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Visit EdgeProp.sg to ˎ nd properties, research market trends and read the latest news The week of May 7, 2018 | ISSUE 829-50

Market News Offshore Gains and Losses Done Deals Highest quarterly gain in Thailand’s Sansiri charts Ridgewood Condominium West Coast condos see eight years for 1Q2018 course for future unit sold for $1.69 mil rise in interest private-home prices EP3 EP10 proﬁ t EP13 EP14

YTL HOTELS & RESORTS YTL’s long-term view pays off With businesses ranging from luxury resorts to bespoke residences, the Malaysia-listed property giant controlled by the Yeoh family has the ability to ride through the storms. Mark Yeoh, executive director of YTL Hotels, tells EdgeProp why. See our Cover Story on Pages 8 ,9 and 12.

Pangkor Laut, YTL Hotels & Resorts’ flagship luxury resort EP2 • EDGEPROP | MAY 7, 2018 PROPERTY BRIEFS

JLL SINGAPORE REALTORS CUSHMAN & WAKEFIELD EDITORIAL EDITOR | Cecilia Chow DEPUTY EDITOR | Lin Zhiqin WRITERS | Timothy Tay, Bong Xin Ying, Charlene Chin DIGITAL WRITER | Fiona Ho

ADVERTISING + MARKETING ADVERTISING SALES DIRECTOR, COMMERCIAL OPERATIONS | Cowie Tan Margate Point launched for of Fine Arts and LaSalle College of the Arts raises In the first phase, PSD will focus on Asian proper- ASSOCIATE ACCOUNT DIRECTOR | Diana Lim en bloc sale at $38 mil demand for serviced apartments in the area, says ties in popular tourist destinations. The list includes SENIOR ACCOUNT MANAGER | Margate Point (above, left), a 12,800 sq ft, 15-unit Terence Lian, head of investment sales at Huttons Kuala Lumpur, Bangkok, Jakarta, Bali, Phuket, To- Janice Zhu apartment development on Margate Road, has been Asia. kyo and Hong Kong. In the second phase, PSD will ACCOUNT MANAGERS | launched for its first collective sale with an asking price The site is close to the Bras Basah-Bugis hub and evaluate hospitality properties in Europe, the Middle James Chua, Bernard Wong SALES STRATEGIST | of $38 million, according to sole marketing agent JLL. is an eight-minute walk from the Jalan Besar MRT East and the US. Han YaoGuang Owners representing 14 of the 15 units have already station. It is also just a five-minute drive to the CBD. inked their consent. There is a high chance of get- The public tender will close on June 5. Retail space for sale at The Rise @ Oxley CIRCULATION ting 100% consent, notes Karamjit Singh, senior con- Oxley has launched its prime retail space on Levels 1 DIRECTOR | Dominic Kevin Sim MANAGER | Bryan Kek sultant at JLL. Holland Tower up for collective sale at $65 mil and 2 of The Rise @ Oxley (above, right) for sale, at an EXECUTIVE | With full consent, the owners can bypass the Stra- Freehold Holland Tower (above, centre) has been asking price of $75 million ($4,557 psf). The freehold Malliga Muthusamy, Ashikin Kader ta Titles Board application process and work towards launched for collective sale at a reserve price of $65 commercial space sits in a mixed-use development CORPORATE legal completion taking place within three months million ($1,489 psf ppr), says sole marketing agent near the Orchard Road shopping belt in District 9. CHIEF EXECUTIVE OFFICER | of contract. Singapore Realtors Inc. The retail space comprises 29 shops, with 11 dedi- Bernard Tong Located off Meyer Road and Mountbatten Road, Under URA’s 2014 Masterplan, the site is zoned cated restaurant units on the first floor and 16 retail PUBLISHER Margate Point is zoned “residential” with an allowa- “residential”. The potential developer could rebuild units and two restaurants on the second floor. The The Edge Property Pte Ltd ble gross plot ratio (GPR) of 2.1 under the 2014 Mas- the development to its original intensity, subject to retail units could also be rented out for alternative 150 Cecil Street #13-00 ter Plan. The site may be redeveloped into a maxi- the authorities’ approval. The 21,871 sq ft site is in a uses, subject to approval. Singapore 069543 Tel: (65) 6232 8688 mum of 35 apartments with an average size of 70 sq district zoned for Good Class Bungalows. According to URA’s 2014 Master Plan, the site is zoned Fax: (65) 6232 8620 m each, subject to design and approval from the rel- Located at 10 Holland Heights in District 10, the “commercial and residential” with a plot ratio of 4.2. evant authorities. development is a three-minute drive to the Holland The potential owner will hold 16,459 sq ft out of a PRINTER Also subject to confirmation on the property’s Village MRT station. total of 97,408 sq ft, and have full control of the ten- KHL Printing Co Pte Ltd 57 Loyang Drive development baseline, Margate Point’s reserve price There have been six successful collective sales ancy mix. There will be no additional buyer’s stamp Singapore 508968 translates into a land rate of $1,417 psf per plot ra- in District 10 so far this year: Olina Lodge at $1,712 duty charged. Foreigners are also eligible to pur- Tel: (65) 6543 2222 tio (ppr), excluding the bonus gross floor area (GFA) psf ppr; Tulip Garden at $1,790 psf ppr; Hollandia chase the site. Fax: (65) 6545 3333 for balconies. at $1,703 psf ppr; Toho Mansion at $1,805 psf ppr; The retail units are expected to receive footfall PERMISSION AND According to JLL, the current apartment size of City Towers at $1,847 psf ppr; and The Wilshire at from residents staying at The Rise @ Oxley Resi- REPRINTS 1,280 sq ft makes it rentable. The development can $1,600 psf ppr. dences and visitors from neighbouring offices and Material in The Edge Property also be held as a long-term investment by institu- The tender for the collective sale will close on schools. It is within a 10-minute