The S$120 million offer came from a Frasers-led consortium that included Boustead and Sunray-linked entities
THE tender for a 60-year leasehold long-stay serviced apartment site in Media Circle was not awarded as the sole bid was assessed to be too low, the Urban Redevelopment Authority (URA) said on Thursday (Oct 3).
The S$120 million bid from a Frasers-led consortium, which worked out to S$460.80 per square foot per plot ratio, came in far below analysts’ estimates that ranged widely between S$650 per square foot per plot ratio (psf ppr) and S$1,100 psf ppr for the parcel near the one-north office hub.
The consortium included Padawan MC and Empire One North Property. Padawan MC is linked to Boustead Projects, while Empire One North Property has ties with Sunray Group Holdings.
Before the tender closed on Sep 19, up to three bids were expected for the sale of the first state land plot dedicated to long-term serviced apartments, a new rental category labelled SA2 that was introduced last year to help meet market demand.
The site was offered with a 60-year lease, distinct from other state land sites designated for housing which typically have a 99-year lease.
The Media Circle plot can yield 520 apartment units with commercial use on the first storey. It sits on a 5,764.3 square metre (sq m) plot of land, with a maximum gross floor area of 24,211 sq m.
Two other sites with SA2 elements have been put up for sale so far, both combining residential housing with serviced apartments. The first plot tendered at Zion Road was awarded to a City Developments Ltd-Mitsui Fudosan tie-up which placed the sole bid of S$1.1 billion, or S$1,202 psf ppr, in April. The large site can house up to 1,170 residential units, including 435 serviced apartments, on the edge of the prime River Valley residential neighbourhood.
The second SA2-type site in Upper Thomson saw no interest at all, with the tender closing with no bids in June.
