CapitaLand pulls out of talks to buy Asia Square Tower 1
The deal, possibly valued at more than S$3.5 billion, would have been Singapore's largest office transaction. On Wednesday, the property developer also announced a 48.3 per cent year-on-year rise in profits.
POSTED: 04 Nov 2015 08:50 UPDATED: 04 Nov 2015 23:04
SINGAPORE: Property developer CapitaLand has pulled out of talks to buy the Asia Square Tower 1 office building - a deal which could have been Singapore's largest office transaction ever.
In an announcement made on the Singapore Exchange website early on Wednesday morning (Nov 4), CapitaLand said that the parties involved have ceased negotiations, but that it would "continue to explore opportunities which fit in the group's strategy and the terms of which allow the group to generate the required returns".
Bloomberg had previously reported that the deal valued Asia Square Tower 1, which is owned by asset manager BlackRock and which counts Citigroup and Swiss private bank Julius Baer among its tenants, at more than S$3.5 billion.
Mr John Saunders, head of Asia-Pacific for BlackRock Real Estate, said talks with other parties are still in progress.
“Asia Square is a trophy grade-A office building in Singapore, often considered as one of Asia’s best such developments, and negotiations with potential buyers of this asset continue," said Mr Saunders.
"While we are not in a position to comment on the details, we are pleased to have received significant global interest in this high-quality asset and are currently working to achieve the best outcome for our investors.”
Property consultancy Chestertons said the failure to close the deal reflects the reluctance of sellers to lower prices, despite weakening office rentals as new supply enters the market.
"The market will see some standstill in terms of the transactions, mainly because we are now entering in a second quarter of drop in terms of rentals. So it hasn't hit the market yet, at least in terms of the sellers," said Mr Donald Han, managing director at Chestertons.
"Sellers are still looking at historical high prices, in anticipation that the rentals they achieved, peak rentals from one to two years ago, would continue to filter through. So I think it would probably take about six to 12 months after we see a continuous drop in terms of prices. I think there will be more negotiation in terms of the seller's point in terms of pricing. Then you will start to see more deals transacting," he added.
On Oct 14, CapitaLand had confirmed that it and other parties were in talks to buy the 43-storey building, but added at the time: “As negotiations with the vendor of Asia Square Tower 1 and the other parties on the terms of the potential transaction are still ongoing, there is no certainty or assurance that any transaction for Asia Square Tower 1 will materialise or that any definitive or binding agreement will result from such negotiations."
On Wednesday, the property developer also reported its third-quarter earnings, with profit after tax and minority interests of S$192.7 million, up 48.3 per cent from the same period a year ago.
Group revenue increase 17.1 per cent in the quarter, which CapitaLand attributed to higher contributions from development projects in China offsetting lower revenue from projects in Singapore and Vietnam.
Sales in China more than doubled year-on-year, with the 2,422 units sold generating about S$800 million.
- CNA/es/xq
- wong chee tat ):
Showing posts with label CapitaLand. Show all posts
Showing posts with label CapitaLand. Show all posts
Thursday, November 5, 2015
Wednesday, October 14, 2015
CapitaLand confirms talks to buy Asia Square Tower 1
CapitaLand confirms talks to buy Asia Square Tower 1
The deal involving the consortium of property developer CapitaLand and the Norwegian sovereign wealth fund could value Asia Square Tower 1 at more than S$3.5 billion, reports Bloomberg News.
POSTED: 14 Oct 2015 17:00
SINGAPORE: Southeast Asia's biggest property developer, CapitaLand, on Wednesday (14 Oct) confirmed news reports that it was involved in talks to buy the Asia Square Tower 1 office building.
Its statement to the stock exchange came a day after Bloomberg News said a consortium of Norway's sovereign wealth fund and CapitaLand has been chosen as the preferred bidder for the 43-storey office building in Singapore's central business district. Bloomberg said the deal could value Asia Square Tower 1 at more than S$3.5 billion.
CapitaLand said that as discussions are still ongoing, there is no certainty that a transaction will materialise.
