STI: S'pore property stocks 'cheap, but not hot'

April 29, 2009

S'pore property stocks 'cheap, but not hot'

By Joyce Teo 

 

STOCKS here are cheap now but there is nothing to support any aggressive buying of Singapore property firms, says asset manager Henderson Global Investors.

 

Hong Kong and mainland China are the region's best bets for now, it said.

 

At the moment, Singapore property market fundamentals just do not look as good as these alternative markets.

 

'There is an oversupply issue in Singapore and the balance sheets of developers and to some extent, the real estate investment trusts (Reits), are more stretched,' said Mr Patrick Sumner, who heads Henderson's property equities team, at a media briefing yesterday.

 

Indeed, Singapore developers and Reits are still looking to raise quite a lot of funds, said Mr Frankie Lee, Henderson's co-head of property equities (Asia).

 

'We need to see some sort of stabilisation in the banks, in manufacturing, a bit of growth in jobs before we can see confidence come back into the property market. So, stocks are cheap.. but are we having a new driver of economic growth?' asked Mr Lee.

 

Private home prices in Singapore may fall by another 15 per cent before hitting the bottom - and recovery may only come in the second half of 2010, he said.

 

Vacancies in the home and office sectors have yet to peak, he added.

 

Hong Kong and mainland China, however, 'have emerged from a bruising 2008 with some resilient production numbers since the start of the year,' said Mr Lee.

 

'We think both will continue to outperform in the long term, relative to both developed and emerging Asia property markets. We believe that the sector fundamentals are gradually improving rather than deteriorating.'

 

Asian stocks that Henderson favours include Sun Hung Kai Properties, China Overseas Land and Yanlord Land.

 

Globally, the outlook is generally not rosy. While property has outperformed general equities, the global property total return index is back where it was at the start of the new millennium, said Mr Sumner. This will be a year of rights issues, uncertainty and opportunity for property firms, he added.

STI: Making the Singapore brand great

April 29, 2009

THE ST INTERVIEW

Making the Singapore brand great

Local brands have the quality but lack emotive appeal. Marketing guru Kim Faulkner's mission is to inject some

By Michelle Tay 

 

YOU can say a lot of good things about Singapore brands: trusty, efficient, they do what the label says they'll do. But emotionally appealing? No, not in that game.

 

They seem to leave some of us a bit cold, even disdainful, despite their stellar reputations, says marketing guru Kim Faulkner, who heads the home-grown marketing and branding company Activiste.

 

It is a baffling situation but it has given Ms Faulkner her latest mission - designing a master plan to turn around that perception and get local brands wooing international consumers.

 

'At the moment, when we think of Singapore as a brand, we think clean, green, reliable and high quality,' says Ms Faulkner, 48, acting chief executive of Get Singapore Brands.

 

'What are the softer values, the more interesting things about Singapore as a brand? Commercial brands also drive perception of country brands, so what I want to do...is inject emotive appeal.'

 

Get Singapore Brands - launched last month and funded by enterprise development agency Spring Singapore and 37 companies - will promote locally designed products from home-grown companies both here and abroad.

 

The $2 million initiative also wants to market Singapore as a place known for good design and innovative retail ideas, as well as help participating retailers exchange ideas and expertise.

 

If it sounds like an awareness building campaign, that's because it is partly one.

 

'Get Singapore is about representing brands that people haven't heard of, or have heard of but didn't realise were Singapore brands. It's not about buying local,' she says.

 

'What's going to differentiate Singapore as a retail destination over its regional neighbours is going to be brands that are developed here, and that have something to offer others.'

 

The tide is slowly turning with more Singaporeans open to buying local brands, thanks partly to the ability of companies to 'get it right', observes Ms Faulkner.

 

She cites Singapore Airlines, BreadTalk, Charles & Keith and Banyan Tree as 'obvious' and 'very top of mind' examples of 'great Singapore brands' which possess integrity, authenticity, which are differentiated in the marketplace and focused in their brand promise.

 

Brands that get it right understand that 'branding isn't about pretending to be something that you're not', she says. Neither do they 'try to be all things to all men'. She considers FairPrice an example of 'a good Singapore brand that has evolved to meet changing times and lifestyles but which has remained true to its original intent'.

 

But there are several firms that believe simply having a great product makes a brand, when it does not.

 

Ms Faulkner maintains that a great brand must be four things: authentic, differentiated, relevant and resonate with the target market. Some of her favourites - Apple, Audi and Banana Republic - have achieved all these.

 

She denies that Get Singapore is aimed at 'correcting' where local brands fall short. The aim, rather, is to enhance competitiveness.

 

The initiative provides a collective showcase and marketing platform for the brands. It is more about 'strength in numbers', giving them the scale to be recognised by both local and overseas consumers.

 

She cites examples of global collective brands that have found success by banding together.

 

One is Sunkist, a citrus growers' membership cooperative comprising 6,000 members from California and Arizona, and Wines of South Africa, a non-profit industry organisation that promotes all South African wine exports. There is also Britain's Walpole initiative, which harnesses and shares the collective resources of Britain's luxury brands, and the airline network Star Alliance.

 

There are now 37 companies in the Get Singapore collective, each having paid annual participation fees of $3,000 to $10,000, depending on the company's size and revenue, which will go 'towards marketing activities' for the group.

 

She has devised a 'pretty aggressive grand master plan' for marketing the Get Singapore brand. Its first steps involve marketing brands and products at roadshows in shopping malls, a city-wide advertising campaign, the website www.getsingapore.sg and leaflets given to tourists, starting immediately.

 

Get Singapore will also organise trade missions overseas and has tied up with MasterCard to give its cardholders shopping discounts during the Great Singapore Sale, from May 29 to July 26.

 

The 'key to operationalisation', as Ms Faulkner calls it, is getting retailers to bond and to think of themselves as a community.

