Hiap Hoe

[greengiraffe]

Units pitched at Singapore buyers
THE AUSTRALIAN JULY 05, 2014 12:00AM
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Sarah Danckert

Property Reporter
Melbourne
SINGAPORE’S Hiap Hoe is hoping to win over buyers in its home country with the marketing of its new apartment project in the Melbourne Docklands being launched in the city state today.

Hiap Hoe’s Marina Tower Melbourne project will hold 461 apartments across two towers; the project will also include a hotel component.

Apartments will range from $400,000 to $2 million.

The project is located in the New Quay precinct of the Docklands, which is undergoing a raft of development after the Buxton family’s MAB Corporation was brought in as master developer for the sub-suburb after the departure of ING Real Estate.

It marks the first project for the Singapore-listed company in Melbourne after it burst on to the scene last year, buying $100m of development sites in a month.

Hiap Hoe joins a throng of ­developers from Asia recently rolling out apartment projects, adding to concerns that the city will soon witness an oversupply of units.

“We are truly excited about the efforts of the Hiap Hoe team in executing our regional expansion strategy,” Hiap Hoe executive chairman Teo Ho Beng said.

The project in being marketed by Andrew Leoncelli from CBRE.

“The local demand is very strong and we expect robust sales driven by this strong interest,” Mr Leoncelli said.

[sykn]

I observe the Australian newspaper noting that Hiap Hoe's foray adds to concerns that the city (Melbourne) will soon witness an oversupply of units. Having lived in Australia for nearly a decade, my understanding is that Australia is so big that once the city gets too congested, people just build further out from city centre, hence very hard to get a situation where prices of properties sky-rocketing (with very few exceptions). But the influx of the rich China migrants into the major cities may well change the dynamics as it has been reported recently that housing prices in major cities like Sydney have risen abnormally fast owing to influx of migrants. So Hiap Hoe and other Singaporean developers may well be right, but the jury is still out in my humble opinion.

[greengiraffe]

http://www.todayonline.com/business/prop...epage=true

property
Got S$191m to spare? Here’s a rare deal for you

The Treasure on Balmoral was launched in January last year, but logged only one sale, which was later dropped. Photo: Wee Teck Hian
BY
LEE YEN NEE
PUBLISHED: 4:04 AM, JULY 10, 2014(PAGE 1 OF 1) - PAGINATE
SINGAPORE — In a further sign that the high-end residential segment remains stuck in the doldrums, one developer is making the relatively bold move of offering all units in a District 10 condo in a bulk sale at a relatively cheap price, in an attempt to improve cash flow.

Developed by Hiap Hoe, the 48-unit Treasure on Balmoral is being offered at a guide price of S$191.4 million, or S$1,850 per square foot (psf), its marketing agent Savills said.

The project was first launched in January last year but managed to log only one sale, which was subsequently dropped, Urban Redevelopment Authority data showed.

“The buyer chose to give up the purchase as a result of the announcement of fresh market-cooling measures,” said Savills managing director Steven Ming, who added that Hiap Hoe is looking to monetise the project and explore other investment opportunities.

Analysts said while there have been several bulk sales in the past, developers usually resort to such a move only when sales are slow.

The high-end market has been the hardest hit by repeated rounds of cooling measures as well as the Total Debt Servicing Ratio framework. Between January and May, developers sold 203 new homes in this segment, one-fifth the 1,017 units sold in the same period last year.

“It is no secret that the high-end market is badly affected by the downturn, which is why we’re seeing developers working hard to offload their projects. And for this developer, (a bulk sale) is one way for them to exit this particular investment and move on,” said Mr Nicholas Mak, executive director of SLP International Property Consultants.

“It’s a sign of a challenging market conditions in the high-end segment. When the market is good, I don’t think developers would take this route because selling individual units is more lucrative. By selling in bulk, they have to offer some discounts.”

Mr Desmond Sim, CBRE’s head of research, said Hiap Hoe will be relieved of the risk and financial burden of holding onto unsold units if this strategy is successful.

“If there’s a buyer, Hiap Hoe can offload everything in one transaction even if the profit margin is smaller. If they sell the units individually, it’s very difficult to sell out quickly in the current soft market and, in the long run, the unsold units will put pressure on their balance sheets,” said Mr Sim.

