BT: Jittery developers go low-rise on confidence

Business Times - 29 Oct 2010

Jittery developers go low-rise on confidence

34% expect prices of new launches to fall; some fear more cooling measures

By KALPANA RASHIWALA

(SINGAPORE) The worst- kept secret in the property market is out in the open. Not only are developers less upbeat about the future but a third of them actually expect prices of new homes to decline. And market performance for the suburban residential sector may be the worst hit.

This dose of pessimism was reflected in the latest readings of Real Estate Sentiment Index (RESI) put out by the developers body and NUS.

In the wake of the Aug 30 cooling measures, some 34 per cent of developers polled for Q3 expect prices for new residential launches to decline, albeit by less than 10 per cent, over the next six months. None of the developers surveyed in Q1 and Q2 had predicted price drops.

Just 44 per cent expect more new residential units to be launched over the next half year, down from 68 per cent in the previous quarter.

The sentiment indices slipped below the psychologically significant mark of 5 in Q3, indicating respondents were less upbeat in the quarter and expect more uncertain market conditions over the next six months.

The consensus as indicated by net balances is generally weaker.

Polled on how the suburban residential sector would perform, the net balance in Q3 was -43 per cent. This means that most expect the sector to perform worse over the next six months. In Q2, this net balance was +27 per cent, hinting at better future performance.

'The strong historical price growth in the sector is not likely to be sustained moving forward. Downward adjustment to the price growth, if it occurs in the next few months, will ease some pressure on the affordability level of mass-market residential properties in suburban areas,' said Associate Professor Sing Tien Foo of NUS.

The net balance for the future market performance of the prime residential sector, while still in positive territory, has also been declining significantly, from +54 per cent in Q1 to +32 per cent in Q2 and +3 per cent in Q3.

About 70 per cent of the developer respondents in the latest survey were concerned that the government could intervene to dampen the property market further.

They also cited other factors that could hurt sentiment over the next six months. The concerns included a slowdown in the global economy (cited by 60 per cent), an increase in the supply of development land (53 per cent), too many new property launches (49 per cent), rising interest rates (47 per cent) and tightening financing/liquidity in the debt market (40 per cent).

Eighty-four per cent of all survey respondents consider it likely and very likely that there will be a further increase in the supply of development land over the next six months. An even higher proportion, 90 per cent, of respondents expect the government to further boost the supply of Build-to-Order and Design, Build and Sell Scheme public housing flats as well as executive condo (EC) units.

Recent government steps to cool the market are expected to have most impact on the HDB resale and mass private housing market segments. About 76 and 64 per cent respectively of survey respondents rated their impact on these two market segments over the next six months as significant. Conversely, the measures are expected to have the least impact on the high-end/luxury segment with 64 per cent predicting minimal impact. For the mid-end private housing segment, 79 per cent foresee only moderate impact.

Real Estate Developers' Association of Singapore and NUS' Department of Real Estate polled slightly over 70 respondents for their latest Q3 survey, similar to the size for the Q1 and Q2 surveys.

The Current Sentiment Index, where respondents are asked to rate overall Singapore real estate market conditions now compared with six months ago, fell from 5.8 in Q2 to 4.8 in Q3.

The Future Sentiment Index, where respondents rate overall property market conditions over the next six months, also slipped from 5.9 in Q2 to 4.8 in Q3. As a result, the Composite Sentiment Index (the average of the two indices), also declined to 4.8. The index ranges from 0 to 10 with a score below 5 indicating deteriorating market conditions.

Redas CEO Steven Choo said: 'The RESI was able to track closely the immediate impact the cooling measures has on sentiments in the property sector.'

Agreeing, Knight Frank chairman Tan Tiong Cheng said: 'The findings are not surprising. Just look at the amount of land government has been releasing and the supply of new HDB flats and ECs they're planning, plus the demand-side measures. People have put on their thinking caps to figure out how they'll be affected, whether they are HDB upgraders, buying a second/investment property, or even downgrading.

'The latest survey results are a clear signal to government that the measures are having an impact,' he added.

Separately, the NUS' Institute of Real Estate Studies yesterday released its monthly Singapore Residential Price Index tracking prices of completed non-landed private homes. The overall index rose one per cent month on month in September, slightly slower than the 1.1 per cent increase in August.