 

'One of my goals to have them not operate in silos. Part of being a collective brand is feeling like part of a community. Each one must contribute ideas on how to make it better.

 

'I don't want to kit it out, conceptualise it and all they do is move in their stuff.'

 

Speaking of move, Ms Faulkner is planning her own exit at the end of March next year.

 

As someone with 25 years of branding experience but no retail experience, she says 'it would be good for someone with direct retail experience' to take over her position as chief executive.

 

The Straits Times understands there are three possible candidates in the running for the job, but she declines to say more about her successor.

 

Ultimately, she maintains branding is about changing mindsets and the way people think about an industry.

 

So for Singapore brands to really take off, local consumers must first and foremost support them.

 

Thailand, she notes, has 'become such an interesting retail destination' because the locals 'really support their own'.

 

Singaporeans can learn from that and replicate it, she says, because 'the Get Singapore brand is about being cosmopolitan, confident, eclectic - all the things that Singapore already is'.

 

But why should Singaporeans be proud of Singapore brands? Aren't they just products like any other in a crowded marketplace fighting for a share of the consumer dollar?

 

'The reality of the global economy today is that you're going to have mergers and acquisitions. Brands that are valuable assets will change hands, and it is imperative that the origins and personalities of the brands stay intact.

 

'Take the case of Jaguar cars. When it was bought over by Ford, did it become an American brand? No. It's still a British brand known for its luxury. It's now owned by Tata, but does it make it an Indian brand? No.'

 

So Singapore brands are ambassadors for the country and Singaporeans, by embracing them, exemplify the nation's lifestyle and ethos.

 

She says: 'For so long, we've tried to look for an identity that had to be somehow culturally sensitive to all, but we've not succeeded down that road, because we are multicultural.

 

'We should just be what we are - cosmopolitan, eclectic and urban.'

 

michtay@sph.com.sg

 

Making 'millions' from $20k set-up

 

MS KIM Faulkner, 48, is chief executive of Activiste, a two-year-old branding and marketing company.

 

Her team of four handles brand strategy development and marketing communications strategy for companies. Her clients include the National University of Singapore and Indonesia's fifth-largest lender Bank Danamon, which is controlled by Singapore's Temasek Holdings.

 

Ms Faulkner is a literature major from Britain's Kent University. Her first job was at public relations firm Burson-Marsteller. At the age of 29, she set up her first branding services firm, Design Counsel, for less than $20,000.

 

She later sold it for 'millions' to Interbrand, where she served as managing director for 13 years before being appointed its chairman, overseeing the group's activities and strategic interests in South-east Asia and Greater China.

 

She is a board member of Spring Singapore and of the DesignSingapore Council.

 

She is married to Briton Paul Faulkner, regional finance director of planning and finance at MSIG Holdings (Asia). They have three children, aged 10, 14 and 16.

 

ON KEEPING THE GET SINGAPORE BRAND FOCUSED

 

'When we were conceptualising the brand, we decided it might become very confusing to include the food and beverage sector. This is not to say it will always be excluded, but at the moment it is. Because once you get into packaged food, where does it lead? Chilli sauce?'

 

ON HER ALL-TIME FAVOURITE BRAND

 

'Apple. It's one of those brands that are youthful but allow you to grow old with them. When you use them, you always feel like you're on the cutting edge. They promise you creativity and empowerment - and that's what you get.'

 

ON WHAT DIFFERENTIATES THE SINGAPORE BRAND

 

'Singaporeans say Singapore brands are not distinctive. But if Singapore brands go overseas, we're distinctive by the very fact that our brands are eclectic.'

BTO: Allgreen Q1 revenue dips but profit jumps 67.5%

Business Times - 29 Apr 2009

Allgreen Q1 revenue dips but profit jumps 67.5%

By KALPANA RASHIWALA

 

ALLGREEN Properties has posted a 67.5 per cent increase in first quarter net profit to $29.2 million from the same year-ago period, despite lower turnover.

 

The improved bottomline was due chiefly to an increase in other operating income (largely because of translation gains on foreign currency loans and deposits) and a decrease in distribution and selling expenses, as showflat expenses were lower amidst the subdued property market this year.

 

The Singapore-listed property unit of Malaysian tycoon Robert Kuok said revenue for Q1 ended March 31, 2009, slipped 8.1 per cent year on year to $80.7 million chiefly due to lower revenue from development properties and hotel operations.

 

'In the development properties segment, lower revenue was a result of lower progress sales recognition. In the hotel segment, lower revenue was a result of lower room rates and occupancy at Traders Hotel as compared with the corresponding period in 2008,' Allgreen said.

 

The developer said that it expects to remain profitable for 2009, barring unforeseen circumstances and excluding fair value adjustment. Earnings will be underpinned from past sales of residential units and steady income from investment properties.

 

Allgreen owns Great World City at Kim Seng Road, comprising offices, shop space and serviced residences; Tanglin Mall, Tanglin Place and a majority stake in Traders Hotel near Orchard Road.

 

It currently has some 400-plus Singapore residential units in the market, BT understands. These include terrace homes in various phases of its Pavilion Park landed estate in Bukit Batok and units in the completed Balestier condo D'Lotus (priced at about $800 psf) and Viva condo along Thomson Road. All three projects are freehold.

 

The developer is expected to receive Temporary Occupation Permit later this year for the 97-unit Cairnhill Residences, which is fully sold. Allgreen has sold the units at an average price of about $1,700 psf, and about 40 per cent of buyers - predominantly with Singapore addresses - bought on deferred payment scheme, BT understands.

 

Over in the Bukit Timah area, Allgreen is developing Cascadia, where it sold 162 units to private equity property fund management group MGPA at a median price of $1,527 psf in 2007, according to an earlier report.

