SPH & Kajima places top bid of $1,132 mil for Upper Serangoon Road site

Elara 1 and Callisto 1, entities linked to Singapore Press Holdings and Kajima Development, have submitted the top bid of $1,132 million, which translates into $1,181 psf per plot ratio, among 12 bidders for a 2.54ha (273,403 sq ft) mixed-use development site at Upper Serangoon Road (below), according to provisional tender results released by sales agent HDB. SPH’s bid is 1.27% more than the second highest bidder, Far East Civil Engineering and Sekisui House, who submitted $1,117,777,777 ($1,166 psf per plot ratio) for the site.
The 99-year leasehold mixed commercial and residential site, has a gross plot ratio of 3.5 and a maximum gross floor area of 89,043 sq m (958,458 sq ft). The site could potentially yield an estimated 825 residential units and with an estimated 15,000 sq m (161,460 sq ft) of commercial space. According to tender details from HDB, the winning developer also has to include a community club with Gross Floor Area of 6,000 sq m (64,584 sq ft) and a neighbourhood police centre with Gross Floor Area of 2,190 sq m (23,573 sq ft).

The other bidders were Guoco Group’s First Meyer Development and GLL A which came in third with their bid of $1,060 million ($1,105 psf per plot ratio). The lowest bid came from Soilbuild Group Holdings, who offered $774,488,000 ($808 psf per plot ratio).

Source: HDB

Desmond Sim, head of CBRE Research for Singapore and South East Asia, says the aggressive bids are a testament to developers’ hunger for sites, as well as the site being the epicentre of the up-and-coming Bidadari estate. The site is also the sole mixed-development site released under the Government Land Sales programme in 2H2016 and the first land parcel for private housing at the new estate.

“Based on the top bid, the developer of this mixed development could be aiming to launch the residential units at above $1,700 psf from late-2018 onwards,” says Nicholas Mak, head of research and consultancy at ZACD. “If this [happens], it would set a new record price for 99-year leasehold apartments in this location.”