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KAJIMA Overseas Asia, which has about $1 billion property investments in Singapore through stakes in the Millenia Singapore development and The Regent Singapore hotel, has clinched its first residential development site here through the en bloc sale of Balmoral View.

Project target: Kajima is looking for developments with an all-in investment cost of 'over a couple of hundred million Singapore dollars' per project, says Mr Hashimoto

The Asia (ex-Japan) arm of Japan's Kajima Corporation is also looking to expand its presence in the Singapore property market in the residential, office and retail sectors, Kajima Overseas Asia Pte Ltd vice-managing director Masao Hashimoto said in an interview.

Kajima teamed up with United Engineers (UE) to buy Balmoral View, located at Nos. 9-37 Balmoral Crescent, for $52 million or $733 per square foot of potential gross floor area inclusive of an estimated $7.9 million development charge. The 51,080-sq-ft freehold site is zoned for residential use with a 1.6 plot ratio and a 12-storey maximum height.

Kajima and UE could redevelop the site into a new condo with about 40 units with an average size of 2,000 sq ft each.

Mr Hashimoto estimates the breakeven cost for the UE-Kajima joint venture will be about $1,000 psf. The plan is to launch the project in the middle of next year.

"This, together with our in-house design arm, makes us a unique player in the Singapore property market providing a one-stop property development solution' - Kajima Overseas Asia Pte Ltd vice MD Masao Hashimot

'Leveraging on our international network to introduce new and chic ideas to the exclusive Balmoral residential enclave, we believe that this niche boutique residential development will be well received by potential buyers,' Mr Hashimoto said.

He describes UE as 'an old friend'. Kajima Overseas Asia was the main contractor for UE Square in the River Valley area.

UE group managing director and CEO Jackson Yap hopes the collaboration for Balmoral View will augur more joint projects. Mr Hashimoto echoed the sentiment.

In addition, Kajima is open to partnering other parties for projects in Singapore so long as they share Kajima's corporate aim of doing quality developments. Kajima is looking for developments with an all-in investment, including land cost, of 'over a couple of hundred million Singapore dollars' per project, Mr Hashimoto said.

Kajima Overseas Asia is involved in construction, property development and providing architectural and engineering services. 'This, together with our in-house design arm, makes us a unique player in the Singapore property market, providing a one-stop property development solution,' Mr Hashimoto observed.

The group's recent construction jobs in Singapore include the St Regis Residences and St Regis Hotel, the refurbishment of Clarke Quay and construction of Newton Suites.

Kajima Overseas Asia's Singapore office is its South-east Asia headquarters. Worldwide, Kajima's property portfolio stood at about US$5 billion as at the end of last year.

In Singapore, it has a 30 per cent stake in Millenia Singapore and a 25 per cent interest in The Regent Singapore hotel.

Kajima Overseas Asia also owns 70 per cent of Senayan Square in Jakarta. It also has a half stake in two Hong Kong properties - Allied Kajima Building and the 512-room Novotel Century Hong Kong - as well as a 645-room hotel in the Philippines boasting views of Manila Bay. In Thailand, the group has a controlling interest in Ramaland Building, an office and hotel complex.

Mr Hashimoto says Kajima also has a site in Phuket which it will begin developing soon into a resort, and it plans to develop additional office and mall space on some vacant land at the Senayan Square site in Jakarta. It is also looking for development sites in Hong Kong.