Aspial

[greengiraffe]

4 purchases Down Under - 3 of which in Melbourne where its already a known fact that there is a over supply of apartment coming on stream. Cairns is a big unknown tourist town that is a cyclone prone area...

http://infopub.sgx.com/FileOpen/PR_ABeck...eID=293841

[greengiraffe]

Aspial’s third Melbourne buy
KYLAR LOUSSIKIAN THE AUSTRALIAN MAY 01, 2014 12:00AM

The Australia 108 building. Picture: John Gollings Source: Supplied
SINGAPORE’S Aspial Group has continued its aggressive expansion into Australia’s property market with its third office-building purchase in Melbourne since entering the city in December last year.

The purchase of the low-rise $26.8 million building at 54-64 A’Beckett Street brings Aspial’s total investment in Melbourne to $110.6m, including the “Australia 108” mega-development in Southbank.

Australia 108 was originally intended to rise 108 floors and 388m but the company was forced to resubmit plans for a smaller 99 floor development because of air-safety regulations.

The revised building will still be 25m taller than Eureka Tower, Melbourne’s tallest structure.

Those troubles have not deterred Aspial, which is also considering redeveloping the A’Beckett Street property, which has an active planning permit for a 49-storey residential tower.

Aspial chief executive Koh See Wee Seng said Melbourne had been named the world’s most livable city by the Economist Intelligence Unit for four years in a row.

“All of our Australian assets occupy choice and strategic locations which present strong development potential,” he said.

But a report released last year by Monash University warned of “impending oversupply” as Melbourne’s apartment boom intensifies, which is expected to result in at least another 39,000 apartments between 2013 and 2015.

Aspial has also committed to develop a vast residential and retail complex in Cairns after buying a 24,000 sq m site in February this year for $18.9m.

[greengiraffe]

Sounds like shoe-box specialists launching their specialty products again...

New condo could set Faber Heights abuzz
99-year leasehold project may ignite buying interest in area, say analysts


PUBLISHED ON MAY 10, 2014 1:13 AM



An artist's impression of Waterfront@Faber. Market watchers say the 99-year leasehold development, which comprises 199 units and 11 strata houses, could jump-start the neighbourhood's property sales. -- PHOTO: WORLD CLASS LAND

BY CHERYL ONG
INTEREST in the tranquil Faber Heights estate in West Coast could pick up soon with the launch of a new condo.

The area is mostly occupied by pricey landed housing and has only had two new launches in the past year, making it one of Singapore's sleepier property spots but this could soon change.

Market watchers believe the launch of Waterfront@Faber, a 99-year leasehold development by Aspial unit World Class Land, could jump-start the neighbourhood's property sales.

DTZ research head Lee Lay Keng said: "As there have not been many new launches in the area, there will be some buying interest."

While there is no MRT station in the area, facilities in the mature housing estate in Clementi and the Jurong Gateway district are nearby and could be draw factors, said consultants.

The official launch of Waterfront@Faber, which comprises 199 units and 11 strata houses, has not been confirmed but buyers were invited to a preview of the showflat earlier this month. Market insiders said it could start selling units next weekend.

Two-bedders are about 700 sq ft to 721 sq ft, three-bedroom units are around 1,033 sq ft and four-bedroom units range from 1,173 sq ft to 1,292 sq ft.

The strata-landed units range from 2,799 sq ft to 3,035 sq ft.

Prices start at $1,100 per sq ft (psf) to about $1,350 psf, making it "slightly below market expectations", said Ms Christine Li, research head at OrangeTee

The nearby Trilinq and NeWest projects that went on the market last year have had units that were sold for higher prices.

The IOI Group's 755-unit Trilinq in Jalan Lempeng has seen about 118 units sold at a median price of $1,509 psf since its launch in March last year.

Completed developments nearby include Hundred Trees, The Infiniti, Botannia, Regent Park and Park West but resale activity has been quiet, with only a handful of transactions, said R'ST Research director Ong Kah Seng.

Only eight units changed hands in the area in the first quarter, with median resale prices ranging from $813 psf to $1,198 psf.

