Hotly contested Potong Pasir mixed-use site drew 15 bids

SINGAPORE - A mixed-use site at Potong Pasir drew a whopping 15 bids when its tender closed on Tuesday - far more than expected.

It was also a close fight at the top, with a difference of just 3.2 per cent between the top bid and the third-highest.

Still, the highest offer for the 1.6ha parcel at Meyappa Chettiar Road was in the middle of the range analysts predicted, signalling that developers still bid fairly cautiously.

MCC Land put in the top offer at $471.6 million, which works out to $775 per sq ft (psf) per plot ratio (ppr).

Analysts had earlier tipped the top bid to be between $650 and $900 psf ppr.

They said on Tuesday that the site may have appealed to developers because of its proximity to the Potong Pasir MRT station. It can be developed into a commercial and residential project.

"The opportunity to put the commercial component of this development for sale on a strata-titled basis could have propped up the bid," said CBRE research head Desmond Sim.

SLP International research head Nicholas Mak noted: "This site is also likely to be the only mixed residential and commercial site adjacent to the Potong Pasir MRT station available for sale."

The number of bids, at 15, was the most since the tender for a private condominium site in Geylang East that closed in January this year, which fetched 16 bids.

MCC Land narrowly edged out Best Desire Investments, whose $757 psf ppr bid put it in second place.

A joint venture between Bo An Investments and Santarli Venture came in third, with an offer of $751 psf ppr.

The lowest offer was from Tennessee Investments which offered $244 million, or $401 psf ppr.