NUS' sub-index for Central region, which covers a basket of properties in districts 1-4 and 9-11, increased 0.6 per cent in September, the same pace as in August. The sub-index for Non-Central region appreciated 1.4 per cent in September, slightly slower than the 1.6 per cent gain posted in August.

BT 29 Oct 10: Top Global surges on iconic site bid, property project hopes

Business Times - 29 Oct 2010

HOT STOCKS
Top Global surges on iconic site bid, property project hopes

By JAMIE LEE

SHARES of Top Global - a Catalist-listed company led by Sukmawati Widjaja of the influential family in Indonesia - surged in active trading yesterday after making its first mark in the property scene and signalling that more property projects were on the cards.

It was the most active stock, with some 647 million shares changing hands. The shares ended at one cent, up from half a cent - or doubling in value in a single day after an intra-day high of 1.5 cents.

Top Global was part of the consortium that made a successful $250 million bid for an iconic site that includes Capitol Theatre, Capitol Building and Stamford House, it said yesterday.

With its partners - Pontiac Land's Kwee Liong Seen and Pua Seck Guan, founder of Perennial Real Estate Group and former chief executive of CapitaMall Trust Management - Top Global plans to turn the historic area into a hotel, theatre, retail and residential development.

About half of the 542,382 square feet maximum gross floor area would be set aside for retail and entertainment use, while 25 per cent each of space would be for hotel and residential use.

Separately, Top Global also announced the granting of stock options to three individuals as part of two joint ventures forged to look into property projects.

Through its subsidiary Winsland Resources, Top Global has entered into a joint venture with an individual investor Li Jian Min.

The partners, through joint-venture firm Sunshine Capital (Asia) Ltd, are expected to establish a company in Beijing to secure an exclusive right to lease and acquire hotels near transportation points such as airports and railway stations in China, as well as set up and manage an investment fund to acquire these hotels with the intention to subsequently list the company (the joint-venture business).

Winsland would hold a 60 per cent stake in Sunshine, which will have a paid-up capital of $2 million, with Mr Li holding the remaining 40 per cent.

Winsland's $1.2 million contribution would be funded through internal resources. Mr Li's $800,000 contribution will come as a loan to him from Winsland.

Mr Li was granted an option for 50 million shares in Top Global with an exercise price of two cents per option share.

The option will expire 12 months from May 1 next year. Top Global currently has some 10.77 billion shares.

Top Global also entered into a second joint venture with two individuals, Dennis Yong and Hong Eng Leong, to look into real estate development, real estate agency, trading of building materials and supplies, among others.

Top Global will own 70 per cent of the joint venture through its subsidiary, Global Real Estate Investment, with the two men taking a 15 per cent stake each. Top Global will contribute $3.5 million to the $5 million paid-up capital through internal resources.

As part of the joint venture, Top Global also granted options for 100 million shares at an exercise price of three cents per option share to each of the two men.

The options, which are subject to further terms and conditions in the joint-venture agreement, will expire in October 2012.

Top Global said the individuals are business associates of the company but did not give details. The completion of the option grants are subject to approvals from the regulatory authorities.

Top Global has had ambitions to enter the property markets of Singapore, China and Indonesia after Ms Widjaja took control of the company at the start of the year, she told BT in an interview in January.

The company - which got rid of its assets relating to the construction business to focus on property - is also run by Ms Widjaja's eldest child and only son Hano Maeloa.

Ms Widjaja's business experience was built from managing the Widjaja family business - the powerful Indonesian conglomerate Sinar Mas Group - with her siblings for about 40 years.

Corporateobserver.com: A chip off the Oei block

A chip off the Oei block
by admin , March 15, 2010, 1800hrs

SINGAPORE (March 15, 2010) - For many years, the shadow of her more illustrious brother loomed large over Ms Oei Siu Hua in Singapore – her adopted homeland – even though she has already established herself as the doyen of the powerful Indonesian conglomerate Sinar Mas Group.

But with tycoon Oei Hong Leong – one of Singapore’s richest men who is dubbed “the man with the Midas touch” – showing few signs of slowing down, he could be soon be joined at the pinnacle by a family member.

