Posted: 19 December 2012 2325 hrs

SINGAPORE

The Urban Redevelopment Authority (URA) has released detailed sales conditions for two commercial sites at Venture Avenue and Cecil Street/Telok Ayer Street.

The land parcel at Venture Avenue has been launched for sale by public tender under the Confirmed List while the site at Cecil Street/Telok Ayer Street has been made available for application for sale under the Reserve List of the 2nd half 2012 Government Land Sales (GLS) Programme.

The Venture Avenue parcel is located near the Jurong East MRT station and bus interchange. With a maximum building height of up to 25 storeys, the site has a potential Gross Floor Area (GFA) of about 65,000 square metres and is to be developed predominantly for office use.

Colliers International expects the plot to draw some level of interest from developers in view of the government’s commitment to develop the district into a vibrant commercial hub.

Chia Siew Chuin, director of research and advisory at Colliers International, said the availability of the site will also ensure that more decentralised office space supply is injected into the market to cater to business set-ups that do not require a central business district or city-fringe location.

Given the uncertain economic outlook, Petra Blazkova, director of CBRE Research for Singapore and South East Asia, expects interest to be moderate.

This is despite the site being located in the fast developing area of Jurong East.

CBRE Research expects the site to attract bids of between S$700 and S$800 per square foot per plot ratio.

The tender for the Venture Avenue site closes at noon on March 12 next year, with the successful tenderer selected based on the tendered land price only.

The 0.8-ha site fronting Cecil Street and Telok Ayer Street has a potential GFA of 77,000 square metres. The land parcel is expected to be a high-quality office development of up to 50 storeys.

The site is presently occupied by the Telok Ayer Performing Arts Centre, which will be relocated sometime next year.

Ms Blazkova said: “Despite the strong sale of strata-titled office units in recent memory, occupier demand for commercial space remains patchy with the economy slowing down further in 2013. Therefore, it is apt for URA to put commercial sites on the Reserve List.

“In this way, only if there is a genuine need and a reasonable bid has been submitted, then URA will release the site for sale.”

Ms Chia said: “Given the ample supply of office space expected to be completed over the next few years amid the prevailing weaker market and demand conditions, it is unlikely that the site will be triggered from the Reserve List. Within the CBD, an estimated 7.6 million sq ft (GFA) of office space is expected to be completed from 2013 to 2017.”

M+S Pte Ltd, a consortium consisting of Khazanah Nasional and Temasek Holdings, has committed to develop a total of some 2.9 million square feet GFA of office space in the central business district.

This would be spread out between Marina One, which is situated in Marina Way/Straits View, and Duo 2, which is in Ophir Road/Rochor Road.

– CNA/jc