“The location of the project is not bad and S$1,850 psf is quite a bargain, so if someone has the appetite for this, it’s good for the developer’s cash flow.”

He added it remains to be seen whether the sale would go through.

However, Mr Ming is optimistic that the pricing would attract some interest. “What we have here is a rare opportunity for private investors or ultra-high-net-worth individuals to acquire a well-located and high-quality product as an investment property or a strata sales exit in future.

“We believe this opportunity will attract wide-ranging investors, as many will see mid-to-long (term) value at this guide pricing.”

[specuvestor]

Looks like Second Chance was more nimble

[greengiraffe]

Looks like Second Chance was more nimble

2nd chance not off the hook yet as it is dependent on the listing of the mickey mouse REIT that is buying the assets from them

[opmi]

Looks like Second Chance was more nimble

2nd chance not off the hook yet as it is dependent on the listing of the mickey mouse REIT that is buying the assets from them

Ya. Don't know who want to buy this type of REITs. Think the second chance disposal will fail.




Sent from my iPhone using Tapatalk

[brattzz]

is the fire sale happening already?

[revelationofpyramids]

Agent said that nearly 400 units of the 461 units in Marina Tower Melbourne snapped up by buyers in Singapore and China and maybe Australia itself over just one week. Plenty money want to go Down Under still. Hiap Hoe will be making quite a bit from this project.

Maybe that's why they decide to sell Treasure although mainly its because Hiap Hoe is liable to pay the govt penalty if they don't sell. I think they still break even or only lose a bit if they manage to get $1,850 psf.

Hiap Hoe will TOP Waterscape soon, a project which they make lots of money, many more times the loss they need to take (if any) on Treasure.

Now worries, mate.[/align]

[greengiraffe]

http://www.theage.com.au/business/capita...0405h.html

Capital Gain: Hiap Hoe looks to level up in Lonsdale Street
Date
August 16, 2014

Marc Pallisco

The western suburbs’ most exclusive new office space at Williams Landing.

A $400 million-plus mixed-use village with two skyscrapers rising 67 and 51 levels is mooted to replace a rundown car-park at 380 Lonsdale Street – a site purchased by listed Singaporean developer Hiap Hoe 10 months ago with a permit for one 46-level building.

In another show of how fast Melbourne planning precedents have shifted in just a year, the proposed village will contain 1040 apartments and 469 car park bays compared with the permitted 627 flats and 774 bays.

The Australian Ballet School paid $4.7million for Queen Anne mansion ‘Auld Reekie’.
The Australian Ballet School paid $4.7million for Queen Anne mansion ‘Auld Reekie’.
Soon after buying the site Hiap Hoe announced it would engage boutique architect firm Elenberg Fraser to design a new concept for the site, which also has access to Little Lonsdale Street. At the time it was suggested the proposal would include two towers rising about 51 and 47 levels.

The taller skyscrapers in Elenberg Fraser’s latest proposal will sit above a five-level podium.

More than 300 flats will be configured as hotel suites, continuing a theme in many proposals recently lodged by offshore developers for residents to live with visitors. Retail, office, function space and rooftop recreation facilities will also form part of the proposed new project.

Duckboard House has plenty of development airspace.
Duckboard House has plenty of development airspace.
Hiap Hoe paid $43.8 million for the 3165-square-metre Lonsdale Street site as part of a $177.8 million spending spree that also saw it buy a Docklands development site and Bourke Street shopping centre, with airspace expected to be developed with offices.

Also this week, another Singapore developer, Aspial, lodged plans with Planning Minister Matthew Guy to replace a low-rise office at 383-405 King Street – until recently occupied by the National Australia Bank – with a 23-level, 392-unit apartment building.

In June it approached Mr Guy again to boost the height of proposed 49-level tower at 54-64 A’Beckett Street to 81-levels. The minister also approved Aspial’s plans for the revised 70 Kavanagh Street building – set to be the southern hemisphere’s first 100-storey super-scraper.

[Tiggerbee]

It seems that the Superbowl in Kovan had been closed. Is Hiap Hoe gonna redevelop that site into another commercial property?