SLA awards office properties, offers two more sites for lease

http://www.channelnewsasia.com/stori...360953/1/.html

SLA awards office properties, offers two more sites for lease

Posted: 17 July 2008 1628 hrs


SINGAPORE: The Singapore Land Authority (SLA) has awarded the first two sites for transitional office space this year.

One of the most keenly-watched sites was the former Home Affairs Ministry complex at Phoenix Park.

The parcel was awarded to LHN Facilities Management, which will pay S$368,888 in rent per month.

11 bids were received for the Phoenix Park site, 10 of which were above the guide rent of S$165,000 per month.

The second site is the former Monk's Hill Secondary School at No. 10, Winsteadt Road in the Newton area.

It was awarded to Allbest Equipments for a rental of S$211,328 per month.

The plot received seven bids in total, all above the guide rent of S$147,300 per month.

The SLA is preparing to lease out two more sites for office use.

The first is a former police post at No. 1, Kelantan Road. It has a gross floor area of 177 square metres and is suitable for small start-ups.

The second site is the former Pacific Can Building at Cecil Street, which has a gross floor area of 1,810 square metres.

Leases for the two properties will end in June 2011.

Ku Swee Yong, director of Savills, said: "The site at Kelantan Road, it is very small, probably good for just one single user. So, we would be expecting probably quite many bids, maybe 20 bids. (For the site at) Kelantan, we would be expecting $4 to $5 per square foot per month. At Cecil Street, we would be looking at $6 to $8 per square foot per month bid price."

- CNA/ir

http://www.businesstimes.com.sg/sub/...88187,00.html?

Published July 18, 2008

Tanglin Road site goes at 124% above guide rent

By ARTHUR SIM


THE former Ministry of Home Affairs complex at Phoenix Park, off Tanglin Road, has been awarded to LHN Group for $368,888 a month - a huge 124 per cent more than the guide rent of $165,000 a month.

The site, with a gross floor area of 143,195.4 sq ft, is managed by the Singapore Land Authority (SLA). The tender attracted 11 bids - 10 of them at or above the guide rent.

Bidders included United Engineers Developments (UE) which put in the second-highest offer of $315,033 per month.

Teo Cher Hian, director of land lease (private) with SLA's land operations group, said LHN offered the 'best value for the state' based on allowable uses, business concept, track record and corporate financial health.

LHN plans to configure the site into separate tenant clusters, he said. The adjacent former Education Ministry headquarters now houses the Youth Olympic Games headquarters. And with more office set-ups pending, Phoenix Park 'completes the area as an office hub', said Mr Teo.

LHN is the master tenant for other state properties, including the former Gan Eng Seng School and CID Training Centre.

LHN managing director Kelvin Lim said the investment cost at Phoenix Park is expected to be about $4 million. He estimates that rents could be around $6 psf per month when it opens at the year-end.

Rising office rents are forcing more businesses to consider alternative office space like Phoenix Park. UE, for instance, had intended to use most of the space to house its own engineering operations, and to lease the rest to other tenants. 'The existing structures and layout would also allow rather quick occupation with minimal works,' a UE spokesman said.

Marine engineering firm Allbest Equipments, which was awarded the former Monk's Hill Secondary School site by SLA, also expects to relocate its corporate offices there.

Allbest put in the highest bid of $211,328 per month for the site, which has a GFA of 83,889.5 sq ft.

Seven bids were received, with Allbest's 43 per cent higher than the guide rent of $147,300.

Allbest general manager Chan Cheong Hoy said it will lease the remaining space at $7.50-$10 psf a month and expects to complete the first phase of renovations within four months.

Cushman and Wakefield managing director Donald Han said that as well as getting such properties ready to let as quickly as possible, developers have to keep construction costs under tight control to ensure their projects are feasible.

Mr Han says that in the Newton area transitional office space is going for $7.50-$8 psf a month, while the former Gan Eng Seng School could achieve $4.50-$5 psf a month.

http://www.straitstimes.com/Money/St...ry_258801.html

July 18, 2008

Office space slump? 2 state-owned sites pull in strong bids

By Fiona Chan, Property Reporter


THE former Ministry of Home Affairs complex at Phoenix Park is set to be transformed into an 'iconic integrated office complex' with restaurants and other facilities.

The plans were unveiled by LHN Facilities Management, which was awarded the right to lease the Tanglin Road site by the Singapore Land Authority (SLA) yesterday.

LHN's managing director, Mr Kelvin Lim, added that perks like a shuttle service to the nearby Redhill MRT station would help to attract government agencies and private companies which need space outside the Central Business District. The property comprises 24 low-rise blocks.

LHN, which specialises in converting old properties for new uses, offered $368,888 a month - more than double the $165,000 guide rent. A total of 11 bids were received for the site.

Another state-owned site awarded for lease by the SLA, the former Monk's Hill Secondary School at Winstedt Road, is also set for a makeover.

The top bid came in from marine engineering firm Allbest Equipments at $211,328 a month - 40 per cent more than the guide rent of $147,300.

Allbest is retaining only 5 to 10 per cent of the built-up space for its own office needs and will rent out the rest.

The company will spend about $4 million doing up the building and expects to lease space to medium-sized businesses at $8 to $10 per sq ft, said Mr Chan Cheong Hoy, general manager of Allbest.

The strong interest in the two state-owned sites shows that despite the torpor in the property market, demand for office space in the prime area appears to be going strong.

The two buildings pulled in offers that were well above their guide rents, SLA said.

Both companies plan to sub-lease most of the space in these buildings, believing that office demand will remain healthy.

These two properties are the first that SLA has leased out this year. The agency will put up another two sites, also for office use, in the coming months.

One is a former police post at 11 Kelantan Road, which has a gross floor area of 1,905 sq ft. The other is the former Pacific Can Building at Cecil Street, a vacant two-storey property with a total floor area of 19,482 sq ft.