Property heavyweights GuocoLand and City Developments Ltd submitted the highest bids for two separate northern Singapore projects as the Urban Redevelopment Authority closed the tender for the sites on Tuesday.
For the 1.47 hectare (3.63 acre) site at Lentor Central, a consortium of SGX-listed GuocoLand, Hong Leong Holdings and China’s state-backed CSC Land Group entered a bid of S$435.16 million ($332.6 million), the URA said. GuocoLand is controlled by Quek Leng Chan, the co-founder and executive chairman of Hong Leong Group Malaysia, while Quek’s cousin Kwek Leng Beng controls Singapore-based Hong Leong Holdings.
Their bid easily overcame the S$410.8 million offer by the only other contestant, Frasers Property, setting the stage for GuocoLand to bag its fourth site in the Lentor Hills estate area.
“If awarded, we plan to build a private residential development with about 475 units in two high-rise blocks, where residents will benefit from the convenience of nearby amenities and Lentor MRT station, adding to the site’s overall appeal to future buyers,” said a spokesman for Hong Leong Holdings.
The Lentor Central site lies between the future Hillock and Linear parks and is the sixth plot the URA has launched in the area around the Lentor MRT station since July 2021. The 99-year leasehold would entitle GuocoLand to build up to 443,140 square feet of gross floor area, including at least 5,382 square feet for childcare facilities.
The top bid reflects a rate of S$982 per square foot of built area, in line with April’s tender at Lentor Gardens, said Wong Siew Ying, head of research and content at PropNex Realty.
“Two of the projects (at Lentor Hills) have been launched for sale with Lentor Modern transacting about 93 percent of its available units and Lentor Hills Residences achieving a take-up rate of nearly 64 percent, based on URA Realis caveat data up till 2 September 2023,” Wong said.
She noted that the number of bids in the Lentor area has dwindled from nine to just one or two in recent tenders, as developers look to minimise development risks given the ample supply pipeline in the area.
In Tuesday’s other tender closing, City Developments Ltd submitted the highest bid of S$294.89 million for a 99-year leasehold site at Champions Way in the Woodlands area, indicating a rate of S$904 per square foot of built area. The figure topped five other bids, including the next-highest offer of S$272.2 million by a joint venture of Hong Leong Holdings and Mitsui Fudosan.
Should CDL be awarded the site, it will explore a residential project comprising four blocks of 11 storeys with 350 residential units, an early childhood development centre and a basement carpark, said the builder controlled by Kwek Leng Beng.
CEO Sherman Kwek said the Woodlands site would replenish CDL’s landbank and ensure a stable launch pipeline.
“It has been over a decade since a private residential project was launched in Woodlands, so this is a rare opportunity to create a vibrant and sustainable icon alongside the government’s rejuvenation plans,” he said.