reporter2
20-12-12, 13:42
http://www.straitstimes.com/premium/money/story/sale-now-two-sites-jurong-and-cecil-street-20121220
On sale now: Two sites, in Jurong and Cecil Street
Plots can house 25- and 50-storey buildings; meant mostly for office use
Published on Dec 20, 2012
By ESTHER TEO PROPERTY REPORTER
TWO commercial sites - one in Jurong and another in Cecil Street - were put up for sale by the Government yesterday.
The 1.1ha plot in Venture Avenue in the Jurong Lake District has a gross floor area (GFA) of 65,000 sq m and can be built to 25 storeys.
At least 90 per cent of the confirmed list site must be for office use while the rest can be for commercial uses such as retail or food and beverage outlets.
Residential use is not allowed on the 99-year leasehold site, the Urban Redevelopment Authority (URA) said. It added that with the site "predominantly for office use, (this will) reinforce Jurong Gateway as an attractive and vibrant business hub".
Jurong Lake District, comprising Jurong Gateway and Lakeside, will be the biggest commercial hub outside the city centre.
Existing developments in the precinct include JTC Summit and the recently revamped entertainment centre JCube; Jem and Westgate, two upcoming retail-cum-office developments, are underway.
The other site made available for sale yesterday is a 99-year leasehold reserve list plot fronting Cecil Street and Telok Ayer Street.
The 0.8ha parcel has a potential GFA of 77,000 sq m and is "envisaged to be a high-quality office development" that can help the area develop as a business and finance hub, the URA said.
It can be developed to up to 50 storeys with about 80 per cent to be set aside for office use. Residential use is also not allowed. Part of the site must be reserved for open space and form part of the green network encompassing parks in Tanjong Pagar, Duxton Plain and Pearl's Hill.
Experts noted that both sites are coming onto the market at a time when the office segment has slowed.
Mr Ong Teck Hui, Jones Lang LaSalle Real Estate's national director of research and consultancy, predicts "moderate" participation for the Jurong site. He expects five to seven bidders with a top offer of between $700 and $800 per sq ft (psf) per plot ratio (ppr) - or up to $556 million.
"The site cannot be benchmarked against the Westgate site, which commanded a top bid of $1,018 psf ppr in May last year, as Westgate's minimum office quantum is only 40 per cent and is predominantly a retail mall," he said.
Colliers International research and advisory director Chia Siew Chuin said that given the ample supply of office space expected to be completed over the next few years amid a weaker market, it is unlikely that the Cecil Street site will be triggered for sale.
"Within the central business district, an estimated 7.6 million sq ft GFA of office space is expected to be completed from next year to 2017," Ms Chia added.
"M+S, the consortium of Khazanah Nasional and Temasek Holdings, in particular, has already committed to developing a total of some 2.9 million sq ft GFA of office space in Marina One and Duo 2 that are envisaged to be ready by the first half of 2017."
If the Cecil Street site is triggered for sale, there could be three to six bidders with the top bid from $800 to $1,000 psf ppr - or up to $831 million, Mr Ong said.
[email protected]
On sale now: Two sites, in Jurong and Cecil Street
Plots can house 25- and 50-storey buildings; meant mostly for office use
Published on Dec 20, 2012
By ESTHER TEO PROPERTY REPORTER
TWO commercial sites - one in Jurong and another in Cecil Street - were put up for sale by the Government yesterday.
The 1.1ha plot in Venture Avenue in the Jurong Lake District has a gross floor area (GFA) of 65,000 sq m and can be built to 25 storeys.
At least 90 per cent of the confirmed list site must be for office use while the rest can be for commercial uses such as retail or food and beverage outlets.
Residential use is not allowed on the 99-year leasehold site, the Urban Redevelopment Authority (URA) said. It added that with the site "predominantly for office use, (this will) reinforce Jurong Gateway as an attractive and vibrant business hub".
Jurong Lake District, comprising Jurong Gateway and Lakeside, will be the biggest commercial hub outside the city centre.
Existing developments in the precinct include JTC Summit and the recently revamped entertainment centre JCube; Jem and Westgate, two upcoming retail-cum-office developments, are underway.
The other site made available for sale yesterday is a 99-year leasehold reserve list plot fronting Cecil Street and Telok Ayer Street.
The 0.8ha parcel has a potential GFA of 77,000 sq m and is "envisaged to be a high-quality office development" that can help the area develop as a business and finance hub, the URA said.
It can be developed to up to 50 storeys with about 80 per cent to be set aside for office use. Residential use is also not allowed. Part of the site must be reserved for open space and form part of the green network encompassing parks in Tanjong Pagar, Duxton Plain and Pearl's Hill.
Experts noted that both sites are coming onto the market at a time when the office segment has slowed.
Mr Ong Teck Hui, Jones Lang LaSalle Real Estate's national director of research and consultancy, predicts "moderate" participation for the Jurong site. He expects five to seven bidders with a top offer of between $700 and $800 per sq ft (psf) per plot ratio (ppr) - or up to $556 million.
"The site cannot be benchmarked against the Westgate site, which commanded a top bid of $1,018 psf ppr in May last year, as Westgate's minimum office quantum is only 40 per cent and is predominantly a retail mall," he said.
Colliers International research and advisory director Chia Siew Chuin said that given the ample supply of office space expected to be completed over the next few years amid a weaker market, it is unlikely that the Cecil Street site will be triggered for sale.
"Within the central business district, an estimated 7.6 million sq ft GFA of office space is expected to be completed from next year to 2017," Ms Chia added.
"M+S, the consortium of Khazanah Nasional and Temasek Holdings, in particular, has already committed to developing a total of some 2.9 million sq ft GFA of office space in Marina One and Duo 2 that are envisaged to be ready by the first half of 2017."
If the Cecil Street site is triggered for sale, there could be three to six bidders with the top bid from $800 to $1,000 psf ppr - or up to $831 million, Mr Ong said.
[email protected]