15 developers showed interest and bidded for a state tender of a 99-year leasehold site on Holland road. The response is indicative of how big of a catch the site is.
Prime site for commercial and residential development
While the bid prices were not revealed under the dual-envelope concept and price tender mode, the Urban Redevelopment Authority (URA) has released the bidders’ names. Under this scheme, bidders are required to submit concept proposals and tender prices in separate envelopes.
The concept proposals will be reviewed by the Concept Evaluation Committee and appraised according to the design concept, quality of public realm and track record. After whittling down the tenders to those with acceptable concepts, the site will then be awarded to the highest bidder.
The bidders who came forward for this tender included:
- A consortium with Far East Organization
- Sekisui House and an affiliated company
- Lendlease in a tie-up with Pontiac Land, Perennial Real Estate Holdings in partnership with Qingjian Realty
- GuocoLand in partnership with Hong Leong Holdings (TID and Hong Realty)
- City Developments in partnership with RB Capital
- Allgreen Properties in partnership with Kerry Properties
- UOL Group with United Industrial Corporation
- CapitaLand in partnership with Hotel Properties
- Sing Haiyi Group in a tie-up with Haiyi Holdings
- Chip Eng Seng in partnership with Roxy-Pacific Holdings and JBE Properties
Bidders mostly in partnerships and tie-ups
The massive 59, 715 sq m (gross floor are – GFA) site in Holland Village is split into 2 zones – Zone 1 for residential development such as flats, serviced apartments or strata landed houses, and Zone 2 for commercial and/or serviced apartments and units which double up as offices and places of residence.
60% of the GFA can be used for residential purposes and the remaining 40% for commercial purposes. There is a 570-unit cap on residential units set by URA and also a 13,500 sam allowance for retail purposes.
The sheer capital outlay required for a site this size has most bidders coming in as partnerships, tie-ups or consortiums. Developers’ track record in developing and managing such a site would also be crucial in the consideration process. The capital outlay is expected to exceed $1 billion.