The Corporate Observer, Singapore
Artist impression of Top Residence in Sengkang - Top Global's first condo project.
With effect from last Friday, Ms Oei, 60, is taking the reins at Top Global as executive chairman and CEO – joining hands with her eldest child and only son Hano Maeloa, 41, who will be re-designated as managing director in a boardroom shakeup that will also see incumbent CEO Yap Siean Sin taking a backseat as an executive director.

The move, which was announced by the SGX today, comes less than two months after Ms Oei put S$16.8 million on the table to buy a 59.83 per cent stake in the company, which has set its sights on an incursion into the property markets of Singapore, China and Indonesia.

Back then, Ms Oei, who is also known as Sukmawati Widjaja, told the Business Times that her role was “just to look for the opportunity” in a “very clean and straight-forward company”.


Top Global has completed its first condominium project - known as The Top Residence in Sengkang. It plans to dispose its assets relating to the construction business to focus on property.

For her ambitious plans – which include moving the Catalist-listed company to the mainboard - Ms Oei’s strategy is distinctly understated: You can make a tidy sum from building a roof over people's heads.

“You see all over the world, the tycoons make (money) from property. Everybody needs housing,” she told BT.

Her brother’s Midas touch must have rubbed off on her – Top Global’s market capitalisation has soared from S$20 million to almost S$60 million today since news broke out about her involvement in late-January.

Ms Oei has been managing the Widjaja family business for about 40 years now. And all of Ms Oei’s acumen would be needed to steer Top Global, which made a modest S$1.3 million net profit last year on the back of a S$7 million loss in 2008, into the top league.

Few will be betting against her.

DJ Market news 28 Oct 10: Topglobal

0238 GMT [Dow Jones] Top Global (519.SG) +200% at S$0.015 with volume spiking to 489 million shares, accounting for over third of market's volume so far; real estate penny stock buoys FTSE ST Catalist index, +33%.

Trader at local brokerage says "they have been mentioned as one of the participants in the Capitol redevelopment project, recently there was also a big rights issue, so I suspect that there are some blocks crossing hands among friendly parties.

But I don't know the specifics of any particular transaction."

Orderbook shows married deal at S$0.010.

Singapore's Urban Redevelopment Authority Wednesday awarded tender for land parcel at Stamford Road/North Bridge Road (site of former Capitol theater) for mixed development to highest of 3 bidders, at S$250 million; when contacted, company executive confirms Top Global part of winning syndicate, will make formal announcement later today. (matthew.allen@dowjones.com)

TopGlobal news release 28 Oct 10: RESULTS OF THE CAPITOL SITE TENDER

RESULTS OF THE CAPITOL SITE TENDER

Top Global Limited (the "Company") is pleased to announce that the Company’s whollyowned subsidiary, Top Property Investment (“TPI”), is part of a consortium that has been awarded the tender for a 1.43 hectare site at Stamford Road/North Bridge Road (the “Site”),which comprise, inter alia, an iconic stretch of colonial buildings on Stamford Road.

The Site is expected to be transformed into a vibrant retail, hote, residential and arts precinct.

Reference is made to the announcement dated 19 August 2010 in relation to two confidential tender bids for the Site.

TPI forms part of a consortium (the “Consortium”) established by Mr Pua Seck Guan, the former chief executive of CapitalMall Trust Management. The winning tender bid had been made by the joint subsidiaries of the Consortium, which comprise Perennial (Capitol) Pte. Ltd., a subsdiary of Perennial Real Estate Group, Mr Kwee Liong Seen’s Chesham Properties Pte. Ltd. and TPI. The joint subsiairies, Capitol Retail Management, Capitol Hotel Management and Capitol Residential Development, had submitted a winning bid of S$250 million.

The Site comprises a 1.43 hectare land parcel which is prominently located at the junction of Stamford Road and North Bridge Road. Occupying a prime location in the Civic District, the vision is for the site to be developed into a high-quality mixed-use development that will contribute positively to the built environment, and the lifestyle and entertainment offerings within the city.

URA, in its news release dated 27 October 2010, stated that the winning concept proposal submited by the Consortium, through its joint subsidiaries, features “a high-quality development with an attractive mix of hotel, retail, entertainment and residential uses that will commensurate with the prominent location of the site and contribute to the vibrancy in the Civic District.