 

In its results statement last night, Allgreen said that gearing improved slightly to 0.43 time (with net borrowings of $1.116 billion) as at end-March 2009, from 0.45 time gearing (and net borrowings of $1.138 billion as at end-Dec 2008).

 

Earnings per share rose from 1.10 cents in Q1 2008 to 1.84 cents in Q1 2009. Net asset value per share rose from $1.41 as at Dec 31, 2008 to $1.44 as at March 31, 2009. On the stockmarket yesterday, the counter ended 2.5 cents lower at 48 cents.

BTO: Suntec Reit secures $825m refinancing

Business Times - 29 Apr 2009

Suntec Reit secures $825m refinancing

Interest margin at below 3.75%; Q1 distributable income up 23% at $46.4m

By UMA SHANKARI

 

SUNTEC Reit has secured an $825 million loan facility. And with this fresh loan, the office and retail trust has no further refinancing needs until 2011.

 

The new facility will be used to refinance Suntec Reit's existing debt under its medium-term notes programme and $700 million of commercial mortgage backed securities maturing this year.

 

It comprises a $725 million three-year loan and a $100 million seven-year fixed-rate loan from a panel of seven banks. The blended all-in interest margin works out to less than 3.75 per cent, Suntec Reit said yesterday.

 

The loan facility will be secured by Suntec City Mall and parts of the trust's portfolio in Suntec City Office Towers. The loans were granted by the three local banks - DBS Bank, OCBC Bank and United Overseas Bank - and four foreign banks.

 

The new facility means that Suntec Reit has refinanced $1.7 billion of borrowings in the past two years, said Yeo See Kiat, chief executive of the trust's manager. Suntec Reit refinanced $870 million of loans in 2008.

 

'Amid the tight liquidity in this global economic and financial crisis, this club loan of $825 million clearly demonstrates Suntec Reit's strong credit standing,' said Mr Yeo, adding that the trust is now in a good position to meet the challenges ahead.

 

Yesterday, Suntec Reit also reported that distributable income for Q1 2009 rose 23 per cent to $46.4 million, from $37.6 million a year ago, on higher office and retail rents from its properties.

 

On the back of this, distribution per unit (DPU) rose 15.9 per cent to 2.918 cents from 2.5185 cents in 2008.

 

Net property income for the quarter rose 15 per cent to $49.2 million, from $42.6 million a year ago.

 

Gross office revenue for the three months ended March 31 rose 32 per cent to $30.2 million. At end-March, committed overall occupancy for the office portfolio stood at 97.4 per cent, with renewal and replacement leases at Suntec City secured at an average of close to $10 per square foot per month (psf pm) for the quarter.

 

Likewise, committed retail passing rents remained strong. The committed retail passing rent at Suntec City Mall stood at $11.05 psf pm, while rents at Park Mall and Chijmes were $7.63 psf pm and $10.76 psf pm. The committed overall occupancy for the retail portfolio was 98.8 per cent.

 

Suntec Reit owns Suntec City Mall and office units in Suntec Towers One, Two and Three and the whole of Suntec Towers Four and Five. Its property portfolio also comprises Park Mall, Chijmes and a one-third interest in One Raffles Quay.

 

The trust's units lost three cents, or 4.3 per cent, to close at 66 cents yesterday.

BTO: Developers meet valuers in search for common ground

Business Times - 29 Apr 2009

Developers meet valuers in search for common ground

Finger pointed at banks as some buyers struggle to raise enough loans

By KALPANA RASHIWALA

 

(SINGAPORE) Developers last week held a meeting with valuers amid recent complaints in some quarters that conservative valuations have derailed some home sale deals as potential buyers could not secure the required loan quantum from banks.

 

BT understands that the valuers disagreed with the developers that their valuations had been too conservative, and that it was the banks that were just not lending.

 

'Generally, if there are transactions, we'll match (with valuations). It's the banks that are more cautious about lending to certain profiles of borrowers like investors, especially if they are foreigners,' a valuer told BT.

 

The valuers also raised issues that they had been facing in recent months, such as a dearth of comparable transactions, and explained the methods that they use to arrive at valuations in such situations.

 

'We explained that some banks require valuers to look at three comparable transactions, and how we generally do not take into account outlier transactions that may perhaps reflect 'depressed' prices,' another valuer said.

 

Sources say that the meeting was amicable, drawing more than 20 valuers and heads of property consulting groups and the executive committee members of the Real Estate Developers Association of Singapore led by its president, Simon Cheong.

 

When contacted, a Redas spokesman said: 'We wanted to better understand issues that valuers may have in their day-to-day valuation and what else the profession may need from developers to enable them to give (as) updated and relevant (a) valuation as possible.

 

'The discussions were general in nature and discrepancies in valuations in some instances were highlighted and analysed. Valuers shared with us some of the constraints they are facing such as the lack of or insufficient comparable sales data and other issues.

 

'The session was fruitful as it helped us understand one another better and we agreed to look into areas where communication and interaction could be improved upon.'

 

A property consultant told BT that he found it odd that the same banks that were willing to give a 75 per cent or 80 per cent loan on a high-end residential unit when it was priced at $2,000 psf (thus assuming an exposure for about $1,500 to $1,600 psf) are now reluctant to give even 50 or 60 per cent loan when the property is going for a much lower price of $1,200 psf (which works out to $600-720 psf exposure for the bank).

 

'It's particularly difficult for foreign buyers, even PRs in some instances, to get loans for investment properties. Banks are more willing to lend to Singaporeans buying residential properties for owner occupation.

 

'Some of the bigger banks should take the lead and be more proactive in lending to property buyers, not just for entry-level but also luxury homes, given that spot prices have already come off about 40 per cent.'

 

Agreeing, another valuer said: 'We provide the valuations. It's up to the banks whether they want to lend, and how much. It's a commercial decision for them.'