walk of the Dhoby may not be reproduced in any form without the written tional investors to hedge against rising property pric- May 30. Ghaut and Somerset MRT stations. The Rise @ Oxley permission of the publisher es in the area. Residences has a total of 120 freehold apartments, all The collective sale tender will close on June 6. SPH REIT buys The Rail Mall for $63.2 mil fully sold, according to Cushman & Wakefield, the We welcome your comments SPH REIT has entered into an agreement to purchase marketing agent for the retail site. The expression of and criticism: propertyeditor.sg@ Lakeside Towers going for $305 mil The Rail Mall for $63.24 million, with funding from interest will close on May 24. bizedge.com The 14,236 sq m (153,237 sq ft) Lakeside Towers has debt and internal resources. been launched for sale by public tender. Owners are SPH REIT will be acquiring the property from Pu- Bvlgari to operate first hotel Pseudonyms are allowed but please state your full name, expecting a price of $305 million, according to mar- lau Properties, owned by Lee Foundation and the in Japan from 2022 address and contact number for keting agent Huttons Asia. Lee family. Hotel operator Bvlgari will be opening its first hotel us to verify. The site is zoned “residential” with an allowable The Rail Mall is a 99-year leasehold commercial in Tokyo at end-2022, in partnership with Japanese GPR of 2.1. It can yield a GFA of 321,797 sq ft upon estate in District 23, comprising 43 single-storey shop real estate company Mitsui Fudosan. redevelopment. Developers could choose to build units, 95 private car-park lots and 360m of main road Bvlgari Hotel Tokyo will be fully integrated into between 250 units and 350 units, with average sizes frontage on Upper Bukit Timah Road. The commer- a mixed-use development at Tokyo Station, in one ranging from 860 to 1,200 sq ft. cial strip is a three-minute walk from the Hillview of Japan’s busiest business districts. The hotel The estimated differential premium and lease up- MRT station. It has a total net lettable area of about will offer 98 guest rooms, occupying the top sev- grading premium payments of $57 million to intensify 50,000 sq ft. The property lease started on March 18, en floors (Levels 39 to 45) of a skyscraper planned land use and for topping up to a fresh 99-year lease 1947, with 28 years remaining. for construction in the Yaesu 2-Chome North Dis- translates into a land rate of $1,125 psf ppr. Edmund Tie & Co, an independent valuer, valued trict. This building is part of the redevelopment The development overlooks the 90ha Jurong Lake the retail strip at $62.9 million. project approved by the Tokyo Metropolitan gov- Gardens. Strategically located in the Jurong Lake Dis- ernment in January. trict, it is a high-growth area, notes Angela Lim, deputy Reidao and Pacific Star in holiday From Tokyo Station, visitors have easy access to head of investment sales at Huttons Asia. properties tie-up art galleries, museums and the Tokyo Imperial Palace. The public tender will close on May 28. Blockchain start-up Reidao has partnered Singapore- “In line with the Japanese government’s efforts listed Pacific Star Development (PSD) to ride the lat- to improve Tokyo’s competitiveness and position it Jalan Besar Plaza relaunched ter’s expertise to evaluate holiday properties that are as a global city, we have seen an increasing number for sale at $380 mil worthwhile to rent or purchase. of large-scale redevelopments [including luxury ho- The 4,927.8 sq m (53,043 sq ft) freehold mixed-use Reidao will build its portfolio of holiday assets tels],” says Tomohiko Sawayanagi, international di- site Jalan Besar Plaza has been relaunched for sale on Crowdvilla, a non-profit platform under the start- rector and head of JLL Hotels & Hospitality Group in via public tender. Owners are expecting a price of up that allows users to share ownership of proper- Japan. JLL advised on the contract negotiation pro- $380 million. According to marketing agent Huttons ties in major tourist destinations by paying for them cess on behalf of Mitsui Fudosan. Asia, this figure translates into a land rate of $2,115 in Ethereum. According to JLL, Tokyo saw a y-o-y increase of psf ppr for 40% commercial use and 60% residen- PSD’s collaboration with Crowdvilla is subject, 15.1% in the number of international hotel guests to tial use, based on the approved GFA of 16,694 sq m. however, to the latter’s ability to raise US$50 million 9.2 million, while demand for domestic accommo- The site is zoned “commercial and residential”. The ($66.6 million) through crowdsourcing. dation rose 2.8% y-o-y to 17.3 million. Sawayanagi existing approved GFA of 16,694 sq m can be retained If successful, PSD will help Crowdvilla source for expects Tokyo’s strong growth in visitor arrivals to or redeveloped into a mixture of uses, including F&B, and evaluate hospitality properties, with the aim of continue this year. retail, educational, residential and serviced apart- building up a substantial global property portfolio. Bvlgari Hotel Tokyo will be designed by Italian ar- ments, all without incurring a development charge. The holiday properties targeted by Crowdvilla lie in chitecture firm Antonio Citterio Patricia Viel, which The concentration of students from the Singa- the price range of US$100 to US$200 a night, factor- designs all Bvlgari Hotels and Resorts. — Compiled pore Management University, the Nanyang Academy ing in location, size and ratings by prior users. by Charlene Chin and Bong Xin Ying E EDGEPROP | MAY 7, 2018 • EP3 MARKET NEWS 1Q2018 sees highest quarterly price gain in eight years

