Friday, 20 May 2011
Roxy-Pacific obtains 100% consent for enbloc at Mackenzie Rd
Specialty property and hospitality group Roxy-Pacific Holdings Ltd has announced that its wholly-owned subsidiary, RL Central Ltd, has obtained 100 percent consent for the collective sale of a freehold site located at 131 Mackenzie Road for approximately S$24.6 million.
“The company is pleased to announce that all the registered subsidiary proprietors of the units holding 100 percent share value had consented to the collective sale of the development,” it said.
The site is zoned for residential development, with a total area of 1,198 sq m and a maximum plot ratio of 2.1.
Roxy-Pacific Holdings had earlier said that the acquisition will be funded through internal resources and bank borrowings.
KSH Holdings clinches S$78.7m residential contract
Established construction, property development and property management group KSH Holdings Limited has clinched a S$78.7 million contract from Botanica Pte Ltd, a wholly-owned subsidiary of Wheelock Properties, for the construction of the Ardmore Three development.
Under the terms of the contract, KSH will begin construction of the project in June. This will include communal facilities, a swimming pool, basement carparks and other associated works.
“We are pleased to be awarded the Ardmore Three project,” said Mr. Choo Chee Onn, Executive Chairman and Managing Director of KSH Holdings.
“Having successfully built up a portfolio of high-end luxurious residential projects, we have a wealth of experience and expertise that we will tap on in the construction of Ardmore Three. We believe that this contract win serves as a vote of confidence in the high quality of work that KSH is known to deliver.”
Located in Ardmore Park, Singapore's most desirable residential enclave, Ardmore Three is a 36-storey, 84-unit freehold development that offers convenient access to the heart of Orchard Road, while retaining exclusivity, away from the hustle and bustle of the city.
With this new contract, the company’s existing order book now stands at around S$245 million. It also expects its unfulfilled contract value for all existing contracts to be completed by August 2013.
Mr. Choo noted that the company will “continue to maintain a healthy balance of both public and private projects.”
“We do so with the aim of diversifying our portfolio in the construction business, and in turn develop a competitive edge that will allow us to tender for a wide range of projects in both the public and private sectors,” he said.
Under the terms of the contract, KSH will begin construction of the project in June. This will include communal facilities, a swimming pool, basement carparks and other associated works.
“We are pleased to be awarded the Ardmore Three project,” said Mr. Choo Chee Onn, Executive Chairman and Managing Director of KSH Holdings.
“Having successfully built up a portfolio of high-end luxurious residential projects, we have a wealth of experience and expertise that we will tap on in the construction of Ardmore Three. We believe that this contract win serves as a vote of confidence in the high quality of work that KSH is known to deliver.”
Located in Ardmore Park, Singapore's most desirable residential enclave, Ardmore Three is a 36-storey, 84-unit freehold development that offers convenient access to the heart of Orchard Road, while retaining exclusivity, away from the hustle and bustle of the city.
With this new contract, the company’s existing order book now stands at around S$245 million. It also expects its unfulfilled contract value for all existing contracts to be completed by August 2013.
Mr. Choo noted that the company will “continue to maintain a healthy balance of both public and private projects.”
“We do so with the aim of diversifying our portfolio in the construction business, and in turn develop a competitive edge that will allow us to tender for a wide range of projects in both the public and private sectors,” he said.
Inflation to ease 3 - 4%, says MAS
Inflation has most likely peaked and will average three to four percent in 2011, said Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS).
The Consumer Price Index (CPI) climbed 5.2 percent in Q1 2011 but the MAS expects price increases to moderate, due in part to the robust Singapore dollar.
The currency is exchanging at close record levels against most major currencies and has played a key role in keeping prices in check.
The central bank pre-emptively tightened exchange rate guidelines in April 2010 and followed up with more tightening measures in October 2010 and April 2011.
“Allowing the Singapore dollar to strengthen has had a dampening effect on inflation in Singapore, which would otherwise have been much higher,” Mr. Menon noted.
The Consumer Price Index (CPI) climbed 5.2 percent in Q1 2011 but the MAS expects price increases to moderate, due in part to the robust Singapore dollar.
The currency is exchanging at close record levels against most major currencies and has played a key role in keeping prices in check.
The central bank pre-emptively tightened exchange rate guidelines in April 2010 and followed up with more tightening measures in October 2010 and April 2011.
“Allowing the Singapore dollar to strengthen has had a dampening effect on inflation in Singapore, which would otherwise have been much higher,” Mr. Menon noted.
Jones Lang LaSalle announces new appointment
Global real estate services firm Jones Lang LaSalle (JLL) has appointed Martin Hinge as Managing Director for Project and Development Services (PDS) business in Asia Pacific.
Mr. Hinge has worked in JLL’s Australia, Greater China, India, Philippines and Singapore offices for 10 years. He succeeded Albert Ovidi, who assumed the role of Chief Operating Officer, Asia Pacific, earlier this year.
“Our diverse client base of occupiers and investors reaching across all Asian markets provides us with a strong platform to continue to grow our PDS business across new sectors, services and geographies across the region,” said Mr. Hinge.
According to JLL’s recent Global Corporate Real Estate Survey 2011, 60 percent of companies expect to expand their real estate businesses in North Asia, primarily China.
“Development activity, which slowed during the Global Financial Crisis, has now picked up in Asia, with an additional 40 percent supply coming on the market this year alone, compared to 2010.”
“We expect this to translate into increased demand for project management services in the region,” Mr. Hinge added.
Meanwhile, Mr. Ovidi, as COO, will work closely with JLL’s Asia Pacific CEO Alastair Hughes to execute the company’s growth strategies and provide strategic leadership to both the PDS and Property and Asset Management (PAM) businesses.
“Martin’s elevation to the MD position for PDS is testament to his contributions to the business and the firm. Based on the recovery in capital spending across Asia Pacific and the strong economic outlook, we have an aggressive growth plan in place for PDS in 2011,” said Mr. Ovidi.
Mr. Hinge has worked in JLL’s Australia, Greater China, India, Philippines and Singapore offices for 10 years. He succeeded Albert Ovidi, who assumed the role of Chief Operating Officer, Asia Pacific, earlier this year.
“Our diverse client base of occupiers and investors reaching across all Asian markets provides us with a strong platform to continue to grow our PDS business across new sectors, services and geographies across the region,” said Mr. Hinge.