 

Giving his take on the challenges facing the profession, a senior valuer said: 'We have to be as level headed as possible and (assign) a sensible value. Valuers play a very important role in the financial system and economy, as we're marking everybody's asset values.'

 

This was the first time Redas has met valuers as a group, at least in recent years, and this follows its maiden meeting in November with analysts in stockbroking research houses covering the sector.

 

Redas also holds regular dialogues with government agencies such as Urban Redevelopment Authority, and Building and Construction Authority. 'Such dialogues provide learning opportunities for Redas and promote better understanding across the industry leading to a healthy property market,' the association's spokesman added.

STI: Beyond the vineyard

April 28, 2009

insider tips Bordeaux

Beyond the vineyard

Go for the wine but do not miss the city's great art and architecture

By deepika shetty 

 

Bordeaux is synonymous with wine but offers a lot more than that, says Mr Jean-Daniel Terrassin, general manager of the Bordeaux Tourist Office in the city.

 

Listed as a Unesco World Heritage Site for its centuries-old architecture, it has many tourist attractions and is less than three hours away from Paris by high-speed train.

 

Mr Terrassin, a 61-year-old native of Bordeaux, gives his tips on getting the most out of the city.

 

A LESSON IN HISTORY

 

Start at the splendid Place de la Bourse. Also known as Place Royale, this is a perfect example of late 18th-century Bordeaux architecture. There are archways and slate roofs, with an impressive fountain in the centre. The setting is even more magnificent when it is lit up at night. There is a superb view of the Garonne River's right bank from this square.

 

SQUARES ARE HIP

 

From Saint-Pierre to Sainte Croix, the squares of Old Bordeaux are also good examples of 18th- and early 19th-century architecture.

 

In the quarter of Saint-Michel, you get to see the flamboyant gothic-style Basilica, dedicated to the archangel. This, says Mr Terrassin, is the most lively and colourful quarter in the city. It is very cosmopolitan, with a colourful market on Saturday mornings and a flea market on Sundays.

 

Saint-Pierre, which is also commonly called Old Bordeaux, has numerous narrow, charming streets and has morphed into the city's hippest district.

 

The Grands Hommes, also called The Triangle, is full of elegant townhouses and luxury boutiques.

 

Chartrons is the former heart of the Bordeaux wine trade and the city's port activity. The Quais market there livens up the quays on Sunday mornings and the Bordeaux residents come here shortly before noon to enjoy oysters with white wine, followed by a relaxed walk along the Garonne River.

 

'If you are here during the weekend, make sure you join in this ritual of ours too,' says Mr Terrassin.

 

HEART FOR ART

 

From prehistoric to modern art, and from the history of the French resistance movement to the decorative arts, the museums of Bordeaux feature collections of outstanding quality.

 

At the Fine Arts Museum, you can see the works of masters such as Pablo Picasso, while at CAPC Modern Art Museum, Andy Warhol features. The architecture of these museum buildings adds a distinctive touch to the art on display.

 

FESTIVAL TOWN

 

There are several festivals throughout the year. The next few ones this year are the Bordeaux River Festival from June 20 to 21, Bordeaux Wine Festival from June 24 to 27, and Bordeaux Cultural Festival from Oct 9 to 18.

 

SHOPPING

 

All the chic boutiques are in the Bordeaux Triangle in the famous Rue Sainte Catherine. This street is over a kilometre long.

 

In Fashion Avenue in the Regent Grand Hotel, you can find all the top luxury brands.

 

The Quai des Marques, on the other hand, has nearly 50 shops offering discounted quality merchandise.

 

'Shopping in Bordeaux should also include a visit to the Chartrons, which is the antique dealers' district, and the ethnic boutiques in Saint-Michel,' says Mr Terrassin.

 

FOOD

 

Excellent cuisine can be found among some 1,000 restaurants in the city.

 

La Tupina (6 rue Porte de la Monnaie, 33000 Bordeaux) is famous for its typical south-western cuisine in a lovely and welcoming atmosphere. Try the duck.

 

La Boite a Huitres (36 Cours du Chapeau Rouge, 33000 Bordeaux) is the place to go for oysters, which Bordeaux is also famous for.

 

Le Pressoir d'Argent (2-5 Place de la Comedie, 33000 Bordeaux) is the top gastronomic restaurant in the new Regent Grand Hotel, right in front of the beautiful Opera House.

 

FINE WINE

 

Bordeaux is the largest and oldest fine vineyard in the world, covering some 115,000ha. Vineyards can be found as soon as one leaves the city.

 

The Medoc, one of the world's most famous vineyard regions, invites you to follow the Route des Grands Crus to discover numerous prestigious chateaux. Saint-Emilion is an architectural gem with its mediaeval village and vineyard classified by Unesco.

 

SUNDOWNERS

 

The best of Bordeaux's vineyards can be tasted in the many wine bars and restaurants in town.

 

The Bar a Vin, in particular, is highly recommended because it is located at the famous Bordeaux Wine School and offers a great selection of local wines by the glass, served with tapas.

 

deepikas@sph.com.sg

 

For details, go to www.bordeaux-tourisme.com or www.franceguide.com/sg

STI: Tales of a luxury retailer

April 27, 2009

the monday interview with Frank Benjamin

Tales of a luxury retailer

From an impoverished WWII childhood, Frank Benjamin has built up a luxury retailing empire

By michelle tay 

 

The first thing you notice when you walk into Mr Frank Benjamin's 28th-floor apartment is the panoramic view of Singapore's premier shopping strip, Orchard Road, from the balcony.

 

It is one befitting the man who founded one of Singapore's oldest retail companies, FJ Benjamin.

 

Asked if he spends his free time looking out at the malls, planning which one to conquer next, and he flashes a cheeky grin before saying: 'No, I conquered them all before I moved here.'

