A residential site at Hillview Rise enjoyed a fair amount of interest from developers despite its technical requirements. It received nine tender submissions at the close of the government land sale (GLS) tender under a dual-envelope system.
JLL national director of research and consultancy Ong Teck Hui deemed the level of participation a reflection of “fair interest” from developers, given the tender conditions, which place a huge emphasis on construction productivity.
CapitaLand and City Developments Ltd (CDL) banded together to submit two separate tenders with different concept proposals. The last time the two heavyweights collaborated was more than 10 years ago when they jointly developed a residential project on a site in West Coast Park acquired in a collective sale.
They include a tie-up between Koh Brothers Development (a unit of engineering and construction group Koh Brothers) and Sing Holdings; a joint tender by Hoi Hup Realty and Sunway Developments; as well as a joint bid by Yanlord Land and Soilbuild Group.
Private entities controlled by Hong Leong Investment Holdings, namely Intrepid Investments and Garden Estates, also submitted a bid.
Three other developers went solo. They are CEL Development (a unit of construction group Chip Eng Seng), Qingjian Realty and CSC Land, the subsidiary of China Construction (South Pacific) Development.
Under the Concept and Price revenue tender system or two-envelope system launched last December, applicants for the 99-year leasehold site have to submit their concept proposals and tender prices in two separate envelopes. Only the envelopes containing concept proposals were opened on Thursday.
ZACD Group executive director Nicholas Mak projected that the top bid could range from S$388 million to S$431 million or S$900-1,000 per square foot per plot ratio (psf ppr).
He attributed the healthy participation rate – even with the two-envelope system – to the positive traits of the site: a manageable size, accessible via major expressways and just 430m away from Hillview MRT station.
Source: SRX Property