Top bid of $1.67b for mixed-use Paya Lebar site

SINGAPORE - A highly-anticipated tender for a large mixed-use site in Paya Lebar surprised analysts with a particularly bullish top bid of $1.672 billion on Tuesday.

Roma Central, Milano Central and Verona Central - units of Australian property developer Lend Lease - lodged the bumper bid, which translates to a price of $943 per sq ft (psf) per plot ratio (ppr). That trumped market expectations of a top offer between $1.24 billion to $1.51 billion - or $700 psf ppr to $850 psf ppr.

The were five other developers.

Lend Lease's bid for the 3.9 ha site was 8.8 per cent higher than the next highest offer of $1.54 billion - or $867 psf ppr - from a consortium comprising Singapore Press Holdings, Keppel Land and Hong Kong tycoon Li Ka Shing's CK Hutchison Holdings.

The parcel, which comprises two plots separated by Sims Avenue, has a potential gross floor area of 1.78 million sq ft. The new development can have up to 969,000 sq ft of GFA for offices, a maximum of 419,800 sq ft for retail shops and an additional 10,800 sq ft for an outdoor "public plaza". The developer also has the option of building 440 residential apartments or serviced residences.

The new project will be linked to the Paya Lebar interchange and MRT station.

In July 2011, the site had gone on offer although as a smaller plot of 2.07 ha. UOL Group was the only one who bid, offering a number of $529.5 million which was subsequently rejected for being "too low." This time round, it did not throw its hat into the ring.