GuocoLand’s S$3b project holds new promise for Tanjong Pagar

Property developer Guoco-Land’s latest Tanjong Pagar project (Tanjong Pagar Centre) holds new promise for the fading business district, overshadowed by the Marina Bay area’s swanky Marina Bay Financial Centre.

GuocoLand’s S$3 billion project along Peck Seah Street and Choon Guan Street will have over 500,000 sq ft of residential space and more than one million sq ft of office space. Analysts expect keen investment interest in the project once it is ready in four to five years.

“In terms of a first class office building, combined with a good hotel, combined with leisure, combined with residential – so it will be populated: People will live here and work here and be involved with all the other activities,” said Guocoland chairman Sat Pal Khattar.

World-renowned architects Skidmore, Owings & Merrill and Architect 6 will design the project, which currently does not have a name. The 78-storey project by GuocoLand, controlled by Malaysian tycoon Quek Leng Chan, will be one of the tallest buildings in the CBD.

It will also house one of the biggest apartment complexes in Tanjong Pagar, at 509,000 sq ft, second only to United Industrial Corporation’s 927,000 sq ft new development, where 60 per cent or 556,000 sq ft of space will be allocated for residential units.

Median rentals for homes in the area increased 10 per cent last year. And they look set to rise now that Tanjong Pagar is becoming a choice destination to work, live and play.

Mr Donald Han, vice chairman at property consultants Cushman & Wakefield, said the new development will have proper one-, two-, or three-bedroom penthouse units, probably of the same size as of The Sail. “Any development which is iconic in nature, which is located near an MRT station, that offers excellent views, especially on the higher floors, will be able to sell fairly well and we will expect the end pricing to exceed the S$2,000 per sq ft mark easily,” he said. If economic growth remains robust, at 4 to 6 per cent a year, analysts say occupancy for GuocoLand’s project could be between 80 and 100 per cent.

Office rents in the CBD area rose 16.5 per cent last year. Analysts say that with strong demand from financial services firms, office rents there are expected to increase further.

GuocoLand won the tender for the Tanjong Pagar site, which is also a white site, in November last year. The site sits on Tanjong Pagar MRT Station and was bought for S$1.7 billion and has a site area of 161,703 sq ft and a gross floor area of 1,697,892 sq ft.

Source : Today – 24 Feb 2011

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