Kajima development (SPH) which is linked to the Singaporean Press Holdings has put forward its highest bid ever recorded in a tender. The bid is for a 99 year-old lease that combines both residential and commercial sites in Bidadari.
The company came out to a bidding price of a whopping $1.132 billion which translates to about $1,181 for each square foot (per plot). This building can be located at the upper corner of serangoon road.
The second highest bid to come through was from Sekisui House and Far (East) Civil Engineering causing a tie between the two companies. Each company had put forward a bid of $1.117 billion dollars for 25,440 square metres, which can produce 825 separate Singapore Condo units. There were however ten other bids when it closed at twelve in the afternoon yesterday. Among the list of bidders we noticed – Sim Lian, GuocoLand, Nashan Group Singapore, Chip Eng Seng and Blossom Commercial Development.
The spokesperson for SPH concluded that: if a consortium were to be awarded the tender, its future plans would include a ‘’mixed plan development’’ that would consist of both residential condominium and a mall for retail purposes for the residents in Bidadari.
They further hope to include a community club which would be built on a 65,000 square feet plot and a police centre in an area of 20,000 square feet. They also plan on building a commercial bridge that connects the Bidadari Park and an underpass, which would link the bus interchange as well. All this is planned for when building work finally commences once the tender is settled.
Ms. Tay Huey Ying – the Head of Consultancy and Research at JLL Singapore explained that the top bid is rather bullish. She went on to mention that the amount is 50% more than what was offered to Poiz residence and Poiz centre that is located in close proximity. Only $775 per square foot was offered for this plot, which was also a mixed combination of both commercial and government land sales in the year 2004.
She further stated that based on the number of bids the Bidadari site has received, it is clear that developers are optimistic about what Singapore’s government has planned in the estate’s master plan. Meanwhile it also showed that foreign companies are submitting bigger bids and slowing side-lining local land developers by offering higher bids and taking over local land development.
She did point out however that in the span of January last year, local developers did submit the highest bids in the two thirds of commercial and residential land (GLS) tenders. Clearly showing us that they are definitely going neck to neck with its competitors.
Cushman and Wakefield’s research director Ms. Christine Li also added that ‘’the development site meant for integration is going to be the initial landmark project at the famous Bindadari estate’’. She went on to say that despite the evident competition from the other residential sites down Woodleigh Lane, where the tenders are shutting down next month, the developers seem more optimistic in the hopeful integrated development system. Due to the fact that out of the twelve parties four of them exceeded that $1 billion mark.
Find out more about this aggressive land vying news from link below,
http://www.straitstimes.com/business/property/sph-kajima-make-top-bid-for-bidadari-site
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