JAMES CHUA | BY TIMOTHY TAY | With more new launches entering the market at “optimistic pric- he first quarter of 2018 saw es”, Ong reckons the private prop- private-home prices increase erty price index will continue to rise 3.9% q-o-q, higher than the “3% to 5% a quarter”. 3.1% in the URA flash esti- On the weekend of April 28 and mate announced at the start 29, UOL Group previewed Amber 45, Tof the month. “It is rare to see such a its freehold condo on Amber Road in wide variance between the actual and prime District 15. More than 3,000 flash numbers,” says Tricia Song, Col- people turned up for the preview. liers International head of research for The 139-unit project has a mix of Singapore. “That said, this is not sur- two- to four-bedroom units ranging prising, given that home buying activi- from 614 to 1,798 sq ft. The project ty was brisk towards the end of March is expected be priced between $2,200 and units sold were generally pricier.” and $2,400 psf when sales begin on The biggest growth in non-land- May 12 and 13. ed private residential prices was in There is a potential supply of the prime districts, or Core Central 20,100 units to be launched this Region (CCR), which rose 5.5% year — with 6,900 units from Gov- q-o-q, and in the suburbs, or Out- ernment Land Sales sites and 13,200 side Central Region (OCR), which units from en bloc sites. And these saw a 5.6% price appreciation over are expected to be completed by the quarter. The city fringe, or Rest More than 3,000 people visited the sales gallery of Amber 45 on the weekend of April 28 and 29 2021 or later, notes Desmond Sim, of Central Region (RCR), registered CBRE executive director of research only a 1.2% price increase over the from 7.8% at end-4Q2017. With sup- juncture is unlikely,” adds Li. Based Waterbay ($1,365 psf), says Ong Teck for Singapore and Southeast Asia. three-month period. ply easing, occupancy rates could on data from the Department of Sta- Hui, JLL national director of research “However, the supply from en bloc The 3.9% increase is also the high- improve and Colliers expects rents tistics, median income rose 66% and consultancy. sites will be subject to various ap- est quarterly growth since the 5.3% to recover by 2% in 2018. between 2007 and 2017, whereas In late March, the launch and take- provals,” he adds. appreciation in 2Q2010, according to Displaced homeowners and tenants URA’s private property price index up of The Tapestry at higher prices Sim maintains that new-home Christine Li, Cushman & Wakefield from the spate of collective sales rose only 6% in the period. Thus, (median of $1,408 psf) — compared sales will continue to be driven by senior director of research. could underpin rental demand in housing demand was supported by with its surrounding projects — may total price quantum. In the first quar- Private residential prices at end- the coming months, adds Cushman both strong liquidity and a low in- also have contributed to the spike in ter, 80% of total transactions were 1Q2018 were 5.5% above the trough in & Wakefield’s Li. The housing supply terest rate environment. the final 1Q2018 price index com- of units below $2 million, while 2Q2017, but still 6.8% below the peak pipeline is expected to remain low New projects in OCR with high pared with the flash estimate of 3.8% 83.6% of developer sales were be- in 3Q2013, points out Colliers’ Song. between this year and 2021, with the transaction volumes and where de- growth in OCR, notes Colliers’ Song. low $2 million, he points out. He Meanwhile, rents of private homes majority of new supply from the re- velopers were able to raise the pric- New projects in the prime districts therefore expects the number of new rose 0.3% q-o-q in 1Q2018 — mark- development of collective sale sites es of remaining units in 1Q2018 in- that contributed to a 5.5% rise in CCR residential units to shrink to keep ing the first uptick since 3Q2013, adds and new projects on government clude Grandeur Park Residences prices in the flash estimates includ- the total quantum affordable even Song. The vacancy rate of completed land sites to be completed in 2022 (median price of $1,525 psf), Parc ed 8 Hullet (median price of $3,490 as the URA residential price index is private residential units (excluding and beyond, she estimates. Botannia ($1,283 psf), Seaside Res- psf) and Martin Modern ($2,772 psf), expected to pick up pace and grow executive condos) dropped to 7.4%, “Government intervention at this idences ($1,684 psf) and Kingsford up 6.5% from February, says Ong. 7% to 9% this year. E

