Paya Lebar push
By Cecilia Chow / The Edge Property | January 27, 2016 10:00 AM MYT
Tags: paya lebar

The area around the Paya Lebar MRT interchange station is undergoing a massive transformation. Hoardings have been put up around two plots totalling 422,275 sq ft that will be developed into Paya Lebar Central (PLC), a massive mixed-use scheme by a 70:30 joint venture (JV) between Abu Dhabi Investment Authority (ADIA) and Australian property group Lendlease.

When completed in 2018, PLC will have three Grade-A office towers totalling 874,717 sq ft, a shopping mall with close to half a million sq ft of retail space and more than 400 units in three residential towers. The project will be connected to the Paya Lebar MRT station, which is also an interchange for the East-West and Circle Lines.

The purchase price paid by the JV for the 99-year leasehold site at Paya Lebar Central was $1.67 billion, which translates to $943 psf per plot ratio (psf ppr). PLC will be the first mixe duse scheme with residences that is linked directly to the Paya Lebar MRT Inter change station. That will attract both homebuyers and investors. The project will be the “first international development located in Paya Lebar Central” and it will be “ transformational”, says Richard Paine, Lendlease’s managing director for Paya Lebar Central.

The upcoming development by Abu Dhabi Investment Authority (ADIA) and

Lendlease will form the cornerstone of Paya Lebar Central

Owing to the scale and quality of the overall scheme as well as its mix of uses, “PLC is the catalyst for Paya Lebar Central”, says Chris Archibold, JLL’s international director and head of markets.

There is nothing comparable to the residential apartments at PLC in Paya Lebar Central at the moment. The nearest residential project is Katong Regency, which sits on top of One KM shopping mall and was completed earlier this year. The project is a five-minute walk to the Paya Lebar MRT station and units in the freehold development were fully sold within the first week of its launch in 2012. The average price then was $1,600 psf, although some of the one-bedroom units of 581 sq ft achieved highs of $2,009 psf.

One KM has a wide mix of retail and F&B offerings, as well as a cluster of enrichment centres. The 210,000 sq ft mall has a total of 150 shops and was considered the first full-fledged shopping mall in Paya Lebar when it opened in December 2014. The mixed-use project — One KM and Katong Regency — is a redevelopment of the former Lion City Hotel and the adjacent former Hollywood Theatre, which were purchased by UOL Group in January 2011 for $313 million.

It marked the first major redevelopment undertaken by a property group since the announcement by the URA that the area around the Paya Lebar MRT station would be designated “Paya Lebar Central”, a new commercial hub, under its 2008 Master Plan.

Paya Lebar Central and Jurong Lake District are the two new decentralised hubs that are part of the government’s plan to bring jobs closer to home and ease congestion in the CBD. To realise its vision for Paya Lebar Central, the URA had said it intends to put up for sale about 12ha (1.29 million sq ft) of land around the Paya Lebar MRT station for development. This will translate to about 5.38 million sq ft of commercial space, with the largest developments to be concentrated around the junction of Tanjong Katong Road and Sims Avenue, to anchor the area with retail, hotel and office developments, according to URA.

New offices