According to JLL’s recent Global Corporate Real Estate Survey 2011, 60 percent of companies expect to expand their real estate businesses in North Asia, primarily China.
“Development activity, which slowed during the Global Financial Crisis, has now picked up in Asia, with an additional 40 percent supply coming on the market this year alone, compared to 2010.”
“We expect this to translate into increased demand for project management services in the region,” Mr. Hinge added.
Meanwhile, Mr. Ovidi, as COO, will work closely with JLL’s Asia Pacific CEO Alastair Hughes to execute the company’s growth strategies and provide strategic leadership to both the PDS and Property and Asset Management (PAM) businesses.
“Martin’s elevation to the MD position for PDS is testament to his contributions to the business and the firm. Based on the recovery in capital spending across Asia Pacific and the strong economic outlook, we have an aggressive growth plan in place for PDS in 2011,” said Mr. Ovidi.
BCA honours Jakarta Garden City
The Jakarta Garden City development is raising the bar for green developments by becoming the first residential township in Indonesia to be conferred the Green Mark Gold Award by the Building and Construction Authority (BCA) of Singapore.
Developed by one of Asia's premier property developers, Keppel Land Limited (Keppel Land), Jakarta Garden City features thoughtfully designed and environmentally responsible elements like water-efficient taps, toilet cisterns, filtration systems and the recycling of non-potable water for irrigation. Public spaces have also been built to allow daylight into common areas such as carparks and staircases, minimising the need for artificial lighting.
“With rapid urbanisation and environmental concerns, Indonesians are becoming more eco-conscious and seek homes which can achieve energy and cost savings, while benefiting the environment at the same time,” said Mr. Lim Seng Bin, President Director of PT Mitra Sindo Sukses, the Keppel Land-led joint venture (JV) company behind Jakarta Garden City.
“At Jakarta Garden City, we are committed to setting benchmarks for a desirable live-work-play-learn in an integrated township with a vibrant and eco-conscious community.”
Jakarta Garden City is expected to achieve savings of 14 percent and 43 percent in water and energy consumption respectively, resulting in total savings of around 1.87 billion IDR (S$287,500) each year.
“We are glad that the BCA Green Mark scheme is increasingly adopted by building projects beyond Singapore. We are heartened that BCA is playing a crucial role in raising awareness of the importance of sustainable developments in our tropical built environment,” noted Mr. Tan Tian Chong, Director of Technology Development at BCA.
“As the first residential development in Indonesia to receive the BCA Green Mark Gold Award, residents of Jakarta Garden City will experience first-hand the benefits of staying in an environmentally friendly building. We hope that this will encourage and spur demand for similar sustainable developments in the near future."
Launched in January 2005, the BCA Green Mark scheme aims to promote sustainability in the built environment. The green building rating system evaluates a building for its environmental impact and performance in the areas of environmental protection, energy and water efficiency, indoor environmental quality and other green features and innovation.
The development bagged the Best Middle Class Residential Development title at the International Real Estate Federation (FIABCI) Indonesia – BNI Prix d'Excellence Award 2009 and was the runner-up in the Residential (Low Rise) category at the FIABCI Prix d'Excellence Awards 2010. The township was also named Well-planned, Environmentally-friendly and Technologically Modern Township at the Indonesia Property and Bank Awards 2009.
Developed by one of Asia's premier property developers, Keppel Land Limited (Keppel Land), Jakarta Garden City features thoughtfully designed and environmentally responsible elements like water-efficient taps, toilet cisterns, filtration systems and the recycling of non-potable water for irrigation. Public spaces have also been built to allow daylight into common areas such as carparks and staircases, minimising the need for artificial lighting.
“With rapid urbanisation and environmental concerns, Indonesians are becoming more eco-conscious and seek homes which can achieve energy and cost savings, while benefiting the environment at the same time,” said Mr. Lim Seng Bin, President Director of PT Mitra Sindo Sukses, the Keppel Land-led joint venture (JV) company behind Jakarta Garden City.
“At Jakarta Garden City, we are committed to setting benchmarks for a desirable live-work-play-learn in an integrated township with a vibrant and eco-conscious community.”
Jakarta Garden City is expected to achieve savings of 14 percent and 43 percent in water and energy consumption respectively, resulting in total savings of around 1.87 billion IDR (S$287,500) each year.
“We are glad that the BCA Green Mark scheme is increasingly adopted by building projects beyond Singapore. We are heartened that BCA is playing a crucial role in raising awareness of the importance of sustainable developments in our tropical built environment,” noted Mr. Tan Tian Chong, Director of Technology Development at BCA.
“As the first residential development in Indonesia to receive the BCA Green Mark Gold Award, residents of Jakarta Garden City will experience first-hand the benefits of staying in an environmentally friendly building. We hope that this will encourage and spur demand for similar sustainable developments in the near future."
Launched in January 2005, the BCA Green Mark scheme aims to promote sustainability in the built environment. The green building rating system evaluates a building for its environmental impact and performance in the areas of environmental protection, energy and water efficiency, indoor environmental quality and other green features and innovation.
The development bagged the Best Middle Class Residential Development title at the International Real Estate Federation (FIABCI) Indonesia – BNI Prix d'Excellence Award 2009 and was the runner-up in the Residential (Low Rise) category at the FIABCI Prix d'Excellence Awards 2010. The township was also named Well-planned, Environmentally-friendly and Technologically Modern Township at the Indonesia Property and Bank Awards 2009.
April home price increases more widespread in China
More cities in China witnessed a rise in the prices of new homes in April, compared with March, as the government continued to curb property prices, according to official data from the National Bureau of Statistics (NBS).
Of the 70 major cities monitored, 56 recorded an increase in the prices of new homes, while home prices decreased in nine cities and remained steady in five others.
In March, 49 cities saw home prices climb, while 12 saw them decline.
Beijing was among the major cities that saw prices rise by a marginal 0.1 percent, while Shanghai witnessed an increase of 0.3 percent, according to NBS.
The Chinese government has been trying to control property prices, which in many regions have increased far beyond what an average income earner can afford.
Since late 2009, the government has imposed various property cooling measures, such as banning the purchase of second homes in some cities and levying trial property taxes in Chongqing and Shanghai.
To pacify growing public resentment over high property costs, the government has promised to supply more land for low-cost housing this year.
The April data represents the fourth monthly poll since the government replaced the nationwide property index by publishing data for individual cities.
