CDL-led consortium wins tender for hotly contested site with $1.68b bid.

CDL-led consortium wins tender for hotly contested site with $1.68b bid.

SINGAPORE’S fast changing city skyline is set for an eye-catching addition after a consortium was awarded a large, hotly contested Beach Road site, with a winning bid of $1.689 billion.

The new development, called South Beach, features two striking towers, 45 storeys and 42 storeys tall, plus the original conserved military buildings of the old Beach Road Camp which will be restored.

The project will boast premium office space, two hotels, shops and city residences.

Competition to develop the 3.5ha site - seen by some as the last major iconic site in town - was fierce but was won by a consortium led by City Developments (CDL).

The futuristic design, with environmentally friendly features, is by renowned British architects Foster & Partners.

The winning bid works out to $1,068.6 per square foot of potential gross floor area and was the higher of two tender submissions earlier shortlisted by the Urban Redevelopment Authority (URA) for their acceptable concept proposals.

Keppel Land and partner Hong Kong’s Cheung Kong Holdings lost out with their bid of $1.386 billion.

CDL, which tendered via Scottsdale Properties, tied up with Dubai World’s Istithmar Beach Road FZE and Elad Group Singapore, with equal stakes. US-based El-Ad Group, which bought New York’s landmark Plaza Hotel from CDL executive chairman Kwek Leng Beng and his partner in 2004, is owned by Israeli billionaire Yitzhak Tshuva.

Said Mr Kwek: ‘We are confident that South Beach will elevate Singapore’s branding as a global city and help attract more prominent investors all over the world.’

CDL said the 99-year leasehold development, which has a gross floor area of 146,827 sq m, will be built by 2012.

The office space will be substantial as URA requires the developers to set aside at least 40 per cent of the space for office use. At least 30 per cent of the space must be for hotel rooms.

‘Given its strategic location, South Beach is designed with a clear intent to bring economic benefits to complement the rapid growth of our city-state,’ said CDL’s managing director Kwek Leng Joo.

The consortium’s proposal adopted environmental design and green technology to create a distinctive, high-quality development that fits in well with the tropical climate and the urban context.

A key feature of the winning design is a large ‘environmental filter’ canopy that covers the open spaces and ties together the new and conservation buildings within the site.

The first storey is laid out with a series of internal streets, which will enhance street level vibrancy and allow pedestrians to move about easily.

‘The concept is a big step forward in strengthening Singapore’s stand as an environmentally friendly city,’ said Singapore Institute of Architects’ president Tai Lee Siang.

When the Beach Road tender closed in July, the URA received seven submissions from major developers and firms. Five were rejected even though some of them came with higher bids.

For instance, the Lippo Group, which had tendered through Overseas Union Enterprise, submitted two bids above the winner’s price.

‘It’s a good price for the CDL consortium because this is the last iconic site in Singapore,’ said Mr Ku Swee Yong of property consultancy Savills Singapore. ‘And hotel room rates and office leasing rates have been showing strong growth.’

Mr Li Hiaw Ho, executive director of CBRE research, said the site will add at least 500,000 sq ft of new office space and about 700 to 800 hotel rooms. It would relieve an office space shortage and offer rooms for visistors to the Formula One race, he said.

Source : Straits Times - 11 Sept 2007