This article is from the Australian Property Journal archive
Lend Lease has paid $514 million, outbidding all contenders, to buy and develop a $920 million retail centre at Somerset Central in Singapore.
Last week, Lend Lease received formal notification from the Urban Redevelopment Authority of Singapore confirming that its tender for the Somerset Central retail development site has been successful. Lend Lease’s offer of $S617.2 million was $7 million higher than the nearest bid of $S610.1 million submitted by Orchard Mall Pte. Ltd.
The site has been zoned for retail use and is one of the last major retail opportunities on Orchard Road and is located adjacent to the Somerset Mass Rapid Transport station, with a 100-metre street frontage onto Orchard Road and a 70-metre exposure to Somerset Road.
Lend Lease’s chief executive of retail David Hutton said the Somerset Central is forecast to deliver over 28,000 sqm of quality retail space.
“This reflects the company’s strategy to actively pursue major retail developments and provides Lend Lease with a prime presence on Singapore’s key retail hub – Orchard Road.
“With the economic outlook for GDP growth of around 7% next year, long term interest rates below 4%, low inflation, good population growth and positive prospects for increased tourism, retail asset performance in Singapore is forecast to remain strong,” he added.
Work on the site is expected to start in early 2007 with a completion set for the 2010 financial year. Lend Lease will manage all phases of the project, including, development, leasing, project management and construction, and asset and property management of the completed centre.
Meanwhile, Lend Lease Investment Management intends to offer opportunities for investors to participate in the ownership of the asset.
By Adam Parsons
|
RANKING
|
NAME OF TENDERER
|
TENDERED SALE PRICE
($)
|
TENDERED SALE PRICE IN $PSM OF GFA ($)
|
|
1
|
LEND LEASE RETAIL INVESTMENTS 1 PTE. LTD.
|
617,200,000.00
|
15,661.00
|
|
2
|
ORCHARD MALL PTE. LTD.
|
610,150,000.00
|
15,482.11
|
|
3
|
FRASERS CENTREPOINT LIMITED
|
560,000,000.00
|
14,209.59
|
|
4
|
CAPITALAND RETAIL TRUSTEE PTE. LTD. (AS TRUSTEE OF SONIC TRUST)
|
552,998,000.00
|
14,031.92
|
|
5
|
DOWNTOWN INVESTMENTS PTE LTD
|
495,680,000.00
|
12,577.52
|
