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The Urban Redevelopment Authority (URA) on Friday (12 August) announced that it has accepted an application from a developer to launch the white site at Central Boulevard for sale by public tender for a bid price of not less than S$1,536,087,718.
The 1.1ha site, which was made available for sale on the Reserve List of the second half of 2016 Government Land Sales (GLS) Programme, has a maximum gross floor area of 141,294 sq m of which at least 100,000 sq m will b set aside for office use.
During the site’s launch for application in December last year, URA said the remaining area “will be used for complementary uses such as hotels, serviced apartments and/or residential uses.”
It also added that the future development will be connected to the adjacent Downtown MRT station and linked to Raffles Place Interchange MRT station and the upcoming Shenton Way MRT station.
It is noted that in accordance with the procedures of the Reserve List system, the URA is making public only the minimum price committed for the site, and not the identity of the applicant. URA will announce the launch of the public tender for the site later this month, and the tender period for the land parcel will be about ten weeks.
Meanwhile, in a statement to the media, JLL’s head of research Tan Huey Ying said the site was likely triggered due the potential tightening of prime office supply in the central business district by 2020 as “the built up of supply from earlier programs would have tapered off by then.”
“The upcoming major supply in the central area — DUO Towers, Guoco Tower, Marina One and 5 Shenton Way — would give rise to approximately 3.6 million sq ft over 2016-2017. However, the CBD office supply is expected to taper off in 2018 with [just] 0.78 million sq ft from Frasers Tower and Robinson Tower and 1.0 million sq ft from Woods Square and Paya Lebar Quarter in the decentralised areas,” Tan said. “After which, no supply is anticipated until the projected completion of 79 Robinson Road in 2020 and The Park Mall by 2020/2021. The triggering of the site for sale now would see the new supply of office space timed for completion in 2020/021 to meet the expected tight supply of prime CBD office space then.”
JLL said bids are expected to be to be limited to a handful, which will be a mix that includes foreign developers and joint ventures.
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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