The 396-unit Hundred Trees, which obtained its temporary occupation permit last year, had five sub-sale transactions

On the leasing front, the estate is popular with Japanese and Korean expatriates because of its proximity to the Japanese Kindergarten and Secondary School, the International Community School and the National University of Singapore. Expats working in the nearby one-north district and International Business Park also favour the estate.

Rising property prices have sent rental yields from 5.4 per cent in the first quarter of 2009 to 3.6 per cent in the first quarter of this year.

But Ms Lee said the smaller supply of units in the area will see healthy leasing demand. "Investors will face less competition for tenants," she said.

ocheryl@sph.com.sg

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Singapore brothers reach for the sky
BEN WILMOT THE AUSTRALIAN JUNE 17, 2014 12:00AM
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TWO of Singapore’s wealthiest brothers are competing to build Melbourne’s tallest apartment tower.

The contest was kicked off in January when Koh Wee Seng, the younger sibling of hotelier Koh Wee Meng, forged into the Australian market.

His Singapore-listed Aspial Corp unveiled plans to build Australia’s second-tallest tower behind the famed Surfers Paradise landmark Q1 Tower. His company snapped up the site in the Southbank district known as the Australia 108 project. It can accommodate a 312m tower, making it the city’s tallest.

Wee Seng was ranked as Singapore’s 40th richest person by Forbes magazine, due to his 75 per cent stake in Aspial, the country’s only listed jewellery retailer with a sideline in property development, giving him a fortune of $US450 million.

At the time, he said it was “a groundbreaking milestone for Aspial to play a part in the development of the tallest skyscraper in Melbourne, which will soon lend its compelling presence to the skyline’’.

Singapore hotelier Koh Wee Meng made his biggest play in local property last week. His Singapore-listed Fragrance Group struck a deal to purchase the 24-storey 555 Collins Street building in Melbourne and flagged plans for a mixed-use ­development. Fragrance bought the building from developer Harry Stamoulis for $78m in a deal brokered by CBRE’s Mark Wizel and Josh Rutman.

Stamoulis had tried teaming up with Daniel Grollo’s Grocon to develop an office tower on the site, but his earlier plans, for a 404m building that would have even topped Q1, generated most excitement.

Many doubted it would be built and Fragrance can now breathe life into the proposal given its financial heft. Wee Meng’s wealth was estimated at $US1.3 billion by Forbes. Although his tower will be ­behind the timing of the Australia 108 project, it could end up being the taller of the two.

[greengiraffe]

Approvals add 2000 flats to city skyline
SARAH DANCKERT THE AUSTRALIAN JUNE 27, 2014 12:00AM

CHINESE developer Starryland, Singapore’s Aspial Corporation and Shanghai-born Melbourne-based young gun developer Jeff Xu are the key beneficiaries of another bout of approvals for major apartment projects by the Victorian government.

The approvals will add more than 2000 apartments to the city’s skyline and add to economists’ concerns of a potential oversupply of inner-city apartments in Melbourne.

Applications by the three developers for three separate projects in the Melbourne CBD and surrounding areas were signed off by state Minister for Planning, Matthew Guy, yesterday.

Aspial Corporation has also been given the green light to begin its mammoth Australia 108 project that will stretch 100 levels and hold 1105 apartments.

Located in Southbank, Aspial’s tower will be the first 100-level apartment tower in the southern hemisphere, according to the state government.

Aspial’s approval came after the company reduced the scale of the project following warnings from air safety controllers that it would stretch into restricted airspace.

China’s Starryland has also been given approval to build a 54-storey tower that will consist of 295 apartments on Queensbridge Street in Southbank.

Meanwhile, Jeff Xu’s Golden Age has secured a permit to build an apartment tower at 452 Elizabeth Street in the western reaches of the CBD.

Mr Xu’s tower will host 622 apartments in a precinct that is close to Melbourne University and RMIT University.

The approvals come as Australian business magnate Lloyd Williams seeks approval for another large-scale apartment development nestled behind the Crown casino complex.

