Ho Bee Investment has put a top bid of $410.99 million for a 99-year leasehold commercial site at North Buona Vista Drive, and said it is planning to invest nearly $1 billion for the development of the site.
The tender for the site has attracted two bids, one from Ho Bee and the other one from Mapletree Investments, which offered $384 million for the site. Ho Bee’s $410.99-million top bid translates to around $342 psf ppr for the site.
The 1.8-hectare site has a maximum allowable gross floor area of 1.2 million sq ft, and the company said it is planning to set aside around 1-2 percent of space for retail shops in the commercial development. It is exploring the possibility of establishing service apartments within the site.
The development has a good size for generating “a landmark building in a very attractive location”, it said. The property group plans to lease out the development for recurring income upon completion.
Given its large size, several market watchers had expected demand for the development to be lukewarm, as it would involve a huge capital commitment. However, the development also features other attractions, including its close proximity to Buona Vista MRT Station, as well as its location in the emerging cluster of infocommunication, biomedical and media industries.
“This would facilitate the expansion of R&D functions at one-north and serve as an alternative source of office supply post- 2013 in the Buona Vista sub-regional centre,” said Li Hiaw Ho, executive director of CB Richard Ellis Research.