Government Tenders

 

Yio Chu Kang/Seletar Road-site tender opens

 

URA has launched a tender for a commercial and residential site at Yio Chu Kang/Seletar Road after receiving a $40.5 million committed bid from a developer. The 2.1ha site within the Seletar Hills estate has a 99-year lease. The tender will close at noon on Sept 17.

 

Source: The Edge Singapore – MONDAY, 24 AUGUST 2009

 

 

Hong Leong’s Chestnut Avenue-site bid leads

Hong Leong Group has emerged top bidder for a 99- year leasehold 250,000 sq ft site at Chestnut Avenue. The $280 psf bid was a 131% premium to the minimum bid price of $121 psf. A total of 13 bids were received, reflecting renewed interest among developers for mass-market residential projects, says Leonard Tay, director of CB Richard Ellis (CBRE) Research.

Calculating the estimated breakeven price for a residential project based on a land price of $280 psf per plot ratio at $550 to $580 psf, he adds that the eventual selling price might be $650 to $700 psf. In an Aug 20 report, DMG & Partners maintains an “overweight” rating on the property sector, saying, “we expect similar demand for two other ongoing bids at Dakota Crescent and Yio Chu Kang, and more triggers of [government land sale] sites”.

Source: The Edge Singapore - MONDAY, 24 AUGUST 2009

 

11 Penang Lane launched for public tender

The Singapore Land Authority (SLA) has launched a public tender for state property at 11 Penang Lane, the former office of the National Council of Social Services. Allowable uses include hotel, commercial school, foreign-system school and office.

 

 

 

Credit: SLA

The tenancy is for an initial three years and renewable for two three-year terms. The 8,686 sq ft property, near Park Mall and the Singapore Shopping Centre, has a gross floor area (GFA) of 33,907 sq ft and a rent guide of $103,900 a month. It comprises an eight-storey block. In May, an auction for the site attracted 40 bids, but the tenant subsequently returned possession to the SLA. So far, the SLA has received 27 inquiries about the property. The tender closes at 11am on Sept 1.

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

URA receives 18 bids for Kaki Bukit Road 2 site

URA has received 18 bids for the industrial site along Kaki Bukit Road 2. The highest bid of $12.1 million, or $105 psf per plot ratio, is from KNG Development.

CB Richard Ellis notes that this bid is 16.5% more than the second-highest bid of $10.4 million, or $90 psf ppr, by Lee Siaw Ling, Low Khoon Huat and Ang Lai Huat. The breakeven cost for KNG Development is likely to be $250 psf. CBRE says the robust response to the tender could reflect bidders’ expectations that Singapore’s manufacturing sector will improve in the near future.

Source: The Edge Singapore - MONDAY, 17 AUGUST 2009

 

 

Wee Hur places highest bid of $22.9 million for Woodlands Industrial site

Wee Hur Development has placed the highest bid of $22.9 million or $34 psf per plot ratio (ppr) for an industrial site at Woodlands Avenue 4. At the close of the tender last week, the URA received eight bids for the 2.5ha site from a few listed companies including Soilbuild Group and Sim Lian Development, which submitted bids of $21 million and $17.5 million respectively.

The site is on a 60-year lease. Last July, the winning bid for an industrial site in the same area submitted by Soilbuild was only $30 psf ppr, CBRE Research executive director Li Hiaw Ho notes. The healthy response to the recent tender could be a reflection of the expected turnaround for the manufacturing sector, Li adds. The URA will evaluate the bids before announcing the award of the tender.

Source: The Edge Singapore - MONDAY, 13 JULY 2009