URA receives 6 valid bids for Peck Seah Street white site

The Urban Redevelopment Authority (URA) has received six valid bids for the white site at Peck Seah Street/Choon Guan Street at the close of the tender on Tuesday.

The site has an area of about 15,000 square metres and a maximum gross floor area of over 157,000 square metres.

The white site allows developers to have the flexibility to develop the site for commercial, hotel or residential development, or a mix of these uses.

The highest bid came from joint bidders Perfect Eagle, Guston and Belmeth. They submitted a bid of S$1.708 billion, followed by a joint bid led by RQ Hotel Management at around S$1.528 billion.

Other bidders included Emerald Star and CL Pinnacle Development. Beach Development placed the lowest bid of S$615 million, while a bid from Wee Jong Dit has been disqualified.

The white site was launched for public tender on July 30 and has a lease period of 99 years.

Li Hiaw Ho, executive director, CBRE Research, said the top bid submitted for the site reflected a land price of S$1,006 per square foot per plot ratio.

He added: “In order to obtain this top bid of S$1,006 psf/plot ratio, the gross development value (GDV) for the 60% office component is estimated at S$2,200 psf to S$2,300 psf.

“The mandatory 10% of the overall gross floor area for hotel use would translate into 330-350 rooms, with each room estimated at between S$800,000 and S$900,000.”

He said it would make sense to utilise the remaining 30% for residential units given the growing popularity of inner-city living in the last few years.

“Based on the top bid, condominium units at this mega development could possibly transact at S$2,400 psf to S$2,500 psf when the housing element of this project is ready for launch,” Mr Li said.

He added that the “development of this mammoth project in the heart of the Tanjong Pagar area would inevitably achieve landmark status, and would further propel the Tanjong Pagar area into a growth region for commercial activity anchored by branded international tenants/MNCs.”

URA said it announce the final tender results at a later date after the bids have been evaluated.

Source : Channel NewsAsia – 16 Nov 2010

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