Lend Lease to hold 30% of joint venture that won tender of big Paya Lebar mixed-use site

Property developer Lend Lease's logo and residential development in Melbourne. The Australian company says it will own 30 per cent of the joint venture for a large mixed-use site in Paya Lebar which it just bagged with a bullish top bid of $1.67
Property developer Lend Lease's logo and residential development in Melbourne. The Australian company says it will own 30 per cent of the joint venture for a large mixed-use site in Paya Lebar which it just bagged with a bullish top bid of $1.67 billion in the Government Land Sales programme. -- PHOTO: BLOOMBERG

SINGAPORE - Australian property developer Lend Lease said on Wednesday that it will own 30 per cent of the joint venture for a large mixed-use site in Paya Lebar which it just bagged with a bullish top bid of $1.67 billion in the Government Land Sales programme.

Seventy per cent of the joint venture will be held by one of Lend Lease's major global investment partner, which the company did not identify.

Said Lend Lease Group chief executive officer and managing director Steve McCann: "This is a great opportunity for continued success in the region, leveraging Lend Lease's global capabilities to develop large scale urban regeneration projects in major cities around the world."

"It further cements Lend Lease's position in the Singapore market and leverages its leading integrated property capabilities encompassing development, construction, investment management and asset and property management platforms."

Among its Singapore porjects, Lend Lease developed Jem shopping mall in Jurong East and 313 Somerset.

The 99-year leasehold site in Paya Lebar, which comprises two plots separated by Sims Avenue, has a potential gross floor area of 1.78 million sq ft. It has direct connections to the Paya Lebar Mass Rapid Transit (MRT) Interchange that serves both the Circle and East-West lines.

Trumping the offers of five other bidders, Lend Lease's bid translated to a price of $943 per sq ft (psf) per plot ratio (ppr) for the 3.9 hectare site. Market watchers were expecting a top offer between $1.24 billion to $1.51 billion - or $700 psf ppr to $850 psf ppr.