Expanded IRs 'to help fill incoming MBS, RWS hotel rooms'

The Business Times - April 05
Brand-new attractions and additional exhibition space at the integrated resorts (IRs) should generate additional demand for the new hotel rooms that will be injected into the market by the two IRs in the coming years, analysts say.

Marina Bay Sands (MBS) will add a fourth tower featuring 1,000 rooms - all suites - next to its existing three hotel towers; this will beef up its inventory of 2,561 hotel rooms.

Resorts World Sentosa (RWS) will build two hotels in the luxury and upscale segments, adding around 1,100 rooms to its existing 1,600.

Govinda Singh, Executive Director, Valuation & Advisory Services:
We would expect the new hotels to come online in parallel with the addition of the new attractions. This should be between the 2022 and 2025 timeframe. 

With their existing hotels running at over 90% occupancy year-round, they are pretty much full all the time. Given the proposed increase in the nature and type of attractions at both IRs, this will likely lead to significant increase in visitation and overnight stays thereby boosting demand for hotel rooms. 

These IR hotels operate in their own micro-markets with most demand generated from the on-site facilities and attractions. It is therefore likely that the demand will continue grow as the IRs expand their offerings. As such, we would not expect any significant impact on the wider Singapore hotel market as they would not be competing directly with the IRs, which have captive demand. Indeed, with the potential increase in visitation to the expanded IRs, this may well boost demand for the overall hotel market. 
 
Further, with the recent government announcement on the increased Development Charge rates for hotels, which could likely put a dampener on new hotel supply, the proposed new hotels at the IRs could therefore be filling a gap in the market should visitation continue to grow.


JTC awards Woodlands industrial site to Soon Hock for S$82m

The Business Times - April 05
JTC has awarded the tender for an industrial site at Woodlands Avenue 12 to developer Soon Hock Investment Group for S$82 million.

The tender for the site was launched on Dec 26, 2018 and closed on Feb 13, 2019, with six bids submitted. According to a previous report, the tender was triggered by a committed bid price of not less than S$36 million.

The 20,937 square metre industrial site has a lease of 30 years and a maximum permissible gross plot ratio of 2.5 hectares. It is zoned Business 2 for heavier industrial use, with a project completion period of 84 months.

Tricia Song, Head of Research:
The winning bid of SGD82 million translates to a land rate of SGD145.5 psf ppr, and was 3.9% higher than the second highest bid of SGD78.9 million by Soilbuild. We note the higher levels of interest from industrial property builders such as Soon Hock, Soilbuild, Wee Hur and ZACD for 30-year leasehold industrial government land sale sites since September 2018, reflecting the improved sentiment for industrial property. The last two sites offered on 30 years leasehold – Corporate Drive and Braddell Road saw 7 and 8 bids respectively. However, sites targeted at end-users continued to receive lukewarm response with typically one to two bids.   


Frasers Property in talks to potentially sell Frasers Tower

The Business Times - April 04
Frasers Property said on Thursday that it "has been in discussions with certain parties who have expressed interest” in its Frasers Tower office property, located at 182 Cecil Street.

It said that there is no certainty that any transaction would result from such discussions, according to a bourse filing in response to Bloomberg queries.

Frasers Property also added that it continually reviews opportunities to enhance shareholder value. This includes potential opportunities to collaborate with new investors, as well as divesting its interests in projects or assets.

Tricia Song, Head of Research:
The bullish sentiment for prime office property in Singapore should continue as rents continue to rise amidst relatively subdued supply pipeline and healthy demand from tech and flexible workspace operators. We expect CBD premium and Grade A rents to rise 8% in 2019, after rising 15% on average in 2018. 


Colliers hires new South Asia head for workplace solutions business

The Business Times - April 04
Real estate services company Colliers International has appointed Ana Ballesteros to lead its workplace solutions business in South Asia with effect from April 1, 2019.

Ms Ballesteros will be based in Singapore and report to Hong Kong-based Truddy Cheung, head of workplace solutions, Asia, at Colliers.

Ms Ballesteros has a background in architecture and over 15 years of international experience in design, infrastructure, project management, facilities and strategy planning across EMEA (Europe, Middle East, Africa), APAC (Asia-Pacific) and the Americas.

Abhishek Bajpai, Executive Director of Corporate Solutions: 

Ana’s appointment highlights Colliers’ ongoing commitment to strengthening our geographic leadership and providing a best-in-class workplace solutions platform to domestic and international clients in our rapidly growing South Asia region. Read the news release.