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A good urban plan must have impact and give a sense of excitement, says Jeffrey Ho, executive vice-president of home-grown Surbana Urban Planning Group, which has won global planning awards

HOME-GROWN Surbana International Consultants, which used to be part of the Housing Board (HDB), is well-known for winning architecture awards for its work in designing and building Singapore’s public homes.

But elsewhere in the global arena, Surbana has also carved out a name for itself. It has fought off competition from international firms to win awards and clinch contracts to create masterplans for various projects, and even whole cities.

Surbana’s urban planning arm, Surbana Urban Planning Group, has traversed far and wide to draw masterplans for diverse locations including China, the Middle East, Indonesia, Sri Lanka, South Africa and Cambodia.

Some of Surbana’s masterplans to have won international awards include those for Tianjin Port Island in China, the Van Chuong New Urban Area in Vietnam and Greater Doha in Qatar.

Q What defines masterplanning and what do you consider when planning a new town or project?

A A masterplan is actually a physical plan that defines land uses in a specified area.

More specifically, in our context, it is called urban planning.

This requires a multi-disciplinary group of professionals to put together plans, perspectives, scale models, computer- generated animation and written reports.

There are many aspects of a site that urban planners need to understand before any masterplan can be developed. These aspects are related to existing conditions such as: land uses, transport, landscape, community values and traditions, climatic conditions, constraints, environmental quality, vibrancy and the general feel of the place as a whole.

Q What does the work of urban planners entail?

A A masterplan can take three months to a year to complete.

We develop the plan through site visits and meetings with the relevant authorities, local businessmen, academics, fellow consultants and stakeholders. We also review documents, statistical reports and so on.

We go beyond being a tourist in the country that we are planning for. We have to live and breathe the country.

Sometimes, I find urban planning quite intuitive. Once you understand the place, you have a knack for knowing what goes where.

There is a pattern and formula you can apply, but you need to adapt it to the local context. For urban planning, there is no one fixed approach.

Q What challenges do you face and how do you tackle these issues?

A Sometimes being an Asian firm is a disadvantage as we are competing with very established European firms. But this does not deter us. Rather, it sharpens our professional and negotiation skills.

We started small but we have tried as much as possible to get international exposure. Slowly, after doing more projects and getting a proven track record, we have started to gain a reputation. It’s a very steep learning curve but we are getting there.

Also, Singapore has a tight labour market, which makes it hard to find good and committed people - and cost is high.

Q How different is it working overseas?

A Language can sometimes be a big problem in places such as Vietnam and Cambodia. You need a translator, and sometimes the essence and meaning of words get lost in translation.

Then other things you have to consider include how to find the right place to get the information you need, understanding the political situation of various countries and being able to respond to changes in government policies. Basically, we have to be more flexible.

Q So what makes an iconic masterplan?

A A good urban plan must be what I call ‘imageable’. You have to look at it and go ‘wow’. It must have impact and make you feel a sense of excitement.

If it is well-composed, you also get a certain feeling of ‘comfortability’.

Some key aspects of an iconic plan are: attractiveness, convenience and efficiency.

Our projects in the Middle East are examples of mega and iconic masterplans. One of them is the Al Salam City Masterplan that we did in 2006 - it is a 2,000ha site in Umm Al Quwain - one of the emirates of the United Arab Emirates.

Our clients were so satisfied that they have engaged us to implement the masterplan.

From there, we went on to clinch the biggest masterplan project with the Qatar government: a 4,000 sq km planning of two municipalities.

Most of the Middle East projects are done on a clean slate with hardly any constraints. And here lies the golden opportunity for us to showcase our creativity, capabilities, knowledge and skill in delivering a project on time and meeting international standards.

Q What are some current global trends in urban planning?

A The biggest buzzword now is sustainability. Everywhere you go, people are ‘going green’. Future urban planning will place special emphasis on eco-friendliness.

Environmental issues have always been part of our urban- planning philosophy. But now more than ever, this needs to be expressed physically in our plans, and in the landscape too, using green spaces and green technology.