Should the deal proceed, CapitaLand said it anticipates drawing upon internal sources of funds and available credit lines. As of Jun 30, 2015, CapitaLand had about S$3.5 billion in cash and cash equivalents and approximately S$3.1 billion in available undrawn credit facilities.
Asia Square Tower 1, which is owned by asset manager BlackRock, counts Citigroup and Swiss private bank Julius Baer among its main tenants.
- CNA/xq
- wong chee tat :)
The deal involving the consortium of property developer CapitaLand and the Norwegian sovereign wealth fund could value Asia Square Tower 1 at more than S$3.5 billion, reports Bloomberg News.
POSTED: 14 Oct 2015 17:00
SINGAPORE: Southeast Asia's biggest property developer, CapitaLand, on Wednesday (14 Oct) confirmed news reports that it was involved in talks to buy the Asia Square Tower 1 office building.
Its statement to the stock exchange came a day after Bloomberg News said a consortium of Norway's sovereign wealth fund and CapitaLand has been chosen as the preferred bidder for the 43-storey office building in Singapore's central business district. Bloomberg said the deal could value Asia Square Tower 1 at more than S$3.5 billion.
CapitaLand said that as discussions are still ongoing, there is no certainty that a transaction will materialise.
Should the deal proceed, CapitaLand said it anticipates drawing upon internal sources of funds and available credit lines. As of Jun 30, 2015, CapitaLand had about S$3.5 billion in cash and cash equivalents and approximately S$3.1 billion in available undrawn credit facilities.
Asia Square Tower 1, which is owned by asset manager BlackRock, counts Citigroup and Swiss private bank Julius Baer among its main tenants.
- CNA/xq
- wong chee tat :)
Wednesday, January 8, 2014
Monday, July 1, 2013
Singapore property shares fall on cooling measures
Singapore property shares fall on cooling measures
POSTED: 01 Jul 2013 10:50 AM
Shares of Singapore's blue-chip property firms were down on Monday as investors reacted to the government's new measures aimed at cooling the housing market.
SINGAPORE: Shares of Singapore's blue-chip property firms were down on Monday as investors reacted to the government's new measures aimed at cooling the housing market.
Shares in Capitaland Ltd were down 2.3 per cent while City Development Ltd fell 1.2 per cent in Monday morning trade.
The Monetary Authority on Singapore on June 28 introduced new home loan rules which discourage lenders from making property loans that result in individual borrowers using more than 60 per cent of their monthly incomes to service debt.
- CNA/fa
- wong chee tat :)
POSTED: 01 Jul 2013 10:50 AM
Shares of Singapore's blue-chip property firms were down on Monday as investors reacted to the government's new measures aimed at cooling the housing market.
SINGAPORE: Shares of Singapore's blue-chip property firms were down on Monday as investors reacted to the government's new measures aimed at cooling the housing market.
Shares in Capitaland Ltd were down 2.3 per cent while City Development Ltd fell 1.2 per cent in Monday morning trade.
The Monetary Authority on Singapore on June 28 introduced new home loan rules which discourage lenders from making property loans that result in individual borrowers using more than 60 per cent of their monthly incomes to service debt.
- CNA/fa
- wong chee tat :)
Wednesday, June 5, 2013
OUE gets SGX approval to list REIT
OUE gets SGX approval to list REIT
POSTED: 05 Jun 2013 8:46 PM
Overseas Union Enterprise has received approval from SGX to list a hospitality-focused real estate investment trust.
SINGAPORE: Property developer Overseas Union Enterprise (OUE) has received approval from the Singapore Exchange (SGX) to list a hospitality-focused real estate investment trust (REIT).
In a filing with the SGX, OUE said the REIT manager plans to appoint real estate veteran Chong Kee Hiong as chief executive officer and executive director.
Mr Chong is the former CEO of The Ascott, the serviced apartment arm of property developer CapitaLand.
On May 13, OUE had said it planned to establish a REIT, which will include a hotel, Mandarin Orchard Singapore, and its adjoining Mandarin Gallery shopping mall.
