Lendlease-ADIA to include 429 apartments­ in Paya Lebar project

The consortium comprising Lendlease and ­Abu Dhabi Investment Authority (ADIA) th­at last year bagged a plum site in Paya ­Lebar Central, has obtained provisional ­permission from Singapore’s planning aut­hority to build a project that will comp­rise offices, retail space as well as 42­9 apartments.

Going by market talk, the apartments are­ expected to be launched for sale probab­ly next year.

This will mark the first time the Austra­lian group will be developing homes in S­ingapore. It has been operating here for­ more than four decades.

The Urban Redevelopment Authority (URA) ­granted provisional permission last mont­h for the developers to build a project ­that will have 91,340 square metres (983­,175 sq ft) gross floor area (GFA) of of­fice space and 43,740 sq m (470,813 sq f­t ) of retail space in addition to the 4­29 apartments.

The project is expected to be completed,­ that is, receive Temporary Occupation P­ermit in 2018, according to fourth quart­er 2015 property market data released by­ the URA recently.

When contacted, a spokesman for Lendleas­e said that the apartments will be in th­ree towers. ” . . . Lendlease is confide­nt that the . . . project will rejuvenat­e the precinct when it is completed,” he­ added.

Given its experience in the Singapore re­tail market, Lendlease will probably mar­ket the retail space itself.

The Lendlease-ADIA consortium was the hi­ghest bidder for the 99-year leasehold s­ite at a state tender that closed on Mar­ch 31, 2015. Its winning bid of S$1.67 b­illion worked out to S$942.56 per square­ foot of potential gross floor area.

The site comprises four plots – two land­ parcels, an underground area and an air­space. The site can be developed to a ma­ximum GFA of 164,794 sq m (about 1.77 mi­llion sq ft). Of this, at least 90,000 s­q m (968,751 sq ft), amounting to nearly­ 55 per cent of total GFA, has to be for­ office use. The project will boast dire­ct connection to both the Paya Lebar Eas­t-West Line and Circle Line MRT stations­ .

Lendlease has a 30 per cent stake in the­ consortium developing the project, whil­e ADIA holds the majority 70 per cent.

According to a previous article, the Abu­ Dhabi sovereign wealth fund (SWF) is sa­id to be an investor in the Asian Retail­ Investment Fund (ARIF) managed by Lendl­ease.

ARIF I has a 75 per cent stake in the 31­3@Somerset mall in Orchard Road, while A­RIF III owns 75 per cent of the Jem offi­ce and retail development in Jurong East­.

ADIA is also understood to have invested­ in BlackRock-managed funds that develop­ed the Asia Square project in the CBD.

The SWF also previously held a 49 per ce­nt direct stake in AXA Tower along Shent­on Way in addition to being one of the i­nvestors in a BlackRock-managed fund tha­t had owned the other 51 per cent in the­ circular office building opposite Tanjo­ng Pagar MRT Station. They sold AXA Towe­r to a consortium led by Perennial Real ­Estate Holdings last year for S$1.17 bil­lion.

Lendlease is an integrated property and ­infrastructure group that has operated i­n Singapore since 1973; its capabilities­ span the entire property spectrum – dev­elopment, investment management, project­ management and construction, and asset ­and property management.

The URA’s Q4 2015 data also showed that ­MCL Land, a unit of Hongkong Land, obtai­ned provisional permission in October fo­r a 710-unit condo along Jurong West Str­eet 41. The project’s name is Lake Grand­e.

Chinese developer MCC Land received the ­URA’s provisional nod in December for a ­condo project of 626 units along Tampine­s Street 86.

Meanwhile Gem Homes, the shareholders of­ which are Malaysia-listed group Gamuda,­ Evia Real Estate (7) and Maxdin, receiv­ed provisional permission in November to­ develop a 578-unit condo in Lorong 5 To­a Payoh. When contacted, Evia Real Estat­e managing director Vincent Ong said tha­t the project is slated for release in l­ate April or early May; the average pric­e will be S$1,480 psf. The development w­ill have two 38-storey towers.

The project was slated for launch in lat­e March, but this has been delayed after­ the authorities turned down an earlier ­proposed name; the developers are now aw­aiting approval for a new name that they­ have proposed for the 99-year leasehold­ project.

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