CapitaLand Development, CDL and Frasers Property will each hold a 25% stake in the consortium. Mitsubishi Estate and Mitsui Fudosan (Asia) will each hold a 12.5% stake. — The Straits Times
SINGAPORE: A consortium of five real estate heavy hitters have jointly bid for the tender of a master developer site in Jurong Lake District, which is set to become Singapore’s largest business district outside the city centre.
The consortium comprising CapitaLand Development, City Developments (CDL), Frasers Property, Mitsubishi Estate and Mitsui Fudosan (Asia) submitted two bids with different concept proposals for the 6.5ha government land sales white site – consisting of three plots – at the close of the tender on March 26.
CapitaLand Development, CDL and Frasers Property will each hold a 25% stake in the consortium, while Mitsubishi Estate and Mitsui Fudosan (Asia) will each hold a 12.5% stake.
Bids will be evaluated under the concept and price-revenue tender approach, which requires tenderers to submit concept proposals and tender prices separately.
Only shortlisted concept proposals will proceed to the second stage, which will be based on price alone.
PropNex research and content head Wong Siew Ying said the site could command a land price of S$3.5bil to S$3.9bil, assuming a top land rate of S$900 to S$1,000 per sq ft per plot ratio (psf ppr).
CBRE head of research for Singapore and South-east Asia Tricia Song sees the top bid at around S$1,000 psf ppr, “before taking into account infrastructural and engineering costs to achieve various sustainability, net-zero emissions, car-lite, district cooling, (and) integration features, which will likely be quite substantial”.
JLL head of research and consultancy Tay Huey Ying said it is no surprise that the site attracted a consortium of developers with extensive experience in large-scale mixed-use projects.
He said this was in view of the “substantial investment requirements, a long-term commitment potentially spanning 10 years or more, as well as the specialised and intricate nature of the project”. — The Straits Times/ANN
