URA launches sites for tender

The Urban Redevelopment Authority (URA) has on Thursday placed two sites for sale by tender.

The first plot is a hotel site at Rangoon Road / Farrer Park Station Road which was made available for sale through the Reserve List system last November.

With a land area of about 0.3 hectare, the hotel site is expected to generate a gross floor area of about 13,004 square metres.

URA said a developer has committed to table a bid of at least S$56,500,000 for the 99-year leasehold site.

Under the Reserve List system, a site will only be put up for tender if the developer’s minimum bid price is acceptable to the government.

Nicholas Mak, executive director of Research & Consultancy Department at SLP International Property Consultants, said: “This site could be developed into a hotel that could cater to the medical tourists and their family members as it is very near to the upcoming hotel and medical centre called Connexion. It could potentially yield 320 rooms.”

However, Mr Mak added the site’s close proximity to the Farrer Park MRT Station may pose challenges to the construction of the hotel, leading to higher construction cost.

“Therefore, the land price is estimated to be about $764 to $836 psf ppr ($107 million to $117 million). The tender could attract a healthy level of interest and could draw about 5 to 9 bidders”, Mr Mak said.

The tender for the hotel site will close at 12pm on April 17, 2012.

Separately, the URA launched the tender for an industrial site at Sims Drive / Aljunied Road.

This is the one of the 16 industrial sites to be released for sale under the Confirmed List of the 1st half 2012 Industrial Government Land Sales Programme.

The site spans 0.63 hectare and is to be developed for Business 1 uses with a maximum permissible gross plot ratio of
2.5 and a lease period of 60 years.

Under the Business 1 zoning, the site can be developed for various uses such as light industry, clean industry, utilities or telecommunication uses.

Tender for the industrial site will close at 12pm on April 10, 2012.

Source : Channel NewsAsia – 16 Feb 2012