Singapore attracts Middle East investors at Cityscape Dubai

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For further information, please contact Lucy Hambour, Wallis Marketing Consultants, +971 4 390 1950

Key investment opportunities in Singapore

Ophir-Rochor mixed-use development site

The Ophir-Rochor corridor, in close proximity to the financial and commercial hub at Marina Bay and adjacent to Singapore's Arabic community at Kampong Glam, will provide opportunities for vibrant high-rise, mixed-use developments, offering 24/7 business and lifestyle environment. New developments at Ophir-Rochor will form a new office cluster for financial and business institutions, complementing the existing financial district.

"We had successfully sold a commercial site at Beach Road, located between Marina Bay and Ophir-Rochor, to a consortium that included Dubai-based Istithmar Group last year. We intend to build on the momentum and develop a new growth area at Ophir-Rochor, which will complement the financial district at Marina Bay", said Boey.

The 2.7 ha site has a gross floor area of 160,000 sqm, out of which a minimum of 40% is for office use, and a minimum of 15% for hotel use.

City centre commercial site

Located within the Civic District in the city centre along North Bridge Road, the site will be an iconic, landmark development, comprising a vibrant mix of retail, commercial, entertainment and hotel uses. The site comprises buildings that have been gazetted for conservation. The sale of the site will facilitate the restoration of the conserved buildings and add vibrancy to the area through the introduction of new entertainment, retail and hotel uses.

The 1.45-ha site can be for the development of an estimated 20,750 sqm of commercial space and approximately 600 hotel rooms. It will be launched for sale in December 2008.

Hotel site at Southern Waterfront

Beyond the city centre along Singapore's southern waterfront, a hotel site at Bukit Chermin will offer investors the opportunity to develop a distinctive lifestyle destination accommodation. The Bukit Chermin area is in proximity to the future Integrated Resort at Sentosa, with panoramic views overlooking the harbour.

The 3-ha site, comprising four colonial heritage (black and white) bungalows amidst a hilly terrain, can be for the development of approximately 100 hotel rooms and estimated 4,780 sqm of commercial space. The Bukit Chermin hotel development will offer greenery and tropical charm of Singapore's southern ridges, with magnificent waterfront views. The site will be launched for sale in November 2008.

Singapore's strong economic fundamentals

Singapore's strong economic fundamentals continue to underpin its attractiveness as an exciting real estate investment location. Singapore's economy grew by a strong 7.7% in 2007, amidst a low unemployment rate of 2.1% and an inflation rate of 2.1% for 2007. Singapore's economy is expected to continue to perform well and grow between 4% to 6% in the medium term. This will continue to underpin and drive the growth of the property market.

Real estate investments

Foreign investors have found Singapore's property market to be increasingly attractive. More are participating in the government land tenders or buying up existing properties. Foreign direct investment in Singapore's real estate was about S$14bn ($9.3bn) in 2007, compared to S$6.5bn ($4.1bn) in 2006.

Singapore has long been recognised as one of the best cities in the world for business, with the following credentials:
* Most competitive Asian Economy, according to the Global Competitiveness Report 2007, Singapore is the most competitive Asian Economy.
* Singapore was ranked by the World Bank as the world's easiest place to do business for three consecutive years from 2006 to 2008.

There is an increasing diverse range of foreign investors including those from Hong Kong, Europe, Japan, US, Australia and the Middle East in Singapore's property market. New foreign participants in our Government Land Sales Programme include firms like Dubai Properties, Northern Holdings, Park Hotel Group, Sino Land, Dubai World, El-Ad Group, Cheung Kong Ltd & Hutchinson Whampoa, Morgan Stanley as well as MGPA, amongst others.

We have also seen more real estate investment funds setting up office in Singapore to invest in Singapore and the region. These firms include Limitless, SEB Asset Management and Union Investment Real Estate (formerly known as DIFA), some of whom got interested in Singapore after talking to us in our overseas exhibitions.

The REIT market

Singapore's REIT market has experienced exponential growth since the launch of the first REIT in July 2002. Singapore now has the second largest REIT market in Asia, after Japan, with 21 REITs listed on the Singapore stock exchange and with more in the pipeline. As of September 2008, Singapore REITs have a total market capitalisation of around S$24bn ($16.7bn).