There are two major trends on top of this - one is the desire to create a ‘must visit’ destination that attracts investment and people.

The masterplan must have that ‘wow’ factor I talked about, that differentiates the location and helps it stay ahead of other developments. This is more prevalent in the Middle East.

In other places like China, the other trend is more apparent - that of using the masterplan to focus on solving issues such as traffic congestion, environmental pollution, housing needs, growing population and the need to conserve.

Q Which is your most memorable project?

A I have to say the next project will be the most memorable one, because you start all over again. Every project is interesting so I can’t really single out any one.

But for me, the greatest job satisfaction is actually the interaction with my clients. If they are really enlightened and are open to ideas, the whole development process becomes very stimulating and inspiring.

jcheam@sph.com.sg

NEXT WEEK: THE SUNDAY TIMES SPEAKS TO AWARD-WINNING LANDSCAPE ARCHITECT HENRY STEED

Follow your intuition

‘I find urban planning quite intuitive. Once you understand the place, you have a knack for knowing what goes where. There is a pattern and formula you can apply, but you need to adapt it to the local context… There is no one fixed approach.’

MR HO, on the work of an urban planner

Industry trends

Sustainability

Future urban planning will place special emphasis on eco-friendliness, says executive vice-president Jeffrey Ho of Surbana Urban Planning Group. Environmental issues have always been part of the firm’s urban-planning philosophy. But now more than ever, this needs to be expressed physically in its plans, and in the landscape too, says Mr Ho, using green spaces and green technology.

Creating a ‘must visit’ destination

Such a masterplan must have a ‘wow’ factor that differentiates the location and helps it stay ahead of other developments, says Mr Ho.

Issues-based approach

In some places like China, the masterplan is used to focus on solving issues such as traffic congestion, environmental pollution, housing needs, growing population and the need to conserve.

Source : Sunday Times - 2 Mar 2008

Average industrial rates up 16.8%, muted increases for most other uses.

THE government yesterday announced modest, lower-than-expected increases in development charge (DC) rates for most use groups, except industrial.

‘Limited transactions in the past six months, amidst cautionary sentiment set about the US sub-prime debacle, were probably an important factor for the moderate gains this round,’ said Jones Lang LaSalle regional director and head of investments Lui Seng Fatt.

Knight Frank director Nicholas Mak said: ‘The government may feel that there has been no significant appreciation in land prices in the last few months.

‘And DC rates for most use groups - such as commercial, non-landed residential and hotel/hospital - were already at a higher base because of substantial hikes in the last revision.

‘Industrial DC rates, on the other hand, had seen only a marginal rise the previous round and hence saw the sharpest increase this time.’

DC rates, which are payable for enhancing the use of some sites or putting bigger developments on them, are revised twice yearly, on March 1 and Sept 1, and are listed according to use groups and 118 locations across Singapore.

From today, the average DC rate for commercial use has gone up 1.5 per cent - after the 42 per cent increase in the last round on Sept 1, 2007. The average rate for non-landed residential use has been raised 2.6 per cent, again much smaller than the 58 per cent hike previously, while the average rate for landed residential use has been left unchanged.

For hotel and hospital use, the latest DC rates are up 3.3 per cent on average, compared with a 23 per cent hike previously.

Industrial DC rates have jumped 16.8 per cent on average, against a 2 per cent rise previously.

JLL’s Mr Lui said that the big hike in industrial DC rates is in tandem with growing demand for backoffice space as more firms relocate out of the CBD due to high rents.

For industrial DC rates, the biggest hike of 33.3 per cent was in the Jurong/Lim Chu Kang/Kranji location, which analysts attributed to JTC Corp’s sale of two industrial sites at Jalan Tepong and Pioneer Road/Tuas Avenue 11 at about double the land values implied by the previous September 2007 industrial DC rate for the area.

Similarly, the sale of an industrial plot at Commonwealth Drive/Lane at about four times the September 2007 DC rate-implied land value was probably behind a 32 per cent hike yesterday in the industrial DC rate for the area.