Of the 70 major cities monitored, 56 recorded an increase in the prices of new homes, while home prices decreased in nine cities and remained steady in five others.
In March, 49 cities saw home prices climb, while 12 saw them decline.
Beijing was among the major cities that saw prices rise by a marginal 0.1 percent, while Shanghai witnessed an increase of 0.3 percent, according to NBS.
The Chinese government has been trying to control property prices, which in many regions have increased far beyond what an average income earner can afford.
Since late 2009, the government has imposed various property cooling measures, such as banning the purchase of second homes in some cities and levying trial property taxes in Chongqing and Shanghai.
To pacify growing public resentment over high property costs, the government has promised to supply more land for low-cost housing this year.
The April data represents the fourth monthly poll since the government replaced the nationwide property index by publishing data for individual cities.
UK mortgage market favours wealthy
The UK mortgage industry is still giving the best rates to wealthy borrowers, implying that the market remains effectively closed to most first-time home buyers.
On average, the best deals offered by lenders to typical first-time home buyers are of “very poor value.”
There is also the prevalent problem of lenders providing “eye-catching” rates that offer limited supply.
“Lenders are also now openly talking about favouring lending to cash-rich buy-to-let investors, rather than to first-time buyers. It's likely that this situation is going to continue for a while yet,” said PricedOut spokesperson Matt Griffith.
E.serv, one of the largest providers of housing valuation services in the UK, revealed that more first-time home buyers mounted the real estate ladder in April, as a result of gradually slackening lending requirements.
On average, the best deals offered by lenders to typical first-time home buyers are of “very poor value.”
There is also the prevalent problem of lenders providing “eye-catching” rates that offer limited supply.
“Lenders are also now openly talking about favouring lending to cash-rich buy-to-let investors, rather than to first-time buyers. It's likely that this situation is going to continue for a while yet,” said PricedOut spokesperson Matt Griffith.
E.serv, one of the largest providers of housing valuation services in the UK, revealed that more first-time home buyers mounted the real estate ladder in April, as a result of gradually slackening lending requirements.
Thursday, 19 May 2011
US mortgage rates still declining
Mortgage rates in the US continued to slip, falling for the fifth consecutive week, according to the latest figures from the Mortgage Bankers Association.
Average interest rates on 30-year fixed-rate home loans dropped to 4.60 percent in the previous week, the lowest since last November.
Interest rates on 15-year mortgages also dropped to an average of 3.75 percent, a decline from 3.81 percent in the previous week.
Demand for mortgage refinancing has been gradually increasing, as rates have dropped, with total refinance applications increasing by one-third over the past five weeks. Refinance applications climbed 13 percent over the past week alone but are still running at approximately half of their October 2010 recent peak.
The falling interest rates have not affected strengthened interest in home acquisitions but applications for mortgages to acquire homes continue to drop.
The applications for home purchase mortgages dropped a seasonally adjusted 3.2 percent in the previous week and have decreased by a weekly average of 2.9 percent over the past month.
Last week, purchase applications were running 1.7 percent below their level in the same period in 2010, when home sales activity plunged, in the wake of the 30 April 2010 deadline for the home buyer tax credit.
The weekly MBA survey covers almost half of all residential mortgage applications in the US, with interest rate averages based on loans with an 80 percent loan-to-value ratio.
Average interest rates on 30-year fixed-rate home loans dropped to 4.60 percent in the previous week, the lowest since last November.
Interest rates on 15-year mortgages also dropped to an average of 3.75 percent, a decline from 3.81 percent in the previous week.
Demand for mortgage refinancing has been gradually increasing, as rates have dropped, with total refinance applications increasing by one-third over the past five weeks. Refinance applications climbed 13 percent over the past week alone but are still running at approximately half of their October 2010 recent peak.
The falling interest rates have not affected strengthened interest in home acquisitions but applications for mortgages to acquire homes continue to drop.
The applications for home purchase mortgages dropped a seasonally adjusted 3.2 percent in the previous week and have decreased by a weekly average of 2.9 percent over the past month.
Last week, purchase applications were running 1.7 percent below their level in the same period in 2010, when home sales activity plunged, in the wake of the 30 April 2010 deadline for the home buyer tax credit.
The weekly MBA survey covers almost half of all residential mortgage applications in the US, with interest rate averages based on loans with an 80 percent loan-to-value ratio.
Wednesday, 18 May 2011
CapitaLand unit divests Shanghai property
CapitaLand Limited has announced the divestment of a 144,657 sq m residential site in Shanghai’s Qingpu District in China, for a cash consideration of RMB807.7 million (S$152.6 million).
CapitaLand’s wholly-owned unit, CapitaLand China Holdings (CCH), has entered into a sale-and-purchase agreement with an unrelated party, for the disposal of its 100 percent stake in BR Properties Ltd for approximately S$152.6 million. BR Properties holds a 95 percent interest in Shanghai Guang Nan Real Estate Development Co, which owns the residential site.
“In line with our stated growth strategy for the Group, we are focused on acquiring and developing choice real estate properties, or realising value from investments which have matured such as the residential site in Shanghai’s Qingpu District,” said Mr. Liew Mun Leong, President and CEO of CapitaLand Group.
“The capital recycled from the divestments will be deployed for growth opportunities as we build on our successes in the respective real estate sectors. For example, in Singapore we continue to increase our presence with the acquisition and development of prime residential sites and quality shopping malls. In the office sector, we will redevelop the Market Street Car Park into a modern grade A office tower.”
Meanwhile, CCH also announced last week the divestment of Hilton Double Tree Hotel in Kunshan, China for a cash consideration of RMB257.5 million (S$49 million).
The property comprises 398 hotel rooms managed by Hilton, with a gross floor area (GFA) of around 40,196 sq m. CapitaLand is expected to recognise a net gain of around S$18 million upon completing the acquisition.
“I am pleased with the profitable transaction of the Shanghai residential site, which comes close on the heels of the recently announced divestment of Hilton Double Tree Hotel in Kunshan. Both transactions are part of CapitaLand China’s ongoing strategy of capital productivity,” said Mr. Jason Leow, Chief Executive of CCH.
CapitaLand’s wholly-owned unit, CapitaLand China Holdings (CCH), has entered into a sale-and-purchase agreement with an unrelated party, for the disposal of its 100 percent stake in BR Properties Ltd for approximately S$152.6 million. BR Properties holds a 95 percent interest in Shanghai Guang Nan Real Estate Development Co, which owns the residential site.
