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The site has a maximum permissible gross floor area of 88,313 sqm (950,593.22 sq ft). Of this, a minimum of 61,820 sqm (665,424.94 sq ft) must be set aside for office space, while a maximum of 3,000 sqm (32,291.73 sq ft) is to be allocated for retail premises. (Image: URA)
The Urban Redevelopment Authority (URA) announced on Wednesday (21 June) that a Reserve List site at Beach Road measuring 21,026.9 sqm (226,331.67 sq ft) has been triggered for sale after an unnamed developer has committed to a bid price of at least S$1.138 billion.
Offered on a 99-year leasehold tenure, the site has a maximum permissible gross floor area of 88,313 sqm (950,593.22 sq ft). Of this, a minimum of 61,820 sqm (665,424.94 sq ft) must be set aside for office space, while a maximum of 3,000 sqm (32,291.73 sq ft) is to be allocated for retail premises.
The developer is also required to conserve and restore the former Beach Road Police Station.
URA said the public tender for the land parcel will be launched in about two weeks and it will be open for around 12 weeks.
According to JLL’s National Director for Research & Consultancy Ong Teck Hui, the plum CBD fringe commercial site should generate good interest amongst developers and investors.
Aside from office and retail, a part of the site may be used for hotel, service apartments and residential purposes, while the conservation of the police station will “enhance the character of the development making it more interesting.”
“The development of the subject site augurs well for the office market as it will increase the supply of quality office space in the CBD fringe that is more affordable than those in prime CBD.”
“The office component would increase the critical mass of new office buildings in the vicinity, together with South Beach Tower and Duo Tower,” he added.
Meanwhile, Colliers International Singapore’s Research Head Tricia Song revealed that the minimum bid price translates to S$1,197 psf ppr. While this is 29 percent lower than the S$1,689 psf ppr for the Central Boulevard site in Raffles Place/Marina Bay, this is already higher than the S$1,069 psf ppr for the adjacent South Beach site which was secured by a CDL-led consortium during the market peak in 2007.
She believes the site will likely see tight competition given the brighter economic prospects, with local developers wanting to raise their office exposure, while foreign developers are interested in acquiring Singapore investment properties.
“One such foreign developer could be Nanshan Group who was reported to have triggered the Central Boulevard site last year, but did not win. We expect top bids to be around S$1.2 billion to 1.25 billion or S$1,262 to S$1,315 psf ppr.”
This article was edited by Denise Djong.
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