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Thread: Less commercial space on offer, none in Marina Bay

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    Default Less commercial space on offer, none in Marina Bay

    http://www.businesstimes.com.sg/sub/...01540,00.html?

    Published November 26, 2010

    Less commercial space on offer, none in Marina Bay

    URA wants to pace out development of the area with M+S factor looming

    By KALPANA RASHIWALA


    (SINGAPORE) The supply of commercial space on the confirmed list of the first-half 2011 Government Land Sales (GLS) Programme is being halved from H2 2010. And the government did not include a site for office development in the Marina Bay area in the H1 2011 list that some developers and consultants had asked for.

    The earliest that land will be offered through the GLS Programme in Marina Bay, where offices are being highly sought after by banks, will be around 2013, when infrastructure works in the vicinity begin to be completed.

    However, Urban Redevelopment Authority (URA) group director (land sales and administration group) Marc Boey highlighted that in the meantime, about 341,000 square metres of gross floor area (GFA), part of which will be for office use, will be generated from the four plots in the location that will be jointly developed by the Khazanah-Temasek partnership, M+S Pte Ltd. The plots are slated to be vested in M+S next year.

    Another two parcels in the Ophir/Rochor area to be vested in M+S will produce a further GFA of about 160,000 sq m.

    Hence there is a need to space out the future release of sites and pace of development in Marina Bay as in the past, URA officials stressed.

    Explaining the drop in commercial land supply in H1 2011, Mr Boey said that 'for 2010 itself, we have already injected quite a large supply of office developments' - including the Jurong Gateway, Buona Vista and Tanjong Pagar sites.

    Following that, the Ministry of National Development (MND) is offering two relatively small commercial plots on the H1 2011 confirmed list - at Cecil Street (a plot beside Capital Tower currently used as a park) and next to Paya Lebar MRT Station - that will have minimum office components. The H1 2011 confirmed list can generate a total commercial GFA of 98,120 sq m - about half the 184,240 sq m supply in the current half's confirmed list.

    In addition, MND will introduce a new commercial plot on the reserve list, also near Paya Lebar MRT Station, that will have minimum office and hotel components. That along with other reserve list plots for H1 2011 can produce about 219,740 sq m commercial space, close to the 215,590 sq m from the H2 2010 reserve list.

    URA officials yesterday also highlighted the government's strategy of releasing land for office development in a diverse range of locations including Tanjong Pagar in the old CBD, Buona Vista, and the regional commercial hubs earmarked around Paya Lebar and Jurong East MRT stations to create a range of options for occupiers with different budgets.

    It will only be from 2013 onwards that MND will start releasing land in Marina Bay through the GLS Programme as infrastructure works in the area begin to be completed - such as construction of the Downtown Line, extension of the North-South Line and the Common Services Tunnel network.

    URA officials highlighted 11 plots near Marina Bay Financial Centre (MBFC) and Asia Square that will be made available for development in phases from 2013 onwards.

    'The actual schedule for release of the land parcels will be dependent on market conditions and demand at that point in time,' said URA's director (urban planning) Andrew Fassam.

    The plots may be tendered out individually or amalgamated with adjacent sites to allow for development of a mixed-use complex. The 11 plots, zoned white, can generate a total GFA of about 1.75 million sq m - equivalent to four MBFCs.

    URA also spotlighted the substantial office supply in the pipeline, of about 887,000 sq m (GFA), or about 9.5 million sq ft - of which 8.2 million sq ft will be completed from Q4 2010 to 2013 and is mostly in the prime CBD including Marina Bay.

    While some market watchers worry about a shortage of offices from 2014, URA officials suggest that supply from the Cecil Street and Paya Lebar plots to be sold in H1 2011 as well as the plots at Jurong East, Buona Vista and Tanjong Pagar awarded this year could potentially translate into some new office completions from 2014 onwards. And the South Beach project, which includes offices, is expected to be completed in 2015.

    Jones Lang LaSalle's head of markets Chris Archibold reckons GuocoLand's Tanjong Pagar project will likely be completed around 2015, and the Marina Bay plots that will be developed by M+S Pte Ltd could start to be completed around 2015 or 2016. 'So that leaves maybe a year's gap, in 2014,' he added.

    He agreed with MND's strategy to supply office space in older CBD locations such as Tanjong Pagar and Cecil Street as it will appeal to cost-conscious tenants as well as banks for their backoffice functions. 'But if they offer another site in Marina Bay now, it will be taken up. There's a lot of confidence. If you speak to corporate real estate guys from major MNCs and especially banks, they're all looking at expansion again.'

    'Maybe they should keep under review the topic of when to release the next plot at Marina Bay according to market needs, instead of saying it will be from 2013 onwards,' he suggested.

    Another observer said: 'I think they probably want to clear the path for M+S, and give them some breathing room to get organised, get some tenants, before releasing more sites in Marina Bay.'

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    http://www.straitstimes.com/PrimeNew...ry_607384.html

    Nov 26, 2010

    Govt expected to release Marina Bay land from 2013


    DEVELOPERS eyeing prime Marina Bay land might have to wait until at least 2013 before getting a chance to lodge a bid.

    That is when the Government is expected to start releasing 11 parcels of land in step with the completion of infrastructure works in the area. These projects include the Downtown rail line and the Marina Coastal expressway, which will be completed in phases in the next few years, said the Ministry of National Development (MND) yesterday.

    Urban Redevelopment Authority (URA) urban planning and design director Andrew Fassam said about 1.75 million sq m of gross floor area could stem from these parcels, about four times the area of nearby Marina Bay Financial Centre. The 11 sites may be released individually in future land sales programmes or combined with neighbouring plots.

    However, the four mixed-use land parcels to be jointly developed by Malaysia and Singapore as part of the railway land swop deal are expected to be vested for development next year. The four land parcels have a gross floor area of 341,000 sq m, part of which will be for office use. These sites and two other land swop deal plots can yield a combined gross floor area of 500,000 sq m.

    URA group director of land sales and administration Marc Boey said smaller sites have been released to address concerns that there might be a shortage of office space in 2014 once most ongoing developments are completed. These sites, such as one announced yesterday in Cecil Street and one on the corner of Peck Seah and Choon Guan streets, can be completed in about three years, he said.

    Apart from the government land sales programme, an additional supply of about 39,000 sq m of gross floor area of commercial space can be expected to be released by various government agencies in the first half of next year, the MND said.

    ESTHER TEO

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