SINGAPORE : The Urban Redevelopment Authority (URA) said on Monday that a group including City Developments (CityDev) has clinched a 3.5-hectare downtown commercial land site for S$1.69 billion (US$1.11 billion). The consortium comprises Scottsdale Properties Pte Ltd (a subsidiary company of CityDev), Istithmar Beach Road Fze and Elad Group Singapore Pte Ltd.
The land was placed for tender under the Confirmed List of the Government Land Sales Programme.
Analysts say the price was in line with expectations.
The land parcel is bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road and occupies a prime and highly strategic nodal location within Singapore's Downtown.
Located directly adjacent to the Circle Line Esplanade MRT station, the future development will also enjoy convenient access to the rail network. The consortium edged out six other bids for the mixed development with its winning design.
Donald Han, Managing Director, Cushman & Wakefield, said: "What's interesting is that besides City Developments, which is well known, we've got Istithmar - they are well-known developers of the Dubai World. They also own the Barneys of New York, so we might potentially see Barneys in Singapore, and you've got Elad who are experienced New York developers who are also owners of New York Hotel Plaza. They are also contemplating to bring the Plaza Hotel into other parts of the world, so Singapore could be the first stop."
Flanked by Suntec City and the renowned Raffles Hotel, the new development will be a prominent feature of the Marina Centre.
It will not only alter the skyline but will also change the way traffic flows in the area, with alfresco dining and a pedestrian underground network to City Hall MRT station.
The URA adopted a two envelope bid process, which meant they chose the best designs first before prices of the bids were revealed. Only two concepts satisfied the criteria and the City Developments consortium beat Ocean & Capital Properties and Billion Rise with a higher bid.
Ocean's bid was S$1.39 billion.
While analysts say the bid price was within expectations, they see total project amounting to more than S$2.5 billion.
Donald Han said: "We were expecting between S$1,000 to S$1,100 per square foot, per plot ratio. The price came to about S$1,062 psf. I think that's within reasonable range.
"All in all, if you look into the total quantum that the developer is going to put into the project, we're looking at S$1.6 billion in terms of land cost. And if you include another billion in terms of your interest cost, construction, the total consideration, project cost will come to about S$2.6 billion."
Central to the winning design is the adoption of environmentally friendly features such as the use of solar power. - CNA/ch
SINGAPORE : The Urban Redevelopment Authority (URA) said on Monday that a group including City Developments (CityDev) has clinched a 3.5-hectare downtown commercial land site for S$1.69 billion (US$1.11 billion).
The consortium comprises Scottsdale Properties Pte Ltd (a subsidiary company of CityDev), Istithmar Beach Road Fze and Elad Group Singapore Pte Ltd.
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Consortium, including CityDev, wins Beach Road site for S$1.69b: URA
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The land was placed for tender under the Confirmed List of the Government Land Sales Programme.
Analysts say the price was in line with expectations.
The land parcel is bounded by Beach Road, Bras Basah Road, Nicoll Highway and Middle Road and occupies a prime and highly strategic nodal location within Singapore's Downtown.
Located directly adjacent to the Circle Line Esplanade MRT station, the future development will also enjoy convenient access to the rail network.
The consortium edged out six other bids for the mixed development with its winning design.
Donald Han, Managing Director, Cushman & Wakefield, said: "What's interesting is that besides City Developments, which is well known, we've got Istithmar - they are well-known developers of the Dubai World. They also own the Barneys of New York, so we might potentially see Barneys in Singapore, and you've got Elad who are experienced New York developers who are also owners of New York Hotel Plaza. They are also contemplating to bring the Plaza Hotel into other parts of the world, so Singapore could be the first stop."
Flanked by Suntec City and the renowned Raffles Hotel, the new development will be a prominent feature of the Marina Centre.
It will not only alter the skyline but will also change the way traffic flows in the area, with alfresco dining and a pedestrian underground network to City Hall MRT station.
The URA adopted a two envelope bid process, which meant they chose the best designs first before prices of the bids were revealed.
Only two concepts satisfied the criteria and the City Developments consortium beat Ocean & Capital Properties and Billion Rise with a higher bid.
Ocean's bid was S$1.39 billion.
While analysts say the bid price was within expectations, they see total project amounting to more than S$2.5 billion.
Donald Han said: "We were expecting between S$1,000 to S$1,100 per square foot, per plot ratio. The price came to about S$1,062 psf. I think that's within reasonable range.
"All in all, if you look into the total quantum that the developer is going to put into the project, we're looking at S$1.6 billion in terms of land cost. And if you include another billion in terms of your interest cost, construction, the total consideration, project cost will come to about S$2.6 billion."
Central to the winning design is the adoption of environmentally friendly features such as the use of solar power. - CNA/ch
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