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Published October 30, 2010

Jurong Lake mixed-use site up for sale

Analysts expect keen interest in the 1.8 ha 'white' site which is being made available for sale through the Reserve List

By UMA SHANKARI


THE government yesterday released a 1.8-hectare mixed-use site in the Jurong Lake District for sale - the second such site to be offered to developers since plans to transform the area into an attractive destination for business and leisure were unveiled in April 2008.

The 99-year leasehold site is being made available for sale through the Reserve List. Sites on this list are only put up for tender if a developer has offered to bid a minimum bid price deemed acceptable by the government.

The new parcel is in Boon Lay Way, next to Jurong East MRT station. A sizable mixed-use project with potential gross floor area (GFA) of 957,800 sq ft can be built on the site.

It is classified as a 'white' site, which means it can be put to commercial, residential or hotel use. But the Urban Redevelopment Authority (URA) requires that a minimum 40 per cent of maximum permissible GFA be set aside for office use.

URA also said the design of the proposed development will be reviewed by an advisory panel, chaired by URA, to 'ensure the development on this strategic site is well designed with good urban design and architectural quality'. The panel will work with and guide the development team in the design of the development after the tender has been awarded.

Analysts expect keen interest in the site, which is right next to a similar 1.9-hectare white site sold in June 2010.

'I think it should be well sought after,' said Cushman & Wakefield managing director Donald Han. 'There were quite a few strong bidders who missed out on the earlier site and so might want to try again for this. It's only a matter of time before the site is triggered.'

In June, Australian developer Lend Lease beat five other offers with its top bid of $748.9 million, or $650 per sq ft per plot ratio (psf ppr), for the earlier white site.

The developer edged out CapitaLand's retail unit CapitaMalls Asia, which made the second-highest offer of $728.8 million or $632 psf ppr. Lend Lease's bid was just 3 per cent higher.

The other bids came from a consortium made up of Far East Organization, Frasers Centrepoint and Japan's Sekisui House; another consortium comprising Keppel Land, Guthrie International and Max Platinum; Sim Lian Land; and China's Qingdao Construction.