S'pore's first farm resort in Lim Chu Kang to offer villas

By Cheryl Lim, Channel NewsAsia, 8 Apr 08

SINGAPORE: Lim Chu Kang looks all set for a change if the Singapore Land Authority’s plans for the first agri-tainment resort work out.

Developers of the agri-tainment farm resort hope to offer visitors a more unconventional experience when it opens its doors in August 2008.

Visitors will be able to find out how crops like corn and coffee are grown and may even get the chance to harvest their own vegetables.

In addition, the five-hectare site, which is equal to the size of six football fields, will have 21 villas and a nearby spa. And the villas will be going for up to S$200 a night.

HLH Agri International is paying S$880,000 for a 20-year lease which it admits is 'cheap'.

It plans to sub-lease 21 plots to entrepreneurs and will charge 10 per cent of their total earnings in management fees.

Dr Tan Siang Hee, CEO of HLH Agri International, said: "We're going to create the opportunity for people to have a storefront. They can be planting from somewhere else and bringing in the product. Or in another sense, they could be planting within the 700 square metres that we give them as a demonstration port."

HLH has refused to disclose other financial details.

Each operator will be given a two-year operating permit that will be renewable subject to the overall performance of the operator.

Interested operators will be able to operate rent-free and will only have to pay a minimum management fee.

Operators will need to submit a business plan specifying crop type.

Other nearby farm owners that Channel NewsAsia spoke with said they don't feel threatened by the new resort farm and expect it to help renew interest in the industry.

Developers are aiming to draw 500,000 local and foreign visitors a year with plans to increase that number to 650,000 by 2012. - CNA/vm

Farm resort in Singapore? It will be a reality soon
Emilyn Yap
Business Times 9 Apr 08;

GREENERY is all around and there is nary a tall building in sight. Gone is the buzz of heavy day-time traffic. Have a short rest in your air-conditioned villa, and take in the stretches of gardens and fruit trees that come into view. But there is no need to linger for too long, as there is much outside to indulge you in - a wellness spa, a farm produce market and even a corn plantation tour.

This may sound like a farm stay overseas, but rustic escapes like this will soon be possible in Singapore. Come September, what is hailed by the HLH Group as the country's first agri-tainment getaway D'Kranji Farm Resort will be ready to welcome its first visitors.

The five-hectare Lim Chu Kang resort, already 60 per cent complete, will house 21 villas, 21 farming plots and retail kiosks, a wellness spa, seafood restaurant, beer garden, as well as a research and development (R&D) centre for corn plantations.

D'Kranji is a $10 million project undertaken by mainboard-listed HLH Group, the former PDC Corp which in 2006 adopted its present name to reflect its shift from electronics business to agricultural business.

Its three core areas now are agricultural plantation, agri-business and property development.

The foray into agri-tainment is a reflection of HLH's restructuring efforts since 2006. The group, a commercial corn producer in Asia, is involved in the whole value chain of corn plantation, corn processing as well as the merchandising of agricultural products.

The resort is an offshoot of HLH's efforts to develop its corn plantation business. According to CEO Tan Siang Hee at the media briefing yesterday, HLH began with the idea of setting up an R&D centre in Singapore to test different varieties of corn before growing them on a larger scale. Noting that people may be interested in visiting corn plantations, the concept then developed into the one we see today.

The resort also offers entrepreneurship opportunities by providing rental-free agri-retail kiosks to those interested in farming. Kiosk operators will receive a two-year operating permit, renewable subject to overall performance, and will pay a monthly management fee to HLH in return.

The resort aims to attract 500,000 visitors a year. HLH is in talks with eight tour group operators, and also has plans to work with community centres to bring visitors to the site.

Landscaping company Nyee Phoe Group also has plans to launch kampung-style chalets in Lim Chu Kang.

On the potential competition, Mr Tan said that the key was about 'how we are going to strategise, how we are going to make our uniqueness stand out, and how we differentiate our products'. With similar players in the area, there would also be potential for Lim Chu Kang to develop as a lifestyle hub.

Shares of HLH closed trading unchanged at three cents yesterday.