WEEK OF DECEMBER 29, 2008 Residential outlook still bleak Funds and investors in search of opportunities Looking for daylight next year More sales activity expected in 2H2009 for offi ce sector Beach Road MAKEOVER Even though construction of major projects here may have been deferred or cancelled, the refurbishment of older, Aerial view of Beach Road with smaller buildings by new owners is still very much alive Raffles Hotel at No 1 Beach Road on the left and the South Beach site on the right THEEDGE SINGAPORE | DECEMBER 29, 2008 • CC3 CITY&COUNTRY Beach Road makeover Even though construction of the crown jewel of the area, the $2.5 billion South Beach project, may be deferred, and the tender for the Ophir-Rochor white site cancelled, the refurbishment of older, smaller buildings in the hands of new owners is still very much alive | BY CECILIA CHOW | if triggered by an offer by a developer with a minimum bid that meets the each Road, with its medley URA’s reserve price for the site. of shophouses, mixed-use In November, CDL also announced commercial developments that the consortium was deferring the and high-rise office towers, construction of the $2.5 billion South was earmarked last year by Beach project to 2H2009 in anticipa- Bthe authorities as “the next develop- tion of lower construction costs. EDGE SINGAPORE CHUA/THE SAMUEL ISAAC ment hot spot”. The authorities have gone ahead While Marina Bay and the existing to gazette Master Plan 2008, which CBD will continue to be key commer- puts into effect the government’s cial centres in Singapore to meet the plan for land use over the next 10 to demand for space coming from the fi- 15 years. The government is sticking nancial, business services and tourism to the four key thrusts outlined in sectors, the Beach Road/Ophir-Rochor the plan: “to enhance Singapore as a corridor “will be developed as strate- home of choice, a magnet for business, gic gateways to the city centre”, ac- an exciting playground and a home cording to the URA Master Plan 2008. to cherish”, according to URA in the The plans call for the doubling in size Dec 5 announcement. The “magnet of Singapore’s financial district to that for business” is where Ophir Road- of Hong Kong’s with a total of 30.35 Beach Road is positioned, and the gov- million sq ft office space. ernment plans to release more devel- In line with its development plans opment land parcels in the area over for the area, the government also pro- the next five to 10 years. moted a 2.67 ha white site located on The mega development projects Ophir Road-Beach Road and adjacent may have been shelved for now, but to Parkview Square at an international there are still pockets of redevelop- property road show in Cannes early ment or refurbishment of older build- this year. The white site has the po- ings taking place on Beach Road. For tential to be developed into a mixed- instance one of the most significant use project with commercial space of launches this year was that of Con- 1.5 million sq ft in gross floor area and course Skyline in September, devel- a 480-room hotel. Pegged at a price oped by the family-owned, Singapore- tag of $1.4 billion back in March, it listed Hong Fok Corp. was regarded then by property ana- Construction of the 360-unit Con- lysts as the most desirable on the gov- course Skyline residential high-rise ernment’s list of confirmed sites for towers has started and consists of re- sale this year. developing the Concourse retail po- The white site (the green field in front of Parkview Square) on Ophir Road-Beach Road has been moved from the confirmed list The enthusiasm was not unfound- dium and serviced apartments. The to the reserved list ed as the consortium of City Devel- developer also paid the government opments Ltd (CDL), Dubai World’s $83 million to get a new 99-year lease The Gateway by I.M. Pei, James Ad- rey office building at 67 Beach Road improves. “Ideally, it should be refur- Istithmar World, and Elad Group bid on the site. ams for Parkview Square, and Nor- from NTUC Income for $21.5 mil- bished in line with the plan to spruce for, and won, another site along Beach The soft launch may have been man Foster for the upcoming South lion. Previously called NTUC Income up this area,” admits Jones Lang La- Road in September 2007 for $1.69 bil- ill-timed — just the week before the Beach project. Beach Junction, the building is locat- Salle’s Archibold. lion. The new mixed development on collapse of Lehman Brothers on the “Most of the new developments ed across the street from Shaw Tow- the 376,737 sq ft site, which includes weekend