE : Singapore’s office property sector market appears to be cooling a little.

 

According to property consultant DTZ, the average office occupancy rate for the second quarter of this year saw a dip of 0.2 percentage point.

 

Office rental prices have also been flat – suggesting that the market is resistant to rising prices.

 

According to DTZ, the average office occupancy rate in the second quarter dipped to 96.9 per cent.

 

It said the slide was spurred by tenants seeking cheaper locations when their leases expired.

 

Chua Chor Hoon, Senior Director, Research, DTZ, said, “Our second quarter figures show that it has eased very slightly, by 0.2 percentage point, which reflects the office occupier’s resistance to the high rentals in the CBD, and also partly (because) of the slower economy. Companies are now more cautious and they are taking a longer time to think about expansion and renewal.”

 

Despite the overall dip, areas just outside the CDB saw higher occupancy rates – with the Novena and HarbourFront areas hitting 99 per cent.

 

At the same time, office rentals climbed by 1.1 per cent – with locations like Raffles Place now going for an average of S$19 per square foot a month.

 

The report showed that businesses have been looking to alternative locations like business parks, and temporary office locations to tide them over until new office locations open up in 2010.

 

At the moment, business park rentals cost about half, or a third of what can be found in the CBD.

 

Some companies may find it more cost-effective to stay in these alternative locations, but DTZ believes there will still be demand when the new supply comes on-stream.

 

Ms Chua said, “There will be new demand to take on the new office space, and even if the economy slows down this year and next year, we are likely to see it coming back in 2010. That’s when it also coincides with a few major events and developments that are going to take place, like the integrated resorts, and the Youth Olympics, and that is going to give the economy a boost.”

 

The DTZ report also showed that industrial sector demand remained stable – despite a weakening manufacturing sector – due to foreign investment. – CNA/ms

 

Source: Channel NewsAsia

Katong Mall sold to Tuan Sing Group for S$219m

Katong Mall sold to Tuan Sing Group for S$219m

 

SINGAPORE : Katong Mall has been sold in a collective transaction to property developer Tuan Sing Group for S$219 million.

 

Including a premium of S$24.5 million to top up the site’s lease, the price works out to about S$865 per square foot of gross floor area

 

The tender for the 99-year leasehold commercial development in the Marine Parade area was launched in May.

 

Katong Mall, located at the junction of East Coast Road and Joo Chiat Road, is currently a four-storey building with three basements.

 

Under the Master Plan, the 78,158 square foot site is zoned for commercial use.

 

It has a gross plot ratio of up to 3.6 with the allowable building height subject to evaluation.

 

Outline planning permission has been obtained for either a full commercial development or a mixed development with residential and commercial space.

 

The new development could yield some 100 residential units of 1,200 square feet each, and 185 commercial or retail units with an average size of 400 square feet. – CNA/ms

 

Source: Channel NewsAsia