(Apr 8): Sentosa Development Corp (SDC) is going all out to attract visitors to Sentosa. On March 27, URA launched its Draft Master Plan 2019 for the Greater Southern Waterfront. Last year, the government hinted at redeveloping Pulau Brani and Sentosa as part of the Greater Southern Waterfront. And, Kwek Leng Beng, executive chairman of City Developments (CDL), has his own views on what could make Sentosa an exciting place for a property investor.
These plans — to be implemented over a five- to 10-year period — will probably come too late for investors in CDL’s first Profit Participation Security (PPS1). Still, shareholders of companies that have properties in the vicinity, such as Mapletree Commercial Trust, Frasers Commercial Trust, Frasers Property, CDL and Ho Bee Land, could benefit over the longer term. In particular, MCT, which owns VivoCity and Mapletree Business City phase 1, is likely to experience an uplift in the valuation of its properties over the longer term.
Last year, SDC began preparing the Sentosa 2030 Master Plan, which includes enhancing leisure experiences and improving transport connectivity. For instance, since Oct 1, 2018, SDC has either waived or lowered island admission fees for Singapore residents. Cyclists and personal mobility device users can also enter Sentosa for free. In addition, entry fees via the Sentosa Express are either halved or waived for selected TransitLink concession cardholders. Visitors can also ride on SBS bus 123 at no extra charge. These changes to island admission charges are currently temporary and will last for two years. In addition, drive-in rates via the Sentosa Gateway have been reduced to as low as $2 during certain periods.
