CapitaLand Unit Offers Top Bid for Bishan Site

Source: Business Times –30 November 2012

Capitaland, in a joint venture with Mitsubishi Estate Asia, offered the top bid for another residential site in Bishan, next to its current Sky Habitat development.

The $505 million, or $852.94 per square foot per plot ratio (psf ppr), bid was submitted through Allamanda Residential Development in which CapitaLand holds a 75 per cent stake.

According to market analysts, the CapitaLand JV top bid for the residential site at Bishan Street 14 was part of a strategic move to defend its earlier bid of $869.36 which was offered in February last year for the Sky Habitat site.

CapitaLand Residential chief executive officer Wong Heang Fine said: “CapitaLand Residential Singapore and Mitsubishi Estate Asia are pleased to have submitted the top bid for the Bishan Street 14 site, which is strategically located next to Sky Habitat. The joint venture plans to develop this well-located 11,227.80 sq m site into a condominium with approximately 700 units, which is expected to be launched in the second half of 2013.”

The second highest bid was a joint submission by SingLand Homes, UOL Venture Investments and ORIX Investment & Management for $827.61 psf ppr. This was 3.1 per cent lower than CapitaLand’s top bid.

Given that both the first and second highest bidders for the Bishan Street 14 plot submitted prices comparable to the record price set by CapitaLand for its Sky Habitat site, it could suggest that developers are confident about the current average selling price of the 99-year condominium project located in Bishan Central on Bishan Street 15.

However, unlike the bid for the Sky Habitat site, which drew close to 20 bidders, yesterday’s tender for the site at Bishan Street 14 attracted only nine bids.

Pinehill Investments and a consortium comprising Frasers Centrepoint’s FCL Topaz, Far East Orchard Limited and China Construction (South Pacific) Development, were tied in third place for their bid of $780.16 psf ppr.

Other bidders for the subject site included Straits Steamship Land’s wholly owned subsidiary Acresvale Investment ($770.68) and MCL Land Limited ($759.90).

The lowest bid was by Mezzo Development for $621.42 psf ppr.

Information on this site may be overtaken by events and is subject to change. See Disclaimer.