CapitaLand unit bags Bishan site for $505m

[reporter2]

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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http://www.businesstimes.com.sg/arch...-site-20121130

Published November 30, 2012

CapitaLand unit offers top bid for Bishan site

Plot is next to the group's Sky Habitat project; 2nd highest bid just 3.1% lower

By zeinab yusuf saiwalla


CAPITALAND, in a joint venture with Mitsubishi Estate Asia, offered the top bid for another residential site in Bishan, next to its current Sky Habitat development.

The $505 million, or $852.94 per square foot per plot ratio (psf ppr), bid was submitted through Allamanda Residential Development in which CapitaLand holds a 75 per cent stake.

According to market analysts, the CapitaLand JV top bid for the residential site at Bishan Street 14 was part of a strategic move to defend its earlier bid of $869.36 which was offered in February last year for the Sky Habitat site.

CapitaLand Residential chief executive officer Wong Heang Fine said: "CapitaLand Residential Singapore and Mitsubishi Estate Asia are pleased to have submitted the top bid for the Bishan Street 14 site, which is strategically located next to Sky Habitat. The joint venture plans to develop this well-located 11,227.80 sq m site into a condominium with approximately 700 units, which is expected to be launched in the second half of 2013."

The second highest bid was a joint submission by SingLand Homes, UOL Venture Investments and ORIX Investment & Management for $827.61 psf ppr. This was 3.1 per cent lower than CapitaLand's top bid.

Given that both the first and second highest bidders for the Bishan Street 14 plot submitted prices comparable to the record price set by CapitaLand for its Sky Habitat site, it could suggest that developers are confident about the current average selling price of the 99-year condominium project located in Bishan Central on Bishan Street 15.

Said Lee Sze Teck, senior manager, training, research and consultancy at DWG: "The estimated breakeven price could be between $1,350 and $1,400 psf and the probable selling price could be between $1,650 and $1,700 psf which is similar to Sky Habitat's selling prices."

However, unlike the bid for the Sky Habitat site, which drew close to 20 bidders, yesterday's tender for the site at Bishan Street 14 attracted only nine bids.

"There are less 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," explained Ong Teck Hui, Jones Lang LaSalle's national director, research and consultancy.

Pinehill Investments and a consortium comprising Frasers Centrepoint's FCL Topaz, Far East Orchard Limited and China Construction (South Pacific) Development, were tied in third place for their bid of $780.16 psf ppr.

Other bidders for the subject site included Straits Steamship Land's wholly owned subsidiary Acresvale Investment ($770.68) and MCL Land Limited ($759.90).

According to Mr Ong, the relatively high bids suggest a healthy demand among developers.

"Other than the top two bidders, most of the others placed bids above $700 psf ppr, keeping with recent observations that bidders seem to be prepared to pay more for sites under current market conditions."

The lowest bid was by Mezzo Development for $621.42 psf ppr.

[reporter2]

http://www.todayonline.com/Business/Property/EDC121130-0000064/S$505m-top-bid-for-Bishan-site

S$505m top bid for Bishan site

04:46 AM Nov 30, 2012


SINGAPORE - The tender for a large private residential site near Bishan MRT Station garnered nine bids by the close yesterday, with the top bid of S$505.1 million coming from Allamanda Residential Development, a subsidiary of Singapore's largest listed developer, CapitaLand.

The 99-year leasehold site at Bishan Street 14, released from the Confirmed List of the Government Land Sales (GLS) programme, sits on 120,855 sq ft. With a plot ratio of 4.9, it has a maximum allowable gross floor area of 592,189 sq ft and can be developed into about 645 homes.

The top bid translates to S$853 per sq ft per plot ratio and is 3.1 per cent higher than the second best bid from a consortium of SingLand, UOL and Orix.

Mr Lee Sze Teck, Senior Manager of Training, Research and Consultancy at DWG, said: "CapitaLand put in a strong bid to defend its earlier site, for which it paid S$869 psfppr in February last year." The project on the earlier site, Sky Habitat, is expected to get its Temporary Occupation Permit in 2015.

He noted that the current bid put in by the CapitaLand unit was 1.8 per cent lower than its previous bid in February last year, while the one jointly submitted by Singland, UOL and Orix was 4.7 per cent lower than their previous bid.

He said: "This means that developers believe that the current average selling price of Sky Habitat is a fair price for the location." He estimated the breakeven price at between S$1,350 and S$1,400 psf and the selling price at between S$1,650 and S$1,700 psf, on par with Sky Habitat.

Amenities in the area include schools, shopping malls, a swimming complex and the CPF Building. If the development is oriented towards Bishan Road, it will enjoy unblocked views all the way to Thomson and future residents can even see MacRitchie Reservoir, Mr Lee added.

The Housing and Development Board, as the Government's land sales agent, will award the tender at a later date.

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The top bid works out to $853 per sq ft (psf) per plot ratio (ppr)

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.

How do they come up with such a high break even price? that is $500 -$550 more than the price paid for the land? I am sure the cost of construction can be made at <$100 ppr.

[phantom_opera]

How do they come up with such a high break even price? that is $500 -$550 more than the price paid for the land? I am sure the cost of construction can be made at <$100 ppr.

are you living in dream land? construction cost for any new mass market condo is 250psf minimum while slightly higher end could cost more than 300psf ... for Sky Habitat, the architect fee also is a bomb already

[windcar]

guess I have not been following the cost price for quite a long time!