City Developments (CityDev) says its new project at Beach Road will cost at least S$2.73 billion. The figure was revealed by Executive Chairman Kwek Leng Beng at the Forbes Global CEO Conference on Tuesday.
CityDev and its partners edged out six other contenders for the mixed site at Beach Road with an aggressive bid that promises to add more buzz to the Marina area.
The South Beach development is set to change the landscape at the Marina area.
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CityDev says its investment in South Beach project will hit S$2.73b
CityDev and its partners are investing billions of dollars into the project which will stand out not only for its design, but also for its eco-friendly features.
Its subsidiary Scottsdale Properties has partnered Dubai World's Istithmar and US-based El-Ad to build the mixed development by 2012.
The Singapore developer is excited to be working with world-renowned names.
Mr Kwek said: "They came in because they knew me and they wanted a local partner and this is the Plaza owner, the new Plaza owner as well as Dubai World. They came in for the first time and I'm glad that we are able to target these two partners to create more good opportunities for investors all over the world."
As for the current property boom in Singapore, the CityDev chief said it is nowhere near the end of the cycle.
Mr Kwek said: "Prices mean opportunity, as the Chinese say, as Mr Forbes also said last night, and I am a bottom fisher. I like to go in when the market is bad. And I believe there's still a lot of upside. The mid-end is still below 19 per cent from the peak of 1996, and therefore I believe there is a lot of upside."
He added that though the high-end market looked like it has gone up some 70 per cent since the boom started in 2005, that is only 10 per cent in real terms.
Speaking to Channel NewsAsia, he said there is a silver lining to the recent market turmoil. "There was frenzy buying before but with the sub-prime, it's natural that our Singaporean as well as some overseas investors... will be a little bit more cautious. This is good - a win-win situation for the buyers because then they do not need to chase after runaway prices.
"It's good for the developer if they want to think in terms of sustainability as most of them would want to think of sustainability. It's good for the government because the market corrected itself, I think they're much relieved."
Market watchers have speculated that the consortium may bring in the Barneys New York retail brand through one of its partners Istithmar, and although Mr Kwek said 'anything is possible', he also revealed that they are looking at bringing in a 7-star luxury resort brand One & Only. - CNA/ch
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