MARKET TRENDS

The cost of buying a home near the train is shrinking

BLOOMBERG | BY KATHERINE CHIGLINSKY | Take San Francisco, for exam- freed for redevelopment, Ruggiero ple. Apartments within a five-min- notes. he premium that a condomin- ute walk of a public-transit stop All these changes would make it ium near the train has long have tended to earn a premium more attractive to develop real es- Tcommanded is under threat. of about 20%, according to the tate in areas that offer easy access Ride-sharing services, such report, which considered other to less congested roads but that as Uber Technologies and Lyft, possible causes of the premium. might not be close to public trans- and the advent of electric vehi- The premium began to decline port, according to the report. Peo- cles and driverless cars are poised just about two years after Uber ple might consider migrating to to chip away at the higher prices started operating and is already the suburbs if the commute be- that real estate around subways down to almost 15%, MetLife’s comes easier, Ruggiero says. and bus stops has earned, accord- real-estate research and strategy The changes are expected to ing to a report from MetLife’s as- team reports. Properties near the occur gradually, MetLife cautions. set-management business released mass transit will still typically fetch Some areas, including New York, on May 1. higher prices, but not as high as might not be prepared with the “People are already willing to before, Ruggiero says. infrastructure for many more cars pay slightly less than they were Ride-sharing services are gene- driving at rush hour if people are before for the same level of tran- rally more expensive than public calling Uber and Lyft but not using sit access, because they now have transport, but that might change them for carpools. To get them to this complementary transit sys- with the introduction of autono- share rides, governments would tem,” Adam Ruggiero, head of mous vehicles, according to the need to consider options such as real estate research at MetLife In- report. With cars going right back increased tolls or a separate lane vestment Management, says in a on the road after dropping their for carpools, according to the re- phone interview. passengers, parking lots could be port. — Bloomberg LP E Properties near the mass transit will still typically fetch higher prices, but not as high as before EP4 • EDGEPROP | MAY 7, 2018 MARKET NEWS

