Singapore-listed developer GuocoLand has won the tender for a “white” site located above Tanjong Pagar MRT Station, offering the highest bid of $1.708 billion or $1,006 psf ppr among the six bidders.
GuocoLand, owned by Malaysian tycoon Quek Leng Chan, plans to develop the tallest residences in Singapore, with up to 78 storeys, in a $3 billion mixed development project.
The company is required to set aside at least 60 percent of the maximum 1.7 million sq ft of gross floor area (GFA) to offices and 10 percent for hotel use under rules set by the URA.
With a maximum height of 280 metres above sea level, the proposed development will join UOB Plaza, Republic Plaza and OUB Centre in Raffles Place as the tallest buildings in Singapore, said Trina Loh, managing director of GuocoLand Singapore.
“Within the Tanjong Pagar area, it will be the tallest project and we’ll also offer the tallest residences in the whole of Singapore,” added Mrs. Loh.
The group intends to build two towers, possibly with a mix of uses, with offices, hotel and apartments and ground-floor retail space. “What makes this site very exciting is that it can be a truly, fully-integrated development above the MRT Station, plus the height of the project.”
GuocoLand’s bid was 1.8 percent or nearly $180 million higher than the second highest bid of $1.53 billion or $900 psf ppr offered by a partnership comprising Hongkong Land, Keppel Land and Cheung Kong Holdings.
The third highest bid at $1.43 billion or $844 psf ppr came from Frasers Centrepoint, which collaborated with Far East Organization and Japan’s Sekisui House. Other bidders included CapitaLand group, Malaysia’s IOI Properties Berhad and Overseas Union Enterprise.
GuocoLand’s bid was beyond market expectations as property consultants surveyed in July projected bids of only up to $1.4 billion.
However, Donald Han, vice-chairman of Cushman & Wakefield Singapore, said GuocoLand’s bid was “still workable”.
“Singapore Grade A office rents have been recovering nicely and investors’ appetite in completed office buildings has also returned. GuocoLand may sell the Tanjong Pagar project’s office portion after completion,” he said.
Source : PropertyGuru – 18 Nov 2010