Thursday, October 12, 2006
[RealEdge] BT : UOL, OUE to start work on 18-storey Collyer Quay office tower in 2007
| Published October 12, 2006  | |
| UOL, OUE to start work on 18-storey Collyer Quay office tower in 2007 New building on Overseas Union House site; Change Alley Aerial Plaza to be conserved
By KALPANA RASHIWALA
(SINGAPORE) The long-awaited redevelopment of two ageing landmark properties in Collyer Quay is finally going ahead. Sources say United Overseas Land (UOL) and Overseas Union Enterprise (OUE) will begin work on redeveloping their Overseas Union House site early next year into an 18-storey office tower. In addition to tearing down Overseas Union House and redeveloping the site into a new office tower, BT understands that UOL and OUE will conserve the next-door property - the Change Alley Aerial Plaza tower. The distinctive building, with a circular structure at the top that once used to house a revolving restaurant, will be ideal for food and beverage outlets, suggest market watchers. And the landmark overhead bridge across Collyer Quay, lined with shops and eateries, will also be refurbished and retained. The total development cost - including construction, development charges and the premium payable for upgrading the lease of the site to the original term of 99 years - may come to around $400 million. When completed around 2009, the value of the development could reach $500 million or more, suggest market watchers. The new office development on the Overseas Union House site is expected to have more than 20,000 sq ft of column-free office space per floor. UOL and OUE have equal shares in the company that owns Overseas Union House and Change Alley Aerial Plaza. BT understands that UOL and OUE secured provisional permission from the authorities for a commercial development on the site on Aug 30, allowing them to lock in the development charge rates prevailing at that time. On Sept 1, DC rates for commercial use in the location were increased by 9.1 per cent. UOL and OUE will be applying to the authorities to upgrade the lease on the site to the original 99 years. The land which Overseas Union House sits on has a remaining lease of about 61 years while the Change Alley Aerial Plaza site has 63 years left on its tenure. The two plots have a combined land area of about 80,000 sq ft. Market watchers say it makes sense for UOL and OUE to redevelop their site into an office project because of the acute shortage of prime Grade A offices in the Central Business District. The development of Overseas Union House and Change Alley Aerial Plaza, will help complete the loop of attractions around Marina Bay, as envisioned by the Urban Redevelopment Authority (URA). The other attractions in the belt include the Business & Financial Centre, The Sail @ Marina Bay condo, and the integrated resort which will include a casino, convention facilities, mall, hotels and a museum. Analysts also expect UOL and OUE to team up to make a credible bid at next week's state tender for a site next to Change Alley Aerial Plaza tower - comprising the Clifford Pier/Customs Harbour Branch buildings as well as two adjoining land parcels. 'If UOL-OUE clinch the site, they would be in the best position for a comprehensive development of the location,' says a market watcher. The site being offered by URA has a maximum gross floor area of 107,639 sq ft - at least 40 per cent of which must be for hotel use. The rest can be used for retail, dining, entertainment and public attractions. The tender closes next Tuesday. Under the two-envelope system, bidders will be required to submit concept proposals and tender prices. Only proposals that get the URA's approval will enter the next stage of the competition - which will be based solely on price. |
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