ST : Bukit Panjang EC site: CDL unit places top bid

Dec 03,2010
Bukit Panjang EC site: CDL unit places top bid

By Cheryl Lim
CITY Developments (CDL) unit Grand Isle Holdings has emerged as the top bidder for an executive condominium (EC) site in Segar Road.

Yesterday's tender results saw CDL's top bid of almost $182 million, or $271 per square foot per plot ratio (psf ppr), coming in 15.5 per cent ahead of the second-highest offer of $157.5 million, or $234 psf ppr, submitted by EL Development.

Three other bids were submitted - Opal Star and Lum Chang Building Contractors sent in a joint offer of $128.3 million, Pinnacle Realty bid $120 million, and Sim Lian Land came in with the lowest tender at $113 million.

A CDL spokesman said the developer has plans to build a 15- to 17-storey EC on the 1,936 sq ft site and, if awarded, it would be CDL's fourth EC project.

Previous ECs developed by CDL were The Esparis in Pasir Ris, The Florida in Hougang, and Nuovo in Ang Mo Kio.

Located in Bukit Panjang, the 99-year leasehold Segar Road site has a plot ratio of 3 and a maximum gross floor area of 5,806.6 sq ft. It can potentially yield an estimated 570 units.

Mr Joseph Tan, CBRE's residential executive director, said CDL's bid translates to a breakeven cost of $570 psf to $590 psf.

He added that there will be a market for the new EC project if it is priced

20 per cent to 25 per cent lower than nearby private condo Tree House, which sold at an average price of $830 psf in the second quarter of this year.

ECs are a hybrid of public and private housing with ownership and resale restrictions applying in the first 10 years, after which they are fully privatised.

Boasting private condo facilities, they are an attractive housing option for buyers who meet the eligibility criteria, including a monthly household income ceiling of $10,000.

Under the current Residential Property Act, foreign developers are subject to the stipulated project completion period of five years.

This rule, however, does not apply to local developers.