BT : Chip Eng Seng tops bid for DBSS site in Bedok

Business Times - 03 Nov 2010


Chip Eng Seng tops bid for DBSS site in Bedok

By EMILYN YAP

CHIP Eng Seng Corporation yesterday put in the highest bid for a public housing site at Bedok Reservoir Crescent.

The tender for the site - launched by the Housing & Development Board under the design, build and sell scheme (DBSS) - closed yesterday. Chip Eng Seng beat five other participants with a bid of $112.69 million or $224 per square foot per plot ratio (psf ppr).

The second highest bidder was Kwan Hwee Investment, linked to Low Keng Huat (Singapore). Its offer was $109.89 million or $219 psf ppr - just 2.5 per cent below Chip Eng Seng's.

Other developers which took part in the tender included Hoi Hup Realty, in partnership with Sunway Developments and SC Wong Holdings; Sim Lian Land; and a unit of Ho Lee Group.

A joint venture between United Engineers Developments and Maxdin Pte Ltd submitted the lowest bid of $88.2 million or $176 psf ppr.

This DBSS project will be Chip Eng Seng's first. The plot measures 179,400 sq ft, has a maximum gross floor area of 502,400 sq ft, and carries a lease term of 103 years (which takes into account a two-year construction period).

HDB estimates that 430 units can be built on the site. The estate will be between two green lungs - Bedok Reservoir Park and Bedok Town Park. In the vicinity, the new Bedok Town Park MRT station on Downtown Line 3 will be completed in 2017.

SLP International Property Consultants executive director Nicholas Mak estimates that Chip Eng Seng's bid could translate to a breakeven cost of about $430-470 psf.

A five-room flat in the project could be launched at about $590,000-620,000, he added.

Chip Eng Seng closed unchanged on the stock market yesterday at 40 cents.

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