HDB receives 7 bids for Punggol Central mixed site

HDB receives 7 bids for Punggol Central mixed site
Posted: 15 February 2011 1818 hrs

SINGAPORE : Joint tenderers Emerald Star and FC Retail Trustee have submitted the highest bid of S$1.021 billion for a mixed commercial and residential site at Punggol Central/Punggol Walk.

The Housing and Development Board (HDB) received a total of seven bids at the close of its tender on Tuesday.

The 29,999 square metre site is being offered for sale on a 99-year lease.

It has a maximum gross floor area of 125,997 square metres, which can yield an estimated 685 dwelling units.

The top bid of S$1.021 billion for the land parcel translates to about S$8,103 per square metre per gross floor area.

The next highest bid of S$849.8 million came from the Punggol Retail Development and Qingdao Construction joint venture, followed by a S$786 million joint bid by Keppel Land Realty and K-Commercial Management.

The lowest bid of S$250 million was submitted by Mezzo Development.

The land parcel was launched for public tender on November 30 last year.

HDB said it would evaluate the bids and announce the final tender results at a later date.

Analysts said the site's proximity to the Punggol MRT station was among its main draws.

It will be the first mixed development to be constructed by private developers and its potential to be developed as the first shopping centre in Punggol could give the developer the "first mover advantage in this area," said Mr Nicholas Mak, executive director at the Research & Consultancy Department of SLP International Property Consultants.

He said the top bid submitted by the Frasers Centrepoint group translates to a land price of $753 per square foot (psf) of potential Gross Floor Area (GFA) and is 20.1 per cent higher than the second highest bid from the consortium led by the Qingdao Construction group.

Mr Mak said the maximum allowable GFA is some 1.356 million sq ft, from which a maximum of 40 per cent or 542,488 square feet can be used for commercial purpose.

The remaining space of about 813,732 square feet could be developed into about 700 apartments, he added.

- CNA/al

- wong chee tat :)