Retail reinventing itself as rents recover

SAMUEL ISAAC CHUA/THE EDGE SINGAPORE | BY TIMOTHY TAY | pedestrian crossing, as well as various directives under the ‘Orchard RA’s retail rental index for the Road Blueprint’ initiative, are likely Central Region has posted its to lend further support to the recov- first increase after 12 consec- ery sentiment,” she says. utive quarters of decline, says However, the improving sales cli- Desmond Sim, CBRE head mate may not translate into substan- Uof research for Singapore and South- tially improved profit margins in the east Asia. The index rose 0.1% q-o-q. short term, cautions Song, owing to “While this growth is deemed to be stiffer competition with multiple stores minor, it is an indication that the re- peddling similar wares. This is likely tail market is showing signs of bot- to cap any upside in retailer margins. toming out and achieving stability,” Hence, Orchard Road prime rents are he says. The Fringe area also recorded unlikely to stage a dramatic rally de- an increase of 0.3% q-o-q in 1Q2018. spite the boost in overall retail sales Islandwide, the vacancy rate for and tourism arrival figures, she says. retail space edged up 0.1ppt q-o-q to “We expect the overall retail prop- 7.5%, notes Tricia Song, Colliers In- erty market to stabilise over 2018 and ternational head of research for Singa- 2019. Prime retail rents in the Orchard pore. She attributes the “tight changes” precinct should lead the recovery, ris- to some market consolidation taking ing 1% to 3% y-o-y in 2018.” place in the retail sector, and expects the market to bottom sometime this Suburban malls with strong Rents in Orchard Road are likely to be better supported, as the malls in Singapore’s famed shopping belt will be ‘a primary benefi- year as landlords and retailers adapt catchment areas ciary’ of the surge in tourist arrivals over the short term to the new retail landscape. In the regional centres, Song expects “Retail sales shifted back into “select shopping malls”, particularly to reopen in 2H2018. It is more than of its effort to “marry the offline and tre to host up to 1,000 workspaces. positive territory in 2017 after three those in the suburbs with significant 85% pre-committed, with spaces tak- online shopping experience”, says Li. “Potential synergies can be real- consecutive years of sales decline, catchment areas, to continue to out- en up by Hai Di Lao, Mahota Market, Fashion and lifestyle retailer FJ ised, as landlords can drive occu- albeit from a low base,” adds Song. perform its peers. Totts, The Food Market, Gymmboxx, Benjamin is setting up an advisory pancy and footfall while co-working “This is underpinned by a recover- Christine Li, senior director of Filmgarde and Learning Lab, says Li. board to help integrate its physical members can showcase their products ing consumer climate and surge in research at Cushman & Wakefield Even so, the retail scene contin- stores and online sales channels to and run pilot projects in the mall to Chinese visitor arrivals.” agrees. She sees retailers still keen ues to see casualties, with the likes of pursue an omni-channel strategy. gain potential clients via heightened on taking up space at suburban malls Banana Republic, Gap and American “Landlords are also becoming more brand awareness,” says Li. “Retailers Orchard Road malls benefit with strong catchment areas such as Eagle Outfitters closing their stores, receptive towards having co-working can also enjoy first-hand access to from rise in tourism the mall at Paya Lebar Quarter and she observes. operators in the malls to curate ex- the latest retail innovations.” Rents in the Orchard Road area are Century Square at Tampines near the perience as a community hub,” says Retailers are also reinventing them- likely to be better supported, as the MRT station. The mall at Paya Lebar New partnerships, co-working Li. WeWork is leasing 40,000 sq ft in selves. Beyond omni-channel mar- malls in Singapore’s famed shopping Quarter reported 50% pre-commit- in malls the upcoming Funan, part of which is keting, retailers can also make use belt will be “a primary beneficiary” of ment by tenants such as Shaw The- Landlords and retailers are adapting situated in the retail portion. Spaces, of mall space to create experiences the surge in tourist arrivals over the atres, Fairprice Finest supermarket to stay at the forefront of the retail a co-working concept by IWG, will for shoppers to increase brand aware- short term, reckons Song. “The URA and Kopitiam food court. scene. CapitaLand Mall Trust has part- occupy more than 35,000 sq ft at One ness and appeal to people’s lifestyles and [Singapore Tourism Board’s] joint In Tampines Central, Century nered with e-commerce player Lazada Raffles Place shopping mall. Mean- with their product concepts, says efforts in rejuvenating the shopping Square is undergoing a $60 million to introduce click-and-collect loung- while, JustCo is taking up 60,000 sq Lee Nai Jia, head of research at Ed- belt with a Shibuya-style scrambled asset enhancement and is expected es in seven of CMT’s malls. It is part ft at Marina Square shopping cen- mund Tie & Co. E

