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It will work with Kerry Holdings, Kerry Properties on the commercial, residential projects

ALLGREEN Properties of Singapore is set to move into China in a big way with seven commercial and residential developments together with Hong Kong publicly listed companies Kerry Holdings and Kerry Properties. All the companies are controlled by Malaysian tycoon Robert Kuok.

The projects, which have a total investment amount of 29.3 billion yuan (S$5.73 billion), will be in the cities of Hangzhou, Chengdu, Qinhuangdao and Shenyang.

In a statement released yesterday, Allgreen said that this was in line with the group’s strategy to expand regionally, especially in China, which it views as a ‘long-term growth market’ providing ‘growth and recurrent income’.

Allgreen said: ‘In addition, the group will also be able to better allocate assets to ride out any downturn in the Singapore economy.’

The projects will mostly be residential but hotel, offices and commercial properties can also be expected. These projects also represents the group’s fourth investment in China.

Allgreen appointed Savills while Kerry Properties appointed DTZ Debenham Tie Leung to carry out valuations of the sites and the agreed property value was about 8.64 billion yuan.

Based on the agreed property value, the outstanding land cost and the non-property net asset value of the joint venture companies, the aggregate consideration payable by Allgreen for its acquisition of the equity interests in the joint venture is estimated to be about 967 million yuan.

Allgreen said that the group will fund the project by internal funds and/or external borrowings.

The statement also noted that the group’s aggregate maximum total investment amount in the joint venture is 6.98 billion yuan, representing about 96.2 per cent of its latest net tangible assets as at Dec 31, 2006.

No development time frame was given for the projects.

There is a mixed-use development planned, comprising hotel, offices, retail podiums and apartments on a 67,374 sq m site near West Lake in Hangzhou with a total investment amount of 5.34 billion yuan and Allgreen will hold a 10 per cent stake.

Also in Hangzhou will be a residential development on a 104,521 sq m site at Xiacheng District with a total investment amount of 1.83 billion yuan, of which Allgreen will hold a 35 per cent stake.

Another residential development is slated for Chengdu’s Hi-Tech Industrial Development Zone. To be built on a 46,130 sq m site, it will have a total investment amount of 1.38 billion yuan, of which Allgreen will have a 25 per cent stake.

Allgreen will also hold a 25 per cent stake in a second residential development on a 38,617 sq m site in Chengdu’s Hi-Tech Industrial Development Zone with a total investment amount of 1.16 billion yuan.

In Qinhuangdao, Allgreen will hold a 10 per cent stake in a mainly residential development on a 113,393 sq m site in the West Section of Hebei Street, Haigang District with an investment amount of 2.2 billion yuan.

Also in Qinhuangdao is another residential development on a 92,250 sq m site at the West Section of Hebei Street, Haigang District with an investment amount of 1.35 billion yuan, of which Allgreen will have a 10 per cent stake.

A mixed-use development has been planned for the 172,694 sq m site on the East Side of Qingnian Street, Shenhe District in Shenyang with a total investment amount of 16 billion yuan. Allgreen will take a 30 per cent stake in this project.

Source : Business Times - 7 Dec 2007

It will address historical anomaly that allowed some landowners to avoid paying fees.

A SIMPLER way of calculating development charges will kick in from next year.

The net effect is that the Government is set to collect slightly more in the form of these charges, which are paid by landowners who want to enhance a site’s value - for example by redeveloping an existing project into a bigger one.

However, not all landowners will be affected. The impact on the market as a whole is expected to be minimal, involving perhaps 2 per cent of private land, or about 1,700 plots, said the Urban Redevelopment Authority (URA) yesterday.

The URA has also added safeguards to help those landowners who are affected by the change.

Broadly, the owners concerned own land that have very high development baselines, thanks to decades-old master plans. A development baseline is the highest maximum floor area allowed under master plans released in 1958 or 1980, or under an existing development already on the site.

These old master plans gave properties in some central parts of Singapore such as Holland Hill, unusually high development baseline values.

Because of this historical anomaly, owners of these land plots previously paid no development charges when they enhanced their land use.

But in future, they will have to fork out like everyone else if they want to build a bigger development on their sites.

This change, and its implementation start date, were announced back in 2003 in order to give landowners ample time to adapt to the change. Yesterday, the URA issued a reminder of the new calculation.

From Jan 1, the development baseline will be simply defined as the value of the approved development. The historical baseline values in the master plans of 1958 and 1980 will no longer play any part in the calculation.

The change will affect a small number of owners who own land with a high historical development potential, said Knight Frank’s director of research and consultancy Nicholas Mak.

If future master plans allow for a bigger development that is within their historical potential, these owners would have been able to redevelop their land without having to pay a development charge, he said.

With the change, they would have to pay the charge to do so.

To mitigate the impact of the change, the Government said the affected landowners may not have to pay a higher charge as long as they keep to the allowed use under the current master plan.

The master plan is revised every five years, but the next one expected around the middle of next year is unlikely to have major changes. The Government has said that there will not be a big exercise to raise a site’s development potential.

Still, if future master plans allow higher plot ratios, the affected owners would have to pay the charge to build up to the maximum space allowed, said Credo Real Estate’s managing director, Mr Karamjit Singh.

In the past five years, the URA has collected on average about $250 million in development charges a year.

