Tong Eng Group's roots, heritage and milestones
Through the sheer determination and great resilience of its founding fathers, Singapore has become one of the world's most dynamic and cosmopolitan cities - a shining example of urban life. The Tong Eng Group (Tong Eng) is privileged to have witnessed and contributed to Singapore's growth.
Through the sheer determination and great resilience of its founding fathers, Singapore has become one of the world's most dynamic and cosmopolitan cities - a shining example of urban life. The Tong Eng Group (Tong Eng) is privileged to have witnessed and contributed to Singapore's growth.
In the 1940s, Teo Thye Chor and his younger brother, Teo Thye Hong, migrated from the Hui An district of Fujian, China, to Singapore in search of a brighter future. Overcoming early challenges, the brothers started a business after the second world war. They formed Tong Eng Brothers, which engaged in trading electrolytic tinplates used in the production of cans and bottle caps.
Responding to the call for post-war rebuilding in the 1950s, the brothers had anticipated a surge in demand for accommodation and decided to diversify into property development. A true visionary,
Teo Thye Chor saw the potential of the undeveloped precinct of the Paya Lebar district and bought land in the area. Tong Eng went on to develop the land into the first industrial estate in that vicinity.
The brothers continued to acquire more greenfield land in the city's suburbs such as Changi, Upper Serangoon Road, Yio Chu Kang and Pasir Panjang - amassing more than 40 hectares of freehold land.
Tong Eng developed some of these lands into houses for lease to British forces who were in Singapore at that time. Notable projects in that era included Changi Grove, West Sea Garden in Pasir Panjang, Tong Kong Gardens in Upper Paya Lebar and Tong Eng Heights, which is now known as Changi Heights.
Tapping Tong Eng's tin can business dealings with major oil refining companies such as Shell, Esso and Mobil, the brothers displayed their business acumen by selling land to these oil majors for their use as petrol stations. These land parcels were carved out from tracts that Tong Eng had previously acquired. In doing this, Tong Eng found a novel way to offset most of the land costs.
In 1968, Teo Thye Chor's eldest son Teo Tong Wah, together with his uncle Teo Thye Hong, took over the company, continued to develop the company's land bank and pursued the legacy of land banking that its founders started. Tong Wah prioritised the acquisition of many pre-war rent control shophouses adjoining Tong Eng's own three units at Cecil Street in the heart of Singapore's central business district (CBD). He then combined them to build Tong Eng Building, a 26-storey office building where the company's headquarters is located.
Over the years, the group continued to develop real estate across different sectors comprising landed housing, condominiums, apartments, offices and retail. Some of these projects are Greenbank Park, Green Meadows, Trendale Tower, Stratton Park, Belgravia Park, Serenade Garden, Kew Cottages, Treasure Place, Eminent Plaza, Serangoon Plaza and Poshgrove East, to name a few.
Tong Eng's business philosophy
The family-owned business has been able to sustain a successful real estate business for 60 years. Despite boom and bust property cycles, the group has managed to emerge from each cycle better than the last. Just as Singapore accumulated large reserves with low debt in growing the economy, Tong Eng's enduring success lies in its prudence in not over-leveraging and careful financial planning. The group also believes in holding a mix of investment and development properties in its portfolio.
"Investment properties give a steady rental income and cash flow. During periods of property downturn, cash flow generated from investment properties help to cushion the impact of a slowdown of sales of development properties," says group managing director Teo Tong Lim, who has been with Tong Eng for 39 years.
This strategy has enabled the group to weather the down-cycles. Moreover, its success also lies in establishing a reputation for delivering quality products.
"With each project, we pay careful attention to details. Through creative spatial planning, we deliver projects of enduring value, blending form and functionality. Our purchasers are assured that they own a piece of real estate that is well-designed and aesthetically outstanding," Teo Tong Lim says.
By embracing new design concepts and construction technologies, pursuing a meticulous selection process for building materials and stringent project management, the group delivers a high standard of construction quality and finishes in every successful project.
Furthermore, the group's ability to respond to market trends and demand patterns allows it to stay ahead of the competition.
Growth of Tong Eng
The group has grown from a single outfit to a conglomerate, comprising subsidiaries, associates, related entities and joint venture companies with third parties. These entities undertake many of the projects either jointly or independently, and separately from Tong Eng.
One of its continuing projects, Three Balmoral, a joint venture undertaken by an associate company of Tong Eng and a local prominent family, is located at the heart of the city. A stone's throw away from Orchard Road, Three Balmoral is a 12-storey building with 40 exclusive units along the high-end residential enclave of Balmoral Road in the prime District 10 locale. Moreover, it is located in the epicentre of prestigious private schools, country clubs, hotels and world-class medical facilities.
Three Balmoral integrates natural elements with cutting-edge design. The striking single-tower block blends effortlessly into the urban environment. All apartment units are arranged in a linear fashion, allowing residents to enjoy panoramic unobstructed views of the resplendent greenery of Goodwood Hill and the dynamic cityscape of Orchard Road.
Each apartment is accessed from a private lift lobby to provide exclusivity and privacy to residents. Imported marble flooring, joinery and high-quality wares and fittings and appliances from Kohler, Miele and De Dietrich add a touch of luxury.
Goodwood Grand, another joint venture project with two local prominent business partners, is also nestled along Balmoral Road. Goodwood Grand consists of 65 residences in a stunning tower and eight thoughtfully designed strata bungalows.
