New Changi Business Park site may see bids of up to S$600m

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New Changi Business Park site may see bids of up to S$600m

By Timothy Ouyang, Channel NewsAsia | Posted: 11 June 2008 2223 hrs

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SINGAPORE: JTC Corporation on Wednesday launched a tender for a mega development site at Changi Business Park, and the 4.7-hectare site is likely to see bids as high as S$600 million.

The winning bidder will have to build an integrated development comprising a business park, retail activities and a hotel.

Changi Business Park has been a hub for businesses that need to stay close to the airport or away from the city centre.

The new site being launched by JTC is at the junction of Changi South Avenues 1 and 2.

The site will yield a total gross floor area of 117,515 square metres, and 60 per cent of the floor space must be used for business park activities. The rest has been set aside for so-called "white" or commercial activities, including retail and hotel space.

Developers can dedicate 45 to 60 per cent within the "white" component to retail activities, with the remaining being set aside for the development of a hotel.

Observers say the winning bidder will need to build a hotel on the site to ease the crunch on hotel rooms in the vicinity.

Chua Yang Liang, head of research and consultancy at Jones Lang LaSalle, said: "I would say the retail component is going to be more limited to just serving the day-to-day needs of the immediate occupants there. Hotel, on the other hand, is probably more welcomed. There is a dearth of hotels in and around that area."

Some 2,000 hotel rooms could be built on the site, according to analysts that Channel NewsAsia spoke to.

The news comes as the government tries to cater to the rising demand for business park space and amenities in that area.

JTC expects Changi Business Park's current population of 6,000 to surge to 20,000 by 2011.

Market watchers say demand will continue to remain strong over the next 12 to 24 months.

Donald Han, managing director of Cushman & Wakefield, said as long as there is a huge gap between the prime office rentals in the central business district and the rentals in Changi Business Park, "there will be what we call the preference for huge multi-national corporations to try and average down CBD office rents by moving part of their operations into the Changi Business Park."

Interested bidders have up till 19 August to submit their proposals for the site. - CNA/ac

http://www.businesstimes.com.sg/sub/...83197,00.html?

Published June 12, 2008

JTC launches hotel-in-biz park tender

By EMILYN YAP


(SINGAPORE) A hotel within a business park? That may soon become reality, as JTC Corporation launched a concept and price tender yesterday for the development of an integrated business park facility with retail and hotel components in Changi Business Park (CBP).

The 4.7-hectare Plot 61 is a 'Business Park - White 40' site. Forty per cent of the total gross floor area of 1.26 million square feet will go towards 'white' or commercial activities.

Retail activities will take up 45 to 60 per cent of the 'white' space, while the balance will be set aside for a hotel. 'It would seem that there is a deliberate effort to ensure that a hotel will be built on the site, adding a complementary element to the predominantly business park use at CBP,' said executive director of CBRE Research, Li Hiaw Ho.

According to the tender document, bidders may opt for either a term of '30 years with an option for a further term of 30 years', or 60 years.

JTC said that it launched the tender to meet rising demand for business park space and amenities in CBP. The working population in the park could rise from 6,000 to 20,000 by 2011.

The integrated development would house firms in the high-technology, high value-added and knowledge-intensive industries. CBP is already attracting backend operations from financial institutions.

According to Knight Frank's senior manager of industrial business space Chow Kok Seng, rents in CBP can range from $3.50 to $6 psf.

He believes that the site may attract three or more bids from private developers, and Soilbuild Group Holdings could be one of them. The firm has developed Eightrium @ CBP, and recently won a JTC award to build, own and operate a stack-up factory at Tanjong Kling.

He also notes that private developers may offer bids ranging from $130 to $167 psf.

Observing that Plot 61 is larger than a previous site which was awarded to United Engineers in Q4 2007, Mr Li said that 'Plot 61 is likely to draw bigger developers which have the experience with large mix-used developments.'

The design concept probably needs to have a 'wow' factor because JTC may want the development to be a showcase, according to Chesterton International's head of research and consultancy Colin Tan. Therefore, he does not expect the award to be based solely on the bid price.

CBRE Research's Mr Li is optimistic on the integrated development's appeal. 'The proposed hotel would be able to draw guests that are working on a short-term basis in CBP or at Changi Airport, as well as participants of events held in the Singapore Expo,' he said.

Interested developers have up to August 19 to submit their proposals.

http://www.straitstimes.com/Money/St...ry_246966.html

June 12, 2008

JTC launches tender to develop hotel, retail shops

This will add vibrancy to Changi Business Park, offer business travellers options

By Michelle Tay


IN A Singapore first, the fast-growing Changi Business Park (CBP) is set to boast a hotel and retail outlets alongside the hubbub of enterprise.

A move yesterday by industrial landlord JTC Corp to invite developers to inject vibrancy into CBP with the novel development was warmly welcomed by the property market.

The 4.7ha site on offer, next to Singapore Expo, will include a business park's regular features, such as an industrial space for high-tech and research and development firms.

JTC, however, yesterday asked that the proposals - which are to cover price and concept - should also include plans to develop a hotel and retail outlets. This is the first such project for a business park in Singapore.

It means business travellers attending exhibitions and conventions in the east will soon be able to rest and relax at CBP rather than heading elsewhere in town.

JTC said it expected CBP's population of 6,000 to surge to 20,000 by 2011.

Mr Dominic Peters, the director of industrial services at property advisory firm Savills Singapore, said: 'There is currently no retail component in and around CBP; just mere amenities like F&B outlets. A hotel and retail mixture will create some vibrancy in the evenings in and around the Changi area... The response for tenders should be overwhelming.'

The site will yield a gross floor area of 117,515 sq m, 40 per cent of which has been designated for commercial activities. About 45 per cent to 60 per cent of the area designated for commercial activities can be used for retail, leaving a floor area of 18,800 sq m to 25,900 sq m for a hotel.

Bids for the site could be in the region of a few hundred million dollars, some consultants said.

JTC has said it is catering to the rising demand for business park space and amenities in CBP.

CBP, launched in July 1997 and covering 66ha, houses a mix of high-tech, data and software enterprises, and R&D and knowledge-intensive outfits like IBM and Honeywell. It is also fast-becoming a hub for financial backroom operations, with Citibank, Credit Suisse, DBS Group Holdings and OCBC Bank poised to set up there.

Said a JTC spokesman: 'The hotel component is a must and should be at least a three-star one catering to the business traveller.'

This is good news for CBP's neighbour, Singapore Expo, just across Changi South Avenue 1.

A spokesman for Singex Venues said all 10 halls and 100,000 sq m of the Singapore Expo had been sold out through this month, citing the burgeoning meetings, incentive trips, conventions and exhibitions (Mice) industry.

A business hotel over the road could help meet this demand, as the country's hotels have estimated that over 20 per cent of room revenue last year was from Mice visitors.

Said Mr Keith Oliver, the general manager of Singapore Expo: 'The hotels will be good for our overseas exhibitors and visitors, who will find the proximity a great convenience.'

Interested developers have up to Aug 19 this year to submit their proposals for the tender.

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