Albedo enters Iskandar deal, potential RTO Source: Business Time By:Vivien Shiao Albedo Ltd, a company that trades in steel and other raw materials, has entered into a non-binding memorandum of understanding (MOU) with Temasya Cergas Sdn Bhd. This will see Albedo purchase five parcels of land totalling 308 hectares located in Iskandar, Malaysia from Temasya Cergas. Albedo will do so by allotting and issuing new ordinary shares to Temasya Cergas, which could potentially result in a potential reverse takeover. The lands acquired by Albedo are located in Gelang Patah, the vicinity of Setia Eco Gardens and are to the north of Iskandar, Malaysia's flagship Nusajaya development. The acquisition cost has yet been finalised. The lands range from 29 acres to 279 acres each, and are slated for an integrated business park and mixed-use commercial and residential development. The company said the new acquisition will allow the group to venture into new business areas which have the potential for growth. This comes as it faces weakened profit margins caused by strong competition and the softening demand for steel-related raw materials and consumables. Avant at Aljunied condo up for sale Source: Straits Times | Money By Rachel Scully THE Avant at Aljunied condominium has been put up for sale - less than a year after its completion. The standalone eight-storey building is on a 99-year lease and has 50 flats, all rented to a single, unnamed tenant. It has a guide price of between $42 million and $44 million, which translates to $1,394 to $1,461 per sq ft (psf) given its gross floor area of about 30,108 sq ft. Transactions in similar developments in the immediate vicinity such as Suites @ Guillemard and Suites @ Sims have achieved $1,500 to $1,900 psf in recent months, CBRE noted yesterday. Avant, which received its temporary occupation permit only last October, has a mix of studio, one-bedroom and two- bedroom units, with 43 of the 50 units less than 540 sq ft each. Its amenities include a swimming pool, secure card access and a mechanised car-parking system. Mr Galven Tan, the associate director of investment properties at CBRE, said the developer and owner initially saw the project as a long-term investment. But after receiving several unsolicited offers in the past few months, they have decided to divest the property and pursue other investments. Opening up the sale to the market would help the developer to obtain the maximum price for the property, he added. "The buyer can enjoy recurring income from the tenant that is already in place and in future, sell off the property, either en bloc or unit by unit," said Mr Tan. Based on the guide price, the buyer could expect an annual rental yield of 3 per cent, he added. The expression of interest closes at 3pm on Sept 24. EC market heats up under new loan rules Easier to get maximum loan amounts for EC units than private ones: Analysts Source: Straits Times | Money By Cheryl Ong BUYERS flocked to the latest two executive condominiums (ECs) to hit the market after new mortgage lending rules introduced in June dampened buying interest in private properties. Analysts attributed the demand to the way Housing Board rules are structured that make it easier for buyers of ECs to seek the maximum loan quantum under the new lending rules, compared with private properties. ECs are a hybrid of private-public housing sold with HDB restrictions, but turn private after 10 years. At Sea Horizon in Pasir Ris, the EC received a total of 1,500 e-applications at the closing yesterday, making the 495-unit project more than three times oversubscribed. This is the highest number of e-applications for an EC so far this year. The project is jointly developed by Hao Yuan Investment and Sustained Land, and is tipped to be launched at an average price of $800 per sq ft (psf) when it opens for bookings on Sept 7, analysts said. If launched at that price, it will be the most expensive EC ever on a psf basis, they added. A spokesman for Sea Horizon said yesterday: "We attribute its popularity to the unique coastal location, which is especially rare for ECs." Units at the project range from 71 sq m two-bedroom ones to 160 sq m five-bedders. It also has penthouses ranging from 129 sq m to 160 sq m. Meanwhile, City Developments' EC project Lush Acres, located in Sengkang, also saw robust demand, with 76 per cent of its units snapped up over the weekend. Units at the 380-unit project at Fernvale Close were sold at an average price of $785 psf, with prices ranging from $704,000 to $1,275,200. Analysts said that buyers are setting their sights on the relatively cheaper ECs as it is now harder to get the maximum loan quantum for private property purchases after the implementation of the total debt servicing ratio framework. The framework takes into account a borrower's total debt repayments, including mortgages and others. For buyers who want a property loan, banks will have to ensure that total monthly debt repayments do not exceed 60 per cent of gross monthly income. Owners who still own an HDB flat while applying for an EC unit have a higher chance of being granted the maximum loan quantum for the mortgage, said OrangeTee research head Christine Li. This is because EC buyers must sell their existing flats upon completion of an EC development under current HDB rules. In effect, banks will only consider the monthly payment towards the EC, plus other debt obligations, when computing the loan a buyer is eligible for. But this is not the case for private property mortgages. "Even if an upgrader is thinking of selling his HDB flat after buying a private property, the bank will still include the monthly mortgage instalment of the HDB flat together with the new commitment towards the private property when calculating the loan quantum he is eligible for at the point of application," said Ms Li. "This reduces his chances of getting a bigger loan, and affects affordability especially if they have substantial debt obligations." |