“In line with our stated growth strategy for the Group, we are focused on acquiring and developing choice real estate properties, or realising value from investments which have matured such as the residential site in Shanghai’s Qingpu District,” said Mr. Liew Mun Leong, President and CEO of CapitaLand Group.
“The capital recycled from the divestments will be deployed for growth opportunities as we build on our successes in the respective real estate sectors. For example, in Singapore we continue to increase our presence with the acquisition and development of prime residential sites and quality shopping malls. In the office sector, we will redevelop the Market Street Car Park into a modern grade A office tower.”
Meanwhile, CCH also announced last week the divestment of Hilton Double Tree Hotel in Kunshan, China for a cash consideration of RMB257.5 million (S$49 million).
The property comprises 398 hotel rooms managed by Hilton, with a gross floor area (GFA) of around 40,196 sq m. CapitaLand is expected to recognise a net gain of around S$18 million upon completing the acquisition.
“I am pleased with the profitable transaction of the Shanghai residential site, which comes close on the heels of the recently announced divestment of Hilton Double Tree Hotel in Kunshan. Both transactions are part of CapitaLand China’s ongoing strategy of capital productivity,” said Mr. Jason Leow, Chief Executive of CCH.
HK's URA to acquire 159 flats at record prices
A clutch of shabby flats at To Kwa Wan in Kowloon, Hong Kong are set to be offered at record prices.
The Urban Renewal Authority (URA) is all set to pay HK$9,785 psf to acquire 159 flats in a region bounded by Chun Tin Street, Ma Tau Wai Road and Hok Yuen Street. The shabby flats will be replaced by 400 new flats of sizes below 500 sq ft each.
The price offered by the URA is twice the current price for flats in Kowloon, as well as the highest unit-price offered by the authority for a property in the area.
Boosted by recent market trends, the offer will take the rebuilding project costs — purchasing, re-housing and development — to HK$1.52 billion from the last estimate of HK$1.45 billion. A loss of HK$1 billion is anticipated for the project.
The development cost for each sq ft of the 400 new flats will be approximately HK$3,000.
Barry Cheung Chun-yuen, Chairman of URA, said, “We attach a great deal of importance to this project, in view of its special circumstances.”
“While awaiting the green light to go ahead with the project, some 143 tenants and owners have so far been given assistance and moved out under special measures.”
According to the authority, the acquisition offers consider the market value of a seven-year-old flat of the same size in a similar location and include the government’s Home Purchase Allowance.
Owners of the 159 flats will be sent offer letters by the end of May and will be given 60 days to decide whether or not they will accept the offer.
The Urban Renewal Authority (URA) is all set to pay HK$9,785 psf to acquire 159 flats in a region bounded by Chun Tin Street, Ma Tau Wai Road and Hok Yuen Street. The shabby flats will be replaced by 400 new flats of sizes below 500 sq ft each.
The price offered by the URA is twice the current price for flats in Kowloon, as well as the highest unit-price offered by the authority for a property in the area.
Boosted by recent market trends, the offer will take the rebuilding project costs — purchasing, re-housing and development — to HK$1.52 billion from the last estimate of HK$1.45 billion. A loss of HK$1 billion is anticipated for the project.
The development cost for each sq ft of the 400 new flats will be approximately HK$3,000.
Barry Cheung Chun-yuen, Chairman of URA, said, “We attach a great deal of importance to this project, in view of its special circumstances.”
“While awaiting the green light to go ahead with the project, some 143 tenants and owners have so far been given assistance and moved out under special measures.”
According to the authority, the acquisition offers consider the market value of a seven-year-old flat of the same size in a similar location and include the government’s Home Purchase Allowance.
Owners of the 159 flats will be sent offer letters by the end of May and will be given 60 days to decide whether or not they will accept the offer.
Property auction in Taipei responsible for setting record prices
Spaces within a building in the Eastern area of Taipei City in Taiwan were auctioned on Monday, attracting several potential buyers and setting record prices.
The property, Sanyang Zhongxiao Building, is located at No. 180, Zhongxiao East Road Section 4. It is divided into two sections, with the underground and first to third floors grouped into one package with a price tag of NT$860 million (S$37 million).
Meanwhile, the fourth to 14th floors, excluding the sixth and seventh floors, were grouped into another package with a base price of around NT$1.36 billion.
The first package was acquired by Fubon Life for a whopping NT$2.011 billion, more than twice the NT$860 million price tag. A Chinese investment consultancy firm, Jifu Zhonghua, won the bid for the second package for NT$2.1345 billion, approximately 56.7 percent higher than the NT$1.36 billion base price.
With a total offer of NT$4.145 billion, this translates into a unit price of between NT$6.5 million and NT$7 million a ping, or 3.3 sq m, the highest price paid in a commercial property auction.
The property, Sanyang Zhongxiao Building, is located at No. 180, Zhongxiao East Road Section 4. It is divided into two sections, with the underground and first to third floors grouped into one package with a price tag of NT$860 million (S$37 million).
Meanwhile, the fourth to 14th floors, excluding the sixth and seventh floors, were grouped into another package with a base price of around NT$1.36 billion.
The first package was acquired by Fubon Life for a whopping NT$2.011 billion, more than twice the NT$860 million price tag. A Chinese investment consultancy firm, Jifu Zhonghua, won the bid for the second package for NT$2.1345 billion, approximately 56.7 percent higher than the NT$1.36 billion base price.
With a total offer of NT$4.145 billion, this translates into a unit price of between NT$6.5 million and NT$7 million a ping, or 3.3 sq m, the highest price paid in a commercial property auction.
China intensifies rebuilding efforts in Urumqi slums
China is increasing its efforts to replace crude mud-and-brick houses with contemporary concrete apartments in the slum regions of the northwestern city of Urumqi.
Home to 250,000 people, the majority of which are ethnic Uighurs, the slum areas in Xinjiang Uighur Autonomous Region’s capital city are considered the breeding grounds for the resentment that sparked the deadly riots on 5 July 2009.
A government official said that approximately 15,000 households in 50 slum regions will be covered by the government-funded project this year.
Xie Min, Deputy Director of Urumqi’s Construction Committee, noted that all of the 234 slum areas in the city will be demolished and redeveloped by 2012, with the government spending another two years to enhance the facilities in the community.