Source : Straits Times - 6 Dec 2007

Developers seeking to raise the plot ratios of properties will be subject to a new definition of the development baseline, used in the computation of the property development charge, from Jan 1.

The amendment, announced in 2003, had been deferred to allow the industry to adjust to the change, the Urban Redevelopment Authority said yesterday.

“Basically we want to have a more equitable tax system,” said URA’s deputy CEO (Development Control and Corporate Development) Tan Siong Leng.

“Somehow, because of historical reasons, the baseline is not related to what is existing on the site.”

Under the revised definition, the value of the approved development for a development site will form the development baseline, above which a development charge is payable.

The two historical baseline values in Master Plan (MP) 1958 and 1980 — which now form part of the definition of development baseline — will no longer be applicable.

Currently, development baselines are determined by the highest baseline in MP 1958, MP 1980 or that of the approved development. This creates an anomaly where some landowners do not need to pay development charge due to high historical baselines while other landowners will need to pay a development charge for planning approvals granted on their land.

To mitigate the impact of the revised baseline definition, the government has safeguarded the historical baseline up to the use and intensity allowed in the MP 2003.

Thus, private landowners who develop their land in accordance with the development potential of the current MP are not affected by the change and can make use of the safeguarded baseline to offset the DC payable after Jan 1 next year.

About 2 per cent or 1,700 land plots may be affected in the future.

The Government collects $250 million yearly in development charges and this could increase in the long term with the revised development baseline, noted Knight Frank’s head of research and consultancy, Mr Nicholas Mak.

Even though this means that developer’s profits may drop, it is unlikely to affect property prices as the sale price of a project is based on what the market can bear and not on the development charge, he added.

Source : Today - 6 Dec 2007

The company is also looking to expand to other Indian cities

Keppel Land is looking to sell its residential properties in India to Indians based in Singapore, the developer told BT.

‘In Singapore we see a growing non-resident Indian (NRI) market,’ said Ang Wee Gee, KepLand’s director of regional investments.

‘In the past we have not been selling in Singapore. But now - with more Indian professionals coming here to work and live - we have decided to.’

KepLand showcased its India properties in Singapore last weekend.

About 300 people visited the company’s booth and about 40 of them are ’serious buyers’ the developer will follow up with, Mr Ang said.

KepLand is now marketing two projects in India - the 1,573-unit Elita Promenade in Bangalore and the 1,376-unit Elita Garden Vista in Kolkata.

It also has another project - the 1,168-unit Elita Horizon in Bangalore. The project is expected to be launched soon.

KepLand has so far sold 86 per cent of 1,340 units launched at Elita Promenade. Units went for between 3,000-3,400 rupees per square foot - a jump of more than 30 per cent since the project was first launched in 2005.

At Elita Garden Vista, the company has sold about 60 per cent of the 250 units launched. Prices were 2,600-3,000 rupees psf, Mr Ang said. The project was launched a few months ago.

About 15 per cent of all the units sold at both projects were bought by NRIs, Mr Ang said.

But most of these people are not from Singapore - they are from places such as the US, the UK and Hong Kong.

However, this is set to change as KepLand is seeing more interest among NRIs based here. ‘We have an advantage here - they know us and can see the projects we have launched here,’ Mr Ang said.

KepLand is upbeat about its future in India, where it has had a presence since 2003. More residential projects are planned there. ‘Definitely, we would want to expand,’ said Mr Ang.

‘Apart from Bangalore and Kolkata we are also looking in Hyderabad, Chennai and the gateway cities of Mumbai and New Delhi.’

Source : Business Times - 04 Dec 2007

HO BEE Group and Banyan Tree Holdings have won two of the seven categories in the inaugural Mipim Asia Awards held in Hong Kong.

Mipim, the Marche international des professionnels de l’immobilier, is a real estate and city development fair that also honours innovative and outstanding buildings.

Over 100 projects from 15 different countries across the Asia-Pacific region were submitted to the Mipim Asia Awards.

‘The quality of the final projects is a testimony to the high standards in Asian real estate today,’ commented Robert Lie, president of the jury and chairman of ING Real Estate Investment Management Asia (Hong Kong).

Ho Bee on Wednesday won in the Residential Developments category with its Sentosa development, The Berth by the Cove, by architects Axis Architects Planners.

This is the first award for The Berth, and Ho Bee general manager of marketing and business development Chong Hock Chang added that it is also ‘the first true waterfront housing in Singapore’.

He said: ‘The development is designed such that you either face the vast South China Sea or the enchanting waterways within the Cove. Further, it is also the first of its kind to have its own berthing facilities.’

On the efforts of Axis Architects, Mr Chong said: ‘They may be a local architect but the team has proven themselves to be able to compete against the best in the region by helping us bag this prestigious award.’

Banyan Tree Holdings won in the Hotels and Tourism Resorts category with its Banyan Tree Lijiang in China by Architrave Design & Planning.

Banyan Tree managing director (Design Services) Ho Kwoncjan explained that each Banyan Tree Resort is designed to blend into its natural surroundings, using indigenous materials as far as possible and reflecting the landscape and architecture of the destination.

‘Whether redesigning rustic Tibetan farmhouses as lodges, or visualising a resort within an intimate village setting, we promote the uniqueness of indigenous cultures,’ he said.

Source : Business Times - 30 Nov 2007