Industrial DC rates were raised by 22.2 per cent each in the Kallang Way/MacPherson/Aljunied, and Braddell/Potong Pasir/Woodleigh areas, based on JLL’s analysis. The rate for West Coast Road/Jurong East was upped 20.7 per cent. Increases of 20 per cent were seen in locations such as Havelock Road, Telok Blangah, Tiong Bahru, Bukit Merah, Redhill, Alexandra and Henderson.

Commercial DC rates stayed put in Raffles Place, Marina Bay, Cecil Street and Robinson Road. Instead, the hikes were mostly outside the central business district, ‘reflecting the trend of office demand being pushed out of the CBD’, Savills Singapore director Ku Swee Yong said.

The biggest increases, of 25 and 23.3 per cent, were in the Toa Payoh/Potong Pasir and Paya Lebar/Eunos areas respectively. The sale price of a 99-year commercial plot next to the HDB Hub in Toa Payoh in October and rising rents at SingPost Centre in Paya Lebar were likely reasons for the increases.

The Marine Parade and Tampines locations each saw a 19 per cent appreciation in commercial DC rates, apparently supported by the sale price of an office unit at Parkway Parade, and rental evidence at Tampines Mall and buildings in the Tampines Finance Park.

For non-landed residential DC rates, the biggest gain of 28.6 per cent was in Ang Mo Kio/Yio Chu Kang as well as an adjoining sector that covers Upper Thomson and Sembawang Hills. Far East Organization’s $601 psf per plot ratio top bid for a condo site next to Ang Mo Kio Hub in September last year - a record for 99-year suburban condo land - was the likely reason for the rate hikes.

The Telok Blangah and Tiong Bahru/Ayer Rajah locations each saw hikes of 22.2 per cent in non-landed residential DC rate. CB Richard Ellis executive director Li Hiaw Ho said that the increases were probably supported by the $639 psf ppr fetched for a 99-year condo site on Alexandra Road last year. Mr Li also pointed to the sale of a freehold site on Margate Road as the likely reason for a 21.4 per cent rate hike in the Mountbatten/Meyer/Broadrick area.

For hotel use, gains of around 9-10 per cent were seen in DC rates for the traditional hotel belts in the Orchard Road, Marina Centre and Singapore River locations, as well as places like Marina Bay, Bayfront and Fullerton Road.

‘The tourism boom is expected to continue as the Singapore government drives towards the 17 million visitors goal by 2015. Orchard Road remains Singapore’s main shopping belt, while upcoming developments in the Marina area such as the Marina Bay Sands integrated resort and the F1 race will further generate demand for hotels in the area,’ Mr Lui said.

The DC use group for hotels also includes hospitals and interestingly, the government did not raise the DC rate for the Irrawaddy Road location where a hospital site last month fetched a record price of $1,600 psf ppr from Parkway group.

A spokeswoman for the Chief Valuer said: ‘Parkway’s record bid was an isolated case. In general, there’s no compelling evidence that market values for hotel/hospital use in the area have moved up so much.’

Source : Business Times - 1 Mar 2008

THE Urban Redevelopment Authority (URA) has launched the second phase of Sembawang Greenvale after auctioning all parcels in Phase One last October.

In the first phase, 12 sub-divided landed housing plots near Sembawang Beach were auctioned for a total of $37.09 million, which works out to about $285 per square foot (psf) of land on average.

Phase Two comprises 11 land parcels for a total of 90 dwellings. Most of these will be terrace houses.

Knight Frank director (research and consultancy) Nicholas Mak says new terrace houses in the area are now selling for $1.7 million to $2 million.

The median unit price for landed housing in District 27, where Sembawang is located, increased 12 per cent quarter-on-quarter in Q4 2007, he said. ‘Therefore, in terms of bidding price, we expect the average land price of Greenvale Phase Two will be higher than that of Phase One.’

Mr Mak expects that terrace plots will fetch about $320-380 psf of land, and semi-detached plots about $300-350 psf of land.