Yashan slum, once referred as a “thug town” by local residents, is one of the many slum regions removed by the government. It was replaced by rows of six-floor concrete apartment buildings. A kindergarten centre, a clinic and an activity area have also been developed in the region.
Home to 250,000 people, the majority of which are ethnic Uighurs, the slum areas in Xinjiang Uighur Autonomous Region’s capital city are considered the breeding grounds for the resentment that sparked the deadly riots on 5 July 2009.
A government official said that approximately 15,000 households in 50 slum regions will be covered by the government-funded project this year.
Xie Min, Deputy Director of Urumqi’s Construction Committee, noted that all of the 234 slum areas in the city will be demolished and redeveloped by 2012, with the government spending another two years to enhance the facilities in the community.
Yashan slum, once referred as a “thug town” by local residents, is one of the many slum regions removed by the government. It was replaced by rows of six-floor concrete apartment buildings. A kindergarten centre, a clinic and an activity area have also been developed in the region.
Aussie mortgage approvals drop to 10-year low
Mortgage approvals in Australia unexpectedly fell in March to its lowest in over 10 years, as higher rates lured buyers away from the mortgage market, according to a Business Times report.
The number of mortgages granted to borrowers dropped 1.5 percent to 44,968 in March, from the 4.7 percent revised forecast in the previous month, according to the statistics bureau in Australia.
“Higher interest rates in coming months will keep demand and price growth in check,” said Matthew Circosta, an economist at Moody's Analytics in Sydney.
Glenn Stevens, Governor of the Reserve Bank of Australia, set the benchmark rate at 4.75 percent in May, after increasing borrowing costs seven times from October 2009 to November 2010, in order to prevent a property bubble.
Meanwhile, loan value dropped 0.1 percent to A$19.3 billion (S$25.4 billion) in March, with the lending value of owner-occupiers falling to 1.1 percent.
The data also showed that first-time home buyers accounted for 16 percent of the total mortgages approved in March, up from 14.9 percent in the preceding months and lower than the 16.4 percent in the previous year.
The number of mortgages granted to borrowers dropped 1.5 percent to 44,968 in March, from the 4.7 percent revised forecast in the previous month, according to the statistics bureau in Australia.
“Higher interest rates in coming months will keep demand and price growth in check,” said Matthew Circosta, an economist at Moody's Analytics in Sydney.
Glenn Stevens, Governor of the Reserve Bank of Australia, set the benchmark rate at 4.75 percent in May, after increasing borrowing costs seven times from October 2009 to November 2010, in order to prevent a property bubble.
Meanwhile, loan value dropped 0.1 percent to A$19.3 billion (S$25.4 billion) in March, with the lending value of owner-occupiers falling to 1.1 percent.
The data also showed that first-time home buyers accounted for 16 percent of the total mortgages approved in March, up from 14.9 percent in the preceding months and lower than the 16.4 percent in the previous year.
Monday, 16 May 2011
HK land sites sold above estimates
Three sites in Hong Kong offered by the government for land auction fetched a staggering price of HK$5.7 billion, above analyst estimates, according to The Standard.
This marks the developers' confidence that property curbs have not softened demand for luxury homes.
The 158,231-sq-ft site of former Lingnan University on Stubbs Road has been sold to Sun Hung Kai Properties for HK$4.49 billion. This translates to around HK$24,829 per buildable sq ft, making it the third highest selling price ever paid in the city.
With 33 bids coming from five bidders, the competitive bid was finished in only 11 minutes.
Victor Lui Ting, Executive Director at Sun Hung Kai Real Estate Agency, said the property developer plans to invest HK$8 billion on the site.
Out of the three sites, the Yuen Long site surprisingly received the most aggressive bids. The bid was completed after 20 minutes, with a total of 81 bids from 12 bidders.
The Ngau Tam Mei plot has been sold to Cheung Kong Holdings for HK$662 million, with a psf price of HK$6,548, making it the New Territories’ fifth highest.
“It’s very rare to have a site where you can have low density development,” said Grace Woo Chia-ching, Executive Director of Cheung Kong Holdings.
Meanwhile, bidding for the Kowloon Tong plot was the most modest. The 30,247-sq-ft plot at 62 Begonia Road close to Yau Yat Chuen was snapped up by China Overseas Lands for HK$578 million, or HK$15,715 psf, which is the third highest average for Kowloon.
The price of the site was previously estimated to range between HK$406 million and HK$768 million.
This marks the developers' confidence that property curbs have not softened demand for luxury homes.
The 158,231-sq-ft site of former Lingnan University on Stubbs Road has been sold to Sun Hung Kai Properties for HK$4.49 billion. This translates to around HK$24,829 per buildable sq ft, making it the third highest selling price ever paid in the city.
With 33 bids coming from five bidders, the competitive bid was finished in only 11 minutes.
Victor Lui Ting, Executive Director at Sun Hung Kai Real Estate Agency, said the property developer plans to invest HK$8 billion on the site.
Out of the three sites, the Yuen Long site surprisingly received the most aggressive bids. The bid was completed after 20 minutes, with a total of 81 bids from 12 bidders.
The Ngau Tam Mei plot has been sold to Cheung Kong Holdings for HK$662 million, with a psf price of HK$6,548, making it the New Territories’ fifth highest.
“It’s very rare to have a site where you can have low density development,” said Grace Woo Chia-ching, Executive Director of Cheung Kong Holdings.
Meanwhile, bidding for the Kowloon Tong plot was the most modest. The 30,247-sq-ft plot at 62 Begonia Road close to Yau Yat Chuen was snapped up by China Overseas Lands for HK$578 million, or HK$15,715 psf, which is the third highest average for Kowloon.
The price of the site was previously estimated to range between HK$406 million and HK$768 million.
Mortgage rates up in Hong Kong
Hong Kong’s DBS Bank and Bank of China have increased their HIBOR-based housing loan rates for the second time in a month.
The new interbank offered rate at BOCHK, which is the SAR’s second largest mortgage provider, took effect on 13 May 2011.
The new rate, which is the highest in the industry, rose to HIBOR plus 1.3 percent to 1.7 percent capped at prime minus 2.65 percent from HIBOR plus one percent to 1.5 percent with a cap at prime minus 2.7 percent in mid-April.
Hongkong and Shanghai Banking Corp (HSBC) asking for HIBOR plus 1 percent to 1.5 percent capped at prime minus 2.8 percent, is similar with that at Standard Chartered Hong Kong.