The 12-storey tower sits on an elevated environmental deck, ensuring all apartments savour clear and pristine views of Goodwood Hill.
Apartments are intricately designed with a premium selection of appliances from Miele and De Dietrich and sanitary ware and fittings from prestigious brands such as Villeroy & Boch and Grohe. Each strata bungalow features five levels of living spaces, a private pool and adjoining outdoor terrace, a private lift, two basement private parking lots and a private roof terrace.
To fully showcase the distinct selling points of Three Balmoral and Goodwood Grand, Tong Eng developed an interactive three-dimensional visualisation tool. The tool allows purchasers to see actual 360-degree views of the development skyline from any floor even before it is built to help them choose the unit that suits them. A visual walkthrough also enables purchasers to have a feel of the spatial planning, layout and finishes of the apartment.
Future challenges in Singapore's real estate market
Tong Eng mainly develops freehold land. It is becoming more challenging to buy vacant freehold land for land banking due to tight supply and also the high cost of such land.
Hence, the company turned to and bought freehold residential land through the collective purchase of strata units, also termed en-bloc purchase, to replenish its land supply. Some of its completed projects such as Treasure Place, Prosper Gardens, Balcon East and Wembly Residences, and ongoing projects such as Tropika East and Goodwood Grand, were built on land purchased en bloc.
Another source of freehold land for the group is from existing, fully owned, investment commercial buildings such as Eminent Plaza and Serangoon Plaza. After being held for investment for more than 30 years, these two buildings are ready for redevelopment into brand-new commercial buildings.
"The two buildings have come full circle: they have served their useful economic life and are ready for a second round of redevelopment and a new lease on life," Teo Tong Lim says.
The former Eminent Plaza, owned by a related company of the group, is being redeveloped into a 16-storey commercial building of shops, food and beverage outlets and offices to be renamed ARC 380. It is located minutes away from the CBD and Marina Bay financial district, the new downtown and is a mere three-minute walk from the upcoming Bendemeer MRT station.
"The location is on the fringe of the CBD and literally the gateway to the city. It is ideal for medium- and large-sized companies that do not want to pay CBD rentals but are still requiring proximity to the main financial district or looking for a trendy locale on the CBD fringe," Teo Tong Lim says.
The building is elegantly designed, curved like an arc and clad in an impressive light green curtain wall façade, double-glazed to reduce thermal and acoustic transmission. The expansive five-metre floor-to-floor height on each office floor offers panoramic views while allowing for extra storage space and a feeling of grandeur in the office units.
ARC 380 scores a first in having communal cantilevered landscaped sky terraces on all office floors to provide a working venue for office occupants to take respite from work.
While the company has sold a few floors of offices, it is retaining the bulk of the office floors for long-term investment holding, believing in the quality of this commercial development.
ARC 380's architectural design and efficient ideal work environment have been recognised by the international community, being awarded the prestigious Asia Pacific Property Awards 2015-16 for the best commercial high-rise development in Singapore. The project is slated for completion in early 2017.
The other building to be redeveloped, Serangoon Plaza, is located along Serangoon Road. The redevelopment plans are for an integrated development comprising retail, office and medical suites, and the group will bring this project to the market in the first quarter of next year. Tong Eng believes this project to be a game changer in the already rejuvenated and vibrant Serangoon Road precinct.
Beyond Singapore
With its extensive experience in Singapore, Tong Eng plans to continue with its investment holding and developing activities in real estate in Singapore while at the same time bringing its expertise outside Singapore.
The group is mindful of delivering good design in these new overseas ventures while serving the ever-changing needs of their people. It eyes mature markets in Asia and has identified Australia, particularly the main cities of Melbourne and Sydney, as launch pads for its first ventures abroad.
Earlier this year, it made its first foray into Australia, purchasing a site in the Melbourne CBD for the development of a residential and commercial building. Centrally located, the site is near landmarks such as the Melbourne Central Station, Royal Melbourne Institute of Technology and the Queen Victoria Market.
The group works with local Australian consultants to gain further insight and understanding of the market. Tong Eng aims to integrate and apply its Singapore design experience in a foreign market.
Future of Tong Eng
Believing in real estate as the synergy of science and art, the group takes pride in consistently delivering excellent standards of design and quality in its projects.
Combining its core management team with 60 years of experience in the industry, Tong Eng has sharpened its core competencies in the areas of planning, construction, project management, asset management, facilities management and sales and marketing.
As a result, projects such as ARC 380, Goodwood Grand, Belgravia Villas and Poets Villas have clinched several awards for design excellence.
Tong Eng is still active in real estate investment and development in Singapore. Its projects under development have an estimated gross development value of S$2 billion (HK$11.4 billion). The group is constantly seeking investment and development opportunities in Singapore and will continue to explore abroad with the intent of entering stable markets that afford attractive yields and growth prospects, such as Australia and London.
"We are still confident in the long-term prospects of Singapore. We bring a lot of experience and know-how and will continue sourcing for investment and development opportunities while developing our land bank," Teo Tong Lim says.
Today, the family business continues into its third generation. With the support of its shareholders, the zest of the third-generation members, its long heritage and proven track record, Tong Eng and its group of companies look poised to grow further, in tandem with the steady growth of Singapore.