Wednesday, October 18, 2006
[RealEdge] BT : Collyer Quay site draws 8 bids despite its small size
| Published October 18, 2006  | |||
| Collyer Quay site draws 8 bids despite its small size Rebound in office property market adds buzz to tender
By ARTHUR SIM
THE tender for the Collyer Quay commercial and hotel site closed yesterday with eight bids, despite the site's small size of just 2.67 ha and other potential negatives.
With complex conditions and a maximum permissible gross floor area of just 10,000 sq m, not much buzz was expected. But the rebound in the office property market, coupled with recently announced redevelopment plans of neighbouring Overseas Union House into an 18-storey office building, changed everything. Increased competition appears to have prompted Hong Kong-based Sino Land, the sister company of Far East Organization, to put in not one but two bids, indicating serious intent to command a major stretch of Marina Bay, where it already owns One Fullerton and The Fullerton Hotel nearby. Overseas Union Enterprise (OUE) also put in a bid, hoping to leverage on the proximity of the Collyer Quay site to Overseas Union House. OUE chief executive David Lee said the number of bids reflected 'confidence' in the property market. 'We are bullish on the Singapore market,' he said when asked if OUE would bid aggressively. Park Hotel Group is also bullish. Director Allen Law said it would develop a high-end boutique hotel with an F&B component at Collyer Quay . 'We like this site because it is going to be a very unique hotel development, Mr Law said the Collyer Quay site will fit in with the group's expansion plans for the region, where it hopes to have 10 hotels in the next three to five years. Apart from five in Singapore, others will be in Hong Kong, China and Macau. 'Singapore will be our regional headquarters, Also taking part in the tender were The Carlton Group, City Developments Ltd's hotel arm, Millennium & Copthorne Hotels, Middle Eastern investor Dubai Properties and a party thought to be a European-based developer, Northern Holdings. On the dominance of foreign-based bids, Savills Singapore's director of marketing and business development Ku Swee Yong said the Collyer Quay site offered an attractive entry-level investment opportunity. Based on recent property transactions in the area, Mr Ku estimates the site could go for as much as $1,000 psf per plot ratio. But he says one concern among developers could be hidden construction costs involved with building over the water as well as having to incorporate conserved buildings. But there is also potential upside for some bidders. Jones Lang LaSalle Hotels executive vice-president Chee Hok Yean said developers with existing operations in the area could create 'synergy' between developments by sharing 'backroom' operations for F&B or hotel operations. | |||
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