Marina Bay consortium moves to buy rest of site

Singapore
Published February 17, 2007

Marina Bay consortium moves to buy rest of site

By KALPANA RASHIWALA


THE consortium developing the Marina Bay Financial Centre (MBFC) said yesterday it has exercised its option to buy the rest of the business and financial centre site.

The price it will pay the government is $883.8 million, reflecting an effective unit land price of $435 psf of potential gross floor area. Market watchers say the consortium has probably saved itself a tidy sum by exercising the option before the upcoming revision of development charge (DC) rates that takes effect on March 1, as any increase in development charge rates would have increased the price payable.

The second and final phase of the MBFC will add a further 194,000 sq metres or about 2.1 million sq ft gross floor area (GFA).

The first phase - comprising the Marina Bay Residences and two office towers - is now under development and will have a GFA of 244,000 sq metres (about 2.6 million sq ft).

The 99-year leasehold site was awarded to the consortium - comprising Hongkong Land, Keppel Land and Cheung Kong Holdings - under an Urban Redevelopment Authority tender that closed in July 2005.

However, under a flexible payment scheme, the consortium was allowed to buy the land in phases.

Its winning bid in the July 2005 tender worked out to $381 psf ppr.

The price for subsequent phases is pegged to 50 per cent of the increase in DC rates for seven locations in the vicinity.

The consortium indicated yesterday it will develop Grade-A office and high-end residential components in the new phase, details of which will be revealed after discussions with the URA.

David Martin, general manager of Raffles Quay Asset Management, the consortium's asset management company, said: 'The purchase of Phase 2 demonstrates the consortium's confidence in Singapore's property market and its continued development as a key financial centre in Asia.'

The 428-unit Marina Bay Residences achieved an average price of $1,950 psf during a preview in December.

The two office towers also in the project's first phase are slated for completion in 2010 and will have about 1.65 million sq ft of net lettable area with floor plates ranging from 20,000 sq ft to 25,000 sq ft.

Feb 17, 2007

Group pays $884m for rest of Marina plot

Developer of Marina Bay Financial Centre will build homes and offices in phase two

By Joyce Teo, Property Correspondent


THE consortium that is developing the prime Marina Bay Financial Centre (MBFC) has disclosed the sum - $883.8 million - that it is paying for the second phase of the site, on nearby land.

And for the first time, the consortium, which includes Singapore's Keppel Land, disclosed that residential apartments, as well as offices, will be built in phase two.

The upmarket residential component of phase one of the 99-year leasehold site was a big hit among property investors.

The announcement comes amid tightening office supply, which is not expected to ease until MBFC's phase one is ready in 2010.

Office rents have climbed significantly in the past year and they look set to continue the climb. Indeed, prime rents may rise to as much as $20 per sq ft in two years, from the current high of about $13 psf, predicted property consultancy Savills Singapore's Mr Ku Swee Yong.

In a statement yesterday, the consortium said that it had exercised its option to buy phase two of the site in the new downtown from the Government. The price works out to about $423 psf, excluding 5 per cent GST (goods and services tax). In 2005, it took up an eight-year option for the buy.

Phase two will add 194,000 sq m of gross floor area to the 244,000 sq m of space that is being developed under phase one.

Assuming construction starts immediately, the new offices and homes may hit the market only by 2011, market watchers say.

'The consortium indicated it would develop both Grade-A office and high-end residential components in the new phase, details of which will be revealed in due course after discussions with the Urban Redevelopment Authority (URA),' the consortium said.

It comprises Keppel Land, and Hong Kong's Cheung Kong Holdings and Hongkong Land.

The general manager of the venture's asset management firm Raffles Quay Asset Management, Mr David Martin, said: 'The purchase of phase two demonstrates the consortium's confidence in Singapore's property market and its continued development as a key financial centre in Asia.'

Just last week, the Government said it plans to launch more development sites at Marina Bay.

For the consortium, its move is timely, coming less than a fortnight before the URA unveils its six-monthly review of development charges on March 1.

Given the rise in values in the area, property consultants expect significant increases in the commercial development charges for Marina Bay of up to 100 per cent.

The first phase of MBFC comprises two office towers and the 428-unit Marina Bay Residences, which sold out before its launch last December.

Phase two of the MBFC is made up of two separate sites - one is behind The Sail @ Marina Bay and the other is behind Marina Bay Residences.

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Published March 9, 2007

2nd phase of Marina Bay Financial Centre sold for $907m

By KALPANA RASHIWALA


(SINGAPORE) The Urban Redevelopment Authority (URA) yesterday gave a detailed breakdown of the price paid by the consortium developing the Marina Bay Financial Centre for the second and final phase of the 99-year leasehold site.

The consortium exercised an option on Feb 16 to buy the remaining portion of the site which can be developed into a gross floor area (GFA) of 194,000 square metres at a total land price of $907.67 million, URA said in a statement announcing yesterday's signing of the building agreement for the second and final phase of the site.

Based on URA's figures, the unit land price works out to $435 psf of potential gross floor area. The consortium had earlier paid an option fee of about $63.6 million for the right to purchase the remaining site.

Part of this option fee, amounting to $23.9 million, can be used to pay for the balance land. Thus, the net amount of land price payable by the consortium for the remaining site is $883.8 million.

The consortium members are Keppel Land, Cheung Kong Holdings/Hutchison Whampoa, and Hongkong Land. The group was the highest bidder for the site, with a $381 psf per plot ratio offer, when the tender closed in July 2005.

When the consortium signed the building agreement for the first phase of the project, amounting to 244,000 square metres of GFA, in October 2005, it had taken an eight-year option to buy the remaining 194,000 square metres of GFA.

URA said that the approved development mix for phase 2 would comprise mainly office and residential uses with a small retail component. However, the consortium can propose changes to the development mix and seek URA's approval.