Saturday, July 31, 2010

Multi-purpose site beside Tanjong Pagar station up for tender

A PRIME multi-purpose site in the Central Business District has been put up for tender.

The 1.5ha plot at the corner of Peck Seah and Choon Guan streets and next to Tanjong Pagar MRT station was launched yesterday as a confirmed list site.

The development will have a gross floor area of 157,744 sq m with at least 60 per cent earmarked for offices and a minimum of 10 per cent for hotel-related use.

The remaining area can be used for commercial, hotel or residential purposes, said the Urban Redevelopment Authority (URA) yesterday.

The 99-year leasehold site could yield an estimated 490 apartments, 315 hotel rooms and 102,380 sq m of commercial space.

It could reach 280m above sea level, commanding panoramic views of the city skyline across the CBD to Marina Bay and Chinatown, the URA said.

An underground pedestrian network will link the site to Capital Tower and 8 Shenton Way.

Executive director Li Hiaw Ho of CBRE Research said the development will tower over others in the vicinity and change the landscape of the Tanjong Pagar micro-market, hastening the area's pace of rejuvenation.

Mr Li said that with inner-city living growing in popularity over recent years, the successful tenderer would be tempted to utilise the remaining 30 per cent of floor space for flats.

Caveats lodged in the past six months from new launches at Altez and 76 Shenton ranged from $1,900 to $2,300 per sq ft (psf) while the completed Icon project has had recent resale transactions from $1,600 to $1,700 psf, CBRE Research said.

Knight Frank consultancy and research manager Ong Kah Seng expects 'keen interest' and about five bids for the prime site.

He also highlighted the attractiveness of the Tanjong Pagar area, where 'prime commercial area is complemented by a variety of lifestyle amenities and entertainment hangouts'.

Mr Ong added that with the office market in early recovery, this presents the best opportunity to develop or invest, as rents and prices are still attractive and economic fundamentals are in sight.

'Developers also have better access to financing compared to during an economic downturn,' he added.

The site, which can take up to seven years to be fully developed, might also appeal to developers who prefer a cautious stance as they would be able to adjust development plans according to prevailing market conditions, Mr Ong added.

The tender, which is part of the Government's land sales programme, closes on Nov 16.

Source: Straits Times, 31 Jul 2010

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