How SPH move into property paid off

THE successful completion of freehold condominium development Sky@eleven is proof that Singapore Press Holdings’ (SPH) diversification strategy has paid off, and also shows that it can deliver more than just media products, said the group’s chairman, Dr Tony Tan.

The 43-storey, four-tower development in Thomson Lane made news in January 2007 when all its 273 units were sold within 30 hours of the soft launch.

“It is a testament to SPH’s growing versatility, dynamism and willingness to seek out opportunities to create shareholder value,” Dr Tan said at the completion ceremony last night.

At the time of the soft launch, Sky@eleven units achieved an average price of $975 per square foot (psf), with the priciest unit going at $1,200 psf.

According to transactions recorded in April, the average price has since appreciated to $1,330 psf, while the highest price now stands at $1,400 psf.

The properties include units that range in size from 1,851 sq ft for a three bedroom-plus study unit, to 2,820 sq ft for a four-bedroom unit. There are also eight duplex penthouses that range from 3,757 sq ft to 5,597 sq ft in size.

Sky@eleven is SPH’s maiden condo project. Developed by Times Development, a subsidiary fully owned by SPH, it is designed by DP Architects and received its temporary occupation permit last month.

Apart from Sky@eleven, SPH’s other property developments have also performed well, Dr Tan said.

“Paragon, our prime retail-and-office complex in the heart of Orchard Road, completed its $82-million renovation and facelift recently, and boasts a new facade now. It is currently enjoying a 100 per cent tenancy rate,” he said.

The recently acquired Clementi Mall, to open early next year, has also been added to SPH’s property portfolio.

The five-storey mall, located next to Clementi MRT station in Clementi Avenue 3, is a joint venture between SPH, NTUC Income and FairPrice.

SPH, which owns national broadsheets The Straits Times and Lianhe Zaobao, is now in its 26th year. It has a diversified portfolio that includes magazines, web portals, broadcasting stations, events management and outdoor advertising.

Mr Seow Choke Meng, executive director of Times Development, described residential property development as a “third leg” for SPH, after its media products and mall-management business.

“Property development is part of our core portfolio now,” he said. “We’re constantly looking out for residential sites that can deliver promising returns.”