GuocoLand bids $800.2 mil for site on Tan Quee Lan Street

SINGAPORE (EDGEPROP) - The Government Land Sales (GLS) site at Tan Quee Lan Street attracted only two bids at the close of the tender on September 5. The top bid of $800.19 million was submitted by a joint venture between GuocoLand and subsidiaries of Hong Leong Holdings, namely Intrepid Investments and Hong Realty. The bid price translated to $1,535 psf per plot ratio (psf ppr). This is $4.2% higher than the second bid of $1,473 psf ppr submitted by City Developments Ltd (CDL) and MCL Land (a subsidiary of Hongkong Land), says Tricia Song, Colliers International head of research for Singapore.
Desmond Sim, CBRE head of research for Southeast Asia sees the bids as “a defensive move on the part of the developers”.

The bidders for the GLS site on Tan Quee Lan Street

Source: URA
“Both bidders are related parties,” says Nicholas Mak, ERA Realty head of research & consultancy. Both bids for the site on Tan Quee Lan Street are also above the top bid of $1,458 psf ppr for the Middle Road GLS residential site, he points out.
The tender for the GLS site on Middle Road had closed at the end of March, with 10 bids received. Wing Tai Holdings won the site with a top bid of $492 million ($1,458 psf ppr).
“We think some developers could have been put off by the hype over the site and expected aggressive bidding for it,” says Colliers’ Song. “In addition, there might be worries about competition from the Middle Road site and the Midtown Bay project.”
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The site on Tan Quee Lan Street saw two bids, with GuocoLand submitting the top bid of $1,535 psf ppr (Photo: Samuel Isaac Chua/EdgeProp Singapore)
The top bid of $1,535 psf ppr for the site on Tan Quee Lan Street is 5.3% higher than the $1,458 psf ppr paid for the...