[The development] will comprise a new 15-storey building which will house four floors of exciting retail and F&B stores and prime residential apartments above it. Capitol Building and Stamford House will be sensitively restored into a new luxury 5-star hotel, while Capitol Theatre will be transformed into a unique cinema cum performance theatre.”

BY ORDER OF THE BOARD
Hano Maeloa
Managing Director
28 October 2010

BT: Another shot at glory for Capitol site

Business Times - 28 Oct 2010


Another shot at glory for Capitol site

Winning group plans to build iconic hotel, theatre, retail and residential development at landmark site

By KALPANA RASHIWALA

(SINGAPORE) The landmark site that includes Capitol Theatre, Capitol Building and Stamford House is ready for a makeover. It has been awarded to a partnership comprising a syndicate of investors arranged by Pua Seck Guan's Perennial Real Estate, Kwee Liong Seen's Chesham Properties, and Sukmawati Widjaja's Top Global group for $250 million or $460.93 per square foot per plot ratio.

The winning bid was the highest price offered among three tenderers whose concept proposals were shortlisted from the initial list of 14 submitted to the Urban Redevelopment Authority on Aug 18.

The group that won the tender is expected to invest about $700 million in total (including land price) to transform the site into an iconic hotel, theatre, retail and residential development. The group is allocating about half of the 542,382 sq ft maximum gross floor area to retail and entertainment use, with 25 per cent each for hotel and residential use.

'The project, including the hotel, will retain the name Capitol, as it has a lot of history and can rival The Raffles Hotel,' said Perennial CEO Mr Pua. 'We intend to restore the glory of Capitol - a brand name familiar to many Singaporeans. Historically, the location was famous for Capitol Theatre; but there was also a vibrant retail trade along High Street and there were city apartments.'

US-based architectural firm Richard Meier & Partners will work with Architects 61 of Singapore to design the project.

Capitol Theatre, Capitol Building and Stamford House will be conserved and restored while Capitol Centre will be torn down to make way for a new 15-storey building that will also have four basements. Basements 3 and 4 will be for car parking while Basements 2 to Level 2 will be for retail. Above that will be about 80 apartments of about 1,066 sq ft to 2,368 sq ft, which will be sold to help part finance the development.

A five-star hotel with over 200 rooms will be housed on the second to fourth levels of the four-storey Capitol Building and Stamford House.

Capitol Theatre will be transformed into a single-screen cinema with the largest seating capacity in Singapore (some 800 to 1,000 seats) to be operated by Golden Village for most of the year. The building will also alternate as a performance venue for in-residence theatre groups for the rest of the time.

It will be a choice venue for red carpet movie premiers and film festivals.

There will be concept retail stores for international brands on the ground level of Capitol Building while the ground level of Stamford House will feature signature restaurants related to the hotel operator.

The existing street between Capitol Theatre and Stamford House/Capitol Building will be transformed into a pedestrianised, glass-covered galleria lined with F&B outlets. The galleria and the sheltered civic plaza will provide pedestrian connectivity throughout the Capitol site and with the surroundings. There will be an underground link to City Hall MRT Station

'We've some names in mind for the hotel operator. Our partners also own hotels managed by external parties,' Mr Pua said, referring to Mr Kwee, who is one of the four brothers who control the Pontiac Group in Singapore, which owns luxury hotels such as The Ritz-Carlton, Millenia Singapore, and The Regent Singapore.

Ms Widjaja, sister of tycoon Oei Hong Leong, also owns hotels in Indonesia and China.

'We intend to complete the project in about three to four years,' Mr Pua said. URA has given the group up to eight years to complete the project.

URA said that the concept proposal from the successful tenderer offers a high quality development with an attractive mix of uses and 'befitting of its prominent location within the Civic District and its rich architectural heritage'.

Under the dual-envelope tender system for the sale of this site, the 14 tenderers were required to submit their concept proposals and tender prices in two separate envelopes. At the first stage, only the concept proposals were evaluated against a set of pre-stated criteria. Those who met the mark proceeded to the second stage, where the price envelopes of the short-listed bidders were opened and the site awarded to the tenderer with the highest bid price among them.

The other two short-listed tenderers were CapitaMalls Asia and its parent CapitaLand (with a bid of $238.2 million) and a consortium that included private equity group GAW Capital Partners ($130.1 million).

BT understands that the winning bid of $250 million was not the highest price among the 14 submissions.

