Page 29 - ar2012

We currently own 14 units inGallopGreen
and 14 units in The Holland Collection
which have been retained as investment
properties.
In 2012, there was estimated to have
been a net addition of 1 million sq ft of
commercial office space to the Central
Business District (CBD), mainly from
the completion of MBFC Tower 3*.
However, rentals at our flagship Straits
Trading Building were fairly stable with
an achieved 98.2% occupancy in FY2012
and a slight increase in average rentals.
Our total revenue from property fell as a
result of the expiry of our Master Lease
agreement for China Square Central in
March2012. Excludingrevenuecontributed
by theMaster Lease agreement, revenue
decreased slightly from S$56.6 million in
2011 to S$52.8 million in 2012.
MALAYSIA
In 2012, the Group’s joint venture
with the Taiko Group, Taiko-Straits
Developments Sdn Bhd, saw healthy
sales of Phase 2 of our luxurious freehold
bungalow development, The Thompson
Collection 2, in Ipoh.
Following the feasibility studies done in
2011 on our land parcel in Butterworth,
we have completed the development
master plan which has been submitted
to the relevant regulatory bodies in
Malaysia for approval. We are also
examining various opportunities to
maximise the value of our land parcels
in Ipoh and Seremban.
PROSPECTS
Given the uncertainty of the impact of
the government cooling measures in
Singapore, we believe that property
prices and values will in the immediate
term be primarily dictated by policy risk
considerations rather than market forces.
For this reason, the board is adopting
a “wait and see” attitude rather than a
proactive strategy on the propertymarket.
The Thompson Collection 2 – The Panorama, luxurious freehold bungalows in Ipoh, Malaysia
* Source: DTZ Property Times, SingaporeQ4 2012
The Straits Trading Company Limited ANNUAL REPORT 2012 27 /