Far East-Sekisui JV tops bids for Woodlands office site

[SINGAPORE] A joint venture between Far East Organization, its listed unit Far East Orchard and Sekisui House that topped a state tender for the first predominantly office site in Woodlands Regional Centre intends to build two 16-storey office towers featuring both large and small strata office units for sale as well as lease.

The project, located next to Causeway Point, will also have some retail space that the developers will probably retain for long-term investment. The top bid at yesterday's tender of nearly $634 million, or $906.29 per square foot of potential gross floor area, was just 2.1 per cent more than the next highest bid of $887.42 psf per plot ratio (psf ppr) from CapitaLand units Mahogany One and Mahogany Two.

However, the top bid was 17.6 per cent above the third highest bid of $770.49 psf ppr from a City Developments-Hong Leong Holdings tie-up and double the lowest bid of $440.28 psf ppr. The latter came from Sim Lian, which recently launched its Vision Exchange project in Jurong East where office units were recently sold at an average price of $2,150 psf.