OUE - controlled by Indonesia's Lippo Group - did not reveal details about the size and timing of the initial public offering (IPO) for the proposed OUE hospitality REIT.
But according to reports, the hotel REIT is expected to raise US$700 million to US$800 million, making it Singapore's third-biggest IPO this year. The deal is expected to be priced in early July, with the proposed listing later in the month.
- CNA/ms
- wong chee tat :)
POSTED: 05 Jun 2013 8:46 PM
Overseas Union Enterprise has received approval from SGX to list a hospitality-focused real estate investment trust.
SINGAPORE: Property developer Overseas Union Enterprise (OUE) has received approval from the Singapore Exchange (SGX) to list a hospitality-focused real estate investment trust (REIT).
In a filing with the SGX, OUE said the REIT manager plans to appoint real estate veteran Chong Kee Hiong as chief executive officer and executive director.
Mr Chong is the former CEO of The Ascott, the serviced apartment arm of property developer CapitaLand.
On May 13, OUE had said it planned to establish a REIT, which will include a hotel, Mandarin Orchard Singapore, and its adjoining Mandarin Gallery shopping mall.
OUE - controlled by Indonesia's Lippo Group - did not reveal details about the size and timing of the initial public offering (IPO) for the proposed OUE hospitality REIT.
But according to reports, the hotel REIT is expected to raise US$700 million to US$800 million, making it Singapore's third-biggest IPO this year. The deal is expected to be priced in early July, with the proposed listing later in the month.
- CNA/ms
- wong chee tat :)
Sunday, March 3, 2013
Liew Mun Leong retires as chairman of CMA
Liew Mun Leong retires as chairman of CMA
Posted: 01 March 2013 2336 hrs
SINGAPORE : CapitaMalls Asia's will have a new board chairman after the retirement of Mr Liew Mun Leong.
He will be replaced by Mr Ng Kee Choe after the Annual General Meeting (AGM) on 24 April.
Mr Liew is the former CEO of CapitaLand, the parent company of CapitaMalls Asia.
CapitaLand CEO Lim Ming Yan will replace Mr Liew as Chairman of CapitaMalls Asia's Corporate Disclosure Committee and Investment Committee, and as a member of the Executive Resource and Compensation Committee and Nominating Committee on 24 April 2013.
Mr Liew had been chairman of CapitaMalls Asia since the company was incorporated in October 2004.
- CNA/ch
- wong chee tat :)
Posted: 01 March 2013 2336 hrs
SINGAPORE : CapitaMalls Asia's will have a new board chairman after the retirement of Mr Liew Mun Leong.
He will be replaced by Mr Ng Kee Choe after the Annual General Meeting (AGM) on 24 April.
Mr Liew is the former CEO of CapitaLand, the parent company of CapitaMalls Asia.
CapitaLand CEO Lim Ming Yan will replace Mr Liew as Chairman of CapitaMalls Asia's Corporate Disclosure Committee and Investment Committee, and as a member of the Executive Resource and Compensation Committee and Nominating Committee on 24 April 2013.
Mr Liew had been chairman of CapitaMalls Asia since the company was incorporated in October 2004.
- CNA/ch
- wong chee tat :)
Monday, January 14, 2013
S'pore property shares tumble after cooling measures
S'pore property shares tumble after cooling measures
Posted: 14 January 2013 1408 hrs
SINGAPORE: Shares of major property developers in Singapore were battered Monday after the government introduced new measures to cool the real estate market at the weekend.
By midday, shares of top developers listed on the Singapore Exchange had sunk more than four per cent as investors spooked by the measures dumped the stocks.
CapitaLand shed 4.11 per cent to S$3.73, City Developments fell 6.11 per cent to S$11.83 and Keppel Land slumped 6.31 per cent to S$4.01.
"We're seeing a knee-jerk reaction to the cooling measures," said Jason Hughes, head of premium client management for IG Markets Singapore.
The new measures, which came into force Saturday, included sharply higher duties on property purchases by foreigners.
Singaporeans' minimum cash downpayments for second or subsequent homes were raised from 10 to 25 per cent of a property's value.
