Tag Archives: Singapore REITS

The Interlace replaces Gillman Heights

Posted on 8 Sep 2009 | Comments Off on The Interlace replaces Gillman Heights

A NETWORK of apartments and recreational spaces looks set to replace the vertical blocks that used to be the landmark of Gillman Heights.  Unveiling The Interlace on Friday, CapitaLand and Hotel Properties Limited (HPL) said they are ready to launch the project next month.

Featuring 1,040 apartments on a 99-year leasehold land of 871,884 square feet, The Interlace will have units that range in size between 807 sq ft for two bedroom apartments and 4,306 sq ft for “super penthouses”.

CapitaLand president and chief executive Liew Mun Leong declined to disclose how much the units will cost, but said the firm is trying hard to price them under $1,000 psf. The Interlace sits on the site which used to house 608 units at Gillman Heights. The former HUDC estate was in the news following a $548 million collective sale inked in 2007, and subsequently, a series of legal cases when a minority group of owners challenged the sale. The deal was finally wrapped up in May this year.

The development of The Interlace is led by CapitaLand and two other shareholders, including HPL. The construction cost is expected to be $250 to $270 psf and total investment is estimated at $1.4 billion. The construction contract is  expected to be awarded by year-end and the project will be completed in 2014. Continue reading →

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Posted in Construction, Developers, New Launches

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Despite cash calls, Reits are doing well

Posted on 29 Aug 2009 | Comments Off on Despite cash calls, Reits are doing well

Out of the 18 Reits that have announced their results, 12 reported revenue growth

YET another real estate investment trust (Reit) went cap-in-hand to its shareholders this week. Fortune Reit said that it was raising HK$1.9 billion (S$354.4 million) from a one-for-one rights issue to buy three malls in Hong Kong and pay down debt.

The news was not surprising. Reits have been raising cash by the billion. In June, Starhill Global Reit raised $337.3 million through its rights issue. Unitholders of CapitaMall Trust, CapitaCommercial Trust, Ascendas Reit and Saizen Reit have together dug out $2.16 billion from their piggy banks. Frasers Commercial Trust is raising $214 million in a three-for-one issue. Owning a Reit is not cheap.

It has not been rewarding either. The Straits Times Reit Index has underperformed the benchmark Straits Times Index almost every day in the past 12 months. Despite some recovery since March, Reit returns are still some 15 per cent behind the equity index. Unit prices have been driven down by concerns over refinancing and worries that commercial or industrial rentals will not get sprightly, and that hospitality rates will remain depressed. Continue reading →

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Posted in Funds

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