Grade-A office rents to rise more than 10% this year

FRASERS PROPERTY | BY TIMOTHY TAY | bringing the cumulative rental uptick to 14.3% since the trough in 2Q2017. This is nearly dou- RA’s office rental index for the Central Re- ble the 7.7% growth for the office market is- gion rose for the third consecutive quar- landwide, notes Colliers’ White. Uter, grewing 2.6% q-o-q in 1Q2018, the The office price index in the Central Re- same pace as in the previous quarter. This region likewise increased for the third consec- flects a 7.7% rental recovery in less than a year utive quarter, but at a more gradual rate of since the market bottomed in mid-2017, says 1.3% q-o-q compared with 2.7% growth in Duncan White, Colliers International head of the preceding quarter, notes Colliers. office services. JLL is optimistic that Grade-A office rents, Renewed strength among businesses, espe- which were at $9.51 psf per month as of 1Q2018, cially the services sector, coupled with a lim- could rise by more than 10% to hit the high ited stock of upcoming new CBD supply from of $10.56 psf per month recorded in 1Q2015 2018 to 2020 likely drove brisk rental recov- “within the next 12 months”. ery, says White. With the prospect of rising rents in the CBD, Upcoming stock expected later this year in- cost-conscious companies that do not need a cludes Frasers Tower and 18 Robinson, which downtown address have started looking at de- will contribute 823,000 sq ft of net lettable centralised locations. As such, pre-leasing at area (NLA), says Christine Li, senior director Paya Lebar Quarter rose to 50%, with SMRT of research at Cushman & Wakefield. The re- relocating its headquarters there and taking up development of Park Mall and Funan will re- Close to 70% of the net lettable area in Frasers Tower (the ‘green oasis’ pictured) is already pre-committed 100,000 sq ft, says Cushman & Wakefield’s Li. sult in 557,000 sq ft of NLA entering the mar- “Singapore’s upbeat leasing market continues ket in 2019. ahead of its completion in 2021, points out Tay next large wave of supply totalling 1.9 million to draw the interest of global investors,” says Close to 70% of the NLA in Frasers Tower Huey Ying, JLL head of research and consul- sq ft will only enter the market in 2021, name- JLL’s Tay. “Supported by ample liquidity, URA’s and 18 Robinson are already pre-committed. tancy for Singapore. ly the new development at the Central Boule- office price indices for Central Region, which Even CapitaSpring, the redevelopment of the Supply will remain stable in 2020 with vard government land site and CapitaSpring. had recorded three straight quarters of growth, former Golden Shoe Car Park, has already se- 644,000 sq ft from the redevelopments of CPF Average rents of CBD premium buildings are also similarly expected to stay on the ex- cured JP Morgan as anchor tenant three years Building and Afro Asia Building, she adds. The recorded a 4.8% q-o-q increase in 1Q2018, pansionary path over the next 12 months.” E EDGEPROP | MAY 7, 2018 • EP5 EP6 • EDGEPROP | MAY 7, 2018 OFFSHORE Chelsea gallery owners get 1,650% return on a former garage

PICTURES: BLOOMBERG | BY KATYA KAZAKINA & new development that will also in- CALEB MELBY | clude custom office space, Ashwin Verma, a managing partner, says in ome big-time Chelsea art deal- a phone interview. Dense zoning in ers are cashing in on the lo- the area allows for five times the cal real estate boom. Andrea building’s footprint, or up to 135ft Rosen and Luhring Augustine in height, Verma says. Gallery sold their shared build- Sing on Manhattan’s West 24th Street High Line to Siras Development for US$28 mil- “The High Line is an area we strongly lion ($37.4 million) in March. That’s believe in,” says Verma, whose firm a 1,650% return on the former ga- built the Soori High Line condomini- rage of about 10,000 sq ft, which um complex on the West 29th Street they bought in 1997 for US$1.6 mil- block that once housed the Peter Blum lion, according to property records. and Sean Kelly galleries. The deal is being financed by a The Kushner Credit Opportunity US$25.5 million loan from a fund ad- Fund, which Kushner Cos uses to ministered by the family company of place investor funds into other de- Jared Kushner, as well as DW Part- velopers’ projects, teamed up with ners, property records show. DW Partners, a New York firm found- The sale is the latest sign of the ed by David Warren that specialises transformation of Chelsea’s art district, in corporate debt and structured fi- which is concentrated west of 10th nance, to back the purchase, prop- Avenue between 19th and 28th streets. erty records show. Christine Taylor, Galleries moved to this then-desolate a spokeswoman for Kushner Cos, stretch two decades ago after being declined to comment on the deal, priced out of Soho, the Manhattan In the early 2000s, Chelsea was transformed into the epicentre of contemporary art in the US, with more than 300 galleries while messages left with DW Part- neighbourhood they had helped gen- calling it home ners were not returned. trify. In the early 2000s, Chelsea was Some gallery owners are man- transformed into the epicentre of con- careers of John Currin and Wolfgang opened an additional space in Bush- on where it will move next. “We are aging to sell and still remain in the temporary art in the US, with more Tillmans, among others, stopped wick, Brooklyn. going to continue our rigorous pro- neighbourhood. In 2013, Lisa Spell- than 300 galleries calling it home. representing most of her artists last “It feels like it’s time to make the gramme no matter where we end up.” man sold the West 21st Street build- year. She is the executor of the es- change,” Augustine says in a telephone Siras Development, which built ing that housed her 303 Gallery for Rising rents tate of Felix Gonzalez-Torres, which interview. The gallery may lease back the 56-room Hotel Americano on 27th about US$8 million to developer Scott More recently, scores of smaller gal- she now co-represents with David the space until the middle of next Street, intends to maintain gallery Resnick. It is now headquartered in leries have been pushed out by rising Zwirner Gallery. Her staff moved to year, he says, declining to comment spaces on the first floor of a planned the condo tower built in its place. rents and real estate developers eager a smaller space across 24th Street David Zwirner, who rents on West to capitalise on the area just south and is focusing on art that is less 19th Street and owns a building on of the Hudson Yards development object-based and more ephemeral, West 20th, became a shareholder in and near the High Line, an elevated she says. a Renzo Piano-designed project de- park built on a former railway line. veloped by Casco Development Corp “It’s not necessary to have a per- Contemporary artist on West 21st. His gallery will occupy manent space in order to do mean- Luhring Augustine Gallery, found- three floors of the mixed-use devel- ingful projects,” Rosen says in an ed in 1985 by co-owners Lawrence opment that will also include 38 lux- interview on April 30. “The world Luhring and Roland Augustine and ury condos and a restaurant. is evolving and there will be lots of known for ambitious multimedia in- The parcel was assembled from models moving forward.” stallations, represents many key con- Zwirner’s West 20th Street property The West 24th Street block has temporary artists, including Christo- with four lots on West 21st owned been a power centre in Chelsea, with pher Wool, Pipilotti Rist and Glenn by Casco, along with additional air such galleries as Gagosian, Gladstone, Ligon. Clients include billionaires rights, according to Stefania Can- Metro Pictures, Matthew Marks, Mary Tom Hill and Eli Broad, as well as ta, a spokeswoman for Renzo Piano Boone and Marianne Boesky. newsprint mogul Peter Brant and Building Workshop. Construction is Rosen, who opened a Soho gal- former hedge-fund manager How- expected to be completed in late 2020, lery in 1990 and helped launch the ard Rachofsky. In 2012, the gallery Simon Hantai’s exhibition at Chelsea’s Paul Kasmin gallery in New York in 2013 she says. — Bloomberg LP E

