FC Commercial Trustee Bagged Cecil Street / Telok Ayer Street Bid

The tender of the commercial site at Cecil Street/Telok Ayer Street has finally been awarded by the URA or Urban Redevelopment Authority to FC Commercial Trustee Pte Ltd (as Trustee-Manager of Aquamarine Star Trust). The bidding has attracted four tenderers. They are as follows:

FC Commercial Trustee Pte. Ltd. – $923.95m
EulandPte Ltd. – $777.77m
Mapletree Trusted Pte. Ltd. (as Trustee of Marina Trust) – $748.35m
AT Capital Holdings Pte. Ltd. – $707m

The commercial site was up for a sale on a 99-year lease term. The tender for the land parcel was first launched on the 18^th of June this year, 2013 and was then closed the following month on the 15^th of August 2013.

The site area is 81,840 square feet and the Maximum Permissible GFA or Gross Floor Area is at 830,564 square feet and works out to $1,112.44 per square feet per plot ratio.

This land parcel will give rise to a proposed development of up to 50 storeys which is prominently located on a strategic location in the southern gateway of Singapore’s Central Business District (CBD).

Directly connected to Tanjong Pagar MRT Station, the land parcel is expected to be developed into a high-quality office project and contribute towards strengthening the area as an attractive business and financial hub, the URA said.

At least 80 per cent of the gross floor area must be allocated for office use, while the rest can be developed for other commercial uses such as retail, as well as food and beverage uses.

Average Grade A office rents in Singapore rose 4.2 per cent in the second quarter to S$9.03 per square feet per month from the previous quarter, according to property consultancy Cushman & Wakefield.

Adding to the abundance of new developments such as the upcoming TanjongPagar Centre and Tokio Marine Centre, this future development at Cecil Street/Telok Ayer Street will further contribute to the district’s progressive growth as one of the many businesses and financial hub within Singapore.

Its accessibility to the entire island through major arterial roads and expressways make it more attractive to future businesses planning to establish in this new development.

Mr Desmond Sim, Associate Director of real estate firm CBRE, said: “Given the view that the office market is at its trough, the top bidder can ride on the possible upswing in rents in the next few years.”

Based on the top bid, CBRE estimates the break-even for this site will be as much as S$1,900 per sq ft, he said.

Source: 23th November 2013

PROPERTY LAUNCHES & INVESTMENTS

Property Launches & Investments

FC Commercial Trustee Bagged Cecil Street / Telok Ayer Street Bid

Comments

Leave your comment