A batch of six adjoining and refurbished strata offices at International Plaza in Tanjong Pagar is up for sale with a guide price of $11.97 million. The offices are available on a sale and leaseback scheme with immediate annual gross rental yield of 4.2 per cent for at least five years. The guide price works out to $1,850 psf based on floor area. This "compares favourably" with the average price of $1,895 psf achieved for 13 office transactions at International Plaza over the past six months. The six offices have a combined floor area of about 6,469 sq ft and a 99-year leasehold tenure in effect since 1970. The commercial use zoning means foreigners are eligible to buy. Additional buyer's stamp duty and seller's stamp duty are also not applicable.
Debt-laden Newstead calls in liquidators amid debts of more than $60 million
Homegrown electronics retailer Newstead Technologies is winding up its business amid accumulated debts of more than $60 million, The Straits Times has learnt. Its debt mountain includes about $4.7 million owed to Apple South Asia, while Newstead employees have around $1.6 million outstanding owed to them, according to a preliminary list of 170 creditors seen by The Straits Times. Newstead sold off its 10 Nubox outlets to local Apple reseller Elush, which operates the iStudio and Epicentre stores, last November. Sources said the sale might help to reduce the amount owed to Apple, which declined to comment when contacted. Newstead now operates two outlets - at Nex @ Serangoon and Jurong Point - after a restructuring. It will cease all retail operations by the end of the month. It had more than 40 outlets at the peak of its business. Its troubles mean that Funan DigitalLife Mall will not have Newstead as an anchor IT tenant when the refurbished centre re-opens in the next few months, said a spokesman for CapitaLand, which manages Funan.
Oasis Terraces, a seven-storey mall built along the waterfront in Punggol, is integrated with transportation nodes and also boasts a 24-hour fitness centre and a supermarket which opens till 11pm. Residents had a say in what they wanted included in the early planning stages of the Housing and Development Board (HDB) development in 2014. In officially opening the mall, National Development Minister Lawrence Wong said Oasis Terraces is the first of six new-generation neighbourhood centres, which are developed with residents' feedback and HDB as the landlord. Unlike a private developer, he said the HDB is not out to maximise commercial returns and is able to ensure the centres are well integrated with transportation nodes and the overall plans for the towns. Oasis Terraces, for instance, has community gardens, an outdoor playground and a fitness corner on the rooftop, besides its 106 shops. Shops are allocated to tenants through a tender process, but the decisions are based not just on highest price but also on qualitative factors such as the proposed business concept and operating model, said Mr Wong. "This allows us to better manage the tenant mix to address the needs of residents," he said.
Frasers Property buying 17.8% stake in S'pore retail mall fund for $356m
Frasers Property has inked a conditional agreement to acquire a 17.8 per cent stake in Singapore's largest non-listed retail mall fund for about $356.4 million. The fund, PGIM Real Estate Asia Retail Fund (PGIM Real Estate), owns and manages six retail malls in Singapore - namely Tiong Bahru Plaza, White Sands, Liang Court, Hougang Mall, Century Square and Tampines 1 - as well as office property Central Plaza. The fund is the property investment vehicle of PGIM, the global investment management arm of New York Stock Exchange-listed Prudential Financial.
Pair of Club Street shophouses up for sale at S$25m
A pair of adjoining three-storey conservation commercial shophouses at 44 and 46 Club Street have been put on sale. The properties will be sold with existing tenancy at a price of S$25 million for both shophouses. The 999-year shophouses have a combined land area of 221.8 sqm (about 2,387 sq ft) and their total floor area is estimated to be about 6,208 sq ft. Under the Urban Redevelopment Authority's Master Plan 2014, the shophouses are sited on "commercial" land within the historic district of Chinatown-Telok Ayer in the Central Business District (CBD). Foreigners are eligible to purchase the properties and additional buyer's stamp duty is not required. The sale will be conducted through an expression of interest exercise which closes on March 19, 2019, at 3pm.