But Hughes predicted property stocks would be able to ride out the storm thanks to their overseas portfolios.
"We do have to consider that a number of these guys are regionally focused," he said, adding that the effects would have been more severe if they were "purely local developers."
HSBC Global Research said in a report that Singapore may institute more cooling measures because property demand is expected to remain robust.
"Low interest rates and an expected economic recovery this year will support demand. Further steps can, therefore, not be ruled out," the report stated.
The new property measures were imposed after home prices continued to rise even as the city-state suffered an economic slowdown.
Singapore narrowly avoided a technical recession in the last quarter of 2012.
The economy grew just 1.2 per cent in 2012, from 4.9 per cent in 2011, with 2013 expansion forecast at 1.0-3.0 per cent.
- AFP/ck
- wong chee tat :)
Posted: 14 January 2013 1408 hrs
SINGAPORE: Shares of major property developers in Singapore were battered Monday after the government introduced new measures to cool the real estate market at the weekend.
By midday, shares of top developers listed on the Singapore Exchange had sunk more than four per cent as investors spooked by the measures dumped the stocks.
CapitaLand shed 4.11 per cent to S$3.73, City Developments fell 6.11 per cent to S$11.83 and Keppel Land slumped 6.31 per cent to S$4.01.
"We're seeing a knee-jerk reaction to the cooling measures," said Jason Hughes, head of premium client management for IG Markets Singapore.
The new measures, which came into force Saturday, included sharply higher duties on property purchases by foreigners.
Singaporeans' minimum cash downpayments for second or subsequent homes were raised from 10 to 25 per cent of a property's value.
But Hughes predicted property stocks would be able to ride out the storm thanks to their overseas portfolios.
"We do have to consider that a number of these guys are regionally focused," he said, adding that the effects would have been more severe if they were "purely local developers."
HSBC Global Research said in a report that Singapore may institute more cooling measures because property demand is expected to remain robust.
"Low interest rates and an expected economic recovery this year will support demand. Further steps can, therefore, not be ruled out," the report stated.
The new property measures were imposed after home prices continued to rise even as the city-state suffered an economic slowdown.
Singapore narrowly avoided a technical recession in the last quarter of 2012.
The economy grew just 1.2 per cent in 2012, from 4.9 per cent in 2011, with 2013 expansion forecast at 1.0-3.0 per cent.
- AFP/ck
- wong chee tat :)
Thursday, December 27, 2012
Ascott strengthening market presence in China
Ascott strengthening market presence in China
Posted: 26 December 2012 1635 hrs
SINGAPORE: The Ascott, CapitaLand's wholly-owned serviced residence business unit, is strengthening its market presence in China.
In a filing to the Singapore Exchange, the firm said it has secured contracts to manage three properties with more than 500 apartment units in China.
The 90-unit Ascott Heng Shan Shanghai is scheduled to open in 2014.
Meanwhile, two serviced apartments in Suzhou - the 250-unit Ascott Emerald City Suzhou and the 194-unit Somerset Baitang Suzhou - will start operations in 2015 and 2017 respectively.
With the latest additions, Ascott will have more than 10 serviced residences in Shanghai and Suzhou.
Mr Lee Chee Koon, Ascott's Deputy Chief Executive Officer and Managing Director for North Asia, said, "Deepening our presence in these two cities enables us to better tap the fast-growing demand for serviced residences and build economies of scale in our operations."
These new contracts will also reinforce the firm's leadership position as the largest international serviced residence owner-operator in China, with over 8,000 apartment units in 46 properties across 17 cities.
- CNA/de
- wong chee tat :)
Posted: 26 December 2012 1635 hrs
SINGAPORE: The Ascott, CapitaLand's wholly-owned serviced residence business unit, is strengthening its market presence in China.
In a filing to the Singapore Exchange, the firm said it has secured contracts to manage three properties with more than 500 apartment units in China.
The 90-unit Ascott Heng Shan Shanghai is scheduled to open in 2014.