Cushman and Wakefield managing director Donald Han believes demand for landed property will stay sound this year. But he also reckons current sentiment - hurt by the US sub-prime crisis - could see potential bidders for Sembawang Greenvale Phase Two discount their offers in the light of rising risks.

As such, he thinks bids could be 5-10 per cent below those received for Phase One.

Mr Han still believes there will be interest in the parcels, especially those that can yield more units, as developers will be able to ‘average down’ construction costs and increase profit margins.

Separately, URA said yesterday it has launched an industrial land parcel at Ubi Avenue 4/Ubi Road 2 for sale by public tender, after a developer committed to bid at least $14 million in early February.

Colliers International managing director Dennis Yeo estimated earlier that bids for the site could come in at $70-80 psf per plot ratio, translating to a breakeven cost of about $230-250 psf.

Source : Business Times - 1 Mar 2008

Listed companies report sparkling results; 2008 may be a different story.

The results have been good, but the celebrations are on hold.

While many companies here can point to healthy report cards for their fourth quarter and full-year results, the market is not excited. Instead, investors look ahead to the challenges that could affect corporate profits in the year ahead.

The weakening US dollar and the uncertain economic outlook will have a negative bearing on earnings going forward, analysts said.

For 2007, 398 listed companies reported combined net profits of $36.3 billion. The total profits for 382 companies with year-on-year comparisons jumped 46.4 per cent to $35.7 billion.

During the Oct-Dec quarter, 227 companies reported their quarterly results, chalking up total net profits of $12.5 billion. Of these, the 215 companies who could compare their performance with the same quarter last year marked a 73.3 per cent rise in net profit to $12.15 billion.

‘Despite strong profits, the market is not responding,’ Westcomb Securities research head Goh Mou Lih said. The Straits Times Index, which has been recently tracking external factors more than earnings newsflow here closed 47.7 points down to 3,026.45 yesterday.

‘People are looking forward, instead of looking at the released numbers. They are expecting weaker earnings on concerns over the US economy and factoring in a higher risk premium,’ he added.

Some analysts are already lowering their earnings forecasts for this year.

‘Revenue growth will definitely slow as the economy slows and earnings would likely come under pressure this year,’ Citi economist Kit Wei Zheng said. ‘It’s probably going to be more challenging environment with costs pressures building up and margins will probably be squeezed on some fronts.’

Local banks reported a combined net profit of $6.46 billion for the full year, down 5.6 per cent from a year ago. OCBC, the smallest lender, reported the biggest percentage gain of 3.4 per cent to $2.07 billion. DBS recorded a 0.4 per cent increase to $2.28 billion, while UOB posted an 18 per cent fall in net profit to $2.11 billion.

But each of them saw a decline in their fourth quarter earnings from a year ago due to further writedowns for their exposure to collateralised debt obligations (CDOs).

‘I think CDOs are behind us. We will probably see very good loan volumes coming through given that both the IRs (integrated resorts) have syndicated credit facility of $5 billion each, and that should show up in the next few quarters,’ CIMB-GK research head Kenneth Ng said. ‘But margins should be something to watch out for,’ he added, pointing to the likelihood of further Fed rate cuts that could lower interest rates here.

Property developers still held up well in the fourth quarter on fair value gains and brisk residential sales despite the US subprime fallout, with major developers still racking double-digit and triple-digit jumps in net profit.

For the full year, CapLand’s net profit surged 172.5 per cent to $2.76 billion, the highest profits made by any Singapore-listed company last year. KepLand’s net profit for 2007 grew a staggering 289 per cent to $779.65 million and CityDev’s net profit more than doubled to $724.99 million from $351.66 million.

Analysts said they expect property developers, particularly those with strong financials, to delay residential launches to fetch better prices. KepLand has confirmed that it has pushed back the launch of Marina Bay Suites, while CapLand, which has little stock of unsold homes, said it will not delay its residential launches in Singapore this year.

