http://www.businesstimes.com.sg/sub/...03940,00.html?
Published February 10, 2012
Bedok South Ave 3 site attracts 7 bids
Top offer of $534.22 psf ppr just 1.5% above nearest rival's
By MINDY TAN
(SINGAPORE) A 99-year leasehold plot at Bedok South Avenue 3 drew seven bids yesterday, with the top bid from joint bidders, Far East Organisation's F.E. Lakeside, Frasers Centrepoint's FCL Topaz, and Sekisui House Singapore, at $345.9 million, or $534.22 per square foot per plot ratio (psf ppr).
While the seven bids received may seem lacklustre, coming on the back of the hotly-contested site at Jervois Road which last week drew a whopping 17 bids, it does not signal waning interest, said Credo Real Estate executive director Ong Teck Hui.
'The absolute price of nearly $346 million is hefty and such sites are usually only contested by the bigger players. For example, the Mt Vernon site which fetched $388 million had only 5 bidders while the $408 million Jalan Lempeng site attracted 8 contestants,' he noted.
'The tender participation and bid prices show that developers are still confident of the market but are also realistic in pricing their bids in trying to secure sites,' he said. 'At $534 psf ppr, the top bid is in line with recent tenders for similar sites in suburban locations near MRT stations.'
The top bid of $534.22 psf ppr was a thin 1.5 per cent higher than the next highest offer of $526.34 psf ppr from UVD, a joint venture company between Singapore Land and UOL Group.
A third bid came from Kingsford Development, at $301.2 million, or $465.10 psf ppr.
An ACRA search shows that the company has three shareholders, of whom one is based in Shenyang, China.
The lowest bid came from Soilbuild Group, at $235.2 million, or $363.29 psf ppr.
Other bidders include MCL Land; a joint bid by Sunmaster Holdings, Intrepid Investments, and Hong Realty; and Mezzo Development.
The three joint venture partners who submitted the top bid - Far East Organization, Frasers Centrepoint, and Sekisui House - expect the site, which is located next to Bedok Court and has a maximum gross floor area of about 647,491 sq ft, to yield an estimated 600 units comprising a mix of one to four-bedroom apartments.
The partners had previously collaborated for the 992-unit Watertown in Punggol, of which 854 units have been sold since its official launch on January 20. In addition, Far East Organization and Frasers Centrepoint had previously worked together to develop the Waterfront Collection at Bedok Reservoir.
Li Hiaw Ho, executive director at CBRE Research said: 'The site is attractive enough to have garnered seven bids from developers. The top bid of $345.9 million or $534 psf ppr will work out to a breakeven cost of around $950 psf.'
Based on caveats lodged from November last year to date, it is likely that the units in the new residential project will be able to fetch around $1,100 psf, he said.
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