 

Considering FJ Benjamin turns 50 this year and has made its fame and fortune by bringing international names such as Lanvin, Gucci, Fendi, Guess?, Gap and Banana Republic to South-east Asia, it seems a fair statement.

 

At 74, Mr Benjamin has weathered a war, three economic recessions and nearly lost control of his company at one point.

 

Yet, as you notice the Paul Valere paintings in his living room at Ardmore Park, he tells you about the times when his house had 'hardly any furniture in it' and when a property tycoon once called him 'a crazy guy' for buying an apartment he could scarcely afford.

 

It was 1965 when Mr Benjamin, then married two years, struggling to turn profits at a six-year-old firm and living in a rented pad, bought a 6,000 sq ft apartment in Watten Estate worth $60,000.

 

Starting with a $500 deposit, he paid regular instalments as the building went up until he had forked out $15,000.

 

He recalls: 'One day I visited the site and there was the building's owner, Ng Teng Fong, who said to me: 'You crazy guy. You can't even pay your bills, what do you want to buy a house for? I'll take it back and give you a profit of $3,000'.

 

'Now, if he was offering me a profit, the value of the property must have gone up. So I told him not to worry, I'd pay him. I went home, asked my wife to get a mortgage as I wasn't earning any income and we got our first home that way.'

 

He chuckles with self-satisfaction and his wife, Mavis, interjects lovingly: 'You had the vision, Frank.'

 

But he retorts: 'No, I never had the vision. I took a chance and went with it.'

 

He seems to attribute much of his success to luck and serendipity.

 

It was an unlikely friendship, he says, that led him onto the fashion scene selling 'millions of dollars worth' of Australian-branded Amco jeans in 1970.

 

Before that, he was trading office stationery and photographic equipment, and distributing some fashion brands such as Fritz jewellery and Glomesh handbags.

 

The story goes that he met the Amco brand representative out of courtesy, without any intention of doing business as he deemed the jeans market too saturated. He drove the agent to the airport after the meeting. It was over a few beers there that they struck up 'a terrific friendship', as well as the deal.

 

He says: 'That became a very, very big business for us, in Singapore, Malaysia and Indonesia. Sales gave us about $100,000 every three months.'

 

With the profits, he opened Singapore's first luxury boutique for French label Lanvin at the Hyatt Hotel in 1975.

 

'Rent was $6.50 per sq ft, very high then. Salaries were about $400 to $500 with commission and sales were about $400,000 per month. It was a hugely profitable venture,' he says.

 

Three years later, he won the rights to distribute Italian luxury label Gucci in the region. It became the group's cash cow until 2000, when the label bought back its businesses from agents worldwide.

 

He went on to score big names such as Italian luxury label Fendi in 1988, Australian linen line Sheridan in 1990 and American jeans giant Guess? in 1991.

 

Today, FJ Benjamin also distributes American casualwear chain Gap, French luxury label Celine, and watch brands such as Girard-Perregaux. It also holds a 22.2 per cent stake in megaclub complex St James Power Station.

 

Last year, the group turned over $342.4 million and made $14.8 million.

 

Asked when he thought he had 'arrived', Benjamin says with mock dramatic flourish: 'When I paid my first income tax - $13.'

 

But his humility is genuine, says friend and business partner Dennis Foo.

 

'Frank is a fair and honourable businessman. His company is all about brands and perceptions of high society, but he's really very down to earth,' says Mr Foo, who co-owns St James with FJ Benjamin, Metro Holdings boss Jopie Ong and the BreadTalk group.

 

Tumultuous turns

 

Mr Benjamin insists he 'did not grow up privileged'. His grandparents, born in Iraq of Jewish descent, came to Singapore at the turn of the century. His father's family traded textiles while his mother hailed from generations of opticians.

 

Born on Dec 29, 1934, Frank Judah Benjamin was the third of six children. His three brothers, Edward, Julian and Nash, and two sisters, Louise and Joyce, are either opticians or retailers today.

 

Home was in Adis Road until World War II broke out. The family was shipped off by the British government to Mumbai, while his father was interned by the Japanese here for three years.

 

Then six years old, he recalls he was 'hungry 24 hours a day'. His greatest worry was how to pass Urdu in school.

 

When the war ended, the family reunited but his father had lost everything. He attended St Andrew's School till he was 18 and had to work to bring money home.

 

His first job was to grind lenses at FJ Isaacs, his uncle's optometry practice at Collyer Quay. It lasted 11 months as 'the monotony nearly killed' him.

 

Next was a 2½-year stint as a salesman at Getz Bros, an American company that sold paper, boards and tobacco filters. He rose to become top salesman.

 

This gave him the confidence to quit. 'I wanted to be my own boss.'

 

In 1959, he founded FJB 'without any capital' and became a wholesaler. He sold novelties, from straw hats and cutlery to paper and boards, 'to make a few per cent commission to survive'.

 

He ploughed whatever he made back into the company. His American School teacher wife, whom he married in 1963, was the sole breadwinner during the company's first 10 years.

 

His wife says: 'I thought it was great that he had a goal. Everything he did was with the family in mind, and how to better ourselves.'

 

By 1966, he had accumulated $10,000. He set off around the world searching for new agencies, copying their telephone numbers from public advertisements and making cold calls to score deals.

 

From America, he got lingerie lines. In Japan, he found photographic equipment and paper suppliers. London gave him swimwear, fishnet stockings and Ever -eady packet milk.

 

He sold Eveready here for $1.25 a pack until Fraser & Neave launched its Magnolia packet milk at 50 cents each, pricing him out.

 

In 1972, FJ Benjamin made its first million. In 1996, its profit surpassed $10 million and the company debuted on the Singapore Exchange.

 

But the Asian financial crisis struck shortly after. The company closed shops in Hong Kong, Taiwan, Australia and New Zealand to cut its losses.

