http://www.straitstimes.com/Money/St...ry_607820.html

Nov 27, 2010

Glitzy revamp ahead for Tanjong Pagar

Major projects will boost residential and office space in the area

By Cheryl Lim

REJUVENATING TANJONG PAGAR

THE dodgy bars and seedy karaoke pubs of Tanjong Pagar will soon be giving way to high-rise condominiums, glitzy hotels and plush offices amid a radical makeover for the area.

The multibillion-dollar revamp is being driven by the Government's strategy to promote new office, residential and other developments in the area.

There are also aims to make Tanjong Pagar the next waterfront 'city' and a potential rival to the iconic Marina Bay.

One eye-catching development underlines the scope and ambition of the area's revitalisation.

The mammoth GuocoLand development on the 1.5ha plot at the corner of Peck Seah Street and Choon Guan Street promises to be a landmark project and, at 280m high, among the three tallest buildings in Singapore.

The developer, which paid $1.7 billion for the site, plans to build the mixed-use project on top of Tanjong Pagar MRT station and spend up to $3 billion, according to earlier reports.

GuocoLand also indicated earlier that the development could consist of two towers with a hotel and office, residential and retail space.

Company secretary Dawn Lum said: 'The project will also be the first to incorporate a 'City Room' fronting a park. The City Room is a requirement by the Urban Redevelopment Authority (URA) to bring life to the area by creating inviting spaces for public use.'

Mr Colin Tan, head of research and consultancy at Suntec Chesterton International, predicts the development will play an 'earth-shaking' part in defining the future character of the area.

'If the property has more office space, we might see more office spaces coming up. If there are more residential units, then the residential status of the area might be reinforced,' he said.

A slew of other developments are also on the cards. Earlier this month, the URA opened tenders for a 0.23ha hotel site at the corner of Gopeng Street and Peck Seah Street. The 99-year leasehold site has a maximum gross floor area of 1,804 sq ft, and can be built up to 30 storeys. The site is opposite two other hotel plots sold by the URA in 2007.

More residential units are on the way as well. Keppel Tower and GE Tower will be turned into a high-rise condominium with shops and restaurants on the first floor.

The project is a result of a rare land-swop deal between real estate investment trust K-Reit Asia and Keppel Land.

Keppel plans to build two towers consisting of 620 apartments in total.

Heritage sites like the Tanjong Pagar Railway Station will be in on the action too.

The station will move to a new home in Woodlands as part of a historic land-swop deal with Malaysia, but the existing building will be conserved as the centrepiece of a new development.

Earlier this year, the Economic Strategies Committee highlighted Tanjong Pagar as the next waterfront 'city', pointing out that the neighbourhood's prime location at the fringe of the city, size and potential to support future growth have given it sufficient clout to rival Marina Bay.

Ms Agnes Tay, commercial director of Savills Singapore, sees high potential for office rentals in the area.

'The average Grade A rental rate in Tanjong Pagar is $6.50 per sq ft, up some 40 per cent from the peak in the second quarter of 2008,' she said.

But some analysts say those keen to enjoy the area's full potential will have to wait another 10 to 20 years.

Mr Ong Teck Hui, head of research at Credo Real Estate, said: 'The waterfront city idea is a long-term plan...The authorities can't push out so many sites at one time. The market won't be able to absorb it, and the demand may not be there.'

Mr Tan observed that the redevelopment of the area might prompt the sale of some commercial offices in the area.

'That possibility depends on whether the owners come together for collective sales,' he said.

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