Lend Lease is refocusing its attention on Singapore by placing a $514 million bid for a retail development site on the famed shopping strip, Orchard Road.
Yesterday, Lend Lease placed the highest bid for Somerset Central, one of the last remaining significant retail development opportunities on Orchard Road.
The 7,311.4 sqm site has 100 metres of frontage to Orchard Road, is located adjacent to the Somerset Mass Rapid Transport station. The site at was launched for public tender on May 16, 2006 on a 99-year lease.
Lend Lease’s chief executive of retail and communities Ross Taylor told Australian Property Journal that the group is refocusing its interests in Singapore.
“We are investing capital into the Singapore where we have the capabilities and the team to execute our plans.
“The development is a very attractive development site and will be complimentary to our retail and communities as well as our investment management businesses,” Taylor added.
Currently, Lend Lease has an interest in the Asia Pacific Investments Company II in Singapore, which owns the Parkway Parade shopping centre managed by Lend Lease.
Parkway Parade is one of Singapore’s first major and biggest suburban mall. It comprises six levels of retail outlets, one level of Medical Centre and a 17 level office tower atop the retail podium. The retail component comprises 52,144 sqm of space and the office tower comprises 17,708 sqm. Whilst the medical centre comprises 1,392 sqm of space.
Meanwhile, the Urban Redevelopment Authority of Singapore has proposed a commercial development totalling 39,410 sqm for the Orchard Road site, of which 60% will be used for retail, food and beverage and/or entertainment uses.
URA has placed a maximum building height of 16 storeys for the site.
Lend Lease has offered $S617.2 million (approximately $A514 million), compared to the underbidder offer of $S610.15 million (approximately $A509 million) for the site. The bid is subject to final approval and notification by the vendor, URA, which is expected to announce its decision in a week or two.
RANKING | NAME OF TENDERER | TENDERED SALE PRICE ($) | TENDERED SALE PRICE IN $PSM OF GFA ($) |
1 | LEND LEASE RETAIL INVESTMENTS 1 PTE. LTD. | 617,200,000.00 | 15,661.00 |
2 | ORCHARD MALL PTE. LTD. | 610,150,000.00 | 15,482.11 |
3 | FRASERS CENTREPOINT LIMITED | 560,000,000.00 | 14,209.59 |
4 | CAPITALAND RETAIL TRUSTEE PTE. LTD. (AS TRUSTEE OF SONIC TRUST) | 552,998,000.00 | 14,031.92 |
5 | DOWNTOWN INVESTMENTS PTE LTD | 495,680,000.00 | 12,577.52 |
By Nelson Yap
