Published 26 May 2011
By Lois Calderon
South-east Asia’s largest property developer CapitaLand has submitted the highest bid of $968.99 million for a vast “white site” in the Jurong Lake district. The top bid also translates to about S$1,012 psf per plot ratio.
The Urban Redevelopment Authority (URA) has closed the tender for the site after receiving a total of five bids.
The next highest bid of S$917 million came from a joint-venture between United Engineers and Singapore Press Holdings.
Analysts say they expect the 1.8-hectare site to be turned into a vibrant commercial hub that will rival that 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 sq m.
CapitaLand’s offer is approximately double the S$510-million trigger bid, according to Mr 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, HSBC Trust Services (30 per cent) and CapitaLand (20 per cent).
If successful, the property would be near CapitaLand’s IMM Building and its coming JCube. CBRE estimates an average monthly rent of S$15 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 hectare parcel,” said Mr Li.
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 and workers a retail experience rivalling that of Tampines in the east,” said Mr Li.
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.
Lowest bidder Aquamarine Development and FC Commercial Trustee, meanwhile, has put its buying price at S$639.88 million.
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