BLOOMBERG HNA to sell property assets for $608 mil in latest disposal

| BY PRUDENCE HO | to develop a project in Shanghai assets this year, including its stake to a unit of real-estate develop- in Hilton Worldwide Holdings. The NA Group Co plans to sell a er Fusheng Group, according to a disposals may help bring some re- real-estate unit for US$456 mil- filing with the Shenzhen stock ex- lief to HNA, whose interest expens- Hlion ($608 million), in the latest change on May 2. HNA expects to es surged to a level topping that of disposal for the embattled Chinese generate a RMB400 million gain any other non-financial company. conglomerate as it unloads billions from the deal, which is subject to HNA Investment shares have been of dollars of assets to pare one of the shareholders’ approval. suspended since January. Six oth- highest debt loads in China. HNA, which was once one of er HNA units have also been halted HNA Investment Group Co will China’s most acquisitive companies, from trading amid asset restructur- HNA Investment Group Co (headquarters pictured) will sell a subsidiary that has the sell a subsidiary that has the right has sold more than US$13 billion of ing. — Bloomberg LP E right to develop a project in Shanghai to a unit of real-estate developer Fusheng Group EDGEPROP | MAY 7, 2018 • EP7 EP8 • EDGEPROP | MAY 7, 2018 COVER STORY

PICTURES: YTL HOTELS & RESORTS

Pangkor Laut Resort, YTL Hotels’ flagship luxury resort, was opened in 1985

YTL’s long-term view pays off With businesses ranging from luxury resorts to bespoke residences, the Malaysia-listed property giant controlled by the Yeoh family has the ability to ride out the storms. Mark Yeoh, executive director of YTL Hotels, tells EdgeProp why.

