Page 28 - ar2012

Business Review (continued)
PROPERTY
Since the government- ini t iated
property cooling measures in 2011,
we have adopted a prudent and less
aggressive strategy with regards
to our properties in Singapore. In
mapping out this roadmap, we had
considered the uncertain economic
scenario, coupled with the possibility
of further government intervention in
the property sector and chose not to
undertake any property acquisitions
that would have increased our gearing
and business risk. Instead, we were
focused on marketing our current
portfolio to realise value.
This proved to be a an appropriate
decision, as the government announced
several rounds of cooling measures in
2012 tomoderate property prices. These
included increasing the Additional Buyers
Stamp Duty on foreign buyers to 10%,
restricting the tenure of new home loans
to 35 years and more stringent loan-to-
value lending criteria to as low as 40%.
We are pleased that our prudence has
shieldedus fromtheensuingvulnerabilities
in themarket arising from these additional
cooling measures which has placed us
in a strong position to capitalise on
potential opportunities in other markets
where we operate.
SINGAPORE
In FY2012, we achieved our year’s target
in selling non-core residential properties
on the back of strong pricing and
interest. Notably our strata bungalows
at Five Chancery, along Chancery Lane,
recorded good sales, which contributed
S$30.2 million to revenue in FY2012.
During FY2012, we also commenced
development on our current land parcels
along Nathan Road, slated for high-end
lifestyle properties. It is expected that
Temporary Occupation Permit (TOP) will
be issued by the end of fourth quarter of
2013 for the three Good Class Bungalow
(GCB) plots. The potential fair value
gains is estimated to be S$2.0 million.
Resplendent Good Class Bungalows developed by Straits Trading’s Property division
T R A N S F O R M AT I ON / 26