Second sale site in Jurong Lake District up for tender

A second site for sale in Jurong Lake District, one of Singapore's latest commercial hubs, has been launched for tender.

"A second white site next to the Jurong East MRT station and bus interchange has been launched. Tender for this 1.8 ha parcel will close in late May 2011 and is likely to generate a fair amount of interest, with possibly six to eight bidders, due to its location attributes," said Li Hiaw Ho, Executive Director of CB Richard Ellis (CBRE) Research.

Located at Boon Lay Way, the site was made available for sale on 25 October 2010, under the reserve list system. It is the second land parcel to be released for sale at Jurong Gateway, following the successful sale of the first white site at Jurong Gateway Road to Lend Lease in June 2010.

Mr. Li said that "MND has recently announced that it has pre-committed to a 30-year lease, taking up about 315,400 sq ft at Lend Lease's upcoming office block at Boon Lay Way."

"This aids in setting the momentum, boosting business confidence in the viability of the area and paving the way in realising URA's vision of developing the Jurong Lakeside area into a decentralised business hub. Prime grade offices in the vicinity are likely to command monthly rentals of about S$4.00 to S$5.00 psf, currently."

The Urban Redevelopment Authority (URA) noted that it "will continue the development momentum of transforming the precinct into an attractive destination for business and leisure, serving more than 3,000 multinational and global businesses clustered in the nearby International Business Park and Jurong / Tuas industrial estates and a catchment of one million residents from the neighbouring towns."

The Jurong Lake District comprises two unique precincts — Jurong Gateway and Jurong Lakeside — and has a total site area of 360 ha, about the size of Marina Bay. It is expected to become a major regional centre in the west of Singapore, providing an attractive location for commercial developments outside the city centre and a family-friendly leisure destination by the lake.

The white site for sale has a total area of 18,159.1 sq m and has a maximum permissible gross floor area (GFA) of 88,980 sq m with a 99-year leasehold.

"A mandatory 40.0 percent of the maximum permissible GFA is designated for pure office use. This could possibly yield about 300,000 sq ft net lettable area (NLA) of office space post-2014. The other major office development in the vicinity comprises CPF Jurong, JTC Summit and Lend Lease's commercial development adjacent to this parcel," noted Mr. Li.

"If the winner of this site plans to build some residential flats on this parcel, it is likely to be popular because of the site's proximity to the MRT station, which provides good connectivity to the city and other parts of the island. Two MRT stations away, at Lakeside MRT station, The Lakefront Residences has enjoyed brisk take-up since its launch in November 2010."

"We expect that a residential project on the subject site will be a draw to upgraders from surrounding HDB estates like Jurong East, Jurong West, Bukit Batok and Clementi. In addition, there is a potential tenant pool from the expatriates who are working in the MNCs and tertiary institutions located in the western part of Singapore."The URA added that tender for the site will close on 25 May 2011.

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