The Urban Redevelopment Authority (URA) yesterday launched a ‘white site’ at the junction of Race Course Road and Rangoon Road for sale by public tender. Experts believe the 1.36 ha could fetch as much as $280 million.

The 99-year leasehold site, which is directly above the Farrer Park MRT Station in Little India, has a 4.2 plot ratio, which means it can generate a maximum gross floor area (GFA) of about 57,225 sq m.

‘Judging by the nearby City Square Residences, the site could fetch $400-$450 per square foot per plot ratio,’ said Lui Seng Fatt, regional director at Jones Lang LaSalle. This works out to $246.4-$277.2 million.

The land parcel is zoned white, which means that it can be put to a range of uses including hotel, retail, dining, entertainment, office and residential. The site, however, comes with a URA requirement that at least 40 per cent of its maximum GFA to be allocated for hotel use.

‘The minimum quantum of hotel use will provide opportunities to meet the demand for hotel accommodation in this area given its location near the historic district of Little India, which is popular with tourists and locals,’ the URA said.

The successful bidder can then choose to develop the remaining 60 per cent of GFA for additional hotel and/or residential, commercial or hospital uses, the government body added. Allowing hospital use will help meet increased interest in private hospital developments, the URA said.

The land parcel is one of the ten sites that were transferred from the reserve list to the confirmed List of the Government Land Sales Programme for the second half of 2007. The site was first offered in August last year, but saw no takers. The URA then decided to open up the plot to hospital development. Related link: Click here for URA’s news release

Even then, a developer will be most likely to use the remaining 60 per cent GFA for residential and commercial space rather than hospital development, observers said.

‘Residential and commercial use will probably prevail because it provides better opportunities for that area,’ Mr Lui said.

Source: The Business Times, 06 July 2007