CIMB-GK’s Mr Ng said he expects developers to continue rolling out mass market projects for which demand is reportedly strong, while holding back launches of high-end ones.

Meanwhile, oil and gas players were also buoying on robust order books last year. Among them, Keppel Corp’s net profit for 2007 leapt 50.6 per cent to $1.13 billion, Cosco Corp’s added 63.9 per cent to $336.57 million and Yangzijiang’s jumped more than two-fold to $171.29 million from $89.51 million.

Though SembCorp Marine’s fourth quarter net profit tanked 99.2 per cent to $790,000 on allgedly unauthorised forex transactions, its earnings for the full year was still up 1 per cent at $241 million on higher turnover and operating margins.

While index-linked companies generally performed well, some Singapore-listed Chinese firms disappointed the market in the face of rising costs pressures. Steel maker Delong Holdings’ net profit sank 29 per cent last year to $93.76 million and Pine Agritech posted a 19 per cent decline to $85.79 million.

The weakening US dollar also continued to trigger translational losses for tech companies whose earnings are dominated in US dollars. Unisteel Technology saw 2007 net profit fall 6 per cent to $47.5 million from a year ago after forex losses offset the growth in its revenue. Hi-P managed to pull out a 4.4 per cent gain in earnings to $60 million, despite incurring a forex loss of $5 million.

Source : Business Times - 1 Mar 2008

UIC and SingLand to pay $41.3m and $82.5m in dividends respectively.

UNITED Industrial Corporation (UIC), which counts Singapore Land as a subsidiary, has racked up $1.68 billion worth of valuation gains for the 2007 financial year, taking its net profit to $1.17 billion, more than double 2006’s $492.1 million.

Key buildings like Singapore Land Tower at Raffles Place and Marina Bayfront at Raffles Boulevard have both increased by over 70 per cent in value.

Singapore Land Tower is now worth $1.49 billion, up from $868.4 million a year ago, while Marina Bayfront is now worth $70 million, up from $40 million a year ago.

UIC’s portfolio, which includes other properties like The Gateway at Beach Road and Marina Square, is now valued at about $5.48 billion, up from about $3.77 billion a year ago.

The valuations were done by DTZ Debenham Tie Leung.

In its financial statement for FY2007 released yesterday, UIC said that net profit of $1.17 billion comprised $123.6 million from operations and $1.05 billion from fair value gain on investment properties .

Revenue for the year was up 62 per cent to $528.4 million, and was attributed to higher sales of residential properties and revenue recognition on a percentage of completion basis, contributions from Pan Pacific Singapore Hotel (Panpac), and higher rental income.

Gross rental income for FY2007 was up 17.6 per cent to $226.1 million while gross revenue from sales of properties (held for sale) increased by 131 per cent to $157.6 million.

Gross revenue from hotel operations was $77.9 million.

In the year, UIC’s Marina Centre Holding acquired the remaining 50 per cent interest in Hotel Marina City, which owns the Pan Pacific Singapore hotel.

UIC reported that earnings per share (EPS), excluding net fair value gain, were 9 cents for FY2007, up from 5.5 cents. Including net fair value gain, it was 85.3 cents, up from 35.7 cents.

SingLand, which also released its full-year results for 2007 yesterday reported a fair value gain of $1.46 billion.

Net profit for the year was $1.36 billion, up from $100.4 million a year ago.

Revenue increased by 34 per cent to $271 million for the year. It was attributed to the contribution from Panpac and higher rental.

SingLand said that gross rental income of $187.4 million increased by 20 per cent or $30.6 million.

While net profit was $1.36 billion, SingLand said that $137.5 million was derived from operations and $1.22 billion was from fair value gain on investment properties .

Excluding fair gain, EPS was 33.3 cents per share, up from 24.3 cents. Including fair value gain, EPS was 329.1 cents, up from 24.3 cents.

Singland directors have proposed a first and final dividend of 20 cents per share, amounting to $82.5 million, while UIC directors have proposed a first and final dividend of 3 cents per share amounting to $41.3 million.

Source : Business Times - 1 Mar 2008