reporter2
05-03-13, 17:06
http://www.businesstimes.com.sg/archive/tuesday/specials/property/expiring-leases-cause-worry-childcare-centres-20130228
Published February 28, 2013
Expiring leases cause worry to childcare centres
Tenants were told in Nov 2011 that no extensions beyond Dec 31, 2013: SLA
By ong chor hao
THE leases for three notable childcare centres along Halifax Road are expiring at the end of this year, putting the heat on them to find new premises that meet their requirements in an already-tight market.
Even if Halifax Montessori Childcare (HMC) and branches of Pat's Schoolhouse and Chiltern House find alternative premises, the higher rents they will probably have to pay could push them to raise their fees.
A Singapore Land Authority (SLA) spokesman told The Business Times that the tenancies for all properties along the road expire on Dec 31; tenants at No 1, 3 and 5 Halifax Road will definitely have to move to make way for roadworks.
For tenancies unaffected by the works, the SLA is working with the Urban Redevelopment Authority (URA) on the available tenure of the land. This tenure generally refers to the length of time left on a plot of land before development takes place.
An SLA spokesman said the tenants were informed in November 2011 - more than a year ago - that no further extensions can be granted beyond Dec 31.
Chiltern House and HMC have confirmed that they are moving out; Pat's Schoolhouse could not be reached for comment.
All three hope to avoid the fate of St James' Church Kindergarten on Harding Road in the Dempsey area: This kindergarten has said it may close down when its lease expires next year. High rentals have foreclosed its finding an alternative site.
The three Halifax schools face a similar difficulty, principally because of their space requirements.
Chiltern House, for example, is looking out for a landed property with a garden, said Fiona Walker, managing director and principal of schools at JG Group, which runs Chiltern House. "This is not as easy to find as years before," she said.
Yeo Hwee Cheng, communications director at HMC, said it also needs a property with outdoor space.
Other criteria cited by the childcare centres include cooking facilities, accessibility, available parking and individual classrooms with noise barriers.
Ms Yeo said HMC will try to keep fees at current rates for its existing students - if it can keep the rental increase at its new premises within 10 per cent. Its fees are $750 per child per month for its half-day programmes and $1,300 per child per month for full-day programmes.
At Chiltern House, school fees are $1,100 a month. Ms Walker said this may go up next year to cover a general increase in costs, not because it is moving out of Halifax Road. "We have not confirmed any increase as yet, but we'll try to keep fee increases to not more than 10 to 12 per cent."
The Land Use plan report released by the Ministry of National Development has promised another 20,000 childcare places by 2017 in areas with families with young children. These centres will be near residential areas, transport nodes and work places.
But these figures may be scant relief to those in the present.
Ms Walker said she is aware that the rent at the new place could be considerably higher, unlike those on Halifax Road, which she said were "reasonable".
"There is a shortage of suitable premises for childcare and the demand is very high. This is challenging, as it means the cost of running a pre-school is ever increasing," she said.
Ms Yeo from HMC said, however, that parents' decisions may not hinge on fees alone: "Parents tend to compare the centre's pedagogy and philosophy, location and convenience to them, as well as the child-teacher ratio and teachers' qualifications and attitude within a price range, when they choose a school for their children."
Published February 28, 2013
Expiring leases cause worry to childcare centres
Tenants were told in Nov 2011 that no extensions beyond Dec 31, 2013: SLA
By ong chor hao
THE leases for three notable childcare centres along Halifax Road are expiring at the end of this year, putting the heat on them to find new premises that meet their requirements in an already-tight market.
Even if Halifax Montessori Childcare (HMC) and branches of Pat's Schoolhouse and Chiltern House find alternative premises, the higher rents they will probably have to pay could push them to raise their fees.
A Singapore Land Authority (SLA) spokesman told The Business Times that the tenancies for all properties along the road expire on Dec 31; tenants at No 1, 3 and 5 Halifax Road will definitely have to move to make way for roadworks.
For tenancies unaffected by the works, the SLA is working with the Urban Redevelopment Authority (URA) on the available tenure of the land. This tenure generally refers to the length of time left on a plot of land before development takes place.
An SLA spokesman said the tenants were informed in November 2011 - more than a year ago - that no further extensions can be granted beyond Dec 31.
Chiltern House and HMC have confirmed that they are moving out; Pat's Schoolhouse could not be reached for comment.
All three hope to avoid the fate of St James' Church Kindergarten on Harding Road in the Dempsey area: This kindergarten has said it may close down when its lease expires next year. High rentals have foreclosed its finding an alternative site.
The three Halifax schools face a similar difficulty, principally because of their space requirements.
Chiltern House, for example, is looking out for a landed property with a garden, said Fiona Walker, managing director and principal of schools at JG Group, which runs Chiltern House. "This is not as easy to find as years before," she said.
Yeo Hwee Cheng, communications director at HMC, said it also needs a property with outdoor space.
Other criteria cited by the childcare centres include cooking facilities, accessibility, available parking and individual classrooms with noise barriers.
Ms Yeo said HMC will try to keep fees at current rates for its existing students - if it can keep the rental increase at its new premises within 10 per cent. Its fees are $750 per child per month for its half-day programmes and $1,300 per child per month for full-day programmes.
At Chiltern House, school fees are $1,100 a month. Ms Walker said this may go up next year to cover a general increase in costs, not because it is moving out of Halifax Road. "We have not confirmed any increase as yet, but we'll try to keep fee increases to not more than 10 to 12 per cent."
The Land Use plan report released by the Ministry of National Development has promised another 20,000 childcare places by 2017 in areas with families with young children. These centres will be near residential areas, transport nodes and work places.
But these figures may be scant relief to those in the present.
Ms Walker said she is aware that the rent at the new place could be considerably higher, unlike those on Halifax Road, which she said were "reasonable".
"There is a shortage of suitable premises for childcare and the demand is very high. This is challenging, as it means the cost of running a pre-school is ever increasing," she said.
Ms Yeo from HMC said, however, that parents' decisions may not hinge on fees alone: "Parents tend to compare the centre's pedagogy and philosophy, location and convenience to them, as well as the child-teacher ratio and teachers' qualifications and attitude within a price range, when they choose a school for their children."