Two more projects for Muis after Red House The property arm of - TopicsExpress

Two more projects for Muis after Red House The property arm of the Islamic Religious Council of Singapore (Muis) has two more projects coming up, to follow on from the ongoing redevelopment of Red House in Katong. They are part of the Wakaf Revitalisation Scheme launched by Warees earlier this year to refurbish high-potential assets in its portfolio to generate steady streams of income to be ploughed back into the community. The 10-year-old investment and property management firm looks after 155 endowment, or wakaf, properties in its portfolio, valued at $586.7 million. They were either bequeathed to Muis or are owned by family trusts that Warees helps to manage. In June, Warees launched Red House, the first project under the revitalisation scheme. It will revive the famous Katong Red House Bakery, first set up in a shophouse in 1931 and closed down in 2003. The $15 million project, to be finished in 2016, includes five other existing shophouses, 42 residential units and a heritage gallery. Next up is a project in District 10, followed by another in the city centre, said chief executive Zaini Osman in a recent interview with The Straits Times. The first upcoming project will be a very luxurious cluster development. We are at the tail end of firming up legal arrangements, he added. Signs that the property market is slowing have made the firm more cautious, he said, adding that Warees would like to launch the project by December, but will have to study market conditions. We also need to find a good messaging strategy, he said. If we are seen as being too market- driven, people will ask, Wheres the endowment value? It is certainly an unusual conundrum for a developer - having to be savvy enough to maximise the value and income streams of its assets while ensuring it balances social responsibility with being a profit-driven entity. Mr Zaini was quick to point out that Warees is not chasing the bottom line. The firm donates part of its profits to charity and reinvests most of the rest in projects such as refurbishing wakaf assets. Even before launching its revitalisation scheme, the firm had been quietly refurbishing a few wakaf assets. They include the Somerset Bencoolen, now a service apartment complex, and 11 Beach Road, an office building that houses Warees own workspace. We do need to have deep pockets so that the community sees theres an entity with the resources to save assets that belong to them, he said. In choosing which assets in its portfolio to redevelop, Warees has kept the image of the community in mind. When we decide what to redevelop next, we look at the current versus potential yield, heritage value and location, Mr Zaini said. You cant have just outside the exit of a station along the new Downtown MRT line a dilapidated building that belongs to the Muslim community if it can be rejuvenated to suit the urbanscape. A decade on from its inception, the firm is still comfortable funding projects with its own resources and has the luxury of putting investors on hold. There are a lot of external funders and private equity investors ready to come in, but we see them as potential partners later on if we think we dont have enough resources to grow. But at this point we are careful. We want to make sure our portfolio is strong before we invite funders, Mr Zaini said. Source: The Straits Times –31 October 2013