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vboy
26-05-11, 12:35
CapitaLand submits highest bid for white site at Jurong Lake district
By Lois Calderon | Posted: 25 May 2011 2247 hrs
http://www.channelnewsasia.com/imagegallery/store/phpiZLqgW.jpg Photos 1 of 1 ">http://www.channelnewsasia.com/images/dotline_240.gif
A man walks past a CapitaLand advertisement in Singapore. (file pic)

SINGAPORE: Southeast Asia's largest property developer CapitaLand has submitted the highest bid of S$968.99 million for a vast "white site" property in the Jurong Lake district.

The Urban Redevelopment Authority (URA) closed the tender for the site, after receiving five bids in total.

The top bid also translates to about S$1,012 per square foot per plot ratio.

The next highest bid of S$917 million came from the joint-venture between United Engineers and Singapore Press Holdings.

Analysts said they expect the 1.8-hectare site to be turned into a vibrant commercial hub that will rival the one in Tampines.

The "white site", the second to be put up for sale by the URA, gives developers the flexibility to change the mix of use or the quantum of each use stipulated in the conditions of tender, without having to pay a differential premium.

The sale site at Boon Lay Way is ideal for sizeable mixed-use development with a potential gross floor area of about 88,980 square meters.

CapitaLand's offer is approximately double the S$510 million trigger bid, according to Li Hiaw Ho, executive director at CBRE Research.

The bid was launched through JG Trustee and JG2 Trustee, a joint venture between CapitaMalls Asia, which has a 50 per cent stake, and HSBC Trust Services (30 per cent) and CapitaLand (20 per cent).

If successful, the property would be near CapitaLand's IMM Building and its upcoming JCube.

CBRE estimates an average monthly rent of S$15 per square foot (psf) and S$6 psf for the retail and office space respectively.

"It is likely that a pure commercial development with a high proportion of retail element will be developed on this 1.8 ha parcel," Mr Li said.

A successful award of the property would hasten the development of Jurong East as a vibrant commercial hub, he added.

"Given the sizeable amount of retail pipeline supply from the neighbouring Lend Lease's and JCube projects as well as existing retail amenities in this area, it would offer residents/workers a retail experience rivalling that of Tampines in the east," Mr Li said.

The other bidders for the site were the partnership of JL Retail Management and JL Office Management, as well as a consortium composed of the Far East Civil Engineering, OPH Marymount, Sekisui House and China Construction (South Pacific) Development Co.

Lowest bidder Aquamarine Development and FC Commercial Trustee, meanwhile, has put its offer price at S$639.88 million.

-CNA/ac

DC33_2008
26-05-11, 13:06
Capitaland is all over the country. Bedok site and now JLD site.

amk
26-05-11, 13:12
Capitaland is all over the country. Bedok site and now JLD site.

actually CAPL is ONLY into "prime" OCR locations. Jurong East, Bedok, Bishan. None of those ulu land parcel (like Pasir Ris/Sembwang ?) even got a bid from CAPL.

There is another "prime" lot at Queenstown MRT. Will it throw another 1bln on it ?

DC33_2008
26-05-11, 13:16
I am not surprised if they will do it. They have the capability to integrate residential, commerical and infrastructure. They would rather pay for this than to go for enbloc like laguna or pine grove. The capital retail arm will continue to make $ with the reits. Wise strategy.
actually CAPL is ONLY into "prime" OCR locations. Jurong East, Bedok, Bishan. None of those ulu land parcel (like Pasir Ris/Sembwang ?) even got a bid from CAPL.

There is another "prime" lot at Queenstown MRT. Will it throw another 1bln on it ?

kingkong1984
26-05-11, 13:17
Cashland. A key player in Sever Asset Inflation?

ay123
26-05-11, 13:29
capland definitely did their homework or why would they 56% above landlease. their long term biz strategy when JDL is fully develop into 2nd marina. by then $1012 really like peanut. capland is good at managing retail/commercial leh. every mall under their management all doing very well. capland also want to monopolise jurong. surprise why kepland submit such low bid.

DC33_2008
26-05-11, 13:58
They are already there. IMM.
capland definitely did their homework or why would they 56% above landlease. their long term biz strategy when JDL is fully develop into 2nd marina. by then $1012 really like peanut. capland is good at managing retail/commercial leh. every mall under their management all doing very well. capland also want to monopolise jurong. surprise why kepland submit such low bid.

fclim
26-05-11, 14:03
and JCube (formerly Jurong Entertainment Centre)

noblebaby
26-05-11, 14:05
this site is JV between CMA (50%), CMT (30%) and CAPL (20%).

it will be 40% for commercial, and 60% for retail.


They are already there. IMM.

rattydrama
26-05-11, 14:40
actually CAPL is ONLY into "prime" OCR locations. Jurong East, Bedok, Bishan. None of those ulu land parcel (like Pasir Ris/Sembwang ?) even got a bid from CAPL.

There is another "prime" lot at Queenstown MRT. Will it throw another 1bln on it ?

birds of same feathers flocks together :p

mr funny
27-05-11, 17:53
http://www.businesstimes.com.sg/sub/suite/story/0,4574,440549-1306439940,00.html?

Published May 26, 2011

$969m top bid for Boon Lay Way site

Offer by CMA, CMT and CapitaLand at $1,012 psf ppr

By EMILYN YAP


CAPITAMALLS Asia (CMA), CapitaMall Trust (CMT) and CapitaLand have together put in the top bid of $969 million or $1,012 per square foot per plot ratio (psf ppr) for a 99-year leasehold white site at Boon Lay Way, next to Jurong East MRT station.

