Southeast Asia’s largest property developer CapitaLand has submitted the highest bid of S$968.99 million for a vast “white site” property in the Jurong Lake district.
The Urban Redevelopment Authority (URA) closed the tender for the site, after receiving five bids in total.
The top bid also translates to about S$1,012 per square foot per plot ratio.
The next highest bid of S$917 million came from the joint-venture between United Engineers and Singapore Press Holdings.
Analysts said they expect the 1.8-hectare site to be turned into a vibrant commercial hub that will rival the one in Tampines.
The “white site”, the second to be put up for sale by the URA, gives developers the flexibility to change the mix of use or the quantum of each use stipulated in the conditions of tender, without having to pay a differential premium.
The sale site at Boon Lay Way is ideal for sizeable mixed-use development with a potential gross floor area of about 88,980 square meters.
CapitaLand’s offer is approximately double the S$510 million trigger bid, according to Li Hiaw Ho, executive director at CBRE Research.
The bid was launched through JG Trustee and JG2 Trustee, a joint venture between CapitaMalls Asia, which has a 50 per cent stake, and HSBC Trust Services (30 per cent) and CapitaLand (20 per cent).
If successful, the property would be near CapitaLand’s IMM Building and its upcoming JCube.
CBRE estimates an average monthly rent of S$15 per square foot (psf) and S$6 psf for the retail and office space respectively.
“It is likely that a pure commercial development with a high proportion of retail element will be developed on this 1.8 ha parcel,” Mr Li said.
A successful award of the property would hasten the development of Jurong East as a vibrant commercial hub, he added.
“Given the sizeable amount of retail pipeline supply from the neighbouring Lend Lease’s and JCube projects as well as existing retail amenities in this area, it would offer residents/workers a retail experience rivalling that of Tampines in the east,” Mr Li said.
The other bidders for the site were the partnership of JL Retail Management and JL Office Management, as well as a consortium composed of the Far East Civil Engineering, OPH Marymount, Sekisui House and China Construction (South Pacific) Development Co.
Lowest bidder Aquamarine Development and FC Commercial Trustee, meanwhile, has put its offer price at S$639.88 million.
Source : Channel NewsAsia – 25 May 2011
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