Meanwhile, two serviced apartments in Suzhou - the 250-unit Ascott Emerald City Suzhou and the 194-unit Somerset Baitang Suzhou - will start operations in 2015 and 2017 respectively.
With the latest additions, Ascott will have more than 10 serviced residences in Shanghai and Suzhou.
Mr Lee Chee Koon, Ascott's Deputy Chief Executive Officer and Managing Director for North Asia, said, "Deepening our presence in these two cities enables us to better tap the fast-growing demand for serviced residences and build economies of scale in our operations."
These new contracts will also reinforce the firm's leadership position as the largest international serviced residence owner-operator in China, with over 8,000 apartment units in 46 properties across 17 cities.
- CNA/de
- wong chee tat :)
Thursday, November 15, 2012
New mixed use development coming up in Bugis
New mixed use development coming up in Bugis
By Millet Enriquez | Posted: 14 November 2012 2338 hrs
SINGAPORE : A S$3 billion mixed development property is set to vastly alter the Bugis skyline over the next few years.
Named DUO, the property will comprise residences, offices, hotel and retail space.
Its developer, M+S, jointly owned by Malaysia's Khazanah Nasional and Temasek Holdings, unveiled the design of the project on Wednesday.
By 2017, two new towers will be added to the Bugis skyline.
Enclosed in a park-like environment, DUO features 660 units of prime residences, 21 storeys of Grade A offices, a five-star hotel and close to 80,000 square feet of retail space.
Designed by a renowned architect Ole Scheeren, the project is connected to the Bugis MRT interchange that will link the East-West Line and the upcoming Downtown Line.
Its developers are optimistic it will draw strong interest when it launches for sale in early 2013 - with foreign buyers possibly eyeing the residential property.
Tan Sri Azman Yahya, chairman of M+S, said: "The large three international buyers in Singapore have been Malaysians, Indonesians and Chinese. So we expect that the ratio of buyers will be quite similar to any other offerings around the CBD (Central Business District) area. We do expect a significant number of international buyers."
Property consultant HSR said homes in DUO could fetch up to S$2,000 psf depending on size, and a premium of 5 to 10 per cent, given its connectivity to the MRT station.
"Being a Khazanah project, we would expect demand to particularly come from Malaysian investors. The locality would boost the commercial hub status in the Bugis area. It has the potential of being Hong Kong's ICC Tower or Kowloon East if marketed and priced properly to attract financial companies who are saddled with high cost within the financial district," said Donald Han, special advisor at HSR Group.
The lack of Grade A offices in the area should also result in demand for the long term.
"Bugis office supply is confined to mostly grade B stock. The M+S office project can bring critical mass into the area, as a serious business hub. Residential within integrated mixed developments tend to enjoy a premium and sell well in today's market," added Mr Han.
Mr Scheeren said: "I have worked independently for Singaporean clients and independently for Malaysian clients, and I think what is really exciting about the project is that this is indeed a joint venture between both of them. Both the way that that is translated into the architecture and also in a way what that symbolises in itself, it may be both sensitive but also extremely positive."
However, analysts said initial marketing in 2013 may not result in strong take-up, given that pre-leasing usually rises a year prior to completion.
Some analysts also cautioned of downward price pressures on the prime residential market, in light of the government's cooling measures.
Nicholas Mak, executive director at SLP International Property Consultants, said office rents in the Bugis area could also face a downtrend in 2013.
CapitaLand and UEM Land Holdings are the project managers of the development.
- CNA/ms
- wong chee tat :)
By Millet Enriquez | Posted: 14 November 2012 2338 hrs
SINGAPORE : A S$3 billion mixed development property is set to vastly alter the Bugis skyline over the next few years.
Named DUO, the property will comprise residences, offices, hotel and retail space.
Its developer, M+S, jointly owned by Malaysia's Khazanah Nasional and Temasek Holdings, unveiled the design of the project on Wednesday.
By 2017, two new towers will be added to the Bugis skyline.
Enclosed in a park-like environment, DUO features 660 units of prime residences, 21 storeys of Grade A offices, a five-star hotel and close to 80,000 square feet of retail space.
