Wednesday, May 19, 2010

Guthrie-Santarli JV put in top bid for Yishun DBSS site

A JOINT venture between Guthrie GTS and Santarli Construction yesterday placed the highest bid for a public housing plot at the corner of Yishun Avenue 11 and Yishun Central under the Housing & Development Board's (HDB) Design Build and Sell Scheme (DBSS).

The $148.89 million top bid reflects a unit land price of about $180 per sq ft per plot ratio (psf ppr) for the site, which is being sold on a 103-year lease. The tender attracted six bids.

This is the first time that either Guthrie, which is involved in property development, or Santarli, an established contractor in the HDB market, has bid for a DBSS site, said Guthrie Properties managing director Michael Leong.

The plot is slated for development into about 700 flats.

The winning bidder will be required to set aside 10,764 sq ft of the maximum allowable gross floor area of 828,028 sq ft for commercial facilities and a childcare centre.

'The bulk of the units in our proposed scheme will be three- and four-room HDB flats, although there will also be some two- and five-room flats. We may also do some studio units,' Mr Leong told BT last night.

'The majority of units will be priced below $500,000,' he added.

An industry observer suggested that with the $180 psf ppr land bid, Guthrie's and Santarli's breakeven cost could be around $420 psf. The top bid was 4.6 per cent higher than the second-highest offer of $142.3 million or $171.85 psf ppr from a joint venture involving Hoi Hup Realty, Sunway Developments and Hoi Hup JV Development.

The other bidders were Sim Lian Land ($126 million), Qingdao Construction (Singapore) ($125.87 million), Chip Eng Seng ($114.5 million) and a tie-up between Greatearth Holdings and Lee Metal Group ($108 million or $130.43 psf ppr).

Source: Business Times, 19 May 2010

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