The biggest of the four deals, at S$80 million, is for a row of six shophouses - Nos 33, 35, 37, 39, 41 and 43 Tanjong Pagar Road - which have four floors and a mezzanine level. The ground-floor space of two of the shophouses is leased to a bridal boutique; that for another two shophouses leased to Five Oars Coffee Roasters, and that for the last two shophouses to The Proof Collective, which uses the space as its offices and also operates a cocktail bar at the back. The S$80 million being paid for the six shophouses works out to around S$2,600 per square foot based on a built-up area of about 30,800 sq ft. The shophouses stand on land with a 99-year leasehold tenure that started in December 1994, which leaves nearly 75 years on the lease.
A freehold industrial development located at 14 Genting Road has been launched for sale at an indicative asking price of S$15.9 million. This works out to a land rate of S$938.44 psf. The five-storey building houses production areas on the first to third levels, and secondary workers' dormitories on the fourth and fifth floors, which comprise a total of 68 beds. The property sits on a site area of 5,758 sq ft, with a gross floor area of 16,943 sq ft. Under the 2014 Master Plan, the site is zoned "Industrial (B1)", for clean and light industrial usage, with a permissible gross plot ratio of 2.5. It is currently approved for use as a secondary workers' dormitory and may also be used by end users from clean and light industries requiring production, storage and/or ancillary office spaces. The building is an exclusive B1 site located near several matured industrial estates areas, including MacPherson, Aljunied, Kallang, Tai Seng, Kim Chuan and Ubi. The expression of interest closes on March 13 at 3 pm.
Cisco invests S$25m in cybersecurity centre and first S-E Asian co-innovation hub in S'pore
Cisco launched its first South-east Asian co-innovation centre in Singapore, focused on cybersecurity and the Internet of Things, alongside a new cybersecurity centre of excellence here. The US-based tech firm has invested S$25 million in both centres, its chief of operations Irving Tan told The Business Times. The move was supported by Singapore's Economic Development Board (EDB). Cisco's Singapore office has grown from a regional business headquarters into a hub to address growing cyber threats in Asia, said Mr Tan. "As you create more smart cities and smart factories... there are economic and social benefits. But we have to recognise that there are more cybersecurity threats we have to deal with," he noted. Cisco's new cybersecurity centre of excellence will host a threat intelligence headquarters and Security Operations Centre (SOC) which will partner the government, industry players and universities.
Global Premium Hotels puts 23 hotels on market at S$1.4b
A portfolio of 23 hotels, mostly under the Fragrance brand, is up for sale by Global Premium Hotels (GPH) at an indicative price of S$1.4 billion. They have been on the market since the second half of last year. Although there have been no takers so far it is not for the lack of interest, said GPH chairman James Koh. In an interview with The Business Times, Mr Koh, who is also founder, chairman and CEO of Fragrance Group, said GPH had received "a couple of offers". The indicative price is based on a valuation done by an international valuer whose identity Mr Koh declined to name. At S$1.4 billion, the indicative price translates to about S$720,000 per key. "I have my way of doing business. It is not you come and offer me a big discount and want me to take a haircut. I won't entertain." He said depending on negotiations with buyers, the sale could go also include the company and management team, for ease of keeping the hotels in operation.
Singapore woos India's millennial travellers
Singapore wants to attract Indian millennial tourists. And it is hoping a three-day festival will showcase to young Indians all that Singapore has to offer - from art and entertainment to a bustling nightlife. The Singapore Tourism Board (STB) has partnered with the St+art India Foundation, a non-profit group, for the experiential festival, called Singapore Weekender, that started in New Delhi. The festival includes works by a dozen Singaporean artists such as Samantha Lo and Daniel Yu, a pop-up cocktail bar by Jigger and Pony, and a performance by Singaporean rapper Yung Raja. A road in central Delhi's Lodhi art district has been converted into "Singapore Lane" featuring street art by Singaporean artists like Eugene Soh and Yip Yew Chong. According to STB, 1.45 million Indian tourists visited Singapore in 2018, a 13 per cent increase over the previous year, making India the third largest source of tourists after China and Indonesia. Last year, Singapore saw 3.4 million visitors from China and three million from Indonesia.