The tender for the Bayshore Drive site (in blue) garnered three bids (Picture: EdgeProp Landlens)
The Government Land Sale (GLS) tender for a mixed-use site at Bayshore Site closed on July 15, garnering three bids. The highest bid was from a consortium led by Frasers Property, together with Sunway MCL, Sekisui House and Lum Chang. The consortium submitted an offer of $2.128 billion, or $1,323 psf per plot ratio (psf ppr).
The Frasers Property-led consortium’s bid was 5.8% more than the second-highest bid of $2.01 billion ($1,250 psf ppr) from a Hong Leong Group joint venture including City Developments, Hong Leong Holdings, Hong Realty and TID.
The third bid, from CapitaLand Development and UOL Group, stood at around $1.99 billion ($1,235 psf ppr), or 7.1% lower than the top bid.
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The bids reflect “market consensus on the value of this coveted site,” says Mark Yip, CEO of Huttons Asia. The future development will be the only integrated transport hub in the upcoming Bayshore precinct, connected to the Bedok South MRT Station on the Thomson-East Coast Line, a bus interchange and retail spaces.
The Bayshore Drive site was launched for tender on March 30. The 99-year leasehold site can potentially yield 1,280 housing units and 242,190 sq ft of commercial space.
It is the second plot to be launched for sale in Bayshore, following a site at Bayshore Road tendered last year. That site was awarded to SingHaiyi Group, which beat seven other bidders with a top offer of $658.89 million, or $1,388 psf.
For the Bayshore Drive site, Huttons’ Yip notes that its scale, along with the complexities of building an integrated transport hub, likely limited developer participation to joint ventures.
At the same time, developers may have considered the site’s proximity to another GLS plot up for sale, located at New Upper Changi Road. The tender for the site, which can yield 1,010 residential units, was launched in May and will close on Sept 1. Given the close location of the two plots, the future projects may compete for buyers when they launch in the coming years, Yip adds.
[This article is being updated]
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