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View Full Version : Novena mixed-use site up for sale after $211m bid



reporter2
22-09-12, 23:12
http://www.straitstimes.com/premium/money/story/novena-mixed-use-site-sale-after-211m-bid-20120922

Novena mixed-use site up for sale after $211m bid

Published on Sep 22, 2012

By Amanda Tan


A NOVENA site that could be used for homes, a hotel or commercial and medical facilities will go on sale after a bidder committed to offer at least $211.3 million.

The plot on the corner of Thomson and Irrawaddy roads is known as a white site, meaning it can accommodate a variety of functions.

In this case, the Novena land, which has a maximum permissible gross floor area of 28,043 sq m, must have at least 30 per cent allocated for a hotel.

The rest can be for residential, office or retail and complementary commercial uses, according to an Urban Redevelopment Authority announcement yesterday. The tender will be launched in about two weeks' time.

The site is in Novena's commercial hub and near malls like Velocity @ Novena Square, United Square and Square 2.

Tan Tock Seng Hospital, Novena Medical Centre, National Skin Centre, National Neuroscience Institute and Mount Elizabeth Novena Hospital are all in the vicinity.

Mr Nicholas Mak, SLP International's head of research, noted that the plot is one of the smaller commercial/white sites in the Government Land Sales (GLS) programme.

Development options include a hotel with at least 150 rooms and commercial space, he said.

The proximity to hospitals means that tourists here for medical reasons can be expected to visit the area.

Mr Mak pointed out that the development, if it includes homes, could attract families as it is close to several popular schools such as Anglo-Chinese School (Primary).

He expects the site to attract six to 10 bids, fetching a winning bid of between $272 million and $296 million, or $900 to $980 per sq ft per plot ratio.

Mr Lee Sze Teck, Dennis Wee Group's senior manager of training, research and consultancy, pointed out that the developer must make provisions for an underground link to Novena MRT station. He added that the Novena area can still accommodate another mall as the existing ones are not very big and serve a niche clientele.

United Square, for instance, has many child-related businesses, including enrichment centres.

Interest for projects in the core central region - where this site is - is picking up, Mr Lee said, so the sale of homes there should do well if current trends continue.

This site is on the reserve list of the GLS programme, hence it can be put on sale only if a developer makes a minimum acceptable bid to the Government.

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reporter2
23-09-12, 00:44
http://www.businesstimes.com.sg/premium/singapore/white-site-near-novena-set-sale-20120922

Published September 22, 2012

'White' site near Novena set for sale

URA to launch public tender for the Thomson Rd plot in about 2 weeks

By zeinab yusuf saiwalla

LAND PARCEL (http://www.businesstimes.com.sg/sites/businesstimes.com.sg/files/BT_20120922_ZYTHOMSON22A_176995.pdf)

A PRIME "white" site at Thomson Road/Irrawaddy Road has been triggered for sale by public tender after a developer offered a bid of at least $211.3 million, or $700 per square foot per plot ratio (psf ppr).

It is classified as a "white" site, which means it can be put to commercial, residential or hotel use. But the Urban Redevelopment Authority (URA) requires that a minimum 30 per cent of maximum permissible gross floor area (GFA) be set aside for hotel use.

It has a plot area of 0.66 ha, which translates to a maximum permissible GFA of 301,852 sq ft.

Analysts expect keen interest in the site given the location's proximity to Novena MRT Station and several medical centres, including Tan Tock Seng Hospital, Novena Medical Centre and Mount Elizabeth Novena Hospital.

"Considering the location, the price triggered is a fair value and I expect between five and eight bidders for the site," noted Lee Sze Teck, DWG's senior manager, training, research and consultancy.

The site is surrounded by many existing commercial developments, such as Velocity @ Novena Square, United Square and Square 2.

HSR Property Group special adviser Donald Han is confident that bids for the plot, which is in an already established commercial hub, will exceed $1,000 psf ppr.

"The retail component will push the pricing slightly higher than most site transactions we have seen over the past 12 months and it is likely to be a keen competition between UOL and Far East Organization, who already own properties in Novena and hence might put an aggressive bid," Mr Han said.

Given the site's flexibility in development options, analysts are uncertain about the exact nature projects will take but expect a combination of serviced apartments, hotel, and retail to cater to the various medical facilities in the vicinity.

"Tourists coming to Singapore for medical tourism can be expected to visit this area and this is a good draw for guests in the future hotel in this development," said Nicholas Mak, executive director, research and consultancy, at SLP International Property Consultants.

He added that "one option is that the future development would consist of a hotel with at least 150 rooms and commercial space. The space in the basement to the second storey will likely be retail space".

URA will launch the public tender for site in about two weeks and the tender period will subsequently be for eight weeks.