http://www.businesstimes.com.sg/arch...gateway-tender
Published May 30, 2012
MCL Land narrowly tops Jurong Gateway tender
Tender price was just 0.08% more than the next highest bidder
By Kalpana Rashiwala
IN one of the tightest races at a land tender, MCL Land yesterday edged out its closest rival by just 0.08 per cent or 55 cents per square foot per plot ratio (psf ppr) to emerge as the highest bidder for a plum 99-year leasehold condo site near Jurong East MRT Station.
The Urban Redevelopment Authority tender drew 12 bids, attesting to the huge potential developers see in the Jurong Gateway precinct, which is shaping into a major suburban commercial hub with offices, shopping malls and recreational facilities.
MCL bid $369.388 million or $705.10 psf ppr. This was $288,000 more than the $369.1 million or $704.55 psf ppr offered by the second highest bidder, EL Development.
The top bid is the highest for a 99-year private housing site site offered under the Government Land Sales (GLS) Programme in Outside Central Region, said Credo Real Estate executive director Ong Teck Hui.
Yesterday's tender also marks the fifth time since the beginning of last year that a GLS private housing plot has fetched a top bid exceeding $700 psf ppr - after CapitaLand's Sky Habitat site in Bishan, United Engineers' Eight Riversuites plot in Bendemeer, an Alexandra Road plot bagged by City Developments and a Jervois Road plot bought by Singapore Land.
Market watchers noted the top four bids at yesterday's tender were in a tight range. MCL's top bid was 0.08 per cent above EL Development's price, 0.1 per cent above the third highest bid (by a Sing Holdings-Maxdin joint venture) and 1.2 per cent above the fourth highest bid (from a Singapore Land-UOL tie-up).
The land parcel can be developed into either a condominium, or flats and/or serviced apartments. MCL chief executive Koh Teck Chuan said that although serviced apartments are allowed, "quite likely we'll do a full condo project".
The group's proposed scheme involves a part 25-storey and part 38-storey development with close to 600 residential units. The bulk of the apartments will be one and two-bedroom units, although there will be some three and four-bedders. BT understands MCL Land's breakeven cost could be around $1,100 psf and market watchers would not be surprised to see MCL prepared to sell the project at about $1,300 psf on average.
SLP International managing director Peter Ow said: "If they have a lot of two-bedders and one-bedders, they probably can achieve about $1,500 psf on average for the project."
"This is really an area with a lot of potential, with shopping malls, offices and is earmarked as a business hub; it's also near an MRT station," he added.
SLP executive director Nicholas Mak had predicted a top bid of $620-680 psf ppr for the site when it was launched for tender in late April.
CBRE executive director Li Hiaw Ho said the number and quantum of bids reflected developers' confidence that there will be strong demand for private housing in this location. "Although this is the third site in Jurong Gateway to be put up for tender, it will be the first residential plot to be sold," he added.
It is within walking distance to Jurong East MRT Station and bus interchange. Two malls nearby, Jem and Westgate, are currently under construction and will be completed in 2013. Ng Teng Fong Hospital and Ng Teng Fong Community Hospital, also under construction, are located close by, Mr Li added.
Yesterday's tender saw participation from a gamut of developers, including a rare appearance at a state land tender by Wheelock Properties (Singapore). Its unit, Orchard Properties, bid about $672 psf ppr. In the 1990s, the group, formerly known as Marco Polo Developments, developed Parc Oasis condo near Chinese Garden MRT Station - one stop away from the plot tendered yesterday.
The latest site was triggered from the Government's reserve list after successful application by an unnamed party that undertook to bid at least $409.85 psf ppr.
At yesterday's tender, CapitaLand unit Areca Investment bid about $620 psf ppr, while Overseas Union Enterprise's OUE Reef Development offered $593 psf ppr. City Developments partnered TID Residential for a $534 psf ppr bid, the third lowest.
A tie-up between Far East Organization's listed vehicle Orchard Parade Holdings, Sekisui House of Japan, and China Construction offered $523 psf ppr. Vantage Properties, controlled by Lim Kim Hong and Lim Huixing, was the lowest bidder, at $479.12 psf ppr.
Reply With Quote
Originally Posted by Komo
