A joint venture between Hong Leong unit Intrepid Investments and GuocoLand has submitted a bid of SGD576.78 million (US$450M) for the 99-year leasehold site at Berlayar Drive, an area part of Singapore’s Greater Southern Waterfront redevelopment, according to The Business Times.
The bid sets a new record for a 99-year Government Land Sale pure private residential site in the city fringe. The Hong Leong-GuocoLand bid is also 14% higher than the previous price tag secured for the inaugural Berlayar estate site tendered in November last year.
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Berlayar Drive, Greater Southern Waterfront, Singapore. Photo via Google Maps |
Berlayar Drive, spanning over 25,200 square meters, can accommodate about 415 private homes, according to The Edge Singapore. It is just above 300 meters away from the nearest MRT station.
Analysts expect the Urban Redevelopment Authority to award the Berlayar Drive site to the consortium.
“The sole bidder appears to recognize the long-term potential of the emerging Berlayar and Keppel precincts, supported by planned public and private housing, new amenities and wider master-planned developments,” said Marcus Chu, CEO of ERA Singapore, one of the country’s largest real estate agencies.
Its proximity to the established Bukit Merah and Telok Blangah town centers also provides immediate access to mature amenities which could provide immediate value to early movers, he added.
The first Berlayar estate site was awarded to Kingsford Group with a winning bid of SGD918.3 million. In that tender, the GuocoLand-Hong Leong Holdings partnership submitted the second-highest bid.
Developers interested in the Berlayar estate may be conserving resources for the third Government Land Sale site in the precinct, which is scheduled to be launched in December. That parcel, adjacent to the first site, can accommodate about 695 private homes and has a 2.1 plot ratio.
Commenting on the Berlayar Drive site, Nicholas Mak, chief research officer at property platform Mogul.sg, said: “The lower height of the project could limit the price that the property can command. Residential units on lower floors typically command lower prices than those on higher floors.”
Similarly, Wong Shanting, head of research for Singapore at U.S.-based real estate research firm Newmark, said: “The low rise nature of the project on this site means it will not enjoy the stature or panoramic waterfront views typically associated with taller developments.”
Kwek Leng Beng and Quek Leng Chan are first cousins and belong to the same Quek/Kwek family that built the Hong Leong business empire.
Kwek Leng Beng, with a net worth of $3.8 billion, according to Forbes, controls Hong Leong Group Singapore (including Hong Leong Holdings).
Quek Leng Chan, with a net worth of $7.4 billion, is the second richest person in Malaysia. He controls Hong Leong Group Malaysia, including GuocoLand.