What emboldened GuocoLand in Beach Rd bid

EARLIER this month, GuocoLand and its parent Guoco Group were awarded the Beach Road commercial site by the Urban Redevelopment Authority.

Their winning bid of S$1.622 billion works out to S$1,706.30 per square foot per plot ratio (psf ppr) - setting a new benchmark price for a Government Land Sale site in Singapore. This has been deemed bullish by most analysts, who note that it surpassed the S$1,689 psf ppr that IOI Properties paid for a site in Central Boulevard less than a year ago; that plot, which also has 99-year leasehold tenure, is located in the more choice Marina Bay area compared with Beach Road.

The reason analysts have compared the winning bids for these two sites is that some of their tender conditions are similar. These include having a minimum office component of around 70 per cent of gross floor area (GFA) and a ceiling on the project's retail component; the balance may be allocated for additional office, commercial school, hotel, serviced apartments or residential uses.