Last week, the one-month HIBOR stood at 0.18893 percent.
A bank spokesperson said that the decision to increase the rate came after “considering the market situation and the higher capital cost”. Prior to the last change in April, BOCHK's rate stood between HIBOR plus 0.9 percent and HIBOR plus 1.2 percent.
Meanwhile, DBS Bank (Hong Kong) increased its HIBOR plus rates to between 1.3 percent and 1.7 percent, although its cap remained at prime minus 2.8 percent. A cash rebate of up to five percent was also offered by DBS.
William Leung Wing-cheung, Executive Director at Hang Seng Bank said the rate increases represent the impact of rising capital costs, with lenders marking up lower-priced loans.
Standard Chartered earlier predicted the HIBOR-based rate will test HIBOR plus 1.75 percent to two percent.
Bank of East Asia has not changed its rates after increasing it from HIBOR plus 1.3 percent to HIBOR plus 1.5 percent.
The new interbank offered rate at BOCHK, which is the SAR’s second largest mortgage provider, took effect on 13 May 2011.
The new rate, which is the highest in the industry, rose to HIBOR plus 1.3 percent to 1.7 percent capped at prime minus 2.65 percent from HIBOR plus one percent to 1.5 percent with a cap at prime minus 2.7 percent in mid-April.
Hongkong and Shanghai Banking Corp (HSBC) asking for HIBOR plus 1 percent to 1.5 percent capped at prime minus 2.8 percent, is similar with that at Standard Chartered Hong Kong.
Last week, the one-month HIBOR stood at 0.18893 percent.
A bank spokesperson said that the decision to increase the rate came after “considering the market situation and the higher capital cost”. Prior to the last change in April, BOCHK's rate stood between HIBOR plus 0.9 percent and HIBOR plus 1.2 percent.
Meanwhile, DBS Bank (Hong Kong) increased its HIBOR plus rates to between 1.3 percent and 1.7 percent, although its cap remained at prime minus 2.8 percent. A cash rebate of up to five percent was also offered by DBS.
William Leung Wing-cheung, Executive Director at Hang Seng Bank said the rate increases represent the impact of rising capital costs, with lenders marking up lower-priced loans.
Standard Chartered earlier predicted the HIBOR-based rate will test HIBOR plus 1.75 percent to two percent.
Bank of East Asia has not changed its rates after increasing it from HIBOR plus 1.3 percent to HIBOR plus 1.5 percent.
Friday, 13 May 2011
Plans unveiled for 10 Trinity Square in London
The latest owners of 10 Trinity Square in London — KOP Properties, the property investment and management subsidiary of Singapore-based KOP Group, and Reignwood Group, which jointly acquired the building — have revealed their redevelopment plans for the famous landmark building.
This joint venture (JV) partnership will convert the remarkable landmark tower into a first-class mixed-use scheme to include a luxury 120-bedroom hotel, spa, 37 private residences, restaurant options and a club with Woods Bagot’s architecture, as well as residential interiors designed by the multi-awarded David Collins Studio.
The proposal is due to be confirmed in summer 2011, with project completion set for 2014.
Located near the World Heritage site of Tower Bridge and The Swiss Re Tower, 10 Trinity Square is a Grade II listed building which provides stunning views of the River Thames and The Tower of London.
Designed by Sir Edwin Cooper, the building served as the Port of London Authority’s headquarters and officially launched in 1922.
Among the features 10 Trinity Hotel residents can enjoy are a fitness centre, swimming pool, spa and private residences 24-hour concierge. They will be provided also with complementary membership to the 10 Trinity Club and can enjoy priority privileges and reservations at Reignwood and KOP hotels, resorts and yacht cruises worldwide.
Units at the new development will be put up for sale this year.
This joint venture (JV) partnership will convert the remarkable landmark tower into a first-class mixed-use scheme to include a luxury 120-bedroom hotel, spa, 37 private residences, restaurant options and a club with Woods Bagot’s architecture, as well as residential interiors designed by the multi-awarded David Collins Studio.
The proposal is due to be confirmed in summer 2011, with project completion set for 2014.
Located near the World Heritage site of Tower Bridge and The Swiss Re Tower, 10 Trinity Square is a Grade II listed building which provides stunning views of the River Thames and The Tower of London.
Designed by Sir Edwin Cooper, the building served as the Port of London Authority’s headquarters and officially launched in 1922.
Among the features 10 Trinity Hotel residents can enjoy are a fitness centre, swimming pool, spa and private residences 24-hour concierge. They will be provided also with complementary membership to the 10 Trinity Club and can enjoy priority privileges and reservations at Reignwood and KOP hotels, resorts and yacht cruises worldwide.
Units at the new development will be put up for sale this year.
HK luxury homes draw China buyers
Wealthy mainland Chinese are acquiring luxury homes worth over HK$100 million each on The Peak and in the Southern District.
Hui Ka-yan, Chairman of Evergrande Real Estate, spent more than HK$400 million last year on a 6,000 sq ft house at 6-10 Black’s Link on The Peak, according to reports from East Week, The Standard’s sister publication.
The home was sold by New World Development for approximately HK$66,600 psf, the highest selling price for an individual home in the area.
“Two years ago, New World Development said it would put to (the) market four houses there but it suddenly said only three houses remained unsold,” said an anonymous real estate agent.
“The market did not hear about what happened to the house already sold. So we believe Hui bought the house directly from the boss of the developer,” he added.
Earlier this year, Huang Yi, Chairman of Zhong Sheng Holdings, purchased a duplex flat, Montebello at The Peak, for HK$138 million, or around HK$45,000 psf, which is considered the highest asking price for a flat on The Peak.
In 2009, Tencent Chairman Ma Huateng acquired a home at Shek O for HK$480 million. The property was sold by Cecil Chao Sze-Tsung, Chairman of Cheuk Nang Holdings.
Meanwhile, Gao Yanming, Chairman of shipping company Hosco Group, purchased a home at 11 Headland Road in Chung Hum Kok in 2010 for HK$660 million, or HK$50,000 psf.
From 2005 to 2011, Cai Suixin, Chairman of Loudong General Nice Resources, acquired 14 homes at Beverly Hills in Tai Po for HK$204 million and six houses at Regalia Bay worth HK$600 million.
