A joint venture (JV) between CapitaLand and City Developments Ltd (CDL) has clinched a prime mixed-use site in the heart of Sengkang Central for $777.78 million ($923.6 psf ppr), announced the Urban Redevelopment Authority (URA) on Thursday (16 August).
The JV said the 3.7ha (401,008 sq ft) site is among the biggest residential and commercial plots awarded since 2015. They plan turn it into an integrated community hub with 700 apartments, along with amenities like a hawker centre, childcare centre, retail shops and a community club spanning three storeys.
Expected to be completed by 1H 2022, the integrated project has direct access to Buangkok MRT Station and the upcoming bus interchange there. Aside from being a 20-minute drive from the Central Business District (CBD), it is only nine stops or less than 25 minutes from the Dhoby Ghaut MRT Station via the North-East Line.
While CDL and CapitaLand had earlier teamed up for the Hillview site tender, this is their first successful bid, said Desmond Sim, CBRE’s research head for Singapore and Southeast Asia.
“This is also the first GLS site where bids were submitted before the introduction of the 6 July cooling measures. Nevertheless, the developers can leverage on the potential of this site to develop the Sengkang community and transport hub to serve the Sengkang and Buangkok housing estates and inject much vibrancy into the area.”
In addition, the JV revealed that new non-remittable and revised ABSD rate for private housing developers announced in the new property curbs will not apply to this 99-year leasehold site with a maximum gross floor area of 842,125 sq ft
“CapitaLand looks forward to partnering CDL to shape and transform the site into a landmark development that will be an identity marker and new focal point for the Buangkok neighbourhood,” said CapitaLand Group President & Group CEO Lim Ming Yan.
“Over the years, CDL has built up a strong track record for compelling design concepts which has enabled us to secure prime sites like The South Beach and Quayside Collection in Sentosa Cove under the two-envelope system,” added CDL Group CEO Sherman Kwek.
Overall, six parties submitted seven concept proposals for the Sengkang Central site tender, but only the price offers of four parties were considered. Aside from the CDL-CapitaLand JV, these include Wing Tai Holdings and Keppel Land ($608.9 million), Singapore Press Holdings and Kajima Development ($636.39 million) and Perennial Real Estate Holdings and Qingjian Realty ($682 million).