URA Extends Scotts Rd Site’s Lease Period

Source : TODAY,Friday,July 27, 2007

FOLLOWING feedback, the Urban Redevelopment Authority (URA) will extend the lease period for the transitional office site on Scotts Road to 15 years.

It said interested investors wanted a longer lease period to enable them to recoup their investments and cater to tenants’ needs.

The original lease period was pegged at 10 years as future development works in the area could affect the site. However, the lease period was extended following a URA review.

“This fairly regular plot could contribute about 140,000sq ft of offices to the Orchard Road micro-market. The vacancy rate for the area was below 3.5 per cent in the second quarter of 2007,” said Mr Li Hiaw Ho, executive director, CBRE Research.

“It is likely that the site would be of interest to developers as well as single owneroccupiers. It is likely to be awarded for about $100 to $150psf per plot ratio,” he added.

The URA is extending the tender period for the 1.04-ha site, next to Newton MRT station, by three weeks to close at noon on Aug 22. — JOSEPH YADAO