Hui Ka-yan, Chairman of Evergrande Real Estate, spent more than HK$400 million last year on a 6,000 sq ft house at 6-10 Black’s Link on The Peak, according to reports from East Week, The Standard’s sister publication.
The home was sold by New World Development for approximately HK$66,600 psf, the highest selling price for an individual home in the area.
“Two years ago, New World Development said it would put to (the) market four houses there but it suddenly said only three houses remained unsold,” said an anonymous real estate agent.
“The market did not hear about what happened to the house already sold. So we believe Hui bought the house directly from the boss of the developer,” he added.
Earlier this year, Huang Yi, Chairman of Zhong Sheng Holdings, purchased a duplex flat, Montebello at The Peak, for HK$138 million, or around HK$45,000 psf, which is considered the highest asking price for a flat on The Peak.
In 2009, Tencent Chairman Ma Huateng acquired a home at Shek O for HK$480 million. The property was sold by Cecil Chao Sze-Tsung, Chairman of Cheuk Nang Holdings.
Meanwhile, Gao Yanming, Chairman of shipping company Hosco Group, purchased a home at 11 Headland Road in Chung Hum Kok in 2010 for HK$660 million, or HK$50,000 psf.
From 2005 to 2011, Cai Suixin, Chairman of Loudong General Nice Resources, acquired 14 homes at Beverly Hills in Tai Po for HK$204 million and six houses at Regalia Bay worth HK$600 million.
UK home repossessions surge 15%
A total of 9,100 UK homes were repossessed in the first quarter of 2011, an increase of 15 percent from the previous quarter, according to the Council of Mortgage Lenders (CML).
This figure is 10 percent lower compared to the same period last year and remains steady with the quarterly average of last year, the lender noted.
However, the number of homeowners lagging behind on their mortgage payments has slightly dropped since December.
CML advised that households will be financially stretched for a period.
The lender estimated that a total of 40,000 consumers will lose their homes in 2011, a rise from 36,300 last year.
At the end of 2010, repossessions were at a comparatively low level but the recent quarterly figures reveal the first quarter-on-quarter increase since the third quarter of 2009.
Although more homes were repossessed, arrears levels dropped during the same period.
At the end-March, the number of home loans with arrears equivalent to 2.5 percent or more of the outstanding balance totalled 166,900, which was 1.47 percent of all loans.
This was lower than the 170,000, or 1.5 percent, of loans in arrears at the end of December 2010 and 11 percent less than the 187,300 mortgages in arrears, or 1.65 percent of loans, from a year earlier.
CML Director General Michael Coogan believed that lenders were giving home owners the opportunity to get back on track with home loan payments, rather than repossessing houses prematurely.
“Looking ahead, the financial position of many households is likely to be stretched for some while and some will inevitably find themselves in difficulty,” Mr. Coogan said. “Lenders have a range of options to nurse borrowers through temporary problems.”
Mr. Coogan added that the mortgage market regulator had alerted lenders that being generous with borrowers lagging behind on payments could result in problems, as could repossessing houses quickly without giving home owners the chance to solve their problems.
This figure is 10 percent lower compared to the same period last year and remains steady with the quarterly average of last year, the lender noted.
However, the number of homeowners lagging behind on their mortgage payments has slightly dropped since December.
CML advised that households will be financially stretched for a period.
The lender estimated that a total of 40,000 consumers will lose their homes in 2011, a rise from 36,300 last year.
At the end of 2010, repossessions were at a comparatively low level but the recent quarterly figures reveal the first quarter-on-quarter increase since the third quarter of 2009.
Although more homes were repossessed, arrears levels dropped during the same period.
At the end-March, the number of home loans with arrears equivalent to 2.5 percent or more of the outstanding balance totalled 166,900, which was 1.47 percent of all loans.
This was lower than the 170,000, or 1.5 percent, of loans in arrears at the end of December 2010 and 11 percent less than the 187,300 mortgages in arrears, or 1.65 percent of loans, from a year earlier.
CML Director General Michael Coogan believed that lenders were giving home owners the opportunity to get back on track with home loan payments, rather than repossessing houses prematurely.
“Looking ahead, the financial position of many households is likely to be stretched for some while and some will inevitably find themselves in difficulty,” Mr. Coogan said. “Lenders have a range of options to nurse borrowers through temporary problems.”
Mr. Coogan added that the mortgage market regulator had alerted lenders that being generous with borrowers lagging behind on payments could result in problems, as could repossessing houses quickly without giving home owners the chance to solve their problems.
Thursday, 12 May 2011
Luxury apartments near London's Westminster Abbey to launch in HK
Nine luxury apartments located on Great Peter Street near Westminster Abbey will be launched in Hong Kong on 14 and 15 May 2011.
The launch, which will be held at the Conrad Hotel in Pacific Place, Admiralty, will showcase why 35 Great Peter Street is a London investment that simply should not be missed.
The nine luxury apartments comprise two-, three- and four-bedroom units, as well as a deluxe duplex penthouse with a private terrace. The development’s exterior is part of London’s rich architectural landscape and designated as a building of architectural merit, sitting alongside the Smith Square Conservation Area.
“Location is all and 35 Great Peter Street has it all. Some of London’s most famous buildings and thoroughfares are near neighbours, giving it a sense of being truly at the heart of this great city, close to the historical centres of government and monarchy,” said Darien Bradshaw, Executive Director for International Project Marketing at CB Richard Ellis (CBRE).
The property is located just walking distance from the Houses of Parliament, the Foreign Office, Parliament Square, Whitehall, Westminster Abbey and The Mall, making it an address that has the ultimate in prestige and convenience.
The launch, which will be held at the Conrad Hotel in Pacific Place, Admiralty, will showcase why 35 Great Peter Street is a London investment that simply should not be missed.
The nine luxury apartments comprise two-, three- and four-bedroom units, as well as a deluxe duplex penthouse with a private terrace. The development’s exterior is part of London’s rich architectural landscape and designated as a building of architectural merit, sitting alongside the Smith Square Conservation Area.
“Location is all and 35 Great Peter Street has it all. Some of London’s most famous buildings and thoroughfares are near neighbours, giving it a sense of being truly at the heart of this great city, close to the historical centres of government and monarchy,” said Darien Bradshaw, Executive Director for International Project Marketing at CB Richard Ellis (CBRE).
The property is located just walking distance from the Houses of Parliament, the Foreign Office, Parliament Square, Whitehall, Westminster Abbey and The Mall, making it an address that has the ultimate in prestige and convenience.
