Daily Review

30 November 2006

LIM & TAN SECURITIES PTE LTD

PROPERTY

�� The government is expected to launch the

tender, the former NCO Club facing Raffles Hotel)

sometime next month, which we expect to get investors

all excited again over the property market in Singapore.

�� And the numbers are starting to hit us:

- Size of land is 3.5 hectares (ha), almost twice

Orchard Turn?s (OT) 1.8 ha. (OT is currently

being jointly developed by CapitaLand and Sun

Hung Kai of HK.)

- Its plot ratio is however much lower at 4.2X but

even so, gross floor area (GFA) of 1.5m sf is larger

than OT?s 1.2m.

- Given that

OT, which is part residential i.e the commercial

space of Beach would be at least twice as big as OT.

- Applying say $700psf of land cost per sf of built-up,

the site can be valued at some $1bn, not that far

from OT?s $1.38bn.

- The authorities are estimating 655 high-end hotel

rooms to be built on this site. (We cannot recall

when a hotel of this size was last built!)

- The

major MRT lines: the North East and Circle Lines,

as well as the new Esplanade Rapid Transit System

(RTS), which will be operational in 2010.

�� We like to believe this is the kind of project that will

attract the Middle Eastern investors, especially when it

includes a hotel element.

�� Recall in late October, Emirates Investment Group

(EIG) had expressed interest in investing S$1 bln in a

hotel development in Singapore, likely a Versace hotel

here, to be the third in the world, after Dubai and

Queensland. Note also Prince Al-waleed of Saudi Arabia

is co-owner of Four Seasons Group, which has

alliance with Colony Capital, which bought Raffles

Hotel and other hotel assets from Raffles Holdings.

�� Note also Singapore?s frantic efforts to engage the Middle

East, with PM having just concluded his first-ever visit to

Qatar and Saudi Arabia.

�� Some of the companies that will be anxious about the

outcome:

- CMT/CCT, which recently jointly paid S$2.085

bln for Raffles City;

- Shaw Group which owns Shaw Tower;

- Singapore Land, which owns Gateway offfice

tower;

- (and if investors are excited enough,) Hong Fok,

whose Concourse is at the other end of Beach

Road. The excitement may however have to wait

for the eventual tender of the former

police station.

�� There are two more plots in the Beach / Bugis area due

for redevelopment in the not-too-distant future, and it

will be interesting to guess which of the 2 sites the

government would put up for tender first: the piece of

land at

or the former

LIM & TAN SECURITIES PTE LTD

Daily Review 29 November 2006

PROPERTY Still Sizzling

�� Prime residential market remains buoyant, with all

85 units of Hoi Hup?s Ford @ Holland snapped up

within one hour when launched yesterday.Prime residential market remains buoyant, with all

85 units of Hoi Hup?s Ford @ Holland snapped up

within one hour when launched yesterday.Hoi Hup?s Ford @ Holland snapped up

within one hour when launched yesterday.

�� Merrill Lynch has signed up for the entire new 6-

storey harbor-front building (200,000 sf) thatMerrill Lynch has signed up for the entire new 6-

storey harbor-front building (200,000 sf) that

Mapletree is building at Telok Blangah. This marks

the second biggest lease agreement in Singapore,

after Deutsche Bank?s lease at One Raffles Quay.is building at Telok Blangah. This marks

the second biggest lease agreement in Singapore,

after Deutsche Bank?s lease at One Raffles Quay.Deutsche Bank?s lease at One Raffles Quay.

�� Tuan Sing said it will proceed with the revised bid

for 25% owned Grand Hotel Australia, despite

the latter?s management?s intention to sell the assets,

ie all 7 hotels it owns. (Tuan Sing?s offer is conditional

on, among others, that management of Grand Hotel,

not proceeding with asset disposal.) We believe

this only reflects confidence of all parties involved

in the bright prospects for hotel assets in Australia.

This bodes well for Stamford Land, which differs

from Grand Hotel in that it owns and manages its

own hotels, unlike Grand Hotel, which is essentially

a hotel owner.Tuan Sing said it will proceed with the revised bid

for 25% owned Grand Hotel Australia, despite

the latter?s management?s intention to sell the assets,

ie all 7 hotels it owns. (Tuan Sing?s offer is conditional

on, among others, that management of Grand Hotel,

not proceeding with asset disposal.) We believe

this only reflects confidence of all parties involved

in the bright prospects for hotel assets in Australia.

This bodes well for Stamford Land, which differs

from Grand Hotel in that it owns and manages its

own hotels, unlike Grand Hotel, which is essentially

a hotel owner.Grand Hotel Australia, despite

the latter?s management?s intention to sell the assets,

ie all 7 hotels it owns. (Tuan Sing?s offer is conditional

on, among others, that management of Grand Hotel,

not proceeding with asset disposal.) We believe

this only reflects confidence of all parties involved

in the bright prospects for hotel assets in Australia.

This bodes well for Stamford Land, which differs

from Grand Hotel in that it owns and manages its

own hotels, unlike Grand Hotel, which is essentially

a hotel owner.Stamford Land, which differs

from Grand Hotel in that it owns and manages its

own hotels, unlike Grand Hotel, which is essentially

a hotel owner.

�� Just as many may have thought supply of new land

at Sentosa was running low, and hence record

prices achieved in recent months, the Singapore

Tourism Board plans to launch in Q1 ?07, a Request

for Concepts for the Southern Islands, comprising

St John?s, Kusu, Lazarus, Sisters, Renget and Kias

Islands adding up to 140 hectares of land. Plans for

a haven for billionaires: 300 housing plots and a

luxury hotel, have already been proposed.Just as many may have thought supply of new land

at Sentosa was running low, and hence record

prices achieved in recent months, the Singapore

Tourism Board plans to launch in Q1 ?07, a Request

for Concepts for the Southern Islands, comprising

St John?s, Kusu, Lazarus, Sisters, Renget and Kias

Islands adding up to 140 hectares of land. Plans for

a haven for billionaires: 300 housing plots and a

luxury hotel, have already been proposed.

�� What is particularly worth noting is the comment

by Kok Sing Soon, STB?s Director of Leisure Planning

that we do no want to dissipate tourism all

over the island. This is a significant lesson we

have learned, especially given the average short day

of tourists in this country, which suggests the

wisdom of concentrating tourist attractions in and

around Marina / Sentosa.What is particularly worth noting is the comment

by Kok Sing Soon, STB?s Director of Leisure Planning

that we do no want to dissipate tourism all

over the island. This is a significant lesson we

have learned, especially given the average short day

of tourists in this country, which suggests the

wisdom of concentrating tourist attractions in and

around Marina / Sentosa.we do no want to dissipate tourism all

over the island. This is a significant lesson we

have learned, especially given the average short day

of tourists in this country, which suggests the

wisdom of concentrating tourist attractions in and

around Marina / Sentosa.. This is a significant lesson we

have learned, especially given the average short day

of tourists in this country, which suggests the

wisdom of concentrating tourist attractions in and

around Marina / Sentosa.

LKH may be thinking of getting the mega project in Johor with this tie up