Far East-Sekisui JV tops bids for Woodlands office site

[princess_morbucks]

http://www.businesstimes.com.sg/premium/top-stories/far-east-sekisui-jv-tops-bids-woodlands-office-site-20140409

http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/image_300x200/cwpnewsite090414.jpg
The site is a stone's throw from the interchange at Woodlands MRT Station, where the existing North- South line will meet the future Thomson line - PHOTO: SPH



[SINGAPORE] A joint venture between Far East Organization, its listed unit Far East Orchard and Sekisui House that topped a state tender for the first predominantly office site in Woodlands Regional Centre intends to build two 16-storey office towers featuring both large and small strata office units for sale as well as lease.

The project, located next to Causeway Point, will also have some retail space that the developers will probably retain for long-term investment. The top bid at yesterday's tender of nearly $634 million, or $906.29 per square foot of potential gross floor area, was just 2.1 per cent more than the next highest bid of $887.42 psf per plot ratio (psf ppr) from CapitaLand units Mahogany One and Mahogany Two.

However, the top bid was 17.6 per cent above the third highest bid of $770.49 psf ppr from a City Developments-Hong Leong Holdings tie-up and double the lowest bid of $440.28 psf ppr. The latter came from Sim Lian, which recently launched its Vision Exchange project in Jurong East where office units were recently sold at an average price of $2,150 psf.

Based on Far East-Sekisui's top bid, market watchers estimated its breakeven cost at about $1,800 psf.

[DC33_2008]

Since Far East JV has gotten this site. Quickly go and buy development in close proximity to it. :)
http://www.businesstimes.com.sg/premium/top-stories/far-east-sekisui-jv-tops-bids-woodlands-office-site-20140409

http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/imagecache/image_300x200/cwpnewsite090414.jpg
The site is a stone's throw from the interchange at Woodlands MRT Station, where the existing North- South line will meet the future Thomson line - PHOTO: SPH

[Royston8H]

This fareast organisation's successful bid near causeway point still worth while due to endless human traffic. Saw some ground drilling has started while drove past that area last week.

With the recent announcement on HSR, properties nearby woodland north mrt might be badly hit.

[Pro888]

This fareast organisation's successful bid near causeway point still worth while due to endless human traffic. Saw some ground drilling has started while drove past that area last week.

With the recent announcement on HSR, properties nearby woodland north mrt might be badly hit.

huh?

HSR & RTS both dif lines altogether.

[Warren49]

huh?

HSR & RTS both dif lines altogether.

Not just different lines, but totally different types of commuters too.

[reporter2]

http://www.businesstimes.com.sg/archive/wednesday/premium/top-stories/far-east-sekisui-jv-tops-bids-woodlands-office-site-20140409

Published April 09, 2014

Far East-Sekisui JV tops bids for Woodlands office site

Strata office units set for launch towards year-end or early next year


[SINGAPORE] A joint venture between Far East Organization, its listed unit Far East Orchard and Sekisui House that topped a state tender for the first predominantly office site in Woodlands Regional Centre intends to build two 16-storey office towers featuring both large and small strata office units for sale as well as lease.

The project, located next to Causeway Point, will also have some retail space that the developers will probably retain for long-term investment. The top bid at yesterday's tender of nearly $634 million, or $906.29 per square foot of potential gross floor area, was just 2.1 per cent more than the next highest bid of $887.42 psf per plot ratio (psf ppr) from CapitaLand units Mahogany One and Mahogany Two.

However, the top bid was 17.6 per cent above the third highest bid of $770.49 psf ppr from a City Developments-Hong Leong Holdings tie-up and double the lowest bid of $440.28 psf ppr. The latter came from Sim Lian, which recently launched its Vision Exchange project in Jurong East where office units were recently sold at an average price of $2,150 psf.

Based on Far East-Sekisui's top bid, market watchers estimated its breakeven cost at about $1,800 psf.

Yesterday's tender attracted eight bids.

Jones Lang LaSalle national director Ong Teck Hui noted that the highest bid was about 10 per cent below the $1,009 psf ppr that Sim Lian paid for its Vision Exchange site in December 2012.

Both sites have 99-year leasehold tenure.

The lower bid yesterday is "reflective of the site's location in Woodlands, a relatively untested market for offices", said Mr Ong.

Agreeing, a market watcher said Jurong East is more advanced in terms of its development as a commercial hub compared with Woodlands. Another reason for the lower price for the Woodlands site is that it comes with more conditions. The Urban Redevelopment Authority (URA) has stipulated that at least 90 per cent, or 629,602 sq ft, of the 699,557 sq ft maximum gross floor area (GFA) for the site must be for offices - in line with the plan for Woodlands Regional Centre to be developed as a major employment centre in Singapore's northern area.

