Black & white financial district

THE cluster of 16 black-and-white bungalows in Buona Vista was once home to British troops stationed in colonial Singapore. But the rustic area, called Nepal Hill, may soon turn into the country’s newest financial district.

JTC Corporation – the agency developing and marketing Nepal Hill – said in a statement yesterday that it is in talks with investment managers about the site.

‘Nepal Hill is one of the heritage areas within one-north,’ it said. ‘It is also an alternative location for investment managers which is envisioned to strengthen Singapore’s value proposition as a premier asset management centre in Asia.’

Bloomberg News reported yesterday that Singapore is planning to create its own hedge-fund capital modelled after Greenwich, a town in the United States with a high concentration of hedge funds.

Hedge funds are large privately-run investment funds that have increasingly dominated the global investment scene in recent years.

Bloomberg said the Monetary Authority of Singapore and JTC Corp had courted fund managers by inviting them to visit Nepal Hill at a networking event in January.

The site is part of one-north, JTC Corp’s 200 ha innovation and research hub, which includes science and technology research centre Fusionopolis and biomedical hub Biopolis.

JTC Corp said two years ago that the bungalows – commonly referred to as black-and-whites due to their white-washed walls and black frames – were being refurbished for ‘adaptive use’.

But the rare and lush enclave, just a 14-minute train-ride from Raffles Place and across the road from trendy dining spots in Rochester Park, could offer hedge funds and other high-end financial service providers an alternative to concrete skyscrapers downtown.

With Asia leading the global economic recovery, Singapore continues to be an attractive location for firms looking to expand in the region.

The proposed increase in regulation by Western authorities, coupled with tax and regulatory incentives here make it more appealing for hedge funds to operate in the Lion City.

Details are still sketchy as far as rental rates and how the site will be further developed are concerned, but the response from hedge funds have been mixed so far.

Aisling Analytics’ Michael Coleman told Bloomberg his firm will look at Nepal Hill as a potential location when its lease at Suntec City is up for renewal. ‘I’ve visited and think it’s a very interesting development and a great alternative to a traditional office,’ said the hedge fund managing director.

‘You’re surrounded by greenery, have your own garden to enjoy and the area is rapidly developing.’

However, Man Investments’ executive director Timothy Peach, who has also visited the site, feels that Nepal Hill would not work for his company, which is based at One George Street. ‘Almost all of our clients are based in the CBD, and we have to be close to them,’ said Mr Peach, who lives in a black-and-white off Tanglin Road.

‘It’s a nice little idea but definitely not suitable for us because we’re one of the largest hedge fund companies in the world employing some 1,500 people globally.’

Source : Straits Times – 6 Mar 2010