SINGAPORE : The Urban Redevelopment Authority has launched the
tender for the new Business and Financial Centre at Marina
Bay.
This was after it received an initial bid of S$778 million for the
site, or about S$165 per square foot.
No names were given, but market watchers say the bid did not come
from any of the big local developers.
Under the government's Reserve List system, any one bid above a
minimum price set by the authorities triggers off a bidding
process, requiring the URA to put up the site for public
tender.
The prime harbour-front land is the site of Singapore's
next-generation business centre.
The vision is to build a world class business and financial hub
integrated with quality housing, recreational and leisure
facilities to create a live-work-play environment.
It is slowly turning into reality, as the URA opens up bids for the
3.55 hectare site.
The URA says it has already received strong expressions of interest
from both local and foreign developers for the site.
National Development Minister Mah Bow Tan said, "The important
thing is that this strong interest shows that there is a continued
confidence in Singapore by investors as a place to invest. It's
also an indication that there is a positive outlook in the office
market.
"When it is developed it will make a big difference to the new
downtown. It will help to anchor businesses in Singapore, financial
institutions particularly, and attract new ones to
Singapore."
The new site will yield a total gross floor area of 4.8 million
square feet.
At least 60 percent of the new built-up area must be for office
use, and it is expected to add at least 10 percent of office space
to the current Central Business District.
Based on current market conditions, market watchers say bids for
the BFC site will come in at around S$200 per square foot.
Three sites already sold by the government in the new downtown have
gone for higher than that.
The big local developers are expected to participate in the tender,
whether on their own, or in partnership with other players.
Analysts say if the government gives the go-ahead for an integrated
resort to be built in the Marina area, the BFC site may include a
hotel and large retail premises. - CNA
Wonder will it be going to be a ghost town when the New DownTown is
developed?