Phase 1 of Marina Bay project 72% leased

Source : Straits Times – 5 Nov 2009

PHASE 1 of the new Marina Bay Financial Centre (MBFC) mega office development is now 72 per cent leased, thanks to mining company BHP Billiton taking a further four floors.

The company has taken the additional floor space at Tower Two which, together with Tower One, comprises the first phase of the ambitious project intended as a seamless extension of the Central Business District.

BHP committed to 142,000 sq ft at Tower Two a year ago and is now slated to have a total leased floor area for 10 years from 2011 of 231,000 sq ft on levels 40 to 50 of Tower Two.

Phase 2 of MBFC will be complete when Tower Three has been opened. But already, about 64 per cent of total office space in Phases 1 and 2 has been leased.

The three office towers have almost three million sq ft of grade A office space. MBFC will also have two residential towers of 649 luxury apartments, and 176,000 sq ft of retail space.

Mr Wilson Kwong, chief executive of Raffles Quay Asset Management, which manages the centre, said BHP’s decision to take up additional space is testament to the MBFC’s vision of being Asia’s best business address.

BHP’s commitment is a healthy boost of confidence for the Asian office market, which some analysts have tipped to improve as rental decline slows further.

According to a new report by property consultancy firm CB Richard Ellis, the Asian office market downturn stabilised in the third quarter, as the improvement in Asian employment markets clearly indicated that the office market was close to bottoming out.

It also said that activity surrounding the planning of new premises in Singapore rose, as did occupier requests for relocation alternatives.

The firm noted that while Singaporean office rents fell for the fourth consecutive quarter, clear evidence has emerged that the pace of rental decline has eased following an improvement in business confidence.

The MBFC is being developed by a joint venture comprising property developers Cheung Kong Holdings, Hongkong Land and Keppel Land.

MND’s move to cut land sales will not derail rejuvenation plans

Source : Channel NewsAsia - 3 Nov 2008

The Singapore government’s move to cut the number of land sites it is putting up for sale will affect plans to redevelop certain parts of the country.

But analysts say it will not slow efforts to rejuvenate the overall landscape as there are many other projects underway.

In fact, the move was praised as a prudent one, given the difficult economic environment.

Last Friday, the Ministry of National Development said no sites will be released under the confirmed list in the first half of next year.

It also cut down the sites for sale in 2008 from seven to just one. Five sites were moved to a reserve list, while one was taken off entirely.

“In view of the current market, even if tenders were to carry on, market forces will result in either no bids or bids being received at not acceptable levels,” said the director of research and advisory at Colliers International, Tan Huey Ying.

CEO and regional economist of CIMB-GK Research, Song Seng Wun, said: “In the current environment where there is a crunch as far as global credit is concerned, and a downside of global growth, from the government’s standpoint, it doesn’t make sense to proceed with selling valuable assets when they may receive less than they normally do in an upcycle.”

The cutback may also help to prevent a potential supply glut and help keep property prices firm.

The last time the government cut back on land sales was exactly seven years ago - a month after the September 11 terror attack in the United States. The global economy was then facing uncertainty and volatility similar to the current environment.

But the move means that plans to develop areas such as the Ophir-Rochor Corridor will be interrupted. The Ophir-Rochor site was one of those removed from the confirmed list.

The development of this site would have doubled the size of Singapore’s financial district to match that of Hong Kong’s, at about 2.82 million square metres of office space.

But observers say this will not have a major impact on Singapore’s overall development.

Tan said: “I think Singapore’s progress (as) a nation is in no way pivotal on the development on these sites being taken off right now. Singapore also has a lot underway in terms of physical makeover.

“For example, we already have the two IRs, the Marina Bay Financial Centre, the three retail malls in Orchard Road and a host of other luxurious residential developments coming on… (at) Sentosa Cove, Marina Bay, Orchard Road.

“Singapore’s competitive edge will in no way be compromised by the slight delay in the development of these projects.”

IRs insist: we will open on time

Source : Straits Times - 31 Oct 2008

Don’t bet on it! That’s the advice from quite a few observers as the people behind Singapore’s two planned integrated resorts insist that they will open on time.

Marina Bay Sands is scheduled to open at the end of next year. Sentosa Resorts World is set to open in the first quarter of 2010.

Upset contractors, who say the two operators are trying to renegotiate the prices verbally agreed upon for their services, told Today this was a sign of “budget difficulties”. And as a result, the projects would most likely be delayed.

“The cost of building the IRs are turning out to be higher than they had budgeted for,” said a contractor, without giving his name.

A major stumbling block - quite literally - for the construction of the Marina Bay Sands is an old British sea wall which was discovered shortly after excavation works began. Last year, the project designer told the media that the process of removing it was “extremely costly and
complicated”.

But when contacted, both resort operators rebutted suggestions - reported in The Straits Times yesterday - that they would not be opening on time.

