A day after the Hong Leong Group put in a bid for a residential site in a consortium which included a Japanese partner, CapitaLand said yesterday that it will partner Mitsubishi Estate Asia (MEA), a wholly-owned subsidiary of Mitsubishi Estate (MEC), to jointly develop a 600-unit condominium in Bishan Central.
With a track record of developing quality residential projects in Japan, MEC is one of Japan’s largest and leading real estate companies.
It develops and owns more than 30 prime office buildings in Marunouchi, Tokyo’s premium central business district, including the Marunouchi Park Building which features cutting-edge office space and superior specifications.
The MEA will take a 25 per cent equity stake in the Bishan condominium project through a shareholders’ agreement, while CapitaLand Residential Singapore, a unit of CapitaLand, will hold the remaining 75 per cent equity stake in the project.
CapitaLand will be the lead development manager for the project, responsible for the full spectrum of sales and marketing, product design and development, and project management.
CapitaLand had acquired the residential site in Bishan Central for S$550.1 million through a government land sales tender in February this year.
Located in central Singapore, the 129,137 sq ft site has an estimated gross floor area of about 632,770 sq ft.
Mr Wong Heang Fine, CEO of CapitaLand Residential Singapore, said: “Design and development works are in progress and we target to launch the homes in the first half of 2012.”
On Wednesday, three Hong Leong group of companies including TID which is a joint venture between Mitsui Fudosan, Japan’s largest listed developer and Hong Leong Holdings, put in the highest bid for a residential site along Bartley Road and Lorong How Sun.
The top bid of S$413.27 million or S$621 psf/plot ratio is said to translate to a breakeven cost of S$1,000 psf-S$1,050 psf.
Source : Today – 1 Apr 2011