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Record prices eyed for West Coast condo

Posted on 11 Mar 2010 | Comments Off

An artist’s impression of The Vision in West Coast Crescent. The apartments are mostly between 818 sq ft and 1,604 sq ft. — PHOTO: CHEUNG KONG

ONE of Hong Kong’s biggest developers, Cheung Kong, has made its intentions clear for a sleepy mass market corner of the West Coast. It is asking what would be – if achieved – record prices for the area at a preview for The Vision, on West Coast Crescent.

The preview, starting tomorrow, involves the release of up to 100 units mostly priced at $1,000 to $1,200 per sq ft (psf). This puts the starting price for an 818 sq ft two-bedder at nearly $900,000.

Cheung Kong’s vision is to develop a high-end project to be the area’s most luxurious building, said sales manager Cannas Ho at a media briefing yesterday: ‘We’re not building a mass product, we’re building a high-quality product.’

That may explain the relatively high pricing for a project in something of a backwater. A property expert noted there is no particular MRT advantage there.

Experts said if the units sell at the asking prices, it would be a record for the West Coast area.

Next door, Blue Horizon registered seven deals this year at $764 to $841 psf.

Last year, Far East Organization made the news when it launched the 329-unit Centro Residences in Ang Mo Kio at over $1,100 psf – a suburban record.

Ms Ho said it is targeting upgraders, families and expatriates, and has fielded more than 1,000 inquiries in the past fortnight.

A second phase will be offered by year-end. Pricing depends on the market then, ‘but we must adjust it upwards’, she said.

She said The Vision, to boast 281 apartments and 14 strata terrace units, is near the science and lifestyle hub one-north, and educational institutions.

The apartments are mostly between 818 sq ft and 1,604 sq ft, with two four-bedroom penthouses at 2,702 sq ft each. The two-bedder is the smallest unit.

Cheung Kong is packing The Vision with stylish fittings and branded appliances designed to give the 99-year leasehold project a luxurious vibe.

For instance, the kitchen comes with a Smeg induction cooker and electric oven and the bathroom has a Hansa rainforest shower with body jet.

A clubhouse, Sky Paragon, is on the top floor of the 33-storey building, with a gym, spa, bar and function room.

At the preview, Cheung Kong will release up to half of the 14 strata terrace units, each with a built-up area of about 5,000 sq ft. Interested parties will have to submit offers, said Ms Ho.

Cheung Kong clinched the site in a state tender in March 2008 with a bid of $305 psf per plot ratio (ppr). Last year, the developer paid a much higher than expected sum of about $533 psf ppr for an Upper Thomson Road plot.

Meanwhile, Sing Holdings will hold a preview of its 229-unit The Laurels at Cairnhill Road this weekend, concurrently in Singapore and Jakarta, while Tiong Aik will preview Coralis near Marine Parade tomorrow.

About 100 The Laurels units will be released with typical units priced at $2,600 to $3,050 psf.

Over 80 units have been sold since the first special sale to ex-owners, staff and business associates was held late last month at $2,500 to $2,900 psf.

Source : Straits Times – 11 Mar 2010

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Posted in New Launches

Tagged Cheung Kong, Developer Sales, New Launches, The Vision, The Vision Singapore, The Vision West Coast

Lippo: No change in strategy for OUE

Posted on 11 Mar 2010 | Comments Off

Group will continue to develop, manage prime landmark properties in region

It will be business as usual for Overseas Union Enterprise (OUE), even as Indonesia’s Lippo Group takes sole control of the property firm.

‘There will be no change to OUE’s strategy,’ Lippo told BT yesterday. ‘Leveraging on its hospitality experience, OUE will continue to develop and manage landmark properties in prime locations in Singapore and across the region.

‘Under Lippo’s stewardship, OUE will continue to focus on retail, commercial and residential developments, which will allow the group to achieve sustainable growth over the long term.’

Questions over OUE’s direction surfaced after it underwent a significant ownership change on Tuesday. Its major shareholder Lippo paid $957 million – or $11 per share – to acquire the stake of another major shareholder Usaha Tegas.

This raised Lippo’s direct and indirect interests in OUE to 88.52 per cent from 64.67 per cent. Lippo president Stephen Riady also became OUE’s executive chairman.

Lippo is controlled by the Riady family and Usaha Tegas by Malaysian tycoon Ananda Krishnan. Talk of tension between two of the region’s richest business groups have been making its rounds, as both parties got into a legal battle over a failed pay-TV tie-up in Indonesia.

Last month, Mr Krishnan’s subscription TV group Astro won an award of some US$230 million against Lippo.

Lippo did not say if differences with Mr Krishnan drove it to take over the latter’s stake in OUE. But it shared that the deal came about after Bank of America Merrill Lynch approached both parties ‘with an attractive and compelling proposal’.

Lippo added: ‘We have been in discussions since that time and believe that this transaction makes sense and will benefit all parties.’

It is tapping on internal funds and bank borrowings to raise the $957 million needed.

Yesterday, OUE’s share price dipped slightly by 18 cents or 1.5 per cent to close at $11.80. At this level, the price still exceeds the $11 which Lippo valued each additional share at. It also remains much higher than the closing price of $9.04 last Friday.

Lippo reiterated that the deal will ‘further strengthen its asset base in Singapore’. It has been active in the property market here even on its own, with residential projects such as Holland Collection and Centennia Suites under its belt. Its unit PT Lippo Karawaci is also the sponsor of Lippo-Mapletree Indonesia Retail Trust.

‘Lippo is very comfortable with Singapore and has always looked for opportunities to expand its presence here,’ said Chesterton Suntec International research and consultancy director Colin Tan.

He did not rule out a delisting of OUE – its free float just slightly exceeds 10 per cent. But this might not happen until Lippo ‘contemplates its next course of action,’ he said.

Source : Business Times – 11 Mar 2010