Ho Bee leases out luxury units to ride out property troughs

[reporter2]

http://www.straitstimes.com/archive/...oughs-20130322

Ho Bee leases out luxury units to ride out property troughs

Published on Mar 22, 2013

By Cheryl Lim


THE lacklustre market for high-end homes has prompted developer Ho Bee Group to lease out units at its completed projects.

Ho Bee has developed several pricey projects in Sentosa Cove, including Seascape and Turquoise, but sales have been hit by several rounds of cooling measures and a slowing economy.

The firm has responded by leasing out apartments, with 70 per cent of its unsold units in Sentosa already tenanted.

Ho Bee chairman Chua Thian Poh told The Straits Times: "We hope by the time the market (is all right again), we can put the apartments on the market for sale again. Especially for Sentosa, land is in limited supply. When the market (picks up), the demand for homes will definitely be there."

He noted that the firm's focus has been on growing its recurring income stream while looking to lessen its dependence on any one particular market by investing in overseas projects.

Ho Bee has developments in China and Australia, and is eyeing London again.

Mr Chua said the firm made good revenue and profit from investing in London developments during the Asian financial crisis.

He was speaking on the sidelines of the topping-out ceremony for Ho Bee's commercial project The Metropolis in Buona Vista yesterday.

The two-tower Grade A office project, which also has a retail component, has a net lettable area of about 1.1 million sq ft.

The firm said about 60 per cent has been pre-committed at rates averaging $6 per sq ft for offices and between $8 and $15 psf for retail. Key tenants include Procter & Gamble, Shell, Neptune Orient Lines and the Singapore Exchange.

Mr Chua said he expects The Metropolis to hit full occupancy by the end of this year.

He added: "We don't rule out (the possibility of putting our commercial properties into a real estate investment trust). When the project hits full occupancy, we will look out for all possible opportunities at that point."

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[reporter2]

http://www.businesstimes.com.sg/arch...polis-20130322

Published March 22, 2013

Ho Bee pins hopes on Metropolis

The group expects it to pull in $80m in annual rental income by 2015

By nathaniel chew


HAVING undergone its topping out ceremony, The Metropolis, Ho Bee Investment's one-north office development, is just months away from completion.

The 1.1 million sq ft, Grade A-specification building is expected to receive a Temporary Occupation Permit for its first tower in July, and for its second tower in September, just 21/2 years after development began.

Despite rising construction costs and new government regulations on foreign workers restricting labour, The Metropolis is set to be completed ahead of schedule. Ho Bee chairman Chua Thian Poh attributed this to main contractor Lum Chang's good work on the project.

Construction is not the only area in which The Metropolis has a head start. To date, the development has a 60 per cent tenant pre-commitment rate for its total lettable area.

Mr Chua said The Metropolis was also the most successful development this year in attracting blue- chip tenants.

According to data collated by CBRE, four out of five of the largest office lease commitments in the past six months were secured by The Metropolis. These were from Procter & Gamble, Shell, Neptune Orient Lines, and Singapore Exchange.

Ho Bee has also successfully engaged gym operator Fitness First, as well as F&B outlets including Starbucks, Simply Bread, and Peach Garden, to take up tenancy in The Metropolis. The Ho Bee group is shifting its own headquarters to the new building as well.

Marcus Loo, executive director of office services at Colliers International, was not surprised by the high pre-commitment rate for The Metropolis, even with its location outside the CBD. "The Singapore office supply for buildings in the CBD are few and far between," he said.

While the lettable office and retail space has not yet been filled, Ho Bee expects to have full occupancy by next year.

One factor working in the group's favour is the building's low development cost of $800 million. Ho Bee can thus afford to offer cheaper rental rates than those for CBD office spaces.

Ho Bee stated an average price of $6-7 psf for office leases and $8-15 psf for retail. Furthermore, the burgeoning one-north district is now even more viable for commercial operations, Mr Chua said.

Discussing Ho Bee's strategy, Mr Chua said the group is focused on investments that generate steady recurring income, something he hopes The Metropolis will provide.

"I think it will be one of our major income sources and will underpin Ho Bee's next phase of growth," he said. Ho Bee expects The Metropolis to pull in around $80 million in annual rental income by 2015.

[bargain hunter]

well done ho bee, pushing GROSS rental yields to 1.8% for 3 bedders and 1.6% for 4 bedders based on the CHEAPEST unit sold in the last 2 years.

http://www.straitstimes.com/archive/...oughs-20130322

Ho Bee leases out luxury units to ride out property troughs

Published on Mar 22, 2013

By Cheryl Lim


THE lacklustre market for high-end homes has prompted developer Ho Bee Group to lease out units at its completed projects.

Ho Bee has developed several pricey projects in Sentosa Cove, including Seascape and Turquoise, but sales have been hit by several rounds of cooling measures and a slowing economy.

The firm has responded by leasing out apartments, with 70 per cent of its unsold units in Sentosa already tenanted.

Ho Bee chairman Chua Thian Poh told The Straits Times: "We hope by the time the market (is all right again), we can put the apartments on the market for sale again. Especially for Sentosa, land is in limited supply. When the market (picks up), the demand for homes will definitely be there."

He noted that the firm's focus has been on growing its recurring income stream while looking to lessen its dependence on any one particular market by investing in overseas projects.

Ho Bee has developments in China and Australia, and is eyeing London again.

Mr Chua said the firm made good revenue and profit from investing in London developments during the Asian financial crisis.

He was speaking on the sidelines of the topping-out ceremony for Ho Bee's commercial project The Metropolis in Buona Vista yesterday.

The two-tower Grade A office project, which also has a retail component, has a net lettable area of about 1.1 million sq ft.

The firm said about 60 per cent has been pre-committed at rates averaging $6 per sq ft for offices and between $8 and $15 psf for retail. Key tenants include Procter & Gamble, Shell, Neptune Orient Lines and the Singapore Exchange.

Mr Chua said he expects The Metropolis to hit full occupancy by the end of this year.

He added: "We don't rule out (the possibility of putting our commercial properties into a real estate investment trust). When the project hits full occupancy, we will look out for all possible opportunities at that point."

[email protected]