China's home sales value down 21%, says new data
The transaction value of homes sold in China dropped 21 percent in April, after the central government expanded its cooling measures to curb the risk of asset bubbles.
Based on Statistics Bureau data, China’s home sales transaction value fell to 324.9 billion yuan (S$61.6 billion) in April, from 413.6 billion yuan in March.
Johnson Hu, a Hong Kong-based property analyst at CIMB-GK Securities Research, said that “the government's measures have started to take effect. This is in line with market sentiment, even though home prices remain high.”
China started to curb its property market last year and has continually implemented cooling measures, including higher minimum down payments for second-home purchases and residential property taxes in Chongqing and Shanghai this year. Premier Wen Jiabao said recently that the country is “determined” to curb housing prices in some cities to a “reasonable” level.
According to the Statistics Bureau, values of homes sold in the country climbed 11 percent in the first four months of 2011 to 1.2 trillion yuan, while the total value of property transactions rose 13 percent to 1.4 trillion yuan from a year ago.
Sheng Laiyun, a Statistics Bureau spokesman, said that “the property measures have achieved preliminary effects.”
Meanwhile, government data showed that property investment increased 34 percent to 1.3 trillion yuan in the first four months of the year. Mr. Hu said that the country’s plan to develop 10 million affordable housing helped fuel the investment.
Based on Statistics Bureau data, China’s home sales transaction value fell to 324.9 billion yuan (S$61.6 billion) in April, from 413.6 billion yuan in March.
Johnson Hu, a Hong Kong-based property analyst at CIMB-GK Securities Research, said that “the government's measures have started to take effect. This is in line with market sentiment, even though home prices remain high.”
China started to curb its property market last year and has continually implemented cooling measures, including higher minimum down payments for second-home purchases and residential property taxes in Chongqing and Shanghai this year. Premier Wen Jiabao said recently that the country is “determined” to curb housing prices in some cities to a “reasonable” level.
According to the Statistics Bureau, values of homes sold in the country climbed 11 percent in the first four months of 2011 to 1.2 trillion yuan, while the total value of property transactions rose 13 percent to 1.4 trillion yuan from a year ago.
Sheng Laiyun, a Statistics Bureau spokesman, said that “the property measures have achieved preliminary effects.”
Meanwhile, government data showed that property investment increased 34 percent to 1.3 trillion yuan in the first four months of the year. Mr. Hu said that the country’s plan to develop 10 million affordable housing helped fuel the investment.
US mortgage fraud drops 41 percent
Reports of mortgage fraud in the US dropped in 2010 for the first time in several years, according to a recent report, which implies that either tightened measures and the state of the residential property market are making it more difficult to carry out fraud — or that fraudsters are becoming more sophisticated and going unnoticed.
Overall, the number of reported fraud incidents fell 41 percent from 2009 to 2010, according to a report released by LexisNexis Mortgage Asset Research Institute.
Nonetheless, fraud still cost the residential market over US$1.5 billion in 2010, the Treasury Department projected. The Mortgage Asset Research Institute’s report also concluded that losses are possibly much higher than the Treasury’s estimates.
“The industry is plagued with vulnerabilities within the origination process that expose lenders to risk.”
Florida, which has topped the fraud index of the Mortgage Asset Research Institute for the last five years, remains the top state for mortgage scams. The expected rate of fraud for the number of loans it originates has also tripled.
But much like the nation, Florida has witnessed a decrease in fraud by around a third since its 2008 peak.
Of the top 10 states on the list, only two — no. 6 Michigan and no. 10 Illinois — have recorded decreases. New York and California witnessed fraud increase, placing them in the second and third spot, respectively.
The most common method of fraud involves home loan applications, where borrowers fake their identity or financial condition. According to the report, such fraud fell to 39 percent in 2010, from 68 percent in 2006.
The second most common type of fraud is in the valuation or appraisal of the property itself. Known as flopping, this technique involves a real estate agent or broker valuing a property below its actual value. The broker then sells the property to the real estate agent, who would have already contacted a buyer who will acquire it at a much higher price. The lender and agent then divide the profit.
Appraisal fraud, such as flopping, has been gradually increasing and represented a third of all mortgage fraud recorded in 2010.
But generally, reported fraud has dropped, which could be attributed to the industry’s intensive efforts to reduce fraud.
“Lenders are stepping up their efforts to learn from their mistakes, identify incidents that made them vulnerable to fraud, and develop programmes that help to protect their organizations from further adverse activities,” the report said.
“But fraud is and will always be a crime of opportunity, especially in times of desperation.”
Overall, the number of reported fraud incidents fell 41 percent from 2009 to 2010, according to a report released by LexisNexis Mortgage Asset Research Institute.
Nonetheless, fraud still cost the residential market over US$1.5 billion in 2010, the Treasury Department projected. The Mortgage Asset Research Institute’s report also concluded that losses are possibly much higher than the Treasury’s estimates.
“The industry is plagued with vulnerabilities within the origination process that expose lenders to risk.”
Florida, which has topped the fraud index of the Mortgage Asset Research Institute for the last five years, remains the top state for mortgage scams. The expected rate of fraud for the number of loans it originates has also tripled.
But much like the nation, Florida has witnessed a decrease in fraud by around a third since its 2008 peak.
Of the top 10 states on the list, only two — no. 6 Michigan and no. 10 Illinois — have recorded decreases. New York and California witnessed fraud increase, placing them in the second and third spot, respectively.
The most common method of fraud involves home loan applications, where borrowers fake their identity or financial condition. According to the report, such fraud fell to 39 percent in 2010, from 68 percent in 2006.
The second most common type of fraud is in the valuation or appraisal of the property itself. Known as flopping, this technique involves a real estate agent or broker valuing a property below its actual value. The broker then sells the property to the real estate agent, who would have already contacted a buyer who will acquire it at a much higher price. The lender and agent then divide the profit.
Appraisal fraud, such as flopping, has been gradually increasing and represented a third of all mortgage fraud recorded in 2010.
But generally, reported fraud has dropped, which could be attributed to the industry’s intensive efforts to reduce fraud.
“Lenders are stepping up their efforts to learn from their mistakes, identify incidents that made them vulnerable to fraud, and develop programmes that help to protect their organizations from further adverse activities,” the report said.
“But fraud is and will always be a crime of opportunity, especially in times of desperation.”
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