Mr Williams, through his company Hudson Conway, has secured a permit to demolish the company’s headquarters on Sturt Street and build a 41-storey apartment tower.

The development, worth about $150 million, will consist of 304 apartments.

In February this year, Mr Guy signed off on five new apartment projects in what the state government dubbed “Super Tuesday”.

[greengiraffe]

http://www.afr.com/p/business/property/m...bozWimhLNJ

Melbourne to build tallest tower in Southern Hemisphere
PUBLISHED: 7 HOURS 34 MINUTES AGO | UPDATE: 0 HOUR 0 MINUTES AGO

NICK LENAGHAN
Melbourne will soon be able claim the Southern Hemisphere’s tallest residential tower after Victorian Planning Minister Matthew Guy approved a 319-metre residential skyscraper proposed by Singaporean developer Aspial.

The $900-million Australia 108, on Melbourne’s Southbank just outside the CBD, will be Australia’s first 100-storey building.

At 319 metres from ground to roof, the building arguably pips the QI tower on the Gold Coast as a habitable residential tower.

The Gold Coast tower has a roof height of 245 metres, lower even than Melbourne’s Eureka Tower at 297 metres. However, a spire takes QI to a final height of 323 metres.

While the debate over who has the tallest tower picks up, Mr Guy is building a reputation for approving a run of residential skyscrapers through the Melbourne C BD.

“Central Melbourne is the right place for high-density, high-rise living,” he said. “Victoria has the strongest construction sector in Australia, and our planning system is geared towards maintaining this economic advantage.”

With 1105 apartments, the new Southbank tower, designed by Fender Katsalidis, just sneaks in under aviation guidelines that are required by the suburban Essendon airport.

Aviation limits are 322 metres at the Southbank site.

An earlier design for Australia 108 soared to 388 metres until it was discovered last year the ­proposal breached the federal aviation rules.

Aspial, headed by Singaporean magnate Koh Wee Seng, acquired the Southbank site in December.

“We are extremely proud to be able to deliver such a landmark project in Melbourne, where we see a great appetite for luxury apartment living,” Mr Koh said in a statement.

“We believe this building will play a major role in showcasing Melbourne as a world-class city and leader in modern architecture.”

TYCOON BROTHERS POWERFUL PLAYERS IN MELBOURNE
Aspial is also pursuing a second tall tower in A’Beckett Street.

That proposal is for an 82-storey building reaching 248 metres, boasting 750 apartments.

Melbourne’s towers can generally be built higher than those in Sydney, where aviation regulations limit towers to about 220 metres.

Koh Wee Seng and his older brother, property tycoon and hotelier Koh Wee Meng, have emerged only this year as powerful players on the Melbourne skyline. Koh Weng Meng’s Fragrance Group snapped up two Melbourne CBD sites in the past month, including 555 Collins Street, where plans for a 404-metre tower were once canvassed.

The aviation limit there is around 300 metres.

Meanwhile, Mr Guy approved another two residential towers on Thursday.

In all, the three projects are expected to generate more than $830 million in investments, deliver 2022 apartments and create 5800 ­construction jobs.

A 241-metre apartment tower is approved at 452 Elizabeth Street, with 75 storeys and 622 apartments.

A 54-storey tower has been ticked for 84-90 Queensbridge Street in ­Southbank.

[greengiraffe]

Aspial big on Brisbane
Matthew Cranston
422 words
15 Jul 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
Tycoon Koh Wee Seng's Singapore-listed Aspial Corporation, the developer of Melbourne's Australia 108 project, is closing in on a key Brisbane development site for more than $25 million.

The significance of the deal heralds the next phase in the Asian-backed residential investment boom in Australia, which started in Sydney and ­Melbourne and is spreading to ­Brisbane and Perth.

The site at 240 Margaret Street is now owned by the SEQ Water and backs on to the Vision site in Brisbane's central business district owned by AMP Capital's Select Property Portfolio No 3 and Billbergia.

Brisbane's tallest apartment tower was proposed for that neighbouring site before the global financial crisis hit. It is understood Aspial is planning a ­significant apartment tower on the SEQ Water site.