Designed by a renowned architect Ole Scheeren, the project is connected to the Bugis MRT interchange that will link the East-West Line and the upcoming Downtown Line.
Its developers are optimistic it will draw strong interest when it launches for sale in early 2013 - with foreign buyers possibly eyeing the residential property.
Tan Sri Azman Yahya, chairman of M+S, said: "The large three international buyers in Singapore have been Malaysians, Indonesians and Chinese. So we expect that the ratio of buyers will be quite similar to any other offerings around the CBD (Central Business District) area. We do expect a significant number of international buyers."
Property consultant HSR said homes in DUO could fetch up to S$2,000 psf depending on size, and a premium of 5 to 10 per cent, given its connectivity to the MRT station.
"Being a Khazanah project, we would expect demand to particularly come from Malaysian investors. The locality would boost the commercial hub status in the Bugis area. It has the potential of being Hong Kong's ICC Tower or Kowloon East if marketed and priced properly to attract financial companies who are saddled with high cost within the financial district," said Donald Han, special advisor at HSR Group.
The lack of Grade A offices in the area should also result in demand for the long term.
"Bugis office supply is confined to mostly grade B stock. The M+S office project can bring critical mass into the area, as a serious business hub. Residential within integrated mixed developments tend to enjoy a premium and sell well in today's market," added Mr Han.
Mr Scheeren said: "I have worked independently for Singaporean clients and independently for Malaysian clients, and I think what is really exciting about the project is that this is indeed a joint venture between both of them. Both the way that that is translated into the architecture and also in a way what that symbolises in itself, it may be both sensitive but also extremely positive."
However, analysts said initial marketing in 2013 may not result in strong take-up, given that pre-leasing usually rises a year prior to completion.
Some analysts also cautioned of downward price pressures on the prime residential market, in light of the government's cooling measures.
Nicholas Mak, executive director at SLP International Property Consultants, said office rents in the Bugis area could also face a downtrend in 2013.
CapitaLand and UEM Land Holdings are the project managers of the development.
- CNA/ms
- wong chee tat :)
Friday, November 26, 2010
d'Leedon new condo at former Farrer Court site
d'Leedon new condo at former Farrer Court site
Posted: 25 November 2010 2244 hrs
SINGAPORE: A consortium led by developer CapitaLand has unveiled a new development on the site of the former Farrer Court.
Called d'Leedon, the new condominium along Farrer Road will have 1,715 units built on the 840,049-square-foot site.
They comprise 1,703 apartments in seven 36-storey residential towers and 12 exclusive semi-detached houses.
CapitaLand says the residential towers occupy only 22 percent of the site, freeing up a landscaped area of over 650,000 square feet dedicated to greenery and recreational facilities.
The first preview sales to former owners of Farrer Court will be held this weekend, followed by the public launch. This first launch will be for 200 choice units located across all floors in two residential towers, with unit types ranging from one-bedroom-and-study to four-bedroom units. The average price of the units is S$1,680 per square foot.
d'Leedon also features a cluster of 80 units specially designed to be elderly-friendly.
- CNA/ir
- wong chee tat :)
Posted: 25 November 2010 2244 hrs
SINGAPORE: A consortium led by developer CapitaLand has unveiled a new development on the site of the former Farrer Court.
Called d'Leedon, the new condominium along Farrer Road will have 1,715 units built on the 840,049-square-foot site.
They comprise 1,703 apartments in seven 36-storey residential towers and 12 exclusive semi-detached houses.
CapitaLand says the residential towers occupy only 22 percent of the site, freeing up a landscaped area of over 650,000 square feet dedicated to greenery and recreational facilities.
The first preview sales to former owners of Farrer Court will be held this weekend, followed by the public launch. This first launch will be for 200 choice units located across all floors in two residential towers, with unit types ranging from one-bedroom-and-study to four-bedroom units. The average price of the units is S$1,680 per square foot.
d'Leedon also features a cluster of 80 units specially designed to be elderly-friendly.
- CNA/ir
- wong chee tat :)
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