 

Things worsened when Gucci and Fendi bought their businesses back. Calling it the 'biggest nightmare' of his career, Mr Benjamin says: 'Together with the crisis, it cut out all my cash flow. I had devaluating properties, mortgages to pay and no cash. Is that a nightmare or not? It was the perfect storm.'

 

The company made a loss of $5.9 million in the half year ended Dec 31, 2000. Billionaire investor Peter Lim turned out to be its white knight, pumping in $15 million for 20 per cent of its shares. The company was back in the black in the six months to December 2001, but not before losing $40.91 million in the financial year before that.

 

Mr Benjamin says: 'After that I vowed that we would never, never put ourselves in that position again. I would always have cash reserves in the bank, just for any eventuality.'

 

He adds that the group is now 'very stable' and 'well-positioned to ride out this recession', which he believes will last for another two to three years.

 

Coming full circle

 

Today, the group's retail and distribution network spans eight territories and 180 retail stores across Asia. His youngest brother Nash, 59, took over as group chief executive in 2006.

 

As group chairman and executive director, Mr Benjamin is no longer 'operationally hands-on' but he still goes to the office every day to give guidance on corporate direction - and just to keep busy.

 

He says: 'I can't bear to stay home. And after 50 years, it's become a habit that is difficult to break.'

 

He does not take kindly to the idea of retirement and is hard-pressed to name hobbies other than travelling. He is however a Manchester United fan - the company opened a themed boutique and cafe for the football club here in 2000 - and a philanthropist, donating to charities in Singapore and Israel, and is a fixture on the local society scene.

 

Free time on weekends is devoted to family, which includes three grandchildren.

 

As for how he sees the retailer developing over the next 50 years, he says it must diversify. This involves developing its own brands, which may not necessarily be fashion lines, but 'home wares, electronic wares or other consumer businesses that have synergy with retail'.

 

He quips: 'In these changing times, you cannot stand still or you will get thrown off the moving bull.'

 

For now, the company has its first in-house brand, a mid-price men's and women's wear line called Raoul. From a single store in Millenia Walk in 2002, Raoul is now selling in Dubai, London and Paris and plans to break into the northeast American market next.

 

After chatting for three hours, the sun starts to set, casting a pink glow over the mall horizon. Mr Benjamin offers you tea and asks if there is anything else you need. But you wonder if there is anything he needs instead.

 

Apparently not.

 

'The two things that I love in my life are my family and my business, and I'm very happy I have my family in my business and that the two are integrated so well,' he says.

 

Continuing the legacy

 

The first family member to join Mr Frank Benjamin at FJ Benjamin was his youngest brother Nash.

 

Fresh out of high school in the late 1960s, Nash was responsible for sourcing brands for the company and is now, at 59, the group chief executive.

 

In 1972, Mr Benjamin roped in his wife Mavis to oversee store planning and design - a role she keeps today.

 

Benjamin's three sons are also involved in the business.

 

Douglas, 44, is chief executive of FJ Benjamin Singapore. Sam, 37, is group director of timepieces, and Ben, 31, is a regional brand manager.

 

Douglas' wife Odile, 37, is divisional director of licensing.

 

Mr Benjamin's daughter Rachael, 30, does not work for the company and is based in New York.

 

He says he never expected his children to join the business, but it was perhaps his children who had the expectation they would do so after they graduated from university.

 

He says: 'I didn't encourage them because I thought they should do whatever they wanted to do. But what they wanted was to join the company.

 

'They must have felt very much a part of all the discussions Nash and I had at home.'

 

Brushing off suggestions of nepotism at the company, he retorts: 'How many people do you think we have working with us regionally? We have 2,000 employees and only seven family members.

 

'We have CEOs in Malaysia, Indonesia, Hong Kong and Thailand and senior managers who are not related to us, but make decisions with us.'

 

He also denies his children have it easy. 'Nobody thinks that working in their father's shop means they can have a free ride.

 

'They are all more hardworking than the hardest working people in the company. And they're certainly not being paid extra.'

 

my life so far

 

'I told them: 'I have no experience at all, but I'm extremely interested to learn. Please give me an opportunity and I'll learn very fast. I'll take exactly the same salary I'm taking now'. Actually it was $150 per month, but I told him $200. So I got $50 more'

On how he got his first sales job at the age of 20. Claiming to have no experience, it was the first display of his business acumen

 

'Every time they asked me for something, I'd say no, even though I'd give it to them eventually. I remember the company sold Gucci shoes for teens and they wanted them. I said: 'Pfft, definitely not''

On raising his children to not expect things too easily

 

'Young people now wear three-quarter-length pants. Have you seen those? I hate them. For women, it's nice, it shows a bit of leg. But for men, it's disgusting. My sons wear them and I ask 'What's the matter with you?''

On the casual style that has crept into fashion over the years

STI: Cheaper off the beaten path

April 26, 2009

Cheaper off the beaten path

By Teo Cheng Wee 

 

I love travelling, but I hate buying plane tickets.

 

Take this phone call I made to a travel agent last year, to check on tickets to Eastern Europe.

 

'Hi, I would like to get tickets to Sofia,' I said.

 

'Your name is Sophia?' the woman on the other line asked.

 

I cleared my throat to make sure that I spoke in a much lower tone.

 

'No, no, Sofia. I want to go to Sofia. In Bulgaria,' I repeated.

 

'You are so what?' she barked.

 

I so want to vomit blood, that's what. But that is just one of the perils of visiting countries off the beaten path.

 

Much has been said about how the Singaporean traveller is getting increasingly sophisticated. More people champion taking the road less travelled.

 

So my friends should be patting me on the back for taking a trip to Iran now right? (As you're reading this, I should be somewhere in Shiraz, in the country's south.)