The top price offer is believed to have crossed the $400 million mark and market watchers say the scheme would probably have involved a more substantial residential component for sale.

BT: Oei's sister emerges to carve her own niche

Oei's sister emerges to carve her own niche

Oei Siu Hua, younger sister of Oei Hong Leong, took control of Top Global, with plans to push into property markets of S'pore, China & Indonesia.
Sat, Jan 30, 2010
The Business Times

By Jamie Lee

THE brother has hogged the headlines all these years, and now it is the sister's turn to make a splash.

Oei Siu Hua, the younger sister of mega investor Oei Hong Leong, this week took control of Top Global - where her eldest child and only son Hano Maeloa, 41, is executive director.

The relatively unknown company now plans to push into the property markets of Singapore, China and Indonesia.

'This is a very clean and straight-forward company,' Ms Oei told BT. 'My purpose is just to look for the opportunity,' added the 60-year-old, who is also known as Sukmawati Widjaja and has been a Singaporean - like her brother - for some seven years. Her name has slipped the radar here until now, because the keen property investor has mostly made her mark in Indonesia.

For about 40 years now, the confident businesswoman who walks with a quick stride has been managing the Widjaja family business - the powerful Indonesian conglomerate Sinar Mas Group - with her siblings.

The match between Ms Oei, a business heavyweight, and a company valued at under $20 million by the market with a misnomer of a name like Top Global, may seem incongruous. But it also explains why opportunity, a word she repeated several times, has some weight coming from this veteran.

And the Widjaja backing could come into the picture, as Ms Oei is open to having Top Global work on projects with Sinar Mas, Indonesia's largest oil palm grower, and one of the region's largest paper and property players. 'Depending on the situation . . . we could work together,' she said.

Her focus is now on property and her strategy is simple: you can make a tidy sum from building a roof over people's heads.

'When we first made money, it was all from property,' said Ms Oei, referring to her family. 'You see all over the world, the tycoons make (money) from property. Everybody needs housing.'

And the property business feels like second nature to Ms Oei and her family. Besides working on Sinar Mas projects such as the Westin hotel on Shanghai's The Bund, she has invested in properties in the United States, such as those along the Pasadena Hill turn in Los Angeles.

The US investments were all sold 'in good timing' 10 years ago, said Ms Oei.

The family is also invested in a sizeable private equity fund that looks at buying equity stakes in Asia of either properties in the region or in property companies at their pre-IPO stage, so as to get a sweet return when they exit some three to five years later.

But Ms Oei is not content with holding just 10-20 per cent stakes in various property investments through the fund.

'We've been doing this a lot but I feel like I can do myself this because we are the developers. Why must I put money with people?' said Ms Oei. 'We're very lucky in property.'

Top Global, which has completed its first condominium project - known as The Top Residence in Sengkang - plans to dispose its assets relating to the construction business to focus on property, said Mr Maeloa.

The company's move into property was kickstarted by Mr Maeloa and his friend and current CEO Yap Siean Sin - who is an architect by training.

Approached by Mr Yap in 2007 to invest in the company, he became a substantial shareholder for a year, holding as much as 20 per cent at one point, before selling out in 2008 and joining the company as an executive director.

Now sharing his goal, his mother - who had not been a shareholder of the firm before - put $16.8 million on the table to buy a 59.83 per cent stake in the company this week.

Half of the near-60 per cent stake was bought from The Ascend Funds PCC, which was looking to exit the firm, said Ms Oei.

She stopped short at the specifics of her plans due to an ongoing general offer that was triggered after she bought more than 30 per cent of the company in a single sitting.

'I actually like to talk,' she said, while apologising for her restraint. 'I want to tell you a lot, but I must be careful.'

She could only point to the demand that could come from Indonesia, a country that is poised for strong economic growth this year and anchored by a political stability not seen in years.

She also mentions, nearing the end of the interview, that she has 'a lot of friends' who could emerge as strategic investors.

This would be especially important when the Catalist-listed company moves to the main board once it hits the required profit numbers, said Ms Oei.

Her next step is to seek a board seat at the next shareholders' meeting, with her eyes set on a leadership position, before switching to high gear.

'I have this entrepreneurial blood,' said Ms Oei. 'I like the competition, I like the challenge.'