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A REDEVELOPMENT site in Collyer Quay has been launched for sale by public tender. The only site from the confirmed list of the Government Land Sales (GLS) programme for the first half of 2006, it includes Clifford Pier and the former Customs Harbour Branch Building, which have both been gazetted for conservation.

Quay attraction: An artist impression of what could come up on the site

The 2.67 ha site includes land and waterbody. It has a maximum gross floor area (GFA) of 10,000 square metres and an overall height restriction of about four storeys. The Urban Redevelopment Authority (URA) says that the winner will be allowed to build up to about 25 per cent of the total water area for additional decks, with or without buildings.

At least 40 per cent of the GFA must be used for hotel rooms or hotel-related uses. 'Hotel uses' is an addition to the previously required uses for the site. In June 2005, when the site was put on the GLS reserve list, URA said that it was intended for use as a retail and lifestyle development.

Wallace Chu, head of research at Savills Singapore, says that recent emphasis on increasing tourist arrivals may be a factor for adding a hotel component. 'It adds an additional dimension to the site.'

Whether this makes the site more attractive to developers will only be known when bids start coming in. Having a hotel component is, however, likely to reduce the number of potential bidders as any interested party will probably need some hospitality background.

Chee Hok Yean, executive vice-president and head of advisory (Asia) of Jones Lang LaSalle Hotels, thinks that the site could yield 100 hotel rooms. The prime location also suggests that the hotel would have to have a 'lifestyle concept'.

Ms Chee notes several 'challenging' constraints on the site including additional construction costs of building a structure over water.

The tender will be a 'two-envelope' bid with price and design separated. This means that there could be more emphasis placed on design. Ms Chee says: 'If the construction cost is high, tenderers will want to pay less for the land.'