70 | CapitaLand Limited Annual Report 2014
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CapitaGreen, Singapore
CapitaLand Singapore is one of Singapore’s
leading developers, managers and owners of
integrated developments, ofmces and homes.
Singapore Property Market
Singapore’s residential market recorded sales of
7,316 new private homes in 2014, less than half of the
14,948 units sold in 2013. Prices continued to soften
in 2014 and registered a decline of 4% as compared to
an increase of 1.1% in 2013. The impact of the property
cooling measures continued to weigh down the private
residential market. Nonetheless, the long-term outlook
remains positive as government policies to promote
population and economic growth will likely support future
demand for housing.
Supply was tight in the Singapore ofmce market in 2014,
pushing up monthly Grade A ofmce rent by a healthy
14.9% y-o-y to S$11.20 psf as at 31 December 2014.
Grade A ofmce occupancy rose from 93.7% as at end
2013 to 94.2% as at end 2014. Given the limited new ofmce
supply in 2015, ofmce market rent is likely to continue to
rise as new CBD supply will be available only in the
second half of 2016.
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CapitaLand Singapore sold 278 residential units with a
total sales value of S$561 million in 2014.
In October 2014, CapitaLand celebrated the completion
of d’Leedon with a world-record setting feat featuring
the longest playable stringed musical instrument ever
set up and played. The event was attended by about
4,000 residents and their guests.
CapitaLand’s quality residential projects won several local
and international accolades. Notably, The Interlace won
the prestigious inaugural Urban Habitat Award conferred
by the Council on Tall Buildings and Urban Habitat. It was
also the only residential project to win the top accolade
of Universal Design Mark Platinum at the Building and
Construction Authority Awards 2014.
In September 2014, the CapitaLand Designer Series
was introduced, where fully-furnished units in various
design themes were marketed for immediate occupation.
The marketing campaign for Sky Habitat in Bishan was
well-received, achieving cumulative sales of 350 out of the
available 509 units as at end 2014. A preview of Marine
Blue was held for buyers who had indicated interest in the
development.
Bedok Residences, Sky Habitat and The Nassim are
targeted to be completed in 2015. Meanwhile, Marine Blue,
a residential development in Cairnhill Road and a landed
housing development in Coronation Road are expected to
be launch-ready in 2015.
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CapitaGreen, the joint venture development by
CapitaLand, CapitaCommercial Trust (CCT) and Mitsubishi
Estate Asia, obtained its Temporary Occupation Permit on
18 December 2014. The 40-storey Grade A ofmce
building secured leases with a prestigious list of tenants
for 486,800 sq ft or 69.3% of its total net lettable area
as at December 2014. Given the steady leasing
momentum and limited new supply in 2015, CapitaGreen is
well-positioned to ride the uptick in ofmce market rents as
the remaining space is progressively leased out.
A S$32.3 million asset enhancement initiative (AEI) for
Rafnes City Tower was completed in June 2014. Ongoing
asset enhancement works at Capital Tower have been
expanded in scope but kept within the same budget of
S$40 million, and are expected to complete in 4Q 2015. The
target return on investment for Capital Tower AEI is 7.8%.
Westgate Tower, the 20-storey ofmce tower of Westgate
located in Jurong East, was divested (together with
CapitaMall Trust) for S$579.4 million (S$1,900 psf) in
January 2014. The sale was completed in November
2014 and a signimcant portion of the proceeds has been
received, with the remaining 10% expected in 2015.
In July 2014, CapitaLand’s listed commercial REIT, CCT,
celebrated its 10
th
anniversary of listing on the Singapore
Exchange Securities Trading Limited. As at 31 December
2014, the total value of CCT’s deposited properties is
S$7.6 billion.
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In December, CapitaLand entered into a joint venture
with Juta Asia Corporation Sdn Bhd to develop a freehold
residential land parcel in Kuchai Lama, Kuala Lumpur.
The project which is expected to be launch-ready in 2015,
is located in a mature housing estate near Mid Valley City.
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