Aspial's Melbourne project is to stand 319 metres tall and include 1105 apartments, which is expected to place it ahead of the Sunland-developed Q1 on the Gold Coast. That development in Southbank would be the first 100-storey unit building in the southern hemisphere. Aspial's plan in Brisbane is expected to be large scale as well.

JLL's Seb Turnbull and Geoff McIntyre are believed to be dealing on the SEQ Water asset in Brisbane but were unavailable for comment.

Koh Wee Seng and his older brother, property tycoon and hotelier Koh Wee Meng, have emerged only this year as powerful players in Australia's residential development space.

Koh Weng Meng's Fragrance Group snapped up two Melbourne CBD sites in the past month and one on Perth.

For Brisbane the move by Aspial adds fuel to the booming apartment market, which so far has been dominated by local developers.

In the past few months some signs have emerged of Asian backed investors looking to take positions.

Real estate fund managers – the Singapore-based CLSA and TCAP – have been behind several Brisbane's residential apartment market plays.

Singaporean-backed Twin Ocean Group and Perth-based Sunfire Asset have stepped in to the market revealing they are to develop three residential high-rises in Brisbane with an end value of more than $250 million.

The boom in Brisbane apartments has also been entered into by southern developers such as PointCorp, the Pellicano family, Urban Construct and Melbourne BRW Rich Lister Tim Gurner.

Aspial representatives were unavailable for comment on Monday.

It is expected that Aspial will look at further sites in Brisbane that are both on the market and off market.


Fairfax Media Management Pty Limited

Document AFNR000020140714ea7f00009

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Aspial sees towers of strength
ROSANNE BARRETT THE AUSTRALIAN JULY 30, 2014 12:00AM

ASPIAL has lodged plans for a multi-million-dollar seven-tower residential and mixed-use complex in Cairns, in what would be the first apartment development in the far north Queensland city hard hit by the global financial crisis.

The Singapore-based developers behind Melbourne’s 100-storey Australia 108 tower propose six residential high-rises and an office block on their 24,000sq m site on Spence Street in Cairns.

The development, which is yet to be approved, would be constructed in stages. The first stage is a $200 million 204-apartment residential building designed by Cox Rayner architects.

Far north Queensland’s property market was crushed during the GFC, when Cairns’ four dominant residential developers went into administration.

Aspial chief executive Koh Wee Seng said in a statement the project was proof of the company’s confidence in the city.

“We are incredibly enthusiastic about the future of Cairns and the city’s growth potential, and we are working closely with local contractors and businesses and the council and state government to progress this exciting project,” Mr Koh said.

The developers paid $18,888,888 for the site in February. It was formerly owned by a private consortium with ties to HS Vision, parts of which went into receivership.

Herron Todd White research director Rick Carr said the project would have to be developed at a pace “commensurate with demand”.

“Unit development in Cairns right now is dead in the water,” Mr Carr said.

[Curiousparty]

Based on its Q2 financial statements/results:-
"At current market prices, the Group expects to make substantial profits from its development projects, both locally and in
Australia, due to the good margins for most of these projects.
The Property Business is expected to continue to contribute significantly to the Group’s revenue and profitability due to the
following reasons:-
First, based on the units sold in its property projects as at the date of this announcement, the Group has locked in total
revenue of about S$660 million which will be progressively recognized in accordance with the stage of construction.
Second, at current market prices, the potential sales revenue from local and overseas projects is estimated to be in excess of
S$3 billion."

Assuming a net profit margin of 15% on total potential revenue of $3 billion = $450mil net profit.
Outstanding no of shares = 1817 mil shares
Potential NAV gain ~ 25 cents.

Current book NAV = 17 cents (as of 2Q 2014)
max RNAV = 42 cents.

At current market price of 45 cents, it might be overvalued.
In addition, only $660mil revenue out of $3billion (or 22%) has been "locked in". Mr Market seems to be paying a future price for this counter...

[greengiraffe]

I dunno what Koh is up to but for sure for a property stock to trade at multiple to BV is a BIG achievement. For him to have amassed huge portfolio of landbank in mostly over-supply threatened Aussie gateway cities is also indicative of his strong backing. Too mysterious for me to be a BIG investor.

