Holland Road GLS site's quantum could hit $1b

It already attracted 15 bids, exceeding analyst expectations.

The mixed use development site at Holland Road is hotly contested with 15 submissions by noon today despite Cushman & Wakefield’s forecasts of the sheer quantum of the site possibly running into $1b.

The Urban and Redevelopment Authority (URA) announced that it closed the tender for the site. “A decision on the award of the tender will be made after the tenders have been evaluated. This will be published at a later date,” it said.

URA adopted a concept and price revenue tender for the Holland Road site to shortlist "attractive" development concepts oriented to Holland Village's character. It has a site area of 22,967 sqm and a lease period of 99 years.

C&W research director Christine Li noted that the number of bids is at the top end of their initial estimate of 12-15 submissions despite the sheer quantum of the site possibly running into $1b. “This is because apart from Paya Lebar Quarter and Bidadari GLS site won by SPH and Kajima, there seems to be a lack of sizeable integrated mixed-use development right at the transport node in the pipeline amid an anticipated strong recovery in the residential sector, particularly in the luxury segment of the market,” she said.

Li also revealed that multiple parties made more than one submission in a bid to increase their winning chances. “This is an excellent opportunity for developers who have not been able to secure any land parcel in the last 12-18 months due to the runaway residential land prices, to finally clinch a site without possibly paying top dollars. URA will evaluate the concept before the price envelope is opened,” she added.

Another reason for the high number of submissions is possibly due to the numerous concepts which could be implemented on this site, Li noted. “Apart from commercial, medical suites, serviced apartments and residential components are all possible combinations for this site. Whilst most developers will want to ride on the residential boom and use the sales proceeds at the pre-launch to fund the subsequent development, developers opting for serviced apartments have an edge over the rest in the price tender due to the higher capital values of serviced apartments,” she concluded.