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The Urban Redevelopment Authory (URA) announced Tuesday (28 October) the launch of the second land parcel in Paya Lebar Central for sale by public tender.
The 3.9 ha mixed-use site at Paya Lebar Road / Sims Avenue can generate about 1.77 million sq ft of gross floor area for office, retail and residential uses.
The site is within a precinct which has about 12ha of land available for development and a total potential commercial floor space of about 5.38 million sq ft.
According to URA, at least 968,000 sq ft of the maximum permissible GFA of the development will be set aside for office use, while the remaining GFA can be for additional office, retail, entertainment, food & beverage (F&B) and residential uses.
It is expected to be a key development in the Paya Lebar Central, and build upon Paya Lebar Central’s transformation into a major commercial centre on the city fringe, the statutory board added.
The site is located next to Paya Lebar Interchange MRT station and offers direct connection to both the Circle Line and East-West Line. It also enjoys excellent frontage along Paya Lebar Road, Sims Avenue, Tanjong Katong Road and Geylang Road.
Notably, analysts expect strong occupier interest for the site.
Desmond Sim, Head, CBRE Research, Southeast Asia said: “The Paya Lebar site is a highly anticipated plot as it is yet another step in the government’s plan to provide a viable alternative to Singapore’s CBD commercial market to help occupiers manage costs and bring jobs closer to homes. Decentralisation has been relatively successful in Singapore, case in point where The Metropolis has been able to attract multinational corporates to establish their regional headquarters in Buona Vista.”
“In terms of attributes, the Paya Lebar site is quite similar to Buona Vista and it is expected to draw a high level of interest from developers. Paya Lebar is a sub-regional centre and serves as the mid-point between Tampines regional centre and the CBD. The site is supported by a comprehensive network of amenities. It is 5 to 6 stops from Raffles Place/ City Hall [MRT stations],” he added.
Citing demand for quality decentralised office locations, CBRE said the office component in the site “will undoubtedly appeal to corporate occupiers not least given the connectivity to the MRT, proximity to the CBD and Changi and also the integration with retail.”
Sim added “However, given its size and projected quantum, CBRE expects developers to enter into joint ventures to diversify risks, extend their equity muscle as well as to capitalise on the respective strengths of each party. Pricing therefore is expected to be competitive.”
Tender exercise will last for about 22 weeks and will close on 31 March 2015.
Image: Artist’s impression of sale site at Paya Lebar Central
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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