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UPDATE (Wednesday, 1 April): The site has been awarded to the top bidder, the consortium comprising Roma Central, Milano Central and Verona Central.
A commercial site at Paya Lebar Road/Sims Avenue has attracted six bids at the close of its tender on Tuesday (31 March).
The 99-year leasehold site received a top bid of about S$1.672 billion or S$942.55 per sq ft, jointly submitted by Roma Central, Milano Central and Verona Central. Notably, Australian developer Lend Lease owns 30 percent of the joint venture.
“The six bids for the Paya Lebar mixed-use site demonstrates continued confidence in Singapore as a global commercial hub,” said Desmond Sim, Head of CBRE Research for Southeast Asia, adding that the bullishness in the bid is not marred by current sentiment and supports the government’s commitment to keep Singapore’s occupation costs competitive by decentralising office spaces.
Cushman & Wakefield said the upcoming development will likely attract listed companies and multinational corporations to establish their headquarters – enhancing the overall attractiveness of the commercial hub – as developers are not allowed to strata subdivide the office component beyond five strata lots, “[preserving] the premium quality of the office building.”
Commercial site at Paya Lebar Road/Sims Avenue
Launched for tender on 28 October 2014, the 222,756 sq ft 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. It is located next to Paya Lebar Interchange MRT station and offers direct connection to both the Circle Line and East-West Line.
The site can generate about 1.77 million sq ft of gross floor area for office, retail and residential uses. 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 noted that the URA on Wednesday has awarded the site to the consortium that submitted the top bid, a day after the site’s tender exercise closed.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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