The Urban Redevelopment Authority (URA) has released a redevelopment site at Beach Road for sale by tender and bids are likely to top $1 billion.
The 376,295 sq ft site has a maximum gross floor area (GFA) of 1.58 million sq ft and 40 per cent must be for office use, and 30 per cent for hotel use.
The future developer will also have to conserve four existing historic buildings, including the former NCO Club.
Knight Frank director (research and consultancy) Nicholas Mak estimates that the Beach Road site could fetch bids of around $600-700 per square foot per plot ratio (psf ppr) or between $950 million and $1.1 billion.
The government will adopt a two-envelope system to evaluate the tenders.
Mr Mak added: ‘The scheme will have to inject vitality to this part of Beach Road.’ As with other ‘trophy sites’, foreign investors are likely to participate in the tender but Mr Mak said the more complex two-envelope system could see foreign investors teaming up with local developers.
Separately, the owners of a 25-unit townhouse development at Bishopswalk have put their homes up for sale by tender for an estimated total price of $108 million. This is around 20-30 per cent more than when the same site was put up for sale through an ‘expression of interest’ exercise less than a year ago. The 69,189 sq ft site has a plot ratio of 1.4.
Jeremy Lake, executive director at CB Richard Ellis, which is the marketing agent, said a development with about 48 new units assuming an average size of 2,000 sq ft each can be built. The price works out to about $1,276 psf ppr, inclusive of an estimated Development Charge of $15.58 million.
Mr Lake also pointed out that the site represents the only opportunity for a developer to build a condominium in the Good Class Bungalow area of Bishopsgate.
Source: The Business Times, 08 March 2007
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