http://www.straitstimes.com/archive/...-505m-20121130
CapitaLand unit bags Bishan site for $505m
Nine bidders vie for 11,227 sq m plot which can have about 700 homes
Published on Nov 30, 2012
By Esther Teo, Property Reporter
IN A hotly-contested tender, CapitaLand has defended its turf with a $505 million top bid for a prime Bishan site right next to one of its existing projects.
The site, alongside Sky Habitat, is set to boast 700 homes.
The top bid works out to $853 per sq ft (psf) per plot ratio (ppr) for the Bishan Street 14 land parcel - 1.8 per cent lower than its winning bid in February last year for the Sky Habitat site. The earlier site attracted 19 bidders.
A joint bid by SingLand Homes, UOL Venture Investments and Orix Investment and Management came in second with a $490.1 million bid - or 2.9 per cent lower at $828 psf ppr.
Nine bidders participated in the tender. They included MCL Land, Frasers Centrepoint, Far East Organization and Mezzo Development, with the lowest bid of $368 million, or $621 psf ppr.
Experts say bidders seem to be prepared to pay more for sites under current market conditions.
Mr Ong Teck Hui, Jones Lang LaSalle Real Estate's national director of research and consultancy, noted that apart from CapitaLand, none of the other 18 bidders tendered above $700 psf ppr for the Bishan site sold last year.
In the current tender, however, seven developers placed bids above $700 psf ppr, some of them significantly above.
"There are fewer bidders contesting for this site compared to the earlier tender because the interested parties know that bidding will be very competitive, so unless they are prepared to put in a robust offer, they might as well not try," he added.
Dennis Wee Group's senior manager of training, research and consultancy, Mr Lee Sze Teck, said that the estimated breakeven price could be between $1,350 and $1,400 psf.
The probable selling price could be between $1,650 and $1,700 psf which is similar to Sky Habitat's selling prices, he said.
The top bid was submitted by Allamanda Residential Development - a 75:25 joint venture by CapitaLand Residential Singapore and Mitsubishi Estate Asia.
The firm said it plans to develop the 11,227 sq m site into a condominium, with about 700 units expected to be launched in the second half of next year.
"We will create an exciting and varied product in terms of architectural design," said Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore.
"At the same time, the new condominium will complement Sky Habitat in terms of its unit mix and unit size. Both developments will offer home buyers a choice lifestyle living right at the heart of popular Bishan town," he added.
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