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Thread: Little India 'white site' could fetch up to $280m

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    Default Little India 'white site' could fetch up to $280m

    Published July 6, 2007

    Little India 'white site' could fetch up to $280m


    THE Urban Redevelopment Authority (URA) yesterday launched a 'white site' at the junction of Race Course Road and Rangoon Road for sale by public tender. Experts believe the 1.36 ha could fetch as much as $280 million.

    The 99-year leasehold site, which is directly above the Farrer Park MRT Station in Little India, has a 4.2 plot ratio, which means it can generate a maximum gross floor area (GFA) of about 57,225 sq m.

    'Judging by the nearby City Square Residences, the site could fetch $400-$450 per square foot per plot ratio,' said Lui Seng Fatt, regional director at Jones Lang LaSalle. This works out to $246.4-$277.2 million.

    The land parcel is zoned white, which means that it can be put to a range of uses including hotel, retail, dining, entertainment, office and residential. The site, however, comes with a URA requirement that at least 40 per cent of its maximum GFA to be allocated for hotel use.

    'The minimum quantum of hotel use will provide opportunities to meet the demand for hotel accommodation in this area given its location near the historic district of Little India, which is popular with tourists and locals,' the URA said.

    The successful bidder can then choose to develop the remaining 60 per cent of GFA for additional hotel and/or residential, commercial or hospital uses, the government body added. Allowing hospital use will help meet increased interest in private hospital developments, the URA said.

    The land parcel is one of the ten sites that were transferred from the reserve list to the confirmed List of the Government Land Sales Programme for the second half of 2007. The site was first offered in August last year, but saw no takers. The URA then decided to open up the plot to hospital development.

    Even then, a developer will be most likely to use the remaining 60 per cent GFA for residential and commercial space rather than hospital development, observers said.

    'Residential and commercial use will probably prevail because it provides better opportunities for that area,' Mr Lui said.

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    Default Re: Little India 'white site' could fetch up to $280m

    July 6, 2007

    URA puts up site near Little India for tender

    By Fiona Chan, Property Reporter

    A NEW development site near Little India was launched for tender by the Government yesterday, after almost a year of the plot languishing with no takers.

    The 1.36ha plot, above the Farrer Park MRT Station at the junction of Rangoon and Race Course roads, was first made available on the Urban Redevelopment Authority's (URA's) reserve list last August.

    But no developer came forward to bid for it, which is the only way a site on the reserve list can be launched for public tender. This prompted the URA to expand the potential use of the site to hospitals in April.

    Finally, the URA moved the plot to its confirmed list last month, to be put up for sale at a fixed date regardless of whether any interest has been expressed.

    The site has a total potential gross floor area of 615,965 sq ft. At least 40 per cent must be used for hotel rooms. The remaining floor area is 'white', which means it can be used for homes, shops, offices, hospital space or more hotels.

    Mr Lui Seng Fatt, the regional director and head of investments at Jones Lang LaSalle, believes that the best combination would be a complex with hotels, homes and a retail mall.

    He noted that the only comparable project in the area is City Development's City Square Residences, which also comprises condominium homes and a mall.

    'Hospital use itself is not fantastically profitable apart from medical suites, and those must be nearer to a hospital,' he said.

    The area set aside for compulsory hotel use can yield about 350 to 380 rooms - for 'quite a decent-sized hotel', he added.

    If the site is to host an allhotel development, Mr Lui expects it will fetch no more than $400 per sq ft per plot ratio (psf ppr), or about $246 million.

    For a higher-yield mixed development with homes and shops, the bids could go up to $450 psf ppr, or $280 million.

    This site is one of three that are being put up for tender by the URA this month. The other two are a white site in Marina View and a hotel site in Upper Pickering Street.

    Last week, the URA also released a white site in Outram Road on its reserve list.

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