Hotel, residential plots put up for tender

Published on Sep 06, 2012

By Amanda Tan


TWO sites were put up for tender yesterday - the first hotel site in the Jurong Lake District and a residential plot near the future Beauty World MRT station.

Both are reserve list sites. Unlike those on the confirmed list, they go on sale only when a developer agrees to bid a minimum sum acceptable to the Government.

A 1.02ha site in Jalan Jurong Kechil - near Upper Bukit Timah - slated for private apartments was first made available for sale back in 2006. A developer recently committed to bid at least $24 million for the plot, which can also be used to build retirement housing. It comes with a lease option of 30, 45 or 60 years.

Property consultant Nicholas Mak said that the site is "nestled within the established private residential estate of Upper Bukit Timah", near the future Beauty World MRT station, to be ready by 2015.

Mr Mak, SLP International's head of research, noted the high investment potential of the future project, given its proximity to the German European School and Ngee Ann Polytechnic.

He said that the price of the land will be lower than that of the usual 99-year leasehold parcels on sale from the Government and that most bidders will go for the 60-year lease. Experts expect a top bid of between $30.7 million and $43 million, or $200 to $280 per sq ft per plot ratio (psf ppr). Five to 10 bids are likely.

The 99-year leasehold hotel site - the first in the Jurong Lake District - was put on sale after a developer agreed to bid not less than $102 million. It was made available for sale in May.

The 0.9ha land parcel, estimated to yield 510 rooms, is envisaged as a distinctive hotel with a garden setting.

Mr Lee Sze Teck, Dennis Wee Group's senior manager of training, research and consultancy, noted that Jurong East will be developed into the next major commercial hub outside the Central Business District.

"The parcels of land along Jurong Town Hall Road and Jurong Gateway are zoned commercial. If all these are developed, there will be a critical mass of businesses operating there," he said.

The successful bidder is likely to build a four-star 700-room business hotel to cater to the growing commercial hub. Hence, the top bid could be between $650 and $700 psf ppr, Mr Lee said.

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