Real News‎ > ‎2012‎ > ‎August 2012‎ > ‎

17 August 2012

17th August, Friday




Marina Bay area looking extraordinary successful

Source: Business Times

Even in its infancy, Marina Bay, the new growth area slated to be the new extension of the traditional CBD, has achieved much success both in terms of leasing rates and return on investment.

Figures compiled by a consultancy show that while more than $7.5 billion has been invested in Marina Bay by the government to date, more than $6.2 billion has been received by URA from the sale of land parcels (which so far constitute about 20 per cent of the available stock).

There has also been more than $25 billion of local and foreign equity pumped into developments in the area.

Marina Bay is expected to deliver potentially 30.4 million sq ft of office space when fully developed. In addition to the traditional central business district (CBD), which yields about 21.6 million sq ft of office space, Singapore's office space is expected to more than double to 52 million sq ft over the next 20-25 years.

To date, the six office towers (totalling 5.5 million square feet) in Marina Bay enjoy an average pre-lease commitment level upon completion of 82 per cent.

The banks were the first to lead the charge into Marina Bay. But the make-up has been changing. The proportion of financial institutions in Marina Bay has shrunk, from 80 to 65 per cent, and the key reason for that is there has been a stronger take-up of late by complementary industries.

Legal firms now account for the second-biggest occupier share at 8 per cent. The information technology sector made up 6 per cent, while commodities and insurance firms both recorded 5 per cent.

Residential developments in the CBD, too, have expanded. From 2007, the stock has doubled, with 2,360 residential units added to the market. Currently, there are between 3,000 and 3,500 residential apartments in the CBD.

Upcoming projects, including Cecil Suites (272 units), Marina One (1,006 units), and a residential development at what used to be Chow House (128 units), are expected to launch between the second half of this year and 2014.


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Marina Bay Financial Centre Tower 3 signs on new tenants

Source: Channelnewsasia

Raffles Quay Asset Management (RQAM) on Thursday said it has achieved a commitment level of over 70 per cent or close to 890,000 sq ft for its Marina Bay Financial Centre (MBFC) Tower 3.

In a statement, RQAM added that it has signed on new tenants, including Mead Johnson, Berge Bulk, Clifford Capital and Clyde & Co.

Currently, the tenants at MBFC Tower 3 include anchor tenant DBS Bank, Ashurst LLP, Clifford Chance, Fitness First, McGraw-Hill, Regus and WongPartnership.


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Better showing for ready-built JTC factories in Q2

Source: Business Times

JTC'S ready-built facilities (RBF) seem to have made a comeback in the second quarter of 2012, with net allocation and overall occupancy showing improvement over the previous quarter.

Net allocation - defined as the difference between gross allocation and termination - of RBF jumped 88 per cent quarter-on-quarter to 9,600 sq m from 5,100 sq m previously, according to the latest JTC quarterly facilities report.

The stellar performance was largely due to a six-fold increase in net allocation to 10,700 sq m of business park space from 1,800 sq m in 1Q, as space was taken up at the newly completed CleanTech One Building.

Gross allocation of RBF also surpassed the 20,300 sq m achieved in 1Q by 4 per cent to 21,100 sq m during the period, while terminations fell to 11,500 sq m, down 24 per cent quarter-on-quarter.

Occupancy levels held up well and continued to hover around 96.2 per cent, up 0.3 percentage point from the previous quarter.

However, things were less rosy for prepared industrial land (PIL).

Net allocation of PIL (land made infrastructurally ready for lessees to develop their own industrial facilities) fell 52 per cent to 31.8 hectares in the second quarter from 66.3 ha in 1Q.

Gross allocation of PIL fell from 91.6 ha in 1Q to 52.6 ha in 2Q. Of this, around 17 per cent came from the manufacturing sector.

Terminations slipped from 25.3 ha in 1Q to 20.8 ha in 2Q, with 35 per cent of the overall land terminations arising from the manufacturing sector and 65 per cent from the manufacturing-related and supporting industries sector.

Looking ahead, JTC will have its hands full with a slew of projects, comprising small footprint standard factories, a surface engineering hub, MedTech 1, CleanTech Two and Fusionopolis Phase 2A that would be ready in the next one to three years.


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