of Sept 13/14 – however, along Beach Road are by very estab- ers and the upcoming South Beach Government picks up slack the conservation of the former Non- Hong Fok still sold 60 units out of 90 lished and in many cases [boast] fa- project. Bulkhaul is said to be plan- Private sector development projects Commissioned Officers’ Club and three released in the first phase that week, mous architects,” acknowledges Jones ning a facelift and refurbishment of may have taken a backseat, but the army barracks built in the 1930s, is with prices ranging from $1,500 to Lang LaSalle’s Archibold. “The area the building to be in keeping with government is picking up the slack designed by renowned architect Nor- $1,800 psf. will be rejuvenated significantly with the government’s plans to rejuvenate and going ahead with its plan to in- man Foster. Philip Cox, the appointed design the new buildings being planned in Beach Road, and the Ophir Road-Ro- vest a total of $6.7 billion in three “I see [Beach Road] as a definite architect of Concourse Skyline, joins the area.” chor Corridor. stages for the construction of the Cir- CBD extension but not necessarily the growing list of luminary archi- Another building that’s ripe for re- cle Line MRT project. That will make like Harbourfront,” observes Chris tects who’ve developed projects along Investor interest development is the Golden Mile Com- the whole Beach Road corridor more Archibold, regional director and head Beach Road — Paul Rudolph for the A couple of older commercial build- plex, which commands a prominent accessible, and extend the connectiv- of markets at Jones Lang LaSalle. “It original Concourse development, ings changed hands earlier this year frontage along Beach Road and the ity of Beach Road towards the East will have more of an entertainment and are now at various stages of re- Nicoll Highway. Built at a cost of $18 Coast and HarbourFront, says Archi- feel with the retail portion of CDL’s furbishment and repositioning, a sign million in 1973, it was pronounced “a bold. The three stages of the Circle Beach Road development and the il- of investor interest in the area. One vertical slum”, “terrible eyesore” and Line will have 29 MRT stations in a uma, an urban entertainment centre of them is KeyPoint, a 25-storey of- “national disgrace” by Nominated 33.3km stretch. Some of the stations currently under construction on Victo- fice building with two retail/F&B po- Member of Parliament Ivan Png two will be in the vicinity of Beach Road, ria Street. We may well also see more dium levels. It was acquired by the years ago. Various attempts by owners including Nicoll Highway MRT, and F&B outlets springing up in the shop- former Allco Commercial REIT (now to put the development up for collec- Promenade Circle Line MRT. houses to service the new apartments GWYNETH YEO/THE EDGE SINGAPORE Frasers Commercial Trust) in Decem- tive sale failed due to complications, In addition to boosting infrastruc- and offices.” ber last year for $370 million, in an the main one being the 705 strata-ti- ture and accessibility, the government attempt to improve its tenant mix and tles in a mixed use development with is also keen on preserving Beach Road’s Global financial crisis clouds hence, rentals. residential, retail and offices, each en- eclectic charm. The road is surround- development plans Early this year, real estate equity titled to its own share of votes. The ed by the cultural, arts and education By October, as the global financial fund, Fine Grain Property, purchased new and more cumbersome en bloc hub in Bras Basah Road combined crisis continued to ravage markets, the former InCity Lofts for $70 mil- regulations introduced on Oct 4 last with the urban entertainment district and Singapore fell into recession, it lion. It is close to completing the re- year made things worse. of Bugis; the hodgepodge of F&B and was clear that something had to be furbishment of the eight-storey build- With the fallout of the global fi- retail businesses in the conservation done. On Oct 31, the URA cancelled Archibold: Most of the new develop- ing into a designer boutique office nancial crisis, weakening property shophouses in the Kampong Glam the tender for the Ophir Road-Beach ments along Beach Road are by very project called “700 Beach”, and is al- market and high construction costs, district; the upcoming Sports Hub Road white site, and along with the established and in many cases famous ready 75% leased. developers’ appetite for such collec- and Kallang waterfront district; and other sites on the confirmed list, was architects.