Marina Bay Sands general manager George Tanasijevich said: “We continue to target the end of next year for the opening of Marina Bay Sands.”

The Straits Times article added that show organisers and couples hoping to book the venue for their weddings at the end of the year had been turned away.

Mr Tanasijevich replied that Marina Bay Sands were only accepting bookings that take place after the end of next year. A logical move, according to the company, given that no specific date has been fixed for the resort’s opening.

Sentosa Resorts World’s head of communications Krist Boo also reiterated that its plans were on track. The Straits Times article said only four hotels, casinos and the Universal Studios theme park would be opened as scheduled in the first quarter of next year. The reason for the delays of its remaining facilities was due to the fact that there was “a pressing need to find storage space for the equipment” of the theme park.

But Ms Boo maintained this had been “the plan all along”. She added: “The other attractions, including the marine life park, the integrated destination spa and remaining two hotels, will open in subsequent quarters.”

She stated: “It would not be accurate to describe this schedule as the result of ‘delays’.”

Responding to the contractors’ grievances, Ms Boo said the resort’s management “has a responsibility to its shareholders to drive a hard bargain during negotiations”. She stressed: “All the financing for the resort is in place, and there are no ‘budget difficulties’.”

Australian bumper haul for MBFC

Source : Today - 11 Sep 2008

Australian companies BHP Billiton and Macquarie Group have been confirmed as the newest tenants of Marina Bay Financial Centre (MBFC).

Mining firm BHP Billiton and banking giant Macquarie will take up 142,000 and 74,000 sq feet of space respectively in Tower 1 of the office building at downtown Marina, said Raffles Quay Asset Management, which manages MBFC, in a statement. Both firms will take 10-year leases.

Murex Southeast Asia, a software developer, will take up 25,000 sq ft on a six-year lease.

Together, the three will occupy more than 8 per cent of the 2.9 million sq feet of office space at MBFC, which is slated for completion by the second quarter of 2010.

The development is owned by Hongkong Land, Keppel Land and Cheung Kong Holdings.

With the the three tenants, 61 per cent of office space at MBFC is now pre-committed. Raffles Quay declined to reveal the rents for the three.

BHP Billiton’s lease at MBFC follows on news last week that it had renewed its tenancy at Capital Tower for two to three years. The company also has operations at Springleaf Tower. It could not confirm yesterday if the move was due to expansion or a consolidation of its existing operations.

Macquarie’s move to MBFC is motivated by its expansion and increase in its headcount.

The investment and financial services provider currently leases about 40,000 sq ft at Capital Square.

Mr Donald Han, managing director of Cushman and Wakefield, reckons rents for the newest tenants could fall between $14 and $15 per sq ft (psf), a discount to the $18 to $22 psf range for a lease in the same location currently.

“Whoever is willing to commit longer ahead of completion would typically be asking for a larger discount,” said Mr Han.

MBFC: Over 65% of Phase 1 leased out

Source : Business Times - 11 Sep 2008

BHP Billiton and Macquarie take up total of more than 216,000 sq ft

The first phase of Marina Bay Financial Centre is 65.6 per cent pre-leased, almost two years ahead of its completion in Q2 2010. Two big names from Australia, BHP Billiton and Macquarie Group, are among the latest tenants announced by the consortium developing the mega project.

The BHP Billiton deal confirms a BT story last month.

The resources giant will lease 142,000 sq ft on levels 44 to 50 of MBFC’s Tower 2 under the project’s first phase, while Macquarie will take more than 74,000 sq ft on levels 16 to 18 of the same tower. Both tenancies are for 10 years, with options for renewal and expansion.

Murex Southeast Asia, which is involved in software development for trading, risk management and processing, has leased about 25,000 sq ft on level 19 of Tower 2 under a six-year tenancy agreement.

With the latest signings, the total 2.92 million sq ft of Grade A office space in both phases of the MBFC development is 61 per cent pre-committed.

The project is a symbol of Singapore’s ambition to be a leading financial centre.

The office component of MBFC’s Phase 1 comprises Tower 1, fully let and anchored by Standard Chartered Bank, and Tower 2, which is now 45 per cent pre-leased. The second phase, slated for completion in Q2 2012, consists of Tower 3, which is 55 per cent pre-committed and anchored by DBS Bank with a 700,000 sq ft lease.

MBFC marketing agent CB Richard Ellis’s executive director Moray Armstrong said that while overall office leasing momentum in Singapore has eased in the past few months, the latest signings at MBFC are ‘a good indicator that demand for quality office space remains in positive territory’.

‘There is, of course, some caution among occupiers, but across the majority of our client base we sense there is underlying confidence in Singapore’s relative position,’ he said.

The MBFC project also includes two residential developments and 119,000 sq ft of retail space. The project is being developed by a consortium comprising Hongkong Land, Keppel Land and Li Ka-shing’s Cheung Kong (Holdings)/ Hutchison Whampoa.