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Beach Road site attracts S$1.62b bid from GuocoLand

SINGAPORE — A plum commercial site at Beach Road has attracted a bullish top bid of S$1.62 billion from property giant GuocoLand, showed Urban Redevelopment Authority (URA) data after the close of tender yesterday.

SINGAPORE — A plum commercial site at Beach Road has attracted a bullish top bid of S$1.62 billion from property giant GuocoLand, showed Urban Redevelopment Authority (URA) data after the close of tender yesterday.

The 99-year leasehold site, launched on July 6 from the Reserve List of the Government Land Sales programme, has a maximum permissible gross floor area (GFA) of 950,592sqf. A minimum of 665,424sqf must be developed for office usage, while the balance GFA can be developed for hotel, serviced apartments, residential or retail uses, subject to a maximum of 32,292sqf for retail.

The former Beach Road Police Station on the site has to be conserved and restored under the tender requirements.

The top bid from GuocoLand subsidiaries GLL Prosper and GLL Thrive, which beat four other bids, translates to S$1,706.30 psf per plot ratio, showed the URA data. It edged out the second-best bid of S$1.57 billion from Kingsford Hurray Development by 3.2 per cent.

Dr Lee Nai Jia, head of research at property firm Edmund Tie, said: “The location justifies the high bid. While it may seem bullish, the bid is validated by the rents of the premium offices along Beach Road. According to URA Realis, the monthly rents of the newer developments along Beach Road, proxied by maximum rents in the area and averaging out at S$10.30 psf, are nearly the same as those in the Raffles Place area, proxied by maximum rents in the Raffles Place area, and averaging out at S$12.30 psf.”

Mr Nicholas Mak, executive director and head of research & consultancy at integrated asset manager ZACD, said: “The site is located strategically at the intersection of two key development corridors along Beach Road and Ophir-Rochor Road. The development would be a welcome addition to the well-established commercial scene in the Bugis precinct.

“Together with new landmark developments such as South Beach Tower and the upcoming DUO, the development would play a vital role in rejuvenating the CBD-fringe district. The development on the Beach Road site will also include an underground pedestrian pathway to Bugis MRT Station. Such positive attributes have helped to attract much interest from the developers.”

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