SINGAPORE: The Urban Redevelopment Authority (URA) will launch a public tender for a commercial and residential site where the iconic nightclub Zouk used to be.
In a press release on Friday (Sep 29) the authority said it has accepted an application from a developer to put up the 1.35-hectare site at Jiak Kim Street for sale by public tender.
With a site area of 13,482.4 sq m, the land will allow for residential development with commercial development on the first storey.
According to URA, the developer committed to bid at a price of at least S$689,353,000 in the tender for the land parcel, which was first put on sale on the Reserve List in June this year.
The public tender for the site will be launched in about two to three weeks, said URA. It added that the tender period for the land parcel would be about six weeks.
The site could potentially yield 525 housing units and has a lease period of 99 years. Its maximum gross floor area is 51,234 sq m and maximum building height is 36 storeys (subject to a technical height control of 153m above mean sea level), according to the agency.
Ms Christine Li, director of research at Cushman & Wakefield Singapore, said the site is attractive not only because of its close proximity to F&B and retail options in the Robertson Quay area, but also for the almost 180-degree view it offers of the Singapore River.
“A lot of the units will have unblocked views and this location has potential because, in the past five years or so, we have not seen any site being launched near the precinct.”
“The residential market is bottoming out; sentiment now is a lot better than a year ago, so it means that more developers will be more confident to enter the market to get the site.”
Mr Nicholas Mak, executive director of ZACD Group, said he expects the land parcel to receive between seven and 12 bids for the tender.
"In the current market, many developers are still quite aggressive and eager to acquire prime sites and hence it can attract bids that are well above the valuation of the site. The minimum price right now is perhaps the indication of the valuation of this site. However when the tender closes, we can see bids, even ranging between S$730 million and S$800 million."
Mr Mak’s forecast on the valuation of the site translates to about S$1,320 to S$1,450 per square foot per plot ratio.
Meanwhile, Mr Desmond Sim, head of research at CBRE Singapore and Southeast Asia, said developers may be encouraged by the sales performance of developments in the vicinity.
“Sites offered on the Government Land Sales Programme have always been a more favoured route for developers to procure land as they are offered unencumbered and the process is more straightforward. That Jiak Kim is in a better location is an added incentive.”
Additional reporting by Brandon Tanoto