Far East beats 11 rivals in Hillview site tender

[mr funny]

http://www.businesstimes.com.sg/sub/...07140,00.html?

Published April 29, 2011

Far East beats 11 rivals in Hillview site tender

Offer of $289.8m or $672.61 psf ppr 2.7% higher than closest competitor's

By KALPANA RASHIWALA


A STATE tender for a 99-year leasehold site at Hillview Avenue that can yield 400 or more apartments and some retail space attracted a strong turnout of 12 bids yesterday.

The highest bid was from Far East Organization for about $289.78 million or $672.61 per square foot per plot ratio (psf ppr). This was 2.7 per cent higher than the next highest offer of $655.05 psf ppr from a tie-up between Sing Holdings and Fragrance Group. The lowest bid of $408.05 psf ppr was from Hiap Hoe subsidiary Leng Hoe Development.

The 1.4 hectare site can yield a maximum gross floor area of 430,825 sq ft, of which up to 15 per cent or 64,583 sq ft is allowed for commercial uses for the provision of convenient retail amenities for Hillview residents.

Notwithstanding the site's 15 per cent retail component, market watchers could not help pointing out that the $673 psf ppr price fetched for the latest plot is among the highest for 99-year suburban sites which can be developed into private homes to be sold at state tenders recently.

Colliers International's director of research and advisory Chia Siew Chuin estimates the breakeven cost for a new project on the site at about $1,100 psf.

Another analyst suggested that given that agents are indicating prices of well over $1,000 psf for Wing Tai's Foresque Residences at Petir Road, a new project on the Hillview Avenue site, which is near the upcoming Hillview MRT Station, should be able to command a price premium.

Chng Kiong Huat, executive director, development & planning, Far East Organization, said: 'This is an excellent opportunity for us to create another exciting trans-urban village similar to the chic Greenwich Village and The Greenwich at Seletar Hills which was very well received by the market. The development will have a distinctive architecture that capitalises on the beautiful views of the surroundings.'

The commercial component in the proposed Hillview development will offer a variety of food and beverage options, as well as retail and lifestyle services.

'This will add new energy and vibrancy to the neighbourhood,' Mr Chng said.

Credo Real Estate executive director Ong Teck Hui too reckons the commercial component is likely to enjoy strong patronage from residents in the vicinity.

'There's a lack of such amenities in the immediate area. Currently, the nearest shops and eating places are at The Rail Mall, along Upper Bukit Timah Road, or within the HDB estates in Bukit Batok New Town,' Mr Ong added.

Far East's Mr Chng said the group is familiar with the Hillivew location, having developed a number of projects there.

These include Hillview Regency, Glendale Park and Hillvista. Far East also recently launched The Lanai and the nearby Junction 10 and The Tennery.

Bidders at yesterday's tender include Sim Lian; Centurion RE; a partnership between City Developments and Hong Leong Holdings; a Singapore Land-UOL Group tie-up; Tuan Sing; Frasers Centrepoint; Han Chee Juan's Teneriffe Development; and CEL Development.

Asset Legend Limited, which is not incorporated in Singapore, also took part in yesterday's tender.

[mr funny]

http://www.straitstimes.com/Money/St...ry_662475.html

Apr 29, 2011

Hillview Avenue site draws 12 bidders

$289.8m offer by Tuas Technology Park tops bid for 1.4ha plot

By Dennis Chan, Deputy Money Editor


DEVELOPERS' appetite for choice residential sites shows no signs of abating despite four rounds of property cooling measures, judging by the number of bids for a government land tender.

A site in Hillview Avenue that can be used for both commercial and residential development drew 12 bidders at the close of the Urban Redevelopment Authority (URA) tender yesterday.

Topping the bids was Tuas Technology Park, which is controlled by the estate of the late property tycoon Ng Teng Fong and Orchard Parade Holdings' OPH Marymount. It offered $289.8 million for the 1.4ha site, which has a maximum permissible gross floor area (GFA) of 430,825 sq ft.

The amount works out to $672.60 per sq ft of GFA, well ahead of the $570 to $630 psf range analysts had projected.

Despite the current lack of access to MRT stations and amenities, analysts had expected the site to appeal to developers as it is near the future Cashew and Hillview MRT stations of the Downtown Line 2, which is scheduled for completion in 2015.

The 99-year leasehold plot, which can accommodate about 370 housing units, is also within an established private housing estate and is easily accessible via major roads and expressways.

To provide amenities for residents in the area, up to 64,583 sq ft of the total permissible GFA of 430,825 sq ft can be set aside for commercial use.

Colliers International director of research and advisory Chia Siew Chuin noted that an additional attraction of the site could be potential spill-over benefits from the future development of land along the Malaysian rail track.

The Singapore and Malaysian governments have agreed to relocate the Malaysian railway station from Tanjong Pagar to Woodlands by July 1.

'This explains the keen level of interest received - a total of 12 contenders,' said Ms Chia.

'The highest bid price at $673 per sq ft... is generally reflective of market expectations, where the price gaps between the top three bids are about 3 per cent to 8 per cent apart.'

The anticipated break-even cost for this project is expected to be about $1,100 per sq ft, she added.

This would suggest a selling price in excess of $1,200 psf - an average price tag some analysts had earlier predicted - when the project is launched.

The Government has continued to crank up its land sales programme to satisfy demand for private homes.

Just this week, three sites, including one also in Hillview Avenue, were released for sale.

This site was put on the reserve list while the other two - at Flora Drive and Woodlands Avenue 2/Rosewood Drive - went straight to tender.

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