GuocoLand’s S$1.62b bid won tender for Beach Road site
Property giant GuocoLand has snagged a plum commercial site at Beach Road for S$1.62 billion. The former Beach Road Police Station on the site also has to be conserved and restored under the tender requirements. Photo: CNA
SINGAPORE — Property giant GuocoLand snagged a plum commercial site on Beach Road for S$1.62 billion, after its subsidiaries won the tender from the Urban Redevelopment Authority as top bidder on Tuesday (Oct 3).
The 99-year leasehold plot of land was put up for tender on July 6 from the Reserve List of the Government Land Sales programme.
It has a maximum permissible gross floor area of 950,592sqf. Under the tender requirements, a minimum of 665,424sqf must be developed for office usage, while the balance area can be developed for hotel, serviced apartments, residential or retail uses, subject to a maximum of 32,292sqf for retail.
The site includes a building which is the former Beach Road Police Station, and is meant to be conserved and restored, as stated in the requirements when the bid was put out.
GuocoLand subsidiaries GLL Prosper and GLL Thrive will be developing the awarded plot.
Responding to the bid outcome, the property giant said in a statement that it intends to bring “a distinctive, trailblazing development” to Beach Road that would help transform the Bugis district.
Mr Raymond Choong, group president and chief executive officer of GuocoLand Limited, said that the group has “ambitious plans” to create an innovative development which would set a “new standard” in the location.
“Drawing on our experience at Tanjong Pagar Centre and cognisant of the changing needs resulting from new technologies, new businesses and new lifestyles, a new destination will emerge on Beach Road, which combines the best of architectural design, efficiency, environmental sustainability and culture to serve the changing ‘work-live-play’ trends,” he said.
Mr Cheng Hsing Yao, group managing director of GuocoLand Singapore, said that there are plans to introduce a futuristic project in line with this goal, but did not elaborate. “The large site gives us a lot of space to create amenities and we will take full advantage of the spectacular views towards Marina Bay and Kallang Basin,” he said.
Asked to comment on the results, Mr Eugene Lim, key executive officer of ERA Realty Network, said: “The winning bid was higher than the S$1.138 billion trigger price, so it was within expectations that the tender would be awarded.”
Ms Christine Li, director of research at real-estate services firm Cushman & Wakefield, said that even though the bid price is bullish, the key is to maximise the overall efficiency of the project.
The site is likely to have a mix of residential, office and retail spaces, she added. “This is because the residential segment has staged a rebound and it will be good for GuocoLand to include residential (space) within such a prime mixed-use development that is hard to come by.
“My guess is that the residential component would be priced at around S$2,200-2,400 psf when it’s launched for sale in the next 12 to 18 months. The residential segment will appeal to those who enjoys urban living and would like to have convenience right at their doorsteps.”