 

Instead, when they find out that my latest destination was not some deadly job assignment that my Foreign Desk boss forced on me, many of them scoffed.

 

'Why?' delivered in a high-pitched, bewildered voice, is the typical reaction. This is usually followed by the very thoughtful 'You're not scared of getting bombed ah?'

 

Even my mother, who, over the last decade, has gotten too tired to scold her son for his newest holiday spot, voiced a mild objection to my latest trip.

 

One day after I announced my suicidal voyage, she told me coldly: 'Oi, insurance doesn't cover the two I's,' referring to Iraq and Iran. She usually buys travel insurance for me through her agent.

 

It's funny how many places in the world people think get bombed.

 

Good thing they're wrong, or I would have died violent deaths in Myanmar, Pakistan, North Korea, Syria or Sri Lanka - all countries that I visited in recent years.

 

Some of my friends probably think that I'm keen to prove a point by choosing these destinations. You know, act like an adventure seeker. Show that I live life on the edge.

 

Actually, I'm embarrassed to tell them where I'm going sometimes, because I know I'm anything but gung-ho.

 

Wow, going to Iran? You're very brave. (No, I'm not).

 

I don't bungee jump. I don't skydive. I've never even worked in telemarketing before. Why would I seek out other dangerous activities when I'm on holiday?

 

The truth is, my main reason for visiting these countries often boils down to something so simple it's almost mundane: cost.

 

Developed countries require developed earning power, so when I first started backpacking, I tended to waltz around South-east Asia instead. The countries are nearby, cheap and endlessly fascinating.

 

It was great, but there are only so many countries in the region.

 

When I ran out of places to go to, I had to look further - and I often ended up scouting for places that, well, were supposed to get bombed.

 

Several of these destinations are crippled not by any real, recent terrorist attacks or mass rioting, but by a dodgy past or a bad reputation that refuses to be shed.

 

Day-to-day, their streets are arguably safer, devoid of the pickpockets and scam artists that ply their trade in many developed cities.

 

'When people hear 'Bombing in Sri Lanka', they don't think 'Oh, danger in small part of Sri Lanka.' They think the entire country is under attack,' a local there told me when I visited three years ago.

 

All the better for me - you get great value going to places that other people don't want to go to.

 

Ten days in Sri Lanka cost me slightly over $1,000. A fortnight in Myanmar cost about the same. Two weeks in Pakistan and Xinjiang, China, set me back less than $2,500.

 

In all these places, I travelled comfortably with hired drivers. I never had to stay in any grubby hotels. And I could still set aside money for a little shopping.

 

It's not that I've never been to more expensive places such as Europe, Australia or the United States, or that I don't enjoy their sights. Indeed, these places can also be done on a budget.

 

But I prefer not to spend too much time scrutinising food prices on the menu. Or fighting for a good bed in a youth hostel (I'm too old for that).

 

Maybe I'll travel more fancily when I move up another income bracket.

 

It may not be so bad. At least, travel agents won't be calling me strange names anymore.

 

chengwee@sph.com.sg

STI: Music to my years

April 26, 2009

Music to my years

Being suckered into buying re-issued memorabilia may sound irrational but it makes me feel like a boy again

By Ignatius Low 

 

On Tuesday night, I went out and did something that always gives me tremendous pleasure.

 

I went to HMV and bought a box set. One of the last remaining three, to be precise, of the new Sounds Of The Universe album by British pop group Depeche Mode.

 

Spying it about 20m away as I was approaching the entrance of the store, I broke into a run and grabbed the box with both hands - startling an innocent bystander who was looking at it.

 

I then triumphantly carried it around the store like some kind of trophy, checking all the other copies to make sure mine was the most pristine.

 

When I got home, I opened the heavy black box carefully to examine its contents - three CDs, one DVD, one poster, five postcards, two hard-cover books of glossy photographs, one 'panoramic' photo insert, two enamel collar badges and one certificate of authencity.

 

Fifteen minutes later, when there were no more endorphins to be had from sniffing and running my fingers over the 'specially inked heavy cardboard paper', I put everything back carefully, closed the box and put it on my display shelf.

 

I will probably open it maybe twice, maybe thrice more in my lifetime.

 

The pleasure of a limited edition box set is partly in the beauty it possesses, but it is much more in possessing its beauty.

 

As I sat back to admire it one more time in the half light of my Ikea bookshelf lamp, I couldn't help but pity the guy I had seen at HMV who was also contemplating buying it.

 

I saw him turn the box over and over in his hands with a look of longing in his eyes.

 

Alas, he made the mistake of discussing the $99.95 purchase with someone who was obviously his wife or girlfriend. She had stern words with him and he meekly put it back.

 

Chump.

 

The only rule worth remembering for any serious collector of music, film, toys or comics is never discuss anything with a woman. Least of all expensive box sets.

 

There is one very simple reason for this.

 

Guys, you see, are true collectors.

 

Girls, on the other hand, just cannot be bothered.

 

A female colleague of mine is a typical case in point. She loves Taiwanese singer Jay Chou so much that when she visited Taipei recently, she even made a special trip to his old high school to take photographs.

 

But does she have all his CDs? No. Some of her albums are even pirated versions.

 

I was aghast.

 

'How do you sleep at night with all these gaps in your collection?' I asked her.

 

Very well, she answered. The bottom line is that she just does not feel a need to complete her collection.

 

'Why do you have to?' she challenged. 'So what if you have a complete collection?'

 

Now, that is a question which just does not compute, as far as I'm concerned.

 

When I put it to some friends and colleagues recently, most of them put it down to a sort of 'acquisition instinct' that seems to exist more in men.

 

'Life is a series of conquests for most guys,' said one male friend. 'We see it and if we like it, we acquire it; and then, er... we just move on to the next thing.'

 

Another friend thinks it's all a silly game of childish one-upsmanship.