PICTURES: SAMUEL ISAAC CHUA/THE EDGE SINGAPORE | BY CECILIA CHOW & ahead to redevelop the prime freehold ly expected selling price of at least ways appreciate and prove to be a CHARLENE CHIN | site at the corner of Orchard Boule- $4,000 psf for 3 Orchard-by-the-Park good investment. You just need to vard and Orchard Spring Lane into is in line with the asking prices of have sustaining power to hold it.” or the past decade, Malay- the 77-unit luxury project, 3 Orchard- other recently launched luxury con- He likens the 3 Orchard-by-the- sia-listed conglomerate YTL by-the-Park. Designed by renowned dos. City Developments’ New Futu- Park buy to the family’s purchase 35 Corp has stayed invested in Italian designer Antonio Citterio ra on Leonie Hill Road, which was years ago of a unit at The Estoril on Singapore, through the tumult (famous for his design of Bvlgari Hotels launched at the start of the year at an Holland Road in prime District 10. of the global financial crisis around the world), the project was average of $3,200 psf, is now fetch- The purchase price for the unit in the Fand eight rounds of property cool- completed last year with units de- ing prices above $3,500 psf. Wing Tai freehold, luxury condo was $800,000 ing measures from September 2009 signed as “villas in the sky”. Holdings’ Le Nouvel Ardmore has to $900,000. “When we bought it in to June 2013 when most foreign in- The show suites at 3 Orchard-by- consistently hit $4,000 psf. Guoco- 1983, everyone laughed at how much vestors fled. the-Park are now being fitted out with Land’s Wallich Residence at Tanjong we paid for it,” says Yeoh, who was If anything, it is a lesson in how Italian brand Armani Casa furniture, Pagar Centre, although 99-year lease- in Singapore recently. tenacity, patience and foresight can which YTL Corp represents in Ma- hold, saw prices top $4,000 psf last Last month, The Estoril was sold pay off when investing in real estate laysia. 3 Orchard-by-the-Park is ex- November. en bloc to Far East Consortium In- — a lesson that still holds true for pected to be launched in 2H2018. Incidentally, YTL was also the de- ternational for $223.94 million. For the group today. Yeoh: At YTL, we don’t believe in diversi- veloper of 13 villas known as Kasara the 40 apartment owners, it means YTL Corp set the benchmark in Prescient timing fying; we believe in intensifying and 18 villas on Sandy Island at Sen- walking away with $4.6 million the last collective sale fever when Mark Yeoh, executive director of YTL tosa Cove. The Yeoh family’s Singa- apiece. The Yeohs would have made it purchased Westwood Apartments Corp and executive director of its sub- al by 2024. One of the 31 MRT sta- pore home is on Sandy Island. more than five times the original en bloc for $435 million in Novem- sidiary YTL Hotels & Resorts, says: tions on the new line — the Orchard purchase price. ber 2007. The purchase price trans- “My board has taken a long-term Boulevard MRT station — will be lo- ‘Sustaining power’ Yeoh is the youngest of seven chil- lated into a land rate of $2,525 psf view on the project.” That stance cated directly across the road from “My father used to say that, when dren. His father, who passed away per plot ratio (ppr) and is still a re- has proven to be prescient. 3 Orchard-by-the-Park. Construction you buy property, you will never go last October at 88, founded the epony- cord for a collective sale site. In 2014, the government announced is currently underway. wrong,” says Yeoh, 52, son of the mous Yeoh Tiong Lay Corp in 1955 Even though the property market plans for the 43km Thomson-East Coast With sentiment in the residential late Malaysian billionaire Yeoh Tiong as a construction company. cratered in recent years, YTL went Line, scheduled to be fully operation- market soaring, YTL Corp’s wide- Lay. “Over the long term, it will al- The business has since expanded EDGEPROP | MAY 7, 2018 • EP9 COVER STORY

SAMUEL ISAAC CHUA/THE EDGE SINGAPORE Hotel. In December, the group announced that it had signed an agreement with Marriott International to add three new hotels in the resort: Ritz Reserve, W and Edition. Yeoh reckons that, at 2.000 acres, YTL Hotels’ landbank in Niseko Vil- lage is one of the biggest in Niseko. YTL has also built eight Kasara branded townhouses in Niseko Village. As hotel occupancy rates at the resort are 95% during the white season, the eight townhouses have become part of the room inventory and have not been marketed for sale yet. The group has started developing a maiden residential block of apart- JW Marriott Kuala Lumpur was purchased during the Asian financial crisis ments in Hinode Hill. It is scheduled for completion by October 2019, in time for the next white season, adds Yeoh.

Brexit opportunities Outside Asia, YTL Hotels saw opportunities in the UK after the Brex- it vote in June 2016. The group acquired three hotels in the UK in September 2016 and two in February 2017. “We’re currently refurbishing them and they will reopen in the summer,” Yeoh says. He remembers the acquisitions of The Academy Hotel, which was one of the three hotels purchased in 2016, and Threadneedles Hotel, one The Sydney Harbour Marriott Hotel was one of three Marriott hotels in Australia of the two acquired in 2017. His col- purchased from Commonwealth Bank of Australia in 2012 league went to see Threadneedles. “He loved it, as it’s just behind the Bank of England and had a great dome,” says Yeoh. “I went to see The Academy. It was a dump, but everything works.” The Academy Hotel had many lit- tle rooms, which the previous opera- 3 Orchard-by-the-Park will be launched in 2H2018 tor said were popular with the ladies from the city who wanted to fresh- en up. “Basically, it was a love hotel, to include a wide range of activities, national branded hotels. It started and YTL doesn’t do that,” he says. from oil and gas to technology, as during the Asian financial crisis, when The Academy Hotel is now being well as property development, hotels YTL Corp purchased the JW Marri- refurbished. “Andrew [Jordan], my and real estate investment trusts. It ott in Kuala Lumpur, along with two [executive vice-president], couldn’t is led by eldest son Francis, who is prime shopping centres in the city — The Ritz-Carlton Koh Samui, which opened last October, is owned by YTL Hotels and understand why I wanted to buy managing director of the group. He Starhill and Lot 10 — for RM323 mil- managed by Marriott International it,” says Yeoh. “I told him Thread- and his siblings