A large scale mixed-use development site at Paya Lebar Road/Sims Avenue attracted six bids at the close of its tender yesterday, revealed the Urban Redevelopment Authority (URA).
The 99-year leasehold site drew a top bid of $1.672 billion or $942.55 psf from a consortium of which 30 percent is owned by Australian developer Lend Lease.
“The six bids for the Paya Lebar mixed-use site demonstrates continued confidence in Singapore as a global commercial hub,” said Desmond Sim, Head of CBRE Research for Southeast Asia.
He added that the bullishness in bidding was not marred by current sentiment and supports the government’s commitment to keep Singapore’s occupation costs competitive by decentralising office spaces.
Cushman & Wakefield said the upcoming development will likely attract listed companies and multinational corporations to establish their headquarters – enhancing the overall attractiveness of the commercial hub – as developers are not allowed to strata subdivide the office component beyond five strata lots, “(preserving) the premium quality of the office building”.
Mixed-use site at Paya Lebar Road/Sims Avenue.
Launched for sale on 28 October last year, the 222,756 sq ft site is within an area that has about 12ha of land available for development and total potential commercial floor space of 5.38 million sq ft. It is located next to Paya Lebar Interchange MRT station and offers direct links to both the Circle Line and East-West Line.
The site could generate 1.77 million sq ft of gross floor area (GFA) for office, retail and residential purposes. At least 968,000 sq ft of the maximum permissible GFA will be set aside for office use, while the rest can be for additional office, retail, entertainment, F&B and residential use.
URA said the award of the tender will be made after the bids have been evaluated.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
