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Thread: China SOE unit MCC Land is top bidder for Yishun EC site

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    Default China SOE unit MCC Land is top bidder for Yishun EC site

    http://www.businesstimes.com.sg/sub/...23940,00.html?

    Published March 12, 2010

    China SOE unit MCC Land is top bidder for Yishun EC site

    By KALPANA RASHIWALA AND EMILYN YAP


    (SINGAPORE) MCC Land, part of Chinese state- owned enterprise Metallurgical Corporation of China (MCC Group), has emerged top bidder for an executive condominium site at Yishun Avenue 11.

    Its bid of $127.8 million or $281 per square foot per plot ratio (psf ppr) was 7.5 per cent above the next highest offer of $261.68 psf ppr from fellow mainland Chinese group Qingjian Realty.

    The tender for the 99-year leasehold plot drew 10 bids, with the lowest bid from SK Land (owned by a Lee Boon Teow) at $103 psf ppr.

    If MCC Land is awarded the site, it will mark the MCC Group's maiden Singapore property development.

    MCC Land managing director Tan Zhiyong told BT that the group's proposed scheme for the site is an eco-friendly project with over 400 units comprising two, three and four-bedroom apartments. The breakeven cost will be in the $500-550 psf region and the plan is to launch the project this year.

    Mr Tan would not be drawn on likely selling prices but said: 'We will keep it affordable, given the buying eligibility criteria for exec condos of a maximum $10,000 monthly household income.'

    The developer will not build any shoebox units in the project, he said. 'We want to follow the Singapore government's vision for ECs. Let the people have enough room to pro-create and set up a family.'

    This is the second time MCC Land has taken part in a Singapore Government Land Sales tender. Its first attempt, a week ago, was the tender for an EC site near Buangkok MRT Station. In that tender, it emerged second-highest bidder, pipped by a tie-up between Frasers Centrepoint and Lum Chang Building Contractors - by 1.4 per cent.

    While MCC Land is new to Singapore, the MCC Group's Singapore construction unit China Jingye Engineering Corporation Ltd (Singapore Branch) has been doing business here for almost 14 years. It is the main contractor for Universal Studios at Resorts World Sentosa.

    Mr Tan told BT that if the group is awarded the Yishun EC site, it will 'definitely explore' the possibility of handling the project's construction in-house. 'But we will consider outside parties to handle the construction if they can do it cheaper. Whatever it is, we will not compromise on quality,' he said.

    'Looking at the beautiful environment in the location - it is next to parks - we will complement this by using environmentally friendly technology and concepts for our project, such as having solar panels for the general areas and recycling rainwater for non-potable use.'

    MCC Land will continue to seek good development land - be it residential, commercial or mixed-use sites - across the island, he said.

    MCC Group - with dual listings on the Hong Kong and Shanghai bourses - is involved in engineering, procurement and construction, mining, paper-making, equipment fabrication and property development. It is a Fortune 500 company.

    Seven of the total 10 bids in yesterday's tender exceeded the $150-210 psf ppr that the site was estimated to fetch when it was launched in January by the Housing & Development Board.

    But market watchers yesterday were not too surprised by the strong bids, pointing to robust sales recently for the launch of The Estuary, a 99-year leasehold private condo project in a better location in Yishun that fronts Lower Seletar Reservoir and is near Khatib MRT Station.

    More than 500 units in The Estuary have been sold at an average price of $758 psf. 'The developer of the latest EC site in Yishun might be able to achieve an average selling price of about $650 psf,' said an industry observer.

    CB Richard Ellis executive director Li Hiaw Ho said that while the latest EC plot may be less accessible, future residents will nonetheless enjoy a serene environment as it is close to Yishun Park and Orchid Country Club. 'It's also a short drive from Northpoint mall and other amenities at Yishun Central,' he said.

    ECs are a hybrid of public and private housing. EC projects have initial eligibility, ownership and resale restrictions similar to public housing, but these are lifted after 10 years.

    Other bidders in yesterday's tender included United Engineers unit Maxdin (about $257 psf ppr), Far East Organization ($256 psf ppr) and JBE Development, controlled by Hongkonger Patrick Lam, who developed The Luxe in Handy Road, at $227 psf ppr.

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    http://www.straitstimes.com/Singapor...ry_501047.html

    Mar 12, 2010

    China firm tops bid for EC site

    MCC's $281 psf bid for Yishun site beats experts' forecast of $150-$210 psf

    By Joyce Teo, Property Correspondent


    A CHINESE firm new to Singapore's residential development scene has topped the bidding for an executive condominium (EC) site in Yishun.

    Beijing-headquartered MCC Land (Singapore), which lost out on last week's tender for an EC site in Sengkang, was the highest bidder for the 15,074 sq m Yishun plot.

    Its $127.8 million bid, or $281.31 per sq ft (psf) of gross floor area, easily beat earlier analysts' expectations of $150-$210 psf of gross floor area.

    Qingdao-based firm Qingjian Realty - which is behind the Natura Loft HDB design, build and sell scheme in Bishan - came in second, with a bid of $118.89 million or $261.71 psf of gross floor area.

    Maxdin, part of United Engineers' unit Greatearth Holding, was edged into a close third place with its offer of $117 million or $257.53 psf of gross floor area.

    Among the other unsuccessful contenders were Far East Organization, Sim Lian Land and Boon Keng Development.

    Most bidders also tendered for the Sengkang site last week.

    Many of them are construction companies with the know-how to control and manage building costs, and are well placed to keep development expenses as low as possible, experts noted.

    'The results of this second EC site tender demonstrate developers' fervour in acquiring sites for mass-market housing,' said CBRE Research executive director Li Hiaw Ho.

    MCC Land is part of listed Metallurgical Corporation of China, one of the world's largest engineering and construction firms.

    It has provided engineering and construction services in Singapore, and in 2008 clinched a contract for Universal Studios Singapore at Resorts World Sentosa. Qingjian Realty also began operations here as a contractor.

    The Yishun EC plot can yield about 385 units and is near the completed Lilydale EC project. In the resale market of January-February this year, units there were selling at between $510 psf and $540 psf.

    Although not within walking distance of an MRT station, the Yishun site is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir.

    CBRE Research said the winning bid will translate into a break-even price of around $520 psf.

    At this level, the final selling price of the EC units is likely to be around $600-$650 psf, said Colliers International's executive director of investment sales Ho Eng Joo.

    The winning bid, he said, took its cue from last week's Sengkang EC tender, which attracted a higher-than-expected top bid of $315 psf of gross floor area.

    Mr Li said the success of the recent launch of The Estuary private condominium in Yishun Avenue 1 had boosted developer confidence in selling EC projects in this location to first-timers. Over 500 units of The Estuary were reportedly sold at a price of $750-$800 psf, he said.

    The winners of the Sengkang and Yishun EC tenders have to set aside 95 per cent of units in the initial month of sale for first-time home buyers.

    ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Only those with a gross monthly household income of $10,000 or less can apply.

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    [quote=mr funny]http://www.businesstimes.com.sg/sub/...23940,00.html?

    Published March 12, 2010

    China SOE unit MCC Land is top bidder for Yishun EC site

    By KALPANA RASHIWALA AND EMILYN YAP



    Mr Tan would not be drawn on likely selling prices but said: 'We will keep it affordable, given the buying eligibility criteria for exec condos of a maximum $10,000 monthly household income.'

    The developer will not build any shoebox units in the project, he said. 'We want to follow the Singapore government's vision for ECs. Let the people have enough room to pro-create and set up a family.'

    lets hope so

    if true then this will be good ..
    for once there are decent sized unit .. apart from MM units meant for singles ..

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