 

'It's not just enough for a guy to have a Rolex anymore,' she complained.

 

'He must have this particular edition released in that particular year, limited to so many pieces.

 

'Knowing about it already makes them proud, but they must also buy it because other guys don't have it and it's so much more expensive.'

 

'My boyfriend has three sets of every Transformer toy he buys,' said another exasperated female colleague, describing typical irrational collector behaviour.

 

'One is to display in Robot Mode, another is to display in Car Mode and the third is for storage in the cupboard, still in its plastic wrapping.'

 

Women, on the other hand, somehow seem to be a lot more rooted and practical, especially after they grow out of their 'schoolgirl' phase.

 

They'll buy something because they like it and want to use it, and so much the better if it turns out to be special or rare.

 

But they rarely let themselves become obsessed with it. There's never a strong desire to 'buy the whole set' or 'eBay the special edition' because, well, there are just so many more sensible things to do.

 

It's also a lot lighter on the wallet, which is something I've become painfully aware of over the years.

 

Box sets and re-issues are the weapons of choice in a music industry that constantly makes suckers of ageing sentimentalists like me.

 

It's strange because people tend to think of men as being rational and logical, and accuse women of making emotional decisions.

 

But, in this case, the stereotypes seem to be reversed.

 

For me, being a collector of records and CDs has been nothing less than therapy for the soul. And to be honest, I've loved being exploited.

 

I've loved starving through recess time in school just to save up for those German 12-inch singles in the 1980s that were 'platte in farbigem vinyl' (meaning they were in coloured vinyl).

 

I don't ever get tired of telling the romantic story of how my 17-year search for British singer David Sylvian's exquisite 1989 Weatherbox ended unexpectedly in a tiny used records shop in Hong Kong's Mongkok area.

 

And I don't ever regret having bought some albums five times over now - some at the same time, packaged in alternate covers (I love you, Tori).

 

For, you see, the magic of the Depeche Mode box set really isn't in its nifty packaging or its scarcity.

 

It's in that special something that brings me back through time to the wide-eyed boy I was in 1986.

 

Maybe I have always been that boy, even now in 2009. But it's most certainly the boy that I always want to be.

 

ignatius@sph.com.sg

STI: Soy sauce in chocolate

April 26, 2009

Soy sauce in chocolate

Chef Oriol Balaguer has a knack for making you take the salty with the sweet

By Fiona Low 

 

G rowing up in Calafell, Spain, pastry and dessert chef Oriol Balaguer lived every child's dream. With a father who was a pastry chef, he had his fill of sweet treats all day long.

 

'I had what most would call the perfect childhood,' he says. 'I was born wrapped in the smell of chocolate. I became impregnated with it.'

 

It is little wonder then that the 37-year-old is one of the most celebrated dessert chefs in the industry today.

 

After spending seven years as head pastry chef at the renowned El Bulli restaurant in Catalonia, the Spaniard started his first confectionary studio in Barcelona in 2002. There, he develops two unique pastry and confectionery collections every year.

 

Famed for his unusual confectionery creations, Balaguer has been wowing dessert lovers with strangely shaped chocolates, including some moulded to resemble golf balls. He is also known for his use of unconventional ingredients such as soy sauce and wasabi in his chocolates.

 

His creations were presented at mezza9, Grand Hyatt Singapore, from last Tuesday to yesterday as part of the World Gourmet Summit.

 

The entrepreneurial chef currently has four establishments under his belt, including two chocolate boutiques in Spain and one in Tokyo, in addition to the studio in Barcelona. On his decision to break into the Asian market, he says: 'Japan is at the forefront of haute cuisine and my creations are well-received by the Japanese.'

 

The father of two was named Best Pastry Chef in Spain last year by the Royal Spanish Academy of Gastronomy, an organisation that regulates the players in the Spanish food industry.

 

'Desserts are an indispensable part of any meal, and to be able to create that final sensation and memory is the best part of my profession,' he says.'

 

What is your philosophy when it comes to food?

 

To create an unexpected sensory experience through my desserts.

 

What is the most unusual dessert you have ever created?

 

I have two very unusual creations: orange sorbet and olive oil, with jellied sweet wine; and tomato soup with basil and parma ice cream.

 

They are both desserts which combine sweet and salty flavours, and can either be an appetiser or a dessert.

 

What is your biggest challenge when handling so many establishments?

 

Being a pastry chef is my dream, my passion and my hobby. As such, I see more opportunities than challenges in my work. But I suppose the most difficult thing would be balancing family time with my work commitments.

 

Do you ever get tired of working with chocolates and desserts?

 

No, sweets are my work and my passion.

 

What is your favourite ingredient to work with?

 

Chocolate, of course. It is the most enjoyable and versatile product to work with.

 

What is your favourite dessert?

 

Bread with Spanish chocolate and olive oil. My mother used to make it for me every day after school.

 

What is your ultimate comfort food?

 

Spanish food, especially jamon, which is Spanish cured ham, with Catalan tomato bread.

 

Where do you get inspiration from?

 

Inspiration can be found everywhere - from a memory, a song, an image - as in the case of my creation, Sydney (below), which was inspired by the Sydney Opera House. It has crunchy yoghurt cookie with Tahitian vanilla mousse and white chocolate cream.

 

What is your signature creation?

 

My seven-texture chocolate. The Culinary Institute of America says that in one spoonful, you get 'frozen chocolate, chocolate in its liquid state, a light, airy mousse, a slip-though-your-teeth gelee, a ganache, a cookie with some crackle and the snap-at-a-bite sheets of tempered chocolate that encases the other elements'.

 

WHAT WOULD YOUR LAST MEAL BE?

 

Jamon with Catalan tomato bread, chocolate and champagne. It was the first meal that I had with my wife Marta, and I would like that to be my last as well, and with her.