A further minimum 5,382 sq ft must be set aside for childcare centre use. The rest of the GFA can be for additional office or other complementary commercial uses such as retail, food and beverage and/or entertainment. Residential use is not allowed.

While strata subdivision is allowed for the office component, all the non-office uses (including the childcare centre) have to be held under a single strata lot and owned by a single entity.

Property consultants polled by BT when the site was launched last December generally predicted five to eight bids for the site, though they differed widely on their expectations of the top bid - from $500 psf ppr to $1,100 psf ppr.

Chia Siew Chuin, director at Colliers International, described the eight bids garnered as a "strong participation rate" signalling developers' optimism about the growth story for Woodlands Regional Centre. "Being the first site predominantly for office use in Woodlands, the site is expected to serve as the catalyst to kick-start the development of the Woodlands Regional Centre after all these years since decentralised regional centres were first conceptualised in 1991."

The site is a stone's throw from the interchange at Woodlands MRT Station, where the existing North- South line will meet the future Thomson line.

Moreover, says Far East Organization executive director (property services) Chng Kiong Huat, Woodlands will be linked to Johor Baru via a rapid transit link system in 2018.

Under the proposed scheme, the Far East-Sekisui project will have one basement level - for car parking and retail space and provide direct connectivity to the MRT station and Causeway Point.

Level 1 will also have some retail space in addition to the office lobby. Level 2 will feature green open space, a childcare centre and a link-bridge between the two towers. Offices will fill Levels 3 to 16.

The strata office units are likely to be launched for sale towards the year-end or early next year.

[reporter2]

http://www.straitstimes.com/archive/wednesday/premium/money/story/property-giants-vie-site-woodlands-20140409

Property giants vie for site in Woodlands

Published on Apr 9, 2014

By Melissa Tan


A CLASH of the property titans unfolded yesterday as the sector's big guns jostled for a prime commercial site in up-and-coming Woodlands.

A consortium of Far East Organization, Far East Orchard and Sekisui House topped the eight bids with an offer of $634 million for the 99-year leasehold plot at Woodlands Square.

That price works out to about $906 per sq ft (psf) per plot ratio (ppr) for the 199,873 sq ft parcel.

A CapitaLand bid of $887 psf ppr was just 2 per cent lower while fellow property heavyweights City Developments and Hong Leong came in third with a joint offer of $770 psf ppr. Sim Lian lodged the lowest bid at $440 psf ppr.

"Bidders were probably looking for first-mover advantage in this area since the announcements of Woodlands' future plans," said CBRE research head Desmond Sim yesterday.

The site was the first to go on the market in the Woodlands Regional Centre after the Urban Redevelopment Authority unveiled its draft masterplan last year.

SLP International research head Nicholas Mak said the "successful growth story" of Tampines Regional Centre and the Jurong Lake District could have boosted developers' confidence in bidding for the parcel.

However, the offers hovered at the lower part of the expected price range. Consultants had earlier predicted that the top bid would be $850 to $1,100 psf ppr.

That likely reflected the fact that Woodlands is a "relatively untested" market for offices, said JLL Singapore research director Ong Teck Hui.

He noted that while Singapore's north has a substantial base of small- and medium-sized enterprises, with 16 per cent of the island's industrial stock, it has less than 1 per cent of the total office space.

Since rents in Woodlands are likely to lag behind those in other established suburban office markets, strata units in the development "would have to be priced realistically to be saleable", noted Mr Ong.

Mr Chng Kiong Huat, executive director of property services at Far East, said in a statement yesterday that the company intends to develop two 16-storey office towers with a mix of small and large strata units for sale and lease. This will make up 90 per cent of the development.

There will also be retail on the ground floor and the basement with direct links to the Woodlands MRT station and Causeway Point, he said.

Causeway Point, the only mall at Woodlands Square, is managed by Frasers Centrepoint Trust.

Fraser Centrepoint Limited also lodged a joint bid with Pluto I Investments for the site, in what Mr Mak said was "an attempt to maintain its market position in the Woodlands area". However, the joint bid of $550 psf ppr put it in fifth place.

The site has a maximum gross floor area of 699,556 sq ft, including subterranean space and a pedestrian link-bridge.

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[Royston8H]

the drilling which i was referring is for that fareast site near causeway pt.

Ya. HSR & RTS are different.....previously there was speculation of woodland north site to link up to malaysia


huh?

HSR & RTS both dif lines altogether.