Odd Lots Vested
GG

Singapore-based Aspial eyes local apartment pipeline
THE AUSTRALIAN OCTOBER 20, 2014 12:00AM

Kylar Loussikian

Journalist
Sydney
Australia 108. Building. Skyscraper. Level 83-84 Sky Lobby Exterior View, photograph by John Gollings
Aspial has briefed investors on local projects. Source: Supplied

SINGAPORE-based Aspial Corporation, headed by billionaire businessman Koh Wee Seng, has amassed six sites in Australia since January, delivering a development pipeline of 5200 apartments, it has revealed in an investor briefing.

The secretive developer has bought a number of sites along the eastern seaboard, but has made few public comments about its development intentions.

But the presentation to Singaporean investors included details for several projects, including the well-known 99-storey Australia 108 skyscraper in Southbank, Melbourne, that will have a gross floor area of 140,000sq m and more than 1105 apartments.

Other Melbourne projects will include the 750-unit 82-storey apartment building on A’beckett Street, with 55,000sq m of floor space, and a 50,000sq m mixed-use development on King Street, with 634 units.

In Cairns, the Singapore-listed Aspial will build a 1250-apartment mixed-use site with one commercial tower and six residential blocks. The $200 million project, with 120,000sq m of floor space, is scheduled to be launched in early 2015. Aspial bought the site in February for $18.9m.

There are a further two projects in Brisbane, including an 820-apartment mixed-use development on Albert Street and a 700-unit project in nearby Margaret Street. Both Brisbane projects will be delivered next year. Aspial bought the Albert Street site in August, paying Cornerstone Properties about $36m.

Tough regulations and intensifying competition with Chinese players is driving Singaporean developers, long content with building largely within the city-state, to look abroad.

The $S61 billion ($55bn) listed property trust sector is also taking greater interest in Australia, and Britain, says analysts at Kuala Lumpur-based CIMB. With several listings on Singapore’s securities exchange this year, and a possible easing of strict leverage limits, many real estate investment trusts are flush with cash.

Shaw Lay See, director of the property sales group for local developer Far East Organization, said nearly all land sales in Singapore were through government tenders, which had become increasingly competitive, with prices rising higher than expected. “We have to be a lot more focused on the properties we are tendering for than before,” she said.

Earlier this month there were 18 bidders on a single block. This was the highest number she had seen in two years, she noted. The tender was eventually won by a Chinese developer.

The last twelve months has seen a number of Singaporean developers and investment trusts enter the Australian market, including Frasers Commercial, Suntec REIT, Keppel REIT, Starhill Global REIT, CDL Hospitality, Ascott Residence Trust, UOL Group, Hiap Hoe, Aspial, Sim Lian, Fraser Centrepoint, Chip Eng Seng, Ho Bee Land and Far East Organization.

“The key attractions for Singapore developers to venture into Australia have been the twin drivers of being in the right part of the property cycle compared to the local Singapore market as well as the ability to generate better returns from non-Singapore development projects,” the CIMB report said. While developments in Singapore have an average profit margin of 10 per cent, most Singaporean developers in Australia say they can achieve 15 to 20 per cent.

Keppel REIT, a Singaporean investment vehicle, reported yields in Australia of 8.1 per cent on its Australian commercial property holdings, against an average of 4 per cent in Singapore. Australian REITs and diversified property companies have a cost of debt approaching 6 per cent, according to CIMB, while Singaporean REITs can obtain funding at 3 per cent to 4.5 per cent, providing a competitive advantage.

Mark Wizel, director of CBRE’s Melbourne city sales, who brokered a series of high-profile sales to international groups, estimated there was about $3.5bn worth of development projects in the Melbourne CBD being undertaken by Singaporean developers. “Singaporean developers have been quick to see the insatiable appetite from mainland Chinese buyers of off-the-plan apartments and rather than be reactive to the situation like they have in Singapore, they have seen Australia and Melbourne as an opportunity to get on the offensive and benefit early,” he said.