The tender for the plot closed yesterday with five bidders in all. A joint venture between units of United Engineers and Singapore Press Holdings submitted the second highest bid of $917 million or $957 psf ppr. This is around 5 per cent less than the top offer.

The third highest bid of $785.1 million or $820 psf ppr came from a Keppel Land-led joint venture together with Perennial Real Estate.

Other participants in the tender were Frasers Centrepoint, and a tie-up involving Far East Organization, Orchard Parade Holdings, Sekisui House and China State Construction International Co.

The site has a maximum permissible gross floor area (GFA) of 957,772 sq ft. The winning developer can build a mixed-use project but has to set aside at least 40 per cent of the maximum permissible GFA for office use.

The remaining space can go towards commercial, hotel, residential and other uses allowed under the 'white' zoning.

CMA, CMT and CapitaLand's wholly-owned unit, CapitaLand Commercial, submitted their bid through JG Trustee and JG2 Trustee in a joint venture. CMA holds a 50 per cent stake in the venture, CMT has a 30 per cent stake, and CapitaLand owns a 20 per cent stake.

The top bid exceeded forecasts made by some market watchers two months ago. 'The bid reflects a lot of confidence in the property market,' said Savills Singapore director (commercial leasing) Agnes Tay.

CBRE Research executive director Li Hiaw Ho believes that a commercial development with a strong retail element will take shape on the site. The developer could be looking at average monthly rents of $15 psf for the retail space and $6 psf for the office space, he said.

With more retail space coming from the JCube project and Lend Lease's site nearby, Jurong East could offer residents and workers 'a retail experience rivalling that of Tampines in the east', he added.

mr funny
27-05-11, 18:21
http://www.straitstimes.com/Money/Story/STIStory_672748.html

May 26, 2011

$969m bid for suburban site in Jurong

$200m above forecast - reflecting confidence in land outside city centre

By Esther Teo, Property Reporter


A PRIME mixed-use site in the Jurong Lake District has shattered price records with a top bid of just under $1 billion - almost $200 million more than the market expected.

The huge offer stunned analysts and dramatically underscored demand for well-located land in the up-and-coming area.

The knockout bid of $969 million - or $1,012 per sq ft (psf) per plot ratio (ppr) - came from heavyweights CapitaMalls Asia, CapitaMall Trust and CapitaLand.

It is easily the highest offer for any mixed-use site outside the city centre and reflects confidence in the suburban office market, the remaking of Jurong and the value that developers see in choice locations near MRT stations, say experts.

The second highest bid - $917 million lodged jointly by United Engineers and Singapore Press Holdings - was also far ahead of market expectations.

A Keppel Land-led joint venture with Perennial Real Estate offered $785 million. Frasers Centrepoint and private fund Phoenix trailed the field of five with a joint bid of $640 million, 34 per cent lower than the top offer.

At least 40 per cent of the maximum permissible gross floor area (GFA) on the site in Boon Lay Way and next to Jurong East MRT station must be for offices.

Savills Singapore's director of commercial leasing, Ms Agnes Tay, said she was 'pleasantly surprised' with the aggressive bids.

They suggest a shift of developers' interest to explore opportunities in suburban commercial land, especially when a substantial amount of office space has been released in the city over the past few years. 'Given limited suburban office supply, the Jurong site might provide good opportunities that developers see value in,' she added.

Experts also weighed in on what the site might be used for apart from offices.

Savills' Ms Tay said the remaining 60 per cent GFA could be used for apartments as there will be a good market for well-located homes.

However, CB Richard Ellis Research executive director Li Hiaw Ho said the project is likely to be a pure commercial development with a high proportion of retail space. Average monthly rents could be around $15 psf a month for retail and $6 psf for offices, he added.

'The successful award of this parcel would hasten the development of Jurong East as a vibrant commercial hub,' said Mr Li. 'Given the sizeable amount of retail pipeline supply from the neighbouring Lend Lease's and JCube projects as well as existing retail amenities in this area, it would offer residents and workers a retail experience rivalling that of Tam-pines in the east.'

SLP International research head Nicholas Mak also noted that CapitaMalls Asia and its partners looked keen to retain their market share of commercial space in the Jurong East MRT Station area. The IMM and JCube malls are both in the area and managed by CapitaMall Trust.

CapitaMalls Asia will hold a 50 per cent stake in the Jurong Lake project, HSBC Trust Services - as trustee of CapitaMall Trust - 30 per cent, and CapitaLand will hold the remaining 20 per cent.

The five bids the tender attracted suggest developers still want relatively big parcels of land, added Mr Mak.

'An estimated 1,000 homes will also be added around Jurong East MRT station to provide more opportunities to live and work in the area,' he noted.

'Office and retail development on the subject site stand to gain ready access to a large pool of labour and customers - of more than one million residents - from the surrounding established towns of Clementi, Bukit Batok, Jurong East and Jurong West.'

In June last year, Australian developer Lend Lease beat five other offers with a bid of $749 million, or $650 psf ppr, for a 1.9ha site in the same area. It has since clinched the National Development Ministry as an anchor tenant, which experts say would have encouraged developers to bid for the second Jurong Lake District site.

The previous record for a mixed-use site outside the Central Business District was for the site of nex shopping